[Title 27 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2008 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          
          
          27


          Parts 1 to 39

                         Revised as of April 1, 2008


          Alcohol, Tobacco Products and Firearms
          
          


________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of April 1, 2008
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                    A Special Edition of the Federal Register

[[Page ii]]

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[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 27:
          Chapter I--Alcohol and Tobacco Tax and Trade Bureau, 
          Department of the Treasury                                 3
  Finding Aids:
      Material Approved for Incorporation by Reference........     907
      Table of CFR Titles and Chapters........................     909
      Alphabetical List of Agencies Appearing in the CFR......     927
      List of CFR Sections Affected...........................     937

[[Page iv]]





                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 27 CFR 1.1 refers to 
                       title 27, part 1, section 
                       1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

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    To determine whether a Code volume has been amended since its 
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EFFECTIVE AND EXPIRATION DATES

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OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
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OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
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INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
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This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    Regulations containing properly approved incorporations by reference 
in this volume are listed in the Finding Aids at the end of their CFR 
volume.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed in 
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This index is based on a consolidation of the ``Contents'' entries in 
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the revision dates of the 50 CFR titles.

[[Page vii]]


REPUBLICATION OF MATERIAL

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    Raymond A. Mosley,
    Director,
    Office of the Federal Register.
    April 1, 2008.







[[Page ix]]



                               THIS TITLE

    Title 27--Alcohol, Tobacco Products and Firearms is composed of 
three volumes, parts 1-39, parts 40-399, and part 400 to end. The 
contents of these volumes represent all current regulations issued by 
the Alcohol and Tobacco Tax and Trade Bureau, Department of the 
Treasury, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
Department of Justice, as of April 1, 2008.

    For this volume, Kenneth R. Payne and Elmer Barksdale were Chief 
Editors. The Code of Federal Regulations publication program is under 
the direction of Michael L. White, assisted by Ann Worley.

[[Page 1]]



            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS




                   (This book contains parts 1 to 39)

  --------------------------------------------------------------------
                                                                    Part

chapter i--Alcohol and Tobacco Tax and Trade Bureau, 
  Department of the Treasury................................           1


Abbreviations Used in This Chapter:
    ATF = Alcohol, Tobacco and Firearms. T.D. = Treasury Decision. TTB = 
  Alcohol and Tobacco Tax and Trade Bureau.

[[Page 3]]



 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY




  --------------------------------------------------------------------


  Editorial Notes: 1. The regulations appearing in this title were 
originally issued by the Federal Alcohol Administration, which was 
abolished by Reorganization Plan No. III, Apr. 2, 1940, 5 FR 2107, 3 
CFR, 1940 Supp. Treasury Order 30, June 12, 1940, 5 FR 2212, issued 
under sections 2 and 8 of Reorganization Plan No. III (54 Stat. 1232) 
provided that these regulations continue in effect as regulations of the 
Bureau of Alcohol, Tobacco and Firearms.

  2. Nomenclature changes to chapter I appear by T.D. TTB-44, 71 FR 
16920, Apr. 4, 2006.

                          SUBCHAPTER A--ALCOHOL
Part                                                                Page
1               Basic permit requirements under the Federal 
                    Alcohol Administration Act, 
                    nonindustrial use of distilled spirits 
                    and wine, bulk sales and bottling of 
                    distilled spirits.......................           5
4               Labeling and advertising of wine............          13
5               Labeling and advertising of distilled 
                    spirits.................................          47
6               ``Tied-House''..............................          79
7               Labeling and advertising of malt beverages..          90
8               Exclusive outlets...........................         107
9               American viticultural areas.................         111
10              Commercial bribery..........................         293
11              Consignment sales...........................         296
12              Foreign nongeneric names of geographic 
                    significance used in the designation of 
                    wines...................................         300
13              Labeling proceedings........................         303
16              Alcoholic beverage health warning statement.         312
17              Drawback on taxpaid distilled spirits used 
                    in manufacturing nonbeverage products...         315
18              Production of volatile fruit-flavor 
                    concentrate.............................         340
19              Distilled spirits plants....................         350
20              Distribution and use of denatured alcohol 
                    and rum.................................         491
21              Formulas for denatured alcohol and rum......         530
22              Distribution and use of tax-free alcohol....         560
24              Wine........................................         584
25              Beer........................................         673

[[Page 4]]

26              Liquors and articles from Puerto Rico and 
                    the Virgin Islands......................         726
27              Importation of distilled spirits, wines, and 
                    beer....................................         780
28              Exportation of alcohol......................         800
29              Stills and miscellaneous regulations........         848
30              Gauging manual..............................         852
31              Alcohol Beverage Dealers....................         864

Supplementary Publications: Additional supplementary publications are 
  issued covering individual parts of the Alcohol, Tobacco and Firearms 
  Regulations, the Tobacco Tax Guide, and Regulations Under Tax 
  Conventions.

[[Page 5]]



                          SUBCHAPTER A_LIQUORS





   PART 1_BASIC PERMIT REQUIREMENTS UNDER THE FEDERAL ALCOHOL ADMINISTRATION ACT, NONINDUSTRIAL USE OF DISTILLED SPIRITS AND WINE, BULK SALES AND BOTTLING OF 
DISTILLED SPIRITS--Table of Contents




                             Subpart A_Scope

Sec.
1.1 General.
1.2 Territorial extent.
1.3 Forms prescribed.
1.4 Delegations of the Administrator.

                          Subpart B_Definitions

1.10 Meaning of terms.

                         Subpart C_Basic Permits

                              When Required

1.20 Importers.
1.21 Domestic producers, rectifiers, blenders, and warehousemen.
1.22 Wholesalers.
1.23 State agencies.

                    Persons Entitled to Basic Permits

1.24 Qualifications of applicants.

                        Applications for Permits

1.25 General.
1.26 Incomplete or incorrectly executed applications.
1.27 Change in ownership, management, or control of the applicant.
1.29 Individual plant or premises.
1.30 Power of attorney; Form 5000.8 (1534).
1.31 Denial of permit applications.

                              Authorization

1.35 Authority to issue, amend, deny, suspend, revoke, or annul basic 
          permits.

                 Amendment and Duration of Basic Permits

1.40 Change of name.
1.41 Change of address.
1.42 Change in ownership, management, or control of business.
1.43 Duration of permits.
1.44 Automatic termination of permits.

          Revocation, Suspension, or Annulment of Basic Permits

1.50 Revocation or suspension.
1.51 Annulment.
1.52 Disposition of stocks of alcoholic beverages upon revocation, 
          annulment, or automatic termination of basic permit.

                              Miscellaneous

1.55 Recalling permits for correction.
1.56 Oaths and affirmations.
1.57 Procedure.
1.58 Filing of permits.
1.59 Public information as to applications acted upon.

        Subpart D_Nonindustrial Use of Distilled Spirits and Wine

                       Uses Regarded as Industrial

1.60 Use of distilled spirits.
1.61 Use of wine.
1.62 Use of distilled spirits or wine for experimental purposes and in 
          manufacture of nonbeverage products.

                      Uses Classed as Nonindustrial

1.70 General.
1.71 Distilled spirits in containers of a capacity of one gallon or 
          less.

         Subpart E_Bulk Sales and Bottling of Distilled Spirits

                         Bulk Sales and Bottling

1.80 Sales of distilled spirits in bulk.
1.81 Importation of distilled spirits in bulk.
1.82 Acquiring or receiving distilled spirits in bulk for 
          redistillation, processing, rectification, warehousing, or 
          warehousing and bottling.
1.83 Acquiring or receiving distilled spirits in bulk for addition to 
          wine.
1.84 Acquisition of distilled spirits in bulk by Government agencies.

                           Warehouse Receipts

1.90 Distilled spirits in bulk.
1.91 Bottled distilled spirits.

              Sales of Distilled Spirits for Industrial Use

1.95 General.

    Authority: 27 U.S.C. 203, 204, 206, 211 unless otherwise noted.

    Source: T.D. ATF-373, 61 FR 26098, May 24, 1996, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 1 appear by T.D. ATF-
463, 66 FR 42733, Aug. 15, 2001.

[[Page 6]]



                             Subpart A_Scope



Sec.  1.1  General.

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



Sec.  1.2  Territorial extent.

    The provisions of this part are applicable to the several States of 
the United States, the District of Columbia and Puerto Rico.



Sec.  1.3  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part. The 
form will be filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 
FR 49985, Sept. 15, 1999; T.D. TTB-44, 71 FR 16920, Apr. 4, 2006]



Sec.  1.4  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.1, Delegation of the Administrator's 
Authorities in 27 CFR Part 1, Basic Permit Requirements Under the 
Federal Alcohol Administration Act, Nonindustrial Use of Distilled 
Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits. You may 
obtain a copy of this order by accessing the TTB Web site (http://
www.ttb.gov) or by mailing a request to the Alcohol and Tobacco Tax and 
Trade Bureau, National Revenue Center, 550 Main Street, Room 1516, 
Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16920, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  1.10  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
shall have the meaning ascribed in this part.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Alcohol. Ethyl alcohol distilled at or above 190[deg] proof.
    Applicant. Any person who has filed an application for a basic 
permit under the Federal Alcohol Administration Act with the appropriate 
TTB officer.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.1, Delegation of the Administrator's Authorities in 27 CFR Part 1, 
Basic Permit Requirements Under the Federal Alcohol Administration Act, 
Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling 
of Distilled Spirits.

[[Page 7]]

    Basic permit. A document issued under the Act authorizing a person 
to engage in activities at a particular location.
    Brandy. Brandy or wine spirits for addition to wines as permitted by 
internal revenue law.
    Distilled spirits. Section 117(a) of the Federal Alcohol 
Administration Act (27 U.S.C. 211(a)) defines ``distilled spirits'' as 
ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum, 
brandy, gin, and other distilled spirits, including all dilutions and 
mixtures thereof for nonindustrial use.
    In bulk. Distilled spirits in containers having a capacity in excess 
of one wine gallon.
    Other term. Any other term defined in the Federal Alcohol 
Administration Act and used in this part shall have the same meaning 
assigned to it by the Act.
    Permittee. Any person holding a basic permit issued under the 
Federal Alcohol Administration Act.
    Person. Any individual, partnership, joint-stock company, business 
trust, association, corporation, or other form of business enterprise, 
including a receiver, trustee, or liquidating agent.
    Resale at wholesale. A sale to any trade buyer.
    Trade buyer. Any person who is a wholesaler or retailer of distilled 
spirits, wine, or malt beverages.
    Wine. Section 117(a) of the Federal Alcohol Administration Act (27 
U.S.C. 211(a)) defines ``wine'' as:
    (a) Wine as defined in section 610 and section 617 of the Revenue 
Act of 1918 (26 U.S.C. 5381-5392), as now in force or hereafter amended, 
and
    (b) Other alcoholic beverages not so defined, but made in the manner 
of wine, including sparkling and carbonated wine, wine made from 
condensed grape must, wine made from other agricultural products than 
the juice of sound, ripe grapes, imitation wine, compounds sold as wine, 
vermouth, cider, perry, and sake; in each instance, only if containing 
not less than 7 percent and not more than 24 percent of alcohol by 
volume, and if for nonindustrial use.
    Wine gallon. The liquid measure equivalent to the volume of 231 
cubic inches.

[T.D. ATF-373, 61 FR 26098, May 24, 1996. Redesignated and amended by 
T.D. ATF-416, 64 FR 49985, Sept. 15, 1999; T.D. TTB-44, 71 FR 16920, 
Apr. 4, 2006]



                         Subpart C_Basic Permits

    Editorial Note: Nomenclature changes to subpart C appear by T.D. 
ATF-416, 64 FR 49985, Sept. 15, 1999.

                              When Required



Sec.  1.20  Importers.

    No person, except pursuant to a basic permit issued under the Act, 
shall:
    (a) Engage in the business of importing into the United States 
distilled spirits, wine, or malt beverages; or
    (b) While so engaged, sell, offer or deliver for sale, contract to 
sell, or ship, in interstate or foreign commerce, directly or indirectly 
or through an affiliate, distilled spirits, wine, or malt beverages so 
imported.



Sec.  1.21  Domestic producers, rectifiers, blenders, and warehousemen.

    No person, except pursuant to a basic permit issued under the Act, 
shall:
    (a) Engage in the business of distilling distilled spirits, 
producing wine, rectifying or blending distilled spirits or wine, or 
bottling, or warehousing and bottling, distilled spirits; or
    (b) While so engaged, sell, offer or deliver for sale, contract to 
sell, or ship, in interstate or foreign commerce, directly or indirectly 
or through an affiliate, distilled spirits or wine so distilled, 
produced, rectified, blended, or bottled, or warehoused and bottled.



Sec.  1.22  Wholesalers.

    No person, except pursuant to a basic permit issued under the Act, 
shall:
    (a) Engage in the business of purchasing for resale at wholesale, 
distilled spirits, wine, or malt beverages; or,
    (b) While so engaged, receive, sell, offer or deliver for sale, 
contract to sell, or ship in interstate or foreign commerce, directly or 
indirectly or through an affiliate, distilled spirits, wine, or malt 
beverages so purchased.

[[Page 8]]



Sec.  1.23  State agencies.

    This subpart shall not apply to any agency of a State or political 
subdivision thereof or to any officer or employee of any such agency, 
and no such agency or officer or employee thereof shall be required to 
obtain a basic permit under this subpart.

                    Persons Entitled to Basic Permits



Sec.  1.24  Qualifications of applicants.

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

                        Applications for Permits



Sec.  1.25  General.

    Applications for basic permits to engage in any of the operations 
set forth in Sec. Sec.  1.20 to 1.22 must be made on TTB Form 5100.24, 
or 5100.18, verified as required by Sec.  1.56, and will be accompanied 
by such affidavits, documents, and other supporting data, as the 
appropriate TTB officer may require. The application will include all 
data, written statements, affidavits, documents, or other evidence 
submitted in support of the application, or upon a hearing.

[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999; T.D. ATF-416a, 64 FR 54776, 
Oct. 8, 1999]



Sec.  1.26  Incomplete or incorrectly executed applications.

    Incomplete or incorrectly executed applications will not be acted 
upon, but the applicant shall be entitled to file a new application 
without prejudice, or to complete the application already filed.



Sec.  1.27  Change in ownership, management, or control of the applicant.

    In the event of any change in the ownership, management, or control 
of the applicant (in case of a corporation, any change in the officers, 
directors, or persons holding more than 10 percent of the corporate 
stock), after the date of filing of any application for a basic permit 
and prior to final action on such application, the applicant shall 
notify the appropriate TTB officer immediately of such change.



Sec.  1.29  Individual plant or premises.

    An application for a basic permit must be filed, and permit issued, 
to cover each individual plant or premises where any of the businesses 
specified in section 103 of the Act is engaged in.

[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]



Sec.  1.30  Power of attorney; Form 5000.8 (1534).

    If the application and other documents in support of such 
application are signed by an attorney in fact of an individual, 
partnership, association, or corporation, or by one of the members of a 
copartnership or association, or, in the case of a corporation by an 
officer or other person not authorized by the corporation's bylaws or by 
its board of directors to sign such applications and supporting 
documents, the applications must be supported by a duly authenticated 
copy of the power of attorney conferring authority upon the person 
signing the documents to execute the

[[Page 9]]

same. Such powers of attorney will be executed on Form 5000.8 (1534).

(Approved by the Office of Management and Budget under control number 
1512-0079)

[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 
FR 49985, Sept. 15, 1999]



Sec.  1.31  Denial of permit applications.

    If, upon examination of any application for a basic permit, the 
appropriate TTB officer has reason to believe that the applicant is not 
entitled to such a permit, the appropriate TTB officer shall institute 
proceedings for the denial of the application in accordance with the 
procedure set forth in part 71 of this chapter.

                              Authorization



Sec.  1.35  Authority to issue, amend, deny, suspend, revoke, or annul basic permits.

    The authority and power of issuing, amending, or denying basic 
permits, or amendments thereof, is conferred upon the appropriate TTB 
officer except as to agency initiated curtailment. The Administrator, 
upon consideration of appeals on petitions for review in part 71 of this 
chapter, may order the appropriate TTB officer to issue, deny, suspend, 
revoke, or annul basic permits.

[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]

                 Amendment and Duration of Basic Permits



Sec.  1.40  Change of name.

    In the event of any change in the name (trade or corporate name) of 
a permittee, or, in the event a permittee desires to engage in 
operations under an additional trade name, such permittee must file 
application Form 5100.18 for an amended basic permit, which application 
must be approved, and amended permit issued, before operations may be 
commenced under the new name.

(Approved by the Office of Management and Budget under control number 
1512-0090)

[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF- 416, 
64 FR 49985, Sept. 15, 1999]



Sec.  1.41  Change of address.

    In the event of a change in address the permittee must file 
application Form 5100.18 for an amended basic permit.

[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF- 416, 
64 FR 49985, Sept. 15, 1999]



Sec.  1.42  Change in ownership, management, or control of business.

    In the event of any change in the ownership, management, or control 
of any business operated pursuant to a basic permit (if the permittee is 
a corporation, if any change occurs in the officers, directors, or 
persons owning or controlling more than 10 percent of the voting stock 
of said corporation) the permittee shall immediately notify the 
appropriate TTB officer of such change, giving the names and addresses 
of all new persons participating in the ownership, management, or 
control of such business, or in the case of a corporation, the names and 
addresses of such new officers, directors, or persons owning or 
controlling more than 10 percent of the voting stock. Notice to the 
appropriate TTB officer of any such change shall be accompanied or 
supplemented by such data in reference to the personal or business 
history of such persons as the appropriate TTB officer may require.



Sec.  1.43  Duration of permits.

    A basic permit shall continue in effect until suspended, revoked, 
annulled, voluntarily surrendered, or automatically terminated, as 
provided in the Act and in this part.



Sec.  1.44  Automatic termination of permits.

    No basic permit shall be leased, sold, or otherwise voluntarily 
transferred, and, in the event of such lease, sale, or other voluntary 
transfer, such basic permit shall automatically terminate thereupon. If 
any basic permit is transferred by operation of law or if actual or 
legal control of the permittee is acquired, directly or indirectly 
whether by stock ownership or in any other manner, by any person, then 
such permit shall be automatically terminated at the expiration of 30 
days thereafter:

[[Page 10]]

Provided, That if within such 30-day period application for a new basic 
permit is made by the transferee or permittee, respectively, then the 
outstanding basic permit shall continue in effect until such time as the 
application is finally acted upon.

          Revocation, Suspension, or Annulment of Basic Permits



Sec.  1.50  Revocation or suspension.

    Whenever the appropriate TTB officer has reason to believe that any 
permittee has willfully violated any of the conditions of the 
permittee's basic permit or has not engaged in the operations authorized 
by the permit for a period of more than two years, the appropriate TTB 
officer shall institute proceedings for the revocation or suspension of 
such permit, in accordance with the procedure set forth in part 71 of 
this chapter, which part is made applicable to such proceedings.



Sec.  1.51  Annulment.

    Whenever the appropriate TTB officer has reason to believe that any 
basic permit was procured through fraud, or misrepresentation or 
concealment of material fact, the appropriate TTB officer shall 
institute proceedings for the annulment of such permit in accordance 
with the procedure set forth in part 71 of this chapter, which part is 
made applicable to such proceedings.



Sec.  1.52  Disposition of stocks of alcoholic beverages upon revocation, annulment, or automatic termination of basic permit.

    In the event of the revocation or annulment of a basic permit, 
pursuant to part 71 of this chapter, or in the event such permit is 
automatically terminated by operation of law (27 U.S.C. 204(g) and Sec.  
1.44 of this part), the appropriate TTB officer may authorize the 
orderly disposition of stocks of distilled spirits, wines, or malt 
beverages then held by the permittee or former permittee upon such 
conditions as may be considered proper.

                              Miscellaneous



Sec.  1.55  Recalling permits for correction.

    Whenever it shall be discovered that any basic permit has been 
issued authorizing acts, or combinations of acts, which may not 
properly, under the law and regulations, as of now or hereafter in 
force, be authorized, or that any material mistake has occurred in the 
issuance thereof, the holder of such permit shall forthwith surrender 
the same for correction or amendment upon demand of the appropriate TTB 
officer.



Sec.  1.56  Oaths and affirmations.

    A document must be verified by an oath or affirmation taken before a 
person authorized by the laws of the United States or by State or local 
law to administer oaths or affirmations in the jurisdiction where the 
document is executed when required by:
    (a) Regulation; or
    (b) An appropriate TTB officer.

[T.D. ATF-416, 64 FR 49985, Sept. 15, 1999]



Sec.  1.57  Procedure.

    The procedures prescribed by the rules of practice in permit 
proceedings (part 71 of this chapter) are applicable to administrative 
proceedings for the issuance, amendment, denial, revocation, suspension, 
or annulment of basic permits, the issuance of subpoenas and the taking 
of depositions under the Act.



Sec.  1.58  Filing of permits.

    Every person receiving a basic permit under the provisions of this 
part must file the same, at the place of business covered by the basic 
permit, so that it may be examined by appropriate TTB officers.

[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 
FR 49985, Sept. 15, 1999]



Sec.  1.59  Public information as to applications acted upon.

    The appropriate TTB officer shall cause to be maintained currently 
in the appropriate TTB officer's office for public inspection, until the 
expiration of one year following final action on the application, the 
following information with respect to each application for basic permit 
filed:
    (a) The name, including trade name or names, if any, and the address 
of the applicant; the kind of permit applied

[[Page 11]]

for and the location of the business; whether the applicant is an 
individual, a partnership or a corporation; if a partnership, the name 
and address of each partner; if a corporation, the name and address of 
each of the principal officers and of each stockholder owning 10 percent 
or more of the corporate stock.
    (b) The time and place set for any hearing on the application.
    (c) The final action taken on the application. In the event a 
hearing is held upon an application for a basic permit, the appropriate 
TTB officer shall make available for inspection at the appropriate TTB 
officer's office, upon request therefor: The transcript of the hearing, 
a copy of the administrative law judge's recommended decision, a copy of 
the appropriate TTB officer's decision and, in the event of an appeal to 
the Administrator, the decision on appeal with the reasons given in 
support thereof.

[T.D. ATF-373, 61 FR 26098, May 24, 1996, as amended by T.D. ATF-416, 64 
FR 49985, Sept. 15, 1999]



        Subpart D_Nonindustrial Use of Distilled Spirits and Wine

                       Uses Regarded as Industrial



Sec.  1.60  Use of distilled spirits.

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



Sec.  1.61  Use of wine.

    The following uses of wine are regarded as ``industrial'' and will 
be excluded from any application of the term ``nonindustrial''. The use 
of wine:
    (a) Without payment of tax for use in the production of vinegar; or
    (b) Free of tax for experimental or research purposes by any 
scientific university, college of learning, or institution of scientific 
research; or
    (c) Free of tax for use by the United States or any agency thereof, 
and for use for analysis, testing, research, or experimentation by the 
governments of the several States and the District of Columbia or of any 
political subdivision thereof or by any agency of such governments; or
    (d) Which has been rendered unfit for beverage use.



Sec.  1.62  Use of distilled spirits or wine for experimental purposes and in manufacture of nonbeverage products.

    The use of distilled spirits or wine for experimental purposes and 
in the manufacture of (a) medicinal, pharmaceutical, or antiseptic 
products, including prescriptions compounded by retail druggists; (b) 
toilet preparations; (c) flavoring extracts, syrups, or food products; 
or (d) scientific, chemical, mechanical, or industrial products,

[[Page 12]]

provided such products are unfit for beverage use, is regarded as 
``industrial,'' and will be excluded from any application of the term 
``nonindustrial use.''

                      Uses Classed as Nonindustrial



Sec.  1.70  General.

    All uses of distilled spirits and wines, except as provided in 
Sec. Sec.  1.60, 1.61, and 1.62 of this part, are regarded as 
``nonindustrial.'' Such ``nonindustrial'' use shall include, but not be 
limited to, distilled spirits or wine used for beverage purposes, or in 
the manufacture, rectification, or blending of alcoholic beverages; or 
in the preparation of food or drink by a hotel, restaurant, tavern, or 
similar establishment; or for sacramental purposes; or as a medicine.



Sec.  1.71  Distilled spirits in containers of a capacity of one gallon or less.

    Distilled spirits in containers of a capacity of one wine gallon or 
less, except anhydrous alcohol and alcohol which may be withdrawn free 
of tax under the internal revenue laws, will be deemed to be for 
nonindustrial use.



         Subpart E_Bulk Sales and Bottling of Distilled Spirits

                         Bulk Sales and Bottling



Sec.  1.80  Sales of distilled spirits in bulk.

    It is unlawful for any person to sell, offer to sell, contract to 
sell, or otherwise dispose of distilled spirits in bulk, for 
nonindustrial use, except for export or to the classes of persons 
enumerated in Sec. Sec.  1.82, 1.83, and 1.84.



Sec.  1.81  Importation of distilled spirits in bulk.

    It is unlawful for any person to import distilled spirits in bulk, 
for nonindustrial use, except for sale to or for use by the classes of 
persons enumerated in Sec. Sec.  1.82, 1.83 and 1.84.



Sec.  1.82  Acquiring or receiving distilled spirits in bulk for redistillation, processing, rectification, warehousing, or warehousing and bottling.

    (a) Proprietors of distilled spirits plants. Persons holding basic 
permits (issued under subpart B of this part) authorizing the 
distilling, processing, rectifying, or warehousing and bottling of 
distilled spirits, or operating permits (issued under Sec.  19.157 and 
succeeding sections of this chapter) may acquire or receive in bulk and 
redistill, warehouse, or process distilled spirits, so far as permitted 
by law.
    (b) Proprietors of class 8 customs bonded warehouses. If the 
permittee operates a class 8 customs bonded warehouse, the permittee may 
acquire or receive in bulk, and warehouse and bottle, imported distilled 
spirits, so far as permitted by the customs laws.

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 
981, as amended))



Sec.  1.83  Acquiring or receiving distilled spirits in bulk for addition to wine.

    Persons holding permits as producers and blenders of wine, may, 
pursuant to such permit, acquire or receive in bulk alcohol or brandy 
for addition to wines.



Sec.  1.84  Acquisition of distilled spirits in bulk by Government agencies.

    Any agency of the United States, or of any State or political 
subdivision thereof, may acquire or receive in bulk, and warehouse and 
bottle, imported and domestic distilled spirits in conformity with the 
internal revenue laws.

                           Warehouse Receipts



Sec.  1.90  Distilled spirits in bulk.

    By the terms of the Act (27 U.S.C. 206), all warehouse receipts for 
distilled spirits in bulk must require that the warehouseman shall 
package such distilled spirits, before delivery, in bottles labeled and 
marked in accordance with law, or deliver such distilled spirits in bulk 
only to persons to whom it is lawful to sell or otherwise dispose of 
distilled spirits in bulk.



Sec.  1.91  Bottled distilled spirits.

    The provisions of the Act, which forbid any person to sell, offer to 
sell, contract to sell, or otherwise dispose of warehouse receipts for 
distilled spirits in bulk, do not apply to warehouse receipts for 
bottled distilled spirits.

    Cross Reference: For labeling of distilled spirits, see part 5 of 
this chapter.

[[Page 13]]

              Sales of Distilled Spirits for Industrial Use



Sec.  1.95  General.

    Distillers, rectifiers, and other permittees engaged in the sale or 
other disposition of distilled spirits for nonindustrial use shall not 
sell or otherwise dispose of distilled spirits in bulk (other than 
alcohol) for industrial use, unless such distilled spirits are shipped 
or delivered directly to the industrial user thereof.



PART 4_LABELING AND ADVERTISING OF WINE--Table of Contents




                             Subpart A_Scope

Sec.
4.1 General.
4.2 Territorial extent.
4.3 Forms prescribed.
4.4 Delegations of the Administrator.
4.5 Related regulations.

                          Subpart B_Definitions

4.10 Meaning of terms.

                Subpart C_Standards of Identity for Wine

4.20 Application of standards.
4.21 The standards of identity.
4.22 Blends, cellar treatment, alteration of class or type.
4.23 Varietal (grape type) labeling.
4.24 Generic, semi-generic, and non-generic designations of geographic 
          significance.
4.25 Appellations of origin.
4.26 Estate bottled.
4.27 Vintage wine.
4.28 Type designations of varietal significance.

                Subpart D_Labeling Requirements for Wine

4.30 General.
4.32 Mandatory label information.
4.32a Voluntary disclosure of major food allergens.
4.32b Petitions for exemption from major food allergen labeling.
4.33 Brand names.
4.34 Class and type.
4.35 Name and address.
4.36 Alcoholic content.
4.37 Net contents.
4.38 General requirements.
4.38a Bottle cartons, booklets and leaflets.
4.39 Prohibited practices.

   Subpart E_Requirements for Withdrawal of Wine From Customs Custody

4.40 Label approval and release.
4.45 Certificates of origin, identity and proper cellar treatment.
4.46 Certificate of nonstandard fill.

   Subpart F_Requirements for Approval of Labels of Wine Domestically 
                            Bottled or Packed

4.50 Certificates of label approval.
4.51 Exhibiting certificates to Government officials.
4.52 Photoprints.

                      Subpart G_Advertising of Wine

4.60 Application.
4.61 Definitions.
4.62 Mandatory statements.
4.63 Legibility of mandatory information.
4.64 Prohibited practices.
4.65 Comparative advertising.

                  Subpart H_Standards of Fill for Wine

4.70 Application.
4.71 Standard wine containers.
4.72 Metric standards of fill.

                      Subpart I_General Provisions

4.80 Exports.

                 Subpart J_American Grape Variety Names

4.91 List of approved prime names.
4.92 Alternative names permitted for temporary use.
4.93 Approval of grape variety names.

                  Subpart K_Use of the Term ``Organic''

4.101 Use of the term ``organic.''

    Authority: 27 U.S.C. 205, unless otherwise noted.

    Source: T.D. 6521, 25 FR 13835, Dec. 29, 1960, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 4 appear by T.D. ATF-
425, 65 FR 11890, Mar. 7, 2000.



                             Subpart A_Scope



Sec.  4.1  General.

    The regulations in this part relate to the labeling and advertising 
of wine.



Sec.  4.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and Puerto Rico.

[[Page 14]]



Sec.  4.3  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part. The 
form will be filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-92, 46 FR 46911, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5955, Feb. 27, 1987; T.D. 372, 61 FR 20723, May 8, 1996; T.D. ATF-
425, 65 FR 11890, Mar. 7, 2000; T.D. TTB-44, 71 FR 16920, Apr. 4, 2006]



Sec.  4.4  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.4, Delegation of the Administator's 
Authorities in 27 CFR Part 4, Labeling and Advertising of Wine. You may 
obtain a copy of this order by accessing the TTB Web site (http://
www.ttb.gov) or by mailing a request to the Alcohol and Tobacco Tax and 
Trade Bureau, National Revenue Center, 550 Main Street, Room 1516, 
Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16920, Apr. 4, 2006]



Sec.  4.5  Related regulations.

    The following regulations also relate to this part:

27 CFR Part 205--National Organic Program
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act, Nonindustrial Use of Distilled Spirits and Wine, 
Bulk Sales and Bottling of Distilled Spirits
27 CFR Part 5--Labeling and Advertising of Distilled Spirits
27 CFR Part 7--Labeling and Advertising of Malt Beverages
27 CFR Part 9--American Viticultural Areas
27 CFR Part 12--Foreign Nongeneric Names of Geographic Significance Used 
in the Designation of Wines
27 CFR Part 13--Labeling Proceedings
27 CFR Part 16--Alcoholic Beverage Health Warning Statement
27 CFR Part 24--Wine
27 CFR Part 26--Liquors and Articles From Puerto Rico and the Virgin 
Islands
27 CFR Part 27--Importation of Distilled Spirits, Wines, and Beer
27 CFR Part 28--Exportation of Alcohol
27 CFR Part 71--Rules of Practice in Permit Proceedings

[T.D. ATF-483, 67 FR 62857, Oct. 8, 2002, as amended by T.D. TTB-8, 69 
FR 3829, Jan. 27, 2004]



                          Subpart B_Definitions



Sec.  4.10  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
shall have the meaning ascribed in this part.
    Act. The Federal Alcohol Administration Act.
    Added brandy. Brandy or wine spirits for use in fortification of 
wine as permitted by internal revenue law.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Advertisement. See Sec.  4.61 for meaning of term as used in subpart 
G of this part.
    Alcohol. Ethyl alcohol distilled at or above 190[deg] proof.
    American. The several States, the District of Columbia, and Puerto 
Rico; ``State'' includes the District of Columbia and Puerto Rico.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.4,Delegation of the Administrator's Authorities in 27 CFR part 4, 
Labeling and Advertising of Wine.
    Bottler. Any person who places wine in containers of four liters or 
less. (See meaning for ``containers'' and ``packer''.)
    Brand label. The label carrying, in the usual distinctive design, 
the brand name of the wine.
    Container. Any bottle, barrel, cask, or other closed receptacle 
irrespective of size or of the material from which

[[Page 15]]

made for use for the sale of wine at retail. (See meaning for 
``bottler'' and ``packer''.)
    Gallon. A U.S. gallon of 231 cubic inches of alcoholic beverages at 
60 [deg]F.
    Interstate or foreign commerce. Commerce between any State and any 
place outside thereof, or commerce within any Territory or the District 
of Columbia, or between points within the same State but through any 
place outside thereof.
    Liter or litre. (a) A metric unit of capacity equal to 1,000 cubic 
centimeters and equivalent to 33.814 U.S. fluid ounces. For purposes of 
this part, a liter is subdivided into 1,000 milliliters (ml).
    (b) For purposes of regulation, one liter of wine is defined as that 
quantity (mass) of wine occupying a one-liter volume at 20 [deg]Celsius 
(68 [deg]F).
    Packer. Any person who places wine in containers in excess of four 
liters. (See meaning for ``container'' and ``bottler''.)
    Percent or percentage. Percent by volume.
    Permittee. Any person holding a basic permit under the Federal 
Alcohol Administration Act.
    Person. Any individual, partnership, joint-stock company, business 
trust, association, corporation, or other form of business enterprise, 
including a receiver, trustee, or liquidating agent, and including an 
officer or employee of any agency of a State or political subdivision 
thereof.
    Pure condensed must. The dehydrated juice or must of sound, ripe 
grapes, or other fruit or agricultual products, concentrated to not more 
than 80[deg] (Balling), the composition thereof remaining unaltered 
except for removal of water.
    Restored pure condensed must. Pure condensed must to which has been 
added an amount of water not exceeding the amount removed in the 
dehydration process.
    Sugar. Pure cane, beet, or dextrose sugar in dry for containing, 
respectively, not less than 95 percent of actual sugar calculated on a 
dry basis.
    Total solids. The degrees Brix of the dealcoholized wine restored to 
its original volume.
    Trade buyer. Any person who is a wholesaler or retailer.
    United States. The several States, the District of Columbia, and 
Puerto Rico; the term ``State'' includes the District of Columbia and 
Puerto Rico.
    Use of other terms. Any other term defined in the Federal Alcohol 
Administration Act and used in this part shall have the same meaning 
assigned to it by the Act.
    Wine. (a) Wine as defined in section 610 and section 617 of the 
Revenue Act of 1918 (26 U.S.C. 3036, 3044, 3045) and (b) other alcoholic 
beverages not so defined, but made in the manner of wine, including 
sparkling and carbonated wine, wine made from condensed grape must, wine 
made from other agricultural products than the juice of sound, ripe 
grapes, initation wine, compounds sold as wine, vermouth, cider, perry, 
and sake; in each instance only if containing not less than 7 percent, 
and not more than 24 percent of alcohol by volume, and if for 
nonindustrial use.

[T.D. ATF-48, 43 FR 13532, Mar. 31, 1978, as amended by T.D. ATF-49, 43 
FR 19848, May 9, 1978; T.D. ATF-53, 43 FR 37675, Aug. 23, 1978; 44 FR 
55838, Sept. 29, 1979; T.D. ATF-66, 45 FR 40544, June 13, 1980; T.D. 
ATF-94, 46 FR 55095, Nov. 6, 1981; T.D. ATF-299, 55 FR 24988, June 19, 
1990; T.D. ATF-425, 65 FR 11891, Mar. 7, 2000; T.D. TTB-44, 71 FR 16921, 
Apr. 4, 2006]



                Subpart C_Standards of Identity for Wine



Sec.  4.20  Application of standards.

    The standards of identity for the several classes and types of wine 
set forth herein shall be applicable to all regulations and permits 
issued under the act. Whenever any term for which a standard of identity 
has been established herein is used in any such regulation or permit, 
such term shall have the meaning assigned to it by such standard of 
identity.



Sec.  4.21  The standards of identity.

    Standards of identity for the several classes and types of wine set 
forth in this part shall be as follows:
    (a) Class 1; grape wine--(1) Grape wine is wine produced by the 
normal alcoholic fermentation of the juice of sound, ripe grapes 
(including restored or unrestored pure condensed grape

[[Page 16]]

must), with or without the addition, after fermentation, of pure 
condensed grape must, and with or without added grape brandy or alcohol, 
but without other addition or abstraction except as may occur in cellar 
treatment: Provided, That the product may be ameliorated before, during 
or after fermentation by either of the following methods:
    (i) By adding, separately or in combination, dry sugar, or such an 
amount of sugar and water solution as will not increase the volume of 
the resulting product more than 35 percent; but in no event shall any 
product so ameliorated have an alcoholic content derived by 
fermentation, of more than 13 percent by volume, or a natural acid 
content, if water has been added, of less than 5 parts per thousand, or 
a total solids content of more than 22 grams per 100 cubic centimeters.
    (ii) By adding, separately or in combination, not more than 20 
percent by weight of dry sugar, or not more than 10 percent by weight of 
water.
    (iii) In the case of domestic wine, in accordance with 26 U.S.C. 
5383.
    (iv) The maximum volatile acidity, calculated as acetic acid and 
exclusive of sulfur dioxide is 0.14 gram per 100 mL (20 [deg]C) for 
natural red wine and 0.12 gram per 100 mL (20 [deg]C) for other grape 
wine: Provided, That the maximum volatile acidity for wine produced from 
unameliorated juice of 28 or more degrees Brix is 0.17 gram per 100 
milliliters for red wine and 0.15 gram per 100 milliliters for white 
wine. Grape wine deriving its characteristic color or lack of color from 
the presence or absence of the red coloring matter of the skins, juice, 
or pulp of grapes may be designated as ``red wine,'' ``pink (or rose) 
wine,'' ``amber wine,'' or ``white wine'' as the case may be. Any grape 
wine containing no added grape brandy or alcohol may be further 
designated as ``natural.''
    (2) Table wine is grape wine having an alcoholic content not in 
excess of 14 percent by volume. Such wine may also be designated as 
``light wine,'' ``red table wine,'' ``light white wine,'' ``sweet table 
wine,'' etc., as the case may be.
    (3) Dessert wine is grape wine having an alcoholic content in excess 
of 14 percent but not in excess of 24 percent by volume. Dessert wine 
having the taste, aroma and characteristics generally attributed to 
sherry and an alcoholic content, derived in part from added grape brandy 
or alcohol, of not less than 17 percent by volume, may be designated as 
``sherry''. Dessert wines having the taste, aroma and characteristics 
generally attributed to angelica, madeira, muscatel and port and an 
alcoholic content, derived in part from added grape brandy or alcohol, 
of not less than 18 percent by volume, may be designated as 
``angelica,'' ``madeira,'' ``muscatel,'' or ``port'' respectively. 
Dessert wines having the taste, aroma, and characteristics generally 
attributed to any of the above products and an alcoholic content, 
derived in part from added grape brandy or alcohol, in excess of 14 
percent by volume but, in the case of sherry, less than 17 percent, or, 
in other cases, less than 18 percent by volume, may be designated as 
``light sherry,'' ``light angelica,'' ``light madeira,'' ``light 
muscatel'' or ``light port,'' respectively.
    (b) Class 2; sparkling grape wine. (1) Sparkling grape wine 
(including ``sparkling wine,'' ``sparkling red wine'' and ``sparkling 
white wine'') is grape wine made effervescent with carbon dioxide 
resulting solely from the fermentation of the wine within a closed 
container, tank or bottle.
    (2) Champagne is a type of sparkling light wine which derives its 
effervescence solely from the secondary fermentation of the wine within 
glass containers of not greater than one gallon capacity, and which 
possesses the taste, aroma, and other characteristics attributed to 
champagne as made in the champagne district of France.
    (3)(i) A sparkling light wine having the taste, aroma, and 
characteristics generally attributed to champagne but not otherwise 
conforming to the standard for ``champagne'' may, in addition to but not 
in lieu of the class designation ``sparkling wine,'' be further 
designated as:
    (A) ``Champagne style;'' or
    (B) ``Champagne type;'' or
    (C) ``American (or New York State, Napa Valley, etc.) champagne,'' 
along with one of the following terms: ``Bulk

[[Page 17]]

process,'' ``fermented outside the bottle,'' ``secondary fermentation 
outside the bottle,'' ``secondary fermentation before bottling,'' ``not 
fermented in the bottle,'' or ``not bottle fermented.'' The term 
``charmat method'' or ``charmat process'' may be used as additional 
information.
    (ii) Labels shall be so designed that all the words in such further 
designation are readily legible under ordinary conditions and are on a 
contrasting background. In the case of paragraph (b)(3)(i)(C) of this 
section, TTB will consider whether the label as a whole provides the 
consumer with adequate information about the method of production and 
origin of the wine. TTB will evaluate each label for legibility and 
clarity, based on such factors as type size and style for all components 
of the further designation and the optional term ``charmat method'' or 
``charmat process,'' as well as the contrast between the lettering and 
its background, and the placement of information on the label.
    (iii) Notwithstanding the provisions of paragraphs (b)(3)(i)(A), (B) 
and (C) of this section, the appropriate TTB officer may authorize the 
use of a term on sparkling wine labels, as an alternative to those terms 
authorized in paragraph (b)(3)(i) of this section, but not in lieu of 
the required class designation ``sparkling wine,'' upon a finding that 
such term adequately informs the consumer about the method of production 
of the sparkling wine.
    (4) Crackling wine, petillant wine, frizzante wine (including 
cremant, perlant, reciotto, and other similar wine) is sparkling light 
wine normally less effervescent than champagne or other similar 
sparkling wine, but containing sufficient carbon dioxide in solution to 
produce, upon pouring under normal conditions, after the disappearance 
of air bubbles, a slow and steady effervescence evidenced by the 
formation of gas bubbles flowing through the wine. Crackling wine which 
derives its effervescence from secondary fermentation in containers 
greater than 1-gallon capacity shall be designated ``crackling wine--
bulk process,'' and the words ``bulk process'' shall appear in lettering 
of substantially the same size as the words ``crackling wine.''
    (c) Class 3; carbonated grape wine. ``Carbonated grape wine'' 
(including ``carbonated wine,'' ``carbonated red wine,'' and 
``carbonated white wine'') is grape wine made effervescent with carbon 
dioxide other than that resulting solely from the secondary fermentation 
of the wine within a closed container, tank or bottle.
    (d) Class 4; citrus wine. (1)(i) Citrus wine or citrus fruit wine is 
wine produced by the normal alcoholic fermentation of the juice of 
sound, ripe citrus fruit (including restored or unrestored pure 
condensed citrus must), with or without the addition, after 
fermentation, of pure condensed citrus must, and with or without added 
citrus brandy or alcohol, but without any other addition or abstraction 
except as may occur in cellar treatment: Provided, That a domestic 
product may be ameliorated or sweetened in accordance with the 
provisions of 26 U.S.C. 5384 and any product other than domestic may be 
ameliorated before, during, or after fermentation by adding, separately 
or in combination, dry sugar, or such an amount of sugar and water 
solution as will not increase the volume of the resulting product more 
than 35 percent, or in the case of products produced from citrus fruit 
having a normal acidity of 20 parts or more per thousand, not more than 
60 percent, but in no event shall any product so ameliorated have an 
alcoholic content, derived by fermentation, of more than 14 percent by 
volume, or a natural acid content, if water has been added, of less than 
5 parts per thousand, or a total solids content or more than 22 grams 
per 100 cubic centimeters.
    (ii) The maximum volatile acidity, calculated as acetic acid and 
exclusive of sulfur dioxide, shall not be, for natural citrus wine, more 
than 0.14 gram, and for other citrus wine, more than 0.12 gram, per 100 
milliliters (20 [deg]C.).
    (iii) Any citrus wine containing no added brandy or alcohol may be 
further designated as ``natural.''
    (2) Citrus table wine or citrus fruit table wine is citrus wine 
having an alcoholic content not in excess of 14 percent by volume. Such 
wine may also be designated ``light citrus wine,'' ``light citrus fruit 
wine,'' ``light sweet citrus fruit wine,'' etc., as the case may be.

[[Page 18]]

    (3) Citrus dessert wine or citrus fruit dessert wine is citrus wine 
having an alcoholic content in excess of 14 percent but not in excess of 
24 percent by volume.
    (4) Citrus wine derived wholly (except for sugar, water, or added 
alcohol) from one kind of citrus fruit, shall be designated by the word 
``wine'' qualified by the name of such citrus fruit, e.g., ``orange 
wine,'' ``grapefruit wine.'' Citrus wine not derived wholly from one 
kind of citrus fruit shall be designated as ``citrus wine'' or ``citrus 
fruit wine'' qualified by a truthful and adequate statement of 
composition appearing in direct conjunction therewith. Citrus wine 
rendered effervescent by carbon dioxide resulting solely from the 
secondary fermentation of the wine within a closed container, tank, or 
bottle shall be further designated as ``sparkling''; and citrus wine 
rendered effervescent by carbon dioxide otherwise derived shall be 
further designated as ``carbonated.''
    (e) Class 5; fruit wine. (1)(i) Fruit wine is wine (other than grape 
wine or citrus wine) produced by the normal alcoholic fermentation of 
the juice of sound, ripe fruit (including restored or unrestored pure 
condensed fruit must), with or without the addition, after fermentation, 
of pure condensed fruit must, and with or without added fruit brandy or 
alcohol, but without other addition or abstraction except as may occur 
in cellar treatment: Provided, That a domestic product may be 
ameliorated or sweetened in accordance with the provisions of 26 U.S.C. 
5384 and any product other than domestic may be ameliorated before, 
during, or after fermentation by adding, separately or in combination, 
dry sugar, or such an amount of dry sugar and water solution as will 
increase the volume of the resulting product, in the case of wines 
produced from any fruit or berry other than grapes, having a normal 
acidity of 20 parts or more per thousand, not more than 60 percent, and 
in the case of other fruit wines, not more than 35%, but in no event 
shall any product so ameliorated have an alcoholic content, derived by 
fermentation, of more than 14 percent by volume, or a natural acid 
content, if water has been added, of less than 5 parts per thousand, or 
a total solids content of more than 22 grams per 100 cubic centimeters.
    (ii) The maximum volatile acidity, calculated as acetic acid and 
exclusive of sulfur dioxide, shall not be, for natural fruit wine, more 
than 0.14 gram, and for other fruit wine, more than 0.12 gram, per 100 
milliliters (20 [deg]C.).
    (iii) Any fruit wine containing no added brandy or alcohol may be 
further designated as ``natural.''
    (2) Berry wine is fruit wine produced from berries.
    (3) Fruit table wine or berry table wine is fruit or berry wine 
having an alcoholic content not in excess of 14 percent by volume. Such 
wine may also be designated ``light fruit wine,'' or ``light berry 
wine.''
    (4) Fruit dessert wine or berry dessert wine is fruit or berry wine 
having an alcoholic content in excess of 14 percent but not in excess of 
24 percent by volume.
    (5) Fruit wine derived wholly (except for sugar, water, or added 
alcohol) from one kind of fruit shall be designated by the word ``wine'' 
qualified by the name of such fruit, e.g., ``peach wine,'' ``blackberry 
wine.'' Fruit wine not derived wholly from one kind of fruit shall be 
designated as ``fruit wine'' or ``berry wine,'' as the case may be, 
qualified by a truthful and adequate statement of composition appearing 
in direct conjunction therewith. Fruit wines which are derived wholly 
(except for sugar, water, or added alcohol) from apples or pears may be 
designated ``cider'' and ``perry,'' respectively, and shall be so 
designated if lacking in vinous taste, aroma, and characteristics. Fruit 
wine rendered effervescent by carbon dioxide resulting solely from the 
secondary fermentation of the wine within a closed container, tank, or 
bottle shall be further designated as ``sparkling''; and fruit wine 
rendered effervescent by carbon dioxide otherwise derived shall be 
further designated as ``carbonated.''
    (f) Class 6; wine from other agricultural products. (1)(i) Wine of 
this class is wine (other than grape wine, citrus wine, or fruit wine) 
made by the normal alcoholic fermentation of sound fermentable 
agricultural products, either fresh or dried, or of the restored or

[[Page 19]]

unrestored pure condensed must thereof, with the addition before or 
during fermentation of a volume of water not greater than the minimum 
necessary to correct natural moisture deficiencies in such products, 
with or without the addition, after fermentation, of pure condensed 
must, and with or without added alcohol or such other spirits as will 
not alter the character of the product, but without other addition or 
abstraction except as may occur in cellar treatment: Provided, That a 
domestic product may be ameliorated or sweetened in accordance with part 
24, of this chapter, and any product other than domestic may be 
ameliorated before, during, or after fermentation by adding, separately 
or in combination, dry sugar or such an amount of sugar and water 
solution as will not increase the volume of the resulting product more 
than 35 percent, but in no event shall any product so ameliorated have 
an alcoholic content, derived by fermentation of more than 14 percent by 
volume, or a natural acid content, if water has been added, of less than 
5 parts per thousand, or a total solids content of more than 22 grams 
per 100 cubic centimeters.
    (ii) The maximum volatile acidity, calculated as acetic acid and 
exclusive of sulfur dioxide, shall not be, for natural wine of this 
class, more than 0.14 gram, and for other wine of this class, more than 
0.12 gram, per 100 milliliters (20 [deg]C.).
    (iii) Wine of this class containing no added alcohol or other 
spirits may be further designated as ``natural''.
    (2) Table wine of this class is wine having an alcoholic content not 
in excess of 14 percent by volume. Such wine may also be designated as 
``light''.
    (3) Dessert wine of this class is wine having an alcoholic content 
in excess of 14 percent but not in excess of 24 percent by volume.
    (4) Raisin wine is wine of this class made from dried grapes.
    (5) Sake is wine of this class produced from rice in accordance with 
the commonly accepted method of manufacture of such product.
    (6) Wine of this class derived wholly (except for sugar, water, or 
added alcohol) from one kind of agricultural product shall except in the 
case of ``sake,'' be designated by the word ``wine'' qualified by the 
name of such agricultural product, e.g., ``honey wine,'' ``raisin 
wine,'' ``dried blackberry wine.'' Wine of this class not derived wholly 
from one kind of agricultural product shall be designated as ``wine'' 
qualified by a truthful and adequate statement of composition appearing 
in direct conjunction therewith. Wine of this class rendered 
effervescent by carbon dioxide resulting solely from the secondary 
fermentation of wine within a closed container, tank, or bottle shall be 
further designated as ``sparkling''; and wine of this class rendered 
effervescent by carbon dioxide otherwise derived shall be further 
designated as ``carbonated.''
    (g) Class 7; aperitif wine. (1) Aperitif wine is wine having an 
alcoholic content of not less than 15 percent by volume, compounded from 
grape wine containing added brandy or alcohol, flavored with herbs and 
other natural aromatic flavoring materials, with or without the addition 
of caramel for coloring purposes, and possessing the taste, aroma, and 
characteristics generally attributed to aperitif wine and shall be so 
designated unless designated as ``vermouth'' under paragraph (g)(2) of 
this section.
    (2) Vermouth is a type of aperitif wine compounded from grape wine, 
having the taste, aroma, and characteristics generally attributed to 
vermouth, and shall be so designated.
    (h) Class 8; imitation and substandard or other than standard wine. 
(1) ``Imitation wine'' shall bear as a part of its designation the word 
``imitation,'' and shall include:
    (i) Any wine containing synthetic materials.
    (ii) Any wine made from a mixture of water with residue remaining 
after thorough pressing of grapes, fruit, or other agricultural 
products.
    (iii) Any class or type of wine the taste, aroma, color, or other 
characteristics of which have been acquired in whole or in part, by 
treatment with methods or materials of any kind (except as permitted in 
Sec.  4.22(c)(6)), if the taste, aroma, color, or other characteristics 
of normal wines of such class or type are acquired without such 
treatment.

[[Page 20]]

    (iv) Any wine made from must concentrated at any time to more than 
80[deg] (Balling).
    (2) ``Substandard wine'' or ``other than standard wine'' shall bear 
as a part of its designation the words ``substandard'' or ``other than 
standard,'' and shall include:
    (i) Any wine having a volatile acidity in excess of the maximum 
prescribed therefor in Sec. Sec.  4.20 to 4.25.
    (ii) Any wine for which no maximum volatile acidity is prescribed in 
Sec. Sec.  4.20 to 4.25, inclusive, having a volatile acidity, 
calculated as acetic acid and exclusive of sulfur dioxide, in excess of 
0.14 gram per 100 milliliters (20 [deg]C.).
    (iii) Any wine for which a standard of identity is prescribed in 
this Sec. Sec.  4.20 to 4.25, inclusive, which, through disease, 
decomposition, or otherwise, fails to have the composition, color, and 
clean vinous taste and aroma of normal wines conforming to such 
standard.
    (iv) Any ``grape wine'' ``citrus wine,'' ``fruit wine,'' or ``wine 
from other agricultural products'' to which has been added sugar and 
water solution in an amount which is in excess of the limitations 
prescribed in the standards of identity for these products, unless, in 
the case of ``citrus wine,'' ``fruit wine'' and ``wine from other 
agricultural products'' the normal acidity of the material from which 
such wine is produced is 20 parts or more per thousand and the volume of 
the resulting product has not been increased more than 60 percent by 
such addition.
    (i) Class 9; retsina wine. ``Retsina wine'' is grape table wine 
fermented or flavored with resin.

    Cross Reference: For regulations relating to the use of spirits in 
wine, see part 24 of this chapter.

[T.D. 6521, 25 FR 13835, Dec. 29, 1960]]

    Editorial Note: For Federal Register citations affecting Sec.  4.21, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec.  4.22  Blends, cellar treatment, alteration of class or type.

    (a) If the class or type of any wine shall be altered, and if the 
product as so altered does not fall within any other class or type 
either specified in Sec. Sec.  4.20 through 4.25 or known to the trade, 
then such wine shall, unless otherwise specified in this section, be 
designated with a truthful and adequate statement of composition in 
accordance with Sec.  4.34.
    (b) Alteration of class or type shall be deemed to result from any 
of the following occurring before, during, or after production.
    (1) Treatment of any class or type of wine with substances foreign 
to such wine which remain therein: Provided, That the presence in 
finished wine of not more than 350 parts per million of total sulfur 
dioxide, or sulphites expressed as sulfur dioxide, shall not be 
precluded under this paragraph.
    (2) Treatment of any class or type of wine with substances not 
foreign to such wine but which remain therein in larger quantities than 
are naturally and normally present in other wines of the same class or 
type not so treated.
    (3) Treatment of any class or type of wine with methods or materials 
of any kind to such an extent or in such manner as to affect the basic 
composition of the wine so treated by altering any of its characteristic 
elements.
    (4) Blending of wine of one class with wine of another class or the 
blending of wines of different types within the same class.
    (5) Treatment of any class or type of wine for which a standard of 
identity is prescribed in this subpart with sugar or water in excess of 
the quantities specifically authorized by such standards:
    Provided, That the class or type thereof shall not be deemed to be 
altered:
    (i) Where such wine (other than grape wine) is derived from fruit or 
other agricultural products having a high normal acidity, if the total 
solids content is not more than 22 grams per 100 cubic centimeters and 
the content of natural acid is not less than 7.69 grams per liter, and
    (ii) Where such wine is derived exclusively from fruit or other 
agricultural products the normal acidity of which is 20 parts or more 
per thousand, if the volume of the resulting product has been increased 
not more than 60 percent by the addition of sugar and water solution for 
the sole purpose of correcting natural deficiencies due to such acidity 
and (except in the case of such

[[Page 21]]

wine when produced from fruit or berries other than grapes) there is 
stated as part of the class and type designation the phrase ``Made with 
over 35 percent sugar solution.''
    (c) Nothing in this section shall preclude the treatment of wine of 
any class or type in the manner hereinafter specified, provided such 
treatment does not result in the alteration of the class or type of the 
wine under the provisions of paragraph (b) of this section.
    (1) Treatment with filtering equipment, and with fining or 
sterilizing agents.
    (2) Treatment with pasteurization as necessary to perfect the wines 
to commercial standards in accordance with acceptable cellar practice 
but only in such a manner and to such an extent as not to change the 
basic composition of the wine nor to eliminate any of its characteristic 
elements.
    (3) Treatment with refrigeration as necessary to perfect the wine to 
commercial standards in accordance with acceptable cellar practice but 
only in such a manner and to such an extent as not to change the basic 
composition of the wine nor to eliminate any of its characteristic 
elements.
    (4) Treatment with methods and materials to the minimum extent 
necessary to correct cloudiness, precipitation, or abnormal color, odor, 
or flavor developing in wine.
    (5) Treatment with constituents naturally present in the kind of 
fruit or other agricultural product from which the wine is produced for 
the purpose of correcting deficiencies of these constituents, but only 
to the extent that such constituents would be present in normal wines of 
the same class or type not so treated.
    (6) Treatment of any class or type of wine involving the use of 
volatile fruit-flavor concentrates in the manner provided in section 
5382 of the Internal Revenue Code.
    (7) Notwithstanding the provisions of Sec.  4.21(b) (1), (2) and 
(4), (c), (d)(4), (e)(5), and (f)(6) carbon dioxide may be used to 
maintain counterpressure during the transfer of finished sparkling wines 
from (i) bulk processing tanks to bottles, or (ii) bottle to bottle: 
Provided, That the carbon dioxide content of the wine shall not be 
increased by more than 0.009 gm. per 100 ml. during the transfer 
operation.

[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. 6776, 29 FR 
16985, Dec. 11, 1964; T.D. 7185, 37 FR 7976, Apr. 22, 1972; T.D. ATF-
403, 64 FR 50253, Sept. 16, 1999; T.D. ATF-458, 66 FR 37578, July 19, 
2001; T.D. ATF-953, 68 FR 39455, July 2, 2003]



Sec.  4.23  Varietal (grape type) labeling.

    (a) General. The names of one or more grape varieties may be used as 
the type designation of a grape wine only if the wine is also labeled 
with an appellation of origin as defined in Sec.  4.25a.
    (b) One variety. Except as provided in paragraph (c) of this 
section, the name of a single grape variety may be used as the type 
designation if not less than 75 percent of the wine is derived from 
grapes of that variety, the entire 75 percent of which was grown in the 
labeled appellation of origin area.
    (c) Exceptions. (1) Wine made from any Vitis labrusca variety 
(exclusive of hybrids with Vitis labrusca parentage) may be labeled with 
the variety name if:
    (i) Not less than 51 percent of the wine is derived from grapes of 
the named variety;
    (ii) The statement ``contains not less than 51 percent (name of 
variety)'' is shown on the brand label, back label, or a separate strip 
label, (except that this statement need not appear if 75 percent or more 
of the wine is derived from grapes of the named variety); and
    (iii) The entire qualifying percentage of the named variety was 
grown in the labeled appellation of origin area.
    (2) Wine made from any variety of any species found by the 
appropriate TTB officer upon appropriate application to be too strongly 
flavored at 75 percent minimum varietal content may be labeled with the 
varietal name if:
    (i) Not less than 51 percent of the wine is derived from grapes of 
that variety;
    (ii) The statement ``contains not less than 51 percent (name of 
variety)'' is shown on the brand label, back label, or a separate strip 
label (except that this statement need not appear if 75 percent or more 
of the wine is derived from grapes of the named variety); and

[[Page 22]]

    (iii) The entire qualifying percentage of the named variety was 
grown in the labeled appellation of origin area.
    (d) Two or more varieties. The names of two or more grape varieties 
may be used as the type designation if:
    (1) All of the grapes used to make the wine are of the labeled 
varieties;
    (2) The percentage of the wine derived from each variety is shown on 
the label (with a tolerance of plus or minus 2 percent); and
    (3)(i) If labeled with a multicounty appellation of origin, the 
percentage of the wine derived from each variety from each county is 
shown on the label; or
    (ii) If labeled with a multistate appellation of origin, the 
percentage of the wine derived from each variety from each state is 
shown on the label.
    (e) List of approved variety names. Effective February 7, 1996, the 
name of a grape variety may be used as a type designation for an 
American wine only if that name has been approved by the Administrator. 
A list of approved grape variety names appears in subpart J of this 
part.

[T.D. ATF-370, 61 FR 538, Jan. 8, 1996]



Sec.  4.24  Generic, semi-generic, and non-generic designations of geographic significance.

    (a)(1) A name of geographic significance which is also the 
designation of a class or type of wine, shall be deemed to have become 
generic only if so found by the Administrator.
    (2) Examples of generic names, originally having geographic 
significance, which are designations for a class or type of wine are: 
Vermouth, Sake.
    (b)(1) A name of geographic significance, which is also the 
designation of a class or type of wine, shall be deemed to have become 
semi-generic only if so found by the Administrator. Semi-generic 
designations may be used to designate wines of an origin other than that 
indicated by such name only if there appears in direct conjunction 
therewith an appropriate appellation of origin disclosing the true place 
of origin of the wine, and if the wine so designated conforms to the 
standard of identity, if any, for such wine contained in the regulations 
in this part or, if there be no such standard, to the trade 
understanding of such class or type. See Sec.  24.257(c) of this chapter 
for exceptions to the Administrator's authority to remove names from 
paragraph (b)(2) of this section.
    (2) Examples of semi-generic names which are also type designations 
for grape wines are Angelica, Burgundy, Claret, Chablis, Champagne, 
Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine (syn. 
Hock), Sauterne, Haut Sauterne, Sherry, Tokay.
    (c)(1) A name of geographic significance, which has not been found 
by the Administrator to be generic or semi-generic may be used only to 
designate wines of the origin indicated by such name, but such name 
shall not be deemed to be the distinctive designation of a wine unless 
the Administrator finds that it is known to the consumer and to the 
trade as the designation of a specific wine of a particular place or 
region, distinguishable from all other wines.
    (2) Examples of nongeneric names which are not distinctive 
designations of specific grape wines are: American, California, Lake 
Erie, Napa Valley, New York State, French, Spanish. Additional examples 
of foreign nongeneric names are listed in subpart C of part 12 of this 
chapter.
    (3) Examples of nongeneric names which are also distinctive 
designations of specific grape wines are: Bordeaux Blanc, Bordeaux 
Rouge, Graves, Medoc, Saint-Julien, Chateau Yquem, Chateau Margaux, 
Chateau Lafite, Pommard, Chambertin, Montrachet, Rhone, Liebfraumilch, 
Rudesheimer, Forster, Deidesheimer, Schloss Johannisberger, Lagrima, and 
Lacryma Christi. A list of foreign distinctive designations, as 
determined by the Administrator, appears in subpart D of part 12 of this 
chapter.

[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-296, 55 
FR 17967, Apr. 30, 1990; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. 
ATF-425, 65 FR 11890, 11891, Mar. 7, 2000]



Sec.  4.25  Appellations of origin.

    (a) Definition--(1) American wine. An American appellation of origin 
is: (i) The United States; (ii) a State; (iii) two or no more than three 
States which are all contiguous; (iv) a county (which

[[Page 23]]

must be identified with the word ``county'', in the same size of type, 
and in letters as conspicuous as the name of the county); (v) two or no 
more than three counties in the same States; or (vi) a viticultural area 
(as defined in paragraph (e) of this section).
    (2) Imported wine. An appellation of origin for imported wine is: 
(i) A country, (ii) a state, province, territory, or similar political 
subdivision of a country equivalent to a state or county; or (iii) a 
viticultural area.
    (b) Qualification--(1) American wine. An American wine is entitled 
to an appellation of origin other than a multicounty or multistate 
appellation, or a viticultural area, if:
    (i) At least 75 percent of the wine is derived from fruit or 
agricultural products grown in the appellation area indicated; (ii) it 
has been fully finished (except for cellar treatment pursuant to Sec.  
4.22(c), and blending which does not result in an alteration of class or 
type under Sec.  4.22(b)) in the United States, if labeled ``American''; 
or, if labeled with a State appellation, within the labeled State or an 
adjacent State; or if labeled with a county appellation, within the 
State in which the labeled county is located; and (iii) it conforms to 
the laws and regulations of the named appellation area governing the 
composition, method of manufacture, and designation of wines made in 
such place.
    (2) Imported wine. An imported wine is entitled to an appellation of 
origin other than a viticultural area if:
    (i) At least 75 percent of the wine is derived from fruit or 
agricultural products grown in the area indicated by the appellation of 
origin; and (ii) The wine conforms to the requirements of the foreign 
laws and regulations governing the composition, method of production, 
and designation of wines available for consumption within the country of 
origin.
    (c) Multicounty appellations. An appellation of origin comprising 
two or no more than three counties in the same State may be used if all 
of the fruit or other agricultural products were grown in the counties 
indicated, and the percentage of the wine derived from fruit or other 
agricultural products grown in each county is shown on the label with a 
tolerance of plus or minus two percent.
    (d) Multistate appellation. An appelation of origin comprising two 
or no more than three States which are all contiguous may be used, if:
    (1) All of the fruit or other agricultural products were grown in 
the States indicated, and the percentage of the wine derived from fruit 
or other agricultural products grown in each State is shown on the label 
with a tolerance of plus or minus two percent;
    (2) it has been fully finished (except for cellar treatment pursuant 
to Sec.  4.22(c), and blending which does not result in an alteration of 
class or type under Sec.  4.22(b)) in one of the labeled appellation 
States; (3) it conforms to the laws and regulations governing the 
composition, method of manufacture, and designation of wines in all the 
States listed in the appellation.
    (e) Viticultural area--(1) Definition--(i) American wine. A 
delimited grape growing region distinguishable by geographical features, 
the boundaries of which have been recognized and defined in part 9 of 
this chapter.
    (ii) Imported wine. A delimited place or region (other than an 
appellation defined in paragraph (a)(2)(i) or (a)(2)(ii)) the boundaries 
of which have been recognized and defined by the country of origin for 
use on labels of wine available for consumption within the country of 
origin.
    (2) Establishment of American viticultural areas. Petitions for 
establishment of American viticultural areas may be made to the 
Administrator by any interested party, pursuant to the provisions of 
Sec.  70.701(c) of this title. The petition may be in the form of a 
letter, and should contain the following information referred to in 
Sec.  9.3(b) of this title.
    (3) Requirements for use. A wine may be labeled with a viticultural 
area appellation if:
    (i) The appellation has been approved under part 9 of this title or 
by the appropriate foreign government;
    (ii) Not less than 85 percent of the wine is derived from grapes 
grown within the boundaries of the viticultural area;
    (iii) In the case of foreign wine, it conforms to the requirements 
of the

[[Page 24]]

foreign laws and regulations governing the composition, method of 
production, and designation of wines available for consumption within 
the country of origin; and
    (iv) In the case of American wine, it has been fully finished within 
the State, or one of the States, within which the labeled viticultural 
area is located (except for cellar treatment pursuant to Sec.  4.22(c), 
and blending which does not result in an alteration of class and type 
under Sec.  4.22(b)).
    (4) Overlap viticultural area appellations. An appellation of origin 
comprised of more than one viticultural area may be used in the case of 
overlapping viticultural areas if not less than 85 percent of the volume 
of the wine is derived from grapes grown in the overlapping area.

[T.D. ATF-53, 43 FR 37675, Aug. 23, 1978]

    Editorial Note: For Federal Register citations affecting Sec.  4.25, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec.  4.26  Estate bottled.

    (a) Conditions for use. The term Estate bottled may be used by a 
bottling winery on a wine label only if the wine is labeled with a 
viticultural area appellation of origin and the bottling winery:
    (1) Is located in the labeled viticultural area; (2) grew all of the 
grapes used to make the wine on land owned or controlled by the winery 
within the boundaries of the labeled viticultural area; (3) crushed the 
grapes, fermented the resulting must, and finished, aged, and bottled 
the wine in a continuous process (the wine at no time having left the 
premises of the bottling winery).
    (b) Special rule for cooperatives. Grapes grown by members of a 
cooperative bottling winery are considered grown by the bottling winery.
    (c) Definition of ``Controlled''. For purposes of this section, 
Controlled by refers to property on which the bottling winery has the 
legal right to perform, and does perform, all of the acts common to 
viticulture under the terms of a lease or similar agreement of at least 
3 years duration.
    (d) Use of other terms. No term other than Estate bottled may be 
used on a label to indicate combined growing and bottling conditions.

[T.D. ATF-53, 43 FR 37676, Aug. 23, 1978, as amended by T.D. ATF-201, 50 
FR 12533, Mar. 29, 1985]



Sec.  4.27  Vintage wine.

    (a) General. Vintage wine is wine labeled with the year of harvest 
of the grapes and made in accordance with the standards prescribed in 
classes 1, 2, or 3 of Sec.  4.21. The wine must be labeled with an 
appellation of origin other than a country (which does not qualify for 
vintage labeling). The appellation must be shown in direct conjunction 
with the designation required by Sec.  4.32(a)(2), in lettering 
substantially as conspicuous as that designation. In no event may the 
quantity of wine removed from the producing winery, under labels bearing 
a vintage date, exceed the volume of vintage wine produced in that 
winery during the year indicated by the vintage date. The following 
additional rules apply to vintage labeling:
    (1) If an American or imported wine is labeled with a viticultural 
area appellation of origin (or its foreign equivalent), at least 95 
percent of the wine must have been derived from grapes harvested in the 
labeled calendar year; or
    (2) If an American or imported wine is labeled with an appellation 
of origin other than a country or viticultural area (or its foreign 
equivalent), at least 85 percent of the wine must have been derived from 
grapes harvested in the labeled calendar year.
    (b) American wine. A permittee who produced and bottled or packed 
the wine, or a person other than the producer who repackaged the wine in 
containers of 5 liters or less may show the year of vintage upon the 
label if the person possesses appropriate records from the producer 
substantiating the year of vintage and the appellation of origin; and if 
the wine is made in compliance with the provisions of paragraph (a) of 
this section.
    (c) Imported wine. Imported wine may bear a vintage date if all of 
the following conditions are met:

[[Page 25]]

    (1) It is made in compliance with the provisions of paragraph (a) of 
this section;
    (2) It is bottled in containers of 5 liters or less prior to 
importation, or it is bottled in the United States from the original 
container of the product (showing a vintage date); and
    (3) The invoice is accompanied by, or the American bottler 
possesses, a certificate issued by a duly authorized official of the 
country of origin (if the country of origin authorizes the issuance of 
such certificates) certifying that the wine is of the vintage shown, 
that the laws of the country regulate the appearance of vintage dates 
upon the labels of wine produced for consumption within the country of 
origin, that the wine has been produced in conformity with those laws, 
and that the wine would be entitled to bear the vintage date if it had 
been sold within the country of origin.

[T.D. ATF-53, 43 FR 37676, Aug. 23, 1978, as amended by T.D. ATF-195, 50 
FR 763, Jan. 7, 1985; T.D. TTB-45, 71 FR 25752, May 2, 2006]



Sec.  4.28  Type designations of varietal significance.

    The following are type designations of varietal significance for 
American wine. These names may be used as type designations for American 
wines only if the wine is labeled with an appellation of origin as 
defined in Sec.  4.25a.
    (a) Muscadine. An American wine which derives at least 75 percent of 
its volume from Muscadinia rotundifolia grapes.
    (b) Muscatel. An American wine which derives its predominant taste, 
aroma, characteristics and at least 75 percent of its volume from any 
Muscat grape source, and which meets the requirements of Sec.  
4.21(a)(3).
    (c) Muscat or Moscato. An American wine which derives at least 75 
percent of its volume from any Muscat grape source.
    (d) Scuppernong. An American wine which derives at least 75 percent 
of its volume from bronze Muscadinia rotundifolia grapes.
    (e)(1) Gamay Beaujolais. An American wine which derives at least 75 
percent of its volume from Pinot noir grapes, Valdigui[eacute] grapes, 
or a combination of both.
    (2) For wines bottled on or after January 1, 1999, and prior to 
April 9, 2007, the name ``Gamay Beaujolais'' may be used as a type 
designation only if there appears in direct conjunction therewith, but 
on a separate line and separated by the required appellation of origin, 
the name(s) of the grape variety or varieties used to satisfy the 
requirements of paragraph (e)(1) of this section. Where two varietal 
names are listed, they shall appear on the same line, in order of 
predominance. The appellation of origin shall appear either on a 
separate line between the name ``Gamay Beaujolais'' and the grape 
variety name(s) or on the same line as the grape variety name(s) in a 
manner that qualifies the grape variety name(s). The following statement 
shall also appear on the brand or back label: ``Gamay Beaujolais is made 
from at least 75 percent Pinot noir and/or Valdigui[eacute] grapes.''
    (3) The designation ``Gamay Beaujolais'' may not be used on labels 
of American wines bottled on or after April 9, 2007.

[T.D. ATF-370, 61 FR 539, Jan. 8, 1996, as amended by T.D. ATF-388, 62 
FR 16490, Apr. 7, 1997; T.D. ATF-388a, 62 FR 33747, June 23, 1997]



                Subpart D_Labeling Requirements for Wine



Sec.  4.30  General.

    (a) Application. No person engaged in business as a producer, 
rectifier, blender, importer, or wholesaler, directly or indirectly or 
through an affiliate, shall sell or ship or deliver for sale or 
shipment, or otherwise introduce in interstate or foreign commerce, or 
receive therein, or remove from customs custody, any wine in containers 
unless such wine is packaged, and such packages are marked, branded, and 
labeled in conformity with this subpart. Wine domestically bottled or 
packed prior to Dec. 15, 1936, and imported wine entered in customs bond 
in containers prior to that date shall be regarded as being packaged, 
marked, branded and labeled in accordance with this subpart, if the 
labels on such wine (1) bear all the mandatory label information

[[Page 26]]

required by Sec.  4.32, even though such information is not set forth in 
the manner and form as required by Sec.  4.32 and other sections of this 
title referred to therein, and (2) bear no statements, designs, or 
devices which are false or misleading.
    (b) Alteration of labels. (1) It shall be unlawful for any person to 
alter, mutilate, destroy, obliterate or remove any mark, brand, or label 
upon wine held for sale in interstate or foreign commerce or after 
shipment therein, except as authorized by Federal law, or except as 
provided in paragraph (b)(2) of this section: Provided, That the 
appropriate TTB officer may, upon written application, permit additional 
labeling or relabeling of wine for purposes of compliance with the 
requirements of this part or of State law.
    (2) No application for permission to relabel wine need be made in 
any case where there is added to the container, after removal from 
customs custody or from the premises where bottled or packed, a label 
identifying the wholesale or retail distributor thereof, and containing 
no reference whatever to the characteristics of the product.

[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-425, 65 
FR 11891, Mar. 7, 2000; T.D. ATF-953, 68 FR 39455, July 2, 2003]

    Cross Reference: For customs warehouses and control of merchandise 
therein, see 19 CFR part 19.



Sec.  4.32  Mandatory label information.

    (a) There shall be stated on the brand label:
    (1) Brand name, in accordance with Sec.  4.33.
    (2) Class, type, or other designation, in accordance with Sec.  
4.34.
    (3) Alcohol content, in accordance with Sec.  4.36.
    (4) On blends consisting of American and foreign wines, if any 
reference is made to the presence of foreign wine, the exact percentage 
by volume.
    (b) There shall be stated on any label affixed to the container:
    (1) Name and address, in accordance with Sec.  4.35.
    (2) Net contents, in accordance with Sec.  4.37. If the net contents 
is a standard of fill other than an authorized metric standard of fill 
as prescribed in Sec.  4.73, the net contents statement shall appear on 
a label affixed to the front of the bottle.
    (c) There shall be stated on the brand label or on a back label a 
statement that the product contains FD&C Yellow No. 5, where that 
coloring material is used in a product bottled on or after October 6, 
1984.
    (d) [Reserved]
    (e) Declaration of sulfites. There shall be stated on a front label, 
back label, strip label or neck label, the statement ``Contains 
sulfites'' or ``Contains (a) sulfiting agent(s)'' or a statement 
identifying the specific sulfiting agent where sulfur dioxide or a 
sulfiting agent is detected at a level of 10 or more parts per million, 
measured as total sulfur dioxide. The provisions of this paragraph shall 
apply to:
    (1) Any certificate of label approval issued on or after January 9, 
1987;
    (2) Any wine bottled on or after July 9, 1987, regardless of the 
date of issuance of the certificate of label approval; and,
    (3) Any wine removed on or after January 9, 1988.

(Paragraph (e) approved by the Office of Management and Budget under 
Control Number 1512-0469)

[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-150, 48 
FR 45556, Oct. 6, 1983; T.D. ATF-195, 50 FR 763, Jan. 7, 1985; T.D. ATF-
220, 50 FR 51852, Dec. 20, 1985; T.D. ATF-236, 51 FR 34710, Sept. 30, 
1986; T.D. ATF-282, 54 FR 7162, Feb. 16, 1989; T.D. ATF-312, 56 FR 
31076, 31077, July 9, 1991; T.D. TTB-12, 69 FR 33573, June 16, 2004]



Sec.  4.32a  Voluntary disclosure of major food allergens.

    (a) Definitions. For purposes of this section the following terms 
have the meanings indicated.
    (1) Major food allergen. Major food allergen means any of the 
following:
    (i) Milk, egg, fish (for example, bass, flounder, or cod), 
Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts 
(for example, almonds, pecans, or walnuts), wheat, peanuts, and 
soybeans; or
    (ii) A food ingredient that contains protein derived from a food 
specified in paragraph (a)(1)(i) of this section, except:
    (A) Any highly refined oil derived from a food specified in 
paragraph

[[Page 27]]

(a)(1)(i) of this section and any ingredient derived from such highly 
refined oil; or
    (B) A food ingredient that is exempt from major food allergen 
labeling requirements pursuant to a petition for exemption approved by 
the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or 
pursuant to a notice submitted to FDA under 21 U.S.C. 343(w)(7), 
provided that the food ingredient meets the terms or conditions, if any, 
specified for that exemption.
    (2) Name of the food source from which each major food allergen is 
derived. Name of the food source from which each major food allergen is 
derived means the name of the food as listed in paragraph (a)(1)(i) of 
this section, except that:
    (i) In the case of a tree nut, it means the name of the specific 
type of nut (for example, almonds, pecans, or walnuts);
    (ii) In the case of Crustacean shellfish, it means the name of the 
species of Crustacean shellfish (for example, crab, lobster, or shrimp); 
and
    (iii) The names ``egg'' and ``peanuts'', as well as the names of the 
different types of tree nuts, may be expressed in either the singular or 
plural form, and the term ``soy'', soybean'', or ``soya'' may be used 
instead of ``soybeans''.
    (b) Voluntary labeling standards. Major food allergens (defined in 
paragraph (a)(1) of this section) used in the production of a wine may, 
on a voluntary basis, be declared on any label affixed to the container. 
However, if any one major food allergen is voluntarily declared, all 
major food allergens used in production of the wine, including major 
food allergens used as fining or processing agents, must be declared, 
except when covered by a petition for exemption approved by the 
appropriate TTB officer under Sec.  4.32b. The major food allergens 
declaration must consist of the word ``Contains'' followed by a colon 
and the name of the food source from which each major food allergen is 
derived (for example, ``Contains: egg'').
    (c) Cross reference. For mandatory labeling requirements applicable 
to wines containing FD&C Yellow No. 5 and sulfites, see Sec. Sec.  
4.32(c) and (e).

[T.D. TTB-53, 71 FR 42267, July 26, 2006]



Sec.  4.32b  Petitions for exemption from major food allergen labeling.

    (a) Submission of petition. Any person may petition the appropriate 
TTB officer to exempt a particular product or class of products from the 
labeling requirements of Sec.  4.32a. The burden is on the petitioner to 
provide scientific evidence (including the analytical method used to 
produce the evidence) that demonstrates that the finished product or 
class of products, as derived by the method specified in the petition, 
either:
    (1) Does not cause an allergic response that poses a risk to human 
health; or
    (2) Does not contain allergenic protein derived from one of the 
foods identified in Sec.  4.32a(a)(1)(i), even though a major food 
allergen was used in production.
    (b) Decision on petition. TTB will approve or deny a petition for 
exemption submitted under paragraph (a) of this section in writing 
within 180 days of receipt of the petition. If TTB does not provide a 
written response to the petitioner within that 180-day period, the 
petition will be deemed denied, unless an extension of time for decision 
is mutually agreed upon by the appropriate TTB officer and the 
petitioner. TTB may confer with the Food and Drug Administration (FDA) 
on petitions for exemption, as appropriate and as FDA resources permit. 
TTB may require the submission of product samples and other additional 
information in support of a petition; however, unless required by TTB, 
the submission of samples or additional information by the petitioner 
after submission of the petition will be treated as the withdrawal of 
the initial petition and the submission of a new petition. An approval 
or denial under this section will constitute a final agency action.
    (c) Resubmission of a petition. After a petition for exemption is 
denied under this section, the petitioner may resubmit the petition 
along with supporting materials for reconsideration at any time. TTB 
will treat this submission as a new petition for purposes of the time 
frames for decision set forth in paragraph (b) of this section.

[[Page 28]]

    (d) Availability of information--(1) General. TTB will promptly post 
to its public Web site, http://www.ttb.gov, all petitions received under 
this section as well as TTB's responses to those petitions. Any 
information submitted in support of the petition that is not posted to 
the TTB Web site will be available to the public pursuant to 5 U.S.C. 
552, except where a request for confidential treatment is granted under 
paragraph (d)(2) of this section.
    (2) Requests for confidential treatment of business information. A 
person who provides trade secrets or other commercial or financial 
information in connection with a petition for exemption under this 
section may request that TTB give confidential treatment to that 
information. A failure to request confidential treatment at the time the 
information in question is submitted to TTB will constitute a waiver of 
confidential treatment. A request for confidential treatment of 
information under this section must conform to the following standards:
    (i) The request must be in writing;
    (ii) The request must clearly identify the information to be kept 
confidential;
    (iii) The request must relate to information that constitutes trade 
secrets or other confidential commercial or financial information 
regarding the business transactions of an interested person, the 
disclosure of which would cause substantial harm to the competitive 
position of that person;
    (iv) The request must set forth the reasons why the information 
should not be disclosed, including the reasons the disclosure of the 
information would prejudice the competitive position of the interested 
person; and
    (v) The request must be supported by a signed statement by the 
interested person, or by an authorized officer or employee of that 
person, certifying that the information in question is a trade secret or 
other confidential commercial or financial information and that the 
information is not already in the public domain.

[T.D. TTB-53, 71 FR 42267, July 26, 2006]



Sec.  4.33  Brand names.

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



Sec.  4.34  Class and type.

    (a) The class of the wine shall be stated in conformity with subpart 
C of this part if the wine is defined therein, except that ``table'' 
(``light'') and ``dessert'' wines need not be designated as such. In the 
case of still grape wine there may appear, in lieu of the class 
designation, any varietal (grape type) designation, type designation of 
varietal significance, semigeneric geographic type designation, or 
geographic distinctive designation, to which the wine may be entitled. 
In the case of champagne, or crackling wines, the type designation 
``champagne'' or ``crackling wine'' (``petillant wine'', ``frizzante 
wine'') may appear in lieu of the class designation ``sparkling wine''. 
In the case of wine which has a total solids content of more than 17 
grams per 100 cubic centimeters the words ``extra sweet'', ``specially 
sweetened'', ``specially sweet'' or ``sweetened with

[[Page 29]]

excess sugar'' shall be stated as a part of the class and type 
designation. The last of these quoted phrases shall appear where 
required by part 24 of this chapter, on wines sweetened with sugar in 
excess of the maximum quantities specified in such regulations. If the 
class of the wine is not defined in subpart C, a truthful and adequate 
statement of composition shall appear upon the brand label of the 
product in lieu of a class designation. In addition to the mandatory 
designation for the wine, there may be stated a distinctive or fanciful 
name, or a designation in accordance with trade understanding. The 
statement of composition will not include any reference to a varietal 
(grape type) designation, type designation of varietal significance, 
semi-generic geographic type designation, or geographic distinctive 
designation. All parts of the designation of the wine, whether mandatory 
or optional, shall be in direct conjunction and in lettering 
substantially of the same size and kind.
    (b) An appellation of origin such as ``American,'' ``New York,'' 
``Napa Valley,'' or ``Chilean,'' disclosing the true place of origin of 
the wine, shall appear in direct conjunction with and in lettering 
substantially as conspicuous as the class and type designation if:
    (1) A varietal (grape type) designation is used under the provisions 
of Sec.  4.23;
    (2) A type designation of varietal significance is used under the 
provisions of Sec.  4.28;
    (3) A semi-generic type designation is employed as the class and 
type designation of the wine pursuant to Sec.  4.24(b);
    (4) A product name is qualified with the word ``Brand'' under the 
requirements of Sec.  4.39 (j); or
    (5) The wine is labeled with the year of harvest of the grapes, and 
otherwise conforms with the provisions of Sec.  4.27. The appellation of 
origin for vintage wine shall be other than a country.

[T.D. ATF-53, 43 FR 37677, Aug. 23, 1978; T.D. ATF-48, 44 FR 55839, 
Sept. 28, 1979, as amended by T.D. ATF-195, 50 FR 763, Jan. 7, 1985; 
T.D. ATF-229, 51 FR 20482, June 5, 1986; T.D. ATF-312, 56 FR 31077, July 
9, 1991; T.D. ATF-370, 61 FR 539, Jan. 8, 1996; T.D. ATF-431, 65 FR 
59724, Oct. 6, 2000]



Sec.  4.35  Name and address.

    (a) American wine--(1) Mandatory statement. A label on each 
container of American wine shall state either ``bottled by'' or ``packed 
by'' followed by the name of the bottler or packer and the address (in 
accordance with paragraph (c)) of the place where the wine was bottled 
or packed. Other words may also be stated in addition to the required 
words ``bottled by'' or ``packed by'' and the required name and address 
if the use of such words is in accordance with paragraph (a)(2) of this 
section.
    (2) Optional statements. (i) In addition to the statement required 
by paragraph (a)(1), the label may also state the name and address of 
any other person for whom the wine was bottled or packed, immediately 
preceded by the words ``bottled for'' or ``packed for'' or ``distributed 
by.''
    (ii) The words defined in paragraphs (a)(2)(iii)-(a)(2)(vi) may be 
used, in accordance with the definitions given, in addition to the name 
and address statement required by paragraph (a)(1). Use of these words 
may be conjoined, using the word ``and'', and with the words ``bottled 
by'' or ``packed by'' only if the same person performed the defined 
operation at the same address. More than one name is necessary if the 
defined operation was performed by a person other than the bottler or 
packer and more than one address statement is necessary if the defined 
operation was performed at a different address.
    (iii) Produced or Made means that the named winery:
    (A) Fermented not less than 75% of such wine at the stated address, 
or
    (B) Changed the class or type of the wine by addition of alcohol, 
brandy, flavors, colors, or artificial carbonation at the stated 
address, or
    (C) Produced sparkling wine by secondary fermentation at the stated 
address.
    (iv) Blended means that the named winery mixed the wine with other 
wines of the same class and type at the stated address.
    (v) Cellared, Vinted or Prepared means that the named winery, at the 
stated address, subjected the wine to cellar treatment in accordance 
with Sec.  4.22(c).

[[Page 30]]

    (b) Imported wine--(1) Mandatory statements. (i) A label on each 
container of imported wine shall state ``imported by'' or a similar 
appropriate phrase, followed immediately by the name of the importer, 
agent, sole distributor, or other person responsible for the 
importation, followed immediately by the address of the principal place 
of business in the United States of the named person.
    (ii) If the wine was bottled or packed in the United States, the 
label shall also state one of the following:
    (A) ``Bottled by'' or ``packed by'' followed by the name of the 
bottler or packer and the address (in accordance with paragraph (c)) of 
the place where the wine was bottled or packed; or
    (B) If the wine was bottled or packed for the person responsible for 
the importation, the words ``imported by and bottled (packed) in the 
United States for'' (or a similar appropriate phrase) followed by the 
name and address of the principal place of business in the United States 
of the person responsible for the importation; or
    (C) If the wine was bottled or packed by the person responsible for 
the importation, the words ``imported and bottled (packed) by'' followed 
by the name and address of the principal place of business in the United 
States of the person responsible for the importation.
    (iii) If the wine was blended, bottled or packed in a foreign 
country other than the country of origin, and the label identifies the 
country of origin, the label shall state ``blended by,'' ``bottled by,'' 
or ``packed by,'' or other appropriate statement, followed by the name 
of the blender, bottler or packer and the place where the wine was 
blended, bottled or packed.
    (2) Optional statements. In addition to the statements required by 
paragraph (b) (1), the label may also state the name and address of the 
principal place of business of the foreign producer. Other words, or 
their English-language equivalents, denoting winemaking operations may 
be used in accordance with the requirements of the country of origin, 
for wines sold within the country of origin.
    (c) Form of address. The ``place'' stated shall be the post office 
address shown on the basic permit or other qualifying document of the 
premises at which the operations took place; and there shall be shown 
the address for each operation which is designated on the label. An 
example of such use would be ``Produced at Gilroy, California, and 
bottled at San Mateo, California, by XYZ Winery,'' except that the 
street address may be omitted. No additional places or addresses shall 
be stated for the same person unless:
    (1) Such person is actively engaged in the conduct of an additional 
bona fide and actual alcoholic beverage business at such additional 
place or address, and
    (2) The label also contains in direct conjunction therewith, 
appropriate descriptive material indicating the function occurring at 
such additional place or address in connection with the particular 
product.
    (d) Trade or operating names. The trade or operating name of any 
person appearing upon any label shall be identical with a name appearing 
on the basic permit or other qualifying document.
    (e) The provisions of this section are optional until they become 
mandatory July 27, 1994.

[T.D. ATF-328, 57 FR 33114, July 27, 1992; 57 FR 37591, Aug. 19, 1992. 
Redesignated by T.D. ATF-953, 68 FR 39455, July 2, 2003]



Sec.  4.36  Alcoholic content.

    (a) Alcoholic content shall be stated in the case of wines 
containing more than 14 percent of alcohol by volume, and, in the case 
of wine containing 14 percent or less of alcohol by volume, either the 
type designation ``table'' wine (``light'' wine) or the alcoholic 
content shall be stated. Any statement of alcoholic content shall be 
made as prescribed in paragraph (b) of this section.
    (b) Alcoholic content shall be stated in terms of percentage of 
alcohol by volume, and not otherwise, as provided in either paragraph 
(b)(1) or (2) of this section:
    (1) ``Alcohol ---- % by volume,'' or similar appropriate phrase; 
Provided, that if the word ``alcohol'' and/or ``volume'' are 
abbreviated, they shall be shown as ``alc.'' (alc) and/or ``vol.'' 
(vol), respectively. Except as provided in paragraph (c) of this 
section, a tolerance of 1 percent, in the case of wines

[[Page 31]]

containing more than 14 percent of alcohol by volume, and of 1.5 
percent, in the case of wines containing 14 percent or less of alcohol 
by volume, will be permitted either above or below the stated 
percentage.
    (2) ``Alcohol ---- % to ---- % by volume,'' or similar appropriate 
phrase; Provided, that if the word ``alcohol'' and/or ``volume'' are 
abbreviated, they shall be shown as ``alc.'' (alc) and/or ``vol.'' 
(vol), respectively. Except as provided in paragraph (c) of this 
section, a range of not more than 2 percent, in the case of wines 
containing more than 14 percent of alcohol by volume, and of not more 
than 3 percent, in the case of wines containing 14 percent or less of 
alcohol by volume, will be permitted between the minimum and maximum 
percentages stated, and no tolerances will be permitted either below 
such minimum or above such maximum.
    (c) Regardless of the type of statement used and regardless of 
tolerances normally permitted in direct statements and ranges normally 
permitted in maximum and minimum statements, alcoholic content 
statements, whether required or optional, shall definitely and correctly 
indicate the class, type and taxable grade of the wine so labeled and 
nothing in this section shall be construed as authorizing the appearance 
upon the labels of any wine of an alcoholic content statement in terms 
of maximum and minimum percentages which overlaps a prescribed 
limitation on the alcoholic content of any class, type, or taxable grade 
of wine, or a direct statement of alcoholic content which indicates that 
the alcoholic content of the wine is within such a limitation when in 
fact it is not.

[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-275, 53 
FR 27046, July 18, 1988]



Sec.  4.37  Net contents.

    (a) Statement of net contents. The net contents of wine for which a 
standard of fill is prescribed in Sec.  4.73 shall be stated in the same 
manner and form as set forth in the standard of fill. The net content of 
wine for which no standard of fill is prescribed in Sec.  4.73 shall be 
stated in the metric system of measure as follows:
    (1) If more than one liter, net contents shall be stated in liters 
and in decimal portions of a liter accurate to the nearest one-hundredth 
of a liter.
    (2) If less than one liter, net contents shall be stated in 
milliliters (ml).
    (b) Statement of U.S. equivalent net contents. When net contents of 
wine are stated in metric measure, the equivalent volume in U.S. measure 
may also be shown. If shown, the U.S. equivalent volume will be shown as 
follows:
    (1) For the metric standards of fill: 3 liters (101 fl. oz.); 1.5 
liters (50.7 fl. oz.); 1 liter (33.8 fl. oz.); 750 ml (25.4 fl. oz.); 
500 ml (16.9 fl. oz.); 375 ml (12.7 fl. oz.); 187 ml (6.3 fl. oz.); 100 
ml (3.4 fl. oz.); and 50 ml (1.7 fl. oz.).
    (2) Equivalent volumes of less than 100 fluid ounces will be stated 
in fluid ounces only, accurate to the nearest one-tenth of a fluid 
ounce; for example, 700 ml (23.7 fl. oz.).
    (3) Equivalent volumes of 100 fluid ounces or more will be stated in 
fluid ounces only, accurate to the nearest whole fluid ounce; for 
example, 6 liters (203 fl. oz.).
    (c) Net contents marked in bottle. The net contents need not be 
stated on any label if the net contents are displayed by having the same 
blown, etched, sand-blasted, marked by underglaze coloring, or otherwise 
permanently marked by any method approved by the appropriate TTB 
officer, in the sides, front, or back of the bottle, in letters and 
figures in such manner as to be plainly legible under ordinary 
circumstances, and such statement is not obscured in any manner in whole 
or in part.
    (d) Tolerances. Statement of net contents shall indicate exactly the 
volume of wine within the container, except that the following 
tolerances shall be allowed:
    (1) Discrepancies due exclusively to errors in measuring which occur 
in filling conducted in compliance with good commercial practice.
    (2) Discrepancies due exclusively to differences in the capacity of 
containers, resulting solely from unavoidable difficulties in 
manufacturing such

[[Page 32]]

containers so as to be of uniform capacity: Provided, That no greater 
tolerance shall be allowed in case of containers which, because of their 
design, cannot be made of approximately uniform capacity than is allowed 
in case of containers which can be manufactured so as to be of 
approximately uniform capacity.
    (3) Discrepancies in measure due to differences in atmospheric 
conditions in various places and which unavoidably result from the 
ordinary and customary exposure of alcoholic beverages in containers to 
evaporation. The reasonableness to discrepancies under this paragraph 
shall be determined on the facts in each case.
    (e) Unreasonable shortages. Unreasonable shortages in certain of the 
containers in any shipment shall not be compensated by overages in other 
containers in the same shipment.

[T.D. ATF-12, 39 FR 45222, Dec. 31, 1974, as amended by T.D. ATF-49, 43 
FR 19848, May 9, 1978; T.D. ATF-76, 46 FR 1727, Jan. 7, 1981; T.D. ATF-
303, 55 FR 42713, Oct. 23, 1990]



Sec.  4.38  General requirements.

    (a) Legibility. All labels shall be so designed that all the 
statements thereon required by Sec. Sec.  4.30 through 4.39 are readily 
legible under ordinary conditions, and all such statement shall be on a 
contrasting background.
    (b) Size of type. (1) Containers of more than 187 milliliters. All 
mandatory information required on labels by this part, except the 
alcoholic content statement, shall be in script, type, or printing not 
smaller than 2 millimeters; except that if contained among other 
descriptive or explanatory information, the script, type, or printing of 
the mandatory information shall be of a size substantially more 
conspicuous than that of the descriptive or explanatory information.
    (2) Containers of 187 milliliters or less. All mandatory information 
required on labels by this part, except the alcoholic content statement, 
shall not be smaller than 1 millimeter, except that if contained among 
other descriptive or explanatory information, the script, type, or 
printing of the mandatory information shall be of a size substantially 
more conspicuous than that of the descriptive or explanatory 
information.
    (3) Alcoholic content statements shall not appear in script, type, 
or printing larger or more conspicuous than 3 millimeters nor smaller 
than 1 millimeter on labels of containers having a capacity of 5 liters 
or less and shall not be set off with a border or otherwise accentuated.
    (c) English language. All mandatory label information shall be 
stated on labels in the English language, except that the brand name, 
the place of production, and the name of the manufacturer, producer, 
blender, bottler, packer, or shipper appearing on the label need not be 
in the English language if the words ``product of'' immediately precede 
the name of the country of origin stated in accordance with customs 
requirements. Additional statements in foreign languages may be made on 
labels, if they do not in any way conflict with, or contradict the 
requirements of Sec. Sec.  4.30 through 4.39.
    (d) Location of label. Labels shall not obscure Government stamps 
nor be obscured thereby.
    (e) Labels firmly affixed. All labels shall be affixed to containers 
of wine in such manner that they cannot be removed without thorough 
application of water or other solvents.
    (f) Additional information on labels. Labels may contain information 
other than the mandatory label information required by Sec. Sec.  4.30 
through 4.39, if such information complies with the requirements of such 
sections and does not conflict with, nor in any manner qualify 
statements required by this part. In addition, information which is 
truthful, accurate, and specific, and which is neither disparaging nor 
misleading may appear on wine labels.
    (g) Representations as to materials. If any representation (other 
than representations or information required by Sec. Sec.  4.30 through 
4.39 or percentage statements required or permitted by this part) is 
made as to the presence, excellence, or other characteristic of any 
ingredient in any wine, or used in its production, the label containing 
such representation shall state, in print, type, or script, 
substantially as conspicuous as such representation,

[[Page 33]]

the name and amount in percent by volume of each such ingredient.
    (h) Statement of contents of containers. Upon request of the 
appropriate TTB officer, there shall be submitted a full and accurate 
statement of the contents of the containers to which labels are to be or 
have been affixed.

[T.D. ATF-53, 43 FR 37677, Aug. 23, 1978, as amended by T.D. ATF-66, 45 
FR 40544, June 13, 1980; T.D. ATF-94, 46 FR 55095, Nov. 6, 1981; T.D. 
ATF-249, 52 FR 5955, Feb. 27, 1987; T.D. ATF-275, 53 FR 27046, July 18, 
1988; T.D. ATF-312, 56 FR 31077, July 9, 1991]



Sec.  4.38a  Bottle cartons, booklets and leaflets.

    (a) General. An individual covering, carton, or other container of 
the bottle used for sale at retail (other than a shipping container), or 
any written, printed, graphic, or other matter accompanying the bottle 
to the consumer buyer shall not contain any statement, design, device, 
or graphic, pictorial, or emblematic representation that is prohibited 
by Sec. Sec.  4.30 through 4.39 on labels.
    (b) Sealed cartons. If bottles are enclosed in sealed opaque 
coverings, cartons, or other containers used for sale at retail (other 
than a shipping container), such coverings, cartons, or other containers 
must bear all mandatory label information.
    (c) Other cartons. (1) If an individual covering, carton, or other 
container of the bottle used for sale at retail (other than a shipping 
container) is so designed that the bottle is readily removable, it may 
display any information which is not in conflict with the label on the 
bottle contained therein.
    (2) Cartons displaying brand names and/or designations must display 
such names and designations in their entirety--brand names required to 
be modified, e.g. by ``Brand'' or ``Product of U.S.A.'', must also 
display such modification.
    (3) Wines for which a truthful and adequate statement of composition 
is required must display such statement.

[T.D. ATF-36, 41 FR 47425, Oct. 29, 1976]



Sec.  4.39  Prohibited practices.

    (a) Statements on labels. Containers of wine, or any label on such 
containers, or any individual covering, carton, or other wrapper of such 
container, or any written, printed, graphic, or other matter 
accompanying such container to the consumer shall not contain:
    (1) Any statement that is false or untrue in any particular, or 
that, irrespective of falsity, directly, or by ambiguity, omission, or 
inference, or by the addition of irrelevant, scientific or technical 
matter, tends to create a misleading impression.
    (2) Any statement that is disparaging of a competitor's products.
    (3) Any statement, design, device, or representation which is 
obscene or indecent.
    (4) Any statement, design, device, or representation of or relating 
to analyses, standards, or tests, irrespective of falsity, which the 
appropriate TTB officer finds to be likely to mislead the consumer.
    (5) Any statement, design, device or representation of or relating 
to any guarantee, irrespective of falsity, which the appropriate TTB 
officer finds to be likely to mislead the consumer. Money-back 
guarantees are not prohibited.
    (6) A trade or brand name that is the name of any living individual 
of public prominence, or existing private or public organization, or is 
a name that is in simulation or is an abbreviation thereof, or any 
graphic, pictorial, or emblematic representation of any such individual 
or organization, if the use of such name or representation is likely 
falsely to lead the consumer to believe that the product has been 
endorsed, made, or used by, or produced for, or under the supervision 
of, or in accordance with the specifications of, such individual or 
organization; Provided, That this paragraph shall not apply to the use 
of the name of any person engaged in business as a producer, blender, 
rectifier, importer, wholesaler, retailer, bottler, or warehouseman of 
wine, nor to the use by any person of a trade or brand name that is the 
name of any living individual of public prominence or existing private 
or public organization, provided such trade or brand name was used by 
him or his predecessors in interest prior to August 29, 1935.
    (7) Any statement, design, device, or representation (other than a 
statement of alcohol content in conformity with

[[Page 34]]

Sec.  4.36), which tends to create the impression that a wine:
    (i) Contains distilled spirits;
    (ii) Is comparable to a distilled spirit; or
    (iii) Has intoxicating qualities.

However, if a statement of composition is required to appear as the 
designation of a product not defined in these regulations, such 
statement of composition may include a reference to the type of 
distilled spirits contained therein.
    (8) Any coined word or name in the brand name or class and type 
designation which simulates, imitates, or which tends to create the 
impression that the wine so labeled is entitled to bear, any class, 
type, or permitted designation recognized by the regulations in this 
part unless such wine conforms to the requirements prescribed with 
respect to such designation and is in fact so designated on its labels.
    (9) Any word in the brand name or class and type designation which 
is the name of a distilled spirits product or which simulates, imitates, 
or created the impression that the wine so labeled is, or is similar to, 
any product customarily made with a distilled spirits base. Examples of 
such words are: ``Manhattan,'' ``Martini,'' and ``Daquiri'' in a class 
and type designation or brand name of a wine cocktail; ``Cuba Libre,'' 
``Zombie,'' and ``Collins'' in a class and type designation or brand 
name of a wine specialty or wine highball; ``creme,'' ``cream,'' ``de,'' 
or ``of'' when used in conjunction with ``menthe,'' ``mint,'' or 
``cacao'' in a class and type designation or a brand name of a mint or 
chocolate flavored wine specialty.
    (b) Statement of age. No statement of age or representation relative 
to age (including words or devices in any brand name or mark) shall be 
made, except (1) for vintage wine, in accordance with the provisions of 
Sec.  4.27; (2) references relating to methods of wine production 
involving storage or aging in accordance with Sec.  4.38(f); or (3) use 
of the word ``old'' as part of a brand name.
    (c) Statement of bottling dates. The statement of any bottling date 
shall not be deemed to be a representation relative to age, if such 
statement appears in lettering not greater than 8-point Gothic caps and 
in the following form: ``Bottled in ----'' (inserting the year in which 
the wine was bottled).
    (d) Statement of miscellaneous dates. No date, except as provided in 
paragraphs (b) and (c) of this section with respect to statement of 
vintage year and bottling date, shall be stated on any label unless in 
addition thereto and in direct conjunction therewith in the same size 
and kind of printing, there shall be stated an explanation of the 
significance thereof such as ``established'' or ``founded in''. If any 
such date refers to the date of establishment of any business or brand 
name, it shall not be stated, in the case of containers of a capacity of 
5 liters or less, in any script, type, or printing larger than 2 
millimeters, and shall be stated in direct conjunction with the name of 
the person, company, or brand name to which it refers if the appropriate 
TTB officer finds that this is necessary in order to prevent confusion 
as to the person, company, or brand name to which the establishment date 
is applicable.
    (e) Simulation of Government stamps. (1) No labels shall be of such 
design as to resemble or simulate a stamp of the United States 
Government or any State or foreign government. No label, other than 
stamps authorized or required by the United States Government or any 
State or foreign government, shall state or indicate that the wine 
contained in the labeled container is produced, blended, bottled, 
packed, or sold under, or in accordance with, any municipal, State or 
Federal Government authorization, law, or regulation, unless such 
statement is required or specifically authorized by Federal, State or 
municipal law or regulation, or is required or specifically authorized 
by the laws or regulations of a foreign country. If the municipal, 
State, or Federal Government permit number is stated upon a label, it 
shall not be accompanied by any additional statement relating thereto.
    (2) Bonded wine cellar and bonded winery numbers may be stated but 
only in direct conjunction with the name and address of the person 
operating such wine cellar or winery. Statement of bonded wine cellar or 
winery numbers may be made in the

[[Page 35]]

following form: ``Bonded Wine Cellar No. ----'', ``Bonded Winery No. --
--'', ``B. W. C. No. ----'', ``B. W. No. ----''. No additional reference 
thereto shall be made, nor shall any use be made of such statement that 
may convey the impression that the wine has been made or matured under 
Government supervision or in accordance with Government specifications 
or standards.
    (3) If imported wines are covered by a certificate of origin and/or 
a certificate of vintage date issued by a duly authorized official of 
the appropriate foreign government, the label, except where prohibited 
by the foreign government, may refer to such certificate or the fact of 
such certification, but shall not be accompanied by any additional 
statements relating thereto. The reference to such certificate or 
certification shall be substantially in the following form:

    This product accompanied at the time of the importation by a 
certificate issued by the
________________________________________________________________________

                          (Name of government)

    government indicating that the product is
________________________________________________________________________

                 (Class and type as stated on the label)

    and (if label bears a statement of vintage date) that the wine is of 
the vintage of
________________________________________________________________________

                  (Year of vintage stated on the label)

    (f) Use of the word ``Importer'', or similar words. The word 
Importer, or similar words, shall not be stated on labels on containers 
of domestic wine except as part of the bona fide name of a permittee for 
or by whom, or of a retailer for whom, such wine is bottled, packed or 
distributed: Provided, That in all cases where such words are used as 
part of such name, there shall be stated on the same label the words 
``Product of the United States'', or similar words to negative any 
impression that the product is imported, and such negative statement 
shall appear in the same size and kind of printing as such name.
    (g) Flags, seals, coats of arms, crests, and other insignia. Labels 
shall not contain, in the brand name or otherwise, any statement, 
design, device, or pictorial representation which the appropriate TTB 
officer finds relates to, or is capable of being construed as relating 
to, the armed forces of the United States, or the American flag, or any 
emblem, seal, insignia, or decoration associated with such flag or armed 
forces; nor shall any label contain any statement, design, device, or 
pictorial representation of or concerning any flag, seal, coat of arms, 
crest or other insignia, likely to mislead the consumer to believe that 
the product has been endorsed, made, or used by, or produced for, or 
under the supervision of, or in accordance with the specifications of 
the government, organization, family, or individual with whom such flag, 
seal, coat of arms, crest, or insignia is associated.
    (h) Health-related statements--(1) Definitions. When used in this 
paragraph (h), terms are defined as follows:
    (i) Health-related statement means any statement related to health 
(other than the warning statement required by Sec.  16.21 of this 
chapter) and includes statements of a curative or therapeutic nature 
that, expressly or by implication, suggest a relationship between the 
consumption of alcohol, wine, or any substance found within the wine, 
and health benefits or effects on health. The term includes both 
specific health claims and general references to alleged health benefits 
or effects on health associated with the consumption of alcohol, wine, 
or any substance found within the wine, as well as health-related 
directional statements. The term also includes statements and claims 
that imply that a physical or psychological sensation results from 
consuming the wine, as well as statements and claims of nutritional 
value (e.g., statements of vitamin content). Statements concerning 
caloric, carbohydrate, protein, and fat content do not constitute 
nutritional claims about the product.
    (ii) Specific health claim is a type of health-related statement 
that, expressly or by implication, characterizes the relationship of the 
wine, alcohol, or any substance found within the wine, to a disease or 
health-related condition. Implied specific health claims include 
statements, symbols, vignettes, or other forms of communication that 
suggest, within the context in which

[[Page 36]]

they are presented, that a relationship exists between wine, alcohol, or 
any substance found within the wine, and a disease or health-related 
condition.
    (iii) Health-related directional statement is a type of health-
related statement that directs or refers consumers to a third party or 
other source for information regarding the effects on health of wine or 
alcohol consumption.
    (2) Rules for labeling--(i) Health-related statements. In general, 
labels may not contain any health-related statement that is untrue in 
any particular or tends to create a misleading impression as to the 
effects on health of alcohol consumption. TTB will evaluate such 
statements on a case-by-case basis and may require as part of the 
health-related statement a disclaimer or some other qualifying statement 
to dispel any misleading impression conveyed by the health-related 
statement.
    (ii) Specific health claims. (A) TTB will consult with the Food and 
Drug Administration (FDA), as needed, on the use of a specific health 
claim on a wine label. If FDA determines that the use of such a labeling 
claim is a drug claim that is not in compliance with the requirements of 
the Federal Food, Drug, and Cosmetic Act, TTB will not approve the use 
of that specific health claim on a wine label.
    (B) TTB will approve the use of a specific health claim on a wine 
label only if the claim is truthful and adequately substantiated by 
scientific or medical evidence; sufficiently detailed and qualified with 
respect to the categories of individuals to whom the claim applies; 
adequately discloses the health risks associated with both moderate and 
heavier levels of alcohol consumption; and outlines the categories of 
individuals for whom any levels of alcohol consumption may cause health 
risks. This information must appear as part of the specific health 
claim.
    (iii) Health-related directional statements. A statement that 
directs consumers to a third party or other source for information 
regarding the effects on health of wine or alcohol consumption is 
presumed misleading unless it--
    (A) Directs consumers in a neutral or other non-misleading manner to 
a third party or other source for balanced information regarding the 
effects on health of wine or alcohol consumption; and
    (B)(1) Includes as part of the health-related directional statement 
the following disclaimer: ``This statement should not encourage you to 
drink or to increase your alcohol consumption for health reasons;'' or
    (2) Includes as part of the health-related directional statement 
some other qualifying statement that the appropriate TTB officer finds 
is sufficient to dispel any misleading impression conveyed by the 
health-related directional statement.
    (i) Geographic brand names. (1) Except as provided in subparagraph 
2, a brand name of viticultural significance may not be used unless the 
wine meets the appellation of origin requirements for the geographic 
area named.
    (2) For brand names used in existing certificates of label approval 
issued prior to July 7, 1986:
    (i) The wine shall meet the appellation of origin requirements for 
the geographic area named; or
    (ii) The wine shall be labeled with an appellation of origin in 
accordance with Sec.  4.34(b) as to location and size of type of either:
    (A) A county or a viticultural area, if the brand name bears the 
name of a geographic area smaller than a state, or;
    (B) A state, county or a viticultural area, if the brand name bears 
a state name; or
    (iii) The wine shall be labeled with some other statement which the 
appropriate TTB officer finds to be sufficient to dispel the impression 
that the geographic area suggested by the brand name is indicative of 
the origin of the wine.
    (3) A name has viticultural significance when it is the name of a 
state or county (or the foreign equivalents), when approved as a 
viticultural area in part 9 of this chapter, or by a foreign government, 
or when found to have viticultural significance by the appropriate TTB 
officer.
    (j) Product names of geographical significance (not mandatory before 
January 1, 1983). The use of product names with specific geographical 
significance is prohibited unless the appropriate TTB officer finds that 
because of their long usage, such names are recognized by

[[Page 37]]

consumers as fanciful product names and not representations as to 
origin. In such cases the product names shall be qualified with the word 
``brand'' immediately following the product name, in the same size of 
type, and as conspicuous as the product name itself. In addition, the 
label shall bear an appellation of origin under the provisions of Sec.  
4.34(b), and, if required by the appropriate TTB officer, a statement 
disclaiming the geographical reference as a representation as to the 
origin of the wine.
    (k) Other indications of origin. Other statements, designs, devices 
or representations which indicate or infer an origin other than the true 
place of origin of the wine are prohibited.
    (l) Foreign terms. Foreign terms which: (1) Describe a particular 
condition of the grapes at the time of harvest (such as ``Auslese,'' 
``Eiswein,'' and ``Trockenbeerenauslese''); or (2) denote quality under 
foreign law (such as ``Qualitatswein'' and ``Kabinett'') may not be used 
on the labels of American wine.
    (m) Use of a vineyard, orchard, farm or ranch name. When used in a 
brand name, a vineyard, orchard, farm or ranch name having geographical 
or viticultural significance is subject to the requirements of 
Sec. Sec.  4.33(b) and 4.39(i) of this part. Additionally, the name of a 
vineyard, orchard, farm or ranch shall not be used on a wine label, 
unless 95 percent of the wine in the container was produced from primary 
winemaking material grown on the named vineyard, orchard, farm or ranch.
    (n) Use of a varietal name, type designation of varietal 
significance, semi-generic name, or geographic distinctive designation. 
Labels that contain in the brand name, product name, or distinctive or 
fanciful name, any varietal (grape type) designation, type designation 
of varietal significance, semi-generic geographic type designation, or 
geographic distinctive designation, are misleading unless the wine is 
made in accordance with the standards prescribed in classes 1, 2, or 3 
of Sec.  4.21. Any other use of such a designation on other than a class 
1, 2, or 3 wine is presumed misleading.

[T.D. 6521, 25 FR 13841, Dec. 29, 1960]

    Editorial Note: For Federal Register citations affecting Sec.  4.39, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



   Subpart E_Requirements for Withdrawal of Wine From Customs Custody



Sec.  4.40  Label approval and release.

    (a) Certificate of label approval. No imported beverage wine in 
containers shall be released from U.S. Customs custody for consumption 
unless there is deposited with the appropriate Customs officer at the 
port of entry the original or a photostatic copy of an approved 
certificate of label approval, TTB Form 5100.31.
    (b) If the original or photostatic copy of TTB Form 5100.31 has been 
approved, the brand or lot of imported wine bearing labels identical 
with those shown thereon may be released from U.S. Customs custody.
    (c) Relabeling. Imported wine in U.S. Customs custody which is not 
labeled in conformity with certificates of label approval issued by the 
appropriate TTB officer must be relabeled prior to release under the 
supervision and direction of Customs officers of the port at which the 
wine is located.
    (d) Cross reference. For procedures regarding the issuance, denial, 
and revocation of certificates of label approval, as well as appeal 
procedures, see part 13 of this chapter.

[T.D. ATF-66, 45 FR 40546, June 13, 1980, as amended by T.D. ATF-94, 46 
FR 55095, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. 
ATF-359, 59 FR 42160, Aug. 17, 1994; T.D. ATF-406, 64 FR 2128, Jan. 13, 
1999]



Sec.  4.45  Certificates of origin, identity and proper cellar treatment.

    (a) Origin and identity. Imported wine shall not be released from 
customs custody for consumption unless the invoice is accompanied by a 
certificate of origin issued by a duly authorized official of the 
appropriate foreign government, if the issuance of such certificates 
with respect to such wine has been authorized by the foreign government 
concerned, certifying as to the identity of the wine and that the wine 
has been produced in compliance with

[[Page 38]]

the laws of the respective foreign government regulating the production 
of such wine for home consumption.
    (b) Certification of proper cellar treatment of natural wine--(1) 
General. An importer of wine may be required to have in his or her 
possession at the time of release of the wine from customs custody a 
certification or may have to comply with other conditions prescribed in 
Sec.  27.140 of this chapter regarding proper cellar treatment. If 
imported wine requires a certification under Sec.  27.140, the importer 
must provide a copy of that certification to TTB as follows:
    (i) The importer must attach a copy of the certification to the 
application for a certificate of label approval for the wine in question 
submitted under Sec.  13.21 of this chapter; or
    (ii) If a certification for the wine in question was not available 
when the importer submitted the application for label approval, the 
importer must submit a copy of the certification to the appropriate TTB 
officer prior to release from customs custody of the first shipment of 
the wine.
    (2) Validity of certification. A certification submitted under 
paragraph (b)(1) of this section is valid as long as the wine is of the 
same brand and class or type, was made by the same producer, was 
subjected to the same cellar treatment, and conforms to the statements 
made on the certification. Accordingly, if the cellar treatment of the 
wine changes and a new certification under Sec.  27.140 is required, an 
importer is required to submit a new certification for the wine even 
though it is subject to the same label approval.
    (3) Use of certification. TTB may use the information from a 
certification for purposes of verifying the appropriate class and type 
designation of the wine under the labeling provisions of this part. TTB 
will make certifications submitted under paragraph (b)(1) of this 
section available to the public on the TTB Internet Web site at 
www.ttb.gov.

[ T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. TTB-31, 70 
FR 49482, Aug. 24, 2005]



Sec.  4.46  Certificate of nonstandard fill.

    A person may import wine in containers not conforming to the metric 
standards of fill prescribed at Sec.  4.73 if the wine is:
    (a) Accompanied by a statement signed by a duly authorized official 
of the appropriate foreign country, stating that the wine was bottled or 
packed before January 1, 1979;
    (b) Being withdrawn from a Customs bonded warehouse into which it 
was entered before January 1, 1979; or
    (c) Exempt from the standard of fill requirements as provided by 
Sec.  4.70(b)(1) or (2).

[T.D. ATF-76, 46 FR 1727, Jan. 7, 1981]



   Subpart F_Requirements for Approval of Labels of Wine Domestically 
                            Bottled or Packed



Sec.  4.50  Certificates of label approval.

    (a) No person shall bottle or pack wine, other than wine bottled or 
packed in U.S. Customs custody, or remove such wine from the plant where 
bottled or packed, unless an approved certificate of label approval, TTB 
Form 5100.31, is issued by the appropriate TTB officer.
    (b) Any bottler or packer of wine shall be exempt from the 
requirements of this section if upon application the bottler or packer 
shows to the satisfaction of the appropriate TTB officer that the wine 
to be bottled or packed is not to be sold, offered for sale, or shipped 
or delivered for shipment, or otherwise introduced in interstate or 
foreign commerce. Application for exemption shall be made on TTB Form 
5100.31 in accordance with instructions on the form. If the application 
is approved, a certificate of exemption will be issued on the same form.
    (c) Cross reference. For procedures regarding the issuance, denial, 
and revocation of certificates of label approval, and certificates of 
exemption from label approval, as well as appeal procedures, see part 13 
of this chapter.

[T.D. ATF-66, 45 FR 40546, June 13, 1980, as amended by T.D. ATF-94, 46 
FR 55095, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. 
ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-406, 64 FR 2128, Jan. 13, 
1999; T.D. ATF-425, 65 FR 11891, Mar. 7, 2000]

[[Page 39]]



Sec.  4.51  Exhibiting certificates to Government officials.

    Any bottler or packer holding an original or duplicate original of a 
certificate of label approval or a certificate of exemption shall, upon 
demand, exhibit such certificate to a duly authorized representative of 
the United States Government.



Sec.  4.52  Photoprints.

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



                      Subpart G_Advertising of Wine



Sec.  4.60  Application.

    No person engaged in the business as a producer, rectifier, blender, 
importer, or wholesaler of wine, directly or indirectly or through an 
affiliate, shall publish or disseminate or cause to be published or 
disseminated by radio or television broadcast, or in any newspaper, 
periodical, or any publication, by any sign or outdoor advertisement, or 
any other printed or graphic matter, any advertisement of wine, if such 
advertising is in, or is calculated to induce sale in, interstate or 
foreign commerce, or is disseminated by mail, unless such advertisement 
is in conformity with Sec. Sec.  4.60-4.65 of this part. Provided, that 
such sections shall not apply to outdoor advertising in place on 
September 7, 1984, but shall apply upon replacement, restoration, or 
renovation of any such advertising; and provided further, that such 
sections shall not apply to a retailer or the publisher of any 
newspaper, periodical, or other publication, or radio or television 
broadcast, unless such retailer or publisher or radio or television 
broadcaster is engaged in business as a producer, rectifier, blender, 
importer, or wholesaler of wine, directly or indirectly, or through an 
affiliate.

[T.D. ATF-180, 49 FR 31672, Aug. 8, 1984]



Sec.  4.61  Definitions.

    As used in Sec. Sec.  4.60 through 4.65 of this part, the term 
advertisement includes any written or verbal statement, illustration, or 
depiction which is in, or calculated to induce sales in, interstate or 
foreign commerce, or is disseminated by mail, whether it appears in a 
newspaper, magazine, trade booklet, menu, wine card, leaflet, circular, 
mailer, book insert, catalog, promotional material, sales pamphlet, or 
any written, printed, graphic, or other matter accompanying the 
container, representations made on cases, billboard, sign, or othe 
outdoor display, public transit card, other periodical literature, 
publication, or in a radio or television broadcast, or in any other 
media; except that such term shall not include:
    (a) Any label affixed to any container of wine, or any individual 
covering, carton, or other wrapper of such container which constitute a 
part of the labeling under provisions of Sec. Sec.  4.30-4.39 of this 
part.
    (b) Any editorial or other reading material (i.e., news release) in 
any periodical or publication or newspaper for the publication of which 
no money or valuable consideration is paid or promised, directly or 
indirectly, by any permittee, and which is not written by or at the 
direction of the permittee.

[T.D. ATF-180, 49 FR 31672, Aug. 8, 1984]



Sec.  4.62  Mandatory statements.

    (a) Responsible advertiser. The advertisement shall state the name 
and address of the permittee responsible for its publication or 
broadcast. Street number and name may be omitted in the address.
    (b) Class, type, and distinctive designation. The advertisement 
shall contain a conspicuous statement of the class, type, or distinctive 
designation to

[[Page 40]]

which the product belongs, corresponding with the statement of class, 
type, or distinctive designation which is required to appear on the 
label of the product.
    (c) Exception. (1) If an advertisement refers to a general wine line 
or all of the wine products of one company, whether by the company name 
or by the brand name common to all the wine in the line, the only 
mandatory information necessary is the name and address of the 
responsible advertiser. This exception does not apply where only one 
type of wine is marketed under the specific brand name advertised.
    (2) On consumer specialty items, the only information necessary is 
the company name or brand name of the product.

[T.D. 6521, 25 FR 13835, Dec. 29, 1960, as amended by T.D. ATF-180, 49 
FR 31672, Aug. 8, 1984]



Sec.  4.63  Legibility of mandatory information.

    (a) Statements required under Sec. Sec.  4.60 through 4.65 of this 
part to appear in any written, printed, or graphic advertisement shall 
be in lettering or type size sufficient to be conspicuous and readily 
legible.
    (b) In the case of signs, billboards, and displays the name and 
address of the permittee responsible for the advertisement may appear in 
type size of lettering smaller than the other mandatory information, 
provided such information can be ascertained upon closer examination of 
the sign or billboard.
    (c) Mandatory information shall be so stated as to be clearly a part 
of the advertisement and shall not be separated in any manner from the 
remainder of the advertisement.
    (d) Mandatory information for two or more products shall not be 
stated unless clearly separated.
    (e) Mandatory information shall be so stated in both the print and 
audio-visual media that it will be readily apparent to the persons 
viewing the advertisement.

[T.D. ATF-180, 49 FR 31672, Aug. 8, 1984]



Sec.  4.64  Prohibited practices.

    (a) Restrictions. The advertisement of wine shall not contain:
    (1) Any statement that is false or untrue in any material 
particular, or that, irrespective of falsity, directly, or by ambiguity, 
omission, or inference, or by the addition of irrelevant, scientific or 
technical matter tends to create a misleading impression.
    (2) Any statement that is disparaging of a competitor's products.
    (3) Any statement, design, device, or representation which is 
obscene or indecent.
    (4) Any statement, design, device, or representation of or relating 
to analyses, standards, or tests, irrespective of falsity, which the 
appropriate TTB officer finds to be likely to mislead the consumer.
    (5) Any statement, design, device, or representation of or relating 
to any guarantee, irrespective of falsity, which the appropriate TTB 
officer finds to be likely to mislead the consumer. Money-back 
guarantees are not prohibited.
    (6) Any statement that the wine is produced, blended, bottled, 
packed, or sold under, or in accordance with, any municipal, State, or 
Federal Government authorization, law, or regulations; and if a 
municipal, State, or Federal permit number is stated, the permit number 
shall not be accompanied by any additional statement relating thereto.
    (7) Any statement of bonded winecellar and bonded winery numbers 
unless stated in direct conjunction with the name and address of the 
person operating such winery or storeroom. Statement of bonded 
winecellar and bonded winery numbers may be made in the following form: 
``Bonded Winecellar No. ----,'' ``Bonded Winery No. ----,'' ``B. W. C. 
No. ----,'' ``B. W. No. ----.'' No additional reference thereto shall be 
made, nor shall any use be made of such statement that may convey the 
impression that the wine has been made or matured under Government 
supervision or in accordance with Government specifications or 
standards.
    (8) Any statement, design, device, or representation which relates 
to alcohol

[[Page 41]]

content or which tends to create the impression that a wine:
    (i) Contains distilled spirits; or
    (ii) Is comparable to a distilled spirit; or
    (iii) Has intoxicating qualities.

However, if a statement of composition is required to appear as the 
designation of a product not defined in these regulations, such 
statement of composition may include a reference to the type of 
distilled spirits contained therein. Further, an approved wine label, 
which bears the statement of alcohol content may be depicted in any 
advertising media, or an actual wine bottle showing the approved label 
bearing the statement of alcoholic content may be displayed in any 
advertising media.
    (9) Any word in the brand name or class and type designation which 
is the name of a distilled spirits product or which simulates, imitates, 
or creates the impression that the wine so labeled is, or is similar to, 
any product customarily made with a distilled spirits base.
    (b) Statements inconsistent with labeling. (1) Advertisements shall 
not contain any statement concerning a brand or lot of wine that is 
inconsistent with any statement on the labeling thereof.
    (2) Any label depicted on a bottle in an advertisement shall be a 
reproduction of an approved label.
    (c) Statement of age. No statement of age or representation relative 
to age (including words or devices in any brand name or mark) shall be 
made, except (1) for vintage wine, in accordance with the provisions of 
Sec.  4.27; (2) references in accordance with Sec.  4.38(f); or (3) use 
of the word ``old'' as part of a brand name.
    (d) Statement of bottling dates. The statement of any bottling date 
shall not be deemed to be a representation relative to age, if such 
statement appears without undue emphasis in the following form: 
``Bottled in ----'' (inserting the year in which the wine was bottled).
    (e) Statement of miscellaneous dates. No date, except as provided in 
paragraphs (c) and (d) of this section, with respect to statement of 
vintage year and bottling date, shall be stated unless, in addition 
thereto, and in direct conjunction therewith, in the same size and kind 
of printing there shall be stated an explanation of the significance of 
such date: Provided, That if any date refers to the date of 
establishment of any business, such date shall be stated without undue 
emphasis and in direct conjunction with the name of the person to whom 
it refers.
    (f) Flags, seals, coats of arms, crests, and other insignia. No 
advertisement shall contain any statement, design, device, or pictorial 
representation of or relating to, or capable of being construed as 
relating to, the armed forces of the United States, or of the American 
flag, or of any emblem, seal, insignia, or decoration associated with 
such flag or armed forces; nor shall any advertisement contain any 
statement, device, design, or pictorial representation of or concerning 
any flag, seal, coat of arms, crest, or other insignia likely to mislead 
the consumer to believe that the product has been endorsed, made, or 
used by, or produced for, or under the supervision of, or in accordance 
with the specifications of the government, organization, family, or 
individual with whom such flag, seal, coat of arms, crests, or insignia 
is associated.
    (g) Statements indicative of origin. No statement, design, device, 
or representation which tends to create the impression that the wine 
originated in a particular place or region, shall appear in any 
advertisement unless the label of the advertised product bears an 
appellation of origin, and such appellation of origin appears in the 
advertisement in direct conjunction with the class and type designation.
    (h) Use of the word ``importer'' or similar words. The word importer 
or similar words shall not appear in advertisements of domestic wine 
except as part of the bona fide name of the permittee by or for whom, or 
of a retailer for whom, such wine is bottled, packed or distributed: 
Provided, That in all cases where such words are used as part of such 
name, there shall be stated the words ``Product of the United States'' 
or similar words to negate any impression that the product is imported, 
and such negating statements shall appear in the same size and kind of 
printing as such name.

[[Page 42]]

    (i) Health-related statements--(1) Definitions. When used in this 
paragraph (i), terms are defined as follows:
    (i) Health-related statement means any statement related to health 
and includes statements of a curative or therapeutic nature that, 
expressly or by implication, suggest a relationship between the 
consumption of alcohol, wine, or any substance found within the wine, 
and health benefits or effects on health. The term includes both 
specific health claims and general references to alleged health benefits 
or effects on health associated with the consumption of alcohol, wine, 
or any substance found within the wine, as well as health-related 
directional statements. The term also includes statements and claims 
that imply that a physical or psychological sensation results from 
consuming the wine, as well as statements and claims of nutritional 
value (e.g., statements of vitamin content). Statements concerning 
caloric, carbohydrate, protein, and fat content do not constitute 
nutritional claims about the product.
    (ii) Specific health claim is a type of health-related statement 
that, expressly or by implication, characterizes the relationship of the 
wine, alcohol, or any substance found within the wine, to a disease or 
health-related condition. Implied specific health claims include 
statements, symbols, vignettes, or other forms of communication that 
suggest, within the context in which they are presented, that a 
relationship exists between wine, alcohol, or any substance found within 
the wine, and a disease or health-related condition.
    (iii) Health-related directional statement is a type of health-
related statement that directs or refers consumers to a third party or 
other source for information regarding the effects on health of wine or 
alcohol consumption.
    (2) Rules for advertising--(i) Health-related statements. In 
general, advertisements may not contain any health-related statement 
that is untrue in any particular or tends to create a misleading 
impression as to the effects on health of alcohol consumption. TTB will 
evaluate such statements on a case-by-case basis and may require as part 
of the health-related statement a disclaimer or some other qualifying 
statement to dispel any misleading impression conveyed by the health-
related statement. Such disclaimer or other qualifying statement must 
appear as prominent as the health-related statement.
    (ii) Specific health claims. A specific health claim will not be 
considered misleading if it is truthful and adequately substantiated by 
scientific or medical evidence; sufficiently detailed and qualified with 
respect to the categories of individuals to whom the claim applies; 
adequately discloses the health risks associated with both moderate and 
heavier levels of alcohol consumption; and outlines the categories of 
individuals for whom any levels of alcohol consumption may cause health 
risks. This information must appear as part of the specific health claim 
and in a manner as prominent as the specific health claim.
    (iii) Health-related directional statements. A statement that 
directs consumers to a third party or other source for information 
regarding the effects on health of wine or alcohol consumption is 
presumed misleading unless it--
    (A) Directs consumers in a neutral or other non-misleading manner to 
a third party or other source for balanced information regarding the 
effects on health of wine or alcohol consumption; and
    (B)(1) Includes as part of the health-related directional statement, 
and in a manner as prominent as the health-related directional 
statement, the following disclaimer: ``This statement should not 
encourage you to drink or increase your alcohol consumption for health 
reasons;'' or
    (2) Includes as part of the health-related directional statement, 
and in a manner as prominent as the health-related directional 
statement, some other qualifying statement that the appropriate TTB 
officer finds is sufficient to dispel any misleading impression conveyed 
by the health-related directional statement.
    (j) Confusion of brands. Two or more different brands or lots of 
wine shall not be advertised in one advertisement (or in two or more 
advertisements in one issue of a periodical or newspaper,

[[Page 43]]

or in one piece of other written, printed, or graphic matter) if the 
advertisement tends to create the impression that representations made 
as to one brand or lot apply to the other or others, and if as to such 
latter the representations contravene any provision of Sec. Sec.  4.60 
through 4.64 or are in any respect untrue.
    (k) Deceptive advertising techniques. Subliminal or similar 
techniques are prohibited. ``Subliminal or similar techniques,'' as used 
in this part, refers to any device or technique that is used to convey, 
or attempts to convey, a message to a person by means of images or 
sounds of a very brief nature that cannot be perceived at a normal level 
of awareness.

[T.D. 6521, 25 FR 13843, Dec. 29, 1960, as amended by T.D. 6976, 33 FR 
15025, Oct. 8, 1968; T.D. ATF-53, 43 FR 37678, Aug. 23, 1978; T.D. ATF-
180, 49 FR 31672, Aug. 8, 1984; TTB T.D.-1, 68 FR 10103, Mar. 3, 2003]



Sec.  4.65  Comparative advertising.

    (a) General. Comparative adverstising shall not be disparaging of a 
competitor's product.
    (b) Taste tests. (1) Taste test results may be used in 
advertisements comparing competitors' products unless they are 
disparaging, deceptive, or likely to mislead the consumer.
    (2) The taste test procedure used shall meet scientifically accepted 
procedures. An example of a scientifically accepted procedure is 
outlined in the Manual on Sensory Testing Methods, ASTM Special 
Technical Publication 434, published by the American Society for Testing 
and Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103, ASTM, 
1968, Library of Congress Catalog Card Number 68-15545.
    (3) A statement shall appear in the advertisement providing the name 
and address of the testing administrator.

[T.D. ATF-180, 49 FR 31673, Aug. 8, 1984]



                  Subpart H_Standards of Fill for Wine



Sec.  4.70  Application.

    (a) Except as provided in paragraph (b) of this section, no person 
engaged in business as a producer, rectifier, blender, importer, or 
wholesaler of wine, directly or indirectly or through an affiliate, 
shall sell or ship or deliver for sale or shipment, or otherwise 
introduce in interstate or foreign commerce, or receive therein, or 
remove from customs custody, any wine unless such wine is bottled or 
packed in the standard wine containers herein prescribed.
    (b) Sections 4.70 through 4.73 do not apply to:
    (1) Sake;
    (2) Wine packed in containers of 18 liters or more;
    (3) Imported wine in the original containers in which entered 
customs custody if the wine was bottled or packed before January 1, 
1979; or
    (4) Wine domestically bottled or packed, either in or out of customs 
custody, before October 24, 1943, if the container, or the label on the 
container, bears a conspicuous statement of the net contents, and if the 
actual capacity of the container is not substantially less than the 
apparent capacity upon visual examination under ordinary conditions of 
purchase or use.
    (c) Section 4.73 does not apply to wine domestically bottled or 
packed, either in or out of customs custody, before January 1, 1979, if 
the wine was bottled or packed according to the standards of fill 
prescribed by Sec.  4.72.

[T.D. ATF-12, 39 FR 45222, Dec. 31, 1974, as amended by T.D. ATF-49, 43 
FR 19848, May 9, 1978; T.D. ATF-76, 46 FR 1727, Jan. 7, 1981]



Sec.  4.71  Standard wine containers.

    (a) A standard wine container shall be made, formed and filled to 
meet the following specifications:
    (1) Design. It shall be so made and formed as not to mislead the 
purchaser. Wine containers shall be held (irrespective of the 
correctness of the net contents specified on the label) to be so made 
and formed as to mislead the purchaser if the actual capacity is 
substantially less than the apparent capacity upon visual examination 
under ordinary conditions of purchase or use; and
    (2) Fill. It shall be so filled as to contain the quantity of wine 
specified in one of the standards of fill prescribed in Sec.  4.72 or 
Sec.  4.73; and

[[Page 44]]

    (3) Headspace. It shall be made and filled as to have a headspace 
not in excess of 6 percent of its total capacity after closure if the 
net content of the container is 187 milliliters or more, and a headspace 
not in excess of 10 percent of such capacity in the case of all other 
containers.

[T.D. ATF-12, 39 FR 45222, Dec. 31, 1974]



Sec.  4.72  Metric standards of fill.

    (a) Authorized standards of fill. The standards of fill for wine are 
the following:

3 liters.                             375 milliliters.
1.5 liters.                           187 milliliters.
1 liter.                              100 milliliters.
750 milliliters.                      50 milliliters.
500 milliliters.                      ..................................
 

    (b) Sizes larger than 3 liters. Wine may be bottled or packed in 
containers of 4 liters or larger if the containers are filled and 
labeled in quantities of even liters (4 liters, 5 liters, 6 liters, 
etc.).
    (c) Tolerances. The tolerances in fill are the same as are allowed 
by Sec.  4.37 in respect to statement of net contents on labels.

[T.D. ATF-12, 39 FR 45223, Dec. 31, 1974, as amended by T.D. ATF-49, 43 
FR 19848, May 9, 1978; T.D. ATF-76, 46 FR 1727, Jan. 7, 1981; T.D. ATF-
303, 55 FR 42713, Oct. 23, 1990. Redesignated by T.D. ATF-953, 68 FR 
39455, July 2, 2003]



                      Subpart I_General Provisions



Sec.  4.80  Exports.

    The regulations in this part shall not apply to wine exported in 
bond.



                 Subpart J_American Grape Variety Names

    Source: T.D. ATF-370, 61 FR 539, Jan. 8, 1996, unless otherwise 
noted.



Sec.  4.91  List of approved prime names.

    The following grape variety names have been approved by the 
Administrator for use as type designations for American wines. When more 
than one name may be used to identify a single variety of grape, the 
synonym is shown in parentheses following the prime grape names. Grape 
variety names may appear on labels of wine in upper or in lower case, 
and may be spelled with or without the hyphens or diacritic marks 
indicated in the following list.

Aglianico
Agwam
Albari[ntilde]o (Alvarinho)
Albemarle
Aleatico
Alicante Bouschet
Aligot[eacute]
Alvarelh[atilde]o
Alvarinho (Albari[ntilde]o)
Arneis
Aurore
Bacchus
Baco blanc
Baco noir
Barbera
Beacon
Beclan
Bellandais
Beta
Black Corinth
Black Pearl
Blanc Du Bois
Blue Eye
Bonarda
Bountiful
Burdin 4672
Burdin 5201
Burdin 11042
Burgaw
Burger
Cabernet franc
Cabernet Pfeffer
Cabernet Sauvignon
Calzin
Campbell Early (Island Belle)
Canada Muscat
Captivator
Carignane
Carlos
Carmen[egrave]re
Carmine
Carnelian
Cascade
Castel 19-637
Catawba
Cayuga White
Centurion
Chambourcin
Chancellor
Charbono
Chardonel
Chardonnay
Chasselas dor[eacute]
Chelois
Chenin blanc
Chief
Chowan
Cinsaut (Black Malvoisie)
Clairette blanche
Clinton
Colombard (French Colombard)
Colobel
Cortese
Corvina

[[Page 45]]

Concord
Conquistador
Couderc noir
Counoise
Cowart
Creek
Cynthiana (Norton)
Dearing
De Chaunac
Delaware
Diamond
Dixie
Dolcetto
Doreen
Dornfelder
Dulcet
Durif
Dutchess
Early Burgundy
Early Muscat
Edelweiss
Eden
Ehrenfelser
Ellen Scott
Elvira
Emerald Riesling
Feher Szagos
Fern[atilde]o Pires
Fern Munson
Fiano
Flame Tokay
Flora
Florental
Folle blanche
Fredonia
Freisa
Fry
Furmint
Gamay noir
Garronet
Gew[uuml]rztraminer
Gladwin 113
Glennel
Gold
Golden Isles
Golden Muscat
Grand Noir
Green Hungarian
Grenache
Grignolino
Grillo
Gros Verdot
Helena
Herbemont
Higgins
Horizon
Hunt
Iona
Isabella
Ives
James
Jewell
Joannes Seyve 12-428
Joannes Seyve 23-416
Kerner
Kay Gray
Kleinberger
LaCrosse
Lake Emerald
Lambrusco
Landal
Landot noir
Lenoir
L[eacute]on Millot
Limberger (Lemberger)
Madeline Angevine
Magnolia
Magoon
Malbec
Malvasia bianca
Mar[eacute]chal Foch
Marsanne
Melody
Melon de Bourgogne (Melon)
Merlot
Meunier (Pinot Meunier)
Mish
Mission
Missouri Riesling
Mondeuse (Refosco)
Montefiore
Moore Early
Morio-Muskat
Mourv[egrave]dre (Mataro)
M[uuml]ller-Thurgau
M[uuml]nch
Muscadelle
Muscat blanc (Muscat Canelli)
Muscat du Moulin
Muscat Hamburg (Black Muscat)
Muscat of Alexandria
Muscat Ottonel
Naples
Nebbiolo
N[eacute]grette
New York Muscat
Niagara
Noah
Noble
Norton (Cynthiana)
Ontario
Orange Muscat
Palomino
Pamlico
Pedro Ximenes
Petit Verdot
Petite Sirah
Peverella
Pinotage
Pinot blanc
Pinot gris (Pinot Grigio)
Pinot noir
Precoce de Malingre
Pride
Primitivo
Rayon d'Or
Ravat 34
Ravat 51 (Vignoles)
Ravat noir
Redgate
Regale
Riesling (White Riesling)
Rkatziteli (Rkatsiteli)
Roanoke

[[Page 46]]

Rosette
Roucaneuf
Rougeon
Roussanne
Royalty
Rubired
Ruby Cabernet
St. Croix
St. Laurent
Saint Macaire
Salem
Salvador
Sangiovese
Sauvignon blanc (Fum[eacute] blanc)
Scarlet
Scheurebe
S[eacute]millon
Sereksiya
Seyval (Seyval blanc)
Siegerrebe
Siegfried
Southland
Souz[atilde]o
Steuben
Stover
Sugargate
Sultanina (Thomspon Seedless)
Summit
Suwannee
Sylvaner
Symphony
Syrah (Shiraz)
Swenson Red
Tannat
Tarheel
Taylor
Tempranillo (Valdepe[ntilde]as)
Teroldego
Thomas
Thompson Seedless (Sultanina)
Tinta Madeira
Tinto c[atilde]o
Tocai Friulano
Topsail
Touriga
Traminer
Traminette
Trousseau
Trousseau gris
Ugni blanc (Trebbiano)
Valdigui[eacute]
Valerien
Van Buren
Veeblanc
Veltliner
Ventura
Verdelet
Verdelho
Vidal blanc
Villard blanc
Villard noir
Vincent
Viognier
Vivant
Welsch Rizling
Watergate
Welder
Yuga
Zinfandel

[T.D. ATF-370, 61 FR 539, Jan. 8, 1996, as amended by T.D. ATF-417, 64 
FR 49388, Sept. 13, 1999; T.D. ATF-433, 65 FR 78096, Dec. 14, 2000; T.D. 
ATF-466, 66 FR 49280, Sept. 27, 2001; T.D. ATF-475, 67 FR 11918, Mar. 
18, 2002; T.D. ATF-481, 67 FR 56481, Sept. 4, 2002]



Sec.  4.92  Alternative names permitted for temporary use.

    The following alternative names shown in the left column may be used 
as the type designation for American wine in lieu of the prime name of 
the grape variety shown in the right column. Alternative names listed in 
the left column may only be used for wine bottled prior to the date 
indicated.
    (a) Wines bottled prior to January 1, 1997.

                       Alternative Name/Prime Name

Baco 1--Baco noir
Baco 22A--Baco blanc
Bastardo--Trousseau
Black Spanish--Lenoir
Burdin 7705--Florental
Cayuga--Cayuga White
Chancellor noir--Chancellor
Chasselas--Chasselas dor[eacute]
Chevrier--S[eacute]millon
Chelois noir--Chelois
Couderc 71-20--Couderc noir
Couderc 299-35--Muscat du Moulin
Foch--Mar[eacute]chal Foch
Franken Riesling--Sylvaner
Gutedel--Chasselas dor[eacute]
Ives Seedling--Ives
Jacquez--Lenoir
Joannes Seyve 26-205--Chambourcin
Landot 244--Landal
Landot 4511--Landot noir
Millot--Leon Millot
Moore's Diamond--Diamond
Norton Seedling--Norton
Pfeffer Cabernet--Cabernet Pfeffer
Pineau de la Loire--Chenin blanc
Pinot Chardonnay--Chardonnay
Ravat 262--Ravat noir
Rul[auml]nder--Pinot gris
Seibel 128--Salvador
Seibel 1000--Rosette
Seibel 4986--Rayon d'Or
Seibel 5279--Aurore
Seibel 5898--Rougeon
Seibel 7053--Chancellor
Seibel 8357--Colobel
Seibel 9110--Verdelet
Seibel 9549--De Chaunac
Seibel 10878--Chelois
Seibel 13053--Cascade
Seibel 14596--Bellandais
Seyve-Villard 5-276--Seyval

[[Page 47]]

Seyve-Villard 12-309--Roucaneuf
Seyve-Villard 12-375--Villard blanc
Seyve-Villard 18-283--Garronet
Seyve-Villard 18-315--Villard noir
Seyve-Villard 23-410--Valerien
Sweetwater--Chasselas dor[eacute]
Verdelet blanc--Verdelet
Vidal 256--Vidal blanc
Virginia Seedling--Norton
W[auml]lschriesling--Welsch Rizling
Welschriesling--Welsch Rizling

    (b) Wines bottled prior to January 1, 1999.

                       Alternative Name/Prime Name

Cabernet--Cabernet Sauvignon
Grey Riesling--Trousseau gris
Muscat Frontignan--Muscat blanc
Muscat Pantelleria--Muscat of Alexandria
Napa Gamay--Valdiqui[eacute]
Pinot Saint George--N[eacute]grette
Sauvignon vert--Muscadelle

    (c) Wines bottled prior to January 1, 2006.

                       Alternative Name/Prime Name

Johannisberg Riesling--Riesling

[T.D. ATF-370, 61 FR 539, Jan. 8, 1996, as amended by T.D. ATF-417, 64 
FR 49388, Sept. 13, 1999]



Sec.  4.93  Approval of grape variety names.

    (a) Any interested person may petition the Administrator for the 
approval of a grape variety name. The petition may be in the form of a 
letter and should provide evidence of the following--
    (1) Acceptance of the new grape variety,
    (2) The validity of the name for identifying the grape variety,
    (3) That the variety is used or will be used in winemaking, and
    (4) That the variety is grown and used in the United States.
    (b) For the approval of names of new grape varieties, documentation 
submitted with the petition to establish the items in paragraph (a) of 
this section may include--
    (1) reference to the publication of the name of the variety in a 
scientific or professional journal of horticulture or a published report 
by a professional, scientific or winegrowers' organization,
    (2) reference to a plant patent, if so patented, and
    (3) information pertaining to the commercial potential of the 
variety, such as the acreage planted and its location or market studies.
    (c) The Administrator will not approve a grape variety name if:
    (1) The name has previously been used for a different grape variety;
    (2) The name contains a term or name found to be misleading under 
Sec.  4.39; or
    (3) The name of a new grape variety contains the term ``Riesling.''
    (d) For new grape varieties developed in the United States, the 
Administrator may determine if the use of names which contain words of 
geographical significance, place names, or foreign words are misleading 
under Sec.  4.39. The Administrator will not approve the use of a grape 
variety name found to be misleading.
    (e) The Administrator shall publish the list of approved grape 
variety names at least annually in the Federal Register.

(Approved by the Office of Management and Budget under Control Number 
1512-0513)



                  Subpart K_Use of the Term ``Organic''



Sec.  4.101  Use of the term ``organic.''

    (a) Use of the term ``organic'' is optional and is treated as 
``additional information on labels'' under Sec.  4.38(f).
    (b) Any use of the term ``organic'' on a wine label or in 
advertising of wine must comply with the United States Department of 
Agriculture's (USDA) National Organic Program rules (7 CFR part 205) as 
interpreted by the USDA.
    (c) This section applies to labels and advertising that use the term 
``organic'' on and after October 21, 2002.

[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002]



PART 5_LABELING AND ADVERTISING OF DISTILLED SPIRITS--Table of Contents




                             Subpart A_Scope

Sec.
5.1 General.
5.2 Related regulations.
5.3 Forms prescribed.
5.4 Delegations of the Administrator.

                          Subpart B_Definitions

5.11 Meaning of terms.

[[Page 48]]

          Subpart C_Standards of Identity for Distilled Spirits

5.21 Application of standards.
5.22 The standards of identity.
5.23 Alteration of class and type.

                           Subpart Ca_Formulas

5.25 Application.
5.26 Formula requirements.
5.27 Formulas.
5.28 Adoption of predecessor's formulas.

          Subpart D_Labeling Requirements for Distilled Spirits

5.31 General.
5.32 Mandatory label information.
5.32a Voluntary disclosure of major food allergens.
5.32b Petitions for exemption from major food allergen labeling.
5.33 Additional requirements.
5.34 Brand names.
5.35 Class and type.
5.36 Name and address.
5.37 Alcohol content.
5.38 Net contents.
5.39 Presence of neutral spirits and coloring, flavoring, and blending 
          materials.
5.40 Statements of age and percentage.
5.41 Bottle cartons, booklets and leaflets.
5.42 Prohibited practices.

        Subpart E_Standards of Fill for Bottled Distilled Spirits

5.45 Application.
5.46 Standard liquor bottles.
5.47 Standards of fill (distilled spirits bottled before January 1, 
          1980).
5.47a Metric standards of fill (distilled spirits bottled after December 
          31, 1979).

 Subpart F_Requirements for Withdrawal From Customs Custody of Bottled 
                       Imported Distilled Spirits

5.51 Label approval and release.
5.52 Certificates of age and origin.
5.53 Certificate of nonstandard fill.

 Subpart G_Requirements for Approval of Labels of Domestically Bottled 
                            Distilled Spirits

5.55 Certificates of label approval.
5.56 Certificates of age and origin.

               Subpart H_Advertising of Distilled Spirits

5.61 Application.
5.62 Definition.
5.63 Mandatory statements.
5.64 Legibility of mandatory information.
5.65 Prohibited practices.
5.66 Comparative advertising.

                 Subpart I_Use of the Term ``Organic.''

5.71 Use of the term ``organic.''

    Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 205.

    Source: T.D. 7020, 34 FR 20337, Dec. 30, 1969, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 5 appear by T.D. ATF-
425, 65 FR 11891, Mar. 7, 2000.



                             Subpart A_Scope



Sec.  5.1  General.

    The regulations in this part relate to the labeling and advertising 
of distilled spirits. This part applies to the several States of the 
United States, the District of Columbia, and the Commonwealth of Puerto 
Rico, but does not apply to distilled spirits for export.



Sec.  5.2  Related regulations.

    The following regulations also relate to this part:

7 CFR Part 205--National Organic Program
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act, Nonindustrial Use of Distilled Spirits and Wine, 
Bulk Sales and Bottling of Distilled Spirits
27 CFR Part 4--Labeling and Advertising of Wine
27 CFR Part 7--Labeling and Advertising of Malt Beverages
27 CFR Part 13--Labeling Proceedings
27 CFR Part 16--Alcoholic Beverage Health Warning Statement
27 CFR Part 19--Distilled Spirits Plants
27 CFR Part 26--Liquors and Articles From Puerto Rico and the Virgin 
Islands
27 CFR Part 27--Importation of Distilled Spirits, Wines, and Beer
27 CFR Part 28--Exportation of Alcohol
27 CFR Part 71--Rules of Practice in Permit Proceedings

[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002, as amended by T.D. TTB-8, 69 
FR 3829, Jan. 27, 2004]



Sec.  5.3  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part.

[[Page 49]]

The form will be filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-92, 46 FR 46912, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5956, Feb. 27, 1987; T.D. 372, 61 FR 20723, May 8, 1996; T.D. ATF-
425, 65 FR 11891, Mar. 7, 2000; T.D. TTB-44, 71 FR 16921, Apr. 4, 2006]



Sec.  5.4  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.5, Delegation of the Administrator's 
Authorities in 27 CFR Part 5, Labeling and Advertising of Distilled 
Spirits. You may obtain a copy of this order by accessing the TTB Web 
site (http://www.ttb.gov) or by mailing a request to the Alcohol and 
Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, 
Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16921, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  5.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Any other term defined in the Federal Alcohol Administration 
Act and used in this part shall have the same meaning assigned to it by 
such Act.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Advertisement. See Sec.  5.62 for meaning of term as used in subpart 
H of this part.
    Age. The period during which, after distillation and before 
bottling, distilled spirits have been stored in oak containers. ``Age'' 
for bourbon whisky, rye whisky, wheat whisky, malt whisky, or rye malt 
whisky, and straight whiskies other than straight corn whisky, means the 
period the whisky has been stored in charred new oak containers.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.5, Delegation of the Administrator's Authorities in 27 CFR Part 5, 
Labeling and Advertising of Distilled Spirits.
    Bottle. Any container, irrespective of the material from which made, 
used for the sale of distilled spirits at retail.
    Brand label. The principal display panel that is most likely to be 
displayed, presented, shown, or examined under normal and customary 
conditions of display for retail sale, and any other label appearing on 
the same side of the bottle as the principal display panel. The 
principal display panel appearing on a cylindrical surface is that 40 
percent of the circumference which is most likely to be displayed, 
presented, shown, or examined under normal and customary conditions of 
display for retail sale.
    Distilled spirits. Ethyl alcohol, hydrated oxide of ethyl, spirits 
of wine, whisky, rum, brandy, gin, and other distilled spirits, 
including all dilutions and mixtures thereof, for nonindustrial use. The 
term ``distilled spirits'' shall not include mixtures containing wine, 
bottled at 48 degrees of proof or less, if the mixture contains more 
than 50 percent wine on a proof gallon basis.
    Gallon. U.S. gallon of 231 cubic inches of alcoholic beverage at 60 
[deg]F.
    In bulk. In containers having a capacity in excess of 1 wine gallon 
(3.785 liters).
    Interstate or foreign commerce. Commerce between any State and any 
place outside thereof, or commerce within any Territory or the District 
of Columbia, or between points within the same State but through any 
place outside thereof.
    Liter or litre. A metric unit of capacity equal to 1,000 cubic 
centimeters of distilled spirits at l5.56 [deg]C (60 [deg]F.), and 
equivalent to 33.814 U.S. fluid ounces. A liter is subdivided into 1,000 
milliliters.

[[Page 50]]

milliliter or milliliters may be abbreviated as ``ml''.
    Permittee. Any person holding a basic permit under the Federal 
Alcohol Administration Act.
    Person. Any individual, partnership, joint stock company, business 
trust, association, corporation, or other form of business enterprise, 
including a receiver, trustee, or liquidating agent and including an 
officer or employee of any agency of a State or political subdivision 
thereof; and the term ``trade buyer'' means any person who is a 
wholesaler or retailer.
    Produced at. As used in Sec. Sec.  5.22 and 5.52 in conjunction with 
specific degrees of proof to describe the standards of identity, means 
the composite proof of the spirits after completion of distillation and 
before reduction in proof.
    Proof gallon. A gallon of liquid at 60 [deg]F. which contains 50 
percent by volume of ethyl alcohol having a specific gravity of 0.7939 
at 60 [deg]F. referred to water at 60 [deg]F. as unity, or the alcoholic 
equivalent thereof.
    Season. The period from January 1 through June 30, is the spring 
season and the period from July 1 through December 31 is the fall 
season.
    United States. The several States and Territories and the District 
of Columbia; the term ``State'' includes a Territory and the District of 
Columbia; and the term ``Territory'' means the Commonwealth of Puerto 
Rico.

(26 U.S.C. 7805 (68 Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 981, 
as amended))

[T.D. ATF-48, 43 FR 13533, Mar. 31, 1978; 44 FR 55839, Sept. 28, 1979, 
as amended by T.D. ATF-62, 44 FR 71620, Dec. 11, 1979; T.D. ATF-66, 45 
FR 40547, June 13, 1980; T.D. ATF-94, 46 FR 55096, Nov. 6, 1981; T.D. 
ATF-198, 50 FR 8463, Mar. 1, 1985; T.D. ATF-230, 51 FR 21748, June 16, 
1986; T.D. ATF-425, 65 FR 11891, Mar. 7, 2000; T.D. TTB-44, 71 FR 16921, 
Apr. 4, 2006]



          Subpart C_Standards of Identity for Distilled Spirits



Sec.  5.21  Application of standards.

    The standards of identity for the several classes and types of 
distilled spirits set forth in this part shall be applicable only to 
distilled spirits for beverage or other nonindustrial purposes.



Sec.  5.22  The standards of identity.

    Standards of identity for the several classes and types of distilled 
spirits set forth in this section shall be as follows (see also Sec.  
5.35, class and type):
    (a) Class 1; neutral spirits or alcohol. ``Neutral spirits'' or 
``alcohol'' are distilled spirits produced from any material at or above 
190[deg] proof, and, if bottled, bottled at not less than 80[deg] proof.
    (1) ``Vodka'' is neutral spirits so distilled, or so treated after 
distillation with charcoal or other materials, as to be without 
distinctive character, aroma, taste, or color.
    (2) ``Grain spirits'' are neutral spirits distilled from a fermented 
mash of grain and stored in oak containers.
    (b) Class 2; whisky. ``Whisky'' is an alcoholic distillate from a 
fermented mash of grain produced at less than 190[deg] proof in such 
manner that the distillate possesses the taste, aroma, and 
characteristics generally attributed to whisky, stored in oak containers 
(except that corn whisky need not be so stored), and bottled at not less 
than 80[deg] proof, and also includes mixtures of such distillates for 
which no specific standards of identity are prescribed.
    (1)(i) ``Bourbon whisky'', ``rye whisky'', ``wheat whisky'', ``malt 
whisky'', or ``rye malt whisky'' is whisky produced at not exceeding 
160[deg] proof from a fermented mash of not less than 51 percent corn, 
rye, wheat, malted barley, or malted rye grain, respectively, and stored 
at not more than 125[deg] proof in charred new oak containers; and also 
includes mixtures of such whiskies of the same type.
    (ii) ``Corn whisky'' is whisky produced at not exceeding 160[deg] 
proof from a fermented mash of not less than 80 percent corn grain, and 
if stored in oak containers stored at not more than 125[deg] proof in 
used or uncharred new oak containers and not subjected in any manner to 
treatment with charred wood; and also includes mixtures of such whisky.
    (iii) Whiskies conforming to the standards prescribed in paragraphs 
(b)(1)(i) and (ii) of this section, which have been stored in the type 
of oak containers prescribed, for a period of 2 years or more shall be 
further designated as ``straight''; for example, ``straight bourbon 
whisky'', ``straight

[[Page 51]]

corn whisky'', and whisky conforming to the standards prescribed in 
paragraph (b)(1)(i) of this section, except that it was produced from a 
fermented mash of less than 51 percent of any one type of grain, and 
stored for a period of 2 years or more in charred new oak containers 
shall be designated merely as ``straight whisky''. No other whiskies may 
be designated ``straight''. ``Straight whisky'' includes mixtures of 
straight whiskies of the same type produced in the same State.
    (2) ``Whisky distilled from bourbon (rye, wheat, malt, or rye malt) 
mash'' is whisky produced in the United States at not exceeding 160[deg] 
proof from a fermented mash of not less than 51 percent corn, rye, 
wheat, malted barley, or malted rye grain, respectively, and stored in 
used oak containers; and also includes mixtures of such whiskies of the 
same type. Whisky conforming to the standard of identity for corn whisky 
must be designated corn whisky.
    (3) ``Light whisky'' is whisky produced in the United States at more 
than 160[deg] proof, on or after January 26, 1968, and stored in used or 
uncharred new oak containers; and also includes mixtures of such 
whiskies. If ``light whisky'' is mixed with less than 20 percent of 
straight whisky on a proof gallon basis, the mixture shall be designated 
``blended light whisky'' (light whisky--a blend).
    (4) ``Blended whisky'' (whisky--a blend) is a mixture which contains 
straight whisky or a blend of straight whiskies at not less than 20 
percent on a proof gallon basis, excluding alcohol derived from added 
harmless coloring, flavoring or blending materials, and, separately, or 
in combination, whisky or neutral spirits. A blended whisky containing 
not less than 51 percent on a proof gallon basis of one of the types of 
straight whisky shall be further designated by that specific type of 
straight whisky; for example, ``blended rye whisky'' (rye whisky--a 
blend).
    (5)(i) ``A blend of straight whiskies'' (blended straight whiskies) 
is a mixture of straight whiskies which does not conform to the standard 
of identify for ``straight whisky.'' Products so designated may contain 
harmless coloring, flavoring, or blending materials as set forth in 27 
CFR 5.23(a).
    (ii) ``A blend of straight whiskies'' (blended straight whiskies) 
consisting entirely of one of the types of straight whisky, and not 
conforming to the standard for straight whisky, shall be further 
designated by that specific type of straight whisky; for example, ``a 
blend of straight rye whiskies'' (blended straight rye whiskies). ``A 
blend of straight whiskies'' consisting entirely of one of the types of 
straight whisky shall include straight whisky of the same type which was 
produced in the same State or by the same proprietor within the same 
State, provided that such whisky contains harmless coloring, flavoring, 
or blending materials as stated in 27 CFR 5.23(a).
    (iii) The harmless coloring, flavoring, or blending materials 
allowed under this section shall not include neutral spirits or alcohol 
in their original state. Neutral spirits or alcohol may only appear in a 
``blend of straight whiskies'' or in a ``blend of straight whiskies 
consisting entirely of one of the types of straight whisky'' as a 
vehicle for recognized flavoring of blending material.
    (6) ``Spirit whisky'' is a mixture of neutral spirits and not less 
than 5 percent on a proof gallon basis of whisky, or straight whisky, or 
straight whisky and whisky, if the straight whisky component is less 
than 20 percent on a proof gallon basis.
    (7) ``Scotch whisky'' is whisky which is a distinctive product of 
Scotland, manufactured in Scotland in compliance with the laws of the 
United Kingdom regulating the manufacture of Scotch whisky for 
consumption in the United Kingdom: Provided, That if such product is a 
mixture of whiskies, such mixture is ``blended Scotch whisky'' (Scotch 
whisky--a blend).
    (8) ``Irish whisky'' is whisky which is a distinctive product of 
Ireland, manufactured either in the Republic of Ireland or in Northern 
Ireland, in compliance with their laws regulating the manufacture of 
Irish whisky for home consumption: Provided, That if such product is a 
mixture of whiskies, such mixture is ``blended Irish whisky'' (Irish 
whisky--a blend).

[[Page 52]]

    (9) ``Canadian whisky'' is whisky which is a distinctive product of 
Canada, manufactured in Canada in compliance with the laws of Canada 
regulating the manufacture of Canadian whisky for consumption in Canada: 
Provided, That if such product is a mixture of whiskies, such mixture is 
``blended Canadian whisky'' (Canadian whisky--a blend).
    (c) Class 3; gin. ``Gin'' is a product obtained by original 
distillation from mash, or by redistillation of distilled spirits, or by 
mixing neutral spirits, with or over juniper berries and other 
aromatics, or with or over extracts derived from infusions, 
percolations, or maceration of such materials, and includes mixtures of 
gin and neutral spirits. It shall derive its main characteristic flavor 
from juniper berries and be bottled at not less than 80[deg] proof. Gin 
produced exclusively by original distillation or by redistillation may 
be further designated as ``distilled''. ``Dry gin'' (London dry gin), 
``Geneva gin'' (Hollands gin), and ``Old Tom gin'' (Tom gin) are types 
of gin known under such designations.
    (d) Class 4; brandy. ``Brandy'' is an alcoholic distillate from the 
fermented juice, mash, or wine of fruit, or from the residue thereof, 
produced at less than 190[deg] proof in such manner that the distillate 
possesses the taste, aroma, and characteristics generally attributed to 
the product, and bottled at not less than 80[deg] proof. Brandy, or 
mixtures thereof, not conforming to any of the standards in paragraphs 
(d) (1) through (8) of this section shall be designated as ``brandy'', 
and such designation shall be immediately followed by a truthful and 
adequate statement of composition.
    (1) ``Fruit brandy'' is brandy distilled solely from the fermented 
juice or mash of whole, sound, ripe fruit, or from standard grape, 
citrus, or other fruit wine, with or without the addition of not more 
than 20 percent by weight of the pomace of such juice or wine, or 30 
percent by volume of the lees of such wine, or both (calculated prior to 
the addition of water to facilitate fermentation or distillation). Fruit 
brandy shall include mixtures of such brandy with not more than 30 
percent (calculated on a proof gallon basis) of lees brandy. Fruit 
brandy, derived from grapes, shall be designated as ``grape brandy'' or 
``brandy'', except that in the case of brandy (other than neutral 
brandy, pomace brandy, marc brandy or grappa brandy) distilled from the 
fermented juice, mash, or wine of grapes, or the residue thereof, which 
has been stored in oak containers for less than 2 years, the statement 
of class and type shall be immediately preceded, in the same size and 
kind of type, by the word ``immature''. Fruit brandy, other than grape 
brandy, derived from one variety of fruit, shall be designated by the 
word ``brandy'' qualified by the name of such fruit (for example, 
``peach brandy''), except that ``apple brandy'' may be designated 
``applejack''. Fruit brandy derived from more than one variety of fruit 
shall be designated as ``fruit brandy'' qualified by a truthful and 
adequate statement of composition.
    (2) ``Cognac'', or ``Cognac (grape) brandy'', is grape brandy 
distilled in the Cognac region of France, which is entitled to be so 
designated by the laws and regulations of the French Government.
    (3) ``Dried fruit brandy'' is brandy that conforms to the standard 
for fruit brandy except that it has been derived from sound, dried 
fruit, or from the standard wine of such fruit. Brandy derived from 
raisins, or from raisin wine, shall be designated as ``raisin brandy''. 
Other brandies shall be designated in the same manner as fruit brandy 
from the corresponding variety or varieties of fruit except that the 
name of the fruit shall be qualified by the word ``dried''.
    (4) ``Lees brandy'' is brandy distilled from the lees of standard 
grape, citrus, or other fruit wine, and shall be designated as ``lees 
brandy'', qualified by the name of the fruit from which such lees are 
derived.
    (5) ``Pomace brandy'', or ``marc brandy'', is brandy distilled from 
the skin and pulp of sound, ripe grapes, citrus or other fruit, after 
the withdrawal of the juice or wine therefrom, and shall be designated 
as ``pomace brandy'', or ``marc brandy'', qualified by the name of the 
fruit from which derived. Grape pomace brandy may be designated as 
``grappa'' or ``grappa brandy''.

[[Page 53]]

    (6) ``Residue brandy'' is brandy distilled wholly or in part from 
the fermented residue of fruit or wine, and shall be designated as 
``residue brandy'' qualified by the name of the fruit from which 
derived. Brandy distilled wholly or in part from residue materials which 
conforms to any of the standards set forth in paragraphs (d) (1), (3), 
(4), and (5) of this section may, regardless of such fact, be designated 
``residue brandy'', but the use of such designation shall be conclusive, 
precluding any later change of designation.
    (7) ``Neutral brandy'' is brandy produced at more than 170[deg] 
proof and shall be designated in accordance with the standards in this 
paragraph, except that the designation shall be qualified by the word 
``neutral''; for example, ``neutral citrus residue brandy''.
    (8) ``Substandard brandy'' shall bear as a part of its designation 
the word ``substandard'', and shall include:
    (i) Any brandy distilled from fermented juice, mash, or wine having 
a volatile acidity, calculated as acetic acid and exclusive of sulfur 
dioxide, in excess of 0.20 gram per 100 cubic centimeters (20 [deg]C.); 
measurements of volatile acidity shall be calculated exclusive of water 
added to facilitate distillation.
    (ii) Any brandy which has been distilled from unsound, moldy, 
diseased, or decomposed juice, mash, wine, lees, pomace, or residue, or 
which shows in the finished product any taste, aroma, or characteristic 
associated with products distilled from such material.
    (e) Class 5; blended applejack. ``Blended applejack'' (applejack--a 
blend) is a mixture which contains at least 20 percent of apple brandy 
(applejack) on a proof gallon basis, stored in oak containers for not 
less than 2 years, and not more than 80 percent of neutral spirits on a 
proof gallon basis if such mixture at the time of bottling is not less 
than 80[deg] proof.
    (f) Class 6; rum. ``Rum'' is an alcoholic distillate from the 
fermented juice of sugar cane, sugar cane syrup, sugar cane molasses, or 
other sugar cane by-products, produced at less than 190[deg] proof in 
such manner that the distillate possesses the taste, aroma and 
characteristics generally attributed to rum, and bottled at not less 
than 80[deg] proof; and also includes mixtures solely of such 
distillates.
    (g) Class 7; Tequila. ``Tequila'' is an alcoholic distillate from a 
fermented mash derived principally from the Agave Tequilana Weber 
(``blue'' variety), with or without additional fermentable substances, 
distilled in such a manner that the distillate possesses the taste, 
aroma, and characteristics generally attributed to Tequila and bottled 
at not less than 80[deg] proof, and also includes mixtures solely of 
such distillates. Tequila is a distinctive product of Mexico, 
manufactured in Mexico in compliance with the laws of Mexico regulating 
the manufacture of Tequila for consumption in that country.
    (h) Class 8; cordials and liqueurs. Cordials and liqueurs are 
products obtained by mixing or redistilling distilled spirits with or 
over fruits, flowers, plants, or pure juices therefrom, or other natural 
flavoring materials, or with extracts derived from infusions, 
percolation, or maceration of such materials, and containing sugar, 
dextrose, or levulose, or a combination thereof, in an amount not less 
than 2\1/2\ percent by weight of the finished product.
    (1) ``Sloe gin'' is a cordial or liqueur with the main 
characteristic flavor derived from sloe berries.
    (2) ``Rye liqueur'', ``bourbon liqueur'' (rye, bourbon cordial) are 
liqueurs, bottled at not less than 60[deg] proof, in which not less than 
51 percent, on a proof gallon basis, of the distilled spirits used are, 
respectively, rye or bourbon whisky, straight rye or straight bourbon 
whisky, or whisky distilled from a rye or bourbon mash, and which 
possess a predominant characteristic rye or bourbon flavor derived from 
such whisky. Wine, if used, must be within the 2\1/2\ percent limitation 
provided in Sec.  5.23 for coloring, flavoring, and blending materials.
    (3) ``Rock and rye'', ``rock and bourbon'', ``rock and brandy'', 
``rock and rum'' are liqueurs, bottled at not less than 48[deg] proof, 
in which, in the case of rock and rye and rock and bourbon, not less 
than 51 percent, on a proof gallon basis, of the distilled spirits used 
are, respectively, rye or bourbon whisky, straight rye or straight 
bourbon whisky, or whisky distilled from a rye or

[[Page 54]]

bourbon mash, and, in the case of rock and brandy and rock and rum, the 
distilled spirits used are all grape brandy or rum, respectively; 
containing rock candy or sugar syrup, with or without the addition of 
fruit, fruit juices, or other natural flavoring materials, and 
possessing, respectively, a predominant characteristic rye, bourbon, 
brandy, or rum flavor derived from the distilled spirits used. Wine, if 
used, must be within the 2\1/2\ percent limitation provided in Sec.  
5.23 for harmless coloring, flavoring, and blending materials.
    (4) ``Rum liqueur,'' ``gin liqueur,'' ``brandy liqueur,'' are 
liqueurs, bottled at not less than 60 proof, in which the distilled 
spirits used are entirely rum, gin, or brandy, respectively, and which 
possess, respectively, a predominant characteristic rum, gin, or brandy 
flavor derived from the distilled spirits used. In the case of brandy 
liqueur, the type of brandy must be stated in accordance with Sec.  
5.22(d), except that liqueurs made entirely with grape brandy may be 
designated simply as ``brandy liqueur.'' Wine, if used, must be within 
the 2\1/2\ percent limitation provided for in Sec.  5.23 for harmless 
coloring, flavoring, and blending materials.
    (5) The designation of a cordial or liqueur may include the word 
``dry'' if the sugar, dextrose, or levulose, or a combination thereof, 
are less than 10 percent by weight of the finished product.
    (6) Cordials and liqueurs shall not be designated as ``distilled'' 
or ``compound''.
    (i) Class 9; flavored brandy, flavored gin, flavored rum, flavored 
vodka, and flavored whisky. ``Flavored brandy, ``flavored gin,'' 
``flavored rum,'' ``flavored vodka,'' and ``flavored whisky,'' are 
brandy, gin, rum vodka, and whisky, respectively, to which have been 
added natural flavoring materials, with or without the addition of 
sugar, and bottled at not less than 60[deg] proof. The name of the 
predominant flavor shall appear as a part of the designation. If the 
finished product contains more than 2\1/2\ percent by volume of wine, 
the kinds and precentages by volume of wine must be stated as a part of 
the designation, except that a flavored brandy may contain an additional 
12\1/2\ percent by volume of wine, without label disclosure, if the 
additional wine is derived from the particular fruit corresponding to 
the labeled flavor of the product.
    (j) Class 10; imitations. Imitations shall bear, as a part of the 
designation thereof, the word ``imitation'' and shall include the 
following:
    (1) Any class or type of distilled spirits to which has been added 
coloring or flavoring material of such nature as to cause the resultant 
product to simulate any other class or type of distilled spirits;
    (2) Any class or type of distilled spirits (other than distilled 
spirits required under Sec.  5.35 to bear a distinctive or fanciful name 
and a truthful and adequate statement of composition) to which has been 
added flavors considered to be artificial or imitation. In determining 
whether a flavor is artificial or imitation, recognition will be given 
to what is considered to be ``good commercial practice'' in the flavor 
manufacturing industry;
    (3) Any class of type of distilled spirits (except cordials, 
liqueurs and specialties marketed under labels which do not indicate or 
imply, that a particular class or type of distilled spirits was used in 
the manufacture thereof) to which has been added any whisky essense, 
brandy essence, rum essence, or similar essence or extract which 
simulates or enhances, or is used by the trade or in the particular 
product to simulate or enhance, the characteristics of any class or type 
of distilled spirits;
    (4) Any type of whisky to which beading oil has been added;
    (5) Any rum to which neutral spirits or distilled spirits other than 
rum have been added;
    (6) Any brandy made from distilling material to which has been added 
any amount of sugar other than the kind and amount of sugar expressly 
authorized in the production of standard wine; and
    (7) Any brandy to which neutral spirits or distilled spirits other 
than brandy have been added, except that this provision shall not apply 
to any product conforming to the standard of identity for blended 
applejack.
    (k) Class 11; geographical designations. (1) Geographical names for 
distinctive

[[Page 55]]

types of distilled spirits (other than names found by the appropriate 
TTB officer under paragraph (k)(2) of this section to have become 
generic) shall not be applied to distilled spirits produced in any other 
place than the particular region indicated by the name, unless (i) in 
direct conjunction with the name there appears the word ``type'' or the 
word ``American'' or some other adjective indicating the true place of 
production, in lettering substantially as conspicuous as such name, and 
(ii) the distilled spirits to which the name is applied conform to the 
distilled spirits of that particular region. The following are examples 
of distinctive types of distilled spirits with geographical names that 
have not become generic: Eau de Vie de Dantzig (Danziger Goldwasser), 
Ojen, Swedish punch. Geographical names for distinctive types of 
distilled spirits shall be used to designate only distilled spirits 
conforming to the standard of identity, if any, for such type specified 
in this section, or if no such standard is so specified, then in 
accordance with the trade understanding of that distinctive type.
    (2) Only such geographical names for distilled spirits as the 
appropriate TTB officer finds have by usage and common knowledge lost 
their geographical significance to such extent that they have become 
generic shall be deemed to have become generic. Examples at London dry 
gin, Geneva (Hollands) gin.
    (3) Geographical names that are not names for distinctive types of 
distilled spirits, and that have not become generic, shall not be 
applied to distilled spirits produced in any other place than the 
particular place or region indicated in the name. Examples are Cognac, 
Armagnac, Greek brandy, Pisco brandy, Jamaica rum, Puerto Rico rum, 
Demerara rum.
    (4) The words ``Scotch'', ``Scots'' ``Highland'', or ``Highlands'' 
and similar words connoting, indicating, or commonly associated with 
Scotland, shall not be used to designate any product not wholly produced 
in Scotland.
    (l) Class 12; products without geographical designations but 
distinctive of a particular place. (1) The whiskies of the types 
specified in paragraphs (b) (1), (4), (5), and (6) of this section are 
distinctive products of the United States and if produced in a foreign 
country shall be designated by the applicable designation prescribed in 
such paragraphs, together with the words ``American type'' or the words 
``produced (distilled, blended) in ----'', the blank to be filled in 
with the name of the foreign country: Provided, That the word 
``bourbon'' shall not be used to describe any whisky or whisky-based 
distilled spirits not produced in the United States. If whisky of any of 
these types is composed in part of whisky or whiskies produced in a 
foreign country there shall be stated, on the brand label, the 
percentage of such whisky and the country of origin thereof.
    (2) The name for other distilled spirits which are distinctive 
products of a particular place or country, an example is Habanero, shall 
not be given to the product of any other place or country unless the 
designation for such product includes the word ``type'' or an adjective 
such as ``American'', or the like, clearly indicating the true place of 
production. The provision for place of production shall not apply to 
designations which by usage and common knowledge have lost their 
geographical significance to such an extent that the appropriate TTB 
officer finds they have become generic. Examples are Slivovitz, 
Zubrovka, Aquavit, Arrack, and Kirschwasser.

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-7, 38 FR 
33471, Dec. 5, 1973; T.D. ATF-36, 41 FR 47426, Oct. 29, 1976; T.D. ATF-
37, 41 FR 48121, Nov. 2, 1976; T.D. ATF-48, 44 FR 55839, Sept. 28, 1979; 
T.D. ATF-62, 44 FR 71620, Dec. 11, 1979; T.D. ATF-66, 45 FR 40547, June 
13, 1980; T.D. ATF-94, 46 FR 55096, Nov. 6, 1981; T.D. ATF-259, 52 FR 
41422, Oct. 28, 1987; T.D. ATF-324, 57 FR 29020, June 30, 1992]



Sec.  5.23  Alteration of class and type.

    (a) Additions. (1) The addition of any coloring, flavoring, or 
blending materials to any class and type of distilled spirits, except as 
otherwise provided in this section, alters the class and type thereof 
and the product shall be appropriately redesignated.
    (2) There may be added to any class or type of distilled spirits, 
without changing the class or type thereof, (i)

[[Page 56]]

such harmless coloring, flavoring, or blending materials as are an 
essential component part of the particular class or type of distilled 
spirits to which added, and (ii) harmless coloring, flavoring, or 
blending materials such as caramel, straight malt or straight rye malt 
whiskies, fruit juices, sugar, infusion of oak chips when approved by 
the Administrator, or wine, which are not an essential component part of 
the particular distilled spirits to which added, but which are 
customarily employed therein in accordance with established trade usage, 
if such coloring, flavoring, or blending materials do not total more 
than 2\1/2\ percent by volume of the finished product.
    (3) ``Harmless coloring, flavoring, and blending materials'' shall 
not include (i) any material which would render the product to which it 
is added an imitation, or (ii) any material, other than caramel, 
infusion of oak chips, and sugar, in the case of Cognac brandy; or (iii) 
any material whatsoever in the case of neutral spirits or straight 
whiskey, except that vodka may be treated with sugar in an amount not to 
exceed 2 grams per liter and a trace amount of citric acid.
    (b) Extractions. The removal from any distilled spirits of any 
constituents to such an extent that the product does not possess the 
taste, aroma, and characteristics generally attributed to that class or 
type of distilled spirits alters the class and type thereof, and the 
product shall be appropriately redesignated. In addition, in the case of 
straight whisky the removal of more than 15 percent of the fixed acids, 
or volatile acids, or esters, or soluble solids, or higher alcohols, or 
more than 25 percent of the soluble color, shall be deemed to alter the 
class or type thereof.
    (c) Exceptions. (1) This section shall not be construed as in any 
manner modifying the standards of identity for cordials and liqueurs, 
flavored brandy, flavored gin, flavored rum, flavored vodka, and 
flavored whisky or as authorizing any product which is defined in Sec.  
5.22(j), Class 10, as an imitation to be otherwise designated.
    (2) [Reserved]

[T.D. 7020, 34 FR 20337, Dec. 30. 1969, as amended by T.D. ATF-360, 59 
FR 67222, 67223, Dec. 29, 1994; T.D. ATF-369, 61 FR 67327, Dec. 29, 
1995]



                           Subpart Ca_Formulas

    Source: T.D. ATF-62, 44 FR 71620, Dec. 11, 1979, unless otherwise 
noted.



Sec.  5.25  Application.

    The requirements of this subpart shall apply to:
    (a) Proprietors of distilled spirits plants qualified as processors 
under 27 CFR part 19;
    (b) Persons in Puerto Rico who manufacture distilled spirits 
products for shipment to the United States. Formulas need only be filed 
for those products which will be shipped to the United States; and
    (c) Persons who ship into the United States, Virgin Islands 
distilled spirits products.



Sec.  5.26  Formula requirements.

    (a) General. An approved formula is required to blend, mix, purify, 
refine, compound, or treat spirits in a manner which results in a change 
of character, composition, class or type of the spirits. Form 5110.38 
(27-B Supplemental) shall be filed in accordance with the instructions 
on the form and shall designate all ingredients and, if required, the 
process used. Any approved formula on Form 27-B Supplemental or Form 
5110.38 shall remain in effect until revoked, superseded, or voluntarily 
surrendered. Any existing qualifying statements as to the rate of tax or 
the limited use of drawback flavors appearing on a Form 27-B 
Supplemental are obsolete.
    (b) Change in formula. Any change in an approved formula shall 
require the filing of a new Form 5110.38. After a change in a formula is 
approved, the original formula shall be surrendered to the appropriate 
TTB officer.

[T.D. ATF-62, 44 FR 71620, as amended by T.D. ATF-425, 65 FR 11891, Mar. 
7, 2000]



Sec.  5.27  Formulas.

    Formulas are required for distilled spirits operations which change 
the

[[Page 57]]

character, composition, class or type of spirits as follows:
    (a) The compounding of spirits through the mixing of any coloring, 
flavoring, wine, or other material with distilled spirits;
    (b) The manufacture of an intermediate product to be used 
exclusively in other distilled spirits products on bonded premises;
    (c) Any filtering or stabilizing process which results in a product 
which does not possess the taste, aroma, and characteristics generally 
attributed to that class or type of distilled spirits; and, in the case 
of straight whisky, results in the removal of more than 15 percent of 
the fixed acids, volatile acids, esters, soluble solids, or higher 
alcohols, or more than 25 percent of the soluble color;
    (d) The mingling of spirits (including merchandise returned to bond) 
which differ in class or type of materials from which produced;
    (e) The mingling of spirits stored in charred cooperage with spirits 
stored in plain or reused cooperage, or the mixing of spirits that have 
been treated with wood chips with spirits not so treated, or the mixing 
of spirits that have been subjected to any treatment which changes their 
character with spirits not so treated, unless it is determined that the 
composition of the spirits is the same, notwithstanding the storage in 
different kinds of cooperage or the treatment of a portion of the 
spirits;
    (f) The use (except as authorized for production or storage 
operations as provided by 27 CFR part 19) of any physical or chemical 
process or any apparatus which accelerates the maturing of the spirits;
    (g) The steeping or soaking of fruits, berries, aromatic herbs, 
roots, seeds, etc., in spirits or wines;
    (h) The artificial carbonating of spirits;
    (i) The blending in Puerto Rico of spirits with any liquors 
manufactured outside of Puerto Rico;
    (j) The production of gin by--
    (1) Redistillation over juniper berries and other natural aromatics, 
or the extracted oils of such, of spirits distilled at or above 190 
degrees of proof, free from impurities, including spirits of such a 
nature recovered by redistillation of imperfect gin spirits; and
    (2) Mixing gin with other spirits;
    (k) The treatment of gin by--
    (1) Addition or abstraction of any substance or material other than 
pure water after redistillation in a manner that would change its class 
and type designation; and
    (2) Addition of any substance or material other than juniper berries 
or other natural aromatics, or the extracted oils of such, or pure water 
to the spirits, before or during redistillation, in a manner that would 
change its class and type designation;
    (l) The production of vodka by--
    (1) Treatment of neutral spirits with not less than one ounce of 
activated carbon per 100 wine gallons of spirits;
    (2) Redistillation of pure spirits so as to be without distinctive 
character, aroma, taste, or color;
    (3) Mixing with other spirits or with any other substance or 
material except pure water, after production; and
    (m) The recovery of spirits by redistillation from distilled spirits 
products containing other alcoholic ingredients and from spirits which 
have previously been entered for deposit. However, no formula shall be 
required for spirits redistilled into any type of neutral spirits other 
than vodka or spirits redistilled at less than 190 degrees of proof 
which lack the taste, aroma and other characteristics generally 
attributed to whisky, brandy, rum, or gin, and are designated as 
``Spirits,'' preceded or followed by a word or phrase descriptive of the 
material from which produced. Such spirits redistilled on or after July 
1, 1972, may not be designated ``Spirits Grain'' or ``Grain Spirits.''

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 
981, as amended))

[T.D. ATF-198, 50 FR 8463, Mar. 1, 1985, as amended by T.D. ATF-259, 52 
FR 41423, Oct. 28, 1987]



Sec.  5.28  Adoption of predecessor's formulas.

    The adoption by a successor of approved Forms 5110.38 (27-B 
Supplemental) shall be in the form of an application filed with the 
appropriate TTB officer. The application shall list the formulas for 
adoption by:

[[Page 58]]

    (a) Formula number,
    (b) Name of product, and
    (c) Date of approval.

The application shall clearly show that the predecessor has authorized 
the use of his previously approved formulas by the successor.



          Subpart D_Labeling Requirements for Distilled Spirits



Sec.  5.31  General.

    (a) Application. No person engaged in business as a distiller, 
rectifier, importer, wholesaler, or warehouseman and bottler, directly 
or indirectly, or through an affiliate, shall sell or ship or deliver 
for sale or shipment or otherwise introduce in interstate or foreign 
commerce, or receive therein, or remove from customs custody, any 
distilled spirits in bottles, unless such bottles are marked, branded, 
labeled, or packaged, in conformity with Sec. Sec.  5.31 through 5.42.
    (b) Alteration of labels. It shall be unlawful for any person to 
alter, mutilate, destroy, obliterate, or remove any mark, brand, or 
label on distilled spirits held for sale in interstate or foreign 
commerce or after shipment therein, except:
    (1) As authorized by Federal law;
    (2) When an additional labeling or relabeling of bottled distilled 
spirits is accomplished with labels covered by certificates of label 
approval which comply with the requirements of this part and with State 
law;
    (3) That there may be added to the bottle, after removal from 
customs custody, or prior to or after removal from bonded premises, 
without application for permission to relabel, a label identifying the 
wholesale or retail distributor thereof or identifying the purchaser or 
consumer, and containing no references whatever to the characteristics 
of the product.

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 
981, as amended))

[T.D. 7020, 34 FR 20637, Dec. 30, 1969, as amended by T.D. ATF-62, 44 FR 
71621, Dec. 11, 1979; T.D. ATF-198, 50 FR 8464, Mar. 1, 1985]



Sec.  5.32  Mandatory label information.

    There shall be stated:
    (a) On the brand label:
    (1) Brand name.
    (2) Class and type, in accordance with Sec.  5.35.
    (3) Alcoholic content, in accordance with Sec.  5.37.
    (4) In the case of distilled spirits packaged in containers for 
which no standard of fill is prescribed in Sec.  5.47, net contents in 
accordance with Sec.  5.38(b) or Sec.  5.38a(b)(2).
    (b) On the brand label or on a back label:
    (1) Name and address, in accordance with Sec.  5.36.
    (2) In the case of imported spirits, the country of origin, in 
accordance with Sec.  5.36.
    (3) In the case of distilled spirits packaged in containers 
conforming to the standards of fill prescribed in Sec.  5.47 or Sec.  
5.47a, net contents in accordance with Sec.  5.38(a), Sec.  5.38a(a), or 
Sec.  5.38a(b)(1).
    (4) Coloring or flavoring, in accordance with Sec.  5.39.
    (5) A statement that the product contains FD&C Yellow No. 5, where 
that coloring material is used in a product bottled on or after October 
6, 1984.
    (6) [Reserved]
    (7) Declaration of sulfites. There shall be stated, the statement 
``Contains sulfites'' or ``Contains (a) sulfiting agent(s)'' or a 
statement identifying the specific sulfiting agent where sulfur dioxide 
or a sulfiting agent is detected at a level of 10 or more parts per 
million, measured as total sulfur dioxide. The sulfite declaration may 
appear on a strip label or neck label in lieu of appearing on the front 
or back label. The provisions of this paragraph shall apply to:
    (i) Any certificate of label approval issued on or after January 9, 
1987;
    (ii) Any distilled spirits bottled on or after July 9, 1987, 
regardless of the date of issuance of the certificate of label approval; 
and,
    (iii) Any distilled spirits removed on or after January 9, 1988.
    (8) Percentage of neutral spirits and name of commodity from which 
distilled, or in the case of continuously distilled neutral spirits or 
gin, the name of the commodity only, in accordance with Sec.  5.39.

[[Page 59]]

    (9) A statement of age or age and percentage, when required, in 
accordance with Sec.  5.40.
    (10) State of distillation of domestic types of whisky and straight 
whisky, except light whisky and blends, in accordance with Sec.  5.36.
    (c) In the case of a container which has been excepted under the 
provisions of Sec.  5.46(d), the information required to appear on the 
``brand label,'' as defined, may appear elsewhere on such container if 
it can be demonstrated that the container cannot reasonably be so 
designed that the required brand label can be properly affixed.

(Paragraph (b)(7) approved by the Office of Management and Budget under 
Control No. 1512-0469)

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-25, 41 FR 
10220, Mar. 10, 1976; 41 FR 11022, Mar. 16, 1976; T.D. ATF-94, 46 FR 
55096, Nov. 6, 1981; T.D. ATF-150, 48 FR 45556, Oct. 6, 1983; 48 FR 
46518, Oct. 13, 1983; T.D. ATF-220, 50 FR 51852, Dec. 20, 1985; T.D. 
ATF-236, 51 FR 34710, Sept. 30, 1986; T.D. ATF-282, 54 FR 7162, Feb. 16, 
1989; T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-344, 58 FR 
40354, July 28, 1993; T.D. ATF-425, 65 FR 11891, Mar. 7, 2000; T.D TTB-
12, 69 FR 33574, June 16, 2004]



Sec.  5.32a  Voluntary disclosure of major food allergens.

    (a) Definitions. For purposes of this section the following terms 
have the meanings indicated.
    (1) Major food allergen. Major food allergen means any of the 
following:
    (i) Milk, egg, fish (for example, bass, flounder, or cod), 
Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts 
(for example, almonds, pecans, or walnuts), wheat, peanuts, and 
soybeans; or
    (ii) A food ingredient that contains protein derived from a food 
specified in paragraph (a)(1)(i) of this section, except:
    (A) Any highly refined oil derived from a food specified in 
paragraph (a)(1)(i) of this section and any ingredient derived from such 
highly refined oil; or
    (B) A food ingredient that is exempt from major food allergen 
labeling requirements pursuant to a petition for exemption approved by 
the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or 
pursuant to a notice submitted to FDA under 21 U.S.C. 343(w)(7), 
provided that the food ingredient meets the terms or conditions, if any, 
specified for that exemption.
    (2) Name of the food source from which each major food allergen is 
derived. Name of the food source from which each major food allergen is 
derived means the name of the food as listed in paragraph (a)(1)(i) of 
this section, except that:
    (i) In the case of a tree nut, it means the name of the specific 
type of nut (for example, almonds, pecans, or walnuts);
    (ii) In the case of Crustacean shellfish, it means the name of the 
species of Crustacean shellfish (for example, crab, lobster, or shrimp); 
and
    (iii) The names ``egg'' and ``peanuts'', as well as the names of the 
different types of tree nuts, may be expressed in either the singular or 
plural form, and the term ``soy'', soybean'', or ``soya'' may be used 
instead of ``soybeans''.
    (b) Voluntary labeling standards. Major food allergens (defined in 
paragraph (a)(1) of this section) used in the production of a distilled 
spirit product may, on a voluntary basis, be declared on any label 
affixed to the container. However, if any one major food allergen is 
voluntarily declared, all major food allergens used in production of the 
distilled spirit product, including major food allergens used as fining 
or processing agents, must be declared, except when covered by a 
petition for exemption approved by the appropriate TTB officer under 
Sec.  5.32b. The major food allergens declaration must consist of the 
word ``Contains'' followed by a colon and the name of the food source 
from which each major food allergen is derived (for example, ``Contains: 
egg'').
    (c) Cross reference. For mandatory labeling requirements applicable 
to distilled spirits products containing FD&C Yellow No. 5 and sulfites, 
see Sec. Sec.  5.32(b)(5) and (7).

[T.D. TTB-53, 71 FR 42268, July 26, 2006]



Sec.  5.32b  Petitions for exemption from major food allergen labeling.

    (a) Submission of petition. Any person may petition the appropriate 
TTB officer to exempt a particular product or class of products from the 
labeling requirements of Sec.  5.32a. The burden is on

[[Page 60]]

the petitioner to provide scientific evidence (including the analytical 
method used to produce the evidence) that demonstrates that the finished 
product or class of products, as derived by the method specified in the 
petition, either:
    (1) Does not cause an allergic response that poses a risk to human 
health; or
    (2) Does not contain allergenic protein derived from one of the 
foods identified in Sec.  5.32a(a)(1)(i), even though a major food 
allergen was used in production.
    (b) Decision on petition. TTB will approve or deny a petition for 
exemption submitted under paragraph (a) of this section in writing 
within 180 days of receipt of the petition. If TTB does not provide a 
written response to the petitioner within that 180-day period, the 
petition will be deemed denied, unless an extension of time for decision 
is mutually agreed upon by the appropriate TTB officer and the 
petitioner. TTB may confer with the Food and Drug Administration (FDA) 
on petitions for exemption, as appropriate and as FDA resources permit. 
TTB may require the submission of product samples and other additional 
information in support of a petition; however, unless required by TTB, 
the submission of samples or additional information by the petitioner 
after submission of the petition will be treated as the withdrawal of 
the initial petition and the submission of a new petition. An approval 
or denial under this section will constitute a final agency action.
    (c) Resubmission of a petition. After a petition for exemption is 
denied under this section, the petitioner may resubmit the petition 
along with supporting materials for reconsideration at any time. TTB 
will treat this submission as a new petition for purposes of the time 
frames for decision set forth in paragraph (b) of this section.
    (d) Availability of information--(1) General. TTB will promptly post 
to its public Web site, http://www.ttb.gov, all petitions received under 
this section as well as TTB's responses to those petitions. Any 
information submitted in support of the petition that is not posted to 
the TTB Web site will be available to the public pursuant to 5 U.S.C. 
552, except where a request for confidential treatment is granted under 
paragraph (d)(2) of this section.
    (2) Requests for confidential treatment of business information. A 
person who provides trade secrets or other commercial or financial 
information in connection with a petition for exemption under this 
section may request that TTB give confidential treatment to that 
information. A failure to request confidential treatment at the time the 
information in question is submitted to TTB will constitute a waiver of 
confidential treatment. A request for confidential treatment of 
information under this section must conform to the following standards:
    (i) The request must be in writing;
    (ii) The request must clearly identify the information to be kept 
confidential;
    (iii) The request must relate to information that constitutes trade 
secrets or other confidential commercial or financial information 
regarding the business transactions of an interested person, the 
disclosure of which would cause substantial harm to the competitive 
position of that person;
    (iv) The request must set forth the reasons why the information 
should not be disclosed, including the reasons the disclosure of the 
information would prejudice the competitive position of the interested 
person; and
    (v) The request must be supported by a signed statement by the 
interested person, or by an authorized officer or employee of that 
person, certifying that the information in question is a trade secret or 
other confidential commercial or financial information and that the 
information is not already in the public domain.

[T.D. TTB-53, 71 FR 42268, July 26, 2006]



Sec.  5.33  Additional requirements.

    (a) Contrasting background. Labels shall be so designed that the 
statements required by this subpart are readily legible under ordinary 
conditions, and such statements shall be on a contrasting background.
    (b) Location of statements and size of type. (1) Statements required 
by this subpart, except brand names, shall appear generally parallel to 
the base on which the bottle rests as it is designed

[[Page 61]]

to be displayed or shall be otherwise equally conspicuous.
    (2) Statements required by this subpart, except brand names and the 
declaration of sulfites in Sec.  5.32(b)(7), shall be separate and apart 
from any other descriptive or explanatory matters.
    (3) If not separate and apart from other descriptive or explanatory 
matter printed on the label, the statement declaring the presence of 
sulfites shall be of a size substantially more conspicuous than 
surrounding nonmandatory labeling information.
    (4) Statements of the type of distilled spirits shall be as 
conspicuous as the statement of the class to which it refers, and in 
direct conjunction therewith.
    (5) Statements required by this subpart, except brand names, shall 
be in script, type, or printing not smaller than 2 millimeters (or 8-
point gothic until January 1, 1983), except that, in the case of labels 
on bottles of 200 milliliters or less capacity, such script, type, or 
printing shall not be smaller than 1 millimeter (or 6-point gothic until 
January 1, 1983).
    (6) When net contents are stated either in metric measures or in 
both metric and U.S. fluid measures, statements required by the subpart, 
except brand names, shall be in script, type, or printing not smaller 
than 2 millimeters (or 8-point gothic until January 1, 1983), except 
that, in the case of labels on bottles of 200 milliliters or less 
capacity such script, type, or printing shall not be smaller than 1 
millimeter (or 6-point gothic until January 1, 1983).
    (c) English language. The requirements of this subpart shall be 
stated in the English language, except that the brand name need not be 
in English, and for products bottled for consumption within Puerto Rico 
the required information may be stated in the Spanish language if the 
net contents and, if the product is an imitation, the word ``imitation'' 
are also stated in the English language.
    (d) Location of label. Labels shall not obscure government stamps or 
be obscured thereby. Labels shall not obscure any markings or 
information required to be permanently marked in the bottle by other 
U.S. Treasury Department regulations.
    (e) Labels firmly affixed. Labels which are not an integral part of 
the bottle shall be affixed to bottles in such manner that they cannot 
be removed without thorough application of water or other solvents.
    (f) Additional information on labels. Labels may contain information 
other than the mandatory label information required by this subpart if 
the information does not conflict with, or in any manner qualify, 
statements required by this part.
    (g) Contents of bottles. A complete and accurate statement of the 
contents of the bottles to which labels are to be or have been affixed 
shall be submitted, on request, to the appropriate TTB officer.

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-66, 45 FR 
40548, June 13, 1980; T.D. ATF-94, 46 FR 55096, Nov. 6, 1981; T.D. ATF-
236, 51 FR 34710, Sept. 30, 1986; T.D. ATF-425, 65 FR 11891, Mar. 7, 
2000]



Sec.  5.34  Brand names.

    (a) Misleading brand names. No label shall contain any brand name, 
which, standing alone, or in association with other printed or graphic 
matter, creates any impression or inference as to the age, origin, 
identity, or other characteristics of the product unless the appropriate 
TTB officer finds that such brand name (when appropriately qualified if 
required) conveys no erroneous impressions as to the age, origin, 
identity, or other characteristics of the product.
    (b) Trade name of foreign origin. Paragraph (a) of this section does 
not prohibit the use by any person of any trade name or brand of foreign 
origin not effectively registered in the U.S. Patent Office on August 
29, 1935, which has been used by such person or his predecessors in the 
United States for a period of at least 5 years immediately preceding 
August 29, 1935: Provided, That if such trade name or brand is used, the 
designation of the product shall be qualified by the name of the 
locality in the United States in which produced, and such qualification 
shall be in script, type, or printing as conspicuous as the trade name 
or brand.

[[Page 62]]



Sec.  5.35  Class and type.

    (a) Designation of product. The class and type of distilled spirits 
shall be stated in conformity with Sec.  5.22 if defined therein. In all 
other instances the product shall be designated in accordance with trade 
and consumer understanding thereof, or, if no such understanding exists, 
by a distinctive or fanciful name, and in either case (except as 
provided in paragraph (b)(2) of this section) followed by a truthful and 
adequate statement of composition. The word ``cordial'' or ``liqueur'' 
need not be stated in the case of cordials and liqueurs unless the 
appropriate TTB officer finds such word is necessary to clearly indicate 
that the product is a cordial or liqueur.
    (b) Products designed in accordance with trade and consumer 
understanding. In the case of products designated in accordance with 
trade and consumer understanding:
    (1) A statement of the classes and types of distilled spirits used 
in the manufacture thereof shall be deemed a sufficient statement of 
composition in the case of highballs, cocktails, and similar prepared 
specialties when the designation adequately indicates to the consumer 
the general character of the product.
    (2) No statement of composition is required if the designation 
through general and established usage adequately indicates to the 
consumer the composition of the product.

A product shall not bear a designation which indicates it contains a 
class or type of distilled spirits unless the distilled spirits therein 
conform to such class and type.
    (c) Origin of whiskies in mixtures. In the case of any of the types 
of whisky defined in Sec.  5.22(b), Class 2, which contains any whisky 
or whiskies produced in a country other than that indicated by the type 
designation, there shall be stated on the brand label the percentage of 
such whisky and the country or origin thereof. In the case of mixtures 
of whisky, not conforming to any type designation in Sec.  5.22(b), 
Class 2, the components of which were distilled in more than one 
country, there shall be stated in direct conjunction with the class 
designation ``whisky'' a truthful and adequate statement of the 
composition of the product.
    (d) Whisky manufactured in Scotland, Ireland, or Canada. All whisky 
manufactured in Scotland, Ireland, or Canada, shall be deemed to be 
Scotch, Irish, or Canadian whisky, and shall be so designated, in 
conformity with Sec.  5.22(b) (7), (8), and (9), unless the application 
of such designation to the particular product will result in consumer 
deception, or unless such a product is not entitled to such designation 
under the laws of the country in which manufactured.
    (e) Cordials and liqueurs. The alcoholic components of cordails and 
liqueurs may, but need not, be stated on labels.



Sec.  5.36  Name and address.

    (a) ``Bottled by''. (1) On labels of domestic distilled spirits 
there shall be stated the phrase ``bottled by'', ``packed by'', or 
``filled by'', immediately followed by the name (or trade name) of the 
bottler and the place where such distilled spirits are bottled. If the 
bottler is the actual bona fide operator of more than one distilled 
spirits plant engaged in bottling operations, there may, in addition, be 
stated immediately following the name (or trade name) of such bottler 
the addresses of such other plants.
    (2) Where distilled spirits are bottled by or for the distiller 
thereof, there may be stated, in lieu of the phrase ``bottled by'', 
``packed by'', or ``filled by'', followed by the bottler's name (or 
trade name) and address, the phrase ``distilled by'', followed by the 
name, or the trade name under which the particular spirits were 
distilled, or (except in the case of distilled spirits labeled as 
bottled in bond) any trade name shown on the distiller's permit 
(covering the premises where the particular spirits were distilled), and 
the address (or addresses) of the distiller.
    (3) Where ``straight whiskies'' of the same type which have been 
produced in the same State by two or more different distillers are 
combined (either at time of bottling or at a warehouseman's bonded 
premises for further storage) and subsequently bottled and labeled as 
``straight whisky,'' such ``straight whisky'' shall be labeled

[[Page 63]]

in accordance with the requirements of paragraph (a)(1) of this section. 
Where such ``straight whisky'' is bottled by or for the distillers 
thereof, there may be stated on the label, in lieu of the requirements 
of paragraph (a)(1) of this section, the phraise ``distilled by,'' 
followed by the names (or trade names) of the different distillers who 
distilled a portion of the ``straight whisky,'' the addresses of the 
distilleries where the ``straight whisky'' was distilled, and the 
percentage of ``straight whisky'' distilled by each distiller (with a 
tolerance of plus or minus 2 percent). In the case where ``straight 
whisky'' is made up of a mixture of ``straight whiskies'' of the same 
type from two or more different distilleries of the same proprietor 
located within the same State, and where the ``straight whisky'' is 
bottled by or for the proprietor thereof, such ``straight whisky'' may 
be labeled, in lieu of the requirements of paragraph (a)(1) of the this 
section, with the phrase ``distilled by'' followed by the name (or trade 
name) of the proprietor and the addresses of the different distilleries 
which distilled a portion of the ``straight whisky.''
    (4) Where distilled spirits are bottled by or for the rectifier 
thereof, there may be stated, in lieu of the phrase ``bottled by'', 
``packed by'', or ``filled by'', followed by the bottler's name (or 
trade name) and address, the phrases ``blended by'', ``made by'', 
``prepared by'', ``manufactured by'', or ``produced by'' (whichever may 
be appropriate to the act of rectification involved) followed by the 
name (or trade name), and the address (or addresses) of the rectifier.
    (5) In addition to the requirements of paragraphs (a)(1) and (a)(2) 
of this paragraph, the labels of bottled in bond spirits shall bear the 
real name of the distillery or the trade name under which the distillery 
produced and warehoused the spirits, the number of the plant in which 
produced and the number of the plant in which bottled.
    (6) The label may state the address of the proprietor's principal 
place of business in lieu of the place where the bottling, distilling or 
rectification operation occurred, if the address where the operation 
occurred is indicated by printing, coding, or other markings, on the 
label or on the bottle.
    (b) ``Imported by''. (1) On labels of imported distilled spirits, 
bottled prior to importation, there shall be stated the words ``imported 
by'', ``imported exclusively by'', or a similar appropriate phrase, and 
immediately thereafter the name of the importer, or exclusive agent, or 
sole distributor, or other person responsible for the importation, 
together with the principal place of business in the United States of 
such person.
    (2) On labels of imported distilled spirits bottled after 
importation there shall be stated:
    (i) The name of the bottler and place where bottled, immediately 
preceded by the words ``bottled by'', ``packed by'', or ``filled by''; 
or
    (ii) The name of the bottler and place where bottled, immediately 
preceded by the words ``bottled by'', ``packed by'', or ``filled by'' 
and in conjunction therewith the name and address of the person 
responsible for the importation, in the manner prescribed in paragraph 
(b)(1) of this section; or
    (iii) The name and principal place of business in the United States 
of the person responsible for the importation, if the spirits are 
bottled for such person, immediately preceded by the phrase ``imported 
by and bottled (packed), (filled) in the United States for'' (or a 
similar appropriate phrase); or,
    (iv) In the case of imported distilled spirits bottled after 
importation by the person responsible for the importation, the words 
``imported and bottled (packed), (filled) by'', ``imported and bottled 
(packed), (filled) exclusively by'', or a similar appropriate phrase, 
and immediately thereafter the name of such person and the address of 
the place where bottled or the address of such person's principal place 
of business.
    (c) Post office address. The ``place'' stated shall be the post 
office address, except that the street address may be omitted. No 
additional places or addresses shall be stated for the same person, firm 
or corporation, unless (1) such person or retailer is actively engaged 
in the conduct of an additional bona fide and actual alcoholic beverage

[[Page 64]]

business at such additional place or address, and (2) the label also 
contains in direct conjunction therewith, appropriate descriptive 
material indicating the function occurring at such additional place or 
address.
    (d) State of distillation. Except in the case of ``light whisky'', 
``blended light whisky'', ``blended whisky'', ``a blend of straight 
whiskies'', or ``spirit whisky'', the State of distillation shall be 
shown on the label of any whisky produced in the United States if the 
whisky is not distilled in the State given in the address on the brand 
label. The appropriate TTB officer may, however, require the State of 
distillation to be shown on the label or he may permit such other 
labeling as may be necessary to negate any misleading or deceptive 
impression which might be created as to the actual State of 
distillation. In the case of ``light whisky'', as defined in Sec.  
5.22(b)(3), the State of distillation shall not appear in any manner on 
any label, when the appropriate TTB officer finds such State is 
associated by consumers with an American type whisky, except as a part 
of a name and address as set forth in paragraph (a) of this section.
    (e) Country of origin. On labels of imported distilled spirits there 
shall be stated the country of origin in substantially the following 
form ``Product of ------------'', the blank to be filled in with the 
name of the country of origin.
    (f) Trade names. The trade name of any permittee appearing on any 
label must be identical to the trade name listed on the permittee's 
basic permit.

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 
981, as amended))

[T.D. 7020, 34 FR 20637, Dec. 30, 1969, as amended by T.D. ATF-62, 44 FR 
71621, Dec. 11, 1979; T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; T.D. ATF-
259, 52 FR 41423, Oct. 28, 1987; T.D. ATF-260, 52 FR 42101, Nov. 3, 
1987; T.D. ATF-425, 65 FR 11891, Mar. 7, 2000]



Sec.  5.37  Alcohol content.

    (a) Statements--(1) Mandatory statement. The alcohol content for 
distilled spirits shall be stated in percent-alcohol-by-volume. Products 
such as ``Rock and Rye. or similar products containing a significant 
amount of solid material shall state the alcohol content at the time of 
bottling as follows: ``Bottled at ------ percent-alcohol-by-volume.''
    (2) Optional statement. In addition, the label may also state the 
alcohol content in degrees of proof if this information appears in 
direct conjunction (i.e. with no intervening material) with the 
statement expressed in percent-alcohol-by-volume. If both forms of 
alcohol content are shown, the optional statement in degrees of proof 
shall be placed in parentheses, in brackets, or otherwise distinguished 
from the mandatory statement in percent-alcohol-by-by-volume to 
emphasize the fact that both expressions of alcohol content mean the 
same thing.
    (b) Tolerances. The following tolerances shall be allowed (without 
affecting the labeled statement of alcohol content) for losses of 
alcohol content occurring during bottling:
    (1) Not to exceed 0.25 percent alcohol by volume for spirits 
containing solids in excess of 600 mg per 100 ml; or
    (2) Not to exceed 0.25 percent alcohol by volume for any spirits 
product bottled in 50 or 100 ml size bottles; or
    (3) Not to exceed 0.15 percent alcohol by volume for all other 
spirits.

(Approved by the Office of Management and Budget under Control Number 
1512-0482)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 
5301(a)); 49 Stat. 917, as amended (27 U.S.C. 205(e))

[T.D. ATF-237, 51 FR 36394, Oct. 10, 1986, as amended by T.D. ATF-288, 
54 FR 47769, Nov. 17, 1989]



Sec.  5.38  Net contents.

    (a) Bottles conforming to metric standards of fill. The net contents 
of distilled spirits shall be stated in the same manner and form as set 
forth in the standards of fill in Sec.  5.47a.
    (b) Bottles not conforming to the metric standards of fill. The net 
contents for distilled spirits bottled before January 1, 1980, in 
bottles not conforming to the metric standards of fill, shall be stated 
in the same manner and form as set forth in Sec.  5.47(a), except for 
cordials and liqueurs, cocktails, highballs, bitters and specialties, as 
specified by the Administrator. The net contents for these specialty 
products shall be stated in U.S. measure (i.e., gallons, quarts, pints, 
fluid ounces).

[[Page 65]]

    (c) Net contents marked in bottles. The net contents need not be 
marked on any lable if they are legibly blown, etched, sandblasted, 
marked by underglaze coloring, or otherwise permanently marked by any 
method approved by the appropriate TTB officer on the side, front, or 
back of the container in an unobscured location. containers of 200 ml or 
greater capacity shall bear letters and figures of not less than one-
quarter inch height.
    (d) Qualifying statements. Words or phrases qualifying statements of 
net contents are prohibited.

(Sec. 5, 49 Stat. 981, as amended (27 U.S.C. 205); 26 U.S.C. 5301)

[T.D. ATF-146, 48 FR 43321, Sept. 23, 1983, as amended by T.D. ATF-249, 
52 FR 5956, Feb. 27, 1987]



Sec.  5.39  Presence of neutral spirits and coloring, flavoring, and blending materials.

    (a) Neutral spirits and name of commodity. (1) In the case of 
distilled spirits (other than cordials, liqueurs, and specialties) 
produced by blending or rectification, if neutral spirits have been used 
in the production thereof, there shall be stated the percentage of 
neutral spirits so used and the name of the commodity from which such 
neutral spirits have been distilled. The statement of percentage and the 
name of the commodity shall be made in substantially the following form: 
``--------% neutral spirits distilled from -------------- (insert grain, 
cane products, or fruit as appropriate)''; or ``--------% neutral 
spirits (vodka) distilled from -------------- (insert grain, cane 
products, or fruit, as appropriate)''; or ``--------% grain (cane 
products), (fruit) neutral spirits'', or ``--------% grain spirits.''
    (2) In the case of neutral spirits or of gin produced by a process 
of continuous distillation, there shall be stated the name of the 
commodity from which such neutral spirits or gin have been distilled. 
The statement of the name of the commodity shall be made in 
substantially the following form: ``Distilled from grain'', or 
``Distilled from cane products'', or ``Distilled from fruit''.
    (b) Coloring materials. The words ``artifically colored'' shall be 
stated on the label of any distilled spirits containing synthetic or 
natural materials which primarily contribute color, or when the label 
conveys the impression that the color is derived from a source other 
than the actual source, except that:
    (1) If no coloring material other than natural flavoring material 
has been added, there may be stated in lieu of the words ``artificially 
colored'' a truthful and adequate statement of the source of the color;
    (2) If no coloring material other than those certified as suitable 
for use in foods by the Food and Drug Administration has been added, 
there may be stated in lieu of the words ``artificially colored,'' the 
words ``certified color added''; and
    (3) If no coloring material other than caramel has been added, there 
may be stated in lieu of the words ``artificially colored,'' the words 
``colored with caramel,'' or a substantially similar statement, but no 
such statement is required for the use of caramel in brandy, rum, or 
tequila, or in any type of whisky other than straight whisky.
    (c) Treatment with wood. The words ``colored and flavored with wood 
------ (insert chips, slabs, etc., as appropriate)'' shall be stated as 
a part of the class and type designation for whisky and brandy treated, 
in whole or in part, with wood through percolation, or otherwise, during 
distillation or storage, other than through contact with the oak 
container. Provided, that the above statement shall not apply to brandy 
treated with an infusion of oak chip in accordance with Sec.  5.23(a).

[T.D. 720, 34 FR 20637, Dec. 30, 1969, as amended by T.D. ATF-94, 46 FR 
55097, Nov. 6, 1981; T.D. ATF-292, 55 FR 1065, Jan. 11, 1990]



Sec.  5.40  Statements of age and percentage.

    (a) Statements of age and percentage for whisky. In the case of 
straight whisky bottled in conformity with the bottled in bond labeling 
requirements and of domestic or foreign whisky, whether or not mixed or 
blended, all of which is 4 years old or more, statements of age and 
percentage are optional. As to all other whiskies there shall be stated 
the following:

[[Page 66]]

    (1) In the case of whisky, whether or not mixed or blended but 
containing no neutral spirits, the age of the youngest whisky. The age 
statement shall read substantially as follows: ``------ years old.''
    (2) In the case of whisky, containing neutral spirits, if any of the 
straight whisky and/or other whisky is less than 4 years old, the 
percentage by volume of straight whisky and/or other whisky, and the age 
of the straight whisky (the youngest if two or more) and the age of such 
other whisky (the youngest if two or more). If all the straight whisky 
and/or other whisky is 4 years or more old, the age and percentage 
statement for such whiskies is optional. The age and percentage 
statement for straight whiskies and/or other whisky, whether required or 
optional, shall be stated in immediate conjunction with the neutral 
spirits statement required by Sec.  5.39, and shall read substantially 
as follows:
    (i) If only one straight whisky and no other whisky is contained in 
the blend: ``---- percent straight whisky ---- years old.''
    (ii) If more than one straight whisky and no other whisky is 
contained in the blend: ``---- percent straight whiskies ---- years or 
more old.'' The age blank shall be filled in with the age of the 
youngest straight whisky. In lieu of the foregoing, a statement may be 
made of the ages and percentages of each of the straight whiskies 
contained in the blend: ``---- percent straight whisky ---- years old, 
---- percent straight whisky ---- years old, and ---- percent straight 
whisky ---- years old.''
    (iii) If only one straight whisky and one other whisky is contained 
in the blend: ``---- percent straight whisky ---- years old, ---- 
percent whisky ---- years old.''
    (iv) If more than one straight whisky and more than one other whisky 
is contained in the blend: ``---- percent straight whiskies ---- years 
or more old, ---- percent whiskies ---- years or more old.'' The age 
blanks shall be filled in with the ages of the youngest straight whisky 
and the youngest other whisky. In lieu of the foregoing, a statement may 
be made of the ages and percentages of each of the straight whiskies and 
other whiskies contained in the blend: ``---- percent straight whisky --
-- years old, ---- percent straight whisky ---- years old, ---- percent 
whisky ---- years old, and ---- percent whisky ---- years old.''
    (3) In the case of imported whiskies described in Sec.  5.22(l), 
Class 12, the labels shall state the ages and percentages in the same 
manner and form as is required for the same type of whisky produced in 
the United States.
    (4) Notwithstanding the foregoing provisions of this paragraph, in 
the case of whisky produced in the United States and stored in reused 
oak containers, except for corn whisky, and for light whisky produced on 
or after January 26, 1968, there shall be stated in lieu of the words 
``---- years old'' the period of storage in reused oak containers as 
follows: ``---- stored ---- years in reused cooperage.''
    (5) Optional age statements shall appear in the same form as 
required age statements.
    (b) Statements of age for rum, brandy, and Tequila. Age may, but 
need not, be stated on labels of rums, brandies, and Tequila, except 
that an appropriate statement with respect to age shall appear on the 
brand label in case of brandy (other than immature brandies and fruit 
brandies which are not customarily stored in oak containers) not stored 
in oak containers for a period of at least 2 years. If age is stated, it 
shall be substantially as follows: ``---- years old''; the blank to be 
filled in with the age of the youngest distilled spirits in the product.
    (c) Statement of storage for grain spirits. In case of grain 
spirits, the period of storage in oak containers may be stated in 
immediate conjunction with the required percentage statement; for 
example, ``----% grain spirits stored ---- years in oak containers.''
    (d) Other distilled spirits. Age, maturity, or similar statements or 
representations as to neutral spirits (except for grain spirits as 
stated in paragraph (c) of this section), gin, liqueurs, cordials, 
cocktails, highballs, bitters, flavored brandy, flavored gin, flavored 
rum, flavored vodka, flavored whisky, and specialties are misleading and 
are prohibited from being stated on any label.

[[Page 67]]

    (e) Miscellaneous age representations. (1) Age may be understated 
but shall not be overstated.
    (2) If any age, maturity, or similar representation is made relative 
to any distilled spirits (such representations for products enumerated 
in paragraph (d) of this section are prohibited), the age shall also be 
stated on all labels where such representation appears, and in a manner 
substantially as conspicuous as such representation: Provided. That the 
use of the word ``old'' or other word denoting age, as part of the brand 
name, shall not be deemed to be an age representation: And provided 
further, That the labels of whiskies and brandies (except immature 
brandies) not required to bear a statement of age, and rum and Tequila 
aged for not less than 4 years, may contain general inconspicuous age, 
maturity or similar representations without the label bearing an age 
statement.

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 
981, as amended))

[T.D. 7020, 34 FR 20637, Dec. 30, 1969, as amended by T.D. ATF-62, 44 FR 
71621, Dec. 11, 1979; T.D. ATF-198, 50 FR 8464, Mar. 1, 1985]



Sec.  5.41  Bottle cartons, booklets and leaflets.

    (a) General. An individual covering, carton, or other container of 
the bottle used for sale at retail (other than a shipping container), or 
any written, printed, graphic, or other matter accompanying the bottle 
to the consumer buyer shall not contain any statement, design, device, 
or graphic, pictorial, or emblematic representation that is prohibited 
by Sec. Sec.  5.31 through 5.42 on labels.
    (b) Sealed opaque cartons. If bottles are enclosed in sealed opaque 
coverings, cartons, or other containers used for sale at retail (other 
than shipping containers), such coverings, cartons, or other containers 
must bear all mandatory label information.
    (c) Other cartons. (1) If an individual covering, carton, or other 
container of the bottle used for sale at retail (other than a shipping 
container) is so designed that the bottle is readily removable, it may 
display any information which is not in conflict with the label on the 
bottle contained therein.
    (2) Cartons displaying brand names and/or designations must display 
such names and designations in their entirety--brand names required to 
be modified, e.g. by ``Brand'' or ``Product of U.S.A.'', must also 
display such modification.
    (3) Specialty products for which a truthful and adequate statement 
of composition is required must display such statement.

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-36, 41 FR 
47426, Oct. 29, 1976]



Sec.  5.42  Prohibited practices.

    (a) Statements on labels. Bottles containing distilled spirits, or 
any labels on such bottles, or any individual covering, carton, or other 
container of such bottles used for sale at retail, or any written, 
printed, graphic, or other matter accompanying such bottles to the 
consumer shall not contain:
    (1) Any statement that is false or untrue in any particular, or 
that, irrespective of falsity, directly, or by ambiguity, omission, or 
inference, or by the addition of irrelevant, scientific or technical 
matter, tends to create a misleading impression.
    (2) Any statement that is disparaging of a competitor's product.
    (3) Any statement, design, device, or representation which is 
obscene or indecent.
    (4) Any statement, design, device, or representation of or relating 
to analyses, standards, or tests, irrespective of falsity, which the 
appropriate TTB officer finds to be likely to mislead the consumer.
    (5) Any statement, design, device, or representation of or relating 
to any guarantee, irrespective of falsity, which the appropriate TTB 
officer finds to be likely to mislead the consumer. Money-back 
guarantees are not prohibited.
    (6) A trade or brand name that is the name of any living individual 
of public prominence, or existing private or public organization, or is 
a name that is in simulation or is an abbreviation thereof, or any 
graphic, pictorial, or emblematic representation of any such individual 
or organization, if the use of such name or representation is likely to 
falsely lead the consumer to believe

[[Page 68]]

that the product has been endorsed, made, or used by, or produced for, 
or under the supervision of, or in accordance with the specifications 
of, such individual or organization: Provided, That this paragraph shall 
not apply to the use of the name of any person engaged in business as a 
distiller, rectifier, blender, or other producer, or as an importer, 
wholesaler, retailer, bottler, or warehouseman, of distilled spirits, 
nor to the use by any person of a trade or brand name that is the name 
of any living individual of public prominence or existing private or 
public organization, provided such trade or brand name was used by him 
or his predecessors in interest prior to August 29, 1935.
    (b) Miscellaneous. (1) Labels shall not be of such design as to 
resemble or simulate a stamp of the U.S. Government or any State or 
foreign government. Labels, other than stamps authorized or required by 
this or any other government, shall not state or indicate that the 
distilled spirits are distilled, blended, made, bottled, or sold under, 
or in accordance with, any municipal, State, Federal, or foreign 
authorization, law, or regulations, unless such statement is required or 
specifically authorized by Federal, State, municipal, or foreign law or 
regulations. The statements authorized by this part to appear on labels 
for domestic distilled spirits are ``Distilled (produced, barreled, 
warehoused, blended, or bottled, or any combination thereof, as the case 
may be) under United States (U.S.) Government supervision'', or in the 
case of distilled spirits labeled as bottled in bond, ``Bottled in bond 
under United States (U.S.) Government supervision''. If the municipal, 
State, or Federal Government permit number is stated on a label, it 
shall not be accompanied by any additional statement relating thereto.
    (2) If imported distilled spirits are covered by a certificate of 
origin or of age issued by a duly authorized official of the appropriate 
foreign government, the label, except where prohibited by the foreign 
government, may refer to such certificate or the fact of such 
certification, but shall not be accompanied by any additional statement 
relating thereto. The reference to such certificate or certification 
shall, in the case of Cognac, be substantially in the following form: 
``This product accompanied at the time of importation by an `Acquit 
Regional Jaune d'Or' issued by the French Government, indicating that 
this grape brandy was distilled in the Cognac Region of France''; and in 
the case of other distilled spirits, substantially in the following 
form: ``This product accompanied at time of importation by a certificate 
issued by the ---- government (name of government) indicating that the 
product is ---- (class and type as required to be stated on the label), 
and (if label claims age) that none of the distilled spirits are of an 
age less than stated on this label.''
    (3) The words ``bond'', ``bonded'', ``bottled in bond'', ``aged in 
bond'', or phrases containing these or synonymous terms, shall not be 
used on any label or as part of the brand name of domestic distilled 
spirits unless the distilled spirits are:
    (i) Composed of the same kind of spirits produced from the same 
class of materials;
    (ii) Produced in the same distilling season by the same distiller at 
the same distillery;
    (iii) Stored for at least four years in wooden containers wherein 
the spirits have been in contact with the wood surface except for gin 
and vodka which must be stored for at least four years in wooden 
containers coated or lined with paraffin or other substance which will 
preclude contact of the spirits with the wood surface;
    (iv) Unaltered from their original condition or character by the 
addition or subtraction of any substance other than by filtration, chill 
proofing, or other physical treatments (which do not involve the 
addition of any substance which will remain incorporated in the finished 
product or result in a change in class or type);
    (v) Reduced in proof by the addition of pure water only to 100 
degrees of proof; and
    (vi) Bottles at 100 degrees of proof.

In addition to the requirements of Sec.  5.36(a) (1) or (2), the label 
shall bear the real name of the distillery or the trade name under which 
the distillery produced and warehoused the spirits, and the plant (or 
registered distillery)

[[Page 69]]

number in which produced; and the plant number in which bottled. The 
label may also bear the name or trade name of the bottler.
    (4) The words ``bond'', ``bonded'', ``bottled in bond'', ``aged in 
bond'', or phrases containing these or synonymous terms, shall not be 
used on any label or as part of the brand name of imported distilled 
spirits unless the distilled spirits meet in all respects the 
requirements applicable to distilled spirits bottled for domestic 
consumption, so labeled, and unless the laws and regulations of the 
country in which such distilled spirits are produced authorize the 
bottling of distilled spirits in bond and require or specifically 
authorize such distilled spirits to be so labeled. All spirits labeled 
as ``bonded'', ``bottled in bond'', or ``aged in bond'' pursuant to the 
provisions of this paragraph shall bear in direct conjunction with such 
statement and in script, type, or printing substantially as conspicuous 
as that used on such statement, the name of the country under whose laws 
and regulations such distilled spirits were so bottled.
    (5) The word ``pure'' shall not be stated upon labels unless:
    (i) It refers to a particular ingredient used in the production of 
the distilled spirits, and is a truthful representation about that 
ingredient; or
    (ii) It is part of the bona fide name of a permittee or retailer for 
whom the distilled spirits are bottled; or
    (iii) It is part of the bona fide name of the permittee who bottled 
the distilled spirits.
    (6) Distilled spirits shall not be labeled as ``double distilled'' 
or ''triple distilled'' or any similar term unless it is a truthful 
statement of fact; except that ``double distilled'' or ``triple 
distilled'' shall not be permitted on labels of distilled spirits 
produced by the redistillation method when a second or third 
distillation step is a necessary distillation process for the production 
of the product.
    (7) Labels shall not contain any statement, design, device, or 
pictorial representation which the appropriate TTB officer finds relates 
to, or is capable of being construed as relating to, the armed forces of 
the United States, or the American flag, or any emblem, seal, insignia, 
or decoration associated with such flag or armed forces; nor shall any 
label contain any statement, design, device, or pictorial representation 
of or concerning any flag, seal, coat of arms, crest or other insignia, 
likely to mislead the consumer to believe that the product has been 
endorsed, made, or used by, or produced for, or under the supervision 
of, or in accordance with the specifications of the government, 
organization, family, or individual with whom such flag, seal, coat of 
arms, crest, or insignia is associated.
    (8) Health-related statements--(i) Definitions. When used in this 
paragraph (b)(8), terms are defined as follows:
    (A) Health-related statement means any statement related to health 
(other than the warning statement required by Sec.  16.21 of this 
chapter) and includes statements of a curative or therapeutic nature 
that, expressly or by implication, suggest a relationship between the 
consumption of alcohol, distilled spirits, or any substance found within 
the distilled spirits, and health benefits or effects on health. The 
term includes both specific health claims and general references to 
alleged health benefits or effects on health associated with the 
consumption of alcohol, distilled spirits, or any substance found within 
the distilled spirits, as well as health-related directional statements. 
The term also includes statements and claims that imply that a physical 
or psychological sensation results from consuming the distilled spirits, 
as well as statements and claims of nutritional value (e.g., statements 
of vitamin content). Statements concerning caloric, carbohydrate, 
protein, and fat content do not constitute nutritional claims about the 
product.
    (B) Specific health claim is a type of health-related statement 
that, expressly or by implication, characterizes the relationship of the 
distilled spirits, alcohol, or any substance found within the distilled 
spirits, to a disease or health-related condition. Implied specific 
health claims include statements, symbols, vignettes, or other forms of 
communication that suggest, within the context in which they are 
presented, that a relationship exists between distilled spirits, 
alcohol, or any

[[Page 70]]

substance found within the distilled spirits, and a disease or health-
related condition.
    (C) Health-related directional statement is a type of health-related 
statement that directs or refers consumers to a third party or other 
source for information regarding the effects on health of distilled 
spirits or alcohol consumption.
    (ii) Rules for labeling--(A) Health-related statements. In general, 
labels may not contain any health-related statement that is untrue in 
any particular or tends to create a misleading impression as to the 
effects on health of alcohol consumption. TTB will evaluate such 
statements on a case-by-case basis and may require as part of the 
health-related statement a disclaimer or some other qualifying statement 
to dispel any misleading impression conveyed by the health-related 
statement.
    (B) Specific health claims. (1) TTB will consult with the Food and 
Drug Administration (FDA), as needed, on the use of a specific health 
claim on a distilled spirits label. If FDA determines that the use of 
such a labeling claim is a drug claim that is not in compliance with the 
requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not 
approve the use of that specific health claim on a distilled spirits 
label.
    (2) TTB will approve the use of a specific health claim on a 
distilled spirits label only if the claim is truthful and adequately 
substantiated by scientific or medical evidence; sufficiently detailed 
and qualified with respect to the categories of individuals to whom the 
claim applies; adequately discloses the health risks associated with 
both moderate and heavier levels of alcohol consumption; and outlines 
the categories of individuals for whom any levels of alcohol consumption 
may cause health risks. This information must appear as part of the 
specific health claim.
    (C) Health-related directional statements. A statement that directs 
consumers to a third party or other source for information regarding the 
effects on health of distilled spirits or alcohol consumption is 
presumed misleading unless it--
    (1) Directs consumers in a neutral or other non-misleading manner to 
a third party or other source for balanced information regarding the 
effects on health of distilled spirits or alcohol consumption; and
    (2)(i) Includes as part of the health-related directional statement 
the following disclaimer: ``This statement should not encourage you to 
drink or to increase your alcohol consumption for health reasons;'' or
    (ii) Includes as part of the health-related directional statement 
some other qualifying statement that the appropriate TTB officer finds 
is sufficient to dispel any misleading impression conveyed by the 
health-related directional statement.

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 
981, as amended))

[T.D. 7020, 34 FR 20637, Dec. 30, 1969, as amended by T.D. ATF-62, 44 FR 
71621, Dec. 11, 1979; T.D. ATF-180, 49 FR 31673, Aug. 8, 1984; 49 FR 
35768. Sept. 12, 1984; T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 
23410, June 4, 1985; TTB T.D.-1, 68 FR 10104, Mar. 3, 2003]



        Subpart E_Standards of Fill for Bottled Distilled Spirits



Sec.  5.45  Application.

    No person engaged in business as a distiller, rectifier, importer, 
wholesaler, or warehouseman and bottler, directly or indirectly, or 
through an affiliate, shall sell or ship or deliver for sale or 
shipment, or otherwise introduce in interstate or foreign commerce, or 
receive therein or remove from customs custody any distilled spirits in 
bottles unless such distilled spirits are bottled and packed in 
conformity with Sec. Sec.  5.46 through 5.47a.

(Sec. 5, 49 Stat. 981, as amended (27 U.S.C. 205); 26 U.S.C. 5301)

[T.D. ATF-25, 41 FR 10221, Mar. 10, 1976; T.D. ATF-146, 48 FR 43321, 
Sept. 23, 1983]



Sec.  5.46  Standard liquor bottles.

    (a) General. A standard liquor bottle shall be one so made and 
formed, and so filled, as not to mislead the purchaser. An individual 
carton or other container of a bottle shall not be so designed as to 
mislead purchasers as to the size of the bottles.
    (b) Headspace. A liquor bottle of a capacity of 200 milliliters or 
more shall be held to be so filled as to mislead the

[[Page 71]]

purchaser if it has a headspace in excess of 8 percent of the total 
capacity of the bottle after closure.
    (c) Design. A liquor bottle shall be held (irrespective of the 
correctness of the stated net contents) to be so made and formed as to 
mislead the purchaser, if its actual capacity is substantially less than 
the capacity it appears to have upon visual examination under ordinary 
conditions of purchase or use.
    (d) Exceptions--(1) Distinctive liquor bottles. The headspace and 
design requirements in paragraphs (b) and (c) of this section do not 
apply to liquor bottles that are specifically exempted by the 
appropriate TTB officer, pursuant to an application filed by the bottler 
or importer.
    (2) Cross reference. For procedures regarding the issuance, denial 
and revocation of distinctive liquor bottle approvals, as well as appeal 
procedures, see part 13 of this chapter.

(Sec. 5, 49 Stat. 981, as amended (27 U.S.C. 205); 26 U.S.C. 5301)

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-25, 41 FR 
10221, Mar. 10, 1976; 41 FR 11022, Mar. 16, 1976; T.D. ATF-62, 44 FR 
71622, Dec. 11, 1979; T.D. ATF-146, 48 FR 43321, Sept. 23, 1983; T.D. 
ATF-406, 64 FR 2129, Jan. 13, 1999]



Sec.  5.47  Standards of fill (distilled spirits bottled before January 1, 1980).

    (a) Authorized standards of fill. The standards of fill for all 
distilled spirits, whether domestically bottled, or imported, subject to 
the tolerances allowed in this section, shall be as follows:

1 gallon.                             \4/5\ pint.
\1/2\ gallon.                         \1/2\ pint.
1 quart.                              \1/8\ pint.
\4/5\ quart.                          \1/10\ pint.
1 pint.                               \1/16\ pint (brandy only).
 

    (b) Tolerances. The following tolerances shall be allowed:
    (1) Discrepancies due to errors in measuring which occur in filling 
conducted in compliance with good commercial practice.
    (2) Discrepancies due to differences in the capacity of bottles, 
resulting solely from unavoidable difficulties in manufacturing such 
bottles to a uniform capacity: Provided, That no greater tolerance shall 
be allowed in case of bottles which, because of their design, cannot be 
made of approximately uniform capacity than is allowed in case of 
bottles which can be manufactured so as to be of approximately uniform 
capacity.
    (3) Discrepancies in measure due to differences in atmospheric 
conditions in various places and which unavoidably result from the 
ordinary and customary exposure of alcoholic beverages in bottles to 
evaporation. The reasonableness of discrepancies under this paragraph 
shall be determined on the facts in each case.
    (c) Unreasonable shortages. Unreasonable shortages in certain of the 
bottles in any shipment shall not be compensated by overages in other 
bottles in the same shipment.
    (d) Limitations. This section does not apply after December 31, 
1979.

(Sec. 5, 49 Stat. 981, as amended (27 U.S.C. 205); 26 U.S.C. 5301)

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-25, 41 FR 
10221, Mar. 10, 1976; T.D. ATF-146, 48 FR 43321, Sept. 23, 1983]



Sec.  5.47a  Metric standards of fill (distilled spirits bottled after December 31, 1979).

    (a) Authorized standards of fill. The standards of fill for 
distilled spirits are the following:
    (1) For containers other than cans described in paragraph (a)(2), of 
this section--

1.75 liters
1.00 liter
750 milliliters
500 milliliters (Authorized for bottling until June 30, 1989)
375 milliliters
200 milliliters
100 milliliters
50 milliliters

    (2) For metal containers which have the general shape and design of 
a can, which have a closure which is an integral part of the container, 
and which cannot be readily reclosed after opening--

355 milliliters
200 milliliters
100 milliliters
50 milliliters

    (b) Tolerances. The following tolerances shall be allowed:

[[Page 72]]

    (1) Discrepancies due to errors in measuring which occur in filling 
conducted in compliance with good commercial practice.
    (2) Discrepancies due to differences in the capacity of bottles, 
resulting solely from unavoidable difficulties in manufacturing such 
bottles to a uniform capacity: Provided, That no greater tolerance shall 
be allowed in case of bottles which, because of their design, cannot be 
made of approximately uniform capacity than is allowed in case of 
bottles which can be manufactured so as to be of approximately uniform 
capacity.
    (3) Discrepancies in measure due to differences in atmospheric 
conditions in various places and which unavoidably result from the 
ordinary and customary exposure of alcoholic beverages in bottles to 
evaporation. The reasonableness of discrepancies under this paragraph 
shall be determined on the facts in each case.
    (c) Unreasonable shortages. Unreasonable shortages in certain of the 
bottles in any shipment shall not be compensated by overages in other 
bottles in the same shipment.
    (d) Distilled spirits bottled before January 1, 1980. Distilled 
spirits bottled domestically before January 1, 1980, may be marketed 
after December 31, 1979, if such distilled spirits were bottled in 
accordance with Sec.  5.47. (See Sec.  5.53 for similar provisions 
relating to distilled spirits imported in original containers.)

(Sec. 5, 49 Stat. 981, as amended (27 U.S.C. 203); 26 U.S.C. 5301)

[T.D. ATF-25, 41 FR 10221, Mar. 10, 1976, as amended at 41 FR 11022, 
Mar. 16, 1976; 41 FR 11497, Mar. 19, 1976; T.D. ATF-35, 41 FR 46859, 
Oct. 26, 1976; T.D. ATF-62, 44 FR 71622, Dec. 11, 1979; T.D. ATF-146, 48 
FR 43321, Sept. 23, 1983; T.D. ATF-228, 51 FR 16170, May 1, 1986; T.D. 
ATF-326, 57 FR 31128, July 14, 1992]



 Subpart F_Requirements for Withdrawal From Customs Custody of Bottled 
                       Imported Distilled Spirits



Sec.  5.51  Label approval and release.

    (a) Certificate of label approval. Bottled distilled spirits shall 
not be released from Customs custody for consumption unless there is 
deposited with the appropriate Customs officer at the port of entry the 
original or a photostatic copy of an approved certificate of label 
approval, TTB Form 5100.31.
    (b) Release. If the original or photostatic copy of TTB Form 5100.31 
has been approved, the brand or lot of distilled spirits bearing labels 
identical with those shown thereon may be released from U.S. Customs 
custody.
    (c) Relabeling. Imported distilled spirits in U.S. Customs custody 
which are not labeled in conformity with certificates of label approval 
issued by the appropriate TTB officer must be relabeled prior to release 
under the supervision of the Customs officers of the port at which the 
spirits are located.
    (d) Statements of process. TTB Forms 5100.31 covering labels for gin 
bearing the word ``distilled'' as a part of the designation shall be 
accompanied by a statement prepared by the manufacturer, setting forth a 
step-by-step description of the manufacturing process.
    (e) Cross reference. For procedures regarding the issuance, denial, 
and revocation of certificates of label approval, as well as appeal 
procedures, see part 13 of this chapter.

[T.D. ATF-66, 45 FR 40549, June 13, 1980, as amended by T.D. ATF-94, 46 
FR 55097, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. 
ATF-359, 59 FR 42160, Aug. 17, 1994; T.D. ATF-406, 64 FR 2129, Jan. 13, 
1999]



Sec.  5.52  Certificates of age and origin.

    (a) Scotch, Irish, and Canadian whiskies. Scotch, Irish, and 
Canadian whiskies, imported in bottles, shall not be released from 
customs custody for consumption unless the invoice is accompanied by a 
certificate of origin issued by a duly authorized official of the 
British, Irish, or Canadian Government, certifying (1) that the 
particular distilled spirits are Scotch, Irish, or Canadian whisky, as 
the case may be, (2) that the distilled spirits have been manufactured 
in compliance with the laws of the respective foreign governments 
regulating the manufacture of whisky for home consumption, and (3) that 
the product conforms to the requirements of the Immature Spirits Act of 
such foreign governments for spirits intended for home consumption. In 
addition, a duly authorized official of the appropriate foreign 
government

[[Page 73]]

must certify to the age of the youngest distilled spirits in the bottle. 
The age certified shall be the period during which, after distillation 
and before bottling, the distilled spirits have been stored in oak 
containers.
    (b) Brandy, Cognac, and rum. Brandy (other than fruit brandies of a 
type not customarily stored in oak containers) or Cognac, imported in 
bottles, shall not be released from customs custody for consumption 
unless accompanied by a certificate issued by a duly authorized official 
of the appropriate foreign country certifying that the age of the 
youngest brandy or Cognac in the bottle is not less than 2 years, or if 
age is stated on the label that none of the distilled spirits are of an 
age less than that stated. If the label of any rum, imported in bottles, 
contains any statement of age, the rum shall not be released from 
customs custody for consumption unless accompanied by a certificate 
issued by a duly authorized official of the appropriate foreign country, 
certifying to the age of the youngest rum in the bottle. The age 
certified shall be the period during which, after distillation and 
before bottling, the distilled spirits have been stored in oak 
containers. If the label of any fruit brandy, not stored in oak 
containers, bears any statement of storage in other type containers, the 
brandy must be accompanied by a certificate issued by a duly authorized 
official of the appropriate foreign government certifying to such 
storage. Cognac, imported in bottles, shall not be released from customs 
custody for consumption unless the invoice is accompanied by a 
certificate issued by a duly authorized official of the French 
Government, certifying that the product is grape brandy distilled in the 
Cognac region of France and entitled to be designated as ``Cognac'' by 
the laws and regulations of the French Government.
    (c) Tequila. (1) Tequila, imported in bottles, shall not be released 
from customs custody for consumption unless a certificate of a duly 
authorized official of the Mexican Government that the product is 
entitled to be designated as Tequila under the applicable laws and 
regulations of the Mexican Government is filed with the application for 
release.
    (2) If the label of any Tequila imported in bottles, contains any 
statement of age, the Tequila shall not be released from customs custody 
for consumption unless a certificate of a duly authorized official of 
the Mexican Government as to the age of the youngest Tequila in the 
bottle is filed with the application for release. The age certified 
shall be the period during which the Tequila has been stored in oak 
containers after distillation and before bottling.
    (d) Other whiskies. Whisky, as defined in Sec.  5.22(b) (1), (4), 
(5), and (6), imported in bottles, shall not be released from customs 
custody for consumption unless accompanied by a certificate issued by a 
duly authorized official of the appropriate foreign government 
certifying:
    (1) In the case of whisky, whether or not mixed or blended but 
containing no neutral spirits, (i) the class and type thereof, (ii) the 
American proof at which produced, (iii) that no neutral spirits (or 
other whisky in the case of straight whisky) has been added as a part 
thereof or included therein, whether or not for the purpose of replacing 
outage, (iv) the age of the whisky, and (v) the type of oak container in 
which such age was acquired (whether new or reused; also whether charred 
or uncharred);
    (2) In the case of whisky containing neutral spirits, (i) the class 
and type thereof, (ii) the percentage of straight whisky, if any, used 
in the blend, (iii) the American proof at which the straight whisky was 
produced, (iv) the percentage of other whisky, if any, in the blend, (v) 
the percentage of neutral spirits in the blend, and the name of the 
commodity from which distilled, (vi) the age of the straight whisky and 
the age of the other whisky in the blend, and (vii) the type of oak 
containers in which such age or ages were acquired (whether new or 
reused; also whether charred or uncharred).
    (e) Miscellaneous. Distilled spirits (other than Scotch, Irish, and 
Canadian whiskies, and Cognac) in bottles shall not be released from 
customs custody for consumption unless the invoice is accompanied by a 
certificate of origin issued by a duly authorized official of the 
appropriate foreign government, if

[[Page 74]]

the issuance of such certificates with respect to such distilled spirits 
has been authorized by the foreign government concerned, certifying as 
to the identity of the distilled spirits and that the distilled spirits 
have been manufactured in compliance with the laws of the respective 
foreign government regulating the manufacture of such distilled spirits 
for home consumption.

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-7, 38 FR 
33471, Dec. 5, 1973]



Sec.  5.53  Certificate of nonstandard fill.

    (a) Distilled spirits imported in original containers not conforming 
to the metric standards of fill prescribed in Sec.  5.47a shall not be 
released from Customs custody after December 31, 1979:
    (1) Unless the distilled spirits are accompanied by a statement 
signed by a duly authorized official of the appropriate foreign country, 
stating that the distilled spirits were bottled or packed prior to 
January 1, 1980; or
    (2) Unless the distilled spirits are being withdrawn from a Customs 
bonded warehouse or foreign trade zone into which entered on or before 
December 31, 1979.
    (b) Distilled spirits imported in 500 ml containers shall not be 
released from Customs custody after June 30, 1989:
    (1) Unless the distilled spirits are accompanied by a certificate 
issued by the government of the appropriate foreign country, stating 
that the distilled spirits were bottled or packed prior to July 1, 1989; 
or
    (2) Unless the distilled spirits are being withdrawn from a Customs 
bonded warehouse or foreign trade zone into which entered on or before 
June 30, 1989.

[T.D. ATF-25, 41 FR 10222, Mar. 10, 1976, as amended by T.D. ATF-228, 51 
FR 16170, May 1, 1986]



 Subpart G_Requirements for Approval of Labels of Domestically Bottled 
                            Distilled Spirits



Sec.  5.55  Certificates of label approval.

    (a) Requirement. Distilled spirits shall not be bottled or removed 
from a plant, except as provided in paragraph (b) of this section, 
unless the proprietor possesses a certificate of label approval, TTB 
Form 5100.31, covering the labels on the bottle, issued by the 
appropriate TTB officer pursuant to application on such form. 
Application for certificates of label approval covering labels for 
imported gin bearing the word ``distilled'' as a part of the designation 
shall be accompanied by a statement prepared by the manufacturer setting 
forth a step-by-step description of the manufacturing process.
    (b) Exemption. Any bottler of distilled spirits shall be exempt from 
the requirements in paragraph (a) of this section and Sec.  5.56 if the 
bottler possesses a certificate of exemption from label approval, TTB 
Form 5100.31, issued by the appropriate TTB officer pursuant to 
application on that Form showing that the distilled spirits to be 
bottled are not to be sold, offered for sale, or shipped or delivered 
for shipment, or otherwise introduced into interstate or foreign 
commerce.
    (c) Miscellaneous. Photoprints or other reproductions of 
certificates of label approval, or certificates of exemption are not 
acceptable as substitutes for an original or duplicate original (issued, 
on request, by the appropriate TTB officer) of a certificate. The 
original or duplicate original of such certificates shall, on demand, be 
exhibited to an authorized officer of the U.S. Government.
    (d) Cross reference. For procedures regarding the issuance, denial, 
and revocation of certificates of label approval and certificates of 
exemption from label approval, as well as appeal procedures, see part 13 
of this chapter.

[T.D. ATF-66, 45 FR 40550, June 13, 1980, as amended by T.D. ATF-94, 46 
FR 55097, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. 
ATF-406, 64 FR 2129, Jan. 13, 1999]



Sec.  5.56  Certificates of age and origin.

    Distilled spirits imported in bulk for bottling in the United States 
shall not be removed from the plant where bottled unless the bottler 
possesses certificates of age and certificates of origin applicable to 
such spirits which are similar to the certificates required by Sec.  
5.52 for like distilled spirits imported in bottles.

[[Page 75]]



               Subpart H_Advertising of Distilled Spirits



Sec.  5.61  Application.

    No person engaged in business as a distiller, rectifier, importer, 
wholesaler, or warehouseman and bottler of distilled spirits, directly 
or indirectly or through an affiliate, shall publish or disseminate or 
cause to be published or disseminated by radio or television broadcast, 
or in any newspaper, periodical, or any publication, by any sign or 
outdoor advertisement, or any other printed or graphic matter, any 
advertisement of distilled spirits, if such advertising is in, or is 
calculated to induce sales in, interstate or foreign commerce, or is 
disseminated by mail, unless such advertisement is in conformity with 
Sec. Sec.  5.61 through 5.66 of this part. Provided, that such sections 
shall not apply to outdoor advertising in place on (effective date of 
this treasury decision), but shall apply upon replacement, restoration, 
or renovation of any such advertising; and provided further, that such 
sections shall not apply to a retailer or the publisher of any 
newspaper, periodical, or other publication, or radio or television 
broadcast, unless such retailer or publisher or radio or television 
broadcaster is engaged in business as a distiller, rectifier, importer, 
wholesaler, or warehouseman and bottler of distilled spirits, directly 
or indirectly, or through an affiliate.

[T.D. ATF-180, 49 FR 31673, Aug. 8, 1984]



Sec.  5.62  Definition.

    As used in Sec. Sec.  5.61 through 5.66 of this part, the term 
``advertisement'' includes any written or verbal statement, 
illlustration, or depiction which is in, or calculated to induce sales 
in, interstate or foreign commerce, or is disseminated by mail, whether 
it appears in a newspaper, magazine, trade booklet, menu, wine card, 
leaflet, circular, mailer, book insert, catalog, promotional material, 
sales pamphlet, or in any written, printed, graphic, or other matter 
accompanying the bottle, representations made on cases or in any 
billboard, sign, other outdoor display, public transit card, other 
periodical literature, publication, or in a radio or television 
broadcast, or in any other media; except that such term shall not 
include:
    (a) Any label affixed to any bottle of distilled spirits; or any 
individual covering, carton, or other container of the bottle which 
constitute a part of the labeling under Sec. Sec.  5.31 through 5.42 of 
this part.
    (b) Any editorial or other reading material (i.e., news release) in 
any periodical or publication or newspaper for the publication of which 
no money or valuable consideration is paid or promised, directly or 
indirectly, by any permittee, and which is not written by or at the 
direction of the permittee.

[T.D. ATF-180, 49 FR 31673, Aug. 8, 1984]



Sec.  5.63  Mandatory statements.

    (a) Responsible advertiser. The advertisement shall state the name 
and address of the permittee responsible for its publication or 
broadcast. Street number and name may be omitted in the address.
    (b) Class and type. The advertisement shall contain a conspicuous 
statement of the class to which the product belongs and the type thereof 
corresponding with the statement of class and type which is required to 
appear on the label of the product.
    (c) Alcohol content--(1) Mandatory statement. The alcohol content 
for distilled spirits shall be stated in percent-alcohol-by-volume. 
Products such as ``Rock and Rye'' or similar products containing a 
significant amount of solid material shall state the alcohol content at 
the time of bottling as follows: ``Bottled at ------ percent-alcohol-by-
volume.''
    (2) Optional statement. In addition, the advertisement may also 
state the alcohol content in degrees of proof if this information 
appears in direct conjunction (i.e. with no intervening material) with 
the statement expressed in percent-alcohol-by-volume. If both forms of 
alcohol content are shown, the optional statement in degrees of proof 
shall be placed in parentheses, in brackets, or otherwise distinguished 
from the mandatory statement in percent-alcohol-by-volume to emphasize 
the fact that both expressions of alcohol content mean the same thing.
    (d) Percentage of neutral spirits and name of commodity. (1) In the 
case of

[[Page 76]]

distilled spirits (other than cordials, liqueurs, and specialties) 
produced by blending or rectification, if neutral spirits have been used 
in the production thereof, there shall be stated the percentage of 
neutral spirits so used and the name of the commodity from which such 
neutral spirits have been distilled. The statement of percentage and the 
name of the commodity shall be made in substantially the following form: 
``----% neutral spirits distilled from -------- (insert grain, cane 
products, or fruit, as appropriate)''; or ----% neutral spirits (vodka) 
distilled from -------- (insert grain, cane product, or fruit, as 
appropriate)''; or ``----% grain (cane products), (fruit) neutral 
spirits''; or ``----% grain spirits''.
    (2) In the case of neutral spirits or of gin produced by a process 
of continuous distillation, there shall be stated the name of the 
commodity from which such neutral spirits or gin has been distilled. The 
statement of the name of the commodity shall be made in substantially 
the following form: ``Distilled from grain'', or ``Distilled from cane 
products'', or ``Distilled from fruit.''
    (e) Exception. (1) If an advertisement refers to a general distilled 
spirits line or all of the distilled spirits products of one company, 
whether by the company name or by the brand name common to all the 
distilled spirits in the line, the only mandatory information necessary 
is the name and address of the responsible advertiser. This exception 
does not apply where only one type of distilled spirits is marketed 
under the specific brand name advertised.
    (2) On consumer specialty items, the only information necessary is 
the company name or brand name of the product.

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-180, 49 
FR 31674, Aug. 8, 1984; T.D. ATF-237, 51 FR 36394, Oct. 10, 1986]



Sec.  5.64  Legibility of mandatory information.

    (a) Statements required under Sec. Sec.  5.61 through 5.66 of this 
part to appear in any written, printed, or graphic advertisement shall 
be in lettering or type size sufficient to be conspicuous and readily 
legible.
    (b) In the case of signs, billboards, and displays the name and 
address of the permittee responsible for the advertisement may appear in 
type size of lettering smaller than the other mandatory information, 
provided such information can be ascertained upon closer examination of 
the sign or billboard.
    (c) Mandatory information shall be so stated as to be clearly a part 
of the advertisement and shall not be separated in any manner from the 
remainder of the advertisement.
    (d) Manadatory information for two or more products shall not be 
stated unless clearly separated.
    (e) Mandatory information shall be so stated in both the print and 
audio-visual media that it will be readily apparent to the persons 
viewing the advertisement.

[T.D. ATF-180, 49 FR 31674, Aug. 8, 1984]



Sec.  5.65  Prohibited practices.

    (a) Restrictions. An advertisement of distilled spirits shall not 
contain:
    (1) Any statement that is false or untrue in any material 
particular, or that, irrespective of falsity, directly, or by ambiguity, 
omission, or inference, or by the addition of irrelevant, scientific or 
technical matter tends to create a misleading impression.
    (2) Any statement that is disparaging of a competitor's product.
    (3) Any statement, design, device, or representation which is 
obscene or indecent.
    (4) Any statement, design, device, or representation of or relating 
to analyses, standards or tests, irrespective of falsity, which the 
appropriate TTB officer finds to be likely to mislead the consumer.
    (5) Any statement, design, device, or representation of or relating 
to any guarantee, irrespective of falsity, which the appropriate TTB 
officer finds to be likely to mislead the consumer. Money-back 
guarantees are not prohibited.
    (6) Any statement that the distilled spirits are distilled, blended, 
made, bottled, or sold under or in accordance with any municipal, State, 
Federal, or

[[Page 77]]

foreign authorization, law, or regulation, unless such statement appears 
in the manner authorized by Sec.  5.42 for labels of distilled spirits. 
If a municipal, State or Federal permit number is stated, such permit 
number shall not be accompanied by any additional statement relating 
thereto.
    (7) The words ``bond'', ``bonded'', ``bottled in bond'', ``aged in 
bond'', or phrases containing these or synonymous terms, unless such 
words or phrases appear, pursuant to Sec.  5.42, on labels of the 
distilled spirits advertised, and are stated in the advertisement in the 
manner and form in which they are permitted to appear on the label.
    (8) The word ``pure'' unless:
    (i) It refers to a particular ingredient used in the production of 
the distilled spirits, and is a truthful representation about the 
ingredient; or
    (ii) It is part of the bona fide name of a permittee or retailer 
from whom the distilled spirits are bottled; or
    (iii) It is part of the bona fide name of the permittee who bottled 
the distilled spirits.
    (9) The words ``double distilled'' or ``triple distilled'' or any 
similar terms unless it is a truthful statement of fact; except that 
``double distilled'' or ``triple distilled'' shall not be permitted in 
advertisements of distilled spirits produced by the redistillation 
method when a second or third distillation step is a necessary 
distillation process for the production of the product.
    (b) Statements inconsistent with labeling. (1) Advertisements shall 
not contain any statement concerning a brand or lot of distilled spirits 
that is inconsistent with any statement on the labeling thereof.
    (2) Any label depicted on a bottle in an advertisement shall be a 
reproduction of an approved label.
    (c) Statement of age. The advertisement shall not contain any 
statement, design, or device directly or by implication concerning age 
or maturity of any brand or lot of distilled spirits unless a statement 
of age appears on the label of the advertised product. When any such 
statement, design, or device concerning age or maturity is contained in 
any advertisement, it shall include (in direct conjunction therewith and 
with substantially equal conspicuousness) all parts of the statement, if 
any, concerning age and percentages required to be made on the label 
under the provisions of Sec. Sec.  5.31 through 5.42. An advertisement 
for any whisky or brandy (except immature brandies) which is not 
required to bear a statement of age on the label or an advertisement for 
any rum or Tequila, which has been aged for not less than 4 years may, 
however, contain inconspicuous, general representation as to age, 
maturity or other similar representations even though a specific age 
statement does not appear on the label of the advertised product and in 
the advertisement itself.
    (d) Health-related statements--(1) Definitions. When used in this 
paragraph (d), terms are defined as follows:
    (i) Health-related statement means any statement related to health 
and includes statements of a curative or therapeutic nature that, 
expressly or by implication, suggest a relationship between the 
consumption of alcohol, distilled spirits, or any substance found within 
the distilled spirits, and health benefits or effects on health. The 
term includes both specific health claims and general references to 
alleged health benefits or effects on health associated with the 
consumption of alcohol, distilled spirits, or any substance found within 
the distilled spirits, as well as health-related directional statements. 
The term also includes statements and claims that imply that a physical 
or psychological sensation results from consuming the distilled spirits, 
as well as statements and claims of nutritional value (e.g., statements 
of vitamin content). Statements concerning caloric, carbohydrate, 
protein, and fat content do not constitute nutritional claims about the 
product.
    (ii) Specific health claim is a type of health-related statement 
that, expressly or by implication, characterizes the relationship of the 
distilled spirits, alcohol, or any substance found within the distilled 
spirits, to a disease or health-related condition. Implied specific 
health claims include statements, symbols, vignettes, or other forms of 
communication that suggest, within

[[Page 78]]

the context in which they are presented, that a relationship exists 
between distilled spirits, alcohol, or any substance found within the 
distilled spirits, and a disease or health-related condition.
    (iii) Health-related directional statement is a type of health-
related statement that directs or refers consumers to a third party or 
other source for information regarding the effects on health of 
distilled spirits or alcohol consumption.
    (2) Rules for advertising--(i) Health-related statements. In 
general, advertisements may not contain any health-related statement 
that is untrue in any particular or tends to create a misleading 
impression as to the effects on health of alcohol consumption. TTB will 
evaluate such statements on a case-by-case basis and may require as part 
of the health-related statement a disclaimer or some other qualifying 
statement to dispel any misleading impression conveyed by the health-
related statement. Such disclaimer or other qualifying statement must 
appear as prominent as the health-related statement.
    (ii) Specific health claims. A specific health claim will not be 
considered misleading if it is truthful and adequately substantiated by 
scientific or medical evidence; sufficiently detailed and qualified with 
respect to the categories of individuals to whom the claim applies; 
adequately discloses the health risks associated with both moderate and 
heavier levels of alcohol consumption; and outlines the categories of 
individuals for whom any levels of alcohol consumption may cause health 
risks. This information must appear as part of the specific health claim 
and in a manner as prominent as the specific health claim.
    (iii) Health-related directional statements. A statement that 
directs consumers to a third party or other source for information 
regarding the effects on health of distilled spirits or alcohol 
consumption is presumed misleading unless it--
    (A) Directs consumers in a neutral or other non-misleading manner to 
a third party or other source for balanced information regarding the 
effects on health of distilled spirits or alcohol consumption; and
    (B)(1) Includes as part of the health-related directional statement, 
and in a manner as prominent as the health-related directional 
statement, the following disclaimer: ``This statement should not 
encourage you to drink or increase your alcohol consumption for health 
reasons;'' or
    (2) Includes as part of the health-related directional statement, 
and in a manner as prominent as the health-related directional 
statement, some other qualifying statement that the appropriate TTB 
officer finds is sufficient to dispel any misleading impression conveyed 
by the health-related directional statement.
    (e) Place of origin. The advertisement shall not represent that the 
distilled spirits were manufactured in or imported from a place or 
country other than that of their actual origin, or were produced or 
processed by one who was not in fact the actual producer or processor.
    (f) Confusion of brands. Two or more different brands or lots of 
distilled spirits shall not be advertised in one advertisement (or in 
two or more advertisements in one issue of a periodical or newspaper, or 
in one piece of other written, printed, or graphic matter) if the 
advertisement tends to create the impression that representations made 
as to one brand or lot apply to the other or others, and if as to such 
latter the representations contravene any provisions of this subpart or 
are in any respect untrue.
    (g) Flags, seals, coats of arms, crests, and other insignia. An 
advertisement shall not contain any statement, design, device, or 
pictorial representation which the appropriate TTB officer finds relates 
to, or is capable of being construed as relating to the armed forces of 
the United States, or the American flag, or any emblem, seal, insignia, 
or decoration associated with such flag or armed forces; nor shall any 
advertisement contain any statement, design, device, or pictorial 
representation of or concerning any flag, seal, coat of arms, crest, or 
other insignia, likely to mislead the consumer to believe that the 
product has been endorsed, made, or used by, or produced for, or under 
the

[[Page 79]]

supervision of, or in accordance with the specifications of the 
government, organization, family, or individual with whom such flag, 
seal, coat of arms, crest, or insignia is associated.
    (h) Deceptive advertising techniques. Subliminal or similar 
techniques are prohibited. ``Subliminal or similar techniques,'' as used 
in this part, refers to any device or technique that is used to convey, 
or attempts to convey, a message to a person by means of images or 
sounds of a very brief nature that cannot be perceived at a normal level 
of awareness.

[T.D. 7020, 34 FR 20337, Dec. 30, 1969, as amended by T.D. ATF-180, 49 
FR 31674, Aug. 8, 1984; TTB T.D.-1, 68 FR 10105, Mar. 3, 2003]



Sec.  5.66  Comparative advertising.

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

[T.D. ATF-180, 49 FR 31674, Aug. 8, 1984]



                 Subpart I_Use of the Term ``Organic.''



Sec.  5.71  Use of the term ``organic.''

    (a) Use of the term ``organic'' is optional and is treated as 
``additional information on labels'' under Sec.  5.33(f).
    (b) Any use of the term ``organic'' on a distilled spirits label or 
in advertising of distilled spirits must comply with the United States 
Department of Agriculture's (USDA) National Organic Program rules, 7 CFR 
part 205, as interpreted by the USDA.
    (c) This section applies to labels and advertising that use the term 
``organic'' on and after October 21, 2002.

[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002]



PART 6_``TIED-HOUSE''--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
6.1 General.
6.2 Territorial extent.
6.3 Application.
6.4 Jurisdictional limits.
6.5 Delegations of the Administrator.
6.6 Administrative provisions.

                          Subpart B_Definitions

6.11 Meaning of terms.

                     Subpart C_Unlawful Inducements

                                 General

6.21 Application.

                       Interest in Retail License

6.25 General.
6.26 Indirect interest.
6.27 Proprietary interest.

                       Interest in Retail Property

6.31 General.
6.32 Indirect interest.
6.33 Proprietary interest.
6.34 Mortgages.
6.35 Renting display space.

                       Furnishing Things of Value

6.41 General.
6.42 Indirect inducement through third party arrangements.
6.43 Sale of equipment.
6.44 Free warehousing.
6.45 Assistance in acquiring license.
6.46-6.47 [Reserved]

         Paying for Advertising, Display or Distribution Service

6.51 General.
6.52 Cooperative advertising.
6.53 Advertising in ballparks, racetracks, and stadiums.
6.54 Advertising in retailer publications.
6.55 Display service.
6.56 Renting display space.

                           Guaranteeing Loans

6.61 Guaranteeing loans.

                           Extension of Credit

6.65 General.
6.66 Calculation of period.

[[Page 80]]

6.67 Sales to retailer whose account is in arrears.

                               Quota Sales

6.71 Quota sales.
6.72 ``Tie-in'' sales.

                          Subpart D_Exceptions

6.81 General.
6.82 [Reserved]
6.83 Product displays.
6.84 Point of sale advertising materials and consumer advertising 
          specialties.
6.85 Temporary retailers.
6.86-6.87 [Reserved]
6.88 Equipment and supplies.
6.89-6.90 [Reserved]
6.91 Samples.
6.92 Newspaper cuts.
6.93 Combination packaging.
6.94 Educational seminars.
6.95 Consumer tasting or sampling at retail establishments.
6.96 Consumer promotions.
6.97 [Reserved]
6.98 Advertising service.
6.99 Stocking, rotation, and pricing service.
6.100 Participation in retailer association activities.
6.101 Merchandise.
6.102 Outside signs.

                           Subpart E_Exclusion

6.151 Exclusion, in general.
6.152 Practices which put retailer independence at risk.
6.153 Criteria for determining retailer independence.

    Authority: 15 U.S.C. 49-50; 27 U.S.C. 202 and 205; 44 U.S.C. 
3504(h).

    Source: T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, unless otherwise 
noted.



                     Subpart A_Scope of Regulations



Sec.  6.1  General.

    The regulations in this part, issued pursuant to section 105 of the 
Federal Alcohol Administration Act (27 U.S.C. 205), specify practices 
that are means to induce under section 105(b) of the Act, criteria for 
determining whether a practice is a violation of section 105(b) of the 
Act, and exceptions to section 105(b) of the Act. This part does not 
attempt to enumerate all of the practices that may result in a violation 
of section 105(b) of the Act. Nothing in this part shall operate to 
exempt any person from the requirements of any State law or regulation.

[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]



Sec.  6.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and Puerto Rico.



Sec.  6.3  Application.

    (a) General. This part applies only to transactions between industry 
members and retailers. It does not apply to transactions between two 
industry members (for example, between a producer and a wholesaler), or 
to transactions between an industry member and a retailer wholly owned 
by that industry member.
    (b) Transaction involving State agencies. The regulations in this 
part apply only to transactions between industry members and State 
agencies operating as retailers as defined in this part. The regulations 
do not apply to State agencies with regard to their wholesale dealings 
with retailers.



Sec.  6.4  Jurisdictional limits.

    (a) General. The regulations in this part apply where:
    (1) The industry member induces a retailer to purchase distilled 
spirits, wine, or malt beverages from such industry member to the 
exclusion in whole or in part of products sold or offered for sale by 
other persons in interstate or foreign commerce; and
    (2) If: (i) The inducement is made in the course of interstate or 
foreign commerce; or
    (ii) The industry member engages in the practice of using an 
inducement to such an extent as substantially to restrain or prevent 
transactions in interstate or foreign commerce in any such products; or
    (iii) The direct effect of the inducement is to prevent, deter, 
hinder or restrict other persons from selling or offering for sale any 
such products to such retailer in interstate or foreign commerce.
    (b) Malt beverages. In the case of malt beverages, this part applies 
to transactions between a retailer in any State and a brewer, importer, 
or wholesaler of malt beverages inside or outside

[[Page 81]]

such State only to the extent that the law of such State imposes 
requirements similar to the requirements of section 105(b) of the 
Federal Alcohol Administration Act (27 U.S.C. 205(b)), with respect to 
similar transactions between a retailer in such State and a brewer, 
importer, or wholesaler or malt beverage in such State, as the case may 
be.

[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20421, Apr. 26, 1995]



Sec.  6.5  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.6, Delegation of the Administrator's 
Authorities in 27 CFR Part 6, Tied-House. You may obtain a copy of this 
order by accessing the TTB Web site (http://www.ttb.gov) or by mailing a 
request to the Alcohol and Tobacco Tax and Trade Bureau, National 
Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16922, Apr. 4, 2006]



Sec.  6.6  Administrative provisions.

    (a) General. The Act makes applicable the provisions including 
penalties of sections 49 and 50 of Title 15, United States Code, to the 
jurisdiction, powers and duties of the Administrator under this Act, and 
to any person (whether or not a corporation) subject to the provisions 
of law administered by the Administrator under this Act. The Act also 
provides that the Administrator is authorized to require, in such manner 
and such form as he or she shall prescribe, such reports as are 
necessary to carry out the powers and duties under this chapter.
    (b) Examination and subpoena. Any appropriate TTB officer shall at 
all reasonable times have access to, for the purpose of examination, and 
the right to copy any documentary evidence of any person, partnership, 
or corporation being investigated or proceeded against. An appropriate 
TTB officer shall also have the power to require by subpoena the 
attendance and testimony of witnesses and the production of all such 
documentary evidence relating to any matter under investigation, upon a 
satisfactory showing the requested evidence may reasonably be expected 
to yield information relevant to any matter being investigated under the 
Act.
    (c) Reports required by the appropriate TTB officer--(1) General. 
The appropriate TTB officer may, as part of a trade practice 
investigation of an industry member, require such industry member to 
submit a written report containing information on sponsorships, 
advertisements, promotions, and other activities pertaining to its 
business subject to the Act conducted by, or on behalf of, or benefiting 
the industry member.
    (2) Preparation. The report will be prepared by the industry member 
in letter form, executed under the penalties of perjury, and will 
contain the information specified by the appropriate TTB officer. The 
period covered by the report will not exceed three years.
    (3) Filing. The report will be filed in accordance with the 
instructions of the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0392)

[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995. Redesignated and amended by 
T.D. ATF-428, 65 FR 52019, Aug. 28, 2000]



                          Subpart B_Definitions



Sec.  6.11  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
have the meanings given in this section. Any other term defined in the 
Federal Alcohol Administration Act and used in this part shall have the 
meaning assigned to it by that Act.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement

[[Page 82]]

of this part by TTB Order 1135.6, Delegation of the Administrator's 
Authorities in 27 CFR Part 6, Tied-House.
    Brand. For purposes of administering this part, the term ``brand'' 
refers to differences in the brand name of a product or in the nature of 
a product. Examples of different brands are products having a different 
brand name or class, type, or kind designation; appellation of origin 
(wine); vintage date (wine); age (distilled spirits); or percentage of 
alcohol. Differences in packaging such as difference in label design or 
color, or a different style, type or size of container are not 
considered different brands.
    Equipment. All functional items such as tap boxes, glassware, 
pouring racks, and similar items used in the conduct of a retailer's 
business.
    Industry member. Any person engaged in business as a distiller, 
brewer, rectifier, blender, or other producer, or as an importer or 
wholesaler, of distilled spirits, wine or malt beverages, or as a 
bottler, or warehousemen and bottler, of distilled spirits; industry 
member does not include an agency of a State or political subdivision 
thereof, or an officer or employee of such agency.
    Product. Distilled spirits, wine or malt beverages, as defined in 
the Federal Alcohol Administration Act.
    Retail establishment. Any premises where distilled spirits, wine or 
malt beverages are sold or offered for sale to consumers, whether for 
consumption on or off the premises where sold.
    Retailer. Any person engaged in the sale of distilled spirits, wine 
or malt beverages to consumers. A wholesaler who makes incidental retail 
sales representing less than five percent of the wholesaler's total 
sales volume for the preceding two-month period shall not be considered 
a retailer with respect to such incidental sales.

[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20421, Apr. 26, 1995; T.D. ATF-428, 65 FR 52020, Aug. 28, 2000; 
T.D. TTB-44, 71 FR 16922, Apr. 4, 2006]



                     Subpart C_Unlawful Inducements

                                 General



Sec.  6.21  Application.

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

                       Interest in Retail License



Sec.  6.25  General.

    The act by an industry member of acquiring or holding any interest 
in any license (State, county or municipal) with respect to the premises 
of a retailer constitutes a means to induce within the meaning of the 
Act.

[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]



Sec.  6.26  Indirect interest.

    Industry member interest in retail licenses includes any interest 
acquired

[[Page 83]]

by corporate officials, partners, employees or other representatives of 
the industry member. Any interest in a retail license acquired by a 
separate corporation in which the industry member or its officials, hold 
ownership or are otherwise affiliated, is an interest in a retail 
license.



Sec.  6.27  Proprietary interest.

    (a) Complete ownership. Outright ownership of a retail business by 
an industry member is not an interest which may result in a violation of 
section 105(b)(1) of the Act.
    (b) Partial ownership. Less than complete ownership of a retail 
business by an industry member constitutes an interest in a retail 
license within the meaning of the Act.

[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20421, Apr. 26, 1995]

                       Interest in Retail Property



Sec.  6.31  General.

    The act by an industry member of acquiring an interest in real or 
personal property owned, occupied, or used by the retailer in the 
conduct of business constitutes a means to induce within the meaning of 
the Act.

[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]



Sec.  6.32  Indirect interest.

    Industry member interest in retail property includes any interest 
acquired by corporate officials, partners, employees or other 
representatives of the industry member. Any interest in retail property 
acquired by a separate corporation in which the industry member or its 
officials, hold ownership or are otherwise affiliated, is an interest in 
retail property.



Sec.  6.33  Proprietary interest.

    (a) Complete ownership. Outright ownership of a retail business by 
an industry member is not an interest that may result in a violation of 
section 105(b)(2) of the Act.
    (b) Partial ownership. Less than complete ownership of a retail 
business by an industry member constitutes an interest in retail 
property within the meaning of the Act.

[ T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20421, Apr. 26, 1995]



Sec.  6.34  Mortgages.

    The acquisition of a mortgage on a retailer's real or personal 
property by an industry member constitutes an interest in the retailer's 
property within the meaning of the Act.



Sec.  6.35  Renting display space.

    The renting of display space by an industry member at a retail 
establishment constitutes an interest in the retailer's property within 
the meaning of the Act.

                       Furnishing Things of Value



Sec.  6.41  General.

    Subject to the exceptions listed in subpart D, the act by an 
industry member of furnishing, giving, renting, lending, or selling any 
equipment, fixtures, signs, supplies, money, services, or other things 
of value to a retailer constitutes a means to induce within the meaning 
of the Act.

[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]



Sec.  6.42  Indirect inducement through third party arrangements.

    (a) General. The furnishing, giving, renting, lending, or selling of 
equipment, fixtures, signs, supplies, money, services, or other thing of 
value by an industry member to a third party, where the benefits 
resulting from such things of value flow to individual retailers, is the 
indirect furnishing of a thing of value within the meaning of the Act. 
Indirect furnishing of a thing of value includes, but is not limited to, 
making payments for advertising to a retailer association or a display 
company where the resulting benefits flow to individual retailers.
    (b) Exceptions. An indirect inducement will not arise where the 
thing of value was furnished to a retailer by the third party without 
the knowledge or intent of the industry member, or the industry member 
did not reasonably foresee that the thing of value would have been 
furnished to a retailer.

[[Page 84]]

Things which may lawfully be furnished, given, rented, lent, or sold by 
industry members to retailers under subpart D may also be furnished 
directly by a third party to a retailer.

[T.D. ATF-364, 60 FR 20421, Apr. 26, 1995]



Sec.  6.43  Sale of equipment.

    A transaction in which equipment is sold to a retailer by an 
industry member, except as provided in Sec.  6.88, is the selling of 
equipment in within the meaning of the Act regardless of how sold. 
Further, the negotiation by an industry member of a special price to a 
retailer for equipment from an equipment company is the furnishing of a 
thing of value within the meaning of the Act.

[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20422, Apr. 26, 1995]



Sec.  6.44  Free warehousing.

    The furnishing of free warehousing by delaying delivery of distilled 
spirits, wine, or malt beverages beyond the time that payment for the 
product is received, or if a retailer is purchasing on credit, delaying 
final delivery of products beyond the close of the period of time for 
which credit is lawfully extended, is the furnishing of a service or 
thing of value within the meaning of the Act.



Sec.  6.45  Assistance in acquiring license.

    Any assistance (financial, legal, administrative or influential) 
given the retailer by an industry member in the retailer's acquisition 
of the retailer's license is the furnishing of a service or thing of 
value within the meaning of the Act.



Sec. Sec.  6.46-6.47  [Reserved]

         Paying for Advertising, Display or Distribution Service



Sec.  6.51  General.

    The act by an industry member of paying or crediting a retailer for 
any advertising, display, or distribution service constitutes a means to 
induce within the meaning of the Act, whether or not the advertising, 
display, or distribution service received by the industry member in 
these instances is commensurate with the amount paid therefor. This 
includes payments or credits to retailers that are merely 
reimbursements, in full or in part, for such services purchased by a 
retailer from a third party.

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]



Sec.  6.52  Cooperative advertising.

    An arrangement in which an industry member participates with a 
retailer in paying for an advertisement placed by the retailer 
constitutes paying the retailer for advertising within the meaning of 
the Act.



Sec.  6.53  Advertising in ballparks, racetracks, and stadiums.

    The purchase, by an industry member, of advertising on signs, 
scoreboards, programs, scorecards, and the like at ballparks, racetracks 
or stadiums, from the retail concessionaire constitutes paying the 
retailer for an advertising service within the meaning of the Act.



Sec.  6.54  Advertising in retailer publications.

    The purchase, by an industry member, of advertising in a retailer 
publication for distribution to consumers or the general public 
constitutes paying the retailer for advertising within the meaning of 
the Act.



Sec.  6.55  Display service.

    Industry member reimbursements to retailers for setting up product 
or other displays constitutes paying the retailer for rendering a 
display service within the meaning of the Act.



Sec.  6.56  Renting display space.

    A promotion whereby an industry member rents display space at a 
retail establishment constitutes paying the retailer for rendering a 
display service within the meaning of the Act.

                           Guaranteeing Loans



Sec.  6.61  Guaranteeing loans.

    The act by an industry member of guaranteeing any loan or the 
repayment of any financial obligation of a

[[Page 85]]

retailer constitutes a means to induce within the meaning of the Act.

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]

                           Extension of Credit



Sec.  6.65  General.

    Extension of credit by an industry member to a retailer for a period 
of time in excess of 30 days from the date of delivery constitutes a 
means to induce within the meaning of the Act.

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]



Sec.  6.66  Calculation of period.

    For the purpose of this part, the period of credit is calculated as 
the time elapsing between the date of delivery of the product and the 
date of full legal discharge of the retailer, through the payment of 
cash or its equivalent, from all indebtedness arising from the 
transaction.



Sec.  6.67  Sales to retailer whose account is in arrears.

    An extension of credit (for product purchases) by an industry member 
to a retailer whose account is in arrears does not constitute a means to 
induce within the meaning of the Act so long as such retailer pays in 
advance or on delivery an amount equal to or greater than the value of 
each order, regardless of the manner in which the industry member 
applies the payment in its records.

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]

                               Quota Sales



Sec.  6.71  Quota sales.

    The act by an industry member of requiring a retailer to take and 
dispose of any quota of distilled spirits, wine, or malt beverages 
constitutes a means to induce within the meaning of the Act.

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]



Sec.  6.72  ``Tie-in'' sales.

    The act by an industry member of requiring that a retailer purchase 
one product (as defined in Sec.  6.11) in order to obtain another 
constitutes a means to induce within the meaning of the Act. This 
includes the requirement to take a minimum quantity of a product in 
standard packaging in order to obtain the same product in some type of 
premium package, i.e., a distinctive decanter, or wooden or tin box. 
This also includes combination sales if one or more products may be 
purchased only in combination with other products and not individually. 
However, an industry member is not precluded from selling two or more 
kinds or brands of products to a retailer at a special combination 
price, provided the retailer has the option of purchasing either product 
at the usual price, and the retailer is not required to purchase any 
product it does not want. See Sec.  6.93 for combination packaging of 
products plus non-alcoholic items.

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]



                          Subpart D_Exceptions



Sec.  6.81  General.

    (a) Application. Section 105(b)(3) of the Act enumerates means to 
induce that may be unlawful under the subsection, subject to such 
exceptions as are prescribed in regulations, having due regard for 
public health, the quantity and value of articles involved, established 
trade customs not contrary to the public interest, and the purposes of 
that section. This subpart implements section 105(b)(3) of the Act and 
identifies the practices that are exceptions to section 105(b)(3) of the 
Act. An industry member may furnish a retailer equipment, inside signs, 
supplies, services, or other things of value, under the conditions and 
within the limitations prescribed in this subpart.
    (b) Recordkeeping Requirements. (1) Industry members shall keep and 
maintain records on the permit or brewery premises, for a three year 
period, of all items furnished to retailers under Sec. Sec.  6.83, 6.88, 
6.91, 6.96(a), and 6.100 and the commercial records required under Sec.  
6.101. Commercial records or invoices may be used to satisfy this 
recordkeeping requirement if all required information is shown. These 
records shall show:
    (i) The name and address of the retailer receiving the item;
    (ii) The date furnished;
    (iii) The item furnished;

[[Page 86]]

    (iv) The industry member's cost of the item furnished (determined by 
the manufacturer's invoice price); and
    (v) Charges to the retailer for any item.
    (2) Although no separate recordkeeping violation results, an 
industry member who fails to keep such records is not eligible for the 
exception claimed.

(Approved by the Office of Management and Budget under control number 
1512-0392)

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]



Sec.  6.82  [Reserved]



Sec.  6.83  Product displays.

    (a) General. The act by an industry member of giving or selling 
product displays to a retailer does not constitute a means to induce 
within the meaning of section 105(b)(3) of the Act provided that the 
conditions prescribed in paragraph (c) of this section are met.
    (b) Definition. ``Product display'' means any wine racks, bins, 
barrels, casks, shelving, or similar items the primary function of which 
is to hold and display consumer products.
    (c) Conditions and limitations. (1) The total value of all product 
displays given or sold by an industry member under paragraph (a) of this 
section may not exceed $300 per brand at any one time in any one retail 
establishment. Industry members may not pool or combine dollar 
limitations in order to provide a retailer a product display valued in 
excess of $300 per brand. The value of a product display is the actual 
cost to the industry member who initially purchased it. Transportation 
and installation costs are excluded.
    (2) All product displays must bear conspicuous and substantial 
advertising matter on the product or the industry member which is 
permanently inscribed or securely affixed. The name and address of the 
retailer may appear on the product displays.
    (3) The giving or selling of such product displays may be 
conditioned upon the purchase of the distilled spirits, wine, or malt 
beverages advertised on those displays in a quantity necessary for the 
initial completion of such display. No other condition can be imposed by 
the industry member on the retailer in order for the retailer to receive 
or obtain the product display.

[T.D. ATF-364, 60 FR 20422, Apr. 26, 1995]



Sec.  6.84  Point of sale advertising materials and consumer advertising specialties.

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

[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]

[[Page 87]]



Sec.  6.85  Temporary retailers.

    (a) General. The furnishing of things of value to a temporary 
retailer does not constitute a means to induce within the meaning of 
section 105(b)(3) of the Act.
    (b) Definition. For purposes of administering this part, a temporary 
retailer is a dealer who is not engaged in business as a retailer for 
more than four consecutive days per event, and for not more than five 
events in a calendar year.

[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]



Sec. Sec.  6.86-6.87  [Reserved]



Sec.  6.88  Equipment and supplies.

    (a) General. The act by an industry member of selling equipment or 
supplies to a retailer does not constitute a means to induce within the 
meaning of section 105(b)(3) of the Act if the equipment or supplies are 
sold at a price not less than the cost to the industry member who 
initially purchased them, and if the price is collected within 30 days 
of the date of the sale. The act by an industry member of installing 
dispensing accessories at the retailer's establishment does not 
constitute a means to induce within the meaning of the Act as long as 
the retailer bears the cost of initial installation. The act by an 
industry member of furnishing, giving, or selling coil cleaning service 
to a retailer of distilled spirits, wine, or malt beverages does not 
constitute a means to induce within the meaning of section 105(b)(3) of 
the Act.
    (b) Definition. ``Equipment and supplies'' means glassware (or 
similar containers made of other material), dispensing accessories, 
carbon dioxide (and other gasses used in dispensing equipment) or ice. 
``Dispensing accessories'' include items such as standards, faucets, 
cold plates, rods, vents, taps, tap standards, hoses, washers, 
couplings, gas gauges, vent tongues, shanks, and check valves.

[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]



Sec. Sec.  6.89-6.90  [Reserved]



Sec.  6.91  Samples.

    The act by an industry member of furnishing or giving a sample of 
distilled spirits, wine, or malt beverages to a retailer who has not 
purchased the brand from that industry member within the last 12 months 
does not constitute a means to induce within the meaning of section 
105(b)(3) of the Act. For each retail establishment the industry member 
may give not more than 3 gallons of any brand of malt beverage, not more 
than 3 liters of any brand of wine, and not more than 3 liters of 
distilled spirits. If a particular product is not available in a size 
within the quantity limitations of this section, an industry member may 
furnish to a retailer the next larger size.

[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]



Sec.  6.92  Newspaper cuts.

    Newspaper cuts, mats, or engraved blocks for use in retailers' 
advertisements may be given or sold by an industry member to a retailer 
selling the industry member's products.

[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]



Sec.  6.93  Combination packaging.

    The act by an industry member of packaging and distributing 
distilled spirits, wine, or malt beverages in combination with other 
(non-alcoholic) items for sale to consumers does not constitute a means 
to induce within the meaning of section 105(b)(3) of the Act.

[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]



Sec.  6.94  Educational seminars.

    An industry member may give or sponsor educational seminars for 
employees of retailers either at the industry member's premises or at 
the retail establishment. Examples would be seminars dealing with use of 
a retailer's equipment, training seminars for employees of retailers, or 
tours of industry member's plant premises. This section does not 
authorize an industry member to pay a retailer's expense in conjunction 
with an educational seminar (such as travel and lodging). This does not 
preclude providing nominal hospitality during the event.

[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20423, Apr. 26, 1995]

[[Page 88]]



Sec.  6.95  Consumer tasting or sampling at retail establishments.

    An industry member may conduct tasting or sampling activities at a 
retail establishment. The industry member may purchase the products to 
be used from the retailer, but may not purchase them from the retailer 
for more than the ordinary retail price.



Sec.  6.96  Consumer promotions.

    (a) Coupons. The act by an industry member of furnishing to 
consumers coupons which are redeemable at a retail establishment does 
not constitute a means to induce within the meaning of section 105(b)(3) 
of the Act, provided the following conditions are met:
    (1) All retailers within the market where the coupon offer is made 
may redeem such coupons; and
    (2) An industry member may not reimburse a retailer for more than 
the face value of all coupons redeemed, plus a usual and customary 
handling fee for the redemption of coupons.
    (b) Direct offerings. Contest prizes, premium offers, refunds, and 
like items may be offered by industry members directly to consumers. 
Officers, employees and representatives of wholesalers or retailers are 
excluded from particiption.

[T.D. ATF-74, 45 FR 63251, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20423, Apr. 26, 1995]



Sec.  6.97  [Reserved]



Sec.  6.98  Advertising service.

    The listing of the names and addresses of two or more unaffiliated 
retailers selling the products of an industry member in an advertisement 
of that industry member does not constitute a means to induce within the 
meaning of section 105(b)(3) of the Act, provided:
    (a) The advertisement does not also contain the retail price of the 
product (except where the exclusive retailer in the jurisdiction is a 
State or a political subdivision of a State), and
    (b) The listing is the only reference to the retailers in the 
advertisement and is relatively inconspicuous in relation to the 
advertisement as a whole, and
    (c) The advertisement does not refer only to one retailer or only to 
retail establishments controlled directly or indirectly by the same 
retailer, except where the retailer is an agency of a State or a 
political subdivision of a State.

[T.D. ATF-364, 60 FR 20423, Apr. 26, 1995]



Sec.  6.99  Stocking, rotation, and pricing service.

    (a) General. Industry members may, at a retail establishment, stock, 
rotate and affix the price to distilled spirits, wine, or malt beverages 
which they sell, provided products of other industry members are not 
altered or disturbed. The rearranging or resetting of all or part of a 
store or liquor department is not hereby authorized.
    (b) Shelf plan and shelf schematics. The act by an industry member 
of providing a recommended shelf plan or shelf schematic for distilled 
spirits, wine, or malt beverages does not constitute a means to induce 
within the meaning of section 105(b)(3) of the Act.

[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]



Sec.  6.100  Participation in retailer association activities.

    The following acts by an industry member participating in retailer 
association activities do not constitute a means to induce within the 
meaning of section 105(b)(3) of the Act:
    (a) Displaying its products at a convention or trade show;
    (b) Renting display booth space if the rental fee is the same as 
paid by all exhibitors at the event;
    (c) Providing its own hospitality which is independent from 
association sponsored activities;
    (d) Purchasing tickets to functions and paying registration fees if 
the payments or fees are the same as paid by all attendees, participants 
or exhibitors at the event; and
    (e) Making payments for advertisements in programs or brochures 
issued by retailer associations at a convention or trade show if the 
total payments made by an industry member for all such advertisements do 
not exceed $300 per year for any retailer association.

[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]

[[Page 89]]



Sec.  6.101  Merchandise.

    (a) General. The act by an industry member, who is also in business 
as a bona fide producer or vendor of other merchandise (for example, 
groceries or pharmaceuticals), of selling that merchandise to a retailer 
does not constitute a means to induce within the meaning of section 
105(b)(3) of the Act, provided:
    (1) The merchandise is sold at its fair market value;
    (2) The merchandise is not sold in combination with distilled 
spirits, wines, or malt beverages (except as provided in Sec.  6.93);
    (3) The industry member's acquisition or production costs of the 
merchandise appears on the industry member's purchase invoices or other 
records; and
    (4) The individual selling prices of merchandise and distilled 
spirits, wines, or malt beverages sold in a single transaction can be 
determined from commercial documents covering the sales transaction.
    (b) Things of value covered in other sections of this part. The act 
by an industry member of providing equipment, fixtures, signs, 
glassware, supplies, services, and advertising specialties to retailers 
does not constitute a means to induce within the meaning of section 
105(b)(3) of the Act only as provided in other sections within this 
part.

[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]



Sec.  6.102  Outside signs.

    The act by an industry member of giving or selling outside signs to 
a retailer does not constitute a means to induce within the meaning of 
section 105(b)(3) of the Act provided that:
    (a) The sign must bear conspicuous and substantial advertising 
matter about the product or the industry member which is permanently 
inscribed or securely affixed;
    (b) The retailer is not compensated, directly or indirectly such as 
through a sign company, for displaying the signs; and
    (c) The cost of the signs may not exceed $400.

[T.D. ATF-364, 60 FR 20424, Apr. 26, 1995]



                           Subpart E_Exclusion

    Source: T.D. ATF-364, 60 FR 20424, Apr. 26, 1995, unless otherwise 
noted.



Sec.  6.151  Exclusion, in general.

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



Sec.  6.152  Practices which put retailer independence at risk.

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



Sec.  6.153  Criteria for determining retailer independence.

    The criteria specified in this section are indications that a 
particular practice, other than those in Sec.  6.152, places

[[Page 90]]

retailer independence at risk. A practice need not meet all of the 
criteria specified in this section in order to place retailer 
independence at risk.
    (a) The practice restricts or hampers the free economic choice of a 
retailer to decide which products to purchase or the quantity in which 
to purchase them for sale to consumers.
    (b) The industry member obligates the retailer to participate in the 
promotion to obtain the industry member's product.
    (c) The retailer has a continuing obligation to purchase or 
otherwise promote the industry member's product.
    (d) The retailer has a commitment not to terminate its relationship 
with the industry member with respect to purchase of the industry 
member's products.
    (e) The practice involves the industry member in the day-to-day 
operations of the retailer. For example, the industry member controls 
the retailer's decisions on which brand of products to purchase, the 
pricing of products, or the manner in which the products will be 
displayed on the retailer's premises.
    (f) The practice is discriminatory in that it is not offered to all 
retailers in the local market on the same terms without business reasons 
present to justify the difference in treatment.



PART 7_LABELING AND ADVERTISING OF MALT BEVERAGES--Table of Contents




                             Subpart A_Scope

Sec.
7.1 General.
7.2 Territorial extent.
7.3 Forms prescribed.
7.4 Related regulations.
7.5 Delegations of the Administrator.

                          Subpart B_Definitions

7.10 Meaning of terms.
7.11 Use of ingredients containing alcohol in malt beverages; processing 
          of malt beverages.

           Subpart C_Labeling Requirements for Malt Beverages

7.20 General.
7.21 Misbranding.
7.22 Mandatory label information.
7.22a Voluntary disclosure of major food allergens.
7.22b Petitions for exemption from major food allergen labeling.
7.23 Brand names.
7.24 Class and type.
7.25 Name and address.
7.26 Alcoholic content [suspended as of April 19, 1993; see Sec.  7.71].
7.27 Net contents.
7.28 General requirements.
7.29 Prohibited practices.

 Subpart D_Requirements for Withdrawal of Imported Malt Beverages From 
                             Customs Custody

7.30 Application.
7.31 Label approval and release.

    Subpart E_Requirements for Approval of Labels of Malt Beverages 
                     Domestically Bottled or Packed

7.40 Application.
7.41 Certificates of label approval.
7.42 Exhibiting certificates to Government officials.

                 Subpart F_Advertising of Malt Beverages

7.50 Application.
7.51 Definitions.
7.52 Mandatory statements.
7.53 Legibility of mandatory information.
7.54 Prohibited practices.
7.55 Comparative advertising.

                      Subpart G_General Provisions

7.60 Exports.

     Subpart H_Interim Regulations for Alcoholic Content Statements

7.71 Alcoholic content.

                 Subpart I_Use of the Term ``Organic.''

7.81 Use of the term ``organic.''

    Authority: 27 U.S.C. 205.

    Source: T.D. 6521, 25 FR 13859, Dec. 29, 1960, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 7 appear by T.D. ATF-
425, 65 FR 11891, Mar. 7, 2000.



                             Subpart A_Scope



Sec.  7.1  General.

    The regulations in this part relate to the labeling and advertising 
of malt beverages.

[[Page 91]]



Sec.  7.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia and the Commonwealth of Puerto Rico.



Sec.  7.3  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part. The 
form will be filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-92, 46 FR 46912, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5956, Feb. 27, 1987; T.D. 372, 61 FR 20723, May 8, 1996; T.D. ATF-
425, 65 FR 11891, Mar. 7, 2000; T.D. TTB-44, 71 FR 16922, Apr. 4, 2006]



Sec.  7.4  Related regulations.

    The following regulations also relate to this part:

27 CFR Part 205--National Organic Program
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act, Nonindustrial Use of Distilled Spirits and Wine, 
Bulk Sales and Bottling of Distilled Spirits
27 CFR Part 4--Labeling and Advertising of Wine
27 CFR Part 5--Labeling and Advertising of Distilled Spirits
27 CFR Part 13--Labeling Proceedings
27 CFR Part 16--Alcoholic Beverage Health Warning Statement
27 CFR Part 25--Beer
27 CFR Part 26--Liquors and Articles from Puerto Rico and the Virgin 
Islands
27 CFR Part 27--Importation of Distilled Spirits, Wines, and Beer
27 CFR Part 71--Rules of Practice in Permit Proceedings

[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002]



Sec.  7.5  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.7, Delegation of the Administrator's 
Authorities in 27 CFR Part 7, Labeling and Advertising of Malt 
Beverages. You may obtain a copy of this order by accessing the TTB Web 
site (http://www.ttb.gov) or by mailing a request to the Alcohol and 
Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, 
Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16922, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  7.10  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
shall have the meaning ascribed in this subpart.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Advertisement. See Sec.  7.51 for meaning of term as used in subpart 
F of this part.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.7, Delegation of the Administrator's Authorities in 27 CFR Part 7, 
Labeling and Advertising of Malt Beverages.
    Brand label. The label carrying, in the usual distinctive design, 
the brand name of the malt beverage.
    Bottler. Any person who places malt beverages in containers of a 
capacity of one gallon or less.
    Container. Any can, bottle, barrel, keg, or other closed receptacle, 
irrespective of size or of the material from which made, for use for the 
sale of malt beverages at retail.
    Gallon. A U.S. gallon of 231 cubic inches of malt beverages at 39.1 
[deg]F (4 [deg]C). All other liquid measures used are subdivisions of 
the gallon as defined.
    Interstate or foreign commerce. Commerce between any State and any 
place outside thereof, or commerce within any Territory or the District 
of Columbia, or between points within the same

[[Page 92]]

State but through any place outside thereof.
    Malt beverage. A beverage made by the alcoholic fermentation of an 
infusion or decoction, or combination of both, in potable brewing water, 
of malted barley with hops, or their parts, or their products, and with 
or without other malted cereals, and with or without the addition of 
unmalted or prepared cereals, other carbohydrates or products prepared 
therefrom, and with or without the addition of carbon dioxide, and with 
or without other wholesome products suitable for human food consumption. 
Standards applying to the use of processing methods and flavors in malt 
beverage production appear in Sec.  7.11.
    Other terms. Any other term defined in the Federal Alcohol 
Administration Act and used in this part shall have the same meaning 
assigned to it by the Act.
    Packer. Any person who places malt beverages in containers of a 
capacity in excess of one gallon.
    Person. Any individual, partnership, joint-stock company, business 
trust, association, corporation, or other form of business enterprise, 
including a receiver trustee, or liquidating agent, and including an 
officer or employee of any agency of a State or political subdivision 
thereof.
    United States. The several States, the District of Columbia, and 
Puerto Rico; the term ``State'' includes the District of Columbia and 
Puerto Rico.

[T.D. ATF-48, 43 FR 13534, Mar. 31, 1978; 44 FR 55839, Sept. 28, 1979, 
as amended by T.D. ATF-66, 45 FR 40550, June 13, 1980; T.D. ATF-94, 46 
FR 55097, Nov. 6, 1981; T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. 
ATF-425, 65 FR 11892, Mar. 7, 2000; TTB T.D.-21, 70 FR 234, Jan. 3, 
2005; T.D. TTB-44, 71 FR 16923, Apr. 4, 2006]



Sec.  7.11  Use of ingredients containing alcohol in malt beverages; processing of malt beverages.

    (a) Use of flavors and other nonbeverage ingredients containing 
alcohol--
    (1) General. Flavors and other nonbeverage ingredients containing 
alcohol may be used in producing a malt beverage. Except as provided in 
paragraph (a)(2) of this section, no more than 49% of the overall 
alcohol content of the finished product may be derived from the addition 
of flavors and other nonbeverage ingredients containing alcohol. For 
example, a finished malt beverage that contains 5.0% alcohol by volume 
must derive a minimum of 2.55% alcohol by volume from the fermentation 
of barley malt and other materials and may derive not more than 2.45% 
alcohol by volume from the addition of flavors and other nonbeverage 
ingredients containing alcohol.
    (2) In the case of malt beverages with an alcohol content of more 
than 6% by volume, no more than 1.5% of the volume of the malt beverage 
may consist of alcohol derived from added flavors and other nonbeverage 
ingredients containing alcohol.
    (b) Processing. Malt beverages may be filtered or otherwise 
processed in order to remove color, taste, aroma, bitterness, or other 
characteristics derived from fermentation.

[TTB T.D.-21, 70 FR 234, Jan. 3, 2005]



           Subpart C_Labeling Requirements for Malt Beverages



Sec.  7.20  General.

    (a) Application. This subpart shall apply to malt beverages sold or 
shipped or delivered for shipment, or otherwise introduced into or 
received in any State from any place outside thereof, only to the extent 
that the law of such State imposes similar requirements with respect to 
the labeling of malt beverages not sold or shipped or delivered for 
shipment or otherwise introduced into or received in such State from any 
place outside thereof.
    (b) Marking, branding, and labeling. No person engaged in business 
as a brewer, wholesaler, or importer of malt beverages, directly or 
indirectly, or through an affiliate, shall sell or ship, or deliver for 
sale or shipment, or otherwise introduce in interstate or foreign 
commerce, or receive therein, or remove from Customs custody any malt 
beverages in containers unless the malt beverages are packaged, and the 
packages are marked, branded, and labeled in conformity with this 
subpart.
    (c) Alteration of labels. (1) It shall be unlawful for any person to 
alter, mutilate, destroy, obliterate, or remove any

[[Page 93]]

mark, brand, or label upon malt beverages held for sale in interstate or 
foreign commerce or after shipment therein, except as authorized by 
Federal law. The appropriate TTB officer may, upon written application, 
permit additional labeling or relabeling of malt beverages in containers 
if, in his judgment, the facts show that the additional labeling or 
relabeling is for the purpose of compliance with the requirements of 
this subpart or of State law.
    (2) Application for permission to relabel shall be accompanied by 
two complete sets of the old labels and two complete sets of any 
proposed labels, together with a statement of the reasons for 
relabeling, the quantity and the location of the malt beverages, and the 
name and address of the person by whom they will be relabeled.

[T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-66, 45 FR 
40551, June 13, 1980; T.D. ATF-425, 65 FR 11892, Mar. 7, 2000]



Sec.  7.21  Misbranding.

    Malt beverages in containers shall be deemed to be misbranded:
    (a) If the container fails to bear on it a brand label (or a brand 
label and other permitted labels) containing the mandatory label 
information as required by Sec. Sec.  7.20 through 7.29 and conforming 
to the general requirements specified in this part.
    (b) If the container, cap, or any label on the container, or any 
carton, case, or other covering of the container used for sale at 
retail, or any written, printed, graphic, or other matter accompanying 
the container to the consumer buyer contains any statement, design, 
device, or graphic, pictorial, or emblematic representation that is 
prohibited by Sec. Sec.  7.20 through 7.29.
    (c) If the container has blown, branded, or burned therein the name 
or other distinguishing mark of any person engaged in business as a 
brewer, wholesaler, bottler, or importer, of malt beverages, or of any 
other person, except the person whose name is required to appear on the 
brand label.



Sec.  7.22  Mandatory label information.

    There shall be stated:
    (a) On the brand label:
    (1) Brand name, in accordance with Sec.  7.23.
    (2) Class, in accordance with Sec.  7.24.
    (3) Name and address (except when branded or burned in the 
container) in accordance with Sec.  7.25, except as provided in 
paragraph (b) of this section.
    (4) Net contents (except when blown, branded, or burned, in the 
container) in accordance with Sec.  7.27.
    (5) Alcohol content in accordance with Sec.  7.71, for malt 
beverages that contain any alcohol derived from added flavors or other 
added nonbeverage ingredients (other than hops extract) containing 
alcohol.
    (b) On the brand label or on a separate label (back or front):
    (1) In the case of imported malt beverages, name and address of 
importer in accordance with Sec.  7.25.
    (2) In the case of malt beverages bottled or packed for the holder 
of a permit or a retailer, the name and address of the bottler or 
packer, in accordance with Sec.  7.25.
    (3) Alcoholic content, when required by State law, in accordance 
with Sec.  7.71.
    (4) A statement that the product contains FD&C Yellow No. 5, where 
that coloring material is used in a product bottled on or after October 
6, 1984.
    (5) [Reserved]
    (6) Declaration of sulfites. The statement ``Contains sulfites'' or 
``Contains (a) sulfiting agent(s)'' or a statement identifying the 
specific sulfiting agent where sulfur dioxide or a sulfiting agent is 
detected at a level of 10 or more parts per million, measured as total 
sulfur dioxide. The sulfite declaration may appear on a strip label or 
neck label in lieu of appearing on the front or back label. The 
provisions of this paragraph shall apply to:
    (i) Any certificate of label approval issued on or after January 9, 
1987;
    (ii) Any malt beverage bottled on or after July 9, 1987, regardless 
of the date of issuance of the certificate of label approval; and,
    (iii) Any malt beverage removed on or after January 9, 1988.
    (7) Declaration of aspartame. The following statement, in capital 
letters, separate and apart from all other information, when the product 
contains aspartame in accordance with Food and

[[Page 94]]

Drug Administration (FDA) regulations:

``PHENYLKETONURICS: CONTAINS PHENYLALANINE.''

(Paragraph (b)(6) approved by the Office of Management and Budget under 
Control No. 1512-0469)

[T.D. 6521, 25 FR 13859, Dec. 29, 1960]

    Editorial Note: For Federal Register citations affecting Sec.  7.22, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.



Sec.  7.22a  Voluntary disclosure of major food allergens.

    (a) Definitions. For purposes of this section the following terms 
have the meanings indicated.
    (1) Major food allergen. Major food allergen means any of the 
following:
    (i) Milk, egg, fish (for example, bass, flounder, or cod), 
Crustacean shellfish (for example, crab, lobster, or shrimp), tree nuts 
(for example, almonds, pecans, or walnuts), wheat, peanuts, and 
soybeans; or
    (ii) A food ingredient that contains protein derived from a food 
specified in paragraph (a)(1)(i) of this section, except:
    (A) Any highly refined oil derived from a food specified in 
paragraph (a)(1)(i) of this section and any ingredient derived from such 
highly refined oil; or
    (B) A food ingredient that is exempt from major food allergen 
labeling requirements pursuant to a petition for exemption approved by 
the Food and Drug Administration (FDA) under 21 U.S.C. 343(w)(6) or 
pursuant to a notice submitted to FDA under 21 U.S.C. 343(w)(7), 
provided that the food ingredient meets the terms or conditions, if any, 
specified for that exemption.
    (2) Name of the food source from which each major food allergen is 
derived. Name of the food source from which each major food allergen is 
derived means the name of the food as listed in paragraph (a)(1)(i) of 
this section, except that:
    (i) In the case of a tree nut, it means the name of the specific 
type of nut (for example, almonds, pecans, or walnuts); and
    (ii) In the case of Crustacean shellfish, it means the name of the 
species of Crustacean shellfish (for example, crab, lobster, or shrimp); 
and
    (iii) The names ``egg'' and ``peanuts'', as well as the names of the 
different types of tree nuts, may be expressed in either the singular or 
plural form, and the name ``soy'', ``soybean'', or ``soya'' may be used 
instead of ``soybeans''.
    (b) Voluntary labeling standards. Major food allergens (defined in 
paragraph (a)(1) of this section) used in the production of a malt 
beverage product may, on a voluntary basis, be declared on any label 
affixed to the container. However, if any one major food allergen is 
voluntarily declared, all major food allergens used in production of the 
malt beverage product, including major food allergens used as fining or 
processing agents, must be declared, except when covered by a petition 
for exemption approved by the appropriate TTB officer under Sec.  7.22b. 
The major food allergens declaration must consist of the word 
``Contains'' followed by a colon and the name of the food source from 
which each major food allergen is derived (for example, ``Contains: 
egg'').
    (c) Cross reference. For mandatory labeling requirements applicable 
to malt beverage products containing FD&C Yellow No. 5, sulfites, and 
aspartame, see Sec. Sec.  7.22(b)(4), (b)(6), and (b)(7).

[T.D. TTB-53, 71 FR 42269, July 26, 2006]



Sec.  7.22b  Petitions for exemption from major food allergen labeling.

    (a) Submission of petition. Any person may petition the appropriate 
TTB officer to exempt a particular product or class of products from the 
labeling requirements of Sec.  7.22a. The burden is on the petitioner to 
provide scientific evidence (including the analytical method used to 
produce the evidence) that demonstrates that the finished product or 
class of products, as derived by the method specified in the petition, 
either:
    (1) Does not cause an allergic response that poses a risk to human 
health; or
    (2) Does not contain allergenic protein derived from one of the 
foods identified in Sec.  7.22(a)(1)(i), even though a major food 
allergen was used in production.
    (b) Decision on petition. TTB will approve or deny a petition for 
exemption

[[Page 95]]

submitted under paragraph (a) of this section in writing within 180 days 
of receipt of the petition. If TTB does not provide a written response 
to the petitioner within that 180-day period, the petition will be 
deemed denied, unless an extension of time for decision is mutually 
agreed upon by the appropriate TTB officer and the petitioner. TTB may 
confer with the Food and Drug Administration (FDA) on petitions for 
exemption, as appropriate and as FDA resources permit. TTB may require 
the submission of product samples and other additional information in 
support of a petition; however, unless required by TTB, the submission 
of samples or additional information by the petitioner after submission 
of the petition will be treated as the withdrawal of the initial 
petition and the submission of a new petition. An approval or denial 
under this section will constitute a final agency action.
    (c) Resubmission of a petition. After a petition for exemption is 
denied under this section, the petitioner may resubmit the petition 
along with supporting materials for reconsideration at any time. TTB 
will treat this submission as a new petition.
    (d) Availability of information--(1) General. TTB will promptly post 
to its public Web site, http://www.ttb.gov, all petitions received under 
this section as well as TTB's responses to those petitions. Any 
information submitted in support of the petition that is not posted to 
the TTB Web site will be available to the public pursuant to 5 U.S.C. 
552, except where a request for confidential treatment is granted under 
paragraph (d)(2) of this section.
    (2) Requests for confidential treatment of business information. A 
person who provides trade secrets or other commercial or financial 
information in connection with a petition for exemption under this 
section may request that TTB give confidential treatment to that 
information. A failure to request confidential treatment at the time the 
information in question is submitted to TTB will constitute a waiver of 
confidential treatment. A request for confidential treatment of 
information under this section must conform to the following standards:
    (i) The request must be in writing;
    (ii) The request must clearly identify the information to be kept 
confidential;
    (iii) The request must relate to information that constitutes trade 
secrets or other confidential commercial or financial information 
regarding the business transactions of an interested person, the 
disclosure of which would cause substantial harm to the competitive 
position of that person;
    (iv) The request must set forth the reasons why the information 
should not be disclosed, including the reasons the disclosure of the 
information would prejudice the competitive position of the interested 
person; and
    (v) The request must be supported by a signed statement by the 
interested person, or by an authorized officer or employee of that 
person, certifying that the information in question is a trade secret or 
other confidential commercial or financial information and that the 
information is not already in the public domain.

[T.D. TTB-53, 71 FR 42269, July 26, 2006]



Sec.  7.23  Brand names.

    (a) General. The product shall bear a brand name, except that if not 
sold under a brand name, then the name of the person required to appear 
on the brand label shall be deemed a brand name for the purpose of this 
part.
    (b) Misleading brand names. No label shall contain any brand name, 
which, standing alone, or in association with other printed or graphic 
matter, creates any impression or inference as to the age, origin, 
identity, or other characteristics of the product unless the appropriate 
TTB officer finds that such brand name, either when qualified by the 
word ``brand'' or when not so qualified, conveys no erroneous 
impressions as to the age, origin, identity, or other characteristics of 
the product.
    (c) Trade name of foreign origin. This section shall not operate to 
prohibit the use by any person of any trade name or brand of foreign 
origin not effectively registered in the United States Patent Office on 
August 29, 1935, which has been used by such person or his predecessors 
in the United States for a period of at least 5 years immediately 
preceding August 29, 1935: Provided, That if such trade name or brand

[[Page 96]]

is used, the designation of the product shall be qualified by the name 
of the locality in the United States in which produced, and such 
qualification shall be in script, type, or printing as conspicuous as 
the trade name or brand.



Sec.  7.24  Class and type.

    (a) The class of the malt beverage shall be stated and, if desired, 
the type thereof may be stated. Statements of class and type shall 
conform to the designation of the product as known to the trade. If the 
product is not known to the trade under a particular designation, a 
distinctive or fanciful name, together with an adequate and truthful 
statement of the composition of the product, shall be stated, and such 
statement shall be deemed to be a statement of class and type for the 
purposes of this part.
    (b) Malt beverages which have been concentrated by the removal of 
water therefrom and reconstituted by the addition of water and carbon 
dioxide shall for the purpose of this part be labeled in the same manner 
as malt beverages which have not been concentrated and reconstituted, 
except that there shall appear in direct conjunction with, and as a part 
of, the class designation the statement ``PRODUCED FROM -------- 
CONCENTRATE'' (the blank to be filled in with the appropriate class 
designation). All parts of the class designation shall appear in 
lettering of substantially the same size and kind.
    (c) No product shall be designated as ``half and half'' unless it is 
in fact composed of equal parts of two classes of malt beverages the 
names of which are conspicuously stated in conjunction with the 
designation ``half and half''.
    (d) Products containing less than one-half of 1 percent (.5%) of 
alcohol by volume shall bear the class designation ``malt beverage,'' or 
``cereal beverage,'' or ``near beer.'' If the designation ``near beer'' 
is used, both words must appear in the same size and style of type, in 
the same color of ink, and on the same background. No product containing 
less than one-half of 1 percent of alcohol by volume shall bear the 
class designations ``beer'', ``lager beer'', ``lager'', ``ale'', 
``porter'', or ``stout'', or any other class or type designation 
commonly applied to malt beverages containing one-half of 1 percent or 
more of alcohol by volume.
    (e) No product other than a malt beverage fermented at comparatively 
high temperature, possessing the characteristics generally attributed to 
``ale,'' ``porter,'' or ``stout'' and produced without the use of 
coloring or flavoring materials (other than those recognized in standard 
brewing practices) shall bear any of these class designations.
    (f) Geographical names for distinctive types of malt beverages 
(other than names found under paragraph (g) of this section to have 
become generic) shall not be applied to malt beverages produced in any 
place other than the particular region indicated by the name unless (1) 
in direct conjunction with the name there appears the word ``type'' or 
the word ``American'', or some other statement indicating the true place 
of production in lettering substantially as conspicuous as such name, 
and (2) the malt beverages to which the name is applied conform to the 
type so designated. The following are examples of distinctive types of 
beer with geographical names that have not become generic; Dortmund, 
Dortmunder, Vienna, Wein, Weiner, Bavarian, Munich, Munchner, Salvator, 
Kulmbacher, Wurtzburger, Pilsen (Pilsener and Pilsner): Provided, That 
notwithstanding the foregoing provisions of this section, beer which is 
produced in the United States may be designated as ``Pilsen,'' 
``Pilsener,'' or ``Pilsner'' without further modification, if it 
conforms to such type.
    (g) Only such geographical names for distinctive types of malt 
beverages as the appropriate TTB officer finds have by usage and common 
knowledge lost their geographical significance to such an extent that 
they have become generic shall be deemed to have become generic, e.g., 
India Pale Ale.
    (h) Except as provided in Sec.  7.23(b), geographical names that are 
not names for distinctive types of malt beverages shall not be applied 
to malt beverages produced in any place other than the

[[Page 97]]

particular place or region indicated in the name.

[T.D. 6672, 28 FR 9637, Aug. 31, 1963, as amended at 29 FR 3572, Mar. 
20, 1964; T.D. ATF-249, 52 FR 5956, Feb. 27, 1987; T.D. ATF 280, 54 FR 
3594, Jan. 25, 1989; T.D. ATF-425, 65 FR 11892, Mar. 7, 2000]



Sec.  7.25  Name and address.

    (a) Domestic malt beverages. (1) On labels of containers of domestic 
malt beverages there shall be stated the name of the bottler or packer 
and the place where bottled or packed. The bottler's or packer's 
principal place of business may be shown in lieu of the actual place 
where bottled or packed if the address shown is a location where 
bottling or packing operation takes place. The appropriate TTB officer 
may disapprove the listing of a principal place of business if its use 
would create a false or misleading impression as to the geographic 
origin of the beer.
    (2) If malt beverages are bottled or packed for a person other than 
the actual bottler or packer there may be stated in addition to the name 
and address of the bottler or packer (but not in lieu of), the name and 
address of such other person immediately preceded by the words ``bottled 
for,'' ``distributed by,'' or other similar appropriate phrase.
    (b) Imported malt beverages. On labels of containers of imported 
malt beverages, there shall be stated the words ``imported by,'' or a 
singular appropriate phrase, and immediately thereafter the name of the 
permittee who is the importer, or exclusive agent, or sole distributor, 
or other person responsible for the importation, together with the 
principal place of business in the United States of such person. In 
addition there may, but need not, be stated unless required by State or 
foreign law or regulation the name and principal place of business of 
the foreign manufacturer, bottler, packer, or shipper.
    (c) Post-office address. The ``place'' stated shall be the post-
office address, except that the street address may be omitted. No 
additional places or addresses shall be stated for the same person, 
unless (1) such person is actively engaged in the conduct of an 
additional bona fide and actual malt beverage business at such 
additional place or address, and (2) the label also contains, in direct 
conjunction therewith, appropriate descriptive material indicating the 
function occurring at such additional place or address in connection 
with the particular malt beverage.

(Approved by the Office of Management and Budget under control number 
1512-0474)

[T.D. 6551, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-225, 51 
FR 8492, Mar. 12, 1986]



Sec.  7.26  Alcoholic content [suspended as of April 19, 1993; see Sec.  7.71].

    (a) The alcoholic content and the percentage and quantity of the 
original extract shall not be stated unless required by State law. When 
alcoholic content is required to be stated, but the manner of statement 
is not specified in the State law, it shall be stated in percentage of 
alcohol by weight or by volume, and not by proof or by maximums or 
minimums. Otherwise the manner of statement shall be as specified in the 
State law.
    (b) The terms ``low alcohol'' or ``reduced alcohol'' may be used 
only on malt beverage products containing less than 2.5 percent alcohol 
by volume.
    (c) The term ``non-alcoholic'' may be used on malt beverage 
products, provided the statement ``contains less than 0.5 percent (or 
.5%) alcohol by volume'' appears in direct conjunction with it, in 
readily legible printing and on a completely contrasting background.
    (d) The term ``alcohol-free'' may be used only on malt beverage 
products containing no alcohol.

[T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF 280, 54 
FR 3594, Jan. 25, 1989; T.D. ATF-339, 58 FR 21231, Apr. 19, 1993]

    Effective Date Note: At 58 FR 21231, Apr. 19, 1993, Sec.  7.26 was 
suspended indefinitely.



Sec.  7.27  Net contents.

    (a) Net contents shall be stated as follows:
    (1) If less than 1 pint, in fluid ounces, or fractions of a pint.
    (2) If 1 pint, 1 quart, or 1 gallon, the net contents shall be so 
stated.

[[Page 98]]

    (3) If more than 1 pint, but less than 1 quart, the net contents 
shall be stated in fractions of a quart, or in pints and fluid ounces.
    (4) If more than 1 quart, but less than 1 gallon, the net contents 
shall be stated in fractions of a gallon, or in quarts, pints, and fluid 
ounces.
    (5) If more than 1 gallon, the net contents shall be stated in 
gallons and fractions thereof.
    (b) All fractions shall be expressed in their lowest denominations.
    (c) The net contents need not be stated on any label if the net 
contents are displayed by having the same blown, branded, or burned in 
the container in letters or figures in such manner as to be plainly 
legible under ordinary circumstances and such statement is not obscured 
in any manner in whole or in part.



Sec.  7.28  General requirements.

    (a) Contrasting background. All labels shall be so designed that all 
statements required by this subpart are readily legible under ordinary 
conditions, and all the statements are on a contrasting background.
    (b) Size of type-- (1) Containers of more than one-half pint. Except 
for statements of alcoholic content, all mandatory information required 
on labels by this part shall be in script, type, or printing not smaller 
than 2 millimeters. If contained among other descriptive or explanatory 
information, the script, type, or printing of all mandatory information 
shall be of a size substantially more conspicuous than that of the 
descriptive or explanatory information.
    (2) Containers of one-half pint or less. Except for statements of 
alcoholic content, all mandatory information required on labels by this 
part shall be in script, type, or printing not smaller than 1 
millimeter. If contained among other descriptive or explanatory 
information, the script, type, or printing of all mandatory information 
shall be of a size substantially more conspicuous than that of the 
descriptive or explanatory information.
    (3) Alcoholic content statement. All portions of the alcoholic 
content statement shall be of the same size and kind of lettering and of 
equally conspicuous color. Unless otherwise required by State law, the 
statement of alcoholic content shall be in script, type, or printing:
    (i) Not smaller than 1 millimeter for containers of one-half pint or 
less, or smaller than 2 millimeters for containers larger than one-half 
pint; or
    (ii) Not larger than 3 millimeters for containers of 40 fl. oz. or 
less, or larger than 4 millimeters for containers larger than 40 fl. oz.
    (c) English language. All information, other than the brand name, 
required by this subpart to be stated on labels shall be in the English 
language. Additional statements in foreign languages may be made, if the 
statements do not conflict with, or are contradictory to, the 
requirements of this subpart. Labels on containers of malt beverages 
bottled or packed for consumption within Puerto Rico may, if desired, 
state the information required by this subpart solely in the Spanish 
language, in lieu of the English language, except that the net contents 
shall also be stated in the English language.
    (d) Labels firmly affixed. All labels shall be affixed to containers 
of malt beverages in such manner that they cannot be removed without 
thorough application of water or other solvents.
    (e) Additional information. Labels may contain information other 
than the mandatory label information required by this subpart if the 
information complies with the requirements of this subpart and does not 
conflict with, or in any manner qualify, statements required by this 
part.

[T.D. ATF-66, 45 FR 40552, June 13, 1980, as amended by T.D. ATF-94, 46 
FR 55097, Nov. 6, 1981; T.D. ATF-339, 58 FR 21231, Apr. 19, 1993]



Sec.  7.29  Prohibited practices.

    (a) Statements on labels. Containers of malt beverages, or any 
labels on such containers, or any carton, case, or individual covering 
of such containers, used for sale at retail, or any written, printed, 
graphic, or other material accompanying such containers to the consumer, 
must not contain:
    (1) Any statement that is false or untrue in any particular, or 
that, irrespective of falsity, directly, or by ambiguity, omission, or 
inference, or by the addition of irrelevant, scientific or

[[Page 99]]

technical matter, tends to create a misleading impression.
    (2) Any statement that is disparaging of a competitor's products.
    (3) Any statement, design, device, or representation which is 
obscene or indecent.
    (4) Any statement, design, device, or representation of or relating 
to analyses, standards, or tests, irrespective of falsity, which the 
appropriate TTB officer finds to be likely to mislead the consumer.
    (5) Any statement, design, device, or representation of or relating 
to any guarantee, irrespective of falsity, which the appropriate TTB 
officer finds to be likely to mislead the consumer. Money-back 
guarantees are not prohibited.
    (6) A trade or brand name that is the name of any living individual 
of public prominence, or existing private or public organization, or is 
a name that is in simulation or is an abbreviation thereof, or any 
graphic, pictorial, or emblematic representation of any such individual 
or organization, if the use of such name or representation is likely 
falsely to lead the consumer to believe that the product has been 
endorsed, made, or used by, or produced for, or under the supervision 
of, or in accordance with the specifications of, such individual or 
organization: Provided, That this paragraph shall not apply to the use 
of the name of any person engaged in business as a producer, importer, 
bottler, packer, wholesaler, retailer, or warehouseman, of malt 
beverages, nor to the use by any person of a trade or brand name that is 
the name of any living individual of public prominence, or existing 
private or public organization, provided such trade or brand name was 
used by him or his predecessors in interest prior to August 29, 1935.
    (7) Any statement, design, device, or representation that tends to 
create a false or misleading impression that the malt beverage contains 
distilled spirits or is a distilled spirits product. This paragraph does 
not prohibit the following on malt beverage labels:
    (i) A truthful and accurate statement of alcohol content, in 
conformity with Sec.  7.71;
    (ii) The use of a brand name of a distilled spirits product as a 
malt beverage brand name, provided that the overall label does not 
present a misleading impression about the identity of the product; or
    (iii) The use of a cocktail name as a brand name or fanciful name of 
a malt beverage, provided that the overall label does not present a 
misleading impression about the identity of the product.
    (b) Simulation of Government stamps. No label shall be of such 
design as to resemble or simulate a stamp of the United States 
Government or of any State or foreign government. No label, other than 
stamps authorized or required by the United States Government or any 
State or foreign government, shall state or indicate that the malt 
beverage contained in the labeled container is brewed, made, bottled, 
packed, labeled, or sold under, or in accordance with, any municipal, 
State, Federal, or foreign government authorization, law, or regulation, 
unless such statement is required or specifically authorized by Federal, 
State, or municipal, law or regulation, or is required or specifically 
authorized by the laws or regulations of the foreign country in which 
such malt beverages were produced. If the municipal or State government 
permit number is stated upon a label, it shall not be accompanied by an 
additional statement relating thereto, unless required by State law.
    (c) Use of word ``bonded'', etc. The words ``bonded'', ``bottled in 
bond'', ``aged in bond'', ``bonded age'', ``bottled under customs 
supervision'', or phrases containing these or synonymous terms which 
imply governmental supervision over production, bottling, or packing, 
shall not be used on any label for malt beverages.
    (d) Flags, seals, coats of arms, crests, and other insignia. Labels 
shall not contain, in the brand name or otherwise, any statement, 
design, device, or pictorial representation which the appropriate TTB 
officer finds relates to, or is capable of being construed as relating 
to, the armed forces of the United States, or the American flag, or any 
emblem, seal, insignia, or decoration associated with such flag or armed 
forces; nor shall any label contain any

[[Page 100]]

statement, design, device, or pictorial representation of or concerning 
any flag, seal, coat of arms, crest or other insignia, likely to mislead 
the consumer to believe that the product has been endorsed, made, or 
used by, or produced for, or under the supervision of, or in accordance 
with the specifications of the government, organization, family, or 
individual with whom such flag, seal, coat of arms, crest, or insignia 
is associated.
    (e) Health-related statements--(1) Definitions. When used in this 
paragraph (e), terms are defined as follows:
    (i) Health-related statement means any statement related to health 
(other than the warning statement required by Sec.  16.21 of this 
chapter) and includes statements of a curative or therapeutic nature 
that, expressly or by implication, suggest a relationship between the 
consumption of alcohol, malt beverages, or any substance found within 
the malt beverage, and health benefits or effects on health. The term 
includes both specific health claims and general references to alleged 
health benefits or effects on health associated with the consumption of 
alcohol, malt beverages, or any substance found within the malt 
beverage, as well as health-related directional statements. The term 
also includes statements and claims that imply that a physical or 
psychological sensation results from consuming the malt beverage, as 
well as statements and claims of nutritional value (e.g., statements of 
vitamin content). Statements concerning caloric, carbohydrate, protein, 
and fat content do not constitute nutritional claims about the product.
    (ii) Specific health claim is a type of health-related statement 
that, expressly or by implication, characterizes the relationship of the 
malt beverage, alcohol, or any substance found within the malt beverage, 
to a disease or health-related condition. Implied specific health claims 
include statements, symbols, vignettes, or other forms of communication 
that suggest, within the context in which they are presented, that a 
relationship exists between malt beverages, alcohol, or any substance 
found within the malt beverage, and a disease or health-related 
condition.
    (iii) Health-related directional statement is a type of health-
related statement that directs or refers consumers to a third party or 
other source for information regarding the effects on health of malt 
beverage or alcohol consumption.
    (2) Rules for labeling--(i) Health-related statements. In general, 
labels may not contain any health-related statement that is untrue in 
any particular or tends to create a misleading impression as to the 
effects on health of alcohol consumption. TTB will evaluate such 
statements on a case-by-case basis and may require as part of the 
health-related statement a disclaimer or some other qualifying statement 
to dispel any misleading impression conveyed by the health-related 
statement.
    (ii) Specific health claims. (A) TTB will consult with the Food and 
Drug Administration (FDA), as needed, on the use of a specific health 
claim on a malt beverage label. If FDA determines that the use of such a 
labeling claim is a drug claim that is not in compliance with the 
requirements of the Federal Food, Drug, and Cosmetic Act, TTB will not 
approve the use of that specific health claim on a malt beverage label.
    (B) TTB will approve the use of a specific health claim on a malt 
beverage label only if the claim is truthful and adequately 
substantiated by scientific or medical evidence; sufficiently detailed 
and qualified with respect to the categories of individuals to whom the 
claim applies; adequately discloses the health risks associated with 
both moderate and heavier levels of alcohol consumption; and outlines 
the categories of individuals for whom any levels of alcohol consumption 
may cause health risks. This information must appear as part of the 
specific health claim.
    (iii) Health-related directional statements. A statement that 
directs consumers to a third party or other source for information 
regarding the effects on health of malt beverage or alcohol consumption 
is presumed misleading unless it--
    (A) Directs consumers in a neutral or other non-misleading manner to 
a third party or other source for balanced information regarding the 
effects on health of malt beverage or alcohol consumption; and

[[Page 101]]

    (B)(1) Includes as part of the health-related directional statement 
the following disclaimer: ``This statement should not encourage you to 
drink or to increase your alcohol consumption for health reasons;'' or
    (2) Includes as part of the health-related directional statement 
some other qualifying statement that the appropriate TTB officer finds 
is sufficient to dispel any misleading impression conveyed by the 
health-related directional statement.
    (f) Use of words ``strong,'' ``full strength,'' and similar words. 
Labels shall not contain the words ``strong,'' ``full strength,'' 
``extra strength,'' ``high test,'' ``high proof,'' ``pre-war strength,'' 
``full oldtime alcoholic strength,'' or similar words or statements, 
likely to be considered as statements of alcoholic content, unless 
required by State law. This does not preclude use of the terms ``low 
alcohol,'' ``reduced alcohol,'' ``non-alcoholic,'' and ``alcohol-free,'' 
in accordance with Sec.  7.71 (d), (e), and (f), nor does it preclude 
labeling with the alcohol content in accordance with Sec.  7.71.
    (g) Use of numerals. Labels shall not contain any statements, 
designs, or devices, whether in the form of numerals, letters, 
characters, figures, or otherwise, which are likely to be considered as 
statements of alcoholic content, unless required by State law, or as 
permitted by Sec.  7.71.
    (h) Coverings, cartons, or cases. Individual coverings, cartons, 
cases, or other wrappers of containers of malt beverages, used for sale 
at retail, or any written, printed, graphic, or other matter 
accompanying the container shall not contain any statement or any 
graphic pictorial, or emblematic representation, or other matter, which 
is prohibited from appearing on any label or container of malt 
beverages.

[T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-66, 45 FR 
40552, June 13, 1980; T.D. ATF-180, 49 FR 31674, Aug. 8, 1984; T.D. ATF 
280, 54 FR 3594, Jan. 25, 1989; T.D. ATF-339, 58 FR 21232, Apr. 19, 
1993; TTB T.D.-1, 68 FR 10105, Mar. 3, 2003; TTB T.D.-21, 70 FR 234, 
Jan. 3, 2005]



 Subpart D_Requirements for Withdrawal of Imported Malt Beverages From 
                             Customs Custody



Sec.  7.30  Application.

    Sections 7.30 and 7.31 shall apply to withdrawals of malt beverages 
from customs custody only in the event that the laws or regulations of 
the State in which such malt beverages are withdrawn for consumption 
require that all malt beverages sold or otherwise disposed of in such 
State be labeled in conformity with the requirements of Sec. Sec.  7.20 
through 7.29.



Sec.  7.31  Label approval and release.

    (a) Certificate of label approval. No imported malt beverages in 
containers shall be released from Customs custody for consumption unless 
there is deposited with the appropriate Customs officer at the port of 
entry the original or a photostatic copy of an approved certificate of 
label approval, TTB Form 5100.31.
    (b) Release. If the original or photostatic copy of TTB Form 5100.31 
has been approved, the brand or lot of imported malt beverages bearing 
labels identical with those shown thereon may be released from U.S. 
Customs custody.
    (c) Relabeling. Imported malt beverages in U.S. Customs custody 
which are not labeled in conformity with certificates of label approval 
issued by the appropriate TTB officer must be relabeled, prior to 
release, under the supervision and direction of the U.S. Customs 
officers of the port at which the malt beverages are located.
    (d) Formula and samples. The appropriate TTB officer may require an 
importer to submit a formula for a malt beverage, or a sample of any 
malt beverage or ingredients used in producing a malt beverage, prior to 
or in conjunction with the filing of a certificate of label approval on 
TTB Form 5100.31.

[[Page 102]]

    (e) Cross reference. For procedures regarding the issuance, denial, 
and revocation of certificates of label approval, as well as appeal 
procedures, see part 13 of this chapter.

[T.D. ATF-66, 45 FR 40552, June 13, 1980, as amended by T.D. ATF-94, 46 
FR 55097, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. 
ATF-359, 59 FR 42160, Aug. 17, 1994; T.D. ATF-406, 64 FR 2129, Jan. 13, 
1999; TTB T.D.-21, 70 FR 235, Jan. 3, 2005]



    Subpart E_Requirements for Approval of Labels of Malt Beverages 
                     Domestically Bottled or Packed



Sec.  7.40  Application.

    Sections 7.40 through 7.42 shall apply only to persons bottling or 
packing malt beverages (other than malt beverages in customs custody) 
for shipment, or delivery for sale or shipment, into a State, the laws 
or regulations of which require that all malt beverages sold or 
otherwise disposed of in such State be labeled in conformity with the 
requirements of Sec. Sec.  7.20 through 7.29.



Sec.  7.41  Certificates of label approval.

    (a) Requirement. No person may bottle or pack malt beverages, or 
remove malt beverages from the plant where bottled or packed unless an 
approved certificate of label approval, TTB Form 5100.31, is issued.
    (b) Cross reference. For procedures regarding the issuance, denial, 
and revocation of certificates of label approval, as well as appeal 
procedures, see part 13 of this chapter.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-425, 65 
FR 11892, Mar. 7, 2000]



Sec.  7.42  Exhibiting certificates to Government officials.

    Any bottler or packer holding an original or duplicate original of a 
certificate of label approval shall, upon demand exhibit such 
certificate to a duly authorized representative of the United States 
Government or any duly authorized representative of a State or political 
subdivision thereof.



                 Subpart F_Advertising of Malt Beverages



Sec.  7.50  Application.

    No person engaged in business as a brewer, wholesaler, or importer, 
of malt beverages directly or indirectly or through an affiliate, shall 
publish or disseminate or cause to be published or disseminated by radio 
or television broadcast, or in any newspaper, periodical, or any 
publication, by any sign or outdoor advertisement, or in any other 
printed or graphic matter, any advertisement of malt beverages, if such 
advertising is in, or is calculated to induce sales in, interstate or 
foreign commerce, or is disseminated by mail, unless such advertisement 
is in conformity with Sec. Sec.  7.50-7.55 of this part. Provided, that 
such sections shall not apply to outdoor advertising in place on 
(effective date of this Treasury decision), but shall apply upon 
replacement, restoration, or renovation of any such advertising; and 
provided further, that Sec. Sec.  7.50-7.55 of this part shall apply to 
advertisements of malt beverages intended to be sold or shipped or 
delivered for shipment, or otherwise introduced into or received in any 
State from any place outside thereof, only to the extent that the laws 
of such State impose similar requirements with respect to advertisements 
of malt beverages manufactured and sold or otherwise disposed of in such 
State. And provided further that such sections shall not apply to a 
retailer or the publisher of any newspaper, periodical, or other 
publication, or radio or television broadcast, unless such retailer or 
publisher or radio or television broadcaster is engaged in business as a 
brewer, wholesaler, bottler, or importer of malt beverages, directly or 
indirectly, or through an affiliate.

[T.D. ATF-180, 49 FR 31675, Aug. 8, 1984]



Sec.  7.51  Definitions.

    As used in Sec. Sec.  7.50 through 7.55 of this part, the term 
``advertisement'' includes any written or verbal statement, 
illustration, or depiction which is in, or calculated to induce sales 
in, interstate or foreign commerce, or is disseminated by mail, whether 
it appears in a newspaper, magazine, trade

[[Page 103]]

booklet, menu, wine card, leaflet, circular, mailer, book insert, 
catalog, promotional material, sales pamphlet, or in any written, 
printed, graphic, or other matter accompanying the container, 
representations made on cases, or in any billboard, sign, or other 
outdoor advertisement, public transit card, other periodical literature, 
publication, or in a radio or television broadcast, or in any other 
media; except that such term shall not include:
    (a) Any label affixed to any container of malt beverages; or any 
coverings, cartons, or cases of containers of malt beverages used for 
sale at retail which constitute a part of the labeling under Sec. Sec.  
7.20 through 7.29 of this part.
    (b) Any editorial or other reading material (i.e., news release) in 
any periodical or publication or newspaper for the publication of which 
no money or valuable consideration is paid or promised, directly or 
indirectly, by any brewer, and which is not written by or at the 
direction of the brewer.

[T.D. ATF-180, 49 FR 31675, Aug. 8, 1984]



Sec.  7.52  Mandatory statements.

    (a) Responsible advertiser. The advertisement shall state the name 
and address of the brewer, bottler, packer, wholesaler, or importer 
responsible for its publication or broadcast. Street number and name may 
be omitted in the address.
    (b) Class. The advertisement shall contain a conspicuous statement 
of the class to which the product belongs, corresponding to the 
statement of class which is required to appear on the label of the 
product.
    (c) Exception. (1) If an advertisement refers to a general malt 
beverage line or all of the malt beverage products of one company, 
whether by the company name or by the brand name common to all the malt 
beverages in the line, the only mandatory information necessary is the 
name and address of the responsible advertiser. This exception does not 
apply where only one type of malt beverage is marketed under the 
specific brand name advertised.
    (2) On consumer specialty items, the only information necessary is 
the company name or brand name of the product.

[T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-180, 49 
FR 31675, Aug. 8, 1984]



Sec.  7.53  Legibility of mandatory information.

    (a) Statements required under Sec. Sec.  7.50 through 7.55 of this 
part that appear in any written, printed, or graphic advertisement shall 
be in lettering or type size sufficient to be conspicuous and readily 
legible.
    (b) In the case of signs, billboards, and displays the name and 
address of the permittee responsible for the advertisement may appear in 
type size of lettering smaller than the other mandatory information, 
provided such information can be ascertained upon closer examination of 
the sign or billboard.
    (c) Mandatory information shall be so stated as to be clearly a part 
of the advertisement and shall not be separated in any manner from the 
remainder of the advertisement.
    (d) Mandatory information for two or more products shall not be 
stated unless clearly separated.
    (e) Mandatory information shall be so stated in both the print and 
audiovisual media that it will be readily apparent to the persons 
viewing the advertisement.

[T.D. ATF-180, 49 FR 31675, Aug. 8, 1984]



Sec.  7.54  Prohibited statements.

    (a) General prohibition. An advertisement of malt beverages must not 
contain:
    (1) Any statement that is false or untrue in any material 
particular, or that, irrespective of falsity, directly, or by ambiguity, 
omission, or inference, or by the addition of irrelevant, scientific or 
technical matter, tends to create a misleading impression.
    (2) Any statement that is disparaging of a competitor's products.
    (3) Any statement, design, device, or representation which is 
obscene or indecent.
    (4) Any statement, design, device, or representation of or relating 
to analyses, standards, or tests, irrespective of

[[Page 104]]

falsity, which the appropriate TTB officer finds to be likely to mislead 
the consumer.
    (5) Any statement, design, device, or representation of or relating 
to any guarantee, irrespective of falsity, which the appropriate TTB 
officer finds to be likely to mislead the consumer. Money-back 
guarantees are not prohibited.
    (6) Any statement that the malt beverages are brewed, made, bottled, 
packed, labeled, or sold under, or in accordance with, any municipal, 
State, or Federal authorization, law, or regulation; and if a municipal 
or State permit number is stated, the permit number shall not be 
accompanied by any additional statement relating thereto.
    (7) The words ``bonded'', ``bottled in bond'', ``aged in bond'', 
``bonded age'', ``bottled under customs supervision'', or phrases 
containing these or synonymous terms which imply governmental 
supervision over production, bottling, or packing.
    (8) Any statement, design, device, or representation that tends to 
create a false or misleading impression that the malt beverage contains 
distilled spirits or is a distilled spirits product. This paragraph does 
not prohibit the following in advertisements for malt beverages:
    (i) A truthful and accurate statement of alcohol content, in 
conformity with Sec.  7.71;
    (ii) The use of a brand name of a distilled spirits product as a 
malt beverage brand name, provided that the overall advertisement does 
not present a misleading impression about the identity of the product; 
or
    (iii) The use of a cocktail name as a brand name or fanciful name of 
a malt beverage, provided that the overall advertisement does not 
present a misleading impression about the identity of the product.
    (b) Statements inconsistent with labeling. (1) Advertisements shall 
not contain any statement concerning a brand or lot of malt beverages 
that is inconsistent with any statement on the labeling thereof.
    (2) Any label depicted on a bottle in an advertisement shall be a 
reproduction of an approved label.
    (c) Alcoholic content. (1) Advertisements shall not contain the 
words ``strong,'' ``full strength,'' ``extra strength,'' ``high test,'' 
``high proof,'' ``full alcohol strength,'' or any other statement of 
alcoholic content, or any statement of the percentage and quantity of 
the original extract, or any numerals, letters, characters, figures, or 
similar words or statements, likely to be considered as statements of 
alcoholic content, unless required by State law. This does not preclude 
use of the terms ``low alcohol,'' ``reduced alcohol,'' ``non-
alcoholic,'' and ``alcohol-free,'' as used on labels, in accordance with 
Sec.  7.71 (d), (e), and (f).
    (2) An approved malt beverage label which bears a statement of 
alcoholic content permitted under Sec.  7.71 may be depicted in any 
advertising media. The statement of alcoholic content on the label may 
not appear more prominently in the advertisement than it does on the 
approved label.
    (3) An actual malt beverage bottle showing the approved label 
bearing a statement of alcoholic content permitted under Sec.  7.71 may 
be displayed in any advertising media.
    (d) Class. (1) No product containing less than one-half of 1 per 
centum of alcohol by volume shall be designated in any advertisement as 
``beer'', ``lager beer'', ``lager'', ``ale'', ``porter'', or ``stout'', 
or by any other class or type designation commonly applied to fermented 
malt beverages containing one-half of 1 per centum or more of alcohol by 
volume.
    (2) No product other than a malt beverage fermented at comparatively 
high temperature, possessing the characteristics generally attributed to 
``ale,'' ``porter,'' or ``stout'' and produced without the use of 
coloring or flavoring materials (other than those recognized in standard 
brewing practices) shall be designated in any advertisement by any of 
these class designations.
    (e) Health-related statements--(1) Definitions. When used in this 
paragraph (e), terms are defined as follows:
    (i) Health-related statement means any statement related to health 
and includes statements of a curative or therapeutic nature that, 
expressly or by implication, suggest a relationship between the 
consumption of alcohol,

[[Page 105]]

malt beverages, or any substance found within the malt beverage, and 
health benefits or effects on health. The term includes both specific 
health claims and general references to alleged health benefits or 
effects on health associated with the consumption of alcohol, malt 
beverages, or any substance found within the malt beverage, as well as 
health-related directional statements. The term also includes statements 
and claims that imply that a physical or psychological sensation results 
from consuming the malt beverage, as well as statements and claims of 
nutritional value (e.g., statements of vitamin content). Statements 
concerning caloric, carbohydrate, protein, and fat content do not 
constitute nutritional claims about the product.
    (ii) Specific health claim is a type of health-related statement 
that, expressly or by implication, characterizes the relationship of the 
malt beverage, alcohol, or any substance found within the malt beverage, 
to a disease or health-related condition. Implied specific health claims 
include statements, symbols, vignettes, or other forms of communication 
that suggest, within the context in which they are presented, that a 
relationship exists between malt beverages, alcohol, or any substance 
found within the malt beverage, and a disease or health-related 
condition.
    (iii) Health-related directional statement is a type of health-
related statement that directs or refers consumers to a third party or 
other source for information regarding the effects on health of malt 
beverage or alcohol consumption.
    (2) Rules for advertising--(i) Health-related statements. In 
general, advertisements may not contain any health-related statement 
that is untrue in any particular or tends to create a misleading 
impression as to the effects on health of alcohol consumption. TTB will 
evaluate such statements on a case-by-case basis and may require as part 
of the health-related statement a disclaimer or some other qualifying 
statement to dispel any misleading impression conveyed by the health-
related statement. Such disclaimer or other qualifying statement must 
appear as prominent as the health-related statement.
    (ii) Specific health claims. A specific health claim will not be 
considered misleading if it is truthful and adequately substantiated by 
scientific or medical evidence; sufficiently detailed and qualified with 
respect to the categories of individuals to whom the claim applies; 
adequately discloses the health risks associated with both moderate and 
heavier levels of alcohol consumption; and outlines the categories of 
individuals for whom any levels of alcohol consumption may cause health 
risks. This information must appear as part of the specific health claim 
and in a manner as prominent as the specific health claim.
    (iii) Health-related directional statements. A statement that 
directs consumers to a third party or other source for information 
regarding the effects on health of malt beverage or alcohol consumption 
is presumed misleading unless it--
    (A) Directs consumers in a neutral or other non-misleading manner to 
a third party or other source for balanced information regarding the 
effects on health of malt beverage or alcohol consumption; and
    (B)(1) Includes as part of the health-related directional statement, 
and in a manner as prominent as the health-related directional 
statement, the following disclaimer: ``This statement should not 
encourage you to drink or increase your alcohol consumption for health 
reasons;'' or
    (2) Includes as part of the health-related directional statement, 
and in a manner as prominent as the health-related directional 
statement, some other qualifying statement that the appropriate TTB 
officer finds is sufficient to dispel any misleading impression conveyed 
by the health-related directional statement.
    (f) Confusion of brands. Two or more different brands or lots of 
malt beverages shall not be advertised in one advertisement (or in two 
or more advertisements in one issue of a periodical or a newspaper or in 
one piece of other written, printed, or graphic matter) if the 
advertisement tends to create the impression that representations made 
as to one brand or lot apply

[[Page 106]]

to the other or others, and if as to such latter the representations 
contravene any provision of Sec. Sec.  7.50 through 7.54 or are in any 
respect untrue.
    (g) Flags, seals, coats of arms, crests, and other insignia. No 
advertisement shall contain any statement, design, device, or pictorial 
representation of or relating to, or capable of being construed as 
relating to the armed forces of the United States, or of the American 
flag, or of any emblem, seal, insignia, or decoration associated with 
such flag or armed forces; nor shall any advertisement contain any 
statement, device, design, or pictorial representation of or concerning 
any flag, seal, coat of arms, crest, or other insignia, likely to 
mislead the consumer to believe that the product has been endorsed, 
made, or used by, or produced for, or under the supervision of, or in 
accordance with the specifications of the government, organization, 
family, or individual with whom such flag, seal, coat of arms, crest, or 
insignia is associated.
    (h) Deceptive advertising techniques. Subliminal or similar 
techniques are prohibited. ``Subliminal or similar techniques,'' as used 
in this part, refers to any device or technique that is used to convey, 
or attempts to convey, a message to a person by means of images or 
sounds of a very brief nature that cannot be perceived at a normal level 
of awareness.

[T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-180, 49 
FR 31675, Aug. 8, 1984; T.D. ATF 280, 54 FR 3594, Jan. 25, 1989; T.D. 
ATF-339, 58 FR 21232, Apr. 19, 1993; TTB T.D.-1, 68 FR 10106, Mar. 3, 
2003; TTB T.D.-21, 70 FR 235, Jan. 3, 2005]



Sec.  7.55  Comparative advertising.

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

[T.D. ATF-180, 49 FR 31676, Aug. 8, 1984]



                      Subpart G_General Provisions



Sec.  7.60  Exports.

    This part shall not apply to malt beverages exported in bond.



     Subpart H_Interim Regulations for Alcoholic Content Statements



Sec.  7.71  Alcoholic content.

    (a) General. Alcoholic content and the percentage and quantity of 
the original gravity or extract may be stated on a label unless 
prohibited by State law. When alcoholic content is stated, and the 
manner of statement is not required under State law, it shall be stated 
as prescribed in paragraph (b) of this section.
    (b) Form of statement. (1) Statement of alcoholic content shall be 
expressed in percent alcohol by volume, and not by percent by weight, 
proof, or by maximums or minimums.
    (2) For malt beverages containing 0.5 percent or more alcohol by 
volume, statements of alcoholic content shall be expressed to the 
nearest one-tenth of a percent, subject to the tolerance permitted by 
paragraph (c) (1) and (2) of this section. For malt beverages containing 
less than 0.5 percent alcohol by volume, alcoholic content may be 
expressed in one-hundredths of a percent, subject to the tolerance 
permitted in paragraph (c)(3) of this section.
    (3) Alcoholic content shall be expressed in the following fashion: 
``alcohol--percent by volume,'' ``alcohol by volume--percent,'' ``--
percent alcohol by volume,'' or ``--percent alcohol/volume.'' The 
abbreviations ``alc'' and ``vol'' may be used in lieu of the words 
``alcohol'' and ``volume,'' and the symbol ``%'' may be used in lieu of 
the word ``percent.''
    (c) Tolerances. (1) For malt beverages containing 0.5 percent or 
more alcohol by volume, a tolerance of 0.3 percent

[[Page 107]]

will be permitted, either above or below the stated percentage of 
alcohol. Any malt beverage which is labeled as containing 0.5 percent or 
more alcohol by volume may not contain less than 0.5 percent alcohol by 
volume, regardless of any tolerance.
    (2) For malt beverages which are labeled as ``low alcohol'' or 
``reduced alcohol'' under paragraph (d) of this section, the actual 
alcoholic content may not equal or exceed 2.5 percent alcohol by volume, 
regardless of any tolerance permitted by paragraph (c)(1) of this 
section.
    (3) For malt beverages containing less than 0.5 percent alcohol by 
volume, the actual alcoholic content may not exceed the labeled 
alcoholic content. A malt beverage may not be labeled with an alcoholic 
content of 0.0 percent alcohol by volume unless it is also labeled as 
``alcohol free'' and contains no alcohol.
    (d) Low alcohol and reduced alcohol. The terms ``low alcohol'' or 
``reduced alcohol'' may be used only on malt beverages containing less 
than 2.5 percent alcohol by volume.
    (e) Non-alcoholic. The term ``non-alcoholic'' may be used on malt 
beverages, provided the statement ``contains less than 0.5 percent (or 
.5%) alcohol by volume'' appears in direct conjunction with it, in 
readily legible printing and on a completely contrasting background.
    (f) Alcohol free. The term ``alcohol free'' may be used only on malt 
beverages containing no alcohol.

[T.D. ATF-339, 58 FR 21232, Apr. 19, 1993]



                  Subpart I_Use of the Term ``Organic''



Sec.  7.81  Use of the term ``organic.''

    (a) Use of the term ``organic'' is optional and is treated as 
``additional information on labels'' under Sec.  7.28(e).
    (b) Any use of the term ``organic'' on a malt beverage label or in 
advertising of malt beverages must comply with the United States 
Department of Agriculture's (USDA) National Organic Program rules (7 CFR 
part 205) as interpreted by the USDA.
    (c) This section applies to labels and advertising that use the term 
``organic'' on and after October 21, 2002.

[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002]



PART 8_EXCLUSIVE OUTLETS--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
8.1 General.
8.2 Territorial extent.
8.3 Application.
8.4 Jurisdictional limits.
8.5 Delegations of the Administrator.
8.6 Administrative provisions.

                          Subpart B_Definitions

8.11 Meaning of terms.

                     Subpart C_Prohibited Practices

8.21 General.
8.22 Contracts to purchase distilled spirits, wine, or malt beverages.
8.23 Third party arrangements.

                           Subpart D_Exclusion

8.51 Exclusion, in general.
8.52 Practices which result in exclusion.
8.53 Practice not resulting in exclusion.
8.54 Criteria for determining retailer independence.

    Authority: 15 U.S.C. 49-50; 27 U.S.C. 202 and 205; 44 U.S.C. 
3504(h).

    Source: T.D. ATF-74, 45 FR 63256, Sept. 23, 1980, unless otherwise 
noted.



                     Subpart A_Scope of Regulations



Sec.  8.1  General.

    The regulations in this part, issued pursuant to section 105 of the 
Federal Alcohol Administration Act (27 U.S.C. 205), specify arrangements 
which are exclusive outlets under section 105(a) of the Act and criteria 
for determining whether a practice is a violation of section 105(a) of 
the Act. This part does not attempt to enumerate all of the practices 
prohibited by section 105(a) of the Act. Nothing in this part shall 
operate to exempt any person from the requirements of any State law or 
regulation.

[T.D. ATF-364, 60 FR 20425, Apr. 26, 1995]

[[Page 108]]



Sec.  8.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and Puerto Rico.



Sec.  8.3  Application.

    (a) General. This part applies only to transactions between industry 
members and retailers. It does not apply to transactions between two 
industry members; for example, between a producer and a wholesaler.
    (b) Transactions involving State agencies. The regulations in this 
part apply only to transactions between industry members and State 
agencies operating as retailers as defined in this part. The regulations 
do not apply to State agencies with regard to their wholesale dealings 
with retailers.



Sec.  8.4  Jurisdictional limits.

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



Sec.  8.5  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.8, Delegation of the Administrator's 
Authorities in 27 CFR Part 8, Exclusive Outlets. You may obtain a copy 
of this order by accessing the TTB Web site (http://www.ttb.gov) or by 
mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. TTB-44, 71 FR 16923, Apr. 4, 2006]



Sec.  8.6  Administrative provisions.

    (a) General. The Act makes applicable the provisions including 
penalties of sections 49 and 50 of Title 15, United States Code, to the 
jurisdiction, powers and duties of the Administrator under this Act, and 
to any person (whether or not a corporation) subject to the provisions 
of law administered by the Administrator under this Act. The Act also 
provides that the Administrator is authorized to require, in such manner 
and such form as he or she shall prescribe, such reports as are 
necessary to carry out the powers and duties under this chapter.
    (b) Examination and subpoena. Any appropriate TTB officer shall at 
all reasonable times have access to, for the purpose of examination, and 
the right to copy any documentary evidence of any person, partnership, 
or corporation being investigated or proceeded against. An appropriate 
TTB officer shall also have the power to require by subpoena the 
attendance and testimony of witnesses and the production of all such 
documentary evidence relating to any matter under investigation, upon a 
satisfactory showing the requested evidence may reasonably be expected 
to yield information relevant to any matter being investigated under the 
Act.
    (c) Reports required by the appropriate TTB officer--(1) General. 
The appropriate TTB officer may, as part of a trade practice 
investigation of an industry member, require such industry

[[Page 109]]

member to submit a written report containing information on 
sponsorships, advertisements, promotions, and other activities 
pertaining to its business subject to the Act conducted by, or on behalf 
of, or benefiting the industry member.
    (2) Preparation. The report will be prepared by the industry member 
in letter form, executed under the penalties of perjury, and will 
contain the information specified by the appropriate TTB officer. The 
period covered by the report will not exceed three years.
    (3) Filing. The report will be filed in accordance with the 
instructions of the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0392)

[T.D. ATF-364, 60 FR 20425, Apr. 26, 1995. Redesignated and amended by 
T.D. ATF-428, 65 FR 52020, Aug. 28, 2000]



                          Subpart B_Definitions



Sec.  8.11  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
have the meanings given in this section. Any other term defined in the 
Federal Alcohol Administration Act and used in this part shall have the 
meaning assigned to it by that Act.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.8, Delegation of the Administrator's Authorities in 27 CFR Part 8, 
Exclusive Outlets.
    Industry member. Any person engaged in business as a distiller, 
brewer, rectifier, blender, or other producer, or as an importer or 
wholesaler, of distilled spirits, wine or malt beverages, or as a 
bottler, or warehouseman and bottler, of distilled spirits; industry 
member does not include an agency of a State or political subdivision 
thereof, or an officer or employee of such agency.
    Product. Distilled spirits, wine or malt beverages, as defined in 
the Federal Alcohol Administration Act.
    Retailer. Any person engaged in the sale of distilled spirits, wine 
or malt beverages to consumers. A wholesaler who makes incidental retail 
sales representing less than five percent of the wholesaler's total 
sales volume for the preceding two-month period shall not be considered 
a retailer with respect to such incidental sales.

T.D. ATF-74, 45 FR 63256, Sept. 23, 1980, as amended by T.D. ATF-364, 60 
FR 20425, Apr. 26, 1995; T.D. ATF-428, 65 FR 52020, Aug. 28, 2000; T.D. 
TTB-44, 71 FR 16923, Apr. 4, 2006]



                     Subpart C_Prohibited Practices



Sec.  8.21  General.

    It is unlawful for an industry member to require, by agreement or 
otherwise, that any retailer purchase distilled spirits, wine, or malt 
beverages from the industry member to the exclusion, in whole or in 
part, of products sold or offered for sale by other persons in 
interstate or foreign commerce. This prohibition includes purchases 
coerced by industry members, through acts or threats of physical or 
economic harm, as well as voluntary industry member-retailer purchase 
agreements.



Sec.  8.22  Contracts to purchase distilled spirits, wine, or malt beverages.

    Any contract or agreement, written or unwritten, which has the 
effect of requiring the retailer to purchase distilled spirits, wine, or 
malt beverages from the industry member beyond a single sales 
transaction is prohibited. Examples of such contracts are:
    (a) An advertising contract between an industry member and a 
retailer with the express or implied requirement of the purchase of the 
advertiser's products; or
    (b) A sales contract awarded on a competitive bid basis which has 
the effect of prohibiting the retailer from purchasing from other 
industry members by:
    (1) Requiring that for the period of the agreement, the retailer 
purchase a product or line of products exclusively from the industry 
member; or

[[Page 110]]

    (2) Requiring that the retailer purchase a specific or minimum 
quantity during the period of the agreement.



Sec.  8.23  Third party arrangements.

    Industry member requirements, by agreement or otherwise, with non-
retailers which result in a retailer being required to purchase the 
industry member's products are within the exclusive outlet provisions. 
These industry member requirements are covered whether the agreement or 
other arrangement originates with the industry member or the third 
party. For example, a supplier enters into a contractual agreement or 
other arrangement with a third party. This agreement or arrangement 
contains an industry member requirement as described above. The third 
party, a ballclub, or municipal or private corporation, not acting as a 
retailer, leases the concession rights and is able to control the 
purchasing decisions of the retailer. The third party, as a result of 
the requirement, by agreement or otherwise, with the industry member, 
requires the retailer to purchase the industry member's products to the 
exclusion, in whole or in part, of products sold or offered for sale by 
other persons in interstate or foreign commerce. The business 
arrangements entered into by the industry member and the third party may 
consist of such things as sponsoring radio or television broadcasting, 
paying for advertising, or providing other services or things of value.

[T.D. ATF-364, 60 FR 20425, Apr. 26, 1995]



                           Subpart D_Exclusion

    Source: T.D. ATF-364, 60 FR 20425, Apr. 26, 1995, unless otherwise 
noted.



Sec.  8.51  Exclusion, in general.

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



Sec.  8.52  Practices which result in exclusion.

    The practices specified in this section result in exclusion under 
section 105(a) of the Act. The practices specified here are examples and 
do not constitute a complete list of such practices:
    (a) Purchases of distilled spirits, wine or malt beverages by a 
retailer as a result, directly or indirectly, of a threat or act of 
physical or economic harm by the selling industry member.
    (b) Contracts between an industry member and a retailer which 
require the retailer to purchase distilled spirits, wine, or malt 
beverages from that industry member and expressly restrict the retailer 
from purchasing, in whole or in part, such products from another 
industry member.



Sec.  8.53  Practice not resulting in exclusion.

    The practice specified in this section is deemed not to result in 
exclusion under section 105(a) of the Act: a supply contract for one 
year or less between the industry member and retailer under which the 
industry member agrees to sell distilled spirits, wine, or malt 
beverages to the retailer on an ``as needed'' basis provided that the 
retailer is not required to purchase any minimum quantity of such 
product.



Sec.  8.54  Criteria for determining retailer independence.

    The criteria specified in this section are indications that a 
particular practice, other than those in Sec. Sec.  8.52 and 8.53, 
places retailer independence at risk. A practice need not meet all of 
the criteria specified in this section in order to place retailer 
independence at risk.
    (a) The practice restricts or hampers the free economic choice of a 
retailer to decide which products to purchase

[[Page 111]]

or the quantity in which to purchase them for sale to consumers.
    (b) The industry member obligates the retailer to participate in the 
promotion to obtain the industry member's product.
    (c) The retailer has a continuing obligation to purchase or 
otherwise promote the industry member's product.
    (d) The retailer has a commitment not to terminate its relationship 
with the industry member with respect to purchase of the industry 
member's products.
    (e) The practice involves the industry member in the day-to-day 
operations of the retailer. For example, the industry member controls 
the retailer's decisions on which brand of products to purchase, the 
pricing of products, or the manner in which the products will be 
displayed on the retailer's premises.
    (f) The practice is discriminatory in that it is not offered to all 
retailers in the local market on the same terms without business reasons 
present to justify the difference in treatment.



PART 9_AMERICAN VITICULTURAL AREAS--Table of Contents




                      Subpart A_General Provisions

Sec.
9.1 Scope.
9.2 Territorial extent.
9.3 Relation to parts 4 and 70 of this chapter.

                          Subpart B_Definitions

9.11 Meaning of terms.

             Subpart C_Approved American Viticultural Areas

9.21 General.
9.22 Augusta.
9.23 Napa Valley.
9.24 Chalone.
9.25 San Pasqual Valley.
9.26 Guenoc Valley.
9.27 Lime Kiln Valley.
9.28 Santa Maria Valley.
9.29 Sonoma Valley.
9.30 North Coast.
9.31 Santa Cruz Mountains.
9.32 Los Carneros.
9.33 Fennville.
9.34 Finger Lakes.
9.35 Edna Valley.
9.36 McDowell Valley.
9.37 California Shenandoah Valley.
9.38 Cienega Valley.
9.39 Paicines.
9.40 Leelanau Peninsula.
9.41 Lancaster Valley.
9.42 Cole Ranch.
9.43 Rocky Knob.
9.44 Solano County Green Valley.
9.45 Suisun Valley.
9.46 Livermore Valley.
9.47 Hudson River Region.
9.48 Monticello.
9.49 Central Delaware Valley.
9.50 Temecula Valley.
9.51 Isle St. George.
9.52 Chalk Hill.
9.53 Alexander Valley.
9.54 Santa Ynez Valley.
9.55 Bell Mountain.
9.56 San Lucas.
9.57 Green Valley of Russian River Valley.
9.58 Carmel Valley.
9.59 Arroyo Seco.
9.60 Shenandoah Valley.
9.61 El Dorado.
9.62 Loramie Creek.
9.63 Linganore.
9.64 Dry Creek Valley.
9.65 North Fork of Roanoke.
9.66 Russian River Valley.
9.67 Catoctin.
9.68 Merritt Island.
9.69 Yakima Valley.
9.70 Northern Sonoma.
9.71 Hermann.
9.72 Southeastern New England.
9.73 Martha's Vineyard.
9.74 Columbia Valley.
9.75 Central Coast.
9.76 Knights Valley.
9.77 Altus.
9.78 Ohio River Valley.
9.79 Lake Michigan Shore.
9.80 York Mountain.
9.81 Fiddletown.
9.82 Potter Valley.
9.83 Lake Erie.
9.84 Paso Robles.
9.85 Willow Creek.
9.86 Anderson Valley.
9.87 Grand River Valley.
9.88 Pacheco Pass.
9.89 Umpqua Valley.
9.90 Willamette Valley.
9.91 Walla Walla Valley.
9.92 Madera.
9.93 Mendocino.
9.94 Howell Mountain.
9.95 Clarksburg.
9.96 Mississippi Delta.
9.97 Sonoita.
9.98 Monterey.
9.99 Clear Lake.
9.100 Mesilla Valley.
9.101 The Hamptons, Long Island.
9.102 Sonoma Mountain.
9.103 Mimbres Valley.
9.104 South Coast.

[[Page 112]]

9.105 Cumberland Valley.
9.106 North Yuba.
9.107 Lodi.
9.108 Ozark Mountain.
9.109 Northern Neck George Washington Birthplace.
9.110 San Benito.
9.111 Kanawha River Valley.
9.112 Arkansas Mountain.
9.113 North Fork of Long Island.
9.114 Old Mission Peninsula.
9.115 Ozark Highlands.
9.116 Sonoma Coast.
9.117 Stags Leap District.
9.118 Ben Lomond Mountain.
9.119 Middle Rio Grande Valley.
9.120 Sierra Foothills.
9.121 Warren Hills.
9.122 Western Connecticut Highlands.
9.123 Mt. Veeder.
9.124 Wild Horse Valley.
9.125 Fredericksburg in the Texas Hill Country.
9.126 Santa Clara Valley.
9.127 Cayuga Lake.
9.128 Seneca Lake.
9.129 Arroyo Grande Valley.
9.130 San Ysidro District.
9.131 Mt. Harlan.
9.132 Rogue Valley.
9.133 Rutherford.
9.134 Oakville.
9.135 Virginia's Eastern Shore.
9.136 Texas Hill Country.
9.137 Grand Valley.
9.138 Benmore Valley.
9.139 Santa Lucia Highlands.
9.140 Atlas Peak.
9.141 Escondido Valley.
9.142 Bennett Valley.
9.143 Spring Mountain District.
9.144 Texas High Plains.
9.145 Dunnigan Hills.
9.146 Lake Wisconsin.
9.147 Hames Valley.
9.148 Seiad Valley.
9.149 St. Helena.
9.150 Cucamonga Valley.
9.151 Puget Sound.
9.152 Malibu-Newton Canyon.
9.153 Redwood Valley.
9.154 Chiles Valley.
9.155 Texas Davis Mountains.
9.156 Diablo Grande.
9.157 San Francisco Bay.
9.158 Mendocino Ridge.
9.159 Yorkville Highlands.
9.160 Yountville.
9.161 Oak Knoll District of Napa Valley.
9.162 Sta. Rita Hills.
9.163 Salado Creek.
9.164 River Junction.
9.165 Applegate Valley.
9.166 Diamond Mountain District.
9.167 Red Mountain.
9.168 Fair Play.
9.169 Red Hills Lake County.
9.170 Long Island.
9.171 San Bernabe.
9.172 West Elks.
9.173 Rockpile.
9.174 Yadkin Valley.
9.175 Dos Rios.
9.176 Capay Valley.
9.177 Alexandria Lakes.
9.178 Columbia Gorge.
9.179 Southern Oregon.
9.180 Dundee Hills.
9.181 McMinnville.
9.182 Ribbon Ridge.
9.183 Yamhill-Carlton District.
9.184 Trinity Lakes.
9.185 Texoma.
9.186 Niagara Escarpment.
9.187 Covelo.
9.188 Horse Heaven Hills.
9.189 High Valley.
9.190 Red Hill Douglas County, Oregon.
9.191 Ramona Valley.
9.192 Wahluke Slope.
9.193 Rattlesnake Hills.
9.194 San Antonio Valley.
9.195 Alta Mesa.
9.196 Borden Ranch.
9.197 Clements Hills.
9.198 Cosumnes River.
9.199 Jahant.
9.200 Mokelumne River.
9.201 Sloughhouse.
9.202 Eola-Amity Hills.
9.203 Saddle Rock-Malibu.
9.204 Tracy Hills.
9.205 Chehalem Mountains.
9.206 Shawnee Hills.
9.207 Outer Coastal Plain.
9.208 Snake River Valley.
9.210 Lehigh Valley.

    Authority: 27 U.S.C. 205.

    Source: T.D. ATF-60, 44 FR 56692, Oct. 2, 1979, unless otherwise 
noted.



                      Subpart A_General Provisions



Sec.  9.1  Scope.

    The regulations in this part relate to American viticultural areas.



Sec.  9.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and Puerto Rico.



Sec.  9.3  Relation to parts 4 and 70 of this chapter.

    (a) Procedure. In accordance with Sec. Sec.  4.25a(e)(2) and 
70.701(c) of this chapter, the Administrator shall receive petitions to 
establish American viticultural areas and shall use the informal 
rulemaking process, under 5

[[Page 113]]

U.S.C. 553, in establishing viticultural areas in this part.
    (b) Information to establish an American viticultural area. A 
petition, made in writing, shall contain the following information:
    (1) Evidence that the name of the viticultural area is locally and/
or nationally known as referring to the area specified in the 
application;
    (2) Historical or current evidence that the boundaries of the 
viticultural area are as specified in the application;
    (3) Evidence relating to the geographical features (climate, soil, 
elevation, physical features, etc.) which distinguish the viticultural 
features of the proposed area from surrounding areas;
    (4) The specific boundaries of the viticultural area, based on 
features which can be found on United States Geological Survey 
(U.S.G.S.) maps of the largest applicable scale; and
    (5) A copy of the appropriate U.S.G.S. map(s) with the boundaries 
prominently marked. (For U.S.G.S. maps, write the U.S. Geological 
Survey, Branch of Distribution, Box 25286, Federal Center, Denver, 
Colorado 80225. If the map name is not known, request a map index by 
State.)

[T.D. ATF-60, 44 FR 56692, Oct. 2, 1979, as amended by T.D. ATF-92, 46 
FR 46913, Sept. 23, 1981; T.D. ATF -355, 59 FR 14553, Mar. 29, 1994; 
T.D. ATF-432, 65 FR 69253, Nov. 16, 2000]



                          Subpart B_Definitions



Sec.  9.11  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
shall have the meaning ascribed in this section.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    American. Of or relating to the several States, the District of 
Columbia, and Puerto Rico; ``State'' includes the District of Columbia 
and Puerto Rico.
    Approved map. The map used to define the boundaries of an approved 
viticultural area.
    Use of other terms. Any other term defined in the Federal Alcohol 
Administration Act and used in this part shall have the same meaning 
assigned to it by the Act.
    U.S.G.S. The United States Geological Survey.
    Viticultural area. A delimited, grape-growing region distinguishable 
by geographical features, the boundaries of which have been delineated 
in subpart C of this part.

[T.D. ATF-60, 44 FR 56692, Oct. 2, 1979, as amended by T.D. TTB-44, 71 
FR 16923, Apr. 4, 2006]



             Subpart C_Approved American Viticultural Areas



Sec.  9.21  General.

    The viticultural areas listed in this subpart are approved for use 
as appellations of origin in accordance with part 4 of this chapter.



Sec.  9.22  Augusta.

    (a) Name. The name of the viticultural area described in this 
section is ``Augusta.''
    (b) Approved maps. The approved maps for the Augusta viticultural 
area are two U.S.G.S. maps. They are titled:
    (1) ``Washington East, Missouri'', 7.5 minute quadrangle; and
    (2) ``Labadie, Missouri'', 7.5 minute quadrangle.
    (c) Boundaries. The boundaries of the Augusta viticultural area are 
located in the State of Missouri and are as follows:
    (1) The beginning point of the boundary is the intersection of the 
St. Charles County line, the Warren County line and the Franklin County 
line.
    (2) The western boundary is the St. Charles County-Warren County 
line from the beginning point to the township line identified on the 
approved maps as ``T45N/T44N.''
    (3) The northern boundary is the township line ``T45N/T44N'' from 
the St. Charles County-Warren County line to the range line identified 
on the approved maps as ``R1E/R2E.''
    (4) The eastern boundary is the range line ``R1E/R2E'' from township 
line ``T45N/T44N'' extended to the St. Charles County-Franklin County 
line.
    (5) The southern boundary is the St. Charles County-Franklin County 
line

[[Page 114]]

from the extension of range line ``R1E/R2E'' to the beginning point.

[T.D. ATF-72, 45 FR 41633, June 20, 1980]



Sec.  9.23  Napa Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Napa Valley.''
    (b) Approved maps. The maps showing the boundaries of the Napa 
Valley viticultural area are the:
    (1) ``Mt. St. Helena'' U.S.G.S. 7.5 minute quadrangle;
    (2) ``Detert Reservoir'' U.S.G.S. 7.5 minute quadrangle;
    (3) ``St. Helena'' U.S.G.S. 15 minute quadrangle;
    (4) ``Jericho Valley'' U.S.G.S. 7.5 minute quadrangle;
    (5) ``Lake Berryessa'' U.S.G.S. 15 minute quadrangle;
    (6) ``Mt. Vaca'' U.S.G.S. 15 minute quadrangle;
    (7) ``Cordelia'' U.S.G.S. 7.5 minute quadrangle;
    (8) ``Cuttings Wharf'' U.S.G.S. 7.5 minute quadrangle; and
    (9) Appropriate Napa County tax assessor's maps showing the Napa 
County-Sonoma County line.
    (c) Boundaries. The Napa Valley viticultural area is located within 
Napa County, California. From the beginning point at the conjuction of 
the Napa County-Sonoma County line and the Napa County-Lake County line, 
the boundary runs along--
    (1) The Napa County-Lake County line;
    (2) Putah Creek and the western and southern shores of Lake 
Berryessa;
    (3) The Napa County-Solano County line; and
    (4) The Napa County-Sonoma County line to the beginning point.

[T.D. ATF-79, 46 FR 9063, Jan. 28, 1981, as amended by T.D. ATF-201, 50 
FR 12533, Mar. 29, 1985]



Sec.  9.24  Chalone.

    (a) Name The name of the viticultural area described in this section 
is ``Chalone.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Chalone viticultural area are four U.S.G.S. 7.5 minute 
quadrangle maps. They are titled:
    (1) ``Mount Johnson, California, 1968'';
    (2) ``Bickmore Canyon, California, 1968'';
    (3) ``Soledad, California, 1955''; and
    (4) ``North Chalone Peak, California, 1969.''
    (c) Boundaries. The Chalone viticultural area includes 8640 acres, 
primarily located in Monterey County, California, with small portions in 
the north and east located in San Benito County, California. The 
boundaries of the Chalone viticultural area encompass:
    (1) Sections 35 and 36, in their entirety, of T.16 S., R.6.E.;
    (2) Sections 1, 2 and 12, in their entirety, of T.17 S., R.6 E.;
    (3) Sections 6, 7, 8, 9, 16, and 17, in their entirety, the western 
half of Section 5, and the eastern half of Section 18 of T.17 S., R.7 
E.; and
    (4) Section 31, in its entirety, and the western half of Section 32 
of T.16 S., R.7 E.

[T.D. ATF-107, 47 FR 25519, June 14, 1982]



Sec.  9.25  San Pasqual Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``San Pasqual Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries are three U.S.G.S. maps. They are entitled:
    (1) ``Escondido Quadrangle, California--San Diego County'', 7.5 
minute series;
    (2) ``San Pasqual Quadrangle, California--San Diego County'', 7.5 
minute series;
    (3) ``Valley Center Quadrangle, California--San Diego County'', 7.5 
minute series.
    (c) Boundaries. The San Pasqual Valley viticultural area is located 
in San Diego County, California.
    (1) From the beginning point at the intersection of Interstate 15 
and the 500-foot contour line, north of the intersection of point of 
Interstate 15 and T.12 S./T.13 S., the boundary line follows the 500-
foot contour line to;
    (2) The point nearest San Pasqual Road and the 500-foot contour 
line, the boundary line follows the Escondido Corporate Boundary line to 
the 500-foot contour line on the hillock and

[[Page 115]]

circumnavigates said hillock back to the Escondido Corporate Boundary 
line and returns to the 500-foot contour line nearest to San Pasqual 
Road and;
    (3) Continues along the 500-foot contour line completely around San 
Pasqual Valley to a point where the 500-foot contour line intersects 
with Pomerado Road, at this point, the boundary line, in a straight, 
northwesterly direction crosses over to;
    (4) The 500-foot contour line of Battle Mountain, following the 500-
foot contour line around Battle Mountain to point nearest to Interstate 
15, at which point the boundary line crosses over to Interstate 15; and
    (5) Continues northward along Interstate 15 to the point of 
beginning.

[T.D. ATF-92, 46 FR 41493, Sept. 23, 1981]



Sec.  9.26  Guenoc Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Guenoc Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Guenoc Valley viticultural area are four USGS maps. 
They are titled:
    (1) ``Middletown Quadrangle, California-Lake Co.,'' 7.5 minute 
series;
    (2) ``Jericho Valley Quadrangle, California,'' 7.5 minute series;
    (3) ``Detert Reservoir Quadrangle, California,'' 7.5 minute series; 
and
    (4) ``Aetna Springs Quadrangle, California,'' 7.5 minute series.
    (c) Boundaries. The Guenoc Valley viticultural area is located 
within Lake County, California. The beginning point of the boundary is 
Station 20 of Denton's Survey of Guenoc Rancho, presently marked by a 
1\1/2\ inch galvanized pipe located atop Jim Davis Peak. On the approved 
maps, Jim Davis Peak is the unnamed peak (elevation 1,455 feet) located 
on the western boundary of Section 35, Township 11 North, Range 6 West. 
From this beginning point the boundary runs:
    (1) South 07[deg]49[min]34[sec] East, 9,822.57 feet to the USGS 
triangulation station ``Guenoc;''
    (2) Then, South 29[deg]14[min]31[sec] West, 10,325.08 feet;
    (3) Then, South 00[deg]00[min] West, 2,100.00 feet;
    (4) Then, North 90[deg]00[min] West, 4,150.00 feet;
    (5) Then, North 24[deg]23[min]11[sec] West, 16,469.36 feet;
    (6) Then, North 75[deg]47[min]20[sec] East, 7,943.08 feet; and
    (7) Then, North 60[deg]47[min]00[sec] East, 7,970.24 feet to the 
beginning point.

[T.D. ATF-95, 46 FR 56786, Nov. 19, 1981]



Sec.  9.27  Lime Kiln Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Lime Kiln Valley.''
    (b) Approved Map. The appropriate map for determining the boundaries 
of the Lime Kiln Valley Viticultural area is: ``Paicines Quadrangle, 
California,'' 1968, 7.5 minute series.
    (c) Boundaries. The Lime Kiln Valley viticultural area is located in 
San Benito County, California. From the beginning point at the 
intersection of Thompson Creek and Cienega Road, the boundary proceeds, 
in a straight line to the summit of an unnamed peak (1,288 feet) in the 
northwest quarter of Section 28, T.14 S./R.6 E.;
    (1) Thence in a straight line from the summit of the unnamed peak 
(1,288 feet) to a point where it intersects the 1,400-foot contour line, 
by the elevation marker, in the southwest quarter of T.14 S./R.6 E, 
Section 28;
    (2) Thence following the 1,400-foot contour line through the 
following sections; Sections 28, 29, and 30, T.14 S./R.6 E.; Section 25, 
T.14 S./R.5 E.; Sections 30, 19, 20, and returning to 19, T.14 S./R.6 
E., to a point where the 1,400-foot contour line intersects with the 
section line between Sections 19 and 18, T.14 S./R.6 E.;
    (3) Thence in a straight line to the Cienega School Building along 
Cienega Road;
    (4) Thence along Cienega Road to the point of beginning.

[T.D. ATF-106, 47 FR 24296, June 4, 1982, as amended by T.D. ATF-249, 52 
FR 5956, Feb. 27, 1987]



Sec.  9.28  Santa Maria Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Santa Maria Valley.''
    (b) Approved maps. The approved maps for the Santa Maria Valley are 
two U.S.G.S. maps entitled:

[[Page 116]]

    (1) ``Santa Maria'', N.I. 10-6, 9, series V 502, scale 1: 250,000; 
and
    (2) ``San Luis Obispo'', N.I. 10-3, series V 502, scale 1: 250,000.
    (c) Boundaries. The boundaries of the Santa Maria Valley 
viticultural area are located in portions of Santa Barbara and San Luis 
Obispo Counties, California, and are as follows:
    (1) Beginning at a point east of Orcutt where Highway U.S. 101 and 
the unnamed road (known locally as Clark Road) intersects; Thence 
northerly along U.S. 101 to a point where it intersects with Highway 
166;
    (2) Thence along Highway 166 in a general easterly direction to a 
point where Highway 166 intersects with the section line at the 
southwest section of Chimney Canyon;
    (3) Thence in a straight, southerly, line to the summit of Los 
Coches Mountain (3016 feet);
    (4) Thence in a straight, southeasterly, line to the summit of Bone 
Mountain (2822 feet);
    (5) Thence in a straight, south-southwesterly, line to the 
intersection of two unnamed roads (known locally as Alisos Canyon Road 
and Foxen Canyon Road) in Foxen Canyon at the elevation marker of 1116 
feet;
    (6) Thence along the unnamed road (known locally as Foxen Canyon 
Road) in a northwesterly direction to the community of Sisquoc; and
    (7) Thence in a westerly direction along the unnamed road (known 
locally as Clark Road) to the point of beginning.

[T.D. ATF-89, 46 FR 39812, Aug. 5, 1981, as amended by T.D. ATF-216, 50 
FR 43130, Oct. 24, 1985]



Sec.  9.29  Sonoma Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Sonoma Valley.''
    (b) Approved maps. The maps showing the boundaries of the Sonoma 
valley viticultural area are entitled:
    (1) ``Cuttings Wharf, Calif.'', 1949 (photorevised 1968 and 
photoinspected 1973), 7.5 minute quadrangle;
    (2) ``Petaluma Point, Calif.'', 1959 (photorevised 1968 and 
photoinspected 1973), 7.5 minute quadrangle;
    (3) ``Sears Point, Calif.'', 1951 (photorevised 1968), 7.5 minute 
quadrangle;
    (4) ``Petaluma River, Calif.'', 1954 (photorevised 1968 and 1973), 
7.5 minute quadrangle;
    (5) ``Glen Ellen, Calif.'', 1954 (photorevised 1968 and 
photoinspected 1973), 7.5 minute quadrangle;
    (6) ``Cotati, Calif.'', 1954 (photorevised 1968 and 1973), 7.5 
minute quadrangle;
    (7) ``Santa Rosa, Calif.'', 1954 (photorevised 1968 and 1973), 7.5 
minute quadrangle;
    (8) ``Kenwood, Calif.'', 1954 (photorevised 1968 and photoinspected 
1973), 7.5 minute quadrangle; and
    (9) Appropriate Sonoma County tax assessor's maps showing the Sonoma 
County-Napa County line.
    (c) Boundaries. The Sonoma Valley viticultural area is located 
within Sonoma County, California. From the beginning point at the 
junction of Tolay Creek and San Pablo Bay, the boundary runs:
    (1) Northerly along Tolay Creek to Highway 37;
    (2) Westerly along Highway 37 to its junction with Highway 121;
    (3) Northwesterly in a straight line to the peak of Wildcat 
Mountain;
    (4) Northwesterly in a straight line to Sonoma Mountain to the 
horizontal control station at elevation 2,271 feet;
    (5) Northwesterly in a straight line to the peak of Taylor Mountain;
    (6) Northeasterly in a straight line to the point at which Los 
Alamos Road joins Highway 12;
    (7) Easterly in a straight line to the peak of Buzzard Peak;
    (8) Easterly in a straight line to the peak of Mount Hood;
    (9) Easterly in a straight line to an unnamed peak located on the 
Sonoma County-Napa County line and identified as having an elevation of 
2,530 feet (This unnamed peak is located in the northeast quarter of 
Section 9, Township 7 North, Range 6 West, Mt. Diablo Base and 
Meridian);
    (10) Southerly along the Sonoma County-Napa County line to the point 
at which Sonoma Creek enters San Pablo Bay; and

[[Page 117]]

    (11) Southwesterly along the shore of San Pablo Bay to the beginning 
point.

[T.D. ATF-96, 46 FR 59238, Dec. 4, 1981, as amended by T.D. ATF-201, 50 
FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5956, Feb. 27, 1987]



Sec.  9.30  North Coast.

    (a) Name. The name of the viticultural area described in this 
section is ``North Coast.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the North Coast viticultural area are three U.S.G.S. maps. 
They are entitled:
    (1) ``San Francisco, Cal.'', scaled 1:250,000, edition of 1956, 
revised 1980;
    (2) ``Santa Rosa, Cal.'', scaled 1:250,000, edition of 1958, revised 
1970; and
    (3) ``Ukiah, Cal.'', scaled 1:250,000, edition of 1957, revised 
1971.
    (c) Boundaries. The North Coast viticultural area is located in 
Lake, Marin, Mendocino, Napa, Solano, and Sonoma Counties, California. 
The beginning point is found on the ``Santa Rosa, California'' U.S.G.S. 
map at the point where the Sonoma and Marin County boundary joins the 
Pacific Ocean.
    (1) Then east and southeast following the boundary between Marin and 
Sonoma Counties to the point where Estero Americano/Americano Creek 
crosses State Highway 1 east of Valley Ford;
    (2) Then southeast in a straight line for approximately 22.0 miles 
to the peak of Barnabe Mountain (elevation 1466 feet);
    (3) Then southeast in a straight line for approximately 10.0 miles 
to the peak of Mount Tamalpais (western peak, elevation 2604 feet);
    (4) Then northeast in a straight line for approximately 5.8 miles to 
the confluence of San Rafael Creek and San Rafael Bay in San Rafael;
    (5) Then north and northeast following San Rafael Bay and San Pablo 
Bay to Sonoma Creek;
    (6) Then north following Sonoma Creek to the boundary between Napa 
and Solano Counties;
    (7) Then east and north following the boundary between Napa and 
Solano Counties to the right-of-way of the Southern Pacific Railroad in 
Jameson Canyon;
    (8) Then east following the right-of-way of the Southern Pacific 
Railroad to the junction with the Southern Pacific in Suisun City;
    (9) Then north in a straight line for approximately 5.5 miles to the 
extreme southeastern corner of Napa County;
    (10) Then north following the boundary between Napa and Solano 
Counties to the Monticello Dam at the eastern end of Lake Berryessa;
    (11) Then following the south and west shore of Lake Berryessa to 
Putah Creek;
    (12) Then northwest following Putah Creek to the boundary between 
Napa and Lake Counties;
    (13) Then northwest in a straight line for approximately 11.4 miles 
to the peak of Brushy Sky High Mountain (elevation 3196 feet);
    (14) Then northwest in a straight line for approximately 5.0 miles 
to Bally Peak (elevation 2288 feet);
    (15) Then northwest in a straight line for approximately 6.6 miles 
to the peak of Round Mountain;
    (16) Then northwest in a straight line for approximately 5.5 miles 
to Evans Peak;
    (17) Then northwest in a straight line for approximately 5.0 miles 
to Pinnacle Rock Lookout;
    (18) Then northwest in a straight line for approximately 8.0 miles 
to Youngs Peak (elevation 3683 feet);
    (19) Then northwest in a straight line for approximately 11.2 miles 
to the peak of Pine Mountain (elevation 4057 feet);
    (20) Then northwest in a straight line for approximately 12.1 miles 
to the peak of Sanhedrin Mountain (elevation 6175 feet);
    (21) Then northwest in a straight line for approximately 9.4 miles 
to the peak of Brushy Mountain (elevation 4864 feet);
    (22) Then southwest in a straight line for approximately 17.6 miles 
to the confluence of Redwood Creek and the Noyo River;
    (23) Then west following the Noyo River to its mouth at the Pacific 
Ocean;

[[Page 118]]

    (24) Then southeast following the Pacific Ocean shoreline to the 
point of beginning.

[T.D. ATF-145, 48 FR 42977, Sept. 21, 1983]



Sec.  9.31  Santa Cruz Mountains.

    (a) Name. The name of the viticultural area described in this 
section is ``Santa Cruz Mountains.''
    (b) Approved maps. The 24 approved U.S.G.S. maps for determining the 
boundaries are 23 7.5 minute scale and one 5 x 11 minute scale.
    (1) ``Ano Nuevo Quadrangle, California'';
    (2) ``Big Basin Quadrangle, California'';
    (3) ``Castle Rock Ridge Quadrangle, California'';
    (4) ``Cupertino Quadrangle, California'';
    (5) ``Davenport Quadrangle, California--Santa Cruz County'';
    (6) ``Felton Quadrangle, California--Santa Cruz County'';
    (7) ``Franklin Point Quadrangle, California'';
    (8) ``Half Moon Bay Quadrangle, California--San Mateo County'';
    (9) ``La Honda Quadrangle, California--San Mateo County'';
    (10) ``Laurel Quadrangle, California'';
    (11) ``Loma Prieta Quadrangle, California'';
    (12) ``Los Gatos Quadrangle, California'';
    (13) ``Mt. Madonna Quadrangle, California'';
    (14) ``Mindego Hill Quadrangle, California'';
    (15) ``Morgan Hill Quadrangle, California--Santa Clara County'';
    (16) ``Palo Alto Quadrangle, California'';
    (17) ``San Gregorio Quadrangle, California--San Mateo County'';
    (18) ``San Mateo Quadrangle, California--San Mateo County'';
    (19) ``Santa Teresa Hills Quadrangle--Santa Clara County'';
    (20) ``Soquel Quadrangle, California--Santa Cruz County'';
    (21) ``Watsonville East Quadrangle, California'';
    (22) ``Watsonville West Quadrangle, California'';
    (23) ``Woodside Quadrangle, California--San Mateo County''; and
    (24) One 5 x 11 minute series map entitled: ``Santa Cruz, 
California.''
    (c) Boundaries. The Santa Cruz Mountains viticultural area is 
located in portions of San Mateo, Santa Clara, and Santa Cruz Counties, 
California.
    (1) From the beginning point where Highway 92 and the 400-foot 
contour line intersect (Half Moon Bay Quadrangle), the boundary line 
follows Highway 92, beginning in a southeasterly direction, to a point 
where Highway 92 and the 400-foot contour line intersect (San Mateo 
Quadrangle);
    (2) Thence along the 400-foot contour line, beginning in a 
southeasterly direction, to a point where the 400-foot contour line and 
Canada Road intersect (Woodside Quadrangle);
    (3) Thence along Canada Road, beginning in a southerly direction, to 
a point where Canada Road and Highway 280 intersect (Woodside 
Quadrangle);
    (4) Thence along Highway 280, beginning in a southeasterly 
direction, to a point where Highway 280 and 84 intersect (Palo Alto 
Quadrangle);
    (5) Thence along Highway 84, beginning in a southwesterly direction, 
to a point where Highway 84 and Mountain Home Road intersect (Woodside 
Quadrangle);
    (6) Thence along Mountain Home Road, beginning in a southerly 
direction, to a point where Mountain Home Road and Portola Road 
intersect (Palo Alto Quadrangle);
    (7) Thence along Portola Road, beginning in a westerly direction, to 
a point where Portola Road and Highway 84 intersect (Woodside 
Quadrangle);
    (8) Thence along Highway 84, beginning in a southwesterly direction, 
to a point where Highway 84 and the 600-foot contour line intersect 
(Woodside Quadrangle);
    (9) Thence along the 600-foot contour line, beginning in a 
northeasterly direction, to a point where the 600-foot contour line and 
Regnart Road intersect (Cupertino Quadrangle);
    (10) Thence along Regnart Road, beginning in a northeasterly 
direction, to a point where Regnart Road and the 400-foot contour line 
intersect (Cupertino Quadrangle);
    (11) Thence along the 400-foot contour line, beginning in a 
southerly direction, to a point where the 400-foot

[[Page 119]]

contour line and the north section line of Section 35, T. 6 S./R. 2 W, 
intersect (Cupertino Quadrangle);
    (12) Thence along the north section line of Sections 35 and 36, in 
an easterly direction, to a point where the section line and Highway 85 
intersect (Cupertino Quadrangle);
    (13) Thence along Highway 85, in a southerly direction, to a point 
where Highway 85 and the southern section line of Section 36 intersect 
(Cupertino Quadrangle);
    (14) Thence along the section line, in a westerly direction, to a 
point where the section line and the 600-foot contour line intersect 
(Cupertino Quadrangle);
    (15) Thence along the 600-foot contour line, beginning in a 
southerly direction, to a point where the 600-foot contour line and 
Pierce Road intersect (Cupertino Quadrangle);
    (16) Thence along Pierce Road, in a southerly direction, to a point 
where Pierce Road and the 800-foot contour line intersect (Cupertino 
Quadrangle);
    (17) Thence along the 800-foot line, beginning in a northwesterly 
direction, to a point where the 800-foot contour line and the east 
section line of Section 25, T. 10 S./R. 2 E., intersect (Mt. Madonna 
Quadrangle);
    (18) Thence along the east section line, in a southerly direction, 
to a point where this section line and the 800-foot contour line 
intersect (Mt. Madonna Quadrangle);
    (19) Thence along the 800-foot contour line, beginning in a 
southeasterly direction, to a point where the 800-foot contour line and 
Highway 152 intersect (Watsonville East Quadrangle);
    (20) Thence along Highway 152, in a southwesterly direction, to a 
point where Highway 152 and the 400-foot contour line intersect 
(Watsonville East Quadrangle);
    (21) Thence along the 400-foot contour line, beginning in a 
northwesterly direction, to a point where the 400-foot contour line and 
the Felton Empire Road intersect (Felton Quadrangle);
    (22) Thence along Felton Empire Road, in an easterly direction, to a 
point where Felton Empire Road and Highway 9 intersect (Felton 
Quadrangle);
    (23) Thence along Highway 9, in a southerly direction, to a point 
where Highway 9 and Bull Creek intersect (Felton Quadrangle);
    (24) Thence along Bull Creek, beginning in a southwesterly 
direction, to a point where Bull Creek and the 400-foot contour line 
intersect (Felton Quadrangle); and
    (25) Thence along the 400-foot contour line, beginning in a 
southeasterly direction, back to the point of beginning.

[T.D. ATF-98, 46 FR 59240, Dec. 4, 1981]



Sec.  9.32  Los Carneros.

    (a) Name. The name of the viticultural area described in this 
section is ``Los Carneros''. ``Carneros'' may also be used as the name 
of the viticultural area described in this section. For purposes of part 
4 of this chapter, ``Los Carneros'' and ``Carneros'' are terms of 
viticultural significance.
    (b) Approved maps. The approved maps for the Carneros viticultural 
area are the following U.S.G.S. maps:
    (1) ``Sonoma Quadrangle, California,'' 7.5 minute series 
(topographic), 1951 (photorevised 1968).
    (2) ``Napa Quadrangle, California--Napa Co.,'' 7.5 minute series 
(topographic), 1951 (photorevised 1968 and 1973).
    (3) ``Cuttings Wharf Quadrangle, California,'' 7.5 minute series 
(topographic), 1949 (photorevised 1968; photoinspected 1973).
    (4) ``Sears Point Quadrangle, California,'' 7.5 minute series 
(topographic), 1951 (photorevised 1968).
    (5) ``Petaluma River Quadrangle,California--Sonoma Co.,'' 7.5 minute 
series (topographic), 1954 (photorevised 1980).
    (6) ``Glen Ellen Quadrangle, California--Sonoma Co.,'' 7.5 minute 
series (topographic), 1954 (photorevised 1980).
    (c) Boundaries. The boundaries of the Carneros viticultural area are 
located in Napa and Sonoma Counties, California, and are as follows:
    (1) The point of beginning is the intersection of highway 12/121 and 
the Napa County-Sonoma County line, near the extreme southeast corner of 
the Sonoma Quadrangle map.

[[Page 120]]

    (2) From there, following the Napa County-Sonoma County line 
generally northwestward for about 1.6 miles to the summit of an unnamed 
hill with a marked elevation of 685 ft.
    (3) From there in a straight line northeastward to the summit of 
Milliken Peak (743 ft.), located on the Napa Quadrangle map.
    (4) From there due eastward to the 400 ft. contour line.
    (5) Then following that contour line generally northwestward to 
Carneros Creek (on the Sonoma Quadrangle map).
    (6) Then following the same contour line generally southeastward to 
the range line R. 5 W/R. 4 W (on the Napa Quadrangle map).
    (7) Then continuing to follow the same contour line generally 
northward for about one mile, till reaching a point due west of the 
summit of an unnamed hill having a marked elevation of 446 ft. (That 
hill is about .8 mile southwest of Browns Valley School.)
    (8) From that point due eastward to the summit of that hill.
    (9) From there in a straight line northeastward across Buhman Avenue 
to the summit of an unnamed hill having a marked elevation of 343 ft.
    (10) From there due eastward to the Napa-Entre Napa land grant 
boundary.
    (11) Then northeastward along that land grant boundary to Browns 
Valley Road.
    (12) Then eastward along Browns Valley Road to Highway 29.
    (13) Then southward along Highway 29 to Imola Avenue.
    (14) Then eastward along Imola Avenue to the Napa River.
    (15) Then generally southward along the west bank of the Napa River 
to the Southern Pacific Railroad tracks.
    (16) Then generally westward and northwestward along the Southern 
Pacific Railroad tracks to their intersection with the township line T. 
5 N./T. 4 N. (on the Sears Point Quadrangle map).
    (17) From there due westward to the Northwestern Pacific Railroad 
tracks.
    (18) Then generally southward along the Northwestern Pacific 
Railroad tracks to Highway 37.
    (19) The westward along Highway 37 to its intersection with Highway 
121.
    (20) From there northwestward in a straight line to the summit of 
Wildcat Mountain (682 ft.).
    (21) From there northwestward, following a straight line toward the 
summit of Sonoma Mountain (2295 ft.--on the Glenn Ellen Quadrangle map) 
till reaching a point due west of the intersection of Lewis Creek with 
the 400-ft. contour line. (That point is about 4\1/3\ miles southeast of 
Sonoma Mountain.)
    (22) From that point due eastward to Lewis Creek.
    (23) Then generally southeastward along Lewis Creek to Felder Creek.
    (24) Then generally eastward along Felder Creek to Leveroni Road (on 
the Sonoma Quadrangle map).
    (25) Then generally eastward along Leveroni Road to Napa Road.
    (26) Then eastward and southeastward along Napa Road to Highway 12/
121.
    (27) Then eastward along Highway 12/121 to the starting point.

[T.D. ATF-142, 48 FR 37368, Aug. 18, 1983, as amended by T.D. ATF-249, 
52 FR 5956, Feb. 27, 1987;T.D. TTB-55, 71 FR 66455, Nov. 15, 2006]



Sec.  9.33  Fennville.

    (a) Name. The name of the viticultural area described in this 
section is ``Fennville.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Fennville Viticultural Area are three U.S.G.S. maps. 
They are entitled:
    (1) ``Fennville Quadrangle, Michigan-Allegan County,'' 15 minute 
series;
    (2) ``Bangor Quadrangle, Michigan,'' 15 minute series; and
    (3) ``South Haven Quadrangle, Michigan,'' 15 minute series.
    (c) Boundaries. The Fennville viticultural area is primarily located 
in the southwestern portion of Allegan County, Michigan, with a small 
finger extending into the northwest corner of Van Buren County, 
Michigan.
    (1) The western boundary is the eastern shore of Lake Michigan, 
extending from the Black River, at the City of South Haven, north to the 
Kalamazoo River.
    (2) The northern boundary is the Kalamazoo River, extending easterly

[[Page 121]]

from Lake Michigan to 86[deg]5[min] west longitude.
    (3) The eastern boundary is the 86[deg]5[min] west longitude 
meridian, extending from the Kalamazoo River to the intersection of the 
Middle Fork of the Black River.
    (4) The southern boundary is the Middle Fork of the Black River 
extending westerly from 86[deg]5[min] west longitude until it joins the 
Black River, continuing west along the Black River to the eastern shore 
of Lake Michigan.

[T.D. ATF-91, 46 FR 46320, Sept. 18, 1981]



Sec.  9.34  Finger Lakes.

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

[T.D. ATF-113, 47 FR 38518, Sept. 1, 1982, as amended by T.D. ATF-249, 
52 FR 5956, Feb. 27, 1987]



Sec.  9.35  Edna Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Edna Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Edna Valley viticultural area for four U.S.G.S. maps, 
They are titled:
    (1) ``San Luis Obispo Quadrangle, California--San Luis Obispo Co.,'' 
7.5 minute series;
    (2) ``Lopez Mtn, Quadrangle, California--San Luis Obispo Co.,'' 7.5 
minute series;
    (3) ``Pismo Beach Quadrangle, California--San Luis Obispo Co.,'' 7.5 
minute series; and
    (4) ``Arroyo Grande NE Quadrangle, California--San Luis Obispo 
Co.'', 7.5 minute series.
    (c) Boundaries. The Edna Valley viticultural area is located in San 
Luis Obispo County, California. The beginning point is Cuesta Canyon 
County Park, located on U.S.G.S. map ``San Luis Obispo Quadrangle'' at 
the north end of Section 25, Township 30 South, Range 12 East.
    (1) From the beginning point, the boundary runs southwesterly along 
San

[[Page 122]]

Luis Obispo Creek to a point .7 mile southerly of the confluence with 
Davenport Creek;
    (2) Thence due east to the intersection with the 400-foot contour 
line of the northeastern flank of the San Luis Range;
    (3) Thence in a generally easterly and then a southeasterly 
direction along this 400-foot contour line of the northeastern flank of 
the San Luis Range, which forms the southwestern rim of Edna Valley, to 
the township line identified as ``T31S/T32S'' on the U.S.G.S. map;
    (4) Thence east along township line ``T31S/T32S'', across Price 
Canyon to Tiber;
    (5) Thence in a generally easterly direction along the 400-foot 
contour line of Tiber Canyon and the southern rim of Canada Verde, 
crossing Corbit Canyon Road and continuing along the 400-foot contour 
line to longitude line 120[deg]32[min]30[sec];
    (6) Thence north along longitude line 120[deg]32[min]30[sec] to the 
600-foot contour line of the southwestern flank of the Santa Lucia 
Mountain Range;
    (7) Thence in a generally northwesterly direction along the 600-foot 
contour line of the southwestern flank of the Santa Lucia Range to 
Cuesta Canyon County Park, the beginning point.

[T.D. ATF-101, 47 FR 20299, May 12, 1982, as amended by T.D. ATF-249, 52 
FR 5956, Feb. 27, 1987]



Sec.  9.36  McDowell Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``McDowell Valley.''
    (b) Approved maps. The appropriate map for determining the 
boundaries of the McDowell Valley viticultural area is a USGS map. That 
map is titled: ``Hopland Quadrangle California'' 7.5 minute series.
    (c) Boundaries. (1) Beginning at the northwest corner of Section 22 
T13N R11W.
    (2) Then southerly along the section line between Sections 22 and 21 
approximately 1700 feet to the intersection of the section line and the 
ridge line (highest elevation line) between the McDowell Creek Valley 
and the Dooley Creek Valley.
    (3) Then southeasterly along the ridge line (highest elevation line) 
to the intersection of the ridge line and the 1000-foot contour line in 
Section 27.
    (4) Then southeasterly and on the McDowell Creek Valley side of the 
ridge along the 1000-foot contour line to the intersection of the 1000-
foot contour line and the south section line of Section 27.
    (5) Then easterly along the section line between Sections 27 and 34 
and between Sections 26 and 35 to the intersection of the section line 
and the centerline of Younce Road.
    (6) Then southeasterly and then northeasterly along Younce Road to 
the intersection of Younce Road and the section line between Sections 26 
and 35.
    (7) Then due north from the section line, across Coleman Creek 
approximately 1250 feet, to the 1000-foot contour line.
    (8) Then westerly and then meandering generally to the north and 
east along the 1000-foot contour line to the intersection of the 1000-
foot contour line and section line between Sections 26 and 25.
    (9) Then continuing along the 1000-foot countour line easterly and 
then northwesterly in Section 25 to the intersection of the 1000-foot 
contour line and the section line between Sections 26 and 25.
    (10) Then northerly along the 1000-foot contour line to the 
intersection of the 1000-foot contour line and the section line between 
Sections 23 and 24.
    (11) Then northerly along the section line across State Highway 175 
approximately 1000 feet to the intersection of the section line and the 
1000-foot contour line.
    (12) Then generally to the northwest along the 1000-foot contour 
line through Sections 23 and 14 and into Section 15 to the intersection 
of the 1000-foot contour line and the flowline of an unnamed creek near 
the northeast corner of Section 15.
    (13) Then southwesterly and down stream along the flowline of said 
unnamed creek and across Section 15, to the stream's intersection with 
the section line between Sections 15 and 16.

[[Page 123]]

    (14) Then southerly along the section approximately 100 feet to the 
northwest corner of Section 22 and to the point of beginning.

[T.D. ATF-97, 46 FR 59243, Dec. 4, 1981, as amended by T.D. ATF-249, 52 
FR 5956, Feb. 27, 1987]



Sec.  9.37  California Shenandoah Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Shenandoah Valley'' qualified by the word ``California'' in 
direct conjunction with the name ``Shenandoah Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the California Shenandoah Valley viticultural area are two 
1962 U.S.G.S. maps. The maps are titled: ``Fiddletown Quadrangle 
California'' 7.5 minute series and ``Amador City Quadrangle California-
Amador Co.'' 7.5 minute series.
    (c) Boundaries. The Shenandoah Valley viticultural Area is located 
in portions of Amador and El Dorado Counties of California. The 
boundaries are as follows:
    (1) Beginning at the point where the Consumnes River meets Big 
Indian Creek.
    (2) Then south, following Big Indian Creek, until Big Indian Creek 
meets the boundary between Sections 1 and 2 of Township 7 North Range 10 
East.
    (3) Then following this boundary south until it meets the Oleta 
(Fiddletown) Road.
    (4) Then following the Oleta Road east until it meets the boundary 
between Sections 6 and 5 of Township 7 North Range 11 East.
    (5) Then following that boundary north into Township 8 North Range 
11 East, and continues north on the boundary between Sections 31 and 32 
until this boundary meets Big Indian Creek.
    (6) Then following Big Indian Creek in a northeasterly direction 
until Big Indian Creek meets the boundary between Sections 28 and 27 of 
Township 8 North Range 11 East.
    (7) Then following this boundary north until it reaches the 
southeast corner of Section 21 of Township 8 North Range 11 East.
    (8) The boundary then proceeds east, then north, then west along the 
boundary of the western half of Section 22 of Township 8 North Range 11 
East to the intersection of Sections 16, 15, 21, and 22.
    (9) Then proceeding north along the boundary line between Sections 
16 and 15 of Township 8 North Range 11 East and continues north along 
the boundary of Sections 9 and 10 of Township 8 North Range 11 East to 
the intersection of Sections 9, 10, 3, and 4 of Township 8 North Range 
11 East.
    (10) Then proceeding west along the boundary of Sections 9 and 4.
    (11) Then continuing west along the boundary of Sections 5 and 8 of 
Township 8 North Range 11 East to the Consumnes River.
    (12) Then the boundary proceeds west along the Consumnes River to 
the point of the beginning.

[T.D. ATF-121, 47 FR 57696, Dec. 28, 1982, as amended by T.D. ATF-249, 
52 FR 5957, Feb. 27, 1987]



Sec.  9.38  Cienega Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Cienega Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Cienega Valley viticultural area are four U.S.G.S. 
maps. They are titled:
    (1) ``Hollister Quadrangle, California,'' 7.5 minute series (1971);
    (2) ``Tres Pinos Quadrangle, California,'' 7.5 minute series (1971);
    (3) ``Mt. Harlan Quadrangle, California,'' 7.5 minute series (1968); 
and
    (4) ``Paicines Quadrangle, California,'' 7.5 minute series (1968).
    (c) Boundaries. The Cienega Valley viticultural area is located in 
San Benito County, California. The beginning point is the Gaging 
Station, located on U.S.G.S. map ``Paicines Quadrangle'' in the 
southeast portion of Section 21, Township 14 South, Range 6 East.
    (1) From the beginning point, the boundary follows the Pescadero 
Creek Bed in a southeasterly direction about 100 feet to the unimproved 
road and continues southwesterly on the unimproved road .5 mile to where 
it intersects with the south border of Township 14 South, Range 6 East, 
Section 21;

[[Page 124]]

    (2) Thence in a straight line to the southwest portion of Section 
28, Township 14 South, Range 6 East, where the 1400-foot contour line 
intersects the south border of Section 28;
    (3) Thence following the 1400-foot contour line through the 
following sections; Sections 28, 29, and 30, Township 14 South, Range 6 
East; Section 25, Township 14 South, Range 5 East; Sections 30, 19, 20, 
and returning to 19, Township 14 South, Range 6 East, to a point where 
the 1400-foot contour line intersects with the section line between 
Sections 19 and 18, Township 14 South, Range 6 East;
    (4) Thence in a straight line due north to the intersection with the 
1200-foot contour line in Section 18, Township 14 South, Range 6 East;
    (5) Thence following the 1200-foot contour line in a generally 
northwesterly direction to where it intersects with the north boundary 
of Township 14 South, Range 5 East, Section 10; then following this 
boundary line in a northwesterly direction to where this boundary 
intersects with the 1600-foot contour line; thence following the 1600-
foot contour line in a generally northerly direction to where it 
intersects with the unimproved road;
    (6) Thence looping southward along the unimproved road and 
continuing on in an easterly direction past the designated ``Spring'' 
and then in a northeasterly direction parallel with the Gulch to the 
Vineyard School on Cienega Road; thence in a southeasterly direction on 
Cienega Road .4 mile to where the unimproved road intersects; thence 
traveling north and following the unimproved road in a northwesterly 
direction about 5. mile; then looping in an easterly direction .75 mile 
to the intersection of the unimproved road and branching in a 
southeasterly direction;
    (7) Thence crossing Township 13 South to Township 14 South and 
following the unimproved road to the intersection of the western border 
of Township 14 South, Range 6 East, Section 6; thence south to the 
northwest corner of Section 7;
    (8) Thence continuing in a straight diagonal line to the southeast 
corner of Township 14 South, Range 6 East, Section 7; thence from the 
southeast corner of Section 7 .25 mile west to where it intersects with 
an unimproved road;
    (9) Thence following this unimproved road in a southeasterly 
direction to the Gaging Station, the point of beginning.

[T.D. ATF-109, 47 FR 36126, Aug. 19, 1982]



Sec.  9.39  Paicines.

    (a) Name. The name of the viticultural area described in this 
section is ``Paicines.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Paicines viticultural area are the three U.S.G.S. 
maps. They are titled:
    (1) ``Tres Pinos Quadrangle, California,'' 7.5 minute series (1971);
    (2) ``Paicines Quadrangle, California,'' 7.5 minute series (1968); 
and
    (3) ``Cherry Peak Quadrangle, California,'' 7.5 minute series 
(1968).
    (c) Boundaries. The Paicines viticultural area is located in San 
Benito County, California. The beginning point is the northwestern-most 
point of the proposed area at Township 14 South, Range 6 East, Section 
3, northwest corner, located on U.S.G.S. map ``Tres Pinos Quadrangle.''
    (1) From the beginning point the boundary runs east along the north 
border of Sections 3, 2, and 1, Township 14 South, Range 6 East;
    (2) Thence south along the east border of Section 1, Township 14 
South, Range 6 East; thence east along the north border of Section 7, 
Township 14 South, Range 7 East; thence south along the east border of 
Section 7, Township 14 South, Range 7 East;
    (3) Thence continuing south along the east border of Section 18, 
Township 14 South, Range 7 East; thence east along the north border of 
Section 20, Township 14 South, Range 7 East; thence south along the east 
border of Sections 20, 29 and 32, Township 14 South, Range 7 East;
    (4) Thence continuing south along the east border of Section 5, 
Township 15 South, Range 7 East; thence south along the east border of 
Sections 8 and 17, Township 15 South, Range 7 East to latitude line 
36[deg]37[min]30[sec];
    (5) Thence west along latitude line 36[deg]37[min]30[sec] to the 
west border of Section 18, Township 15 South, Range 7 East;
    (6) Thence north along the west border of Sections 18 and 7, 
Township 15

[[Page 125]]

South, Range 7 East; thence west along the south border of Section 1, 
Township 15 South, Range 6 East; thence north along the west border of 
Section 1, Township 15 South, Range 6 East to the 800-foot elevation 
contour line and then in a generally northwest direction along this 800-
foot contour line to where it intersects with the south border of 
Section 35, Township 14 South, Range 6 East;
    (7) Thence west along the south border of Section 35, Township 14 
South, Range 6 East; thence north along the east border of Section 34, 
Township 14 South, Range 6 East; thence in a northwest direction along 
the northeast border of Section 34, Township 14 South, Range 6 East; 
thence continuing in a northwest direction along the east border of 
Section 27, Township 14 South, Range 6 East;
    (8) Thence continuing in a northwest direction to the northeast 
border of Section 22, Township 14 South, Range 6 East to where an 
unnamed, unimproved dirt road intersects the northeast border; thence 
east and then northwest along the unimproved dirt road to the 
intersection with the San Benito River; thence following the San Benito 
River and meandering north to the intersection with the east border of 
Section 4, Township 14 South, Range 6 East;
    (9) Thence continuing north along the east border of Section 4, 
Township 14 South, Range 6 East to the point of beginning.

[T.D. ATF-108, 47 FR 35481, Aug. 16, 1982]



Sec.  9.40  Leelanau Peninsula.

    (a) Name. The name of the viticultural area described in this 
section is ``Leelanau Peninsula.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Leelanau Peninsula viticultural area are four U.S.G.S. 
maps. They are entitled:
    (1) ``Empire Quadrangle, Michigan,'' 15 minute series;
    (2) ``Maple City Quadrangle, Michigan,'' 15 minute series;
    (3) ``Traverse City Quadrangle, Michigan,'' 15 minute series; and
    (4) ``Northport Quadrangle, Michigan,'' 15 minute series.
    (c) Boundaries. The Leelanau Peninsula viticultural area encompasses 
all of Leelanau County, Michigan, excluding the offshore islands.

[T.D. ATF-99, 47 FR 13329, Mar. 30, 1982]



Sec.  9.41  Lancaster Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Lancaster Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Lancaster Valley viticultural area are two U.S.G.S. 
maps. They are entitled:
    (1) ``Lancaster County, Pennsylvania'', scaled 1:50,000, edition of 
1977; and
    (2) ``Honey Brook Quadrangle'', 7.5 minute series, edition of 1955, 
photorevised 1969 and 1974.
    (c) Boundaries. The Lancaster Valley viticultural area is located in 
Lancaster County and Chester County, Pennsylvania. The beginning point 
is where Pennsylvania Highway 23 crosses the Lancaster and Berks County 
boundary.
    (1) Then in a southeasterly direction following the Lancaster County 
boundary for approximately 0.9 mile to the 500 foot contour line 
immediately south of the Conestoga River.
    (2) Then following the 500 foot contour in a southwesterly direction 
to the Caernarvon-East Earl Township boundary.
    (3) Then south approximately 0.1 mile following the Caernarvon-East 
Earl Township boundary to U.S. Highway 322.
    (4) Then west following U.S. Highway 322 for approximately 1.7 miles 
to the electric transmission line between Fetterville and Cedar Grove 
School.
    (5) Then southwest in a straight line for approximately 5.2 miles to 
the intersection of Earl, Upper Leacock, and Leacock Townships at the 
Mill Creek.
    (6) Then southeast following the boundary between Earl Township and 
Leacock Township to the point where Earl, East Earl, Salisbury, and 
Leacock Townships intersect.
    (7) Then east in a straight line for approximately 4.8 miles to the 
point where the 500 foot contour line intersects Pequea Creek northwest 
of Mt. Pleasant School.

[[Page 126]]

    (8) Then following the 500 foot contour line past Cole Hill through 
the town of Gap and along Mine Ridge to the 76[deg]07[min]30[sec] west 
longitude line in Paradise Township.
    (9) Then southwest in a straight line for approximately 7.7 miles to 
the Boehm Church south of Willow Street.
    (10) The northwest in a straight line for approximately 1.2 miles to 
the township school in West Willow.
    (11) Then west in a straight line for 4.2 miles to the confluence of 
Stehman Run and the Conestoga River.
    (12) Then northwest in a straight line for approximately 0.5 mile to 
the confluence of Indian Run and Little Conestoga Creek.
    (13) Then west following Indian Run for approximately 3.6 miles to 
the source of the more northerly branch.
    (14) Then northwest in a straight line for approximately 0.25 mile 
to the source of Wisslers Run.
    (15) Then west following Wisslers Run downstream for approximately 
0.7 mile to the 300 foot contour line.
    (16) Then north following the 300 foot contour line to its 
intersection with Pennsylvania Highway 999 in Washington Boro.
    (17) Then east following Pennsylvania Highway 999 to the school in 
Central Manor.
    (18) Then northeast in a straight line for approximately 2.7 miles 
to the point where the West Branch of the Little Conestoga Creek 
intersects with Pennsylvania Highway 462.
    (19) Then west following Pennsylvania Highway 462 for approximately 
1.5 miles to Strickler Run.
    (20) Then following Strickler Run southwest to the Columbia 
municipal boundary.
    (21) Then north following the eastern boundary of Columbia to 
Shawnee Run.
    (22) Then northeast in a straight line for approximately 5.8 miles 
to the intersection of Pennsylvania Highway 23 and Running Pump Road 
[unnamed on map] at elevation check point 436 near Centerville.
    (23) Then east following Pennsylvania Highway 23 for approximately 
0.5 mile to the 400 foot contour line.
    (24) Then following the 400 foot contour line north around Chestnut 
Ridge, past Millers Run and continuing until the 400 foot contour line 
intersects an unnamed stream.
    (25) Then due south in a straight line for approximately 0.8 mile to 
Pennsylvania Highway 23.
    (26) Then west following Pennsylvania Highway 23 to the intersection 
with Pennsylvania Highway 441 at Marietta.
    (27) Then west following Pennsylvania Highway 441 to Pennsylvania 
Highway 241 near Bainbridge.
    (28) Then northwest in a straight line for approximately 5.5 miles 
to the point where the Consolidated Railroad Corporation crosses the 
West Donegal-Mount Joy Township boundary in Rheems.
    (29) Then east in a straight line for approximately 3.3 miles to the 
Mt. Pleasant Church.
    (30) Then east in a straight line for approximately 3.8 miles to the 
Erismans Church.
    (31) Then east in a straight line for approximately 3.3 miles to the 
point where the 400 foot contour line crosses Pennsylvania Highway 72 
south of Valley View.
    (32) Then following the 400 foot contour line east to Pennsylvania 
Highway 501.
    (33) Then east in a straight line for approximately 2.9 miles to the 
Union Meetinghouse.
    (34) Then southeast in a straight line for approximately 1.0 miles 
to the point where Pennsylvania Highway 272 (indicated as U.S. Highway 
222 on the map) crosses Cocalico Creek (which forms the boundary between 
West Earl and Warwick Townships).
    (35) Then northwest following the West Earl Township boundary to its 
intersection with U.S. Highway 322 southeast of Ephrata.
    (36) Then east in a straight line for approximately 3.4 miles to the 
Lincoln Independence School.
    (37) Then southeast in a straight line for approximately 1.7 miles 
to the West Terre Hill School.
    (38) Then east in a straight line for approximately 8.5 miles to the 
beginning point.

[T.D. ATF-102, 47 FR 20301, May 12, 1982]

[[Page 127]]



Sec.  9.42  Cole Ranch.

    (a) Name. The name of the viticultural area described in this 
section is ``Cole Ranch.''
    (b) Approved map. The approved map for the Cole Ranch viticultural 
area is the U.S.G.S. map entitled ``Elledge Peak Quadrangle California--
Mendocino County,'' 7.5 minute series (topographic), 1958.
    (c) Boundaries. The boundaries of the Cole Ranch viticultural area 
are located in Mendocino County California and are as follows:
    (1) The point of beginning is the intersection of the 1480-foot-
elevation contour line with the Boonville-Ukiah Cutoff Road near the 
southest coner of section 13;
    (2) The Boundary follows the 1480-foot-elevation contour line 
southerly, then easterly, within section 24, then easterly and 
northwesterly within section 19 to its first intersection with this 
section line. The boundary proceeds due west on the north section line 
of section 19 until it intersects with the Boonville-Ukiah Cutoff Road;
    (3) The boundary follows this road northwesterly to the point of 
beginning.

[T.D. ATF-130, 48 FR 16248, Apr. 15, 1983]



Sec.  9.43  Rocky Knob.

    (a) Name. The name of the viticultural area described in this 
section is ``Rocky Knob.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Rocky Knob viticultural area are two 1968 U.S.G.S. 
maps. The maps are entitled: ``Willis Quadrangle Virginia'' 7.5 minute 
series and ``Woolwine Quadrangle Virginia'' 7.5 minute series.
    (c) Boundaries. The Rocky Knob viticultural area is located in Floyd 
and Patrick Counties in southern Virginia. The boundaries are as 
follows:
    (1) The beginning point is the intersection of Virginia State Route 
Nos. 776 and 779 at Connors Grove.
    (2) Then follow State Route No. 779 south and east to the Blue Ridge 
Parkway.
    (3) Then south on the parkway to its first intersection with State 
Route No. 758.
    (4) Then follow State Route No. 758 east to the intersection of 
State Route No. 726 at the southern boundary of the Rocky Knob 
Recreation Area.
    (5) Then follow the boundary of the Rocky Knob Recreation Area south 
then in a northeastern direction to where the boundary first intersects 
State Route No. 8.
    (6) Then from that point at State Route No. 8, proceed northeast in 
a straight line to State Route No. 719 and Widgeon Creek at a point 
about 0.7 of a mile west of the intersection of State Route Nos. 719 and 
710.
    (7) Then proceed northwest in a straight line to the intersection 
with State Route No. 710 and the Blue Ridge Parkway.
    (8) Then follow the Parkway southwest to the intersection with State 
Route No. 726.
    (9) Then turn right on State Route No. 726 and proceed 0.6 of a mile 
to a roadway at the 3308 elevation point on the map.
    (10) Then from that point, proceed west in a straight line back to 
the starting point at Connors Grove.

[T.D. ATF-124, 48 FR 1293, Jan. 12, 1983, as amended by T.D. ATF-249, 52 
FR 5957, Feb. 27, 1987]



Sec.  9.44  Solano County Green Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Green Valley'' qualified by the words ``Solano County'' in 
direct conjunction with the name ``Green Valley.'' On a label the words 
``Solano County'' may be reduced in type size to the minimum allowed in 
27 CFR 4.38(b).
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Green Valley viticultural area are two U.S.G.S. maps. 
They are titled:
    (1) ``Mt. George Quadrangle, California'', 7.5 minute series (1968); 
and
    (2) ``Cordelia Quadrangle, California'', 7.5 minute series (1968).
    (c) Boundaries. The Green Valley viticultural area is located in 
Solano County, California. The beginning point is the intersection of 
the township line identified as T6N/T5N with the westernmost point of 
the Solano County/Napa County line on the north border of Section 4, 
located on U.S.G.S. map ``Mt. George Quadrangle.''

[[Page 128]]

    (1) From the beginning point, the boundary runs in a southerly 
direction along the Napa/Solano County border to State Road 12;
    (2) Thence east along State Road 12 to where it intersects with 
Interstate 80;
    (3) Thence southwest on Interstate 80 to where it intersects with 
the Southern Pacific Railroad track;
    (4) Thence in an easterly direction along the Southern Pacific 
Railroad track to where it intersects with range line ``R3W/R2W'';
    (5) Thence due north on range line ``R3W/R2W'' to where it 
intersects with the Solano County/Napa County line;
    (6) Thence due west along the Solano County/Napa County line to the 
point of beginning.

[T.D. ATF-122, 47 FR 37922, Dec. 29, 1982]



Sec.  9.45  Suisun Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Suisun Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Suisun Valley viticultural area are four U.S.G.S. 
maps. They are titled:
    (1) ``Mt. George Quadrangle, California'', 7.5 minute series (1968);
    (2) ``Fairfield North Quadrangle, California'', 7.5 minute series 
(1973);
    (3) ``Fairfield South Quadrangle, California'', 7.5 minute series 
(1968); and
    (4) ``Cordelia Quadrangle, California'', 7.5 minute series (1968).
    (c) Boundaries. The Suisun Valley viticultural area is located in 
Solano County, California. The beginning point is the intersection of 
the Southern Pacific Railroad track with range line ``R3W/R2W'' in the 
town of Cordelia, located on U.S.G.S. map ``Cordelia Quadrangle.''
    (1) From the beginning point, the boundary runs northeast in a 
straight line to the intersection of Ledgewood Creek with township line 
``T5N/T4N'';
    (2) Thence in a straight line in a northeast direction to Bench Mark 
(BM) 19 located in the town of Fairfield;
    (3) Thence in a straight line due north to Soda Springs Creek;
    (4) Thence in a straight line in a northwest direction to the 
extreme southeast corner of Napa County located just south of Section 
34, Township 6 North, Range 2 West;
    (5) Thence due west along the Napa/Solano County border to where it 
intersects with range line ``R3W/R2W'';
    (6) Thence due south along range line ``R3W/R2W'' to the point of 
beginning.

[T.D. ATF-117, 47 FR 52997, Nov, 24, 1982]



Sec.  9.46  Livermore Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Livermore Valley.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Livermore Valley viticultural area are 13 United States 
Geological Survey 1:24,000 scale topographic maps. They are titled:
    (1) Clayton, CA (1953; Photorevised 1980; Minor Revision 1994);
    (2) Diablo, Calif. (1953; Photorevised 1980);
    (3) Tassajara, CA (1996);
    (4) Byron Hot Springs, Calif., (1953, Photorevised 1968);
    (5) Altamont, Calif., (1953, Photorevised 1981);
    (6) Midway, Calif., (1953, Photorevised 1980);
    (7) Cedar Mtn., CA, (1956, Photorevised 1971, Minor Revision 1994);
    (8) Mendenhall Springs, CA (1996);
    (9) La Costa Valley, CA (1996);
    (10) Niles, Calif., (1961, Photorevised 1980);
    (11) Dublin, Calif., (1961, Photorevised 1980);
    (12) Hayward, CA (1993); and
    (13) Las Trampas Ridge, CA (1995).
    (c) Boundary. The Livermore Valley viticultural area is located in 
the State of California in Contra Costa and Alameda Counties. The 
Livermore Valley viticultural area's boundary is defined as follows:
    (1) The beginning point is on the Clayton map at the peak of Mount 
Diablo (VABM 3849) where the Mount Diablo Base Line and Mount Diablo 
Meridian Line intersect, T1S, R1E;
    (2) From the beginning point proceed southeast in a straight line 
for approximately 14 miles, crossing the Diablo and Tassajara maps, and 
pass onto the Byron Hot Springs map to the summit

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of Brushy Peak (elevation 1,702 feet), T1S, R2E; then
    (3) Continue due south in a straight line approximately 400 feet to 
the northern boundary of section 13, T2S, R2E; then
    (4) Proceed due east along the section 13 and section 18 northern 
boundary lines to the northeast corner of section 18, T2S, R3E; then
    (5) Continue southeast in a straight line approximately 1.8 miles to 
BM 720 in section 21, T2S, R3E, on the Altamont map; then
    (6) Continue south-southeast in a straight line approximately 1 mile 
to an unnamed, 1,147-foot peak in section 28, T2S, R3E; then
    (7) Continue south-southwest in a straight line approximately 1.1 
miles to the intersection of the eastern boundary of section 32, T2S, 
R3E, with Interstate 580; then
    (8) Continue southeast in a straight line approximately 2.7 miles to 
BM 1602 in Patterson Pass in section 10, T3S, R3E; then
    (9) Continue south-southeast in a straight line approximately 2.8 
miles to BM 1600, adjacent to Tesla Road in section 26, T3S, R3E, on the 
Midway map; then
    (10) Continue south in a straight line approximately 4.2 miles, 
passing onto the Cedar Mtn. map, to BM 1878, 40 feet north of Mines 
Road, in section 14, T4S, R3E; then
    (11) Proceed west-southwest in a straight line approximately 4.2 
miles, passing onto the Mendenhall Springs map, to the southeast corner 
of section 19, T4S, R3E; then
    (12) Continue west along the southern boundaries of section 19, T4S, 
R3E, and section 24, T4S, R2E, to the southwest corner of section 24; 
then
    (13) Proceed north along the western boundary of section 24, T4S, 
R2E, to the southeast corner of section 14, T4S, R2E; then
    (14) Continue west along the southern boundary of section 14, T4S, 
R2E, to its southwest corner and then proceed north along the western 
boundary of section 14 to its intersection with the Hetch Hetchy 
Aqueduct, T4S, R2E; then
    (15) Follow the Hetch Hetchy Aqueduct west-southwest approximately 
4.2 miles to the Aqueduct's intersection with the R1E/R2E range line on 
the La Costa Valley map, T4S; then
    (16) Continue southwest in a straight line approximately 3.9 miles, 
crossing Apperson, Welsh, and Alameda Creeks, to BM 533 in section 10, 
T5S, R1E; then
    (17) Proceed due west-northwest in a straight line approximately 1.9 
miles, passing onto the Niles map, to the line's intersection with the 
eastern boundary of section 5 and the Fremont Boundary Line, T5S, R1E; 
then
    (18) Continue northwest in a straight line approximately 1.1 miles 
to an unnamed, 1,291-foot peak in section 32, T4S, R1E; then
    (19) Continue northwest in a straight line approximately 1.1 miles 
to an unnamed, 1,058-foot peak in section 30, T4S, R1E; then
    (20) Continue northwest in a straight line approximately 3.8 miles, 
passing through BM 161 in section 11, T4S, R1W, until the line 
intersects Palomares Road, a medium duty road, in section 11; then
    (21) Follow Palomares Road in a northerly direction for 
approximately 0.7 miles to the road's intersection with the power 
transmission line shown in section 11, T4S, R1W; then
    (22) Proceed northwest along the power transmission line for 
approximately 6.4 miles, passing through the Dublin map near Walpert 
Ridge, onto the Hayward map to the point where the power transmission 
line turns nearly west, approximately 500 feet south of an unnamed, 891-
foot, peak, T3S, R2W; then
    (23) Continue north-northwest in a straight line approximately 1.4 
miles to an unnamed, 840-foot peak, T3S, R2W; then
    (24) Proceed north-northeast in a straight line approximately 3.4 
miles, returning to the Dublin map, to the point where the Contra Costa 
County-Alameda County line turns to the northwest, about 0.4 mile west 
of Wiedemann Hill (elevation 1,854 feet), section 20, T2S, R1W; then
    (25) Proceed in a northwesterly direction along the meandering 
Contra Costa County-Alameda County line for approximately 6.0 miles, 
passing briefly onto the Hayward, Las Trampas

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Ridge, and Diablo maps, before returning to the Las Trampas Ridge map 
and continuing to the point where the Contra Costa County-Alameda County 
line turns to the west-northwest, section 35, T1S, R2W; then
    (26) Continue north-northwest in a straight line approximately 2.7 
miles to the summit of Las Trampas Peak (elevation 1,827 feet) in 
section 22, T1S, R2W; then
    (27) Proceed east-northeast in a straight line approximately 8.8 
miles, passing through the Diablo map, and return to the beginning 
point.

[T.D. ATF-112, 47 FR 38520, Sept. 1, 1982, as amended by T.D. TTB-47, 71 
FR 34531, June 15, 2006]



Sec.  9.47  Hudson River Region.

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

[T.D. ATF-105, 47 FR 24294, June 4, 1982]



Sec.  9.48  Monticello.

    (a) Name. The name of the viticultural area described in this 
section is ``Monticello.''
    (b) Approved maps. Approved maps for the Monticello viticultural 
area are three 1971 U.S.G.S. maps titled:
    (1) Charlottesville Quadrangle, Virginia: 1:250,000 minute series;
    (2) Roanoke Quadrangle, Virginia: 1:250,000 minute series; and
    (3) Washington, DC: 1:250,000 minute series.
    (c) Boundaries. (1) From Norwood, Virginia, following the Tye River 
west and northwest until it intersects with the eastern boundary of the 
George Washington National Forest;

[[Page 131]]

    (2) Following this boundary northeast to Virginia Rt. 664;
    (3) Then west following Rt. 664 to its intersection with the Nelson 
County line;
    (4) Then northeast along the Nelson County line to its intersection 
with the Albemarle County line at Jarman Gap;
    (5) From this point continuing northeast along the eastern boundary 
of the Shenandoah National Park to its intersection with the northern 
Albemarle County line;
    (6) Continuing northeast along the Greene County line to its 
intersection with Virginia Rt. 33;
    (7) Follow Virginia Rt. 33 east to the intersection of Virginia Rt. 
230 at Stanardsville;
    (8) Follow Virginia Rt. 230 north to the Greene County line (the 
Conway River);
    (9) Following the Greene County line (Conway River which becomes the 
Rapidan River) southeast to its intersection with the Orange County 
line;
    (10) Following the Orange County line (Rapidan River) east and 
northeast to its confluence with the Mountain Run River;
    (11) Then following the Mountain Run River southwest to its 
intersection with Virginia Rt. 20;
    (12) Continuing southwest along Rt. 20 to the corporate limits of 
the town of Orange;
    (13) Following southwest the corporate limit line to its 
intersection with U.S. Rt. 15;
    (14) Continuing southwest on Rt. 15 to its intersection with 
Virginia Rt. 231 in the town of Gordonsville;
    (15) Then southwest along Rt. 231 to its intersection with the 
Albemarle County line.
    (16) Continuing southwest along the county line to its intersection 
with the James River;
    (17) Then following the James River to its confluence with the Tye 
River at Norwood, Virginia, the beginning point.

[T.D. ATF-164, 49 FR 2758, Jan. 23, 1984, as amended by T.D. ATF-249, 52 
FR 5957, Feb. 27, 1987; T.D. ATF-255, 52 FR 23652, June 24, 1987]



Sec.  9.49  Central Delaware Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Central Delaware Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Central Delaware Valley viticultural area are nine 
U.S.G.S. maps in the 7.5 minute series (topographic). They are titled:
    (1) Bloomsbury Quadrangle, New Jersey, 1955 (photorevised 1970).
    (2) Riegelsville Quadrangle, Pennsylvania-New Jersey, 1956 
(photorevised 1968 and 1973).
    (3) Frenchtown Quadrangle, Pennsylvania-New Jersey, 1955 
(photorevised 1970).
    (4) Lumberville Quadrangle, Pennsylvania-New Jersey, 1955 
(photorevised 1968 and 1973).
    (5) Stockton Quadrangle, New Jersey-Pennsylvania, 1954 (photorevised 
1970).
    (6) Hopewell Quadrangle, New Jersey, 1954 (photorevised 1970).
    (7) Buckingham Quadrangle, Pennsylvania--Bucks Co., 1953 
(photorevised 1968 and 1973).
    (8) Lambertville Quadrangle, Pennsylvania-New Jersey, 1953 
(photorevised 1968 and 1973).
    (9) Pennington Quadrangle, New Jersey-Pennsylvania 1954 
(photorevised 1970).
    (c) Boundary--(1) General. The Central Delaware Valley viticultural 
area is located in Pennsylvania and New Jersey. The starting point of 
the following boundary description is the summit of Strawberry Hill, 
which is located in New Jersey near the Delaware River about one mile 
northwest of Titusville, at the southern end of the Central Delaware 
Valley viticultural area. The starting point is found on the 
Lambertville Quadrangle map.
    (2) Boundary Description: (i) From the summit of Strawberry Hill 
(475 feet) in a straight line to the summit of Mt. Canoe (428 feet--on 
the Pennington Quadrangle map).
    (ii) From there due east to Mercer County Route 579 (Bear Tavern 
Road) about .2 mile south of Ackors Corner.
    (iii) Then northward along Mercer 579 to Harbourton.
    (iv) From there northwestward along Route 3 (Mount Airy-Harbourton 
Road) to the 2nd English Presbyterian Church

[[Page 132]]

in Mount Airy (on the Stockton Quadrangle map).
    (v) From there along Old York Road northward to Benchmark 157 on 
U.S. Route 202.
    (vi) From there westward along Queen Road and northwestward along 
Mount Airy Road to Dilts Corner.
    (vii) From there northwestward along Dilts Corner Road to Sandy 
Ridge Church.
    (viii) From there northwestward via Cemetary Road to Benchmark 305.
    (ix) From there northward along Covered Bridge Road to Green 
Sergeant Covered Bridge.
    (x) From there generally westward along Sanford Road to its 
intersection with Route 519 about one mile north of Rosemont.
    (xi) From there northward along Route 519 (via Kingwood, Barbertown 
and Baptistown) to Palmyra (on the Frenchtown Quadrangle map).
    (xii) From the intersection in Palmyra, in a straight line northward 
to the 487 ft. elevation point near Nishisakawick Creek.
    (xiii) From there in a straight line northwestward to Benchmark 787 
on Rt. 579 (a secondary hard surface highway, unnamed on the map).
    (xiv) From there northward along Route 579 to Benchmark 905 (on the 
Bloomsbury Quadrangle map).
    (xv) From there in a straight line westward to the 952 ft. summit 
;of Musconetcong Mountain (on the Frenchtown Quadrangle map).
    (xvi) From there in a straight line southwestward to the 836 ft. 
summit of Musconetcong Mountain (on the Riegelsville Quadrangle map).
    (xvii) From there in straight lines connecting the 838 ft., 839 ft., 
707 ft., and 386 ft. summits of Musconetcong Mountain.
    (xviii) From the 386 ft. summit of Musconetcong Mountain in a 
straight line across the Delaware River to the intersection of Routes 
611 and 212.
    (xix) From there along Route 212 to the intersection with the lane 
going up Mine Hill.
    (xx) From there in a straight line to the summit of Mine Hill (488 
feet).
    (xxi) From there in a straight line southwestward to the 522 ft. 
summit elevation point.
    (xxii) From there southeastward to the summit of Chestnut Hill (743 
feet).
    (xxiii) From there in a straight line southeastward to the 347 ft. 
summit elevation point (located south of Kintnersville near Benchmark 
173, about .1 mile west of Route 611).
    (xxiv) From there in a straight line eastward to the summit of 
Coffman Hill (826 feet).
    (xxv) From there in a straight line southeastward to the 628 ft. 
summit elevation point (about .3 mile north of Camp Davis).
    (xxvi) From there in a straight line southeastward to the point 
where Bridgeton, Nockamixon, and Tinicum Townships meet (on the 
Frenchtown Quadrangle map).
    (xxvii) From there in a straight line southward to the intersection 
of Slant Hill Road (Covered Bridge Road) and Stump Road in Smiths Corner 
(on the Lumberville Quadrangle map).
    (xxviii) From there in a straight line southeastward to the 472 ft. 
elevation point near Rocky Ridge School.
    (xxix) From there southeastward in a straight line to the 522 ft. 
elevation point on Plumstead Hill.
    (xxx) From there in a straight line to the 482 ft. elevation point 
about .7 mile northwest of Lahaska.
    (xxxi) From there in a straight line southeastward to the 352 ft. 
elevation point approximately .6 mile northeast of Lahaska.
    (xxxii) From there in a straight line to the point where a power 
transmission line crosses the 400 ft. contour line on the south side of 
Solebury Mountain (on the Lambertville Quadrangle map).
    (xxxiii) From there in a straight line to the tower on Bowman Hill 
in Washington Crossing State Park.
    (xxxiv) From there in a straight line across the Delaware River to 
the starting point, the summit of Strawberry Hill (475 feet).

[T.D. ATF-168, 49 FR 10117, Mar. 19, 1984, as amended by T.D. ATF-249, 
52 FR 5958, Feb. 27, 1987]



Sec.  9.50  Temecula Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Temecula Valley.''

[[Page 133]]

    (b) Approved map.The approved maps for determining the boundary of 
the Temecula Valley viticultural area are seven USGS quadrangle maps in 
the 7.5 minute series, as follows:
    (1) Wildomar, California, dated 1953, photorevised 1973;
    (2) Fallbrook, California, dated 1968;
    (3) Murrieta, California, dated 1953, photorevised 1979;
    (4) Temecula, California, dated 1968, photorevised 1975;
    (5) Pechanga, California, dated 1968;
    (6) Sage, California, dated 1954;
    (7) Bachelor Mountain, California, dated 1953, photorevised 1973.
    (c) Boundary. The Temecula Valley viticultural area is located in 
Riverside County, California. The boundary is as follows:
    (1) The beginning point is the northernmost point of the Santa Rosa 
Land Grant where the Santa Rosa Land Grant boundary intersects the 
easternmost point of the Cleveland National Forest boundary.
    (2) The boundary follows the Cleveland National Forest boundary 
southwesterly to the point where it converges with the Riverside County-
San Diego County line.
    (3) The boundary follows the Riverside County-San Diego County line 
southwesterly, then southeasterly to the point where the Riverside 
County-San Diego County line diverges southward and the Santa Rosa Land 
Grant boundary continues southeasterly.
    (4) The boundary follows the Santa Rosa Land Grant boundary 
southeasterly, then northeasterly, to its intersection with the Temecula 
Land Grant boundary.
    (5) The boundary follows the Temecula Land Grant boundary 
southeasterly, then northeasterly, to its intersection with the Little 
Temecula Land Grant boundary.
    (6) The boundary follows the Little Temecula Land Grant boundary 
southeasterly to its intersection with the boundary of that portion of 
the Pechanga Indian Reservation which, until 1907, was Lot ``E'' of the 
Little Temecula Land Grant.
    (7) The boundary follows the Pechanga Indian Reservation boundary 
southeasterly, then northeasterly (including that portion of the 
Penchanga Indian Reservation in the approved viticultural area) to the 
point at which it rejoins the Little Temecula Land Grant boundary.
    (8) The boundary follows the Little Temecula Land Grant boundary 
northeasterly to its intersection with the Pauba Land Grant boundary.
    (9) The boundary follows the Pauba Land Grant boundary 
southeasterly, then northeasterly, to the north-south section line 
dividing Section 23 from Section 24 in Township 8 South, Range 2 West.
    (10) The boundary follows this section line south to the 1500-foot 
contour line.
    (11) The boundary follows the 1500-foot contour line easterly to the 
range line dividing Range 2 West from Range 1 West.
    (12) The boundary follows this range line north, across California 
State Highway 71/79, to the 1400-foot contour line of Oak Mountain.
    (13) The boundary follows the 1400-foot contour line around Oak 
Mountain to its intersection with the 117[deg]00[min] West longitude 
meridian.
    (14) The boundary follows the 117[deg]00[min] West longitude 
meridian north to its intersection with the Pauba Land Grant boundary.
    (15) The boundary follows the Pauba Land Grant boundary 
northwesterly, then west, then south, then west, to Warren Road (which 
coincides with the range line dividing Range 1 West from Range 2 West).
    (16) The boundary follows Warren Road north to an unnamed east-west, 
light-duty, hard or improved surface road (which coincides with the 
section line dividing Section 12 from Section 13 in Township 7 South, 
Range 2 West).
    (17) The boundary follows this road west to the north-south section 
line dividing Section 13 from Section 14 in Township 7 South, Range 2 
West.
    (18) The boundary follows this section line south to its 
intersection with Buck Road (which coincides with the east-west section 
line on the southern edge of Section 14 in Township 7 South, Range 2 
West).
    (19) The boundary follows Buck Road west to the point where it 
diverges northwesterly from the section line on

[[Page 134]]

the southern edge of Section 14 in Township 7 South, Range 2 West.
    (20) The boundary follows this section line west, along the southern 
edges of Sections 14, 15, 16, 17, and 18 in Township 7 South, Range 2 
West, to Tucalota Creek.
    (21) The boundary follows Tucalota Creek southerly to Santa 
Gertrudis Creek.
    (22) The boundary follows Santa Gertrudis Creek southwesterly to 
Murrieta Creek.
    (23) The boundary proceeds northwesterly along the westernmost 
branches of Murrieta Creek to its intersection with Hayes Avenue, 
northwest of Murrieta, California.
    (24) The boundary follows Hayes Avenue northwesterly, approximately 
4,000 feet, to its terminus at an unnamed, unimproved, fair or dry 
weather road.
    (25) The boundary follows this road southwesterly to Murrieta Creek.
    (26) The boundary proceeds northwesterly along the westernmost 
branches of Murrieta Creek to its intersection with Orange Street in 
Wildomar, California.
    (27) From the intersection of Murrieta Creek and Orange Street in 
Wildomar, California, the boundary proceeds in a straight line to the 
beginning point.
    (d) From November 23, 1984, until June 17, 2004, the name of this 
viticultural area was ``Temecula''. Effective June 18, 2004, this 
viticulture area is named ``Temecula Valley''. Existing certificates of 
label approval showing ``Temecula'' as the appellation of origin will be 
revoked by operation of this regulation on June 19, 2006.

[T.D. ATF-188, 49 FR 42566, Oct. 23, 1984; 49 FR 43455, Oct. 29, 1984, 
as amended by T.D. ATF-221, 51 FR 750, Jan. 8, 1986; T.D. ATF-249, 52 FR 
5958, Feb. 27, 1987; T.D. TTB-10, 69 FR 20825, Apr. 19, 2004]



Sec.  9.51  Isle St. George.

    (a) Name. The name of the viticultural area described in this 
section is ``Isle St. George.''
    (b) Approved maps. The approved map for determining the boundary of 
the Isle St. George viticultural area is the U.S.G.S. quadrangle map, 
``Put-in-Bay, Ohio'', 7.5 minute series, edition of 1969.
    (c) Boundaries. The Isle St. George viticultural area is located 
entirely within Ottawa County, Ohio. The boundary of the Isle St. George 
viticultural area is the shoreline of the island named ``North Bass 
Island'' on the ``Put-in-Bay, Ohio'' U.S.G.S. map, and the viticultural 
area comprises the entire island.

[T.D. ATF-110, 47 FR 36421, Aug. 20, 1982]



Sec.  9.52  Chalk Hill.

    (a) Name. The name of the viticultural area described in this 
section is ``Chalk Hill.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Chalk Hill viticultural area are the U.S.G.S. topographic maps 
titled:
    ``Mark West Springs Quadrangle, California'', 7.5 minute series, 
1958; and,
    ``Healdsburg Quadrangle, California'', 7.5 minute series, 1955 
(Photorevised 1980).
    (c) Boundary. The Chalk Hill viticultural area is located near the 
town of Windsor in Sonoma County, California. From the beginning point 
on the south line of Section 2, Township 8 North (T. 8 N.), Range 9 West 
(R. 9 W.) at the intersection of Arata Lane and Redwood Highway (a.k.a. 
Old Highway 101), on the ``Healdsburg Quadrangle'' map, the boundary 
proceeds--
    (1) Southeasterly along Redwood Highway through Section 11, T. 8 N., 
R. 9 W., to the point of intersection with Windsor River Road;
    (2) Then westerly along Windsor River Road on the south boundary of 
Section 11, T. 8 N., R. 9 W., to the point of intersection with Starr 
Road;
    (3) The southerly along Starr Road to the point of intersection with 
the south line of Section 14, T. 8 N., R. 9 W.;
    (4) Then easterly along the south line of Sections 14 and 13, T. 8 
N., R. 9 W. and Section 18, T. 8 N., R. 8 W., to the point of 
intersection with the Redwood Highway;
    (5) Then southeasterly along the Redwood Highway to the intersection 
with an unnamed road that intersects the Redwood Highway at a right 
angle from the northeast near the southwest corner of Section 28 near 
Mark West Creek, T. 8 N., R. 8 W.;

[[Page 135]]

    (6) Then northeast approximately 500 feet along the unnamed road to 
its intersection with the Pacific Gas and Electric power transmission 
line;
    (7) Then northeast approximately 1,000 feet along the power 
transmission line (paralleling the unnamed road) to the point where the 
power transmission line turns in a northerly direction;
    (8) Then in a northerly direction along the power transmission line 
to the point of its intersection with the south line of Section 17, T. 8 
N., R. 8 W.;
    (9) Then east along the south line of Sections 17, 16 and 15, T. 8 
N., R. 8 W. to the point of intersection with Mark West Road on the 
``Mark West Quadrangle Map'';
    (10) Then northerly for approximately 1.3 miles along Mark West Road 
(which becomes Porter Creek Road), then northeasterly for approximately 
1.7 miles on Porter Creek Road to its intersection with the unnamed 
medium duty road that parallels Porter Creek in Section 12, T. 8 N., R. 
8 W.; then northeasterly on the Franz Valley Road over the Tarwater 
Grade and continuing along the Franz Valley Road for approximately 3 
miles to its intersection with Franz Creek (approximately 2,000 feet 
west of the range line common to R. 7 W. and R. 8 W. in T. 9 N. and 
approximately 1,150 feet north of the north line of Section 25, T. 9 N., 
R. 8 W.);
    (11) Then westerly along Franz Creek to its point of intersection 
with the east line of Section 21, T. 9 N., R. 8 W.;
    (12) Then southerly along the east line of Section 21 to the 
southeast corner thereof;
    (13) Then southerly, approximately 0.08 mile, along the west line of 
section 27, T. 9 N., R. 8 W., to the point at which an unnamed 
unimproved road which parallels the south bank of Martin Creek 
intersects the west line of section 27, T. 9 N., R. 8 W.;
    (14) Then southeasterly, approximately 1.07 miles, along said road 
to the point at which the road is crossed by the east line of section 
27, T. 9 N., R. 8 W.;
    (15) Then southerly, approximately 0.65 mile, along the east lines 
of sections 27 and 34, T. 9 N., R. 8 W., to the point in the northeast 
corner of section 34, T. 9 N., R. 8 W. where the north fork of Barnes 
Creek intersects such line in section 34, T. 9 N., R. 8 W.;
    (16) Then continuing along the north fork of Barnes Creek, 
approximately 0.5 mile, in a generally westerly direction to a small 
dwelling at the eastern terminus of an unnamed unimproved road (known 
locally as the access to the Shurtleff Ranch) in section 34, T. 9 N., R. 
8 W.;
    (17) Then continuing in a generally westerly direction, 
approximately 1.4 miles, along the unnamed unimproved road (known 
locally as the access to the Shurtleff Ranch) to its intersection with 
an unnamed unimproved road (known locally as Spurgeon Road) in section 
33, T. 9 N., R. 8 W. on the Healdsburg, California, Quadrangle Map;
    (18) Then westerly, approximately 0.45 mile, along the unnamed 
unimproved road (known locally as Spurgeon Road) to the point where the 
road intersects Chalk Hill Road in section 32, T. 9 N., R. 8 W.;
    (19) Then in a generally northwesterly direction, approximately 1.3 
miles, along Chalk Hill Road to the point where Chalk Hill Road crosses 
Brooks Creek in section 29, T. 9 N., R. 8 W.;
    (20) Then north in a straight line, approximately 0.2 mile, to the 
top of a peak identified as Chalk Hill;
    (21) Then west-northwesterly in a straight line to the confluence of 
Brooks Creek and the Russian River;
    (22) Then westerly along the Russian River to the point of 
intersection with the range line common to R. 8 W. and R. 9 W. in T. 9 
N.;
    (23) Then southwesterly in a straight line to the point of a hill 
identified as having an elevation of 737 feet;
    (24) Then south-southwesterly in a straight line to the point at the 
easterly terminus of Reiman Road;
    (25) Then southwesterly in a straight line to the point at the 
intersection of the township line common to T. 8 N. and T. 9 N. in R. 9 
W. and the frontage road (a.k.a. Los Amigos Road) for U.S. Highway 101;
    (26) Then west approximately 3,000 feet along the township line 
common to T. 8 N. and T. 9 N. in R. 9 W.;

[[Page 136]]

    (27) Then southerly for approximately 2,000 feet in a straight line 
to the point of intersection with an unnamed stream drainage;
    (28) Then east in a straight line to the point of intersection with 
Eastside Road;
    (29) Then northeasterly along Eastside Road to the point of 
intersection with Redwood Highway;
    (30) Then southeasterly along Redwood Highway to the point of 
beginning.

[T.D. ATF-155, 48 FR 48812, Oct. 21, 1983, as amended by T.D. ATF-272, 
53 FR 17023, May 13, 1988]



Sec.  9.53  Alexander Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Alexander Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Alexander Valley viticultural area are seven U.S.G.S. 
maps entitled:
    (1) ``Mark West Springs Quadrangle, California,'' 7.5 minute series, 
1958;
    (2) ``Mount St. Helena Quadrangle, California,'' 7.5 minute series, 
1959;
    (3) ``Jimtown Quadrangle, California--Sonoma County,'' 7.5 minute 
series, 1955 (Photorevised 1975);
    (4) ``Geyserville Quadrangle, California--Sonoma County,'' 7.5 
minute series, 1955 (Photorevised 1975);
    (5) ``Healdsburg Quadrangle, California--Sonoma County,'' 7.5 minute 
series, 1955;
    (6) ``Asti Quadrangle, California,'' 7.5 minute series, 1959 
(Photorevised 1978); and
    (7) ``Cloverdale Quadrangle, California,'' 7.5 minute series, 1960.
    (c) Boundaries. The Alexander Valley viticultural area is located in 
northeastern Sonoma County, California. From the beginning point at the 
northeast corner of Section 32, Township 12 North (T. 12 N.), Range 10 
West (R. 10 W.), on the Asti Quadrangle map, the boundary runs--
    (1) West along the north line of Sections 32 and 31, T. 12 N., R. 10 
W., and Sections 36, 35, and 34, T. 12 N., R. 11 W., to the northwest 
corner of Section 34, on the Cloverdale Quadrangle map;
    (2) Then south along the west line of Section 34 to the southwest 
corner thereof;
    (3) Then east southeasterly in a straight line to the southeast 
corner of section 2, T. 11 N., R. 11 W.;
    (4) Then south southeasterly in a straight line to the southeast 
corner of section 24, T. 11 N., R. 11 W.;
    (5) Then southeasterly in a straight line across sections 30, 31 and 
32, T. 11 N., R. 10 W., to the point at 38[deg]45[min] N. latitude and 
123[deg]00[min] E. longitude in section 5, T. 10 N., R. 10 W.;
    (6) Then southeasterly in a straight line approximately 11,000 feet 
(closely following the ridge line) to the northwest corner of Section 
10, T. 10 N., R.10 W. on the Geyserville Quadrangle map;
    (7) [Reserved]
    (8) Then southerly along the west line of Section 10, T. 10 N., R. 
10 W.;
    (9) Then S. 74 degrees, E. 2,800 feet in a straight line to the 
northeasterly tip of a small lake;
    (10) Then N. 57 degrees, E. 2,300 feet in a straight line to the 
southeast corner of Section 10, T. 10 N., R. 10 W.;
    (11) Then S. 16 degrees, E. 1,800 feet in a straight line to the 
point on a peak identified as having an elevation of 664 feet;
    (12) Then S. 55 degrees, E. 7,900 feet in a straight line to the 
most northerly point on the northeasterly line of ``Olive Hill'' 
Cemetery, lying on the easterly side of a light-duty road identified as 
Canyon Road;
    (13) Then southeasterly along the northeasterly line of ``Olive 
Hill'' cemetery to most easterly point thereon;
    (14) Then southerly 3,000 feet along the meanders of the west fork 
of Wood Creek to the point lying 400 feet north of the point on a peak 
identified as having an elevation of 781 feet;
    (15) Then southerly 400 feet in a straight line to the point on a 
peak identified as having an elevation of 781 feet;
    (16) Then S. 50\1/2\ degrees, E. 15,200 feet in a straight line to 
the point lying at the intersection of Lytton Creek with the township 
line common to T. 9 N. and T. 10 N. in R. 9 W.;
    (17) Then southerly along the meanders of Lytton Creek to the point 
of intersection with a light-duty road identified as Lytton Springs Road 
in T. 9 N., R. 9 W.;

[[Page 137]]

    (18) Then easterly along Lytton Springs Road to the point of 
intersection with a heavy-duty road identified as U.S. Highway 101 
(a.k.a. Redwood Highway), on the Jimtown Quadrangle map;
    (19) Then southerly along U.S. Highway 101 to the point of 
intersection with an unnamed light-duty road (known locally as Chiquita 
Road), on the Geyserville Quadrangle map;
    (20) Then easterly along the unnamed light-duty road to the point of 
intersection with an unnamed heavy-duty road (known locally as 
Healdsburg Avenue), on the Jimtown Quadrangle map;
    (21) Then southeasterly in a straight line approximately 11,000 feet 
to the 991-foot peak of Fitch Mountain;
    (22) Then east southeasterly approximately 7,000 feet in a straight 
line to the peak identified as having an elevation of 857 feet;
    (23) Then east southeasterly approximately 1,750 feet to the peak 
identified as Black Peak;
    (24) Then southeasterly approximately 7,333 feet to the peak 
identified as having an elevation of 672 feet;
    (25) Then northeasterly approximately 5,000 feet in a straight line 
to the point of confluence of Brooks Creek with the Russian River in T. 
9 N., R. 8 W., on the Healdsburg Quadrangle map;
    (26) Then east-southeasterly 2,400 feet in a straight line to the 
top of a peak identified as Chalk Hill;
    (27) Then south from said peak, in a straight line, approximately 
0.2 mile to the point where Chalk Hill Road crosses Brooks Creek (on the 
Healdsburg Quadrangle map);
    (28) Then southeasterly, approximately 1.3 miles, along the roadbed 
of Chalk Hill Road to the point near the confluence of Brooks Creek and 
Barnes Creek where Chalk Hill Road intersects an unnamed unimproved road 
(known locally as Spurgeon Road) that parallels Barnes Creek in section 
32, T. 9 N., R. 8 W.;
    (29) Then easterly, approximately 0.45 mile, along said road (known 
locally as Spurgeon Road) to the point where the road is intersected by 
an unnamed unimproved road (known locally as the access to the Shurtleff 
Ranch) in section 33, T. 9 N., R. 8 W.;
    (30) Then continuing along the unnamed unimproved road (known 
locally as the access to the Shurtleff Ranch), approximately 1.33 miles, 
in a generally easterly direction, to the eastern terminus of said road 
at a small dwelling along the north fork of Barnes Creek in section 34, 
T. 9 N., R. 8 W. on the Mark West Springs, California, Quadrangle map;
    (31) Then easterly along the north fork of Barnes Creek, 
approximately 0.5 mile, to the point in the northeast corner of section 
34, T. 9 N., R. 8 W. where the north fork of Barnes Creek intersects the 
east line of section 34, T. 9 N., R. 8 W.;
    (32) Then north, approximately 0.65 mile, along the east lines of 
sections 34 and 27, T. 9 N., R. 8 W., to the point at which an unnamed 
unimproved road which parallels the south bank of Martin Creek 
intersects the eastern border of section 27, T. 9 N., R. 8 W.;
    (33) Then in a generally northwesterly direction, approximately 1.07 
miles, along said road to the point at which the road is crossed by the 
west line of section 27, T. 9 N., R. 8 W.;
    (34) Then north, approximately 0.08 mile, along the west line of 
section 27, T. 9 N., R. 8 W., to the southeast corner of section 21, T. 
9 N., R. 8 W.;
    (35) Then northerly along the east line of Sections 21, 16, and 9, 
T. 9 N., R. 8 W. to the northeast corner of Section 9, on the Mount St. 
Helena Quadrangle map;
    (36) Then westerly along the north line of Section 9 to the 
northwest corner thereof, on the Jimtown Quadrangle map;
    (37) Then northerly along the western lines of section 4, of T. 9 N, 
R. 8 W., and sections 33, 28, 21, 16, and 9 of T. 10 N., R. 8 W.;
    (38) Then westerly along the northern lines of section 8 and 7, T. 
10 N., R. 8 W. and section 12, T. 10 N., R. 9 W. to the southeastern 
corner of section 2, T. 10 N., R. 9 W.;
    (39) Then northwesterly in a straight line to the eastern line of 
section 3 at 38 degrees 45 minutes latitude, T. 10 N., R. 9 W.;
    (40) Then westerly along latitude line 38 degrees 45 minutes to the 
point lying at 122 degrees 52 minutes 30 seconds longitude;

[[Page 138]]

    (41) Then northwesterly in a straight line to the southeast corner 
of section 4, T. 11 N., R. 10 W., on the Asti, Quadrangle map;
    (42) Then northeasterly in a straight line to the southeast corner 
of section 34, T. 12 N., R. 10 W.;
    (43) Then north along the east boundary of section 34, T. 12 N., R. 
10 W., to the northeast corner of section 34, T. 12 N., R. 10 W.;
    (44) Then west along the north boundaries of sections 34 and 33, T. 
12 N., R. 10 W., to the point of beginning.

[T.D. ATF-187, 49 FR 42724, Oct. 24, 1984, as amended by T.D. ATF-233; 
51 FR 30354, Aug. 26, 1986; T.D. ATF-272, 53 FR 17025, May 13, 1988; 
T.D. ATF-300, 55 FR 32402, Aug. 9, 1990; T.D. ATF-468, 66 FR 50565, Oct. 
4, 2001]

    Effective Date Note: At 73 FR 12877, Mar.11, 2008, Sec.  9.53 was 
amended by revising the heading of paragraph (c), revising paragraph 
(c)5), redesignating paragraphs (c)(6) through (c)(44) as (c)(9) through 
(c)(47), and adding new paragraphs (c)(6) through (c)(8), effective Apr. 
10, 2008. For the convenience of the user, the added and revised text is 
set forth as follows:



Sec.  9.53  Alexander Valley.

                                * * * * *

    (c) Boundary.

                                * * * * *

    (5) Then straight south along the eastern boundary line of Section 
25, to its intersection with Kelly Road, a medium-duty road, T. 11 N., 
R. 11 W.;
    (6) Then southwest along Kelly Road to its intersection with the 
northern boundary line of Section 36, T. 11 N., R. 11 W.;
    (7) Then straight south to its intersection with 38[deg] 45[min] N. 
latitude along the southern border of the Cloverdale Quadrangle map, T. 
10 N., R. 11 W. and R. 10 W.;
    (8) Then straight east to its intersection with 123[deg] 00[min] E. 
longitude at the southeastern corner of the Cloverdale Quadrangle map, 
T. 10 N., R. 10 W.;

                                * * * * *



Sec.  9.54  Santa Ynez Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Santa Ynez Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Santa Ynez Valley viticultural area are 12 U.S.G.S. 
quadrangle maps. They are entitled:
    (1) ``Figueroa Mountain, Cal.'', 7.5 minute series, edition of 1959;
    (2) ``Foxen Canyon, Cal.'', 7.5 minute series, edition of 1964;
    (3) ``Lake Cachuma, Cal.'', 7.5 minute series, edition of 1959;
    (4) ``Lompoc, Cal.'', 7.5 minute series, edition of 1959 
(photorevised 1974);
    (5) ``Lompoc Hills, Cal.'', 7.5 minute series, edition of 1959;
    (6) ``Los Alamos, Cal.'', 7.5 minute series, edition of 1959;
    (7) ``Los Olivos, Cal.'', 7.5 minute series, edition of 1959 
(photoinspected 1974);
    (8) ``Santa Rosa Hills, Cal.'', 7.5 minute series, edition of 1959;
    (9) ``Santa Ynez, Cal.'', 7.5 minute series, edition of 1959 
(photorevised 1974);
    (10) ``Solvang, Cal.'', 7.5 minute series, edition of 1959 
(photorevised 1974);
    (11) ``Zaca Creek, Cal.'', 7.5 minute series, edition of 1959; and
    (12) ``Zaca Lake, Cal.'', 7.5 minute series, edition of 1964.
    (c) Boundaries. The Santa Ynez Valley viticultural area is located 
within Santa Barbara County, California. The beginning point is found on 
the ``Los Alamos, California'' U.S.G.S. map where California Highway 246 
(indicated as Highway 150 on the Los Alamos map) intersects with the 
120[deg]22[min]30[sec] longitude line.
    (1) Then north following the 120[deg]22[min]30[sec] longitude line 
to Cebada Canyon Road.
    (2) Then northeast following Cebada Canyon Road and an unnamed jeep 
trail to the northern boundary of Section 9, T. 7 N., R. 33 W.
    (3) Then east following the northern boundaries of Sections 9, 10, 
11, 12, 7, and 8 to the northeast corner of Section 8, T. 7 N., R. 33 W.
    (4) Then south following the eastern boundaries of Sections 8 and 17 
to the intersection with the boundary dividing the La Laguna and San 
Carlos de Jonata Land Grants.
    (5) Then east following the boundary between the La Laguna and the 
San Carlos de Jonata Land Grants to the intersection with Canada de 
Santa Ynez.
    (6) Then northeast in a straight line for approximately 3.6 miles to 
Benchmark 947 at U.S. Highway 101.

[[Page 139]]

    (7) Then northeast in a straight line for approximately 2.6 miles to 
the southwest corner of the La Zaca Land Grant.
    (8) Then following the boundary of the La Zaca Land Grant north, 
then east to its northeast corner.
    (9) Then east in a straight line for approximately 2.0 miles to the 
point of intersection of the La Laguna and Sisquoc Land Grants with the 
Los Padres National Forest.
    (10) Then following the boundary of the Los Padres National Forest 
south, east, and south until it intersects with the eastern boundary of 
Section 29, T. 7 N., R. 29 W.
    (11) Then south following the eastern boundaries of Sections 29, 32, 
5, 8, and 17 to the boundary of the Cachuma Recreation Area at Bitt 
Benchmark 1074.
    (12) Then following the boundary of the Cachuma Recreation Area west 
and south to the point of intersection with the Los Padres National 
Forest.
    (13) Then south and west following the boundary of the Los Padres 
National Forest to its intersection with the Las Cruces Land Grant at 
the southwest corner of Section 12, T. 5 N., R. 32 W.
    (14) Then north following the boundary of the Las Cruces Land Grant 
to the southeast corner of Section 26, T. 6 N., R. 32 W.
    (15) Then west following the southern boundaries of Sections 26, 27, 
28, and 29 to the intersection with the northern boundary of the San 
Julian Land Grant at the southwestern corner of Section 29, T. 6 N., R. 
32 W.
    (16) Then northwest following the boundary of the San Julian Land 
Grant to its intersection with the 120[deg]22[min]30[sec] longitude 
line.
    (17) Then northwest in a straight line for approximately 3.2 miles 
to the point where Santa Rosa Road intersects Salsipuedes Creek.
    (18) Then following Salsipuedes Creek downstream to the point of 
confluence with the Santa Ynez River.
    (19) Then northeast in a straight line for approximately 1.4 miles 
to an unnamed hill, elevation 597 feet.
    (20) Then northeast in a straight line for approximately 1.7 miles 
to the point of beginning.

[T.D. ATF-132, 48 FR 16252, Apr. 15, 1983]



Sec.  9.55  Bell Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``Bell Mountain.''
    (b) Approved map. The appropriate map for determining the boundaries 
of the Bell Mountain viticultural area is one U.S.G.S. map, titled: 
Willow City Quadrangle, 7.5 minute series, 1967.
    (c) Boundary--(1) General. The Bell Mountain viticultural area is 
located in Gillespie County, Texas. The starting point of the following 
boundary description is the summit of Bell Mountain (1,956 feet).
    (2) Boundary Description. (i) From the starting point, the boundary 
proceeds due southward for exactly one half mile;
    (ii) Then southeastward in a straight line to the intersection of 
Willow City Loop Road with an unnamed unimproved road, where marked with 
an elevation of 1,773 feet;
    (iii) Then generally southward along Willow City Loop Road (a light-
duty road) to Willow City.
    (iv) Then continuing southward and westward along the same light-
duty road to the intersection having an elevation of 1,664 feet;
    (v) Then continuing westward along the light-duty road to the 
intersection having an elevation of 1,702 feet;
    (vi) Then turning southward along the light-duty road to the 
intersection having an elevation of 1,736 feet;
    (vii) Then turning westward along the light-duty road to the 
intersection having an elevation of 1,784 feet;
    (viii) Then turning southward and then westward, following the 
light-duty road to its intersection with Texas Highway 16, where marked 
with an elevation of 1,792 feet;
    (ix) Then due westward to the longitude line 98[deg]45[min];
    (x) Then northward along that longitude line to a point due west of 
an unnamed peak with an elevation of 1,784 feet;
    (xi) Then due eastward to the summit of that unnamed peak;

[[Page 140]]

    (xii) Then in a straight line eastward to the intersection of an 
unnamed unimproved road with Texas Highway 16, where marked with an 
elevation of 1,822 feet;
    (xiii) Then following that unnamed road, taking the right-hand fork 
at an intersection, to a point due west of the summit of Bell Mountain;
    (xiv) Then due eastward to the summit of Bell Mountain.

[T.D. ATF-238, 51 FR 36400, Oct. 10, 1986]



Sec.  9.56  San Lucas.

    (a) Name. The name of the viticultural area described in this 
section is ``San Lucas.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of San Lucas viticultural area are the following four U.S.G.S. 
topographical maps of the 7.5 minute series:

San Lucas, CA, 1949, photorevised 1979,
Nattrass Valley, CA, 1967,
San Ardo, CA, 1967, and,
Espinosa Canyon, CA, 1949, photorevised 1979.

    (c) Boundary. The San Lucas viticultural area is located in Monterey 
County in the State of California. The boundary is as follows:

    Beginning on the ``San Lucas Quadrangle'' map at the northwest 
corner of section 5 in Township 21 South, Range 9 East, the boundary 
proceeds northeasterly in a straight line approximately 0.35 mile to the 
630-foot promontory in section 32, T. 20 S., R. 9 E.;
    (1) Then east southeasterly in a straight line approximately 0.6 
mile to the 499-foot promontory in the southwest corner of section 33, 
T. 20 S., R. 9 E.;
    (2) Then east southeasterly in a straight line approximately 1.3 
miles to the 847-foot promontory in section 3, T. 21 S., R. 9 E., on the 
``Nattrass Valley Quadrangle'' map;
    (3) Then south southeasterly in a straight line approximately 2.2 
miles to the 828-foot promontory in section 14, T. 21 S., R. 9 E., on 
the ``San Ardo Quadrangle'' map;
    (4) Then east southeasterly in a straight line approximately 1.3 
miles to the 868-foot promontory in section 13, T. 21 S., R. 9 E.;
    (5) Then southeasterly in a straight line approximately 0.94 mile to 
the 911-foot promontory in section 19, T. 21 S., R. 10 E.;
    (6) Then easterly in a straight line approximately 1.28 miles to the 
1,042-foot promontory in section 20, T. 21 S., R. 10 E.;
    (7) Then east northeasterly in a straight line approximately 1.28 
miles to the 998-foot promontory in southeast corner of section 16, T. 
21 S., R. 10 E.;
    (8) Then southerly in a straight line approximately 2.24 miles to 
the 1,219-foot promontory near the east boundary of section 28, T. 21 
S., R. 10 E.;
    (9) Then southwesterly in a straight line approximately 1.5 miles to 
the 937-foot promontory near the north boundary of section 32, T. 21 S., 
R. 10 E.;
    (10) Then southwesterly in a straight line approximately 0.34 mile 
to the 833-foot promontory in section 32, T. 21 S., R. 10 E.;
    (11) Then south southeasterly in a straight line approximately 0.5 
mile to the 886-foot ``Rosenberg'' promontory in section 32, T. 21 S., 
R. 10 E.;
    (12) Then south southeasterly approximately 1.1 miles to the 781-
foot promontory in section 5, T. 22 S., R. 10 E.;
    (13) Then southeasterly in a straight line approximately 0.7 mile to 
the 767-foot promontory in section 9, T. 22 S., R. 10 E.;
    (14) Then southerly in a straight line approximately 0.5 mile to the 
647-foot promontory along the south boundary of section 9, T. 22 S., R. 
10 E.;
    (15) Then southwesterly in a straight line approximately 2.67 miles 
to the 835-foot promontory in section 19, T. 22 S., R. 10 E.;
    (16) Then west southwesterly in a straight line approximately 1.1 
miles to the 1,230-foot promontory in section 24, T. 22 S., R. 9 E.;
    (17) Then north northwesterly in a straight line approximately 1.4 
miles to the 1,149-foot promontory in section 14, T. 22 S., R. 9 E.;
    (18) Then northwesterly in a straight line approximately 0.57 mile 
to the 1,128-foot promontory in section 11, T. 22 S., R. 9 E.;
    (19) Then west southwesterly in a straight line approximately 0.58 
mile to the 1,220-foot promontory near the north boundary of section 15, 
T. 22 S., R. 9 E.;
    (20) Then northwesterly in a straight line approximately 1.33 miles 
to the 1,071-foot promontory in the northwest corner of section 9, T. 22 
S., R. 9 E.;
    (21) Then northwesterly in a straight line approximately 2.82 miles 
to the 1,004-foot promontory in section 31, T. 21 S., R. 9 E., on the 
``Espinosa Canyon Quadrangle'' map;
    (22) Then north northwesterly in a straight line approximately 1.32 
miles to the 882-foot promontory in section 25, T. 21 S., R. 8 E.;
    (23) Then northwesterly in a straight line approximately 1.05 miles 
to the 788-foot promontory in section 23, T. 21 S., R. 8 E.;
    (24) Then northeasterly approximately 1.3 miles to the 595-foot 
promontory, section 13, T21S, R8E (Espinosa Canyon Quadrangle);
    (25) Then northeasterly approximately 0.6 mile to the intersection 
of a meandering, unnamed, light duty road and the fork of an 
intermittent stream, then continue meandering northeasterly, followed by 
southeasterly, approximately 1.1 miles to its intersection with an 
unnamed, light duty road south of the windmill, T21, R8E (Espinosa 
Canyon Quadrangle);

[[Page 141]]

    (26) Then northeasterly along the unnamed road approximately 0.6 
mile to its intersection with the Salinas River, then continue 0.8 mile 
north in a straight line to benchmark 340, between U.S. Highway 101 and 
the Salinas River, in T21S, R9E (San Lucas Quadrangle);
    (27) Then approximately 0.4 mile northwesterly in a straight line to 
the intersection with a water tank, then continues northeasterly in a 
straight line approximately 0.7 mile, and return to the point of 
beginning in the northwest corner of section 5, in T21S, R9E (San Lucas 
Quadrangle).

[T.D. ATF-248, 52 FR 2945, Jan. 29, 1987, as amended by T.D. TTB-14, 69 
FR 38836, June 29, 2004]



Sec.  9.57  Green Valley of Russian River Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Green Valley of Russian River Valley''. For purposes of 
part 4 of this chapter, ``Green Valley of Russian River Valley'' is a 
term of viticultural significance. ``Sonoma County Green Valley'' is 
also a term of viticultural significance until April 23, 2009.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Green Valley of Russian River Valley viticultural area are three 
United States Geological Survey maps. They are titled:
    (1) ``Sebastopol Quadrangle, California--Sonoma Co.'', 7.5 minute 
series (1954, photorevised 1980);
    (2) ``Camp Meeker Quadrangle, California--Sonoma Co.'', 7.5 minute 
series (1954, photorevised 1971); and
    (3) ``Guerneville Quadrangle, California--Sonoma Co.'', 7.5 minute 
series (1955).
    (c) Boundary. The Green Valley of Russian River Valley viticultural 
area is located in Sonoma County, California. The beginning point is 
located in the northeastern portion of the ``Camp Meeker Quadrangle'' 
map where the line separating Section 31 from Section 32, in Township 8 
North (T.8N.), Range 9 West (R.9W.) intersects River Road.
    (1) From the beginning point, the boundary runs south along the line 
separating Section 31 from Section 32, continuing south along Covey Road 
(shown on the map as an unnamed, light-duty road) to the town of 
Forestville where Covey Road intersects with State Highway 116 
(Gravenstein Highway).
    (2) Thence east along State Highway 116 until it turns in a 
southeasterly direction and then proceeding along State Highway 116 in a 
southeasterly direction until the point at which State Highway 116 
intersects State Highway 12 in the town of Sebastopol (located on the 
``Sebastopol Quadrangle'' map);
    (3) Thence in a southwesterly direction on State Highway 12 through 
the town of Sebastopol;
    (4) Thence in a westerly direction on State Highway 12, which 
becomes Bodega Road, until Bodega Road intersects with Pleasant Hill 
Road;
    (5) Thence in a southerly direction on Pleasant Hill Road until it 
intersects with Water Trough Road;
    (6) Thence westerly and then northwesterly on Water Trough Road 
until it intersects with Gold Ridge Road;
    (7) Thence in a southwesterly, northwesterly, and then a 
northeasterly direction along Gold Ridge Road until it intersects with 
Bodega Road;
    (8) Thence in a southwesterly direction along Bodega Road until 
Bodega Road intersects with Jonive Road in Township 6 North (T.6N.), 
Range 9 West (R.9W.) located in the southeast portion of U.S.G.S. map 
``Camp Meeker Quadrangle'';
    (9) Thence proceeding in a northwesterly direction on Jonive Road 
until it intersects Occidental Road;
    (10) Thence proceeding on Occidental Road in a northwesterly 
direction until Occidental Road intersects the west border of Section 
35;
    (11) Thence proceeding due north along the west borders of Sections 
35, 26, 23, and 14 to the northwest corner of Section 14;
    (12) Thence in an easterly direction along the north border of 
Section 14 to the northeast corner of Section 14;
    (13) Thence north along the west borders of Sections 12, 1, and 36 
to the northwest corner of Section 36 located in the extreme southern 
portion of the ``Guerneville Quadrangle'' map;
    (14) Thence in an easterly direction along the north border of 
Section 36 until it intersects with River Road;
    (15) Thence in a southeasterly direction along River Road to the 
point of

[[Page 142]]

beginning located on the ``Camp Meeker Quadrangle'' map.
    (d) From December 21, 1983, until April 23, 2007, the name of this 
viticultural area was ``Sonoma County Green Valley''. Effective April 
23, 2007, this viticulture area is named ``Green Valley of Russian River 
Valley''. Existing certificates of label approval showing ``Sonoma 
County Green Valley'' as the appellation of origin will be revoked by 
operation of this regulation on April 23, 2009.

[T.D. ATF-161, 48 FR 52579, Nov. 21, 1983, as amended by T.D. TTB-60, 72 
FR 13692, Mar. 23, 2007]



Sec.  9.58  Carmel Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Carmel Valley.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Carmel Valley viticultural area are five U.S.G.S. topographic maps 
in the 7.5 minute series, as follows:
    (1) Mt. Carmel, Calif., dated 1956;
    (2) Carmel Valley, Calif., dated 1956;
    (3) Ventana Cones, Calif., dated 1956;
    (4) Chews Ridge, Calif., dated 1956; and
    (5) Rana Creek, Calif., dated 1956.
    (c) Boundary. The Carmel Valley viticultural area is located in 
Monterey County, California. The boundary is as follows:
    (1) The beginning point is the northeast corner of Section 5 in 
Township 17 South, Range 2 East.
    (2) The boundary follows the Los Laurelles Land Grant boundary 
south, then easterly, to the north-south section line dividing Section 9 
from Section 10 in Township 17 South, Range 2 East.
    (3) The boundary follows this section line south to the southwest 
corner of Section 22 in Township 17 South, Range 2 East.
    (4) From this point, the boundary follows section lines in Township 
17 South, Range 2 East:
    (i) To the southeast corner of Section 22,
    (ii) To the southwest corner of Section 26,
    (iii) To the southeast corner of Section 26,
    (iv) To the southwest corner of Section 36.
    (5) From this point, the boundary follows the Los Padres National 
Forest boundary east, then south, then east to the southwest corner of 
Section 9 in Township 18 South, Range 3 East.
    (6) The boundary follows the section line east to the southeast 
corner of the same section, where the section line rejoins the Los 
Padres National Forest boundary.
    (7) The boundary follows the Los Padres National Forest boundary to 
the north-south section line dividing Section 11 from Section 12 in 
Township 18 South, Range 3 East.
    (8) The boundary follows this section line north to the township 
line dividing Township 17 South from Township 18 South.
    (9) The boundary follows this township line west to the north-south 
section line dividing Section 34 from Section 35 in Township 17 South, 
Range 3 East.
    (10) The boundary follows this section line north to the Los 
Tularcitos Land Grant boundary.
    (11) The boundary follows the Los Tularcitos Land Grant boundary 
northwesterly to the Carmel River.
    (12) The boundary follows the Carmel River northerly to the Los 
Tularcitos Land Grant boundary.
    (13) The boundary follows the Los Tularcitos Land Grant boundary 
northeasterly to the unsurveyed township line (approximate location 
denoted by a line of red dashes) dividing Township 16 South form 
Township 17 South.
    (14) The boundary follows the unsurveyed township line west to the 
beginning point.

[T.D. ATF-119, 47 FR 55916, Dec. 14, 1982]



Sec.  9.59  Arroyo Seco.

    (a) Name. The name of the viticultural area described in this 
section is ``Arroyo Seco.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Arroyo Seco viticultural area are four U.S.G.S. 
quadrangle maps. They are entitled:
    (1) ``Greenfield, California,'' 7.5 minute series, edition of 1956;
    (2) ``Paraiso Springs, California,'' 7.5 minute series, edition of 
1956;

[[Page 143]]

    (3) ``Soledad, California,'' 7.5 minute series, edition of 1955; and
    (4) ``Sycamore Flat, California,'' 7.5 minute series, edition of 
1956 (photoinspected 1972).
    (c) Boundaries. The Arroyo Seco viticultural area is located in 
Monterey County, California. The beginning point is found on the 
``Sycamore Flat'' U.S.G.S. map at the junction of Arroyo Seco Road and 
the Carmel Valley Road (indicated as the Jamesburg Road on the map).
    (1) Then east following Arroyo Seco Road to the southwest corner of 
Section 22, T. 19 S., R. 5 E.
    (2) Then east following the southern boundaries of Sections 22, 23, 
24, 19, and 20 to the southeastern corner of Section 20, T. 19 S., R. 6 
E.
    (3) Then northeast in a straight line for approximately 1.3 miles to 
the summit of Pettits Peak.
    (4) Then northeast in a straight line for approximately 1.8 miles to 
the point where the 400[min] contour line intersects the northern 
boundary of Section 14, T. 19 S., R. 6 E.
    (5) Then east following the 400[min] contour line to a point 
immediately west of the Reservoir within the Posa de los Ositos Land 
Grant.
    (6) Then following the ridge line in a northeasterly direction for 
approximately 7.5 miles to U.S. Highway 101 at the intersection of 
Underwood Road.
    (7) Then east following Underwood Road to its intersection with the 
Posa de los Ositos Land Grant.
    (8) Then north following the boundary of the Posa de los Ositos Land 
Grant to the west bank of the Salinas River.
    (9) Then northwest following the west bank of the Salinas River to 
the southern boundary of Section 17, T. 18 S., R. 7 E.
    (10) Then due west for approximately 2.0 miles following the 
southern boundary of Section 17, and continuing to U.S. Highway 101.
    (11) Then following U.S. Highway 101 in a northwesterly direction to 
its intersection with Paraiso Road.
    (12) Then south following Paraiso Road to the intersection with 
Clark Road.
    (13) Then east-northeasterly along Clark Road for approximately 
1,000 feet to its intersection with an unnamed light-duty road to the 
south.
    (14) Then in a straight south-southeasterly line for approximately 
1.9 miles to the line's intersection with the southeast corner of 
section 33, T18S, R6E (this line coincides with the unnamed light duty 
road for approximately 0.4 miles and then with the eastern boundaries of 
sections 29, 32 and 33, T18S, R6E, which mark this portion of the 
western boundary of the historical Arroyo Seco Land Grant).
    (15) Then straight west along the southern boundary of section 33, 
T18S, R6E, to its southwest corner.
    (16) Then due south following the eastern boundaries of Sections 5, 
8, and 17, to Arroyo Seco Road.
    (17) Then southwest in a straight line for approximately 1.0 mile to 
Bench Mark 673.
    (18) Then west in a straight line for approximately 1.8 miles to 
Bench Mark 649.
    (19) Then northwest in a straight line for approximately 0.2 mile to 
the northeast corner of Section 23, T. 19 S., R. 5 E.
    (20) Then west following the northern boundaries of Section 23 and 
22 to the northwest corner of Section 22, T. 19 S., R. 5 E.
    (21) Then south in a straight line for approximately 1.0 mile to the 
point of beginning.

[T.D. ATF-131, 48 FR 16246, Apr. 15, 1983, as amended by T.D. TTB-49, 71 
FR 34527, June 15, 2006]



Sec.  9.60  Shenandoah Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Shenandoah Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Shenandoah Valley viticultural area are four U.S.G.S. 
Eastern United States 1:250,000 scale maps. The maps are titled: Roanoke 
(1971), Charlottesville (1956, with a revision in 1965), Cumberland 
(1956, revised 1969) and Baltimore (1957, revised 1978).
    (c) Boundaries. The Shenandoah Valley Viticultural area is located 
in Frederick, Clarke, Warren, Shenandoah, Page, Rockingham, Augusta, 
Rockbridge, Botetourt, and Amherst Counties in Virginia, and Berkeley 
and

[[Page 144]]

Jefferson Counties in West Virginia. The boundaries are as follows:
    (1) The boundary line starts at the point of the intersection of the 
Potomac River and the Virginia-West Virginia State line approximately 
eight miles east of Charlestown, West Virginia.
    (2) Then the boundary proceeds southwesterly approximately 14.8 
miles along the State line, which essentially follows the crest of the 
Blue Ridge Mountains, to its intersection with the western border line 
of Clarke County, Virginia.
    (3) Then the boundary continues approximately 13.8 miles 
southwesterly along the county line and the crest of the Blue Ridge to 
its intersection with the western boundary line of Warren County, 
Virginia.
    (4) Then the boundary continues approximately 15 miles along the 
Warren County line to its intersection with the Skyline Drive.
    (5) Then the boundary continues approximately 71 miles in a 
southwesterly direction along the Skyline Drive and the Blue Ridge to 
its intersection with the Blue Ridge Parkway.
    (6) Then the boundary continues approximately 53 miles in a 
southeasterly direction along the Blue Ridge Parkway to its intersection 
with the James River.
    (7) Then the boundary proceeds approximately 44 miles along the 
James River in a west-northwesterly direction to its intersection with 
the northwest boundary line of the Jefferson National Forest near Eagle 
Rock.
    (8) Then the boundary proceeds approximately 10.5 miles in a 
northeasterly direction along the Jefferson National Forest line and 
along the crest of North Mountain to its intersection with the western 
boundary line of Rockbridge County.
    (9) Then the boundary continues approximately 23 miles along the 
county line in the same northeasterly direction to its intersection with 
the Chesapeake and Ohio Railroad.
    (10) Then the boundary continues approximately 23 miles along the 
railroad between the Great North Mountain and the Little North Mountain 
to its intersection with the southeastern boundary line of the George 
Washington National Forest at Buffalo Gap.
    (11) Then the boundary continues approximately 81 miles 
northeasterly along the George Washington National Forest Line to the 
Vertical Control Station, (elevation 1883), on the crest of Little North 
Mountain approximately 3 miles west of Van Buren Furnace.
    (12) Then the boundary line continues approximately 53 miles 
northeasterly along the crest of Little North Mountain to its 
intersection with the Potomac River in Fort Frederick State Park.
    (13) Then the boundary continues approximately 47.4 miles 
southeasterly along the Potomac River to the beginning point at that 
Rivers intersection with the boundary line between West Virginia and 
Virginia.

[T.D. ATF-120, 47 FR 57698, Dec. 28, 1982, as amended by T.D. ATF-249, 
52 FR 5958, Feb. 27, 1987]



Sec.  9.61  El Dorado.

    (a) Name. The name of the viticultural area described in this 
section is ``El Dorado.''
    (b) Approved maps. The approved U.S.G.S. topographic maps (7.5 
series; quadrangles) showing the boundaries of the El Dorado 
viticultural area, including quadrangles showing the area within the 
boundaries, are as follows:
    (1) ``Pilot Hill, California,'' 1954 (photorevised 1973);
    (2) ``Auburn, California,'' 1953 (photorevised 1973);
    (3) ``Greenwood, California,'' 1949 (photorevised 1973);
    (4) ``Georgetown, California,'' 1949 (photorevised 1973);
    (5) ``Foresthill, California,'' 1949 (photorevised 1973);
    (6) ``Michigan Bluff, California,'' 1952 (photorevised 1973);
    (7) ``Tunnel Hill, California,'' 1950 (photorevised 1973);
    (8) ``Slate Mountain, California,'' 1950 (photorevised 1973);
    (9) ``Pollock Pines, California,'' 1950 (photorevised 1973);
    (10) ``Stump Spring, California,'' 1951 (photorevised 1973);
    (11) ``Caldor, California,'' 1951 (photorevised 1973);

[[Page 145]]

    (12) ``Omo Ranch, California,'' 1952 (photorevised 1973);
    (13) ``Aukum, California,'' 1952 (photorevised 1973);
    (14) ``Fiddletown, California,'' 1949;
    (15) ``Latrobe, California,'' 1949 (photorevised 1973);
    (16) ``Shingle Springs, California,'' 1949;
    (17) ``Coloma, California,'' 1949 (photorevised 1973);
    (18) ``Garden Valley, California,'' 1949 (photorevised 1973);
    (19) ``Placerville, California,'' 1949 (photorevised 1973);
    (20) ``Camino, California,'' 1952 (photorevised 1973);
    (21) ``Sly Park, California,'' 1952 (photorevised 1973);
    (c) Boundaries. The boundaries of the El Dorado viticultural area 
which is located in El Dorado County, California, are as follows:
    (1) The beginning point of the boundaries is the intersection of the 
North Fork of the American River (also the boundary line between El 
Dorado and Placer Counties) and the township line ``T. 11 N./T. 12 N.'' 
(``Pilot Hill'' Quadrangle);
    (2) Thence northeast along the North Fork of the American River to 
its divergence with the Middle Fork of the American River, continuing 
then, following the Middle Fork of the American River to its 
intersection with the Rubicon River which continues as the boundary line 
between El Dorado and Placer Counties (``Auburn,'' ``Greenwood,'' 
``Georgetown,'' ``Foresthill,'' and ``Michigan Bluff'' Quadrangles);
    (3) Thence southeast along the Rubicon River to its intersection 
with the range line ``R. 11 E./R. 12 E.'' (``Tunnel Hill'' Quadrangle);
    (4) Thence south along the range line through T. 13 N. and T. 12 N., 
to its intersection with the township line ``T. 12 N./T. 11 N.'' 
(``Tunnel Hill'' and ``Slate Mountain'' Quadrangles);
    (5) Thence east along the range line to its intersection with the 
range line ``R. 12 E./R. 13 E.'' (``Slate Mountains'' and ``Pollock 
Pines'' Quadrangles);
    (6) Thence south along the range line to its intersection with the 
township line ``T. 11 N./T. 10 N.'' (``Pollock Pines'' Quadrangle);
    (7) Thence east along the township line to its intersection with the 
range line ``R. 13 E./R. 14 E.'' (``Pollock Pines'' and ``Stump Spring'' 
Quadrangles);
    (8) Thence south along the range line through T. 10 N., T. 9 N., and 
T. 8 N. to its intersection with the South Fork of the Cosumnes River 
(also the boundary line between El Dorado and Amador Counties) (``Stump 
Spring'' and ``Caldor'' Quadrangles);
    (9) Thence west and northwest along the South Fork of the Cosumnes 
River to its intersection with range line ``R. 11 E./R. 10 E.'' 
(``Caldor,'' ``Omo Ranch,'' ``Aukum,'' and ``Fiddletown'' Quadrangles);
    (10) Thence north along the range line to its intersection with the 
township line ``T. 8 N./T. 9 N.'' (``Fiddletown'' Quadrangle);
    (11) Thence west along the township line to its intersection with 
range line ``R. 10 E./R. 9 E.'' (``Fiddletown'' and ``Latrobe'' 
Quadrangles);
    (12) Thence north along the range line to its intersection with U.S. 
Route 50;
    (13) Thence west along U.S. Route 50 to its intersection with 
Cameron Park Drive;
    (14) Thence north along Cameron Park Drive to its intersection with 
Green Valley Road;
    (15) Thence east along Green Valley Road to its intersection with 
range line R.10 E/ R.9 E;
    (16) Thence north along the range line to its intersection with the 
township line T.10 N./ T.11 N;
    (17) Thence east along the township line approximately 4,000 feet to 
its intersection with the range line ``R. 9 E./R. 10 E.'' (``Coloma'' 
Quadrangle);
    (18) Thence north on the range line to its intersection with the 
township line ``T. 11 N./T. 12 N.'' (``Coloma'' Quadrangle); and
    (19) Thence west along the township line to the point of beginning 
(``Coloma'' and ``Pilot Hill'' Quadrangles).

[T.D. ATF-152, 48 FR 46520, Oct. 13, 1983, as amended by T.D. ATF-254, 
52 FR 23651, June 24, 1987]

[[Page 146]]



Sec.  9.62  Loramie Creek.

    (a) Name. The name of the viticultural area described in this 
section is ``Loramie Creek.''
    (b) Approved map. The approved map for the Loramie Creek 
viticultural area is the U.S.G.S. map entitled ``Fort Loramie 
Quadrangle, Ohio--Shelby Co.,'' 7.5 minute series (topographic), 1961 
(photoinspected 1973).
    (c) Boundaries. The Loramie Creek viticultural area is located 
entirely within Shelby County, Ohio. The boundaries are as follows:
    (1) From the beginning point of the boundary at the intersection of 
State Route 47 and Wright-Puthoff Road, the boundary runs southward on 
Wright-Puthoff Road for a distance of 1\3/8\ miles to the intersection 
of the Wright-Puthoff Road with Consolidated Railroad Corporation 
(indicated on the U.S.G.S. map as New York Central Railroad);
    (2) Then along the Consolidated Railroad Corporation right-of-way in 
a southwesterly direction for a distance of 2\1/8\ miles to the 
intersection of the Consolidated Railroad Corporation right-of-way with 
Loramie Creek;
    (3) Then upstream along Loramie Creek in a northwesterly direction 
for a distance of approximately 3\1/2\ miles to the intersection of 
Loramie Creek and State Route 47;
    (4) Then eastward on State Route 47 for a distance of approximately 
4\1/8\ miles to the beginning point of State Route 47 and Wright-Puthoff 
Road.

[T.D. ATF-118, 47 FR 53356, Nov. 26, 1982]



Sec.  9.63  Linganore.

    (a) Name. The name of the viticultural area described in this 
section is ``Linganore.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Linganor viticultural area are five U.S.G.S 
topographic maps. They are--
    (1) ``Walkersville Quadrangle, Maryland--Frederick Co.'', 7.5 minute 
series, 1953 (Photorevised 1979);
    (2) ``Libertytown Quadrangle, Maryland'', 7.5 minute series, 1944 
(Photorevised 1971);
    (3) ``Damascus Quadrangle, Maryland'', 7.5 minute series, 1944 
(Photorevised 1979);
    (4) ``Winfield Quadrangle, Maryland'', 7.5 minute series, 1950 
(Photorevised 1979); and
    (5) ``Union Bridge Quadrangle, Maryland,'' 7.5 minute series, 1953 
(Photorevised 1971).
    (c) Boundaries. The Linganore viticultural area is located in north 
central Maryland and encompasses parts of Frederick and Carroll 
Counties. From the beginning point lying at the confluence of Linganore 
Creek and the Monocacy River, on the Walkersville Quadrangle map, the 
boundary runs--
    (1) South-southeasterly 5,000 feet in a straight line to the point 
lying approximately 1,000 feet south of Interstate Highway 70 at the 
intersection of two unnamed light duty roads in the town of 
Bartonsville;
    (2) Then east-southeasterly 15,500 feet in a straight line to the 
point lying at the intersection of Mussetter Road and latitude line 39 
degrees 22 minutes 30 seconds;
    (3) Then east-northeasterly 8,125 feet in a straight line to the 
point lying at the intersection of Mill Road and State Highway 144;
    (4) Then easterly along State Highway 144 on the Walkersville 
Quadrangle, Libertytown Quadrangle, and Damascus Quadrangle maps to the 
point of intersection with State Highway 27, approximately midway 
between the towns of Ridgeville and Parrsville, on the Damascus 
Quadrangle map;
    (5) Then northeasterly along State Highway 27 on the Damascus 
Quadrangle, Libertytown Quadrangle, and Winfield Quadrangle maps to the 
point of intersection with State Highway 26 in the town of Taylorsville 
on the Winfield Quadrangle map;
    (6) Then northerly 2,750 feet in a straight line to the point on a 
hill identified as having an elevation of 850 feet;
    (7) Then northwesterly 21,000 feet in a straight line to the point 
lying at the intersection of State Highway 31 and latitude line 39 
degrees 30 minutes on the Libertytown Quadrangle and Union Bridge 
Quadrangle maps;
    (8) Then westerly 15,625 feet along latitude line 39 degrees 30 
minutes to the point of intersection with Copper Mine Road;

[[Page 147]]

    (9) Then northwesterly along Copper Mine Road on the Union Bridge 
Quadrangle map to the point of intersection with longitude line 77 
degrees 15 minutes;
    (10) Then southerly 5,250 feet along longitude line 77 degrees 15 
minutes to the point of intersection with latitude line 39 degrees 30 
minutes on the Union Bridge Quadrangle and Walkersville Quadrangle maps;
    (11) Then southwesterly 46,750 feet in a straight line on the 
Walkersville Quadrangle map to the point of beginning.

[T.D. ATF-140, 48 FR 37374, Aug. 18, 1983]



Sec.  9.64  Dry Creek Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Dry Creek Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Dry Creek Valley viticultural area are six U.S.G.S. 
topographic maps. They are--
    (1) ``Geyserville Quadrangle, California--Sonoma County,'' 7.5 
minute series, 1955 (Photorevised 1975);
    (2) ``Jimtown Quadrangle, California--Sonoma County,'' 7.5 minute 
series, 1955 (Photorevised 1975);
    (3) ``Healdsburg Quadrangle, California--Sonoma County,'' 7.5 minute 
series, 1955 (Photorevised 1980);
    (4) ``Guerneville Quadrangle, California--Sonoma County,'' 7.5 
minute series, 1955;
    (5) ``Cazadero Quadrangle, California--Sonoma County,'' 7.5 minute 
series, 1978; and
    (6) ``Warm Springs Dam Quadrangle (formerly `Skaggs Springs 
Quadrangle'), California--Sonoma County,'' 7.5 minute series, 1978.
    (c) Boundaries. The Dry Creek Valley viticultural area is located in 
north central Sonoma County, California. From the beginning point, lying 
at the intersection of latitude line 38 degrees 45 minutes and the 
northwest corner of Section 5, T. 10 N., R. 10 W. on the ``Geyserville 
Quadrangle'' map, the boundary runs--
    (1) Southeasterly in a straight line approximately 11,000 feet 
(closely following the ridge line) to the northeast corner of Section 9, 
T. 10 N., R. 10 W.;
    (2) Then southerly along the east line of Section 9 to the southeast 
corner thereof;
    (3) Then S. 74 degrees, E. 2,800 feet in a straight line to the 
northeasterly tip of a small unnamed lake;
    (4) Then N. 57 degrees, E. 2,300 feet in a straight line to the 
southeast corner of Section 10, T. 10 N., R. 10 W.;
    (5) Then S. 16 degrees, E. 1,800 feet in a straight line to the 
point on a peak identified as having an elevation of 664 feet;
    (6) Then S. 55 degrees, E. 7,900 feet in a straight line to the most 
northerly point on the northeasterly line of ``Olive Hill'' cemetery 
lying on the easterly side of Canyon Road;
    (7) Then southeasterly along the northeasterly line of ``Olive 
Hill'' cemetery to the most easterly point thereon;
    (8) Then S. 2 degrees, E. 3,100 feet in a straight line to the point 
in the westerly fork of Wood Creek lying at the westerly terminus of a 
dirt road;
    (9) Then southerly 3,000 feet along the west fork of Wood Creek to 
the point lying 400 feet north of the point on a peak identified as 
having an elevation of 781 feet;
    (10) Then southerly 400 feet in a straight line to the point on a 
peak identified as having an elevation of 781 feet;
    (11) Then S. 50\1/2\ degrees, E. 15,500 feet in a straight line to 
the point lying at the intersection of Lytton Creek and the township 
line common to T. 9 N. and T. 10 N. in R. 9 W.;
    (12) Then southerly along the meanders of Lytton Creek to the point 
of intersection with Lytton Springs Road in T. 9 N., R. 9 W.;
    (13) Then easterly along Lytton Springs Road to the point of 
intersection with U.S. Highway 101 (a.k.a. Redwood Highway) on the 
``Jimtown Quadrangle'' map;
    (14) Then southerly along U.S. Highway 101 to the point of 
intersection with an unnamed light duty road (known locally as Chiquita 
Road) on the ``Geyserville Quadrangle'' map;
    (15) Then easterly along the unnamed light duty road to the point of 
intersection with an unnamed heavy duty road (known locally as 
Healdsburg Avenue) on the ``Jimtown Quadrangle'' map;

[[Page 148]]

    (16) Then southerly along the unnamed heavy duty road through the 
town of Healdsburg to the point of intersection with the Russian River 
on the ``Healdsburg Quadrangle'' map;
    (17) Then southerly along the meanders of the Russian River to the 
confluence of Dry Creek;
    (18) Then west-southwesterly 1,300 feet in a straight line to an 
unnamed light duty road (known locally as Foreman Lane);
    (19) Then westerly along the unnamed light duty road, crossing West 
Dry Creek Road and passing Felta School, to the point of intersection 
with Felta Creek on the ``Guerneville Quadrangle'' map;
    (20) Then southwesterly 18,000 feet along the meanders of Felta 
Creek to the point lying at the intersection of three springs in T. 8 
N., R. 10 W., approximately 300 feet east from the word ``Springs'';
    (21) Then S. 58 degrees, W. 15,000 feet in a straight line to the 
southwest corner of Section 9, T. 8 N., R. 10 W.;
    (22) Then northerly along the west line of Sections 9 and 4, T. 8 
N., R. 10 W., continuing along the west line of Section 33, T. 9 N., R. 
10 W. to the northwest corner thereof;
    (23) Then westerly along the south line of Sections 29 and 30, T. 9 
N., R. 10 W. to the southwest corner of Section 30 on the ``Cazadero 
Quadrangle'' map;
    (24) Then northerly along the west line of Sections 30 and 19, T. 9 
N., R. 10 W. to the northwest corner of Section 19;
    (25) Then westerly along the south line of Section 13, T. 9 N., R. 
11 W. to the southwest corner thereof;
    (26) Then southwesterly 14,200 feet in a straight line to the 
northeast corner of Section 20, T. 9 N., R. 11 W.;
    (27) Then westerly along the north line of Section 20 to the 
northwest corner thereof;
    (28) Then northerly along the east line of Sections 18, 7, and 6, T. 
9 N., R. 11 W., continuing along the east line of Sections 31, 30, 19, 
18, 7, and 6, T. 10 N., R. 11 W. to the point of intersection with 
latitude line 38 degrees 45 minutes on the ``Warm Springs Dam 
Quadrangle'' map; and
    (29) Then easterly along latitude line 38 degrees 45 minutes to the 
point of beginning on the ``Geyserville Quadrangle'' map.

[T.D. ATF-137, 48 FR 35397, Aug. 4, 1983, as amended by T.D. ATF-468, 66 
FR 50565, Oct. 4, 2001]



Sec.  9.65  North Fork of Roanoke.

    (a) Name. The name of the viticultural area described in this 
section is ``North Fork of Roanoke.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the North Fork of Roanoke viticultural area are six 
U.S.G.S. Virginia, 7.5 minute series maps. They are:
    (1) McDonalds Mill Quadrangle, 1965;
    (2) Glenvar Quadrangle, 1965;
    (3) Elliston Quadrangle, 1965;
    (4) Ironto Quadrangle, 1965;
    (5) Blacksburg Quadrangle, 1965; and
    (6) Newport Quadrangle, 1965.
    (c) Boundaries. The North Fork of Roanoke viticultural area is 
located in parts of Roanoke and Montgomery Counties in southern 
Virginia.
    (1) The point of the beginning is in the north at the intersection 
of State Routes 785 and 697 in Roanoke County.
    (2) Then the boundary follows State Route 697 northeast over 
Crawford Ridge to the intersection at State Route 624.
    (3) Then the boundary turns southwest on State Route 624 along the 
boundary of the Jefferson National Forest and then continues across the 
Montgomery County line to U.S. 460 (business).
    (4) Then the boundary follows U.S. Route 460 (business) south 
through the town of Blacksburg.
    (5) Then the boundary continues on U.S. Route 460 (bypass) to the 
intersection of U.S. Route 460 East, where it turns east for 
approximately one mile to the intersection of U.S. Interstate Highway 81 
at Interchange 37.
    (6) Then the boundary continues northeast on Interstate Highway 81 
to its intersection with State Route 603 at interchange 38.
    (7) Then the boundary continues northwest on State Route 603 to its 
intersection with State Route 629.
    (8) Then the boundary follows State Route 629 (which later becomes 
State Route 622 north of Brandshaw Creek) 2 miles across the Roanoke 
County line to where it intersects the Chesapeake

[[Page 149]]

and Potomac Telephone Company right-of-way.
    (9) Then the boundary turns northwest along the C & P right-of-way 
over Pearis Mountain to the point where the right-of-way intersects 
State Route 785, one quarter mile northeast of the intersections of 
State Routes 785 and 697.
    (10) Then the boundary follows State Route 784 back to the beginning 
point.

[T.D. ATF-129, 48 FR 16250, Apr. 15, 1983, as amended by T.D. ATF-249, 
52 FR 5958, Feb. 27, 1987]



Sec.  9.66  Russian River Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Russian River Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Russian River Valley viticultural area are 11 United 
States Geological Survey 1:24,000 Scale topographic maps. They are 
titled:
    (1) Healdsburg, California Quadrangle--Sonoma Co., 7.5 Minute 
Series, edition of 1993;
    (2) Guerneville, California Quadrangle--Sonoma Co., 7.5 Minute 
Series, edition of 1993;
    (3) Cazadero, California Quadrangle--Sonoma Co., 7.5 Minute Series, 
edition of 1978;
    (4) Duncans Mills California Quadrangle--Sonoma Co., 7.5 Minute 
Series, edition of 1979;
    (5) Camp Meeker, California Quadrangle--Sonoma Co., 7.5 Minute 
Series, edition of 1995;
    (6) Valley Ford, California Quadrangle, 7.5 Minute Series, edition 
of 1954; photorevised 1971;
    (7) Two Rock, California Quadrangle, 7.5 Minute Series, edition of 
1954; photorevised 1971;
    (8) Sebastopol, California Quadrangle--Sonoma Co., 7.5 Minute 
Series, edition of 1954; photorevised 1980;
    (9) Santa Rosa, California Quadrangle--Sonoma Co., 7.5 Minute 
Series, edition of 1954; and
    (10) Mark West Springs, California Quadrangle, 7.5 Minute Series, 
edition of 1998, and
    (11) Jimtown, California Quadrangle--Sonoma Co., 7.5 Minute Series, 
edition of 1993.
    (c) Boundaries. The Russian River Valley viticultural area is 
located in Sonoma County, California.
    (1) Starting point Healdsburg map-Healdsburg Avenue Bridge over the 
Russian River at Healdsburg. Proceed south along Russian River to the 
point where Russian River and Dry Creek converge, from this point 
proceed west in a straight line to Forman Lane.
    (2) Proceed west along Foreman Lane to where it crosses Westside 
Road and becomes Felta School Road.
    (3) Proceed west on Felta School Road to the point where it crosses 
Felta Creek.
    (4) Proceed 18000[min] up Felta Creek to its headwaters as shown on 
the Guerneville, map as ``Springs.''
    (5) Proceed southwest in a straight line 58 degrees W 27000[min] to 
an intersection with Hulbert Creek on the Cazadero map.
    (6) Proceed south and southeast along Hulbert Creek to the point 
where it intersects California Hwy 116 on the Duncan Mills map.
    (7) Proceed in a westerly direction along California Hwy 116 to 
Monte Rio where it intersects the Bohemian Hwy.
    (8) Proceed southeast along the Bohemian Highway, crossing over the 
Camp Meeker map, to the town of Freestone, where the highway intersects 
at BM 214 with an unnamed medium-duty road (known locally as Bodega 
Road, section 12, T6N, R10W, on the Valley Ford map).
    (9) Proceed 0.9 mile northeast on Bodega Road to its intersection, 
at BM 486, with Jonvive Road to the north and an unnamed light duty road 
to the south, (known locally as Barnett Valley Road, T6N, R9W, on the 
Camp Meeker map).
    (10) Proceed 2.2 miles south, and then east, on Barnett Valley Road, 
crossing over the Valley Ford map, to its intersection with Burnside 
Road in section 17, T6N, R9W, on the Two Rock map.
    (11) Proceed 3.3 miles southeast on Burnside Road to its 
intersection with an unnamed medium duty road at BM 375, T6N, R9W, on 
the Two Rock map.
    (12) Proceed 0.6 mile straight southeast to an unnamed 610-foot 
elevation peak, 1.5 miles southwest of Canfield School, T6N, R9W, on the 
Two Rock map.

[[Page 150]]

    (13) Proceed 0.75 mile straight east-southeast to an unnamed 641-
foot elevation peak, 1.4 miles south-southwest of Canfield School, T6N, 
R9W, on the Two Rock map.
    (14) Proceed 0.85 mile straight northeast to the intersection with 
an unnamed intermittent stream and Canfield Road; continue 0.3 mile 
straight in the same northeast line of direction to its intersection 
with the common boundary of Ranges 8 and 9, just west of an unnamed 
unimproved dirt road, T6N, on the Two Rock map.
    (15) Proceed 1.8 miles straight north along the common Range 8 and 9 
boundary line to its intersection with Blucher Creek, T6N, on the Two 
Rock map.
    (16) Proceed 1.25 miles generally northeast along Blucher Creek to 
its intersection with Highway 116, also known as Gravenstein Highway, in 
section 18, T6N, R8W, on the Two Rock map.
    (17) Proceed 0.2 mile straight southeast along Highway 116 to its 
intersection with an unnamed light duty road to the north in section 18, 
T6N, R8W, on the Two Rock map.
    (18) Proceed 0.1 mile straight northwest along the unnamed light 
duty road to its intersection with an unnamed medium-duty road to the 
east, (known as Todd Road in section 18, T6N, R8W, on the Two Rock map).
    (19) Proceed 4.8 miles east, north, and east again along Todd Road, 
a medium-duty road, crossing over the Sebastopol map and then passing 
over U.S. Highway 101 and continuing straight east 0.1 mile to Todd 
Road's intersection with Santa Rosa Avenue, a primary road that is 
generally parallel to U.S. Highway 101, in section 2, T6N, R8W, on the 
Santa Rosa map.
    (20) Proceed 5.8 miles generally north along Santa Rosa Avenue, 
which becomes Mendocino Avenue, to its intersection with an unnamed 
secondary road, known locally as Bicentennial Way, 0.3 mile north-
northwest of BM 161 on Mendocino Avenue, section 11, T7N, R8W, on the 
Santa Rosa map.
    (21) Proceed 2.5 miles straight north, crossing over the 906-foot 
elevation peak in section 35 of the Santa Rosa map, to its intersection 
with Mark West Springs Road and the meandering 280-foot elevation in 
section 26, T8N, R8W, of the Mark West Springs map.
    (22) Proceed 4.8 miles north-northwest along Mark West Springs Road, 
which becomes Porter Creek Road, to its intersection with Franz Valley 
Road, a light-duty road to the north of Porter Creek Road, in section 
12, T8N, R8W, on the Mark West Springs map.
    (23) Proceed in a northerly direction along Franz Vally Road to the 
northerly most crossing of Franz Creek.
    (24) Proceed west along Franz Creek until it intersects the line 
separating Section 21 and Section 22.
    (25) Proceed south on this line separating Section 21 and 22 to the 
corner common to Section 21 and 22 and Section 27 and 28.
    (26) Proceed west from the common corner of Section 21 and 22 and 27 
and 28 and in a straight line to the peak of Chalk Hill on the 
Healdsburg map.
    (27) Proceed west from the peak of Chalk Hill in a straight line to 
the point where Brooks Creek joins the Russian River.
    (28) Proceed north west in a straight line 8000[foot] to a peak 
marked 772[foot] elv. on the Jimtown map.
    (29) Proceed north west in a straight line from hill top 772[foot] 
elv. to hill top 596[foot] elv.
    (30) Proceed north west in a straight line from hill top 596[foot] 
elv. to hill top 516[foot] elv.
    (31) Proceed north west in a straight line from hill top 516[foot] 
elv. to hill top 530[foot] elv.
    (32) Proceed west in a straight line from hill top 530[foot] elv. to 
hill top 447[foot] elv.
    (33) Proceed west in a straight line from hill top 447[foot] elv. to 
the point where Alexander Valley Road meets Healdsburg Avenue.
    (34) Proceed south along Healdsburg Avenue through the city of 
Healdsburg on the Healdsburg map to the point where it crosses the 
Russian River at the point of beginning.

[T.D. ATF-159, 48 FR 48813, Oct. 21, 1983, as amended by T.D. ATF-249, 
52 FR 5959, Feb. 27, 1987; T.D. TTB-7, 68 FR 67370, Dec. 2, 2003; T.D. 
TTB-32, 70 FR 53299, Sept. 8, 2005]

[[Page 151]]



Sec.  9.67  Catoctin.

    (a) Name. The name of the viticultural area described in this 
section is ``Catoctin.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Catoctin viticultural area are 12 U.S.G.S. maps in the 
scale 1:24,000. They are--
    (1) ``Point of Rocks Quadrangle, Maryland--Virginia,'' 7.5 minute 
series, 1970;
    (2) ``Buckeystown Quadrangle, Maryland,'' 7.5 minute series, 1952 
(Photorevised 1971);
    (3) ``Frederick Quadrangle, Maryland,'' 7.5 minute series, 1953 
(Photorevised 1980);
    (4) ``Catoctin Furnace Quadrangle, Maryland,'' 7.5 minute series, 
1953 (Photorevised 1979);
    (5) ``Blue Ridge Summit Quadrangle, Maryland--Pennsylvania,'' 7.5 
minute series, 1953 (Photorevised 1971);
    (6) ``Emmitsburg Quadrangle, Maryland--Pennsylvania,'' 7.5 minute 
series, 1953 (Photorevised 1971);
    (7) ``Smithsburg Quadrangle, Maryland--Pennsylvania,'' 7.5 minute 
series, 1953 (Photorevised 1971);
    (8) ``Myersville Quadrangle, Maryland,'' 7.5 minute series, 1953 
(Photorevised 1971);
    (9) ``Funkstown Quadrangle, Maryland,'' 7.5 minute series, 1953 
(Photorevised 1971);
    (10) ``Keedysville Quadrangle, Maryland--West Virginia,'' 7.5 minute 
series, 1978;
    (11) ``Harpers Ferry Quadrangle, Virginia--Maryland--West 
Virginia,'' 7.5 minute series, 1969; and
    (12) ``Charles Town Quadrangle, West Virginia--Virginia--Maryland,'' 
7.5 minute series, 1978;
    (13) ``Middletown Quadrangle, Maryland,'' 7.5 minute series, 1953 
(photorevised 1979);
    (c) Boundaries. The Catoctin viticultural area is located in western 
Maryland and encompasses parts of Frederick and Washington Counties. 
From the beginning point at the point where U.S. Highway 15 crosses the 
Potomac River and enters the land mass of Maryland on the ``Point of 
Rocks Quadrangle'' map, the boundary runs--
    (1) Northerly 1,100 feet in a straight line to the point of 
intersection with a 500-foot contour line;
    (2) Then northeasterly along the meanders of the 500-foot contour 
line on the ``Point of Rocks Quadrangle,'' ``Buckeystown Quadrangle,'' 
``Frederick Quadrangle,'' ``Catoctin Furnace Quadrangle,'' ``Blue Ridge 
Summit Quadrangle,'' and ``Emmitsburg Quadrangle'' maps to the point of 
intersection with the Maryland--Pennsylvania State line on the 
``Emmitsburg Quadrangle'' map;
    (3) Then west along the Maryland-Pennsylvania State line on the 
``Emmitsburg Quadrangle,'' ``Blue Ridge Summit Quadrangle,'' and 
``Smithsburg Quadrangle'' maps to the point of intersection with the 
first 800-foot contour line lying west of South Mountain on the 
``Smithsburg Quadrangle'' map;
    (4) Then southwesterly along the meanders of the 800-foot contour 
line on the ``Smithburg Quadrangle,'' ``Myersville Quadrangle,'' 
``Funkstown Quadrangle,'' and ``Keedysville Quadrangle'' maps to the 
point of intersection with an unnamed light duty road (known locally as 
Clevelandville Road) north of the town of Clevelandville on the 
``Keedysville Quadrangle'' map;
    (5) Then southerly along the unnamed light duty road to the point of 
intersection with Reno Monument Road;
    (6) Then southwesterly 13,500 feet in a straight line to the point 
lying at the intersection of Highway 67 and Millbrook Road;
    (7) Then westerly along Millbrook Road to the point of intersection 
with Mount Briar Road;
    (8) Then northerly along Mount Briar Road to the point of 
intersection with a 500-foot contour line;
    (9) Then northerly along the 500-foot contour line to the point of 
intersection with Red Hill Road;
    (10) Then southerly along the 500-foot contour line to the point of 
intersection with Porterstown Road;
    (11) Then south-southwesterly 29,000 feet in a straight line to the 
most eastern point on the boundary line of the Chesapeake and Ohio Canal 
National Historical Park lying north of the town of Dargan;

[[Page 152]]

    (12) Then southwesterly 7,500 feet in a straight line to the point 
of the ``Harpers Ferry Quadrangle'' map lying approximately 600 feet 
northwest of Manidokan Camp at the confluence of an unnamed stream and 
the Potomac River; and
    (13) Then easterly along the meanders of the Potomac River on the 
``Harpers Ferry Quadrangle,'' ``Charles Town Quadrangle,'' and ``Point 
of Rocks Quadrangle'' maps to the point of beginning.

[T.D. ATF-154, 48 FR 46523, Oct. 13, 1983, as amended by T.D. ATF-249, 
52 FR 5959, Feb. 27, 1987]



Sec.  9.68  Merritt Island.

    (a) Name. The name of the viticultural area described in this 
section is ``Merritt Island.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Merritt Island viticultural area are two U.S.G.S. 
maps, 7.5 minute series. They are entitled:
    (1) ``Clarksburg Quadrangle, California,'' 1967 (Photo revised 
1980); and
    (2) ``Courtland Quadrangle, California,'' 1978.
    (c) Boundaries. The Merritt Island viticultural area is located in 
Yolo County, California, six miles south of the City of Sacramento. The 
boundaries of the Merritt Island viticultural area, using landmarks and 
points of reference found on the appropriate U.S.G.S. maps, are as 
follows:
    (1) Starting at the most southernly point, the intersection of 
Sutter Slough with the Sacramento River.
    (2) Then west along the course of Sutter Slough for 0.54 miles until 
it intersects Elk Slough.
    (3) Then northeast along the course of Elk Slough for 9.58 miles to 
the community of Clarksburg and the intersection of Sacramento River.
    (4) Then southeasterly along the course of the Sacramento River for 
7.8 miles to the beginning point.

[T.D. ATF-134, 48 FR 22146, May 17, 1983, as amended by T.D. ATF-249, 52 
FR 5959, Feb. 27, 1987]



Sec.  9.69  Yakima Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Yakima Valley.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Yakima Valley viticultural area are two U.S.G.S. maps. They are 
entitled:
    (1) ``Walla Walla, Washington,'' scaled 1:250,000, edition of 1953, 
limited revision 1963; and
    (2) ``Yakima, Washington,'' scaled 1:250,000, edition of 1958, 
revised 1971.
    (c) Boundaries. The Yakima Valley viticultural area is located in 
Benton and Yakima Counties, Washington. The beginning point is found on 
the ``Yakima, Washington,'' U.S.G.S. map at the Wapato Dam located on 
the Yakima River.
    (1) Then east following the crest of the Rattlesnake Hills across 
Elephant Mountain, Zillah Peak, High Top (elevation 3031 feet), and an 
unnamed mountain (elevation 3629 feet) to the Bennett Ranch;
    (2) Then due east approximately 0.2 mile to the boundary of the 
Hanford Atomic Energy Commission Works;
    (3) Then southeast following the boundary of the Hanford AEC Works 
along the Rattlesnake Hills to the Yakima River;
    (4) Then southeast across the top of Red Mountain to the peak of 
Badger Mountain;
    (5) Then due south for approximately 4.9 miles to the 1000 foot 
contour line immediately south of the Burlington Northern Railroad 
(indicated on map as the Northern Pacific Railroad);
    (6) Then west following the 1000 foot contour line to its 
intersection with U.S. Highway 97 immediately west of Hembre Mountain;
    (7) Then west following the Toppenish Ridge, across an unnamed 
mountain (elevation 2172 feet), an unnamed mountain (elevation 2363 
feet), to the peak of Toppenish Mountain (elevation 3609 feet);
    (8) Then northwest in straight line for approximately 9.3 miles to 
the lookout tower at Fort Simcoe Historical State Park;
    (9) Then north in a straight line for approximately 11.7 miles to an 
unnamed peak, (elevation 3372 feet); and
    (10) Then east following Ahtanum Ridge, crossing unnamed peaks of 
2037 feet elevation, 2511 feet elevation, 2141

[[Page 153]]

feet elevation, to the Wapato Dam at the point of beginning.

[T.D. ATF-128, 48 FR 14375, Apr. 4, 1983]



Sec.  9.70  Northern Sonoma.

    (a) Name. The name of the viticultural area described in this 
section is ``Northern Sonoma.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Northern Sonoma viticultural area are the U.S.G.S. Topographical Map 
of Sonoma County, California, scale 1:100,000, dated 1970, the Asti 
Quadrangle, California, 7.5 minute series (Topographic) Map, dated 1959, 
photorevised 1978, and the Jimtown Quadrangle, California-Sonoma County, 
7.5 Minute series (Topographic) Map, dated 1955, photorevised 1975.
    (c) Boundary. The Northern Sonoma Viticultural area is located in 
Sonoma County, California. The boundary description in paragraphs (c)(1) 
through (c)(28) of this section includes (in parentheses) the local 
names of roads which are not identified by name on the map.
    (1) On the U.S.G.S. Topographical Map of Sonoma County, California, 
the beginning point is the point, in the town of Monte Rio, at which a 
secondary highway (Bohemian Highway) crosses the Russian River.
    (2) The boundary follows this secondary highway (Bohemian Highway) 
southeasterly across the Russian River, along Dutch Bill Creek, through 
the towns of Camp Meeker, Occidental, and Freestone, then northeasterly 
to the point at which it is joined by State Highway 12.
    (3) The boundary follows State Highway 12 through the town of 
Sebastopol to the point, near a bench mark at elevation 96 feet, at 
which it intersects a northbound secondary highway (Fulton Road) leading 
toward the town of Fulton.
    (4) The boundary follows this secondary highway (Fulton Road) north 
to the town of Fulton where it intersects an east-west secondary highway 
(River Road).
    (5) The boundary follows this secondary highway (River Road)--
    (i) East past U.S. Highway 101 (where the name of this secondary 
highway changes to Mark West Springs Road),
    (ii) Easterly, then northerly to the town of Mark West Springs 
(where the name of this secondary highway changes to Porter Road),
    (iii) Easterly to the town of Petrified Forest (where the name of 
this secondary highway changes to Petrified Forest Road), and
    (iv) Northeasterly to the Sonoma County-Napa County line.
    (6) The boundary follows the Sonoma County-Napa County line 
northerly to the Sonoma County-Lake County line.
    (7) The boundary follows the Sonoma County-Lake County line 
northwesterly to the section line on the north side of Section 11, 
Township 10 North, Range 8 West.
    (8) The boundary follows this section line west to the northwest 
corner of Section 9, Township 10 North, Range 8, West.
    (9) The boundary follows the section line south to the southwest 
corner of Section 4, Township 9 North, Range 8, West.
    (10) The boundary proceeds northerly along the western lines of 
section 4, of Township 9 North, Range 8 West, and sections 33, 28, 21, 
16, and 9 of Township 10 North, Range 8 West of the Jimtown Quadrangle 
map.
    (11) The boundary proceeds westerly along the northern lines of 
sections 8 and 7, Township 10 North, Range 8 West and section 12, 
Township 10 North, Range 9 West to the southeastern corner of section 2, 
Township 10 North, Range 9 West.
    (12) The boundary proceeds northwesterly in a straight line to the 
eastern line of section 3 at 38 degrees 45 minutes latitude, Township 10 
North, Range 9 West.
    (13) The boundary proceeds westerly along latitude line 38 degrees 
45 minutes to the point lying at 122 degrees 52 minutes 30 seconds 
longitude.
    (14) The boundary proceeds northwesterly in a straight line to the 
southeast corner of section 4, Township 11 North, Range 10 West, on the 
Asti, Quadrangle map.
    (15) The boundary proceeds northeasterly in a straight line to the 
southeast corner of section 34, Township 12 North, Range 10 West.
    (16) The boundary proceeds north along the east boundary of section 
34,

[[Page 154]]

Township 12 North, Range 10 West on the U.S.G.S. Topographical Map of 
Sonoma County, California, to the Sonoma County-Mendocino County line.
    (17) The boundary proceeds along the Sonoma County-Mendocino County 
line west then south to the southwest corner of section 34, Township 12 
North, Range 11 West.
    (18) The boundary proceeds in a straight line east southeasterly to 
the southeast corner of section 2, Township 11 North, Range 11 West.
    (19) The boundary proceeds in a straight line south southeasterly to 
the southeast corner of section 24, Township 11 North, Range 11 West.
    (20) The boundary proceeds in a straight line southeasterly across 
sections 30, 31, and 32 in Township 11 North, Range 10 West, to the 
point at 38 degrees 45 minutes North latitude parallel and 123 degrees 
00 minutes East longitude in section 5, Township 10 North, Range 10 
West.
    (21) The boundary proceeds along this latitude parallel west to the 
west line of section 5, Township 10 North, Range 11 West.
    (22) The boundary proceeds along the section line south to the 
southeast corner of section 18, Township 9 North, Range 11 West.
    (23) The boundary proceeds in a straight line southwesterly 
approximately 5 miles to the peak of Big Oat Mountain, elevation 1,404 
feet.
    (24) The boundary proceeds in a straight line southerly 
approximately 2\3/4\ miles to the peak of Pole Mountain, elevation 2,204 
feet.
    (25) The boundary proceeds in a straight line southeasterly 
approximately 4\3/4\ miles to the confluence of Austin Creek and the 
Russian River.
    (26) The boundary proceeds along the Russian River northeasterly, 
then southeasterly to the beginning point.

[T.D. ATF-204, 50 FR 20562, May 17, 1985, as amended by T.D. ATF-233; 51 
FR 30354, Aug. 26, 1986; T.D. ATF-300, 55 FR 32402, Aug. 9, 1990]



Sec.  9.71  Hermann.

    (a) Name. The name of the viticultural area described in this 
section is ``Hermann.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Hermann viticultural area are six U.S.G.S. Missouri 
Quadrangle maps, 7.5 minute series. They are entitled:
    (1) Hermann (1974).
    (2) Berger (1974).
    (3) Gasconade (1974).
    (4) Pershing (1974).
    (5) Swiss (1973).
    (6) Dissen (1973).
    (c) Boundaries. The Hermann viticultural area is located in central 
Missouri along and south of the Missouri River, in the northern portions 
of Gasconade and Franklin Counties. The boundaries of the Hermann 
viticultural area, using landmarks and points of reference found on the 
appropriate U.S.G.S. maps, are as follows:
    (1) Starting at the intersection of the Gasconade River with the 
Missouri River.
    (2) Then continuing east and northeast approximately 16.5 miles 
along the Missouri River Pacific Railroad, as it parallels the Missouri 
River, to the Gasconade/Franklin County line.
    (3) Then continuing along the Missouri Pacific Railroad southeast 
approximately 8.5 miles to the intersection Big Berger Creek.
    (4) Then southwest along the winding course of Big Berger Creek for 
approximately 20 miles (eight miles due southwest) to Township line 
T.44/45N.
    (5) Then west along the T.44/45N. line approximately 15.5 miles to 
the intersection of First Creek.
    (6) Then north and northwest along the course of First Creek 
approximately 13.7 miles (6.5 miles straight northwest) to the 
intersection of the Gasconade River.
    (7) Then northeast along the course of the Gasconade River 
approximately 3.8 miles to the beginning point.

[T.D. ATF-136, 48 FR 37372, Aug. 18, 1983, as amended by T.D. ATF-249, 
52 FR 5959, Feb. 27, 1987]



Sec.  9.72  Southeastern New England.

    (a) Name. The name of the viticultural area described in this 
section is ``Southeastern New England.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Southeastern New England

[[Page 155]]

viticultural area are three U.S.G.S. maps. They are entitled:
    (1) ``Boston, Mass.; N.H.; Conn.; R.I.; Maine'', scaled 1:250,000, 
edition of 1956, revised 1970;
    (2) ``Hartford, Conn.; N.Y.; N.J.; Mass.'', scaled 1:250,000, 
edition of 1962, revised 1975; and
    (3) ``Providence, R.I.; Mass.; Conn.; N.Y.'', scaled 1:250,000, 
edition of 1947, revised 1969.
    (c) Boundaries. The Southeastern New England viticultural area is 
located in the counties of New Haven, New London, and Middlesex in 
Connecticut; in the counties of Bristol, Newport, Providence, and 
Washington, in Rhode Island; and in the counties of Barnstable, Bristol, 
Dukes, Nantucket, Norfolk, and Plymouth in Massachusetts. The beginning 
point is found on the ``Hartford'' U.S.G.S. map in New Haven Harbor;
    (1) Then north following the Quinnipiac River to U.S. Interstate 91;
    (2) Then east following U.S. Interstate 91 to Connecticut Highway 
80;
    (3) Then east following Connecticut Highway 80 to Connecticut 
Highway 9 near Deep River;
    (4) Then north following Connecticut Highway 9 to Connecticut 
Highway 82;
    (5) Then north, east, south and east following Connecticut Highway 
82 and 182 to Connecticut Highway 2 in Norwich;
    (6) Then east following Connecticut Highway 2 to Connecticut Highway 
165;
    (7) Then east following Connecticut and Rhode Island Highway 165 to 
Interstate Highway 95 near Millville;
    (8) Then north following Interstate Highway 95 to the Kent County-
Washington County boundary;
    (9) Then east following the Kent County-Washington County boundary 
into Narragansett Bay;
    (10) Then north through Narragansett Bay, the Providence River, and 
the Blackstone River to the Rhode Island-Massachusetts State boundary;
    (11) Then east and south following the Rhode Island-Massachusetts 
State boundary to the Norfolk-Bristol (Mass.) County boundary;
    (12) Then northeast following the Norfolk-Bristol (Mass.) County 
boundary to the Amtrak right-of-way (Penn Central on map) northeast of 
Mansfield;
    (13) Then north following the Amtrak right-of-way to the Neponset 
River immediately east of the Norwood Memorial Airport;
    (14) Then northeast following the Neponset River into Dorchester 
Bay;
    (15) Then east following the Norfolk-Suffolk County boundary, and 
the Plymouth-Suffolk County boundary into Massachusetts Bay;
    (16) Then returning to the point of beginning by way of 
Massachusetts Bay, the Atlantic Ocean, Block Island Sound and Long 
Island Sound; and including all of the offshore islands in Norfolk, 
Plymouth, Barnstable, Nantucket, Dukes, and Bristol Counties, 
Massachusetts; all offshore islands in Rhode Island; and all offshore 
islands in Connecticut east of the Quinnipiac River.

[T.D. ATF-169, 49 FR 11830, Mar. 28, 1984]



Sec.  9.73  Martha's Vineyard.

    (a) Name. The name of the viticultural area described in this 
section is ``Martha's Vineyard.''
    (b) Approved maps. The approved map for determining the boundary of 
the Martha's Vineyard viticultural area is the U.S.G.S. map, 
``Providence, R.I.; Mass.; Conn.; N.Y.;'' scaled 1:250,000, edition of 
1947 revised 1969.
    (c) Boundaries. The Martha's Vineyard viticultural area is located 
entirely within Dukes County, Massachusetts. The boundary of the 
Martha's Vineyard viticultural area is the shoreline of the islands 
named ``Martha's Vineyard'' and ``Chappaquiddic Island'' on the 
``Providence'' U.S.G.S. map, and the viticultural area comprises the 
entire area of the islands.

[T.D. ATF-193, 50 FR 256, Jan 3, 1985]



Sec.  9.74  Columbia Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Columbia Valley.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Columbia Valley viticultural area are nine 1:250,000 scale U.S.G.S. 
maps. They are entitled:

[[Page 156]]

    (1) ``Concrete, Washington, U.S.; British Columbia, Canada,'' 
edition of 1955, limited revision 1962;
    (2) ``Okanogan, Washington,'' edition of 1954, limited revision 
1963;
    (3) ``Pendleton, Oregon, Washington,'' edition of 1953, revised 
1973;
    (4) ``Pullman, Washington, Idaho,'' edition of 1955, revised 1974;
    (5) ``Ritzville, Washington,'' edition of 1953, limited revision 
1965;
    (6) ``The Dalles, Oregon, Washington,'' edition of 1953, revised 
1971;
    (7) ``Walla Walla, Washington, Oregon,'' edition of 1953, limited 
revision 1963;
    (8) ``Wenatchee, Washington,'' edition of 1957, revised 1971; and
    (9) ``Yakima, Washington,'' edition of 1958, revised 1971.
    (c) Boundaries. The Columbia Valley viticultural area is located in 
Adams, Benton, Chelan, Columbia, Douglas, Ferry, Franklin, Garfield, 
Grant, Kittitas, Klickitat, Lincoln, Okanogan, Stevens, Walla Walla, 
Whitman, and Yakima Counties, Washington, and in Gilliman, Morrow, 
Sherman, Umatilla, and Wasco Counties, Oregon. The beginning point is 
found on ``The Dalles'' U.S.G.S. map at the confluence of the Klickitat 
and Columbia Rivers:
    (1) Then north and east following the Klickitat and Little Klickitat 
Rivers to U.S. Highway 97 northeast of Goldendale;
    (2) Then north following U.S. Highway 97 to the 1,000[foot] contour 
line southwest of Hembre Mountain;
    (3) Then west following the Toppenish Ridge, across unnamed 
mountains of 2,172[foot] and 2,363[foot] elevation, to the peak of 
Toppenish Mountain, elevation 3,609[foot];
    (4) Then northwest in a straight line for approximately 11.3 miles 
to the intersection of Agency Creek with the township line between R. 15 
E. and R. 16 E.;
    (5) Then north following the township line between R. 15 E. and R. 
16 E. to the Tieton River;
    (6) Then northeast following the Tieton River to the confluence with 
the Naches River;
    (7) Then east in a straight line for approximately 15.3 miles to the 
intersection of the 46[deg]45[min] latitude line with the Yakima River;
    (8) Then north following the Yakima River to the confluence with the 
North Branch Canal approximately one mile northwest of Throp;
    (9) Then north, east, and southeast following the North Branch Canal 
to its intersection with U.S. Interstate 90 in Johnson Canyon;
    (10) Then east following U.S. Interstate 90 to the Columbia River;
    (11) Then north following the Columbia River to the township line 
between T. 21 N. and T. 22 N. immediately north of the Rock Island Dam;
    (12) Then west following the township line between T. 21 N. and T. 
22 N. for approximately 7.1 miles (from the west shore of the Columbia 
River) to the 2,000[foot] contour line immediately west of Squilchuck 
Creek;
    (13) Then north and west following the 2,000[foot] contour line to 
the township line between R. 18 E. and R. 19 E. west of the landing area 
at Cashmere-Dryden;
    (14) Then north following the township line between R. 18 E. and R. 
19 E. for approximately 4.4 miles to the 2,000[foot] contour line in 
Ollala Canyon;
    (15) Then east, north, and northwest following the 2,000[foot] 
contour line to the township line between R. 19 E. and R. 20 E. 
immediately west of Ardenoir;
    (16) Then north following the township line between R. 19 E. and R. 
20 E for approximately 2.8 miles to the 2,000[foot] contour line 
immediately north of the secondary road;
    (17) Then southwest and north following the 2,000[foot] contour line 
to the township line between T. 28 N. and T. 29 N.;
    (18) Then east following the township line between T. 28 N. and T. 
29 N. for approximately 2.1 miles to the 2,000[foot] contour line 
immediately east of Lake Chelan;
    (19) Then southeast and north following the 2,000[foot] contour line 
(beginning in the ``Wenatchee'' U.S.G.S. map, passing through the 
``Ritzville'' and ``Okanogan'' maps, and ending in the ``Concrete'' map) 
to the point where the 2,000[foot] contour line intersects the township 
line between T. 30 N. and T. 31 N. immediately west of Methow;
    (20) Then east following the township line between T. 30 N. and T. 
31 N. for

[[Page 157]]

approximately 20.2 miles to the 2,000[foot] contour line east of Monse;
    (21) Then south and east following the 2,000[foot] contour line to 
the township line between T. 30 N. and T. 31 N. west of Alkali Lake;
    (22) Then northeast in a straight line for approximately 10.7 miles 
to the point of intersection of the 2,000[foot] contour line with Coyote 
Creek;
    (23) Then east, north, south, east, and north following the 
2,000[foot] contour line to the township line between T. 29 N. and T. 30 
N. immediately west of the Sanpoil River;
    (24) Then east following the township line between T. 29 N. and T. 
30 N. for approximately 2.3 miles to the 2,000[foot] contour line 
immediately east of the Sanpoil River;
    (25) Then south, east, and north following the 2,000[foot] contour 
line to the township line between T. 29 N. and T 30 N. at Ninemile Flat;
    (26) Then east following the township line between T. 29 N. and T. 
30 N. for approximately 10.7 miles to the township line between R. 36 E. 
and R. 37 E.;
    (27) Then south following the township line between R. 36 N. and R. 
37 E. to the township line between T. 26 N. and T. 27 N.;
    (28) Then west following the township line between T. 26 N. and T. 
27 N. to Banks Lake;
    (29) Then south following Banks Lake to Dry Falls Dam;
    (30) Then west and south following U.S. Highway 2 and Washington 
Highway 17 to the intersection with Washington Highway 28 in Soap Lake;
    (31) Then southeast in a straight line for approximately 4.7 miles 
to the source of Rocky Ford Creek near a fish hatchery;
    (32) Then south following Rocky Ford Creek and Moses Lake to U.S. 
Interstate 90 southwest of the town of Moses Lake;
    (33) Then east following U.S. Interstate 90 to the Burlington 
Northern (Northern Pacific) Railroad right-of-way at Raugust Station;
    (34) Then south following the Burlington Northern (Northern Pacific) 
Railroad right-of-way to Washington Highway 260 in Connell;
    (35) Then east following Washington Highway 260 through Kahlotus to 
the intersection with Washington Highway 26 in Washtucna;
    (36) Then east following Washington Highways 26 and 127 through La 
Crosse and Dusty to the intersection with U.S. Highway 195 at Colfax;
    (37) Then south following U.S. Highway 195 to the Washington-Idaho 
State boundary;
    (38) Then south following the Washington-Idaho State boundary to the 
Snake River and continuing along the Snake River to the confluence with 
Asotin Creek;
    (39) Then west following Asotin Creek and Charley Creek to the 
township line between R. 42 E. and R. 43 E.;
    (40) Then north following the township line between R. 42 E. and R. 
43 E. to Washington Highway 128 in Peola;
    (41) Then north following Washington Highway 128 to the intersection 
with U.S. Highway 12 in Pomeroy;
    (42) Then west following U.S. Highway 12 for approximately 5 miles 
to the intersection with Washington Highway 126 [in Zumwalt];
    (43) Then southwest following Washington Highway 126 and U.S. 
Highway 12 through Marengo, Dayton, and Waitsburg to a point where an 
unnamed light-duty road leaves Highway 12 in an easterly direction in 
Minnick Station, Washington;
    (44) Then east following the unnamed light-duty road for 
approximately 250 feet until it reaches the 2000[foot] contour line;
    (45) Then south and southwest following the 2000[foot] contour line 
to the place where it crosses Oregon Highway 74 in Windmill, Oregon;
    (46) Then west following Oregon Highway 74 to Highway 207 in 
Heppner;
    (47) Then southwest following Oregon Highway 207 to Highway 206 in 
Ruggs;
    (48) Then northwest following Oregon Highway 206 to the intersection 
with the township line between T. 1 S. and T. 2 S.;
    (49) Then west following the township line between T. 1 S. and T. 2 
S. to the Deschutes River;
    (50) Then north following the Deschutes River to the Willamette Base 
Line;
    (51) Then west following the Willamette Base Line to the township 
line between R. 12 E. and R. 13 E.;

[[Page 158]]

    (52) Then north following the township line between R. 12 E. and R. 
13. to the Columbia River;
    (53) Then west following the Columbia River to the confluence with 
the Klickitat River and the point of beginning.

[T.D. ATF-190, 49 FR 44897, Nov. 13, 1984, as amended by T.D. ATF-249, 
52 FR 5959, Feb. 27, 1987; 52 FR 10224, Mar. 31, 1987; T.D. ATF-344, 58 
FR 40354, July 28, 1993; T.D. ATF-441, 66 FR 11542, Feb. 26, 2001]



Sec.  9.75  Central Coast.

    (a) Name. The name of the viticultural area described in this 
section is ``Central Coast.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Central Coast viticultural area are the following 43 United States 
Geological Survey topographic maps:
    (1) Monterey, California (formerly, the Santa Cruz map), scale 
1:250,000, NJ 10-12, dated 1974;
    (2) Watsonville East, Calif. Quadrangle, Scale 1:24,000, dated 1955, 
photorevised 1968;
    (3) Mt. Madonna, Calif. Quadrangle, Scale 1:24,000, dated 1955, 
photorevised 1980;
    (4) Loma Prieta, Calif. Quadrangle, Scale 1:24,000, dated 1955, 
photorevised 1968;
    (5) Morgan Hill, Calif. Quadrangle, Scale 1:24,000, dated 1955, 
photorevised 1980;
    (6) Santa Teresa Hills, Calif. Quadrangle, Scale 1:24,000, dated 
1953, photorevised 1968;
    (7) Los Gatos, Calif. Quadrangle, Scale 1:24,000, dated 1953, 
photorevised 1980;
    (8) Castle Rock Ridge, Calif. Quadrangle, Scale 1:24,000, dated 
1955, photorevised 1968, photoinspected 1973;
    (9) San Jose, California, scale 1:250,000, NJ 10-9, dated 1962, 
revised 1969;
    (10) Dublin, Calif. Quadrangle, scale 1:24,000, dated 1961, 
photorevised 1980;
    (11) Livermore, Calif. Quadrangle, scale 1:24,000, dated 1961, 
photorevised 1968 and 1973;
    (12) Tassajara, Calif. Quadrangle, scale 1:24,000, dated 1953, 
photoinspected 1974;
    (13) Byron Hot Springs, Calif. Quadrangle, scale 1:24,000, dated 
1953, photorevised 1968;
    (14) Altamont, Calif. Quadrangle, scale 1:24,000, dated 1953, 
photorevised 1968;
    (15) Mendenhall Springs, Calif. Quadrangle, scale 1:24,000, dated 
1956, photorevised 1971;
    (16) San Luis Obispo, California, scale 1:250,000, NI 10-3, dated 
1956, revised 1969 and 1979;
    (17) Santa Maria, California, scale 1:250,000, NI 10-6, 9, dated 
1956, revised 1969;
    (18) Los Angeles, California, scale 1:250,000, NI 11-4, dated 1974;
    (19) Diablo, California, scale 1:24,000, dated 1953, Photorevised 
1980;
    (20) Clayton, California, scale 1:24,000, dated 1953, Photorevised 
1980;
    (21) Honker Bay, California, scale 1:24,000, dated 1953, 
Photorevised 1980;
    (22) Vine Hill, California, scale 1:24,000, dated 1959, Photorevised 
1980;
    (23) Benicia, California, scale 1:24,000, dated 1959, Photorevised 
1980;
    (24) Mare Island, California, scale 1:24,000, dated 1959, 
Photorevised 1980;
    (25) Richmond, California, scale 1:24,000, dated 1959, Photorevised 
1980;
    (26) San Quentin, California, scale 1:24,000, dated 1959, 
Photorevised 1980;
    (27) Oakland West, California, scale 1:24,000, dated 1959, 
Photorevised 1980;
    (28) San Francisco North, California, scale 1:24,000, dated 1956, 
Photorevised 1968 and 1973;
    (29) San Francisco South, California, scale 1:24,000, dated 1956, 
Photorevised 1980;
    (30) Montara Mountain, California, scale 1:24,000, dated 1956, 
Photorevised 1980;
    (31) Half Moon Bay, California, scale 1:24,000, dated 1961, 
Photoinspected 1978, Photorevised 1968 and 1973;
    (32) San Gregorio, California, scale 1:24,000, dated 1961, 
Photoinspected 1978, Photorevised 1968;
    (33) Pigeon Point, California, scale 1:24,000, dated 1955, 
Photorevised 1968;
    (34) Franklin Point, California, scale 1:24,000, dated 1955, 
Photorevised 1968;
    (35) A[ntilde]o Nuevo, California, scale 1:24,000, dated 1955, 
Photorevised 1968;
    (36) Davenport, California, scale 1:24,000, dated 1955, Photorevised 
1968;

[[Page 159]]

    (37) Santa Cruz, California, scale 1:24,000, dated 1954, 
Photorevised 1981;
    (38) Felton, California, scale 1:24,000, dated 1955, Photorevised 
1980;
    (39) Laurel, California, scale 1:24,000, dated 1955, Photoinspected 
1978, Photorevised 1968;
    (40) Soquel, California, scale 1:24,000, dated 1954, Photorevised 
1980;
    (41) Watsonville West, California, scale 1:24,000, dated 1954, 
Photorevised 1980;
    (42) Midway, California, scale 1:24,000, dated 1953, Photorevised 
1980; and
    (43) Cedar Mtn., California, scale 1:24,000, dated 1956, 
Photorevised 1971; minor revision 1994.
    (c) Boundary. The Central Coast viticultural area is located in the 
following California counties: Monterey, Santa Cruz, Santa Clara, 
Alameda, San Benito, San Luis Obispo, Santa Barbara, San Francisco, San 
Mateo, and Contra Costa. The Santa Cruz Mountains viticultural area is 
excluded. (The boundaries of the Santa Cruz Mountains viticultural area 
are described in 27 CFR Sec.  9.31.)
    (1) The beginning point is the point at which the Pajaro River flows 
into Monterey Bay. (Monterey map)
    (2) The boundary follows north along the shoreline of the Pacific 
Ocean (across the Watsonville West, Soquel, Santa Cruz, Davenport, 
A[ntilde]o Nuevo, Franklin Point, Pigeon Point, San Gregorio, Half Moon 
Bay, Montara Mountain and San Francisco South maps) to the San 
Francisco/Oakland Bay Bridge. (San Francisco North Quadrangle)
    (3) From this point, the boundary proceeds east on the San 
Francisco/Oakland Bay Bridge to the Alameda County shoreline. (Oakland 
West Quadrangle)
    (4) From this point, the boundary proceeds east along the shoreline 
of Alameda County and Contra Costa County across the Richmond, San 
Quentin, Mare Island, and Benicia maps to a point marked BM 15 on the 
shoreline of Contra Costa County. (Vine Hill Quadrangle)
    (5) From this point, the boundary proceeds in a southeasterly 
direction in a straight line across the Honker Bay map to Mulligan Hill 
elevation 1,438. (Clayton Quadrangle)
    (6) The boundary proceeds in southeasterly direction in a straight 
line to Mt. Diablo elevation 3,849. (Clayton Quadrangle)
    (7) The boundary proceeds in a southeasterly direction in a straight 
line across the Diablo and Tassajara maps to Brushy Peak elevation 
1,702. (Byron Hot Springs Quadrangle)
    (8) The boundary proceeds due south, approximately 400 feet, to the 
northern boundaries of Section 13, Township 2 South, Range 2 East. 
(Byron Hot Springs Quadrangle)
    (9) The boundary proceeds due east along the northern boundaries of 
Section 13 and Section 18, Township 2 South, Range 3 East, to the 
northeast corner of Section 18. (Byron Hot Springs Quadrangle)
    (10) Then proceed southeast in a straight line approximately 1.8 
miles to BM 720 in Section 21, Township 2 South, Range 3 East. (Altamont 
Quadrangle)
    (11) Then proceed south-southeast approximately 1 mile to an unnamed 
1,147-foot peak in Section 28, Township 2 South, Range 3 East. (Altamont 
Quadrangle)
    (12) Then proceed south-southwest in a straight line approximately 
1.1 miles to the intersection of the eastern boundary of Section 32 with 
Highway 580, Township 2 South, Range 3 East. (Altamont Quadrangle)
    (13) Then proceed south-southeast in a straight line approximately 
2.7 miles to BM 1602 in Patterson Pass in Section 10, Township 3 South, 
Range 3 East. (Altamont Quadrangle)
    (14) Then proceed south-southeast in a straight line approximately 
2.8 miles to BM 1600, adjacent to Tesla Road in Section 26. (Midway 
Quadrangle)
    (15) Then proceed south in a straight line approximately 4.2 miles 
to BM 1878, 40 feet north of Mines Road, in Section 14, Township 4 
South, Range 3 East. (Cedar Mtn. Quadrangle)
    (16) Then proceed west-southwest in a straight line approximately 
4.2 miles to the southeast corner of Section 19, Township 4 South, Range 
3 East. (Mendenhall Springs Quadrangle)
    (17) The boundary follows the east-west section line west along the 
southern boundary of Section 19 in Township 4 South, Range 3 east, and 
west along

[[Page 160]]

the southern boundary of Section 24 in Township 4 South, Range 2 east, 
to the southwest corner of that Section 24. (Mendenhall Springs 
Quadrangle)
    (18) The boundary follows the north-south section line north along 
the western boundary of Section 24 in Township 4 South, Range 2 east, to 
the northwest corner of that Section 24. (Mendenhall Springs Quadrangle)
    (19) The boundary follows the east-west section line west along the 
southern boundary of Section 14 in Township 4 South, Range 2 east, to 
the southwest corner of that Section 14. (Mendenhall Springs Quadrangel)
    (20) The boundary follows the north-south section line north along 
the western boundary of Section 14 in Township 4 South, Range 2 east, to 
the Hetch Hetchy Aqueduct. (Mendenhall Springs Quadrangle)
    (21) The boundary follows the Hetch Hetchy Aqueduct southwesterly to 
the range line dividing Range 1 East from Range 2 East. (San Jose map)
    (22) The boundary follows this range line south to its intersection 
with State Route 130. (San Jose map)
    (23) The boundary follows State Route 130 southeasterly to its 
intersection with the township line dividing Township 6 South from 
Township 7 South. (San Jose map)
    (24) From this point, the boundary proceeds in a straight line 
southeasterly to the intersection of the township line dividing Township 
7 South from Township 8 South with the range line dividing Range 2 East 
from Range 3 East. (San Jose map)
    (25) From this point, the boundary proceeds in a straight line 
southeasterly to the intersection of the township line dividing Township 
8 South from Township 9 South with the range line dividing Range 3 East 
from Range 4 East. (San Jose map)
    (26) From this point, the boundary proceeds in a straight line 
southeasterly to the intersection of Coyote Creek with the township line 
dividing Township 9 South from Township 10 South. (San Jose map)
    (27) From this point, the boundary proceeds in a straight line 
southeasterly to the intersection of the 37[deg]00[min] North latitude 
parallel with State Route 152. (San Jose map)
    (28) The boundary follows the 37[deg]00[min] North latitude parallel 
east to the range line dividing Range 5 East from Range 6 East. 
(Monterey map)
    (29) The boundary follows this range line south to the San Benito-
Santa Clara County line. (Monterey map)
    (30) The boundary follows the San Benito-Santa Clara County line 
easterly to the San Benito-Merced County line. (Monterey map)
    (31) The boundary follows the San Benito-Merced County line 
southeasterly to the conjunction of the county lines of San Benito, 
Merced, and Fresno Counties. (Monterey map)
    (32) From this point, the boundary proceeds in a southwesterly 
extension of the Merced-Fresno County line to Salt Creek. (Monterey map)
    (33) From this point, the boundary proceeds in a straight line 
southeasterly to the conjunction of the county lines of Monterey, San 
Benito, and Fresno Counties. (Monterey map)
    (34) The boundary follows the Monterey-Fresno County line 
southeasterly to the Monterey-Kings County line. (Monterey and San Luis 
Obispo maps)
    (35) The boundary follows the Monterey-Kings County line 
southeasterly to the San Luis Obispo-Kings County line. (San Luis Obispo 
map)
    (36) The boundary follows the San Luis Obispo-Kings County line east 
to the San Luis Obispo-Kern County line. (San Luis Obispo map)
    (37) The boundary follows the San Luis Obispo-Kern County line 
south, then east, then south to the point at which the county line 
diverges easterly from the range line dividing Range 17 East from Range 
18 East. (San Luis Obispo map)
    (38) The boundary follows this range line south to the township line 
dividing Township 28 South from Township 29 South. (San Luis Obispo map)
    (39) The boundary follows the township line west to the range line 
dividing Range 13 East from Range 14 East. (San Luis Obispo map)
    (40) The boundary follows this range line south to the boundary of 
the Los Padres National Forest. (San Luis Obispo map)
    (41) The boundary follows the boundary of the Los Padres National 
Forest

[[Page 161]]

southeasterly to the creek of Toro Canyon. (San Luis Obispo, Santa 
Maria, and Los Angeles maps)
    (42) The boundary follows the creek of Toro Canyon southerly to the 
Pacific Ocean. (Los Angeles map)
    (43) The boundary follows the shoreline of the Pacific Ocean and 
Monterey Bay northerly to the beginning point. (Los Angeles, Santa 
Maria, San Luis Obispo, and Monterey maps)

[T.D. ATF-216, 50 FR 43130, Oct. 24, 1985, as amended by T.D. ATF-407, 
64 FR 3023, Jan. 20, 1999; T.D. TTB-48, 71 FR 34524, June 15, 2006]



Sec.  9.76  Knights Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Knights Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Knights Valley viticultural area are four U.S.G.S. 
maps. They are--
    (1) ``Mount St. Helena Quadrangle, California,'' 7.5 minute series, 
1959 (Photoinspected 1973);
    (2) ``Jimtown Quadrangle, California,'' 7.5 minute series, 1955 
(Photorevised 1975);
    (3) ``Mark West Springs Quadrangle, California,'' 7.5 minute series, 
1958; and
    (4) ``Detert Reservoir Quadrangle, California,'' 7.5 minute series, 
1958 (Photorevised 1980).
    (c) Boundary. The Knights Valley viticultural area is located in 
northeastern Sonoma County, California. From the beginning point lying 
at the intersection of the Sonoma/Lake County line and the north line of 
Section 11, Township 10 North (T. 10 N.), Range 8 West (R. 8 W.) on the 
``Mount St. Helena Quadrangle'' map, the boundary runs--
    (1) Westerly along the north line of Sections 11, 10, and 9, T. 10 
N., R. 8 W. to the northwest corner of Section 9 on the ``Jimtown 
Quadrangle'' map;
    (2) Then southerly along the west line of Sections 9, 16, 21, 28, 
and 33, T. 10 N., R. 8 W., continuing along the west line of Section 4, 
T. 9 N., R. 8 W. to the southwest corner thereof;
    (3) Then easterly along the south line of Section 4 to the southeast 
corner thereof on the ``Mount St. Helena Quadrangle'' map;
    (4) Then southerly along the west line of Sections 10, 15, and 22, 
T. 9 N., R. 8 W. to the point of intersection with Franz Creek in 
Section 22 on the ``Mark West Springs Quadrangle'' map;
    (5) Then easterly along Franz Creek approximately 14,000 feet to the 
centerline of Franz Valley Road;
    (6) Then southerly along the centerline of Franz Valley Road to the 
point of intersection with the west line of Section 6, T. 8 N., R. 7 W.;
    (7) Then southerly along the west line of Section 6 to the southwest 
corner thereof;
    (8) Then easterly along the south line of Sections 6, 5, and 4, T. 8 
N., R. 7 W. to the southeast corner of Section 4;
    (9) Then northerly along the east line of Section 4 to the point of 
intersection with the Sonoma/Napa County line;
    (10) Then northerly along the meanders of the Sonoma/Napa County 
line on the ``Mark West Springs Quadrangle,'' ``Detert Reservoir 
Quadrangle,'' and ``Mount St. Helena Quadrangle'' maps to the point of 
intersection with the Lake County line on the ``Mount St. Helena 
Quadrangle'' map;
    (11) Then northerly along the meanders of the Sonoma/Lake County 
line on the ``Mount St. Helena Quadrangle'' and ``Detert Reservoir 
Quadrangle'' maps to the point of beginning.

[T.D. ATF-158, 48 FR 48816, Oct. 21, 1983]



Sec.  9.77  Altus.

    (a) Name. The name of the viticultural area described in this 
section is ``Altus.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Altus viticultural area are five U.S.G.S. maps in the 
7.5 minute series. They are titled:
    (1) Ozark Quadrangle, 1966.
    (2) Coal Hill Quadrangle, 1961.
    (3) Hartman Quadrangle, 1961.
    (4) Hunt Quadrangle, 1963.
    (5) Watalula Quadrangle, 1973.
    (c) Boundary--(1) General. The Altus viticultural area is located in 
Arkansas. The starting point of the following boundary description is 
the crossing of the Missouri Pacific Railroad over Gar Creek, near the 
Arkansas River at the southeast corner of the city of Ozark, Arkansas 
(on the Ozark Quadrangle map).

[[Page 162]]

    (2) Boundary Description:
    (i) From the crossing of the Missouri Pacific Railroad over Gar 
Creek, following the railroad tracks eastward to the crossing over 
Horsehead Creek (on the Hartman Quadrangle map).
    (ii) From there northward along Horsehead Creek to the merger with 
Dirty Creek (on the Coal Hill Quadrangle map).
    (iii) From there generally northwestward along Dirty Creek to 
Arkansas Highway 352 (where Dirty Creek passes under the highway as a 
perennial stream--on the Hunt Quadrangle map).
    (iv) From there along Highway 352 westward to Arkansas Highway 219 
(on the Watalula Quadrangle map).
    (v) Then southward along Highway 219 to Gar Creek (on the Ozark 
Quadrangle map).
    (vi) Then southeastward along Gar Creek to the beginning point.

[T.D. ATF-176, 49 FR 22471, May 30, 1984]



Sec.  9.78  Ohio River Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Ohio River Valley.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Ohio River Valley viticultural area are 12 U.S.G.S. topographic maps 
in the scale 1:250,000, as follows:
    (1) Paducah NJ 16-7 (dated 1949, revised 1969);
    (2) Belleville NJ 16-4 (dated 1958, revised 1977);
    (3) Vincennes NJ 16-5 (dated 1956, revised 1969);
    (4) Louisville NJ 16-6 (dated 1956, revised 1969);
    (5) Cincinnati NJ 16-3 (dated 1953, revised 1974);
    (6) Columbus NJ 17-1 (dated 1967);
    (7) Clarksburg NJ 17-2 (dated 1956, limited revision 1965);
    (8) Canton NJ 17-11 (dated 1957, revised 1969);
    (9) Charleston NJ 17-5 (dated 1957, limited revision 1965);
    (10) Huntington NJ 17-4 (dated 1957, revised 1977);
    (11) Winchester NJ 16-9 (dated 1957, revised 1979); and
    (12) Evansville NJ 16-8 (dated 1957, revised 1974);
    (c) Boundary. The Ohio River Valley viticultural area is located in 
Indiana, Ohio, West Virginia and Kentucky. The boundary description in 
paragraphs (c)(1)-(c)(21) of this section includes, for each point, the 
name of the map sheet (in parentheses) on which the point can be found.
    (1) The beginning point is the point at which the Kentucky, 
Illinois, and Indiana State lines converge at the confluence of the 
Wabash River and the Ohio River (Paducah map).
    (2) The boundary follows the Illinois-Indiana State line northerly 
(across the Belleville map) to Interstate Route 64 (Vincennes map).
    (3) From the intersection of Interstate Route 64 and the Wabash 
River, the boundary proceeds in a straight line northeasterly to the 
town of Oatsville in Pike County, Indiana (Vincennes map).
    (4) The boundary proceeds in a straight line southeasterly to the 
point in Spencer County, Indiana, at which State Route 162 diverges 
northerly from U.S. Route 460, which is knownlocally as State Route 62 
(Vincennes map).
    (5) The boundary proceeds in a straight line northeasterly to the 
point in Harrison County, Indiana, at which State Route 66 diverges 
northerly from State Route 64 (Vincennes map).
    (6) The boundary proceeds in a straight line northeasterly (across 
the Louisville map) to the town of New Marion in Ripley County, Indiana 
(Cincinnati map).
    (7) The boundary proceeds in a straight line northerly to the town 
of Clarksburg in Decatur County, Indiana (Cincinnati map).
    (8) The boundary proceeds in a straight line easterly to the town of 
Ridgeville in Warren County, Ohio (Cincinnati map).
    (9) The boundary proceeds in a straight line southeasterly to the 
town of Chapman in Jackson County, Ohio (Columbus map).
    (10) The boundary proceeds in a straight line northeasterly to the 
town identified on the map as Hesboro, also known as Ilesboro, in 
Hocking County, Ohio (Columbus map).
    (11) The boundary proceeds in a straight line northeasterly to the 
town

[[Page 163]]

of Tacoma in Belmont County, Ohio (Clarksburg map).
    (12) The boundary proceeds in a straight line easterly to the town 
of Valley Grove in Ohio County, West Virginia (Canton map).
    (13) The boundary proceeds in a straight line southerly to the town 
of Jarvisville in Harrison County, West Virginia (Clarksburg map).
    (14) The boundary proceeds in a straight line southwesterly to the 
town of Gandeeville in Roane County West Virginia (Charleston map).
    (15) The boundary proceeds in a straight line southwesterly to the 
town of Atenville in Lincoln County West Virginia (Huntington map).
    (16) The boundary proceeds in a straight line westerly to the town 
of Isonville in Elliott County, Kentucky (Huntington map).
    (17) The boundary proceeds in a straight line northwesterly to the 
town of Berlin in Bracken County, Kentucky (Louisville map).
    (18) The boundary proceeds in a straight line westerly to the town 
of Dry Ridge in Grant County, Kentucky (Louisville map).
    (19) The boundary proceeds in a straight line southwesterly to the 
town of Crest in Hardin County, Kentucky (Winchester map).
    (20) The boundary proceeds in a straight line westerly to the 
intersection of State Route 56 and U.S. Route 41 in the city of Sebree 
in Webster County, Kentucky (Evansville map).
    (21) The boundary proceeds in a straight line northwesterly to the 
beginning point (Paducah map).

[T.D. ATF-144, 48 FR 40379, Sept. 7, 1983, as amended by T.D. ATF-249, 
52 FR 5959, Feb. 27, 1987]



Sec.  9.79  Lake Michigan Shore.

    (a) Name. The name of the viticultural area described in this 
section is ``Lake Michigan Shore.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Lake Michigan Shore viticultural area are four 
U.S.G.S. maps, 1:250,000 series. They are entitled: (1) Chicago (1953, 
revised 1970); (2) Fort Wayne (1953, revised 1969); (3) Racine (1958, 
revised 1969); and (4) Grand Rapids (1958, revised 1980).
    (c) Boundaries. The Lake Michigan Shore viticultural area is located 
in the southwestern corner of the State of Michigan. The boundaries of 
the Lake Michigan Shore viticultural area, using landmarks and points of 
reference found on the appropriate U.S.G.S maps, are as follows:
    (1) Starting at the most northern point, the intersection the 
Kalamazoo River with Lake Michigan.
    (2) Then southeast along the winding course of the Kalamazoo River 
for approximately 35 miles until it intersects the Penn Central railroad 
line just south of the City of Otsego.
    (3) Then south along the Penn Central railroad line, through the 
City of Kalamazoo, approximately 25 miles until it intersects the Grand 
Trunk Western railroad line at the community of Schoolcraft.
    (4) Then southwest along the Grand Trunk Western railroad line 
approximately 35 miles to the Michigan/ Indiana State line.
    (5) Then west along the Michigan-Indiana State line approximately 38 
miles until it meets Lake Michigan.
    (6) Then north along the eastern shore of Lake Michigan 
approximately 72 miles to the beginning point.

[T.D. ATF-153, 48 FR 46526, Oct. 13, 1983, as amended by T.D. ATF-249, 
52 FR 5959, Feb. 27, 1987]



Sec.  9.80  York Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``York Mountain.''
    (b) Approved map. The approved map for the York Mountain 
viticultural area is the U.S.G.S. map entitled ``York Mountain 
Quadrangle,'' 7.5 minute series (topographic), 1949 (photorevised 1979).
    (c) Boundaries. The York Mountain viticultural area is located in 
San Luis Obispo County, California. The boundaries are as follows:
    (1) From the beginning point at the northwest corner of the York 
Mountain Quadrangle map where the Dover Canyon Jeep Trail and Dover 
Canyon Road intersect, proceed east along Dover Canyon Road 1.5 miles to 
the western boundary line of Rancho Paso de Robles;

[[Page 164]]

    (2) Follow the western boundary line of Rancho Paso de Robles 
southwest 6.0 miles to where the boundary joins Santa Rita Creek;
    (3) Turn right at Santa Rita Creek and follow the creek 5 miles to 
where the waters of Dover Canyon and Santa Rita Creek meet; and
    (4) Then proceed north along Dover Canyon Creek to its intersection 
with Dover Canyon Road, then following Dover Canyon Road (which becomes 
Dover Canyon Jeep Trail) back to the point of beginning.

[T.D. ATF-143, 48 FR 38463, Aug. 24, 1983, as amended by T.D. ATF-249, 
52 FR 5959, Feb. 27, 1987]



Sec.  9.81  Fiddletown.

    (a) Name. The name of the viticultural area described in this 
section is ``Fiddletown.''
    (b) Approved maps. The approved maps for the Fiddletown viticultural 
area are four U.S.G.S. maps entitled:
    (1) Fiddletown, CA, 1949, 7.5 minute series;
    (2) Amador City, CA, 1962, 7.5 minute series;
    (3) Pine Grove, CA, 1948 (photoinspected 1973), 7.5 minute series;
    (4) Aukum, CA, 1952 (photorevised 1973), 7.5 minute series.
    (c) Boundaries. The Fiddletown viticultural area is located in 
Amador County, California. The boundaries are as follows:
    (1) From the beginning point at the north boundary where Fiddletown 
Shenandoah Road crosses Big Indian Creek in Section 28, Township 8 N, 
Range 11 E, proceed in a southwesterly direction following Big Indian 
Creek through the southeast corner of Section 29, crossing the northwest 
corner of Section 32 to where it meets Section 31;
    (2) Then in a southerly direction follow the Section line between 
Sections 31 and 32, Township 8 N, Range 11 E, and Sections 5 and 6, 7 
and 8, Township 7 N, Range 11 E, to where the Section line meets the 
South Fork of Dry Creek;
    (3) Then following the South Fork of Dry Creek in an easterly 
direction crossing the lower portions of Sections 8, 9, 10, 11, 12 and 
into Township 8 N, Range 12 E, at Section 7 and across Section 7 to 
where it meets Section 8;
    (4) Then north following the Section line between Sections 7 and 8, 
5 and 6 into Township 8 N, Range 12 E, between Sections 31 and 32, to 
Big Indian Creek; and
    (5) Then following Big Indian Creek in a northwesterly direction 
through Sections 31, 30, 25, 26 and 27, returning to the point of 
beginning.

[T.D. ATF-147, 48 FR 45239, Oct. 4, 1983, as amended by T.D. ATF-249, 52 
FR 5959, Feb. 27, 1987]



Sec.  9.82  Potter Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Potter Valley.''
    (b) Approved map. The approved maps for the Potter Valley 
viticultural area are the U.S.G.S. maps entitled ``Potter Valley 
Quadrangle, California,'' 1960, and ``Ukiah Quadrangle, California,'' 
1958, 15 minute series (topographic).
    (c) Boundaries. The Potter Valley viticultural area is located in 
Mendocino County, California. The boundaries are as follows:
    (1) From the beginning point at the southeast corner of quadrant 36 
and southwest corner of quadrant 32 (a point where Mendocino and Lake 
Counties border on the T. 17 N.-T. 16 N. township line), the boundary 
runs northwest to the northeastern corner of quadrant 4, on the T. 18 
N.-T. 17 N. township line;
    (2) Then west to the northwest corner of quadrant 1;
    (3) Then south to the southwest corner of quadrant 36;
    (4) Then east to R. 12 W.-R. 11 W. range line at the southeast 
corner of quadrant 36;
    (5) Then south to Highway 20;
    (6) Then southeast on Highway 20 to where Highway 20 passes from 
quadrant 20 to quadrant 21; and
    (7) Thence northeast, returning to the point of beginning.

[T.D. ATF-151, 48 FR 46521, Oct. 13, 1983]



Sec.  9.83  Lake Erie.

    (a) Name. The name of the viticultural area described in this 
section is ``Lake Erie.''

[[Page 165]]

    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Lake Erie viticultural area are four U.S.G.S. maps. 
They are titled:
    (1) ``Toledo,'' scale 1:250,000 (1956, revised 1978);
    (2) ``Cleveland,'' scale 1:250,000 (1956, revised 1972);
    (3) ``Erie,'' scale 1:250,000 (1959, revised 1972); and
    (4) ``Buffalo,'' scale 1:250,000 (1962).
    (c) Boundaries. The Lake Erie viticultural area is located along the 
shore and on the islands of Lake Erie across the States of New York, 
Pennsylvania, and Ohio. The beginning point is where Buffalo Creek 
empties into Lake Erie at Buffalo Harbor.
    (1) From the beginning point the boundary proceeds up Buffalo Creek 
to the confluence of Cazenovia Creek.
    (2) The boundary proceeds up Cazenovia Creek and thence up the west 
branch of Cazenovia Creek to a point approximately one mile north of 
Colden, New York, exactly 12 statute miles inland from any point on the 
shore of Lake Erie.
    (3) The boundary proceeds southwestward and along a line exactly 12 
statute miles inland from any point on the shore of Lake Erie to a point 
approximately one mile north of Dayton, New York, where it intersects 
the 1,300-foot contour line.
    (4) The boundary proceeds generally southwestward along the 1,300-
foot contour line to a point almost two miles north-northwest of Godard, 
Pennsylvania, exactly six statute miles inland from any point on the 
shore of Lake Erie.
    (5) The boundary proceeds southwestward along a line exactly six 
statute miles inland from any point on the shore of Lake Erie to the 
point where it intersects Ohio Route 45 near the intersection with 
Interstate 90.
    (6) The boundary proceeds southward along Ohio Route 45 to a point 
exactly 14 statute miles inland from any point on the shore of Lake Erie 
approximately one mile north of Rock Creek, Ohio.
    (7) The boundary proceeds southwestward, then westward, then 
northwestward along a line 14 statute miles inland from any point on the 
shore of Lake Erie to the point where it intersects the Ohio-Michigan 
boundary just north of Centennial, Ohio.
    (8) The boundary then follows the Ohio-Michigan border in an 
easterly direction to the shoreline of Lake Erie. Thence in a generally 
southeasterly direction along the shoreline of Lake Erie to the mouth of 
the Portage River just north of Port Clinton. Thence due north in a 
straight line to the United States-Canada border. Thence in a 
southeasterly and then an easterly direction along the United States-
Canada border until a point is reached which is due north of the 
easternmost point of Kelleys Island.
    (9) The boundary then proceeds due south until it reaches the 
shoreline of Lake Erie. Thence the boundary follows the lakeshore in a 
generally northeasterly direction to the beginning point at the mouth of 
Buffalo Creek.

[T.D. ATF-156, 48 FR 48819, Oct. 21, 1983]



Sec.  9.84  Paso Robles.

    (a) Name. The name of the viticultural area described in this 
section is ``Paso Robles''.
    (b) Approved map. The map showing the boundaries of the Paso Robles 
viticultural area is: ``San Luis Obispo'', NI 10-3, scale 1:250,000 
(1956, revised 1969).
    (c) Boundaries. The Paso Robles viticultural area is located within 
San Luis Obispo County, California. From the point of beginning where 
the county lines of San Luis Obispo, Kings and Kern Counties converge, 
the county line also being the township line between T.24S. and T.25S., 
in R.16E.:
    (1) Then in a westerly direction along this county line for 42 miles 
to the range line between R.9E. and R.10E.;
    (2) Then in a southerly direction for 12 miles along the range line 
to the southwest of corner of T.26S. and R.10E.;
    (3) Then in a southeasterly direction, approximately 5.5 miles to a 
point of intersection of the Dover Canyon Jeep Trail and Dover Canyon 
Road;
    (4) Then in an easterly direction along Dover Canyon Road, 
approximately 1.5 miles, to the western border line of Rancho Paso de 
Robles;
    (5) Then, following the border of the Paso Robles land grant, 
beginning in

[[Page 166]]

an easterly direction, to a point where it intersects the range line 
between R.11E. and R.12E.;
    (6) Then southeasterly for approximately 16.5 miles to the point of 
intersection of the township line between T.29S. and T.30S. and the 
range line between R.12E. and R.13E.;
    (7) Then in an easterly direction for approximately 6 miles to the 
range line between R.13E. and R.14E.;
    (8) Then in a northerly direction for approximately 6 miles to the 
township line between T.28S. and T.29S.;
    (9) Then in an easterly direction for approximately 18 miles to the 
range line between R.16E. and R.17E.;
    (10) Then in a northerly direction for approximately 24 miles to the 
point of beginning.

[T.D. ATF-148, 48 FR 45241, Oct. 4, 1983, as amended by T.D. ATF-377, 61 
FR 29953, June 13, 1996]



Sec.  9.85  Willow Creek.

    (a) Name. The name of the viticultural area described in this 
section is ``Willow Creek.''
    (b) Approved map. The map showing the boundary of the Willow Creek 
viticultural area is: ``Willow Creek Quadrangle,'' California, U.S.G.S. 
15 minute series (1952).
    (c) Boundaries. The Willow Creek viticultural area is located within 
portions of Humboldt and Trinity Counties, California. From the point of 
beginning where the 1,000-foot contour line intersects Kirkham Creek 
(directly north of section 19, T.7 N./R.5E.), beginning in a southerly 
direction, the boundary line the 1,000-foot contour line to;
    (1) The point of intersection between the 1,000-foot contour line 
and the north section line of section 27, T.6N./R.5E.;
    (2) Then in a straight, north easterly line to the point of 
intersection between the 1,000-foot contour line and the east section 
line of section 13, T.6N./R.5E.;
    (3) Then in a straight, northwesterly line to the point of 
intersection between the 1,000-foot contour line and the north section 
line of section 11, T.6N./R.5E.;
    (4) Then in a straight, south-southwesterly line to the point of 
intersection between the 1,000-foot contour line and the east section 
line of section 15, T.6N./R.5E.;
    (5) Then following the 1,000-foot contour line, beginning in a 
westerly direction, to the point of intersection between the 1,000-foot 
contour line and Coons Creek;
    (6) Then in a straight, westerly line to the point of beginning.

[T.D. ATF-141, 48 FR 37376, Aug. 18, 1983]



Sec.  9.86  Anderson Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Anderson Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Anderson Valley viticultural area are three U.S.G.S. 
maps. They are titled:
    (1) ``Navarro Quadrangle, California--Mendocino Co.,'' 15 minute 
series (1961);
    (2) ``Boonville Quadrangle, California--Mendocino Co.,'' 15 minute 
series (1959); and
    (3) ``Ornbaun Valley Quadrangle, California,'' 15 minute series 
(1960).
    (c) Boundaries. The Anderson Valley viticultural area is located in 
the western part of Mendocino County, California. The beginning point is 
at the junction of Bailey Gulch and the South Branch North Fork Navarro 
River in Section 8, Township 15 North (T.15N.), Range 15 West (R.15W.), 
located in the northeast portion of U.S.G.S. map ``Navarro Quadrangle.''
    (1) From the beginning point, the boundary runs southeasterly in a 
straight line to an unnamed hilltop (elevation 2015 feet) in the 
northeast corner of Section 9, T.13N., R.13W., located in the southeast 
portion of U.S.G.S. map ``Boonville Quadrangle'';
    (2) Then southwesterly in a straight line to Benchmark (BM) 680 in 
Section 30, T.13N., R.13W., located in the northeast portion of U.S.G.S. 
map ``Ornbaun Valley Quadrangle'';
    (3) Then northwesterly in a straight line to the intersection of an 
unnamed creek and the south section line of Section 14, T.14N., R.15W., 
located in the southwest portion of U.S.G.S. map ``Boonville 
Quadrangle'';
    (4) Then in a westerly direction along the south section lines of 
Sections 14,

[[Page 167]]

15, and 16, T.14N., R.15W., to the intersection of the south section 
line of Section 16 with Greenwood Creek, approximately .2 miles west of 
Cold Springs Road which is located in the southeast portion of U.S.G.S. 
map ``Navarro Quadrangle'';
    (5) Then in a southwesterly and then a northwesterly direction along 
Greenwood Creek to a point in Section 33 directly south (approximately 
1.4 miles) of Benchmark (BM) 1057 in Section 28, T.15N., R.16W.;
    (6) Then directly north in a straight line to Benchmark (BM) 1057 in 
Section 28, T.15N., R.16W.;
    (7) Then in a northeasterly direction in a straight line to the 
beginning point.

[T.D. ATF-139, 48 FR 37370, Aug. 18, 1983]



Sec.  9.87  Grand River Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Grand River Valley.''
    (b) Approved map. The approved map for determining the boundary of 
the Grand River Valley viticultural area is the U.S.G.S. topographic map 
in the scale of 1:250,000, entitled Cleveland, number NK 17-8, dated 
1956, revised 1972.
    (c) Boundary. The Grand River Valley viticultural area is located in 
the following Ohio counties: Lake, Geauga, and Ashtabula. The 
viticultural area consists of all of the land within the Lake Erie 
viticultural area, described in Sec.  9.83, which is also within 2 
statute miles, in any direction, of the Grand River. Specifically, the 
Grand River Valley viticultural area consists of all of the land west of 
Ohio Route 45 which is within 2 statute miles, in any direction, of the 
Grand River, and which is also within 14 statute miles inland from any 
point on the shore of Lake Erie.

[T.D. ATF-157, 48 FR 48821, Oct. 21, 1983]



Sec.  9.88  Pacheco Pass.

    (a) Name. The name of the viticultural area described in this 
section is ``Pacheco Pass.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of Pacheco Pass viticultural area are two U.S.G.S. maps. They 
are titled:
    (1) San Felipe Quadrangle, 7.5 minute series, 1955 (photorevised 
1971).
    (2) Three Sisters Quadrangle, 7.5 minute series, 1954 (photorevised 
1971).
    (c) Boundary--(1) General. The Pacheco Pass viticultural area is 
located in California. The starting point of the following boundary 
description is the crossing of Pacheco Creek under California Highway 
156, about 4 miles north of Hollister Municipal Airport, in San Benito 
County, California.
    (2) Boundary Description. (i) From the starting point northwestward 
along Pacheco Creek to the intersection with the straight-line extension 
of Barnheisel Road. (Note. This is an old land grant boundary and 
appears on the U.S.G.S. map as the western boundary of an orchard.)
    (ii) From there in a straight line northeastward to the intersection 
of Barnheisel Road and California Highway 156.
    (iii) From there northward along Highway 156 to California Highway 
152 (``Pacheco Pass Highway'').
    (iv) Then northward along Pacheco Pass Highway to the 37[deg] 
latitude line.
    (v) Then eastward along that latitude line to the land line R. 5E./
R. 6E.
    (vi) Then southward along that land line, crossing Foothill Road, 
and continuing southward to a point exactly 2,300 feet south of Foothill 
Road.
    (vii) From there is a straight line to the starting point.

[T.D. ATF-167, 49 FR 9169, Mar. 12, 1984]



Sec.  9.89  Umpqua Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Umpqua Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Umpqua Valley viticultural area are two U.S.G.S. maps. 
They are titled:
    (1) ``Roseburg,'' scale 1:250,000 (1958, revised 1970); and
    (2) ``Medford,'' scale 1:250,000 (1955, revised 1976).
    (c) Boundaries. The Umpqua Valley viticultural area is located 
entirely within Douglas County, Oregon, which is in the southwest part 
of the State. The beginning point is the intersection of Interstate 
Highway 5 with the Douglas/Lane County line in Township 21

[[Page 168]]

South (T21S), Range 4 West (R4W) on the ``Roseburg'' map.
    (1) From the beginning point, the boundary proceeds north along the 
Douglas/Lane County line approximately .5 miles to the 1,000-foot 
contour line;
    (2) Thence northwest along the 1,000-foot contour line to the 
Douglas/Lane County line; thence west along the Douglas/Lane County line 
approximately 2.5 miles, returning to the 1,000-foot contour line; 
thence in a generally westerly direction along the 1,000-foot contour 
line to the R9W/R10W range line;
    (3) Thence south along the R9W/R10W range line approximately 2.75 
miles to the center of the Umpqua River; thence along a straight line in 
an easterly direction approximately 6.25 miles to the intersection of 
range line R8W/R9W with the center of the Umpqua River; thence south 
along range line R8W/R9W approximately 3.5 miles to its intersection 
with township line T22S/T23S;
    (4) Thence southeast approximately 8.5 miles along a straight line 
to the intersection of township line T23S/T24S with range line R7W/R8W; 
thence south along the R7W/R8W range line approximately 8 miles to its 
intersection with the 1,000-foot contour line; thence in a southeasterly 
direction in a straight line approximately 3.5 miles toward the 
intersection of township line T25S/T26S with range line R6W/R7W, 
returning to the 1,000-foot contour line;
    (5) Thence in a southerly direction along the 1,000-foot contour 
line to the intersection of township line T27S/T28S with range line R7W/
R8W; thence in a southwesterly direction in a straight line 
approximately 3.5 miles toward the intersection of township line T28S/
T29S with range line R8W/R9W, returning to the 1,000-foot contour line; 
thence south along the 1,000-foot contour line to its intersection with 
township line T29S/T30S;
    (6) Thence east along township line T29S/T30S approximately .33 
miles, rejoining the 1,000-foot contour line; thence in a northerly and 
eventually a southerly direction along the 1,000-foot contour line past 
the town of Riddle on the ``Medford'' map to range line R6W/R7W; thence 
south along the R6W/R7W range line approximately .5 miles back to the 
1,000-foot contour line;
    (7) Thence in an easterly, westerly, and eventually a northerly 
direction along the 1,000-foot contour line to a point approximately 3.5 
miles east of Dillard, where the contour line crosses Interstate Highway 
5 on the ``Roseburg'' map; thence northeast along Interstate Highway 5 
approximately .25 mile, returning to the 1,000-foot contour line; thence 
in a generally northeasterly, southeasterly, northwesterly, and 
eventually a northeasterly direction along the 1,000-foot contour line 
past the town of Idleyld Park to the R2W/R3W range line;
    (8) Thence north along range line R2W/R3W approximately 1.75 miles 
to the T25S/T26S township line; thence west along township line T25S/
T26S approximately .25 mile, returning to the 1,000-foot contour line; 
thence in a generally westerly and then a northerly direction along the 
1,000-foot contour line up the valley of Calapooya Creek to the R3W/R4W 
range line; thence north along range line R3W/R4W approximately 2.25 
miles, back to the 1,000-foot contour line;
    (9) Thence in a westerly and then a northerly direction along the 
1,000-foot contour line to the T23S/T24S township line; thence east 
along the T23S/T24S township line approximately 2.75 miles to the 1,000-
foot contour line; thence in a northerly direction along the 1,000-foot 
contour line to its intersection with the Douglas/Lane County line; 
thence north along the Douglas/Lane County line approximately .75 mile 
to the point of beginning.

[T.D. ATF-170, 49 FR 12246, Mar. 29, 1984]



Sec.  9.90  Willamette Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Willamette Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Willamette Valley viticultural area are three U.S.G.S. 
Oregon maps scaled 1:250,000. They are entitled:
    (1) ``Vancouver,'' Location Diagram NL 10-8, 1958 (revised 1974).
    (2) ``Salem,'' Location Diagram NL 10-11, 1960 (revised 1977).
    (3) ``Roseburg,'' Location Diagram NL 10-2, 1958 (revised 1970).

[[Page 169]]

    (c) Boundaries. The Willamette Valley viticultural area is located 
in the northwestern part of Oregon, and is bordered on the north by the 
Columbia River, on the west by the Coast Range Mountains, on the south 
by the Calapooya Mountains, and on the east by the Cascade Mountains, 
encompassing approximately 5,200 square miles (3.3 million acres). The 
exact boundaries of the viticultural area, based on landmarks and points 
of reference found on the approved maps, are as follows: From the 
beginning point at the intersection of the Columbia/Multnomah County 
line and the Oregon/Washington State line;
    (1) West along the Columbia/Multnomah County line 8.5 miles to its 
intersection with the Washington/Multnomah County line;
    (2) South along the Washington County line 5 miles to its 
intersection with the 1,000 foot contour line;
    (3) Northwest (15 miles due northwest) along the 1,000 foot contour 
line to its intersection with State Highway 47, .5 mile north of 
``Tophill'';
    (4) Then, due west from State Highway 47 one-quarter mile to the 
1,000 foot contour line, continuing south and then southwest along the 
1,000 foot contour line to its intersection with the Siuslaw National 
Forest (a point approximately 43 miles south and 26 miles west of 
``Tophill'' ), one mile north of State Highway 22;
    (5) Due south 6.5 miles to the 1,000 foot contour line on the 
Lincoln/Polk County line;
    (6) Continue along the 1,000 foot contour line (approximately 23 
miles) east, south, and then west, to a point where the Polk County line 
is intersected by the Lincoln/Benton County line;
    (7) South along Lincoln/Benton County line, 11 miles to its 
intersection with the Siuslaw National Forest line;
    (8) East along the Siuslaw National Forest line six miles, and then 
south along the Siuslaw National Forest line six miles to State Highway 
34 and the 1,000 foot contour line;
    (9) South along the 1,000 foot contour line to its intersection with 
Township line T17S/T18S (31 miles southwest, and one mile west of State 
Highway 126);
    (10) East along T17S/T18S 4.5 miles to Range line R6W/R7W, south 
along this range line 2.5 miles to the 1,000 foot contour line;
    (11) Southeast along the 1,000 foot contour line to R5W/R6W 
(approximately six miles); southeast from this point eight miles to the 
intersection of R4W/R5W and T19S/T20S;
    (12) East along T19S/T20S 1.5 miles to the 1,000 foot contour line;
    (13) Following the 1,000 foot contour line north around Spencer 
Butte, and then south to a point along the Lane/Douglas County line one-
half mile north of Interstate Highway 99;
    (14) South along the Lane/Douglas County line 1.25 miles to the 
1,000 foot contour line;
    (15) Following the 1,000 foot contour line around the valleys of 
Little River, Mosby Creek, Sharps Creek and Lost Creek to the 
intersection of R1W/R1E and State Highway 58);
    (16) North along R1W/R1E, six miles, until it intersects the 1,000 
foot contour line just north of Little Fall Creek;
    (17) Continuing along the 1,000 foot contour line around Hills 
Creek, up the southern slope of McKenzie River Valley to Ben and Kay 
Dorris State Park, crossing over and down the northern slope around Camp 
Creek, Mohawk River and its tributaries, Calapooia River (three miles 
southeast of the town of Dollar) to a point where Wiley Creek intersects 
R1E/R1W approximately one mile south of T14S/T13S;
    (18) North along R1E/R1W 7.5 miles to T12S/T13S at Cedar Creek;
    (19) West along T12S/T13S four miles to the 1,000 foot contour line;
    (20) Continuing in a general northerly direction along the 1,000 
foot contour line around Crabtree Creek, Thomas Creek, North Santiam 
River (to its intersection with Sevenmile Creek), and Little North 
Santiam River to the intersection of the 1,000 foot contour line with 
R1E/R2E (approximately one mile north of State Highway 22);
    (21) North along R1E/R2E (through a small portion of Silver Falls 
State Park) 14 miles to T6S/T7S;
    (22) East along T6S/T7S six miles to R2E/R3E;
    (23) North along R2E/R3E six miles to T5S/T6S;

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    (24) Due northeast 8.5 miles to the intersection of T4S/T5S and R4E/
R3E;
    (25) East along T4S/T5S six miles to R4E/R5E;
    (26) North along R4E/R5E six miles to T3S/T4S;
    (27) East along T3S/T4S six miles to R5E/R6E;
    (28) North along R5E/R6E 10.5 miles to a point where it intersects 
the Mount Hood National Forest boundary (approximately three miles north 
of Interstate Highway 26);
    (29) West four miles and north one mile along the forest boundary to 
the 1,000 foot contour line (just north of Bull Run River);
    (30) North along the 1,000 foot contour line, into Multnomah County, 
to its intersection with R4E/R5E;
    (31) Due north approximately three miles to the Oregon/Washington 
State line; and
    (32) West and then north, 34 miles, along the Oregon/Washington 
State line to the beginning point.

[T.D. ATF-162, 48 FR 54221, Dec. 1, 1983]



Sec.  9.91  Walla Walla Valley.

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

[T.D. ATF-441, 66 FR 11542, Feb. 26, 2001]



Sec.  9.92  Madera.

    (a) Name. The name of the viticultural area described in this 
section is ``Madera.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Madera viticultural area are eleven U.S.G.S. maps. They are 
entitled:
    (1) ``Clovis, Cal.,'' 7\1/2\ minute series, edition of 1964, 
photorevised 1972;
    (2) ``Fresno North, Cal.,'' 7\1/2\ minute series, edition of 1965, 
photorevised 1972;
    (3) ``Friant, Cal.,'' 7\1/2\ minute series, edition of 1964;
    (4) ``Lanes Bridge, Cal.,'' 7\1/2\ minute series, edition of 1964, 
photoinspected 1973;

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    (5) ``Gregg, Cal.,'' 7\1/2\ minute series, edition of 1965;
    (6) ``Madera, Cal.,'' 7\1/2\ minute series, edition of 1963;
    (7) ``Kismet, Cal.,'' 7\1/2\ minute series, edition of 1961;
    (8) ``Raynor Creek, Cal.,'' 7\1/2\ minute series, edition of 1961;
    (9) ``Fresno, Cal.,'' scaled 1:250,000, edition of 1962, revised 
1971;
    (10) ``Monterey, Cal.,'' scaled 1:250,000, edition of 1974; and
    (11) ``San Jose, Cal.,'' scaled 1:250,000, edition of 1962, revised 
1969.
    (c) Boundaries. The Madera viticultural area is located in Madera 
and Fresno Counties, California. The beginning point is found on the 
``Fresno North,'' 7\1/2\ minute series U.S.G.S. map at the point where 
the San Joaquin River intersects the section line dividing sections 20 
and 29, and sections 21 and 28, T. 12 S., R. 20 E.;
    (1) Then east approximately 6 miles following the section line and 
Shepherd Avenue to the intersection with Sunnyside Road;
    (2) Then north approximately 7 miles following Sunnyside Road and 
continuing along the section line to the point of intersection of 
section 16, 17, 20, and 21, T.11S., R 21E.;
    (3) Then west approximately 17.6 miles following the section line 
and continuing along Avenue 15 to the intersection with the Atchison, 
Topeka and Santa Fe Railroad;
    (4) Then northwest following the Atchison, Topeka and Santa Fe 
Railroad to Road 26;
    (5) Then north following Road 26 and continuing north in a straight 
line to the Chowchilla River in the ``Raynor Creek'' 7\1/2\ minute 
series U.S.G.S. map, and in the ``San Jose'' scaled 1:250,000 U.S.G.S. 
map;
    (6) Then west following the Chowchilla River to the point where the 
Madera County-Merced County boundary diverges from the river;
    (7) Then southwest following the Madera County-Merced County 
boundary to the San Joaquin River;
    (8) Then following the San Joaquin River south and east returning to 
the point of beginning.

[T.D. ATF-192, 49 FR 47833, Dec. 12, 1984; 50 FR 2782, Jan. 22, 1985, as 
amended by T.D. ATF-249, 52 FR 5960, Feb. 27, 1987]



Sec.  9.93  Mendocino.

    (a) Name. The name of the viticultural area described in this 
section is ``Mendocino.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries for the Mendocino viticultural area are seven U.S.G.S. maps. 
They are titled:
    (1) ``Willits Quadrangle, California--Mendocino Co.,'' 15 minute 
series (1961);
    (2) ``Potter Valley Quadrangle, California,'' 15 minute series 
(1960);
    (3) ``Ukiah Quadrangle, California,'' 15 minute series (1958);
    (4) ``Hopland Quadrangle, California,'' 15 minute series (1960);
    (5) ``Boonville Quadrangle, California--Mendocino Co.,'' 15 minute 
series (1959);
    (6) ``Navarro Quadrangle, California--Mendocino Co.,'' 15 minute 
series (1961);
    (7) ``Ornbaun Valley Quadrangle, California,'' 15 minute series 
(1960).
    (c) Boundaries. The ``Mendocino'' viticultural area is located 
entirely within Mendocino County, California. The beginning point is the 
southeast corner of Section 30, Township 12 North (T. 12 N.), Range 10 
West (R. 10 W.) located along the Mendocino County/Sonoma County line in 
the southeast quadrant of U.S.G.S. map ``Hopland Quadrangle.''
    (1) From the beginning point, the boundary runs north along the 
eastern boundary of Sections 30, 19, 18, 7 and 6 to the point labeled 
Jakes Cr (Jakes Creek) located at the northwest corner of Section 5, T. 
12 N., R. 10 W.;
    (2) Thence in a straight line in a northwest direction to the point 
labeled Bedford Rock in Section 3, T. 13 N., R. 11 W.;
    (3) Thence in a straight line in a northwest direction to a point 
labeled Red Mtn in Section 17, T. 14 N., R. 11 W.;
    (4) Thence in a straight line in a northwest direction to the 
southeast corner of Section 25, T. 16 N., R. 11 W.;
    (5) Thence in a straight line in a northeast direction to the 
northeast corner of Section 1, T. 16 N., R. 11 W. located along the 
Mendocino County/Lake County line;
    (6) Thence in a straight line in a northwest direction to the 
northeast corner of Section 5, T. 17 N., R. 11 W.;

[[Page 172]]

    (7) Thence in a westerly direction along the T. 18 N./T. 17 N. 
township line until it intersects with the R. 13 W./R. 12 W. range line;
    (8) Thence in a straight line in a southwest direction to the point 
labeled Eagle Rock located in Section 16, T. 15 N., R. 13 W.;
    (9) Thence in a straight line in a southeast direction to the point 
labeled Bus McGall Peak located in Section 4, T. 13 N., R. 12 W.;
    (10) Thence in a straight line in a westerly direction to an unnamed 
hilltop, elevation 2,015 feet, in the northeast corner of Section 9, T. 
13 N., R. 13 W.;
    (11) Thence in a straight line in a northwest direction to the 
junction of Baily Gulch and the South Branch, North Fork of the Navarro 
River, located in Section 8, T.15N., R.15W.;
    (12) Thence in a straight line in a southwest direction to Benchmark 
(BM) 1057 located in Section 28, T. 15 N., R. 16 W.;
    (13) Thence due south in a straight line approximately 1.4 miles to 
Greenwood Creek located in Section 33, T. 15 N., R. 16 W.;
    (14) Thence following Greenwood Creek in a generally southeasterly 
and then a northeasterly direction to where it intersects with the south 
section line of Section 16, T. 14 N., R. 15 W., approximately .2 miles 
west of Cold Springs Road;
    (15) Thence in an easterly direction along the south section lines 
of Sections 16, 15, and 14, T. 14 N., R. 15 W., to the intersection of 
the south section line of Section 14 with an unnamed creek;
    (16) Thence in a straight line in a southeasterly direction to 
Benchmark (BM) 680 located in Section 30, T. 13 N., R. 13 W.;
    (17) Thence continuing in a straight line in a southerly direction 
to the southwest corner of Section 5, T. 12 N., R. 13 W., and the 
Mendocino County/Sonoma County line;
    (18) Thence continuing in a straight line in a southeasterly 
direction to the intersection of the southwest corner of Section 32, T. 
12 N., R. 11 W., and the Mendocino County/Sonoma County line;
    (19) Thence following the Mendocino County/Sonoma County line in an 
easterly, northerly, and then an easterly direction to the beginning 
point.

[T.D. ATF-178, 49 FR 24714, June 15, 1984, as amended by T.D. ATF-397, 
63 FR 16904, Apr. 7, 1998]



Sec.  9.94  Howell Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``Howell Mountain.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Howell Mountain viticultural area are four U.S.G.S. 
topographic maps in the 7.5 minute series, as follows:
    (1) ``Detert Reservoir, CA.,'' 1959 (photorevised 1980).
    (2) ``Aetna Springs, CA.,'' 1958 (photorevised 1981).
    (3) ``Calistoga, CA.,'' 1958 (photorevised 1980).
    (4) ``St. Helena, CA.,'' 1960 (photorevised 1980).
    (c) Boundaries. The Howell Mountain viticultural area is located in 
Napa County, California, and is part of the Napa Valley viticultural 
area. The exact boundaries of the viticultural area, based on landmarks 
and points of reference found in the approved maps, as follows:
    (1) Beginning at the 1,400 foot contour line at the intersection of 
Sections 15 and 16 in R6W/T9N of the Detert Reservoir Quadrangle 
U.S.G.S. map.
    (2) Then continuing in an east and southeast direction along the 
1,400 foot contour line to the southeast corner of Section 23 in R5W/
T8N.
    (3) Then in a generally northwest direction along the 1,400 foot 
contour line until it intersects the line between Sections 21 and 22 in 
R6W/T9N.
    (4) Then north along the Section 21/22 boundary line to the starting 
point at the 1,400 foot contour line.

[T.D. ATF-163, 48 FR 57487, Dec. 30, 1983, as amended by T.D. ATF-249, 
52 FR 5960, Feb. 27, 1987]



Sec.  9.95  Clarksburg.

    (a) Name. The name of the viticultural area described in this 
section is ``Clarksburg.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of

[[Page 173]]

the Clarksburg viticultural area are eight U.S.G.S. topographic maps in 
the 7.5 minute series, as follows:
    (1) Sacramento West, Calif., 1967 (photorevised 1980).
    (2) Saxon, Calif., 1952 (photorevised 1968).
    (3) Clarksburg, Calif., 1967 (photorevised 1980).
    (4) Florin, Calif., 1968 (photorevised 1980).
    (5) Liberty Island, Calif., 1978.
    (6) Courtland, Calif., 1978.
    (7) Bruceville, Calif., 1978 (photorevised 1980).
    (8) Isleton, Calif., 1978.
    (c) Boundaries. Beginning at a point (on the Sacramento West 
topographic map) in Yolo County in T8N/R4E, at the intersection of 
Jefferson Blvd. and Burrows Ave.,
    (1) Then southwest in a straight line 1.2 miles along Jefferson 
Blvd. to the eastern bank of the Sacramento River Deep Water Ship 
Channel.
    (2) Then southwest along the Sacramento River Deep Water Ship 
Channel, approximately 17 miles to T5N/R3E, to the Class 5 trail on the 
levee connecting the Sacramento River Deep Water Ship Channel and the 
dredger cut Miner Slough, approximately 2 miles from the Solano/Yolo 
County line.
    (3) Then east along the trail to the Miner Slough.
    (4) Then east along Miner Slough to the point where it joins Sutter 
Slough, then south along Sutter Slough around the tip of Sutter Island 
to the junction of Sutter Slough and Steamboat Slough; then north around 
Sutter Island along Steamboat Slough to Section 8 in T5N/R4E where 
Steamboat Slough joins the Sacramento River.
    (5) The southeast following the Sacramento River to the point where 
the Sacramento River meets the Delta Cross Channel at the Southern 
Pacific Railroad in Section 35, T5N/R4E.
    (6) Then northeast along the Southern Pacific Railroad for 2 miles, 
to a point \1/3\ mile past the intersection of the Southern Pacific 
Railroad and the eastern branch of Snodgrass Slough.
    (7) Then east approximately 2\1/2\ miles along the levee to 
Interstate 5 (under construction).
    (8) Then north approximately 8\1/2\ miles along Interstate 5 (under 
construction, proposed, and completed) to Section 18 in T6N/R5E, at the 
intersection of Interstate 5 and Hood Franklin Road.
    (9) Then southwest along Hood Franklin Road to the Southern Pacific 
Railroad Levee, .1 mile northeast of Hood Junction.
    (10) Then north approximately 18 miles along the Southern Pacific 
Railroad Levee to Section 11 in T7N/R4E, at Freeport Blvd., and then 
across the Sacramento River at the line between Sections 11 and 14.
    (11) Then northwest along the west bank of the Sacramento River to 
Burrows Ave.
    (12) Then northwest along Burrows Ave. to the starting point at the 
intersection of Jefferson Blvd. and Burrows Ave.

[T.D. ATF-166, 49 FR 2759, Jan. 23, 1984]



Sec.  9.96  Mississippi Delta.

    (a) Name. The name of the viticultural area described in this 
section is ``Mississippi Delta.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Mississippi Delta viticultural area are three U.S.G.S. 
maps. They are titled:
    (1) Helena, scale of 1:250,000, 1955 (revised 1977).
    (2) Greenwood, scale of 1:250,000, 1953 (revised 1979).
    (3) Jackson, scale of 1:250,000, 1955 (revised 1973).
    (c) Boundary--(1) General. The Mississippi Delta viticultural area 
is located in Mississippi, Louisiana, and Tennessee. The starting point 
of the following boundary description is the intersection of the 
Illinois Central Gulf (I.C.G.) Railroad and the Mississippi River levee 
system, on the southeast side of Lake Horne, between Lake View, 
Mississippi, and Walls, Mississippi, on the Helena map.
    (2) Boundary Description. (i) From the starting point generally 
southward along the Mississippi River levee system until it again 
intersects the I.C.G. Railroad, near Twin Lake, Mississippi (about 10 
miles north of Vicksburg, on the Jackson map). In any place where there 
is more than one continuous

[[Page 174]]

levee, the one closest to the Mississippi River is the boundary.
    (ii) From the intersection described in paragraph (c)(2)(i), the 
boundary continues southward along the I.C.G. tracks, until they merge 
with another branch of the I.C.G. Railroad, near Redwood, Mississippi.
    (iii) Then generally northeastward along that other branch of the 
I.C.G. Railroad, to the Leflore County-Holmes County line (on the 
Greenwood map).
    (iv) Then southeastward along that county line to the Leflore 
County-Carroll County line.
    (v) Then generally northward along that county line to Mississippi 
Route 7.
    (vi) Then generally northeastward along Route 7 to the 
90[deg]00[min] longitude line.
    (vii) Then northward along that longitude line to Mississippi Route 
8.
    (viii) Then eastward along Route 8 to Mississippi Route 35.
    (ix) Then northward along Route 35 to Mississippi Route 322 (on the 
Helena map).
    (x) Then generally eastward along Route 322 to the Panola Quitman 
Floodway.
    (xi) Then northward along that floodway to the range line R.9W./
R.8W.
    (xii) Then northward along that range line to the 200 ft. contour 
line (north of Ballentine, Mississippi).
    (xiii) Then generally northeastward along that contour line to 
Mississippi Route 3.
    (xiv) Then northward along Route 3 to the Tunica County-Tate County 
line.
    (xv) Then northward along that county line to the Tunica County-De 
Soto County line.
    (xvi) Then northward along that county line to the I.C.G. Railroad.
    (xvii) Then northward along the I.C.G. tracks to the starting point.

[T.D. ATF-181, 49 FR 34354, Aug. 30, 1984]



Sec.  9.97  Sonoita.

    (a) Name. The name of the viticultural area described in this 
section is ``Sonoita.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of Sonoita viticultural area are seven U.S.G.S. maps. They 
are titled:
    (1) Benson Quadrangle, 15 minute series, 1958.
    (2) Fort Huachuca Quadrangle, 15 minute series, 1958.
    (3) Elgin Quadrangle, 15 minute series, 1958.
    (4) Lochiel Quadrangle, 15 minute series, 1958.
    (5) Mount Wrightson Quadrangle, 15 minute series, 1958.
    (6) Sunnyside Quadrangle, 15 minute series, 1958.
    (7) Empire Mountains Quadrangle, 15 minute series, 1958.
    (c) Bouldary--(1) General. The Sonoita viticultural area is located 
in Arizona. The starting point of the following boundary description is 
the summit of Mount Wrightson (9,543 feet) in the Santa Rita Mountains.
    (2) Boundary Description--(i) From the starting point southeastward 
in a straight line for approximately 24 miles, to the summit of Lookout 
Knob (6,171 feet) in the Canelo Hills.
    (ii) From there in a straight line eastward for approximately 10 
miles, to the summit of Huachuca Peak (8,410 feet) in the Huachuca 
Mountains.
    (iii) From there north-northwestward for approximately 21 miles in a 
straight line to the summit of Granite Peak (7,413 feet) in the 
Whetstone Mountains.
    (iv) From there west-southwestward in a straight line for 
approximately 26 miles, to the summit of Mount Wrightson (the point of 
beginning).

[T.D. ATF-189, 49 FR 43054, Oct. 26, 1984]



Sec.  9.98  Monterey.

    (a) Name. The name of the viticultural area described in this 
section is ``Monterey.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Monterey viticultural area are 36 U.S.G.S. quadrangle maps in the 
7.5 minute series, as follows:
    (1) Sycamore Flat, CA, 1956, photoinspected 1972;
    (2) Junipero Serra Peak, CA, 1949, photoinspected 1972;
    (3) Reliz Canyon, CA, 1949;
    (4) Paraiso Springs, CA, 1956;
    (5) Thompson Canyon, CA, 1949, photo-revised 1979;
    (6) Cosio Knob, CA, 1948, photoinspected 1976;

[[Page 175]]

    (7) Espinosa Canyon, CA, 1948;
    (8) San Ardo, CA, 1967;
    (9) Hames Valley, CA, 1949;
    (10) Tierra Redonda Mtn., CA, 1948;
    (11) Bradley, CA, 1949;
    (12) Wunpost, CA, 1948;
    (13) Pancho Rico Valley, CA, 1967;
    (14) Nattras Valley, CA, 1967;
    (15) San Lucas, CA, 1949;
    (16) Pinalito Canyon, CA, 1969;
    (17) North Chalone Peak, CA, 1969;
    (18) Soledad, CA, 1955;
    (19) Mount Johnson, CA, 1968;
    (20) Gonzales, CA, 1955;
    (21) Mt. Harlan Quadrangle, CA, 1968;
    (22) Natividad Quadrangle, CA, 1947, photo-revised 1968, 
photoinspected 1974;
    (23) San Juan Bautista Quadrangle, CA, 1955, photo-revised 1980;
    (24) Prunedale Quadrangle, CA, 1954, photo-revised 1981;
    (25) Watsonville East Quadrangle, CA, 1955, photo-revised 1980;
    (26) Watsonville West Quadrangle, CA, 1954, photo-revised 1980;
    (27) Moss Landing Quadrangle, CA, 1954, photo-revised 1980;
    (28) Marina Quadrangle, CA, 1947, photo-revised 1968 and 1974;
    (29) Monterey, CA, 1947, photo-revised 1968, photoinspected 1974;
    (30) Mt. Carmel, CA, 1956, photoinspected 1972;
    (31) Carmel Valley, CA, 1956, photoinspected 1974;
    (32) Spreckels, CA, 1947, photo-revised 1968, photoinspected 1975;
    (33) Chualar, CA, 1947, photo-revised 1968, photoinspected 1974;
    (34) Rana Creek, CA, 1956, photoinspected 1973; and
    (35) Palo Escrito Peak, CA, 1956;
    (36) Greenfield, CA, 1956;
    (37) Salinas, CA, 1947 (photorevised 1975); and
    (38) Seaside, CA, 1947 (photorevised 1968, photoinspected 1974).
    (c) Boundary. The Monterey viticultural area is located in Monterey 
County, California. The boundary is as follows:
    (1) The beginning point is found on the ``Sycamore Flat'' U.S.G.S. 
7.5 minute map at the junction of Arroyo Seco Road and the Jamesburg 
Road, in the southeast corner of section 21, T(ownship) 19 S., R(ange) 5 
E. (This is also the beginning point for the Arroyo Seco viticultural 
area.)
    (2) The boundary proceeds directly west along the southern boundary 
of section 21 to the southwest corner of section 21, T. 19 S., R. 5 E.
    (3) Then southeast in a straight diagonal line across section 28 to 
the southeast corner of section 28, T. 19 S., R. 5 E.
    (4) Then directly east along the southern boundaries of sections 27, 
26 and 25 in T. 19 S., R. 5 E., sections 30, 29, 28, 27, 26 and 25 in T. 
19 S., R. 6 E., and sections 30, 29, and 28 in T. 19 S., R. 7 E. to the 
southeast corner of section 28, T. 19 S., R. 7 E.
    (5) Then south along the eastern boundary of section 33 to the 
southeast corner of section 33, T. 19 S., R. 7 E.
    (6) Then southeast in a straight diagonal line across section 3 to 
the southeast corner of section 3, T. 20 S., R. 7 E.
    (7) Then south southeast in a straight diagonal line across sections 
11 and 14 to the southeast corner of section 14, T. 20 S., R. 7 E.
    (8) Then south along the western boundaries of sections 24 and 25 to 
the southwest corner of section 25, T. 20 S., R. 7 E.
    (9) Then east along the southern boundaries of sections 25 and 30 to 
the southeast corner of section 30, T. 20 S., R. 8 E.
    (10) Then southwest in a straight diagonal line across section 31 to 
the southwest corner of section 31, T. 20 S., R. 8 E.
    (11) Then west along the southern boundary of section 36, T. 20 S., 
R. 7 E., to the northwest corner of section 6, T. 21 S., R. 8 E.
    (12) Then south along the western boundaries of sections 6 and 7 to 
the southwest corner of section 7, T. 21 S., R. 8 E.
    (13) Then west along the northern boundary of section 13 to the 
northwest corner of section 13, T. 21 S., R. 7 E.
    (14) Then south along the western boundaries of sections 13 and 24 
to the southwest corner of section 24, T. 21 S., R. 7 E.
    (15) Then east northeast in a straight diagonal line across section 
24, T. 21 S., R. 7 E., and across section 19, T. 21 S., R. 8 E., to the 
northeast corner of section 19, T. 21 S., R. 8 E.

[[Page 176]]

    (16) Then northeast in a straight diagonal line across section 17 to 
the northeast corner of section 17, T. 21 S., R. 8 E.
    (17) Then southeast in a straight diagonal line across sections 16, 
22, 26 and 36 in T. 21 S., R. 8 E. and across sections 6, 8, and 16 in 
T. 22 S., R. 9 E. to the southeast corner of section 16, T. 22 S., R. 9 
E.
    (18) Then east southeast in a straight diagonal line across sections 
22, 23, 24, T. 22 S., R. 9 E., and across section 19, T. 22 S., R. 10 
E., to the southeast corner of section 19, T. 22 S., R. 10 E.
    (19) Then south southeast in a straight diagonal line across 
sections 29, 32, and 33, T. 22 S., R. 10 E., to the southeast corner of 
section 4, T. 23 S., R. 10 E.
    (20) Then south southeast in a straight diagonal line across 
sections 10, 15, 23, and 26 to the southeast corner of section 26, T. 23 
S., R. 10 E.
    (21) Then northwest in a straight diagonal line across section 26 to 
the northwest corner of section 26, T. 23 S., R. 10 E.
    (22) Then west northwest in a straight diagonal line across sections 
22, 21, 20, and 19, T. 23 S., R. 10 E. to the northwest corner of 
section 24, T. 23 S., R. 9 E.
    (23) Then southeast across sections 24, 25, 30, 31, and 32, to the 
southeast corner of section 5, T. 24 S., R. 10 E.
    (24) Then east southeast in a straight diagonal line across section 
9 to the southeast corner of section 10, T. 24 S., R. 10 E.
    (25) Then south southeast in a straight diagonal line across section 
14 to the southeast corner of section 23, T. 24 S., R. 10 E.
    (26) Then southwest in a straight diagonal line to the southwest 
corner of section 26, T. 24 S., R. 10 E.
    (27) Then south along the western boundary of section 35 to the 
southwest corner of section 35, T. 24 S., R. 10 E.
    (28) Then east along the southern boundaries of sections 35 and 36 
to the southeast corner of section 36, T. 24 S., R. 10 E.
    (29) Then north along the eastern boundaries of sections 36 and 25 
to the northeast corner of section 25, T. 24 S., R. 10 E.
    (30) Then northeast in a straight diagonal line across sections 19, 
18, and 17 to the northeast corner of section 8, T. 24 S., R. 11 E.
    (31) Then west northwest in a straight diagonal line across section 
5 to the northwest corner of section 6, T. 24 S., R. 11 E.
    (32) Then north along the line separating Range 10 E. and Range 11 
E. along the eastern boundary lines of sections 36, 25, 24, 13, 12 and 1 
in Township 23 S., and along the western boundaries of sections 36, 25, 
24, 13, 12 and 1 in Township 22 S., to the northeast corner of section 
36, T. 21 S., R. 10 E.
    (33) Then west northwest in a straight diagonal line across sections 
25, 26, 23, 22, 15, 16 and 9 to the northwest corner of section 8, T. 21 
S., R. 10 E.
    (34) Then northwest in a straight diagonal line to the northwest 
corner of section 6, T. 21 S., R. 10 E.
    (35) Then west along the northern boundary of section 1, T. 21 S., 
R. 9 E. to the southeast corner of section 36, T. 20 S., R. 9 E.
    (36) Then northwest in a straight diagonal line across sections 36, 
26, 22, 16, 8, and 6 in T. 20 S., R. 9 E. to the northwest corner of 
section 6, T. 20 S., R. 9 E.
    (37) Then north along the line separating Range 8 E. and Range 9 E. 
along the western boundaries of sections 36, 25, 24, 13, 12, and 1, T. 
19S., R. 8 E. to the northeast corner of section 1, T. 19 S., R. 9 E.
    (38) Then northwest in a straight diagonal line to the point of 
intersection of the boundary line separating R. 7 E. and R. 8 E. and the 
boundary line separating T. 17 S. and T. 18 S.
    (39) Then west along the northern boundaries of sections 1 and 2 to 
the northwest corner of section 2, T. 18 S., R. 7 E.
    (40) Then northwest in a straight diagonal line across section 34 to 
the northwest corner of section 34, T. 17 S., R. 7 E.
    (41) Then west along the southern boundaries of sections 28 and 29 
to the southwest corner of section 29, T. 17 S., R. 7 E.
    (42) Then northwest in a straight diagonal line across sections 30, 
24, 14, 10

[[Page 177]]

and 4 to the northwest corner of section 4, T. 17 S., R. 6 E.
    (43) Then north northeast in a straight line across the easternmost 
portion of section 32 to the northeast corner of section 32, T. 16 S., 
R. 6 E.
    (44) Then north along the eastern boundary of section 29 to the 
northeast corner of section 29, T. 16 S., R. 6 E.
    (45) Then northwest in a straight diagonal line across section 20 to 
the northwest corner of section 20, T. 16 S., R. 6 E.
    (46) Then west northwest in a straight diagonal line across sections 
18 and 13 to the northwest corner of section 13, T. 16 S., R. 5 E.
    (47) Then north northwest in a straight diagonal line across 
sections 11 and 2 to the northwest corner of section 2, T. 16 S., R. 5 
E.
    (48) Then west along the southern boundaries of section 34 and 33 to 
the southwest corner of section 33, T. 15 S., R. 5 E.
    (49) Then north along the western boundary of section 33, T. 15 S., 
R. 5 E., in a straight line for approximately 0.5 mile to the 
intersection with the Chualar Land Grant boundary at the northwestern 
corner of section 33, T. 15 S., R. 5 E.
    (50) Then northeast in a straight diagonal line across the Chualar 
Land Grant and section 27 to the northeast corner of section 27, T. 15 
S., R. 5 E.
    (51) Then northwest in a straight diagonal line across section 22 to 
the northwest corner of section 22, T. 15 S., R. 5 E.
    (52) Then west in a straight line along the southern boundaries of 
sections 16 and 17, T. 15 S., R. 5 E., to the southwest corner of 
section 17 where it intersects with the Encinal Y Buena Esperanza Land 
Grant boundary.
    (53) Then north and then west along the eastern boundary of the 
Encinal Y Buena Esperanza Land Grant and the western boundaries of 
sections 21, 17, 8, and 7, T. 15 S., R. 5 E.
    (54) Then in a straight line from the northwest corner of the 
Encinal Y Buena Esperanza Land Grant boundary and section 7, T. 15 S., 
R. 5 E. in a west northwest direction to the point where the power 
transmission line (with located metal tower) intersects at the western 
boundary of the Cienega del Gabilan Land Grant and the eastern boundary 
of the El Alisal Land Grant, T. 14 S., R. 4 E.
    (55) Then north and then northwest along the boundary line between 
the Cienega del Gabilan Land Grant and El Alisal Land Grant to the 
westernmost corner of the Cienega del Gabilan Land Grant, T. 14 S., R. 4 
E.
    (56) Then west along the boundary line between the Sausal Land Grant 
and La Natividad Land Grant to the point where the boundary line 
intersects Old Stage Road.
    (57) Then north along Old Stage Road to the point where Old Stage 
Road intersects the Monterey County--San Benito County line, T. 13 S., 
R. 4 E.
    (58) Then northwest along the Monterey County--San Benito County 
line to the point near the Town of Aromas where the boundary lines of 
the counties of Monterey, Santa Cruz, and San Benito meet, T. 12 S., R. 
3 E.
    (59) Then in a meandering line along the Monterey County--Santa Cruz 
County line east then southeast to the Pacific Ocean, T. 12 S., R. 1 E.
    (60) Then south along the coastline of Monterey Bay to its 
intersection with the northwesternmost boundary of Fort Ord Military 
Reservation, T. 14 S., R. 1 E.
    (61) Then following the boundry line of the Fort Ord Military 
Reservation in an irregular line generally east, then south, then west 
to the point where the boundary line of the military reservation meets 
the Pacific Ocean, T. 15 S., R. 1 E.
    (62) Then following the coastline of the Monterey Peninsula south 
along the coastline of Carmel Bay to Carmel Point, the northwesternmost 
point of Point Lobos State Reserve on the Carmel Peninsula.
    (63) Then southeast in a straight diagonal line to the southwestern 
corner of section 25, T. 16 S., R. 1 W.
    (64) Then east along the southern boundaries of section 25, T. 16 
S., R. 1 W., and sections 30 and 29, T. 16 S., R. 1 E., to the 
southeastern corner of section 29 where it intersects with the 
southwestern boundary of the El Potrero de San Carlos Land Grant.
    (65) Then southeast along the southwestern boundary line of the El 
Potrero de San Carlos Land Grant to

[[Page 178]]

the southeastern corner of section 33, T. 16 S., R. 1 E.
    (66) Then east along the line separating Township 16 S. and Township 
17 S. and across Pinyon Peak to the southeast corner of section 32, T. 
16 S., R. 2 E. (This is the beginning and ending point of the boundary 
of Carmel Valley viticultural area.)
    (67) Then continuing east along the line separating Township 16 S. 
from Township 17 S. to its point of intersection with the line 
separating Range 2 E. and Range 3 E.
    (68) Then north along the western boundaries of sections 31, 30, 19, 
18, 7 and 6 in T. 16 S., R. 3 E. to the southwestern corner of section 
31, T. 15 S., R. 3 E.
    (69) Then in a straight diagonal line east northeast across sections 
31, 32 and 33, T. 15 S., R. 3 E. to the southeast corner of section 28, 
T. 15 S., R. 3 E.
    (70) Then southeast in a straight diagonal line along the eastern 
boundaries of sections 33 and 34, T. 15 S., R. 3 E., and sections 3, 2, 
12, 16, 20, 21, and 28, T. 16 S., R. 4 E., to the point where the 
eastern boundary line of section 28 intersects the boundary line of the 
Guadalupe Y Llanitos de Los Correos Land Grant.
    (71) Then south to the southwest corner of section 34, T. 16 S., R. 
4 E.
    (72) Then east to the northwest corner of section 2, T. 17 S., R. 4 
E.
    (73) Then south along the eastern boundary of section 3 to the 
southeast corner of section 3, T. 17 S., R. 4 E.
    (74) Then southeast in a straight diagonal line across sections 11, 
13, 19, and 29, to the southeast corner of section 29, T. 17 S., R. 5 E.
    (75) Then south along the western boundary of section 33 to the 
southwest corner of section 33, T. 17 S., R. 5 E.
    (76) Then east along the southern boundary of section 33 to the 
northeast corner of section 4, T. 18 S., R. 5 E.
    (77) Then southeast in a diagonal line acros sections 3 and 11 to 
the southeast corner of section 11, T. 18 S., R. 5 E.
    (78) Then south along the western boundary of section 13 to the 
southwest corner of section 13, T. 18 S., R. 5 E.
    (79) Then southeast in a diagonal line across section 24 to the 
southeast corner of section 24, T. 18 S., R. 5 E.
    (80) Then south along the western boundaries of section 30 and 31 to 
the southwest corner of section 31, T. 18 S., R. 6 E.
    (81) Then east along the southern boundaries of sections 31 and 32 
to the southeast corner of section 32, T. 18 S., R. 6 E. (From this 
point, the Monterey and Arroyo Seco viticultural areas share the same 
boundary lines.)
    (82) Then south along the eastern boundaries of sections 5, 8, and 
17 to Arroyo Seco Road, T. 19 S., R. 6 E.
    (83) Then southwest in a straight line for approximately 1.0 mile to 
Benchmark 673, T. 19 S., R. 6 E.
    (84) Then west in a straight line for approximately 1.8 miles to 
Bench Mark 649.
    (85) Then northwest in a straight line for approximately 0.2 mile to 
the northeast corner of section 23, T. 19 S., R. 5 E.
    (86) Then west following the northern boundaries of sections 23 and 
22 to the northwest corner of section 22, T. 19 S., R. 5 E.
    (87) Then south in a straight line along the western boundary of 
section 22 to the point of beginning.

[T.D. ATF-178, 49 FR 24718, June 15, 1984, as amended by T.D. ATF-249, 
52 FR 5960, Feb. 27, 1987]



Sec.  9.99  Clear Lake.

    (a) Name. The name of the viticultural area described in this 
section is ``Clear Lake.''
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Clear Lake viticultural area are four U.S.G.S. maps. 
The maps are titled as follows:
    (1) ``Lower Lake Quadrangle, California,'' 15 minute series, 1958;
    (2) ``Clearlake Oaks Quadrangle, California,'' 15 minute series, 
1960;
    (3) ``Lakeport Quadrangle, California,'' 15 minute series, 1958;
    (4) ``Kelseyville Quadrangle, California,'' 15 minute series, 1959.
    (c) Boundaries. The Clear Lake viticultural area is located in 
southwestern Lake County, California. The descriptive boundaries of the 
viticultural area, using landmarks and points of reference on the 
applicable U.S.G.S. maps, are as follows:


[[Page 179]]


    Lower Lake Quadrangle Map (15 minute series); From the beginning 
point on Mt. Hannah in Section 16, Township 12 North (T12N), Range 8 
West (R8W), identified as having an elevation of 3,978 feet, the 
boundary runs--
    (1) East-southeasterly in a straight line to the point on Seigler 
Mountain in Section 23, T12N/R8W, identified as having an elevation of 
3,692 feet;
    (2) Then east-southeasterly in a straight line to the point on 
Childers Peak in Section 34, T12N/R7W, identified as having an elevation 
of 2,188 feet;
    (3) Then east-northeasterly in a straight line to the point on the 
southeast corner of Section 25, T12N/R7W;
    (4) Then northeasterly in a straight line to the point in Section 
16, T12N/R6W, identified as being the ``Baker Mine;''
    (5) Then northwesterly in a straight line to the point at the 
southeast corner of Section 23, T13N/R7W;
    (6) Then northerly along the east line of Sections 23, 14, 11, and 
2, to the point at the northeast corner of Section 2, T13N/R7W, on the 
Clearlake Oaks Quadrangle map;
    Clearlake Oaks Quadrangle Map (15 minute series); Continuing from 
the northeast corner of Section 2, T13N/R7W--
    (7) Then northwesterly in a straight line to the point in Section 
21, T14N/R7W, at the top of Round Mountain
    (8) Then northwesterly in a straight line to the southeast corner of 
Section 4, T14N/R8W;
    Lakeport Quadrangle Map (15 minute series); Continuing from the 
southeast corner of Section 4, T14N/R8W, on the Clearlake Oaks 
Quadrangle Map--
    (9) Then northwesterly on the Lakeport Quadrangle in a straight line 
to a point on Charlie Alley Peak in Section 28, T16N/R9W, identified as 
having an elevation of 3,482 feet;
    (10) Then westerly in a straight line to a point on Hells Peak in 
Section 29, T16N/R10W, identified as having an elevation of 2,325 feet;
    (11) The southeasterly in a straight line to a point on Griner Peak 
in Section 23, T15N/R10W, identified as having an elevation of 2,132 
feet;
    (12) Then southwesterly in a straight line to a point on Scotts 
Mountain in Section 8, T14N/R10W, identified as having an elevation of 
2,380 feet;
    (13) Then southeasterly in a straight line to a point on Lakeport 
Peak in Section 35, T14N/R10W, identified as having an elevation of 
2,180 feet;
    Kelseyville Quadrangle Map (15 minute series); Continuing from 
Lakeport Peak in Section 35, T14N/R10W, on the Lakeport Quadrangle Map--
    (14) Then southeasterly in a straight line to the point at the 
southwest corner of Section 1, T13N/R10W;
    (15) Then south by southeast in a straight line to the point at the 
southeast corner of Section 36, T13N/R10W;
    (16) Then south by southeasterly in a straight line to the point at 
the southwest corner of Section 18, T12N/R8W;
    (17) Then east by northeast in a straight line to the beginning 
point at Mount Hannah, Section 16, T12N/R8W, on the Lower Lake 
Quadrangle Map.

[T.D. ATF-174, 49 FR 19468, May 8, 1984]



Sec.  9.100  Mesilla Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Mesilla Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of Mesilla Valley viticultural area are 15 U.S.G.S. 
quadrangle 7.5 minute series maps. They are entitled:
    (1) ``Anthony, N. Mex.-Tex.,'' 7.5 minute series, edition of 1955;
    (2) ``Bishop Cap, N. Mex.,'' 7.5 minute series, edition of 1955;
    (3) ``Black Mesa, N. Mex.,'' 7.5 minute series, edition of 1978;
    (4) ``Canutillo, Tex.-N. Mex.,'' 7.5 minute series, edition of 1955 
(photorevised 1967);
    (5) ``Dona Ana, N. Mex.,'' 7.5 minute series, edition of 1978;
    (6) ``La Mesa, N. Mex.,'' 7.5 minute series, edition of 1955;
    (7) ``La Union, N. Mex.-Tex.'' 7.5 minute series, edition of 1955;
    (8) ``Las Cruces, N. Mex.,'' 7.5 minute series, edition of 1978;
    (9) ``Leasburg, N. Mex.,'' 7.5 minute series, edition of 1978;
    (10) ``Little Black Mountain, N. Mex.,'' 7.5 minute series, edition 
of 1978;
    (11) ``Picacho Mountain, N. Mex.,'' 7.5 minute series, edition of 
1978;
    (12) ``San Miguel, N. Mex.,'' 7.5 minute series, edition of 1955;
    (13) ``Smeltertown, Tex.-N. Mex.,'' 7.5 minute series, edition of 
1955 (photorevised 1967 and 1973);
    (14) ``Strauss, N. Mex.-Tex.,'' 7.5 minute series, edition of 1955; 
and
    (15) ``Tortugas Mountain, N. Mex.,'' 7.5 minute series, edition of 
1955.
    (c) Boundaries. The Mesilla Valley viticultural area is located 
within Dona Ana County, New Mexico, and El Paso County, Texas. The 
boundaries are as follows: The beginning point is at the Faulkner Canyon 
on the

[[Page 180]]

``Leasburg, N. Mex.'' U.S.G.S. map at the northwest corner of Section 
15, Township 21 South (T21S), Range 1 West (R1W).
    (1) From the beginning point, the boundary runs east 3.7 miles along 
the north section line until it converges with the 4,200 foot elevation 
contour line at Section 18, T21S/R1E;
    (2) Then it runs southeasterly 31 miles along the 4,200 foot 
elevation contour line to a point approximately 3.5 miles south of 
Bishop Cap where it intersects the Fort Bliss Military Reservation 
boundary at the northeast portion of Section 13, T25S/R3E on the 
``Bishop Cap, N. Mex.'' U.S.G.S. map;
    (3) Then it follows the Fort Bliss Military Reservation boundary 
south for approximately 3.7 miles and east approximately .8 mile to the 
intersection with the 4,200 foot elevation contour line at the southeast 
portion of Section 6, T26S/R4E on the ``Anthony, N. Mex.-Tex.'' U.S.G.S. 
map;
    (4) Then it runs south along the 4,200 foot elevation contour line 
for approximately 20 miles until it intersects the La Mesa Road (Mesa 
Avenue) in the city limits of El Paso, Texas, on the ``Smeltertown, 
Tex.-N. Mex.'' U.S.G.S. map;
    (5) Then it heads south on the La Mesa Road (Mesa Avenue) for 1.2 
miles until it meets Executive Center Boulevard that goes to La Guna/
Smeltertown;
    (6) Then it travels in a southwesterly direction for 1.1 miles on 
Executive Center Boulevard to La Guna/Smeltertown until it crosses the 
Southern Pacific Railroad tracks at Smeltertown, Texas;
    (7) Then it proceeds back into New Mexico northwesterly along the 
Southern Pacific Railroad tracks approximately 12.5 miles to a point 
near the switch yards at Strauss, New Mexico, where it intersects the 
4,100 foot elevation contour line at the center of Section 24, T28S/R2E 
on the ``Strauss, N. Mex.-Tex.'' U.S.G.S. map;
    (8) Then it follows the 4,100 foot elevation contour line in a 
northwesterly direction for 17 miles until it intersects with the south 
section line of Section 29, T25S/R2E, on the ``Little Black Mountain, N. 
Mex.'' U.S.G.S. map;
    (9) Then it runs westerly approximately .5 mile along the south 
section line until it meets the 4,150 foot elevation contour line at 
Section 29, T25S/R2E;
    (10) Then it follows the 4,150 foot elevation contour line northward 
for 15 miles until it meets with Interstate Highway 70/80/180 at the 
southeast corner of Section 19, T23S/R1E, on the ``Las Cruces, N. Mex.'' 
U.S.G.S. map;
    (11) Then it runs southwest along Interstate Highway 70/80/180 for 
approximately .9 mile until it reaches the 4,200 foot elevation contour 
line at the northwest corner of Section 30, T23S/R1E, on the ``Picacho 
Mt., N. Mex.'' U.S.G.S. map;
    (12) Then it meanders in a northerly direction on the 4,200 foot 
elevation contour line for 15 miles until it reaches the section line at 
the southwest corner of Section 15, T21S/R1W on the ``Leasburg, N. 
Mex.'' U.S.G.S. map;
    (13) Then finally it goes north along the section line to Faulkner 
Canyon until it meets with the northwest corner of Section 15, T21S/R1W, 
which is the beginning point.

[T.D. ATF-197, 50 FR 6163, Feb. 14, 1985]



Sec.  9.101  The Hamptons, Long Island.

    (a) Name. The name of the viticultural area described in this 
section is ``The Hamptons, Long Island.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of ``The Hamptons, Long Island'' viticultural area are 5 
U.S.G.S. maps. They are entitled:
    (1) ``Riverhead, N.Y.,'' 7.5 minute series, scaled at 1:24,000, 
edition of 1956;
    (2) ``Eastport, N.Y.,'' 7.5 minute series, scaled at 1:24,000, 
edition of 1956;
    (3) ``New York, N.Y.; N.J.; Conn., U.S. 1:250,000 series, scaled at 
1:250,000, edition of 1960, revised 1979;
    (4) ``Providence, R.I.; Mass.; Conn.; N.Y., U.S. 1:250,000 series, 
scaled at 1:250,000, edition of 1947, revised 1969, and
    (5) ``Hartford, Conn.; N.Y.; N.J.; Mass., U.S. 1:250,000 series, 
scaled at 1:250,000, edition of 1962, revised 1975.
    (c) Boundaries. The boundaries of the viticultural area are as 
follows: ``The Hamptons, Long Island'' viticultural area is located 
entirely within eastern Suffolk County, Long Island, New

[[Page 181]]

York. The viticultural area boundaries consist of all of the land areas 
of the South Fork of Long Island, New York, including all of the 
beaches, shorelines, islands and mainland areas in the Townships of 
Southampton and East Hampton (including Gardiners Island). The beginning 
point is found on the ``Riverhead, N.Y.'' U.S.G.S. map on the Peconic 
River about 2 miles east of Calverton where the Townships of Riverhead, 
Brookhaven and Southampton meet:
    (1) The boundary travels south approximately 10 miles along the 
Southampton/Brookhaven Township line until it reaches the dunes on the 
Atlantic Ocean near Cupsogue Beach on the ``Eastport, N.Y.'' U.S.G.S. 
map.
    (2) Then the boundary proceeds east and west along the beaches, 
shorelines, islands and mainland areas of the entire South Fork of Long 
Island described on the ``New York,'' ``Providence,'' and ``Hartford'' 
U.S.G.S. maps until it reaches the Peconic River near Calverton at the 
beginning point. These boundaries consist of all of the land found in 
the Townships of Southampton and East Hampton (including Gardiners 
Island).

[T.D. ATF-205, 50 FR 20413, May 16, 1985, as amended by T.D. ATF-344, 58 
FR 40354, July 28, 1993]



Sec.  9.102  Sonoma Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``Sonoma Mountain.''
    (b) Approved maps. The approved maps for determining the boundary of 
the Sonoma Mountain viticultural area are 2 U.S.G.S. topographic maps in 
the 7.5 minute series, as follows:
    (1) Glen Ellen, Calif., dated 1954, photorevised 1980; and
    (2) Kenwood, Calif., dated 1954, photorevised 1980.
    (c) Boundary. The Sonoma Mountain viticultural area is located in 
Sonoma County, California. The boundary is as follows:
    (1) The beginning point is the northern most point at which the 
1600-foot contour line crosses the section line dividing section 22 from 
section 23, in Township 6 North, Range 7 West.
    (2) The boundary follows this section line north to the 800-foot 
contour line.
    (3) The boundary follows the 800-foot contour line westerly, 
easterly, and northerly to Bennett Valley Road.
    (4) The boundary follows Bennett Valley Road easterly to Enterprise 
Road.
    (5) The boundary follows Enterprise Road southeasterly to an unnamed 
stream, in Section 7, Township 6 North, Range 7 West, which crosses 
Enterprise Road near the point at which the road turns from an easterly 
to a southerly direction.
    (6) The boundary follows this stream easterly to the 400-foot 
contour line.
    (7) The boundary follows the 400-foot contour line southerly to the 
township line dividing Township 6 North from Township 5 North.
    (8) The boundary follows a straight line extension of this township 
line west to the 1200-foot contour line.
    (9) The boundary follows the 1200-foot contour line northwesterly to 
the range line dividing Range 6 West from Range 7 West.
    (10) The boundary follows this range line south to the 1600-foot 
contour line.
    (11) The boundary follows this contour line westerly to the 
beginning point.

[T.D. ATF-196, 50 FR 2979, Jan. 23, 1985, as amended by T.D. ATF-249, 52 
FR 5960, Feb. 27, 1987]



Sec.  9.103  Mimbres Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Mimbres Valley.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Mimbres Valley viticultural area are 28 U.S.G.S. 
quadrangle maps (26-7.5 minute series and 2-15 minute series). They are 
entitled:
    (1) ``Akela, N. Mex.,'' 7.5 minute series, edition of 1972;
    (2) ``Antelope Hill, N. Mex.,'' 7.5 minute series, edition of 1963 
(photoinspected 1974);
    (3) ``Bisbee Hills, N. Mex.,'' 7.5 minute series, edition of 1965;
    (4) ``Bowlin Ranch, N. Mex.,'' 7.5 minute series, edition of 1965;
    (5) ``Capital Dome, N. Mex.,'' 7.5 minute series, edition of 1965;
    (6) ``Carne, N. Mex.,'' 7.5 minute series, edition of 1965;

[[Page 182]]

    (7) ``Columbus, N. Mex.,'' 7.5 minute series, edition of 1965;
    (8) ``Columbus NE, N. Mex.,'' 7.5 minute series, edition of 1966;
    (9) ``Columbus SE, N. Mex.,'' 7.5 minute series, edition of 1966;
    (10) ``Deming East, N. Mex.,'' 7.5 minute series, edition of 1965;
    (11) ``Deming West, N. Mex.,'' 7.5 minute series, edition of 1964 
(photoinspected 1972);
    (12) ``Dwyer, N. Mex.,'' 15 minute series, edition of 1956;
    (13) ``Faywood Station, N. Mex.,'' 7.5 minute series, edition of 
1947;
    (14) ``Florida Gap, N. Mex.,'' 7.5 mintue series, edition of 1964;
    (15) ``Goat Ridge, N. Mex.,'' 7.5 minute series, edition of 1964;
    (16) ``Gym Peak, N. Mex.,'' 7.5 minute series, edition of 1964;
    (17) ``Hermanas, N. Mex.,'' 7.5 minute series, edition of 1964;
    (18) ``Malpais Hill, N. Mex.,'' 7.5 minute series, edition of 1965;
    (19) ``Midway Butte, N. Mex.,'' 7.5 minute series, edition of 1965;
    (20) ``Myndus, N. Mex.,'' 7.5 minute series, edition of 1972;
    (21) ``North Peak, N. Mex.,'' 7.5 minute series, edition of 1965;
    (22) ``Red Mountain, N. Mex.,'' 7.5 minute series, edition of 1965;
    (23) ``San Lorenzo, N. Mex.,'' 15 minute series, edition of 1956;
    (24) ``Sibley Hole, N. Mex.,'' 7.5 minute series, edition of 1972;
    (25) ``South Peak, N. Mex.,'' 7.5 minute series, edition of 1965;
    (26) ``Spalding, N. Mex.,'' 7.5 minute series, edition of 1964;
    (27) ``West Lime Hills, N. Mex.,'' 7.5 minute series, edition of 
1965; and
    (28) ``Williams Ranch, N. Mex.,'' 7.5 minute series, edition of 
1964.
    (c) Boundaries. The Mimbres Valley viticultural area is located 
within Grant and Luna Counties, New Mexico. The boundaries are as 
follows: The beginning point is located at Faywood Station on an 
unimproved dirt road at benchmark 4911 in Luna County, New Mexico on the 
northern part of Section 2, Township 21 South (T21S), Range 12 West 
(R12W) on the Faywood Station Quadrangle U.S.G.S. map;
    (1) From the beginning point the boundary runs northeast 2.25 miles 
along an unimproved dirt road until it intersects U.S. Routh 180 
(indicated on map as U.S. Rte. 260) at New Mexico Highway 61 (indicated 
on map as an unnumbered secondary highway) at the south portion of Sec. 
30, T20S/R11W;
    (2) The boundary proceeds in a generally northerly direction on N.M. 
Hwy. 61 for 34.5 miles crossing over U.S. Rte. 90 (indicated on map as 
U.S. Rte. 180) west of San Lorenzo, N.M. until it meets an unimproved 
dirt road near Bear Canyon Dam at the west line of Sec. 28, T16S/R11W on 
the San Lorenzo, N. Mex. U.S.G.S. map;
    (3) It then heads east on the unimproved dirt road for .2 mile until 
it meets the Mimbres River at Sec. 28, T16S/R11W;
    (4) It then goes south on the Mimbres River for .25 mile until it 
intersects the 6,000 foot elevation contour line at Sec. 28, T16S/R11W;
    (5) From there the boundary runs south along the 6,000 foot 
elevation contour line until it meets the east line of Sec. 11, T17S/
R11W;
    (6) Then it proceeds south on the section line for .6 mile until it 
hits the south line of Sec. 12, T17S/R11W;
    (7) Then it travels east on the section line for 1.8 miles until it 
intersects an unimproved dirt road in Noonday Canyon on the north line 
of Sec. 18, T17S/R10W;
    (8) It then heads south on the unimproved dirt road for 2.2 miles 
until it intersects a medium duty road at the northern part of Sec. 30, 
T17S/R10W;
    (9) The boundary goes south on the medium duty road for .8 mile 
until it reaches the north line of Sec. 31, T17S/R10W;
    (10) The boundary goes east 5 miles on the section line to the east 
line of Sec. 36, T17S/R10W;
    (11) The boundary proceeds south on the section line for 13 miles to 
the south line of Sec. 36 (also indicated on map as Luna/Grant Country 
line), T19S/R10W on the Dwyer, N. Mex. U.S.G.S. map;
    (12) The boundary travels west on the Luna/Grant County line for 
three miles to the east line of Sec. 4, T20S/R10W;
    (13) The boundary goes south on the section line for three miles to 
the south line of Sec. 16, T20S/R10W;
    (14) Then it goes west on the section line for approximately .6 mile 
to a

[[Page 183]]

light duty road located 500 feet south of Benchmark 5119 on the south 
line of Sec. 16, T20S/R10W;
    (15) The boundary heads south on the light duty road for 
approximately 10.25 miles until it meets Hwy. 180 at Benchmark 4672 near 
the west line of Sec. 9, T22S/R10W on the Spalding, N. Mex. U.S.G.S. 
map;
    (16) Then it proceeds southeasterly on Hwy. 180 for approximately 5 
miles to the north line of Sec. 6, T23S/R9W on the Deming West, N. Mex. 
U.S.G.S. map;
    (17) It then goes east on the section line approximately 11.75 miles 
to the east line of Sec. 1, T23S/R8W on the Carne, N. Mex. U.S.G.S. map;
    (18) It then travels south on the section line for 1.5 miles until 
it meets an unimproved dirt road at Sec. 12, T23S/R8W;
    (19) It follows the unimproved dirt road in an easterly direction 
for 3 miles to Carne Windmill at the northeast part of Sec. 17, T23S/
R7W;
    (20) From there it follows an unimproved dirt road in a 
southeasterly direction for .75 mile until it meets the south line of 
Sec. 16, T23S/R7W;
    (21) Then it proceeds east along the section line for 9 miles until 
it arrives at the east line of Sec. 24, T23S/R6W on the Myndus, N. Mex. 
U.S.G.S. map;
    (22) Then it goes south on the section line for 15 miles until it 
meets the south line of Sec. 36, T25S/R6W on the Sibley Hole, N. Mex. 
U.S.G.S. map;
    (23) Then it heads west on the section line for 8 miles until it 
intersects the 4,200 foot elevation contour line at the southeast corner 
of Sec. 34, T25S/R7W on the Gym Peak, N. Mex. U.S.G.S. map;
    (24) Then it heads north on the 4,200 foot elevation contour line 
for 11 miles until it meets N.M. Hwy. 549 (indicated on map as U.S. Rte. 
70/80/180) at the southwest corner of Sec. 5, T24S/R7W on the Florida 
Gap, N. Mex. U.S.G.S. map;
    (25) The boundary heads west on M.M. Hwy. 549 (indicated on map as 
U.S. Rte. 70/80/180) for 4.5 miles until it meets the light duty road at 
the east line of Sec. 3, T24S/R8W on the Capital Dome, N. Mex. U.S.G.S. 
map;
    (26) It then goes south on the light duty road/section line for 4 
miles until it meets another light duty road at the south line of Sec. 
22, T24S/R8W;
    (27) Then the boundary heads west for 2 miles on the light duty 
road/section line until it intersects an unimproved dirt road at the 
east line of Sec. 29, T24S/R8W;
    (28) Then it travels south on the unimproved dirt road/section line 
for 2 miles until it meets another unimproved dirt road at the south 
line of Sec. 32, T24S/R8W;
    (29) It then moves west .25 mile on the unimproved dirt road until 
it reaches the east line of Sec. 5, T25S/R8W;
    (30) Then it goes south on the section line for 6 miles until it 
reaches an unimproved dirt road near Crawford Ranch at the north line of 
Sec. 5, T25S/R8W on the South Peak, N. Mex. U.S.G.S. map;
    (31) Then it follows the unimproved dirt road in a southwest then 
southern direction for approximately 3 miles until it hits the north 
line of Sec. 19, T26S/R8W;
    (32) It then travels east for 1.1 mile along the section line until 
it hits the east line of Sec. 20, T26S/R8W;
    (33) From there it proceeds south for 2 miles on the section line 
until it intersects the north line of Sec. 33, T26S/R8W;
    (34) It then heads east for 5 miles on the section line until it 
intersects the east line of Sec. 31, T26S/R7W on the Gym Peak, N. Mex. 
U.S.G.S. map;
    (35) The boundary goes south on the section line for 7 miles until 
it meets the north line of Sec. 5 (which also is a light duty road), 
T28S/R7W on the Columbus NE, N. Mex. U.S.G.S. map;
    (36) Then it goes east for 4 miles on the section line until it 
meets the east line of Sec. 2 near Oney Tank T28S/R7W;
    (37) Then it goes south on the section line for 8.7 miles until it 
meets the New Mexico, U.S.A./Mexico International border at the east 
line of Sec. 17, T29S/R7W on the Columbus SE, N. Mex. U.S.G.S. map;
    (38) The boundary follows in a westerly direction along the 
International border for 23 miles to the west line of Sec. 18, T29S/R10W 
on the Hermanas, N. Mex. U.S.G.S. map;

[[Page 184]]

    (39) It then heads north on the western section for 3.5 miles to the 
north line of Sec. 31, T28S/R10W;
    (40) It then moves east for 13 miles on the section line until it 
intersects the east line of Sec. 32, T28S/R8W on the Columbus, N. Mex. 
U.S.G.S. map;
    (41) Then it follows the section line north for 8 miles until it 
meets the south line of Sec. 18, T27S/R8W on the North Peak, N. Mex. 
U.S.G.S. map;
    (42) Then it proceeds west on the section line for 11 miles to the 
west part of Sec. 16 identified as longitude point 107 degrees, 52 
minutes, 30 seconds, T27S/R10W on the West Lime Hills, N. Mex. U.S.G.S. 
map;
    (43) Then it moves north on the 107 degrees, 52 minutes, 30 seconds 
longitude point for 9 miles until it intersects the north line of Sec. 
4, T26S/R10W on the Midway Butte, N. Mex. U.S.G.S. map;
    (44) Then it goes west on the section line for 6.5 miles until it 
meets the west line of Sec. 33, T25S/R11W on the Bisbee Hills, N. Mex. 
U.S.G.S. map;
    (45) The boundary then travels north on the section line for 26.5 
miles (crossing the Southern Pacific Railroad tracks) until it 
intersects with the Atchison, Topeka and Santa Fe Railroad tracks on the 
west line of Sec. 21, T21S/R11W on the Spalding, N. Mex. U.S.G.S. map;
    (46) Finally it follows the Atchison, Topeka and Santa Fe Railroad 
tracks in a northwesterly direction for 5 miles until it reaches the 
beginning point at benchmark 4911 on an unimproved dirt road in Faywood 
Station at Sec. 2, T21S/R12W on the Faywood Station, N. Mex. U.S.G.S. 
map.

[T.D. ATF-217, 50 FR 48081, Nov. 21, 1985]



Sec.  9.104  South Coast.

    (a) Name. The name of the viticultural area described in this 
section is ``South Coast.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of South Coast viticultural area are four U.S.G.S. maps. They 
are titled:
    (1) San Diego, 1:250,000 series, 1958 (revised 1978).
    (2) Santa Ana, 1:250,000 series, 1959 (revised 1979).
    (3) Long Beach, 1:250,000 series, 1957 (revised 1978).
    (4) Wildomar Quadrangle, 7.5 minute series, 1953 (photorevised 
1973).
    (c) Boundary--(1) General. The South Coast viticultural area is 
located in California. The starting point of the following boundary 
description is the northern intersection of the Orange County line with 
the Pacific Ocean (on the Long Beach map).
    (2) Boundary Description. (i) From the starting point generally 
northeastward, eastward, and southeastward along the Orange County line, 
to the intersection of that county line with the township line on the 
northern border of Township 7 South (in Range 6 West; on the Santa Ana 
map).
    (ii) From there eastward along that township line to its 
intersection with the northern boundary of the Temecula viticultural 
area described in Sec.  9.50; at this point, the Temecula viticultural 
area boundary coincides with the boundary of the Cleveland National 
Forest (on the Wildomar Quadrangle map).
    (iii) From there following the northern boundary of the Temecula 
viticultural area, at and near its northernmost point, generally 
northeastward, eastward, and southeastward until the Temecula 
viticultural area boundary again intersects the township line on the 
northern border of Township 7 South (in Range 4 West; thus all of the 
Temecula viticultural area is included inside of South Coast 
viticultural area).
    (iv) Then eastward, along the township line on the northern border 
of Township 7 South, to the San Bernardino Meridian (on the Santa Ana 
map).
    (v) Then southward along the San Bernardino Meridian to the 
Riverside County-San Diego County line.
    (vi) Then westward along that county line for about 7\1/2\ miles, to 
the western boundary of the Cleveland National Forest (near the Pechanga 
Indian Reservation).
    (vii) Then generally southeastward along the Cleveland National 
Forest boundary to where it joins California Highway 76.
    (viii) From there generally southeastward along Highway 76 to 
California Highway 79.

[[Page 185]]

    (ix) Then southeastward along Highway 79 to the township line on the 
northern border of Township 12 South (in Range 3 East).
    (x) Then eastward along that township line to its intersection with 
the range line on the eastern border of Range 3 East.
    (xi) From there southward along that range line to the U.S.-Mexico 
international border.
    (xii) Then westward along that international border to the Pacific 
Ocean.
    (xiii) Then generally northwestward along the shore of the Pacific 
Ocean to the starting point.

[T.D. ATF-218, 50 FR 48084, Nov. 21, 1985]



Sec.  9.105  Cumberland Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Cumberland Valley.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Cumberland Valley viticultural area are the following 32 U.S.G.S. 
topographical maps of the 7.5 minute series:
    (1) ``Williamsport Quadrangle'', edition of 1969.
    (2) ``Shepherdstown Quadrangle'', edition of 1978.
    (3) ``Keedysville Quadrangle'', edition of 1978.
    (4) ``Middletown Quadrangle'', edition of 1953, photo-revised 1979.
    (5) ``Myersville Quadrangle'', edition of 1953, photo-revised 1971.
    (6) ``Smithsburg Quadrangle'', edition of 1953, photo-revised 1971.
    (7) ``Waynesboro Quadrangle'', edition of 1944, photo-revised 1968 
and 1973.
    (8) ``Iron Springs Quadrangle'', edition of 1953, photo-revised 1968 
and 1973.
    (9) ``Scotland Quadrangle'', edition of 1944, photo-revised 1968 and 
1973.
    (10) ``Caledonia Park Quadrangle'', edition of 1944, photo-revised 
1968 and 1973.
    (11) ``Walnut Botton Quadrangle'', edition of 1952, photo-revised 
1969 and 1977.
    (12) ``Dickinson Quadrangle'', edition of 1952, photo-revised 1969 
and 1977.
    (13) ``Mount Holly Springs Quadrangle'', edition of 1952, photo-
revised 1968 and 1973.
    (14) ``Mechanicsburg Quadrangle'', edition of 1952, photo-revised 
1968 and 1973.
    (15) ``LeMoyne Quadrangle'', edition of 1963, photo-revised 1972.
    (16) ``Steelton Quadrangle'', edition of 1963, photo-revised 1972.
    (17) ``Harrisburg West Quadrangle'', edition of 1969, photo-revised 
1974.
    (18) ``Wertzville Quadrangle'', edition of 1952, photo-revised 1968 
and 1973.
    (19) ``Sherman's Dale Quadrangle'', edition of 1952, photo-revised 
1968 and 1973.
    (20) ``Landisburg Quadrangle'', edition of 1952, photo-revised 1969 
and 1977.
    (21) ``Andersonburg Quadrangle'', edition of 1952, photo-revised 
1969 and 1977.
    (22) ``Newville Quadrangle'', edition of 1952, photo-revised 1969 
and 1975.
    (23) ``Newburg Quadrangle'', edition of 1966, photo-revised 1973.
    (24) ``Doylesburg Quadrangle'', edition of 1966, photo-revised 1973.
    (25) ``Roxbury Quadrangle'', edition of 1966, photo-revised 1973.
    (26) ``Fannettsburg Quadrangle'', edition of 1966, photo-revised 
1973.
    (27) ``St. Thomas Quadrangle'' edition of 1944, photo-revised 1968 
and 1973.
    (28) ``McConnellsburg Quadrangle'', edition of 1944, photo-revised 
1968 and 1973.
    (29) ``Mercersburg Quadrangle'', edition of 1943, photo-revised 1968 
and 1973.
    (30) ``Clear Spring Quadrangle'', edition of 1955, photo-revised 
1971.
    (31) ``Hedgesville Quadrangle'', edition of 1979.
    (32) ``Mason Dixon Quadrangle'', edition of 1943-53 (photorevised 
1971).
    (33) ``Hagerstown Quadrangle'', edition of 1943-53 (photorevised 
1971, photoinspected 1977).
    (34) ``Funkstown Quadrangle'', edition of 1943-53 (photorevised 
1971, photoinspected 1977).
    (35) ``Plainfield Quadrangle'', edition of 1975.
    (36) ``Shippensburg Quadrangle'', edition of 1973.
    (37) ``Chambersburg Quadrangle'', edition of 1973.
    (38) ``Williamson Quadrangle'', edition of 1973.
    (39) ``Greencastle Quadrangle'', edition of 1973.
    (40) ``Dillsburg Quadrangle'', edition of 1973.

[[Page 186]]

    (c) Boundary. The Cumberland Valley viticultural area is located in 
Washington County in west-central Maryland and Franklin and Cumberland 
counties in south-central Pennsylvania. The boundary is as follows:
    (1) Starting immediately west of the Town of Williamsport in 
Washington County, Maryland, at Lock 45 of the Chesapeake & Ohio (C&O) 
Canal National Historical Park and the confluence of the Potomac River 
and Conococheague Creek (see Williamsport Quadrangle), the boundary 
proceeds in a southeasternly direction along the perimeter of the park 
on the northeastern bank of the Potomac River to the confluence of 
Antitam Creek and the Potomac River;
    (2) Then southeast of Limekiln Road which runs along the perimeter 
of the park from Antietam Creek to the intersection of Limekiln Road and 
Harpers Ferry Road;
    (3) Then northeasterly a straight line approximately two miles to 
the 952-foot summit of Hawk's Hill;
    (4) Then northerly on a straight line approximately 2.5 miles to the 
intersection of Red Hill Road and Porterstown Road;
    (5) Then southeasterly along Porterstown Road to its intersection 
with Mount Briar--Trego Road;
    (6) Then southerly along Mount Briar--Trego Road to its intersection 
with Millbrook Road;
    (7) Then east along Millbrook Road to its intersection with State 
Route 67, approximately 0.5 mile north of Rohersville, Maryland;
    (8) Then directly east approximately 1.25 miles in a straight line 
to the 1,000-foot contour line of South Mountain;
    (9) Then in a north northeasterly direction along the 1,000-foot 
contour line of South Mountain in Washington County, Maryland, and 
Franklin and Cumberland counties in Pennsylvania to the point on South 
Mountain where the 1,000-foot contour line crosses State Hollow Road 
(Rt. 233);
    (10) Then north along Rt. 233 to the point where it crosses the 750-
foot contour of South Mountain;
    (11) Then east along the 750-foot contour line of South Mountain to 
the point southwest of the Mount Holly Springs Reservoir where Cold 
Spring Run, a tributary of Yellow Breeches Creek, crosses the 750-foot 
contour line, approximately 3 miles southwest of the town of Mount Holly 
Springs, Pennsylvania;
    (12) Then east northeast in a straight line approximately seven 
miles to Center Point Knob, elev. 1050 feet, approximately two miles 
southeast of Boiling Springs, Pennsylvania (see Mechanicsburg 
Quadrangle);
    (13) Then continuing east northeast in a straight line approximately 
six miles to the point where U.S. Rt. 15 crosses Yellow Breeches Creek, 
approximately one mile east of Williams Grove, Pennsylvania;
    (14) Then east and northeast in a meandering line along the north 
bank of Yellow Breeches Creek to its confluence with the Susquehanna 
River;
    (15) Then north along the west bank of the Susquehanna River, which 
forms the western portion of the corporate boundary line of the City of 
Harrisburg, Pennsylvania, to the point where the 300-foot contour line 
and the west bank of the Susquehanna River meet;
    (16) Then directly west to the 700-foot contour line of Blue 
Mountain overlooking the Susquehanna River;
    (17) Then along the 700-foot contour line of Blue Mountain as it 
meanders west and around McClures Gap;
    (18) Then along the 700-foot contour line of Blue Mountain to the 
point where the 700-foot contour line crosses State Rt. 233;
    (19) Then northeast along Rt. 233 through Doubling Gap to the 1,000-
foot contour line of Blue Mountain;
    (20) Then in a generally southwesterly direction along the 1,000-
foot contour line of Blue Mountain into Franklin County to the point 
where the 1,000-foot contour line meets the roadbed of the Pennsylvania 
Turnpike, Interstate 76;
    (21) Then along the roadbed of the Pennsylvania Turnpike to the east 
entrance of the Blue Mountain Tunnel;
    (22) Then in a straight line approximately 6.5 miles to the 
intersection of State Rt. 533 and the 1,000-foot contour line of Blue 
Mountain, approximately one mile west northwest of Upper Strasburg, 
Pennsylvania;
    (23) Then southwest along the 1,000-foot contour line of Blue 
Mountain to

[[Page 187]]

and along the 1,000-foot contour line of Broad Mountain;
    (24) Then along the 1,000-foot contour line as it meanders along and 
around Broad Mountain and Front Mountain to the point where the 1,000-
foot contour line crosses Wilson Run near Franklin Furnace, 
Pennsylvania;
    (25) Then southwest in a straight line approximately 3.5 miles to 
Parnell Knob, elev. 2060 feet;
    (26) Then west northwest in a straight line approximately four miles 
to the point where the 1,000-foot contour line crosses Township Run near 
Cape Horn on Cove Mountain, approximately two miles north northwest of 
Fort Loudon, Pennsylvania;
    (27) Then southwest along the 1,000-foot contour line of Cove 
Mountain into and out of Cove Gap;
    (28) Then along the 1,000-foot contour line of Cove Mountain and Two 
Top Mountain in Franklin County, Pennsylvania, and Sword Mountain and 
Fairview Mountain in Washington County, Maryland, to the point on 
Fairview Mountain where the 1,000-foot contour line intersects the 
National Road (U.S. Rt. 40);
    (29) Then west along U.S. Rt. 40 approximately 0.5 mile to the 
intersection of U.S. Rt. 40 and Cove Road;
    (30) Then south in a straight line from the intersection of U.S. Rt. 
40 and Cove Road approximately 1.25 miles to the intersection of McCoys 
Ferry Road and State Rt. 56;
    (31) Then south along McCoys Ferry Road to the perimeter of the C&O 
Canal National Historical Park along the Potomac River;
    (32) Then southeast along the perimeter of the C&O National 
Historical Park to the point of beginning.

[T.D. ATF-210, 50 FR 29971, July 23, 1985, as amended by T.D. ATF-249, 
52 FR 5960, Feb. 27, 1987]



Sec.  9.106  North Yuba.

    (a) Name. The name of the viticultural area described in this 
section is ``North Yuba.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of North Yuba viticultural area are the following four U.S.G.S. 
topographical maps of the 7.5 minute series:
    (1) ``Oregon House Quadrangle,'' edition of 1948, photo-revised 
1969.
    (2) ``Rackerby Quadrangle,'' edition of 1948, photo-revised 1969.
    (3) ``Challenge Quadrangle,'' edition of 1948 photo-revised 1969.
    (4) ``French Corral Quadrangle,'' edition of 1948, photo-revised 
1969.
    (c) Boundary. The North Yuba viticultural area is located in Yuba 
County in the State of California. The boundary is as follows:
    (1) Beginning on the ``Oregon House Quadrangle'' map at the point 
where the Browns Valley Ditch crosses Woods Creek in the southwest 
corner of section 25, T. 17 N., R. 6 E., the boundary proceeds 
northeasterly in a meandering line approximately 1.5 miles along the 
east bank of Woods Creek to the point near Richards Ranch where the 
paved light duty road crosses said creek;
    (2) Then west and north, approximately 0.33 mile to the point where 
the paved light duty road meets the unimproved dirt road accessing Dixon 
Hill and Texas Hill;
    (3) Then northwest continuing along the paved light duty road 
approximately 2.75 miles to the intersection at Oregon House of said 
light duty road with the medium duty road which travels east and west 
between Virginia Ranch Reservoir of Dry Creek and the Yuba County 
Forestry Headquarters near Dobbins;
    (4) Then northeasterly, 0.7 mile, along same light duty road to its 
intersection with the unimproved dirt road to Lake Mildred, located in 
the northwest corner of section 2, T. 17 N., R. 6 E.;
    (5) Then northwesterly, 1.0 miles, along the unimproved dirt road to 
the end of said road at the shoreline of Lake Mildred;
    (6) Then southwest along the shoreline of Lake Mildred to the Los 
Verjeles Dam at the westernmost end of said lake;
    (7) Then across the face of said dam and continuing northeast along 
the shoreline of Lake Mildred to the point where the stream running 
through Smokey Ravine flows into Lake Mildred;
    (8) Then north and west along said stream to the point where the 
stream crosses the 1,900-foot contour line in

[[Page 188]]

the northeast corner of section 27, T. 18 N., R. 6 E.;
    (9) Then southwest in a meandering line along the 1.900-foot contour 
line of Lamb Hill;
    (10) Then northwest along the 1,900-foot contour line of High Spring 
Ridge to the point where the medium duty paved road running north and 
south along Willow Glen Creek crosses the 1,900-foot contour line, 
approximately 0.75 mile north of Finley Ranch;
    (11) Then north along said road, approximately 1 mile, to its 
intersection at Willow Glen Ranch near the west boundary line of section 
15, T. 18 N., R. 6 E., with the light duty road which crosses Critterden 
Ridge;
    (12) Then in a generally easterly direction along said road, 
approximately 2.0 miles, to its point of intersection with the light 
duty paved road named Frenchtown Road which runs north and south between 
Brownsville and Frenchtown;
    (13) Then south along the Frenchtown Road to the point where the 
road crosses the 1,600-foot contour line in the northwest corner of 
section 24, T. 18 N., R. 6 E.;
    (14) Then east along the 1,600-foot contour line to the point where 
Dry Creek crosses the 1,600-foot contour line near the south boundary 
line of section 13, T. 18 N., R. 6 E.;
    (15) Then south along Dry Creek, approximately 0.16 mile, to the 
confluence of Indiana Creek with Dry Creek;
    (16) Then in a generally easterly direction, approximately 1 mile, 
along Indiana Creek to the confluence of Keystone Creek with Indiana 
Creek;
    (17) Then north along indiana Creek, approximately 0.87 mile, to the 
point where Indiana Creek meets the 2,000-foot contour line of Oregon 
Hills;
    (18) Then in a generally southeasterly direction along the 2,000-
foot contour line of Oregon Hills, approximately 6 miles, to the point 
near the east boundary line of section 9, T. 17 N., R. 7 E., where the 
power transmission line on Red Bluff crosses the 2,000-foot contour 
line;
    (19) Then southwest along the right of way of said power 
transmission line to the point near the south boundary of section 9, T. 
17 N., R. 7 E., where it meets the power transmission line running 
northwest and southeast between Dobbins and the Colgate Power House;
    (20) Then southeast along the power transmission line between 
Dobbins and Colgate Power House to the Colgate Power House;
    (21) Then in a generally westerly direction from the Colgate Power 
House along the power transmission line which crosses over Dobbins Creek 
to the point west of Dobbins Creek where the power transmission line 
intersects the 1,000-foot contour line;
    (22) Then in a generally southwesterly direction along the 1,000-
foot contour line above the north bank of the Yuba River and Harry L. 
Englebright lake of the Yuba River to the intersection of the 1,000-foot 
contour line with Woods Creek in the northeast corner of section 36, T. 
17 N., R. 6 E.;
    (23) Then east and north along the east bank of Woods Creek, 
approximately 0.5 miles, to the point of beginning.

[T.D. ATF-211, 50 FR 30820, July 30, 1985]



Sec.  9.107  Lodi.

    (a) Name. The name of the viticultural area described in this 
section is ``Lodi.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Lodi viticultural area are 18 U.S.G.S. 7.5 minute 
series maps and are titled as follows:
    (1) Valley Springs SW, Calif. 1962;
    (2) Farmington, Calif. 1968 (Photorevised 1987);
    (3) Peters, CA 1952 (Photorevised 1968);
    (4) Stockton East, Calif. 1968 (Photorevised 1987);
    (5) Waterloo, Calif. 1968 (Photoinspected 1978);
    (6) Lodi South, Calif. 1968 (Photorevised 1976);
    (7) Terminous, Calif. 1978 (Minor Revision 1993);
    (8) Thornton, Calif. 1978;
    (9) Bruceville, Calif. 1968 (Photorevised 1980);
    (10) Florin, Calif. 1968 (Photorevised 1980);
    (11) Elk Grove, Calif. 1968 (Photorevised 1979);

[[Page 189]]

    (12) Sloughhouse, Calif. 1968 (Photorevised 1980, Minor Revision 
1993);
    (13) Buffalo Creek, Calif. 1967 (Photorevised 1980);
    (14) Folsom SE, Calif. 1954 (Photorevised 1980);
    (15) Carbondale, Calif. 1968 (Photorevised 1980, Minor Revision 
1993);
    (16) Goose Creek, Calif. 1968 (Photorevised 1980, Minor Revision 
1993);
    (17) Clements, Calif. 1968 (Minor Revision 1993); and
    (18) Wallace, Calif. 1962.
    (c) Boundaries. The Lodi viticultural area is located in California 
in the counties of Sacramento and San Joaquin. The beginning point is 
located at the intersection of the Calaveras River and the San Joaquin-
Stanislaus County line (Valley Springs SW, Calif. map).
    (1) From the beginning point, proceed south along the San Joaquin-
Stanislaus County line to its intersection with State Route 4, also 
known as Funck Road, T1N, R9E (Farmington, Calif. map);
    (2) Then proceed west on State Route 4 (west on Funck Road, then 
south on Waverly Road, then west through the village of Farmington on 
Farmington Road) to State Route 4's intersection with Jack Tone Road, 
T1N, R7E (beginning on the Farmington, Calif. map, passing through the 
Peters, CA map, and ending on the Stockton East, Calif. map);
    (3) Then proceed north along Jack Tone Road to its intersection with 
Eightmile Road, T3N, R7E (ending on the Waterloo, Calif. map);
    (4) Then proceed west along Eightmile Road to its intersection with 
Bishop Cut, T3N, R5E (beginning on the Waterloo, Calif. map, passing 
through the Lodi South, Calif. map, and ending on the Terminous, Calif. 
map);
    (5) Then proceed north along Bishop Cut to White Slough, T3N, R5E 
(Terminous, Calif. map);
    (6) Then proceed west along White Slough to an unnamed drainage 
canal on Terminous Tract, across the slough from a marked pumping 
station on King Island, T3N, R5E (Terminous, Calif. map);
    (7) Then proceed straight northwest on the Terminous Tract to the 
south end of Peatland Road and follow it north to its intersection with 
State Route 12, T3N, R5E (Terminous, Calif. map);
    (8) Then proceed west 0.2 mile on State Route 12 to its intersection 
with an unnamed unimproved road at BM-8, and continue straight northwest 
on the Terminous Tract to the marked siphon on the south side of 
Sycamore Slough, T3N, R5E (ending on the Thornton, Calif. map);
    (9) Then proceed in a straight line north-to-northeast across Brack 
Tract, Hog Slough and Canal Ranch to the line's intersection with Beaver 
Slough near the 90-degree east turn of an unnamed light duty road, west 
of a small cluster of buildings, T4N, R5E (Thornton, Calif. map);
    (10) Then proceed west along Beaver Slough to its intersection with 
the South Mokelumne River, following the river north and east to its 
intersection with Interstate 5 (marked as under construction), T5N, R5E 
( ending on the Bruceville, Calif. map);
    (11) Then proceed northwest along Interstate 5 to its intersection 
with an unnamed road, locally known as Hood-Franklin Road.
    (12) From Interstate 5, proceed east on Hood-Franklin Road to its 
intersection with Franklin Boulevard, Section 17, T6N, R5E (ending on 
the Florin, Calif. map);
    (13) Proceed generally north along Franklin Boulevard to its 
intersection with Sims Road and a section line running due east marking 
the northern boundary of Section 28, T7N, R5E (Florin, Calif. map).
    (14) Follow this section line due east to its junction with Sheldon 
Road and then proceed east along Sheldon Road to its intersection with 
the Central California Traction Co. Railroad (beginning on the Florin, 
Calif. map and ending on the Elk Grove, Calif. map);
    (15) Proceed southeast along the Central California Traction Co. 
Railroad to its intersection with Grant Line Road (Elk Grove, Calif. 
map);
    (16) Then northeast along Grant Line Road to its intersection with 
State Highway 16 (beginning on the Elk Grove, Calif. map, passing 
through the

[[Page 190]]

Sloughhouse, Calif. map, and ending on the Buffalo Creek, Calif. map);
    (17) Proceed southeast along State Highway 16 to its intersection 
with Deer Creek (ending on the Sloughhouse, Calif. map);
    (18) Then proceed generally northeast along Deer Creek to its 
intersection with the eastern boundary of Sacramento County (beginning 
on the Sloughhouse, Calif. map, passing through the Buffalo Creek, 
Calif. map, and ending on the Folsom SE, Calif. map); and
    (19) Proceed generally south along the eastern boundary of 
Sacramento County to the meeting point of Sacramento, Amador, and San 
Joaquin Counties (beginning on the Folsom SE, Calif. map, passing 
through the Carbondale, Calif. map, and ending on the Goose Creek, 
Calif. map); and
    (20) Then proceed generally south-southeast along the eastern 
boundary of San Joaquin County to the point of beginning (beginning on 
the Goose Creek, Calif. map, passing through the Clements, Calif. and 
Wallace, Calif. maps, and ending on the Valley Springs SW, Calif. map).

[T.D. ATF-223, 51 FR 5324, Feb. 13, 1986, as amended by T.D. ATF-482, 67 
FR 56484, Sept. 4, 2002]



Sec.  9.108  Ozark Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``Ozark Mountain.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of Ozark Mountain viticultural area are 11 U.S.G.S. maps in 
the scale of 1:250,000. They are titled--
    (1) St. Louis, Missouri (1963, revised 1969);
    (2) Jefferson City, Missouri (1955, revised 1970);
    (3) Springfield, Missouri (1954, revised 1969);
    (4) Joplin, Missouri; Kansas (1954, revised 1974);
    (5) Tulsa, Oklahoma; Arkansas; Missouri; Kansas (1958, revised 
1973);
    (6) Fort Smith, Arkansas-Oklahoma (1978);
    (7) Russellville, Arkansas (compiled in 1954);
    (8) Memphis, Tennessee; Arkansas; Missouri (1953, revised 1978);
    (9) Poplar Bluff, Missouri; Arkansas (1957, revised 1978);
    (10) Paducah, Kentucky; Illinois; Missouri; Indiana (1949, revised 
1969); and
    (11) Rolla, Missouri; Illinois (1954, revised 1969).
    (c) Boundary--(1) General. The Ozark Mountain viticultural area is 
located in Missouri, Oklahoma, and Arkansas. The starting point of the 
following boundary description is the point at which the Missouri River 
joins the Mississippi River north of St. Louis, Missouri (on the St. 
Louis map).
    (2) Boundary Description. (i) The boundary proceeds from the 
starting point westward along the Missouri River until it meets the 
Osage River;
    (ii) Then further westward along the Osage River (flowing through 
Lake of the Ozarks and the Harry S. Truman Reservoir) until it passes 
adjacent to Missouri Highway 82 in Osceola, Missouri (on the Jefferson 
City map);
    (iii) Then southwestward along Missouri Highway 82 until it 
intersects U.S. Highway 54 in Eldorado Springs, Missouri (on the Joplin 
map);
    (iv) Then westward along U.S. Highway 54 until it intersects U.S. 
Highway 71 near Nevada, Missouri;
    (v) Then southward along U.S. Highway 71 until it intersects 
Interstate Highway 44, approximately 5 miles south of Carthage, 
Missouri;
    (vi) Then westward and southwestward along Interstate Highway 44 
into the State of Oklahoma, and continuing southwestward until 
Interstate Highway 44 crosses the Neosho River near Miami, Oklahoma (on 
the Tulsa map);
    (vii) Then southward along the Neosho River (flowing through the 
Lake of the Cherokees, Lake Hudson, and Fort Gibson Lake) until it flows 
into the Arkansas River, approximately 2 miles west of Fort Gibson, 
Oklahoma (on the Fort Smith map);
    (viii) Then southward and eastward along the Arkansas River (flowing 
through the Robert S. Kerr Lake) into the State of Arkansas, and 
continuing eastward until the Arkansas River is joined by Vache Grasse 
Creek, approximately 4 miles east of Barling, Arkansas;
    (ix) Then southeastward and southwestward following Vache Grasse 
Creek to the place where it is crossed

[[Page 191]]

by Arkansas Highway 10, near Greenwood, Arkansas;
    (x) Then westward along Highway 10 to U.S. Highway 71. Note: Highway 
10 is the primary highway leading from Greenwood to Hackett, Arkansas;
    (xi) Then southward and eastward along Highway 71 until it crosses 
Rock Creek;
    (xii) Then northeastward along Rock Creek to Petit Jean Creek;
    (xiii) Then generally northeastward and eastward along Petit Jean 
Creek until it becomes the Petit Jean River (on the Russellville map);
    (xiv) Then generally eastward along the Petit Jean River, flowing 
through Blue Mountain Lake, until the Petit Jean River joins the 
Arkansas River;
    (xv) Then generally eastward along the Arkansas River to Cadron 
Creek;
    (xvi) Then northeastward and eastward along Cadron Creek, for about 
2\1/2\ miles, until it pases under U.S. Highway 64, approximately 3\1/2\ 
miles west of Conway, Arkansas;
    (xvii) Then eastward along U.S. Highway 64 until it intersects U.S. 
Highway 67, near Beebe, Arkansas (on the Memphis map);
    (xviii) Then northeastward along U.S. Highway 67 into the state of 
Missouri, then northward until U.S. Highway 67 intersects U.S. Highway 
60, in Poplar Bluff, Missouri (on the Poplar Bluff map);
    (xix) Then eastward along U.S. Highway 60 until it crosses the 
western boundary of Stoddard County. Note: Here that boundary is the St. 
Francis River;
    (xx) Then northward, northeastward, and eastward along the boundary 
of Stoddard County until it joins the southern boundary of Cape 
Girardeau County (on the Cape Girardeau map);
    (xxi) Then northeastward along the Cape Girardeau County boundary 
until it meets the Mississippi River south of Cape Girardeau, Missouri;
    (xxii) Then northward along the Mississippi River to the starting 
point.

[T.D. ATF-231, 51 FR 24144, July 2, 1986; 51 FR 25366, July 14, 1986]



Sec.  9.109  Northern Neck George Washington Birthplace.

    (a) Name. The name of the viticultural area described in this 
section is ``Northern Neck George Washington Birthplace.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Northern Neck George Washington Birthplace 
viticultural area are 2 U.S.G.S. 1:250,000 scale maps. They are 
entitled:
    (1) Washington, DC; Maryland; Virginia, 1957 (Revised 1979); and
    (2) Richmond, VA; MD., 1973.
    (c) Boundaries. The Northern Neck George Washington Birthplace 
viticultural area consists of all of the lands in the Counties of 
Westmoreland, King George, Northumberland, Lancaster and Richmond, in 
the Commonwealth of Virginia. The boundaries of the Northern Neck George 
Washington Birthplace viticultural area, using landmarks and points of 
reference found on the appropriate U.S.G.S. maps, are as follows:
    (1) Beginning on the Washington, DC; Maryland; Virginia U.S.G.S. map 
at a point on Potomac Creek where the King George County western 
boundary line at its northermost point intersects Potomac Creek the 
boundary proceeds easterly and southeasterly on the Richmond, VA; MD. 
U.S.G.S. map, along the Virginia shoreline of the Potomac River for 
approximately 66 miles to Smith Point on the Chesapeake Bay;
    (2) Thence southerly along the shoreline of the Chesapeake Bay for 
approximately 20 miles to Windmill Point at the mouth of the 
Rappahannock River;
    (3) Thence northwesterly along the banks of the Rappahannock River 
for approximately 72 air miles to Muddy Creek at the point where the 
western boundary line of King George County at its southernmost point 
begins;
    (4) Thence northward along the King George County/Stafford County 
line approximately 7 miles to the point of the beginning.

[T.D. ATF-250, 52 FR 13082, Apr. 21, 1987]



Sec.  9.110  San Benito.

    (a) Name. The name of the viticultural area described in this 
section is ``San Benito.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of San Benito viticultural area are six U.S.G.S. maps. They 
are titled:

[[Page 192]]

    (1) Hollister Quadrangle, 7.5 minute series, 1955 (photorevised 
1971).
    (2) Tres Pinos Quadrangle, 7.5 minute series, 1955 (photorevised 
1971).
    (3) Quien Sabe Valley Quadrangle, 7.5 minute series, 1968.
    (4) Mt. Harlan Quadrangle, 7.5 minute series, 1968.
    (5) Paicines Quadrangle, 7.5 minute series, 1968.
    (6) Cherry Peak Quadrangle, 7.5 minute series, 1968.
    (c) Boundary--(1) General. The San Benito viticultural area is 
located in San Benito County, California. The starting point of the 
following boundary description is the point where the eastern border of 
Section 17 of Township 15 South, Range 7 East, crosses the latitude 
36[deg]37[min]30[sec] (on the Cherry Peak map).
    (2) Boundary Description. (i) From the starting point, westward 
along latitude 36[deg]37[min]30[sec] to the Range Line R.6E./R.7E. (on 
the Paicines map).
    (ii) Then northward along that range line to the southern border of 
Section 1, Township 15 South, Range 6 East.
    (iii) Then westward along that southern border to the western border 
of the same section.
    (iv) Then northward along that western border to the 800-foot 
contour line.
    (v) Then northwestward along that contour line to the Township Line 
T.14S./T.15S.
    (vi) Then westward along that township line to the southern border 
of Section 34, Township 15 South, Range 6 East.
    (vii) Then continuing westward along that southern border to the 
1200-foot contour line.
    (viii) Then generally northwestward along that contour line until it 
crosses for the second time the southern border of Section 28, Township 
14 South, Range 6 East.
    (ix) Then westward along that southern border to the 1400-foot 
contour line.
    (x) Then following the 1400-foot contour line through the folloowing 
sections: Sections 28, 29, and 30, Township 14 South, Range 6 East; 
Section 25, Township 14 South, Range 5 East; Sections 30, 19, 20, and 
returning to 19, Township 14 South, Range 6 East; to the point where the 
1400-foot contour line intersects the section line between Sections 19 
and 18, Township 14 South, Range 6 East.
    (xi) From there in a straight line due northward to the 1200-foot 
contour line in Section 18, Township 14 South, Range 6 East.
    (xii) Then following the 1200-foot contour line generally 
northwestward to the northern border of Section 10, Township 14 South, 
Range 5 East (on the Mt. Harlan map).
    (xiii) Then following that northern border northwestward to the 
1600-foot contour line.
    (xiv) Then following the 1600-foot contour line generally northward 
to an unimproved road.
    (xv) Then looping southward along the unimproved road and continuing 
eastward past the designated ``Spring'' and then northward parallel with 
Bonanza Gulch to the Vineyard School on Cienega Road (on the Hollister 
map).
    (xvi) From there in a straight line northeastward, crossing Bird 
Creek and the San Benito River, to the northwestern corner of Section 
19, Township 13 South, Range 6 East (on the Tres Pinos map).
    (xvii) From there following the northern border of Sections 19 and 
20, Township 13 South, Range 6 East, to the northeastern corner of 
Section 20.
    (xviii) From there in a straight line due eastward to the Range line 
R.6E./R7E.
    (xix) Then southward along that Range line to the Township line 
T.13S./T.14S.
    (xx) Then eastward along that Township line to the eastern border of 
Section 6, Township 14 South, Range 7 East (on the Quien Sabe Valley 
map).
    (xxi) Then southward along the eastern border of Sections 6, 7, and 
18, Township 14 South, Range 7 East, to the northern border of Section 
20, Township 14 South, Range 7 East (on the Cherry Peak map).
    (xxii) Then eastward along that northern border to the eastern 
border of Section 20.
    (xxiii) Then southward along the eastern border of Sections 20, 29, 
and 32, Township 14 South, Range 7 East, and continuing southward along 
the eastern border of Sections 5, 8, and 17,

[[Page 193]]

Township 15 South, Range 7 East, to the starting point.

[T.D. ATF-258, 52 FR 37137, Oct. 5, 1987]



Sec.  9.111  Kanawha River Valley.

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

[T.D. ATF-226, 51 FR 11913, Apr. 8, 1986]



Sec.  9.112  Arkansas Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``Arkansas Mountain.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of

[[Page 194]]

the Arkansas Mountain viticultural area are two U.S.G.S. maps, titled:
    (1) Russellville, Arkansas, 1:250,000 series compiled in 1954.
    (2) Fort Smith, Arkansas-Oklahoma, 1:250,000 series, 1978.
    (c) Boundary--(1) General. The Arkansas Mountain viticultural area 
is located in northwestern Arkansas. Starting at the point where Frog 
Bayou converges with the Arkansas River, near Yoestown, Arkansas (or the 
Fort Smith map), the boundary proceeds:
    (2) Boundary Description. (i) Southwestward along the Arkansas River 
to Vache Grasse Creek.
    (ii) Then southeastward and southwestward following Vache Grasse 
Creek to the place where it is crossed by Arkansas Highway 10, near 
Greenwood, Arkansas.
    (iii) From there westward along Highway 10 to U.S. Highway 71. 
(Note: Highway 10 is the primary highway leading to Greenwood to 
Hackett, Arkansas.)
    (iv) Then southward and eastward along Highway 71 until it crosses 
Rock Creek.
    (v) Then northeastward along Rock Creek to Petit Jean Creek.
    (vi) Then generally northeastward and eastward along Petit Jean 
Creek until it becomes the Petit Jean River (on the Russellville map).
    (vii) Then generally eastward along the Petit Jean River, flowing 
through Blue Mountain Lake, until the Petit Jean River joins the 
Arkansas River.
    (viii) Then generally eastward along the Arkansas River to Cadron 
Creek.
    (ix) Then generally northward and northeastward along Cadron Creek 
to the place where it is crossed by U.S. Highway 65.
    (x) From there northward along Highway 65 to its intersection with 
Arkansas Highway 16 near Clinton, Arkansas.
    (xi) From there following Highway 16 generally westward to its 
intersection with Arkansas Highway 23 in Brashears, Arkansas.
    (xii) From there southward along Highway 23 to the Madison County-
Franklin County line.
    (xiii) Then westward and southward along that county line to the 
Madison County-Crawford County line.
    (xiv) Then westward along that county line to the Washington County-
Crawford County line.
    (xv) Then westward along that county line to Jones Fork (on the Fort 
Smith map).
    (xvi) Then southward along Jones Fork until it joins Frog Bayou near 
Winfrey, Arkansas.
    (xvii) Then generally southward along Frog Bayou, flowing through 
Lake Shepherd Springs and Lake Fort Smith, to the starting point.

[T.D. ATF-235, 51 FR 34205, Sept. 26, 1986]



Sec.  9.113  North Fork of Long Island.

    (a) Name. The name of the viticultural area described in this 
section is ``North Fork of Long Island.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the ``North Fork of Long Island'' viticultural area are 5 
U.S.G.S. maps. They are entitled:
    (1) Wading River, N.Y., 7.5 minute series, scaled at 1:24,000 
edition of 1967.
    (2) Riverhead, N.Y., 7.5 minute series, scaled at 1:24,000, edition 
of 1956.
    (3) New York, N.Y.; N.J.; Conn., U.S., 1:250,000 series, scaled at 
1:250,000, edition of 1960, revised 1979.
    (4) Providence, R.I.; Mass.; Conn., N.Y., U.S., 1:250,000 series, 
scaled at 1:250,000, edition of 1947, revised 1969.
    (5) Hartford, Conn.; N.Y.; N.J.; Mass., U.S., 1:250,000 series, 
scaled at 1,250,000, edition of 1962, revised 1975.
    (c) Boundaries. The boundaries of the proposed viticultural area are 
as follows: The North Fork of Long Island viticultural area is located 
entirely within eastern Suffolk County, Long Island, New York. The 
viticultural area boundaries consist of all of the land areas of the 
North Fork of Long Island, New York, including all of the mainland, 
shorelines and islands in the Townships of Riverhead, Shelter Island, 
and Southold.
    (1) The point of beginning is on the Wading River, N.Y., 7.5 minute 
series, U.S.G.S. map at the northern boundary of the Brookhaven/
Riverhead Township line on the Long Island Sound (approximately 500 feet 
east of the mouth of the Wading River);
    (2) The boundary goes south on the Brookhaven/Riverhead Town line 
for approximately 6.5 miles until it meets

[[Page 195]]

the Peconic River approximately 1 mile east of U.S. Reservation 
Brookhaven National Laboratory;
    (3) Then the boundary travels east on the Peconic River (Brookhaven/
Riverhead Town line) for 2.7 miles until it meets the Riverhead/
Southampton Township line on the Riverhead, N.Y., U.S.G.S. map;
    (4) It then goes east on the Riverhead/Southampton Township line for 
4.2 miles until it reaches an area where the Peconic River widens north 
of Flanders;
    (5) Then the boundary proceeds east to Orient Point then west along 
the shoreline, beaches, islands, and mainland areas of the North Fork of 
Long Island, described on the ``New York'', ``Providence'' and 
``Hartford'' U.S.G.S. maps until it reaches the Brookhaven/Riverhead 
Township line at the point of beginning. These boundaries consist of all 
the land (and isolated islands including without limitation, Wicopesset 
Island, Robins Island, Fishers Island, Great Gull Island, Plum Island, 
and Shelter Island) in the Townships of Riverhead, Shelter Island, and 
Southold.

[T.D. ATF-240, 51 FR 36398, Oct. 10, 1986]



Sec.  9.114  Old Mission Peninsula.

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

[T.D. ATF-252, 52 FR 21515, June 8, 1987]



Sec.  9.115  Ozark Highlands.

    (a) Name. The name of the viticultural area described in this 
section is ``Ozark Highlands.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Ozark Highlands viticultural area are three U.S.G.S. 
maps of the 1:250,000 series. They are titled:
    (1) Rolla, Missouri; Illinois, 1954 (revised 1969).
    (2) St. Louis, Missouri; Illinois, 1963 (revised 1969).
    (3) Springfield, Missouri, 1954 (revised 1969).
    (c) Boundary--(1) General. The Ozark Highlands viticultural area is 
located in south central Missouri. The area comprises portions of the 
following counties: Phelps, Maries, Osage, Gasconade, Franklin, 
Crawford, Texas, Shannon, Dent, Reynolds, and Pulaski. The beginning 
point of the following boundary description is the junction of Little 
Piney Creek and the Gasconade

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River, near Jerome, Missouri (in the northwest corner of the Rolla map).
    (2) Boundary Description. (i) From the beginning point, the boundary 
goes northward along the Gasconade River to the latitude line 
38[deg]00[min] (the dividing line between the Rolla and St. Louis maps);
    (ii) Then eastward along that latitude line to U.S. Highway 63;
    (iii) Then northward along U.S. 63 to Spring Creek;
    (iv) Then north-northwestward along Spring Creek to the Gasconade 
River;
    (v) Then northward along the Gasconade River to a power transmission 
line (less than 1 mile north of Buck Elk Creek);
    (vi) Then eastward and east-northeastward along that power 
transmission line to Missouri Route 19;
    (vii) Then southward along Route 19 to the Bourbeuse River;
    (viii) Then east-northeastward along the Bourbeuse River to the 
range line dividing R. 2 W. and R. 1 W.;
    (ix) Then southward along that range line to the Meramec River;
    (x) Then southwestward along the Meramec River to Huzzah Creek;
    (xi) Then southward along Huzzah Creek to Dry Creek (on the Rolla 
map, where Missouri Route 8 crosses Huzzah Creek);
    (xii) Then southward along Dry Creek to Cherry Valley Creek;
    (xiii) Then south-southwestward along Cherry Valley Creek to 
Missouri Route 19;
    (xiv) Then southward and southwestward along Route 19 to Crooked 
Creek;
    (xv) Then northwestward along Crooked Creek to the Meramec River;
    (xvi) Then southward along the Meramec River to Hutchins Creek;
    (xvii) The southeastward along Hutchins Creek to its source near 
Missouri Route 32, across from the Howes Mill Post Office;
    (xviii) Then in a straight line toward the Howes Mill Post Office to 
Route 32;
    (xix) Then eastward along Route 32 to the range line dividing R. 3 
W. and R. 2 W.;
    (xx) Then southward along that range line to the township line 
dividing T. 33 N. and T. 32 N.;
    (xxi) Then westward along that township line (which coincides, in R. 
3 W., with the Reynolds County/Dent County line) to the boundary of 
Clark National Forest;
    (xxii) Then generally southward along that national forest boundary 
to the Dent County/Shannon County line;
    (xxiii) Then westward along that county line to the Current River;
    (xxiv) Then southeastward along the Current River to Missouri Route 
19;
    (xxv) Then southward along Route 19 to Jack's Fork;
    (xxvi) Then westward, southwestward and northwestward along Jack's 
Fork, taking the North Prong, to its northwesternmost source;
    (xxvii) Then in a straight line northwestward to the 
southeasternmost source of Hog Creek;
    (xxviii) Then northwestward along Hog Creek to the Big Piney River 
(on the Springfield map);
    (xxix) Then northward along the Big Piney River to the township line 
dividing T. 35 N. and T. 36 N.;
    (xxx) Then eastward along that township line to Little Piney Creek 
(on the Rolla map);
    (xxxi) Then northward and westward along Little Piney Creek to the 
beginning point.

[T.D. ATF-256, 52 FR 32785, Aug. 31, 1987]



Sec.  9.116  Sonoma Coast.

    (a) Name. The name of the viticultural area described in this 
section is ``Sonoma Coast''.
    (b) Approved map. The approved maps for determining the boundary of 
the Sonoma Coast viticultural area are the following six U.S.G.S. 
topographic maps:
    (1) Sonoma County, California, scale 1:100,000, dated 1970;
    (2) Mark West Springs, California, 7.5-minute series, dated 1958, 
photoinspected 1978;
    (3) Healdsburg, California, 7.5-minute series, dated 1955, 
photorevised 1980;
    (4) Jimtown, California, 7.5-minute series, dated 1955, photorevised 
1975;
    (5) Guerneville, California, 7.5-minute series, dated 1955; and
    (6) Cazadero, California, 7.5-minute series, dated 1978.
    (c) Boundary description. In general, the boundary description of 
the Sonoma Coast viticultural area is found on the U.S.G.S. Topographic 
Map

[[Page 197]]

of Sonoma County, California, scale 1:100,000, dated 1970. When a point 
of the boundary description is found on one of the 7.5-minute 
quadrangles, the boundary description indicates this in parentheses. The 
boundary description is as follows:
    (1) The beginning point is the point at which the Sonoma County-
Mendocino County line meets the shoreline of the Pacific Ocean.
    (2) The boundary follows the shoreline of the Pacific Ocean 
southerly to the Sonoma County-Marin County line.
    (3) The boundary follows the Sonoma County-Marin County line 
southeasterly to San Pablo Bay.
    (4) The boundary follows the shoreline of San Pablo Bay easterly to 
the Sonoma County-Napa County line.
    (5) The boundary follows the Sonoma County-Napa County line 
northerly to the peak of Arrowhead Mountain.
    (6) From the peak of Arrowhead Mountain, the boundary proceeds in a 
straight line westerly to the peak of Sonoma Mountain.
    (7) From the peak of Sonoma Mountain, the boundary proceeds in a 
straight line northwesterly to the peak of Taylor Mountain.
    (8) From the peak of Taylor Mountain, the boundary proceeds in a 
straight line northwesterly to the point, near the benchmark at 184 ft. 
elevation in Section 34, Township 8 North, Range 8 West, at which Mark 
West Road crosses an unnamed stream which flows northwesterly into Mark 
West Creek. (Mark West Springs map)
    (9) From this point, the boundary proceeds northerly in a straight 
line to the headwaters of Brooks Creek, in Section 4, Township 8 North, 
Range 8 West. (Mark West Springs map)
    (10) The boundary follows Brooks Creek northwesterly to its 
confluence with the Russian River. (Healdsburg map)
    (11) The boundary proceeds southwesterly in a straight line to an 
unidentified peak at elevation 672 ft. (Healdsburg map)
    (12) The boundary proceeds northwesterly in a straight line to the 
peak identified as Black Peak. (Healdsburg map)
    (13) The boundary proceeds westerly in a straight line to an 
unidentified peak at elevation 857 ft. (Healdsburg map)
    (14) The boundary proceeds westerly in a straight line to the peak 
of Fitch Mountain at elevation 991 ft. (Healdsburg map)
    (15) The boundary proceeds northwesterly in a straight line to the 
intersection, near a benchmark at elevation 154 ft. in the town of 
Chiquita, of a light-duty road (known locally as Chiquita Road) and a 
southbound primary highway, hard surface road (known locally as 
Healdsburg Avenue). (Jimtown map)
    (16) The boundary follows that road (known locally as Healdsburg 
Avenue) southerly through the city of Healdsburg to the point at which 
it is a light-duty, hard or improved surface road, identified on the map 
as Redwood Highway, which crosses the Russian River, immediately south 
of the city of Healdsburg at a bridge (known locally as the Healdsburg 
Avenue Bridge). (Healdsburg map)
    (17) The boundary follows the Russian River southerly to a point, 
near the confluence with Dry Creek, opposite a straight line extension 
of a light-duty, hard or improved surface road (known locally as Foreman 
Lane) located west of the Russian River. (Healdsburg map)
    (18) The boundary proceeds in a straight line to that road and 
follows it westerly, then south, then westerly, onto the Guerneville 
map, across a secondary highway, hard surface road (known locally as 
Westside Road), and continues westerly, then northwesterly to the point 
at which it crosses Felta Creek. (Guerneville map)
    (19) The boundary follows Felta Creek approximately 18,000 ft. 
westerly to its headwaters, at the confluence of three springs, located 
approximately 5,800 feet northwesterly of Wild Hog Hill. (Guerneville 
map)
    (20) The boundary proceeds in a straight line southwesterly to the 
southwest corner of Section 9, Township 8 North, Range 10 West. 
(Guerneville map)
    (21) The boundary proceeds in a straight line southwesterly to the 
point in, Section 24, Township 8 North, Range 11 West, at which Hulbert 
Creek

[[Page 198]]

crosses the 160 ft. contour line. (Cazadero map)
    (22) The boundary follows Hulbert Creek southerly to its confluence 
with the Russian River.
    (23) The boundary follows the Russian River southwesterly to its 
confluence with Austin Creek.
    (24) From this point, the boundary proceeds in a straight line 
northwesterly to the peak of Pole Mountain.
    (25) From the peak of Pole Mountain, the boundary proceeds in a 
straight line northwesterly to the peak of Big Oat Mountain.
    (26) From the peak of Big Oat Mountain, the boundary proceeds in a 
straight line northwesterly to the peak of Oak Mountain.
    (27) From the peak of Oak Mountain, the boundary proceeds in a 
straight line northwesterly approximately 14.5 miles to the Sonoma 
County-Mendocino County line at the northeast corner of Section 25, 
Township 11 North, Range 14 West.
    (28) The boundary follows the Sonoma County-Mendocino County line 
west, then southwesterly to the beginning point.

[T.D. ATF-253, 52 FR 22304, June 11, 1987]



Sec.  9.117  Stags Leap District.

    (a) Name. The name of the viticultural area described in this 
section is ``Stags Leap District.''
    (b) Approved map. The appropriate map for determining the boundaries 
of the Stags Leap District viticultural area is one U.S.G.S. topographic 
map in the 7.5 minute series, scaled 1:24000, titled ``Yountville, 
Calif.,'' 1951 (photorevised 1968).
    (c) Boundaries. The Stags Leap District viticultural area is located 
in Napa County, California, within the Napa Valley viticultural area. 
The boundaries are as follows:
    (1) Commencing at the intersection of the intermittent stream 
(drainage creek) with the Silverado Trail at the 60 foot contour line in 
T6N/R4W, approximately 7 miles north of the city of Napa.
    (2) Then southwest in a straight line, approximately 900 feet, to 
the main channel of the Napa River.
    (3) Then following the main branch of the Napa River (not the 
southern branch by the levee) in a northwesterly then northerly 
direction, until it intersects the medium-duty road (Grant Bdy) in T7N/
R4W, known locally as the Yountville Cross Road.
    (4) Then northeast along the Yountville Cross Road until it 
intersects the medium-duty road, the Silverado Trail.
    (5) Then north along the Silverado Trail approximately 590 feet to a 
gully entering the Silverado Trail from the east.
    (6) Then northeast along the center line of that gully, 
approximately 800 feet, until it intersects the 400 foor contour line in 
Section 30 of T7N/R4W.
    (7) Then in a generally southeast direction, following the 400 foot 
contour line through Sections 29, 32, 33, 4, and 3, until it intersects 
the intermittent stream in the southwest corner of Section 3 in T6N/R4W.
    (8) Then in a generally southwest direction along that intermittent 
stream to the beginning point, at the intersection with the Silverado 
Trail.

[T.D. ATF-281, 54 FR 4018, Jan. 27, 1989]



Sec.  9.118  Ben Lomond Mountain.

    (a) Name. The name of the viticultural area described in this 
section is ``Ben Lomond Mountain.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Ben Lomond Mountain viticultural area are four 7.5 
minute series U.S.G.S. maps. They are titled:
    (1) Davenport Quadrangle (1955, photorevised 1968);
    (2) Big Basin Quadrangle (1955, photorevised 1973);
    (3) Felton Quadrangle (1955, photorevised 1980); and
    (4) Santa Cruz Quadrangle (1954, photorevised 1981).
    (c) Boundaries. The Ben Lomond Mountain viticultural area is located 
entirely within Santa Cruz County, California, which is in the central 
part of the State near the coast. The beginning point is the 
intersection of sections 25, 26, 35 and 36 (Davenport Quadrangle, T. 
10S., R. 3W.) which coincides with the 800-foot contour line and is 
approximately .6 mile northwest of the top of Bald Mountain.
    (1) From the beginning point, the boundary follows the 800-foot 
contour

[[Page 199]]

line in a meandering manner in a generally northwesterly direction 
across section 26 into section 27 (T. 10S., R. 3W.).
    (2) Thence along the 800-foot contour line in an easterly and then 
generally a northeasterly direction through section 27 and then back 
across the northwest corner of section 26 and thence in a generally 
northwesterly direction along the 800-foot contour line across sections 
23, 22 and into section 15.
    (3) Thence along the 800-foot contour line in a northerly and then a 
southerly direction across section 22 and eventually in a generally 
northwesterly direction into section 20.
    (4) Thence continuing along the 800-foot contour line in a generally 
northwesterly direction through sections 20, 17, 16, 17, 16, 9, 8, 5, 8, 
7 and 6 (T. 10S., R. 3W.).
    (5) Thence continuing in a northerly direction across sections 5 and 
32 and thence in a southwesterly direction across sections 31 and 6.
    (6) Thence continuing in a generally northerly direction across 
sections 1, 6, 31, 36, 31, 36 and 30 (T. 9S., R. 3W.) to the 
intersection of the 800-foot contour line and Scott Creek in section 19 
(T. 9S., R. 3W.).
    (7) Thence in a northeasterly direction along the south bank of 
Scott Creek through sections 19, 20 and 17 to the intersection of Scott 
Creek with the 1600-foot contour line in section 16 (T. 9S., R. 3W.).
    (8) Thence in a generally northeasterly and then southerly direction 
along the 1600-foot contour line through section 16 and then through the 
southeast and southwest corners of sections 9 and 10 respectively to the 
intersection of the 1600-foot contour line with Jamison Creek in section 
16 (T. 9S., R. 3W.).
    (9) Thence in an easterly direction along the south bank of Jamison 
Creek across sections 15 and 14 (T. 9S., R. 3W.) to the intersection of 
Jamison Creek and the 800-foot contour line in the southeast corner of 
section 14 (T. 9S., R. 3W.).
    (10) Thence in a southeasterly direction in a meandering manner 
along the 800-foot contour line across sections 14, 23, 24, 25 (T. 9S., 
R. 3W.), sections 30 and 31 (T. 9S., R. 2W.), and sections 32, 5, 8, 9, 
16, 17 and 21 (T. 10S., R. 2W.).
    (11) Thence in a southwesterly, then generally a southeasterly and 
then a northwesterly direction along the 800-foot contour line in a 
meandering manner to section 31 and then continuing on through sections 
31 and 30 (T. 10S., R. 2W.).
    (12) Thence continuing along the 800-foot contour line in a 
generally southerly and then a generally northwesterly direction through 
sections 25, 36, 31 and 36 to the point of beginning at the intersection 
of sections 25, 26, 35 and 36 (T. 10S., R. 3W.).

[T.D. ATF-264, 52 FR 46591, Dec. 9, 1987]



Sec.  9.119  Middle Rio Grande Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Middle Rio Grande Valley.''
    (b) Approved maps. The approved maps for determining the boundaries 
of the ``Middle Rio Grande Valley'' viticultural area are 24 U.S.G.S. 
Quadrangle (7.5 Minute Series) maps and 1 (15 Minute Series) U.S.G.S. 
map. They are titled:
    (1) Abeytas, N. Mex. (1952), revised 1979.
    (2) Alameda, N. Mex. (1960), revised 1967 and 1972.
    (3) Alburquerque East, N. Mex. (1960), revised 1967 and 1972.
    (4) Albuquerque West, N. Mex. (1960), revised 1967 and 1972.
    (5) Belen, N. Mex. (1952), revised 1971.
    (6) Bernalillo, N. Mex. (1954), revised 1972.
    (7) Dalies, N. Mex. (1952), revised 1971.
    (8) Isleta, N. Mex. (1952), revised 1967 and 1974.
    (9) La Joya, N. Mex. (1952), revised 1971.
    (10) Lemitar, N. Mex. (1952), revised 1971.
    (11) Loma De Las Canas, N. Mex. (1959), revised 1979.
    (12) Loma Machete, N. Mex. (1954), revised 1972.
    (13) Los Griegos, N. Mex. (1960), revised 1967 and 1972.
    (14) Los Lunas, N. Mex. (1952), revised 1971 and 1974.
    (15) Mesa Del Yeso, N. Mex. (1959).
    (16) Placitas, N. Mex. (1954).
    (17) San Acacia, N. Mex. (1952), revised 1971.
    (18) San Antonio, N. Mex. (1948)--15 minute series.

[[Page 200]]

    (19) San Felipe Pueblo, N. Mex. (1954), revised 1978.
    (20) Santa Ana Pueblo, N. Mex. (1954), revised 1978.
    (21) Socorro, N. Mex. (1959), revised 1971.
    (22) Tome, N. Mex. (1952), revised 1979.
    (23) Turn, N. Mex. (1952), revised 1979.
    (24) Veguita, N. Mex. (1952), revised 1979.
    (25) Wind Mesa, N. Mex. (1952), revised 1967.
    (c) Boundary description. The boundary of the proposed Middle Rio 
Grande Valley viticultural area is as follows:
    (1) The beginning point is at the transmission line tower in the 
middle of Section 34, T14N, R4E of the Santa Ana Pueblo, N. Mex. 
U.S.G.S. map;
    (2) The boundary follows the power transmission line east for 2.5 
miles until it converges with New Mexico State Route 25/Interstate 85 
(now known as Interstate 25) at Sec. 1, T13N, R4E on the San Felipe 
Pueblo, M. Mex. U.S.G.S. map;
    (3) It follows I-25 southwest for 1.2 miles until it arrives at an 
unimproved dirt road approx. .2 mile east of Algodones Cemetery, at Sec. 
11, T13N, R4E on the Placitas, N. Mex. U.S.G.S. map;
    (4) The boundary follows the unimproved dirt road southeast for 5.5 
miles until it meets another unimproved dirt road at Tecolote, NM, south 
of Sec. 27 and 28, T13N, R5E;
    (5) It travels southwest on the unimproved dirt road .7 mile until 
it meets NM-44 approx. 100 feet northwest of BM 6,075 in Placitas, NM, 
at T13N, R5E;
    (6) It then goes southeast on NM-44 for approx. 250 feet until it 
intersects the 6,100 foot elevation contour line approx. 250 feet 
southeast of BM 6,075, at T13N, R5E;
    (7) It then travels west for 3.5 miles on the 6,100 feet elevation 
contour line until it reaches a light-duty road on the Huertas Grant/
Cibola National Forest Boundary at Sec. 6, T12N, R5E;
    (8) The boundary runs north to northwest on the light-duty road for 
approx. .9 mile until it meets NM-44 next to BM 5,875 in Sec. 31, T13N, 
R5E;
    (9) It travels west 5.2 miles on NM-44 until it arrives at I-25 
(southbound interchange) near the Bernalillo Cemetery at T13N, R4E on 
the Bernalillo, N. Mex. U.S.G.S. map;
    (10) It proceeds south on I-25 for approx. 8.6 miles until it 
intersects with NM-556 at the east bound interchange at Sec. 1, T11N, 
R3E on the Alameda, N. Mex. U.S.G.S. map;
    (11) The boundary goes east approx. 5 miles on NM-556 until it 
intersects the 106[deg]30[min] longitude meridian, T11N, R4E;
    (12) Then it goes south on the 106[deg]30[min] longitude meridian 
for approx. 4.5 miles until it arrives at Montgomery Blvd. at Sec. 34, 
T10/11N, R4E;
    (13) The boundary travels west on Montgomery Blvd. for approx. 6.1 
miles until it meets the south exit ramp of 1-25 in Sec. 34, T11N, R3E;
    (14) Then it travels south on I-25 for approx. 13.3 miles (through 
Albuquerque, NM) until it intersects with NM-47 at Sec. 6, T8N, R3E on 
the Isleta, N. Mex. U.S.G.S. map;
    (15) It heads south on NM-47 for approx. 3.2 miles until it 
converges with the 4,900 foot elevation contour line at Isleta Pueblo, 
NM, in Sec. 24, T8N, R2E;
    (16) The boundary follows the 4,900 foot elevation contour line 
south for approx. 25 miles until it arrives at a point north on Madron, 
NM, at the Atchison, Topeka and Santa Fe Railroad (AT&SF RR) tracks, 
approx. 250 feet east of elevation mark 4,889 feet on the Turn, N. Mex. 
U.S.G.S. map;
    (17) It then travels north on the AT&SF RR tracks for approx. 350 
feet until it intersects NM-47 approx. 350 feet north of elevation mark 
4,889 feet;
    (18) The boundary goes southwest on NM-47 (through Turn, N.M.) for 
approx. 2.4 miles until it reaches the 106[deg]45[min] longitude 
meridian between the Turn, N. Mex. & Vequita, N. Mex. U.S.G.S. maps;
    (19) Then it travels south on the 106[deg]45[min] longitude meridian 
for approx. 4.7 miles until it meets the 34[deg]30[min] latitude 
parallel on the Veguita, N. Mex. U.S.G.S. map;
    (20) It then proceeds west on the 34[deg]30[min] latitude parallel 
for approx. 1 mile until it arrives at NM-47 approx. .75 mile south of 
San Juan Church;
    (21) Then it moves south on NM-47 for approx. 13.2 miles until it 
reaches an improved light-duty road at La Joya, NM, approx. 500 feet 
west of La Joya

[[Page 201]]

Cemetery on the La Joya, N. Mex. U.S.G.S. map;
    (22) It then travels south on the improved light-duty road for 
approx. 450 feet until it intersects another improved light-duty road;
    (23) Then it goes 500 feet west on the improved light-duty road 
until it reaches a north-south unimproved road at a point approx. .9 
mile east of the AT&SF RR tracks;
    (24) The boundary heads south on the unimproved road for approx. 7.9 
miles until it reaches the 34[deg]15[min] latitude parallel on the La 
Joya, N. Mex. U.S.G.S. map;
    (25) It travels west on the 34[deg]15[min] latitude parallel for 
approx. .9 mile until it intersects the 106[deg]52[min]30[min] longitude 
meridian on the Mesa Del Yeso, N. Mex. U.S.G.S. map;
    (26) It then goes south on the 106[deg]52[min]30[sec] longitude 
meridian for approx. 3.3 miles until it intersects the south section 
line of Sec. 19, T1S, R1E;
    (27) It then runs east for approx. 1.25 miles until it reaches the 
east section line (marked altitude 5,058 feet) of Sec. 20, T1S, R1E;
    (28) It travels south on the section line for approx. 7.1 miles, 
until it meets the Grant Boundary at altitude mark 4,734 feet at Sec. 
32/33, T2S, R1E on the Loma De Las Canas, N. Mex. U.S.G.S. map;
    (29) It proceeds east on the Grant Boundary for .25 mile until it 
arrives at the section line (Grant Boundary at Sec. 32/33, T2S, R1E;
    (30) The boundary moves south on the Grant Boundary for approx. 5.2 
miles until it meets the (Grant Boundary) section line near altitude 
spot 4,702 feet at Sec. 28/29, T3S, R1E;
    (31) The boundary goes west on the section line (Grant Boundary) for 
approx. .25 mile until it arrives at the section line at Sec. 28/29, 
T3S, R1E;
    (32) Then it moves south on the section line for approx. 5.7 miles 
until it meets an unimproved dirt road at Bosquecito, N.M. on the west 
section line of Sec. 9, T4S, R1E on the San Antonio, N. Mex. (15 minute 
series) U.S.G.S. map;
    (33) It heads south on the unimproved dirt road for approx. 2 miles 
until it changes to a light-duty road at Padilla Ranch in Sec. 21, T4S, 
R1E;
    (34) It follows the light-duty road for 2.25 miles until it 
intersects US-380/85, in Sec. 33, T4S, R1E;
    (35) Then it follows US-380/85, first west then it loops north for 
approx. 8 miles until it meets the 34[deg]00[min] latitude parallel;
    (36) The boundary moves west on the 34[deg]00[min] latitude parallel 
of the Socorro, N. Mex. U.S.G.S. map for approx. .75 mile until it meets 
the 4,800 foot elevation contour line in Sec. 35;
    (37) It meanders north on the 4,800 foot elevation contour line for 
approx. 9 miles until it meets the 34[deg]07[min]30[sec] latitude 
parallel;
    (38) It travels east for approx. .2 mile on the 
34[deg]07[min]30[sec] latitude parallel until it meets I-25 (US-60/85);
    (39) It goes north on I-25 (US-60/85) for approx 27.8 miles until it 
meets the Belen Highline Canal levee approx. 1.6 mile south of San 
Antonio Church on the Veguita, N. Mex. U.S.G.S. map;
    (40) Then the boundary follows the Belen Highline Canal north for 
approx. 9.4 miles until it intersects I-25, approx. .5 mile west of 
Bacaville, NM, on the Belen, N. Mex. U.S.G.S. map;
    (41) Then it travels north on I-25 for approx. 16 miles until it 
meets the 34[deg]52[min]30[sec] latitude parallel on the Isleta, N. Mex. 
U.S.G.S. map;
    (42) The boundary goes west on the 34[deg]52 30[sec] latitude 
parallel for approx. 1 mile until it arrives at the 106[deg]45[min] 
longitude meridian;
    (43) Then it moves north on the 106[deg]45[min] longitude meridian 
for approx. 16.5 miles until it reaches the 35[deg]07[min]30[sec] 
longitude meridian on the Albuquerque West, N. Mex. U.S.G.S. map;
    (44) At this point it heads east for approx. 1.2 miles along the 
35[deg]07[min] 30[sec] latitude parallel until it reaches the power 
transmission line towers at Sec. 3/4, T10N, R2E of the Los Griegos, N. 
Mex. U.S.G.S. map; and finally
    (45) From there it follows the power transmission line towers (and 
for 1 mile along a connecting unimproved road) north and northeast for a 
total of approx. 24.4 miles to the point of beginning at Sec. 34, T14N, 
R4E, of the Santa Ana Pueblo, N. Mex. U.S.G.S. map.

[T.D. ATF-266, 52 FR 2836, Feb. 2, 1988]

[[Page 202]]



Sec.  9.120  Sierra Foothills.

    (a) Name. The name of the viticultural area described in this 
section is ``Sierra Foothills.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Sierra Foothills viticultural area are four U.S.G.S. 
topographical maps of the 1:250,000 scale:
    (1) ``Chico'' (NJ 10-3), edition of 1958, revised 1970.
    (2) ``Sacramento'' (NJ 10-6), edition of 1957 revised 1970.
    (3) ``San Jose'' (NJ 10-9), edition of 1962, revised 1969.
    (4) ``Mariposa'' (NJ 11-7), edition of 1957, revised 1970.
    (c) Boundary. The Sierra Foothills viticultural area is located in 
portions of the counties of Yuba, Nevada, Placer, El Dorado, Amador, 
Calaveras, Tuolumne and Mariposa, in the State of California. The 
boundary is as follows:
    (1) Beginning on the ``Chico'' map at the point of intersection of 
the north border of T(ownship) 18 N(orth), R(ange) 6 E(ast), with S. 
Honcut Creek the boundary proceeds approximately 3.5 miles, in a 
generally south and southwesterly direction, along the eastern bank of 
S. Honcut Creek to the point where S. Honcut Creek meets the western 
border of T. 18 N., R. 6 E.;
    (2) Then south, approximately 15 miles, along the western borders of 
T. 18 N., T. 17 N., and T. 16 N. in R. 6 E., to the point where the 
western border of T. 16 N., R. 6 E. meets the northernmost perimeter of 
Beale Air Force Base in the southwestern corner of T. 16 N., R. 6 E.;
    (3) Then east, south and west along the perimeter of Beale Air Force 
Base to the point where the perimeter of Beale Air Force Base intersects 
the western border of R. 7 E. in T. 14 N.;
    (4) Then south, approximately 24 miles, along the western borders of 
T. 14 N., T. 13 N., T. 12 N., and T. 11 N. in R. 7 E., to the 
southwestern corner of T. 11 N., R. 7 E. (see ``Sacramento'' map);
    (5) Then east, approximately six miles, along the south border of T. 
11 N., R. 7 E., to the southeastern corner of T. 11 N., R. 7 E.;
    (6) Then in a south southeasterly direction, in a straight line, 
approximately three miles, to the northeasternmost corner of Sacramento 
County in T. 10 N., R. 8 E.;
    (7) Then continuing in a south southeasterly direction, in a 
straight line, along the Sacramento County--El Dorado County line, 
approximately 15 miles, to the point where the county line meets the 
Cosumnes River in the southwestern corner of T. 8 N., R. 9 E.;
    (8) Then south, in a straight line, approximately 14.1 miles, along 
the Sacramento County--Amador County line, to the point where the county 
line meets Dry Creek in the northwestern corner of T. 5 N., R. 9 E.;
    (9) Then in a south southeasterly direction, in a stright line, 
approximately 5.4 miles. along the San Joaquin County--Amador County 
line, to the point where the Mokelumne River forms the Amador County--
Calaveras County line in T. 4 N., R. 9 E.;
    (10) Then continuing in a south southeasterly direction, in a 
straight line, approximately 10.4 miles, along the San Joaquin County-
Calaveras County line, to the point where the power line meets the 
western border of T. 3 N., R. 10 E.;
    (11) Then in a southeasterly direction, in a straight line, 
approximately 22.4 miles, along the Calaveras County-Stanislaus County 
line to the point where the county line meets the Stanislaus River in T. 
1 S., R. 12 E. (see ``San Jose'' map);
    (12) Then in a southeasterly direction, in a straight line, 
approximately 20 miles, along the Tuolumne County-Stanislaus County line 
to the point where the county lines of Tuolumne, Mariposa, Stanislaus 
and Merced counties meet in the southeast corner of T. 3 S., R. 14 E.;
    (13) Then continuing along the Mariposa County-Merced County line in 
a generally southeasterly direction, approximately 37 miles, to the 
point where the county lines of Mariposa, Merced and Madera counties 
meet in the northwestern corner of T. 9 S, R. 18 E.;
    (14) Then northeasterly in a straight line, approximately 23 miles, 
along the Mariposa County-Merced County line to the point, approximately 
one mile west of Miami Mountain, where the Mariposa County-Merced County 
line

[[Page 203]]

meets the western border of the boundary of the Sierra National Forest 
in T. 6S, R. 20 E. (see ``Mariposa'' map);
    (15) Then in a generally northerly and westerly direction, along the 
western borders of the Sierra and Stanislaus National Forests in 
Mariposa County (see ``San Jose'' map);
    (16) Then in a generally northerly and westerly direction, along the 
western border of the Stanislaus National Forest in Tuolumne County (see 
``Sacramento'' map);
    (17) Then in a generally northerly and westerly direction, along the 
western border of the Stanislaus National Forest in Calaveras and Amador 
counties;
    (18) Then in a generally northerly and westerly direction, along the 
western border of the El Dorado National Forest in Amador, El Dorado and 
Placer counties (see ``Chico'' map);
    (19) Then in a generally northerly and westerly direction, along the 
western border of the Tahoe National Forest in Placer, Nevada and Yuba 
counties to the point south of Ruef Hill where the western border of the 
Tahoe National Forest intersects the northeast corner of T. 18 N., R. 6 
E.;
    (20) Then west, approximately five miles, along the north border of 
T. 18 N., R. 6 E., to the point of beginning.

[T.D. ATF-261, 52 FR 44105, Nov. 18, 1987]



Sec.  9.121  Warren Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Warren Hills.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Warren Hills viticultural area are thirteen U.S.G.S. 
maps of the 7.5 minute series. They are titled:
    (1) Riegelsville Quadrangle, Pennsylvania--New Jersey, 1956 
(photorevised 1968 and 1973).
    (2) Bloomsbury Quadrangle, New Jersey, 1955 (photorevised 1970).
    (3) High Bridge Quadrangle, New Jersey, 1954 (photorevised 1970).
    (4) Washington Quadrangle, New Jersey, 1954 (photorevised 1971).
    (5) Hackettstown Quadrangle, New Jersey, 1953 (photorevised 1971, 
photoinspected 1976).
    (6) Tranquility Quadrangle, New Jersey, 1954 (photorevised 1971).
    (7) Newton West Quadrangle, New Jersey, 1954 (photorevised 1971).
    (8) Flatbrookville Quadrangle, New Jersey--Pennsylvania, 1954 
(photorevised 1971).
    (9) Blairstown Quadrangle, New Jersey--Warren Co., 1954 
(photorevised 1971).
    (10) Portland Quadrangle, Pennsylvania--New Jersey, 1955 
(photorevised 1984).
    (11) Belvidere Quadrangle, New Jersey--Pennsylvania, 1955 
(photorevised 1984).
    (12) Bangor Quadrangle, Pennsylvania--New Jersey, 1956 (photorevised 
1968 and 1973).
    (13) Easton Quadrangle, New Jersey--Pennsylvania, 1956 (photorevised 
1968 and 1973).
    (c) Boundary--(1) General. The Warren Hills viticultural area is 
located in Warren County, New Jersey. The beginning point of the 
following boundary description is the junction of the Delaware River and 
the Musconetcong River, at the southern tip of Warren County (on the 
Riegelsville map).
    (2) Boundary Description. (i) From the beginning point, the boundary 
goes northeastward along the Musconetcong River about 32 miles (on the 
Riegelsville, Bloomsbury, High Bridge, Washington, Hackettstown, and 
Tranquaility maps) to the point where it intersects the Warren County-
Sessex County line;
    (ii) Then northwestward along that county line for about 10 miles 
(on the Tranquility, Newton West, and Flatbrookville maps) to Paulins 
Kill;
    (iii) Then generally southwestward along Paulins Kill (on the 
Flatbrookville, Blairstown and Portland maps) to the Delaware River;
    (iv) Then generally south-southwestward along the Delaware River (on 
the Portland, Belvidere, Bangor, Easton, and Reigelsville maps) to the 
beginning point.

[T.D. ATF-276, 53 FR 29676, Aug. 8, 1988]

[[Page 204]]



Sec.  9.122  Western Connecticut Highlands.

    (a) Name. The name of the viticultural area described in this 
section is ``Western Connecticut Highlands.''
    (b) Approved map. The approved map for determining the boundaries of 
the ``Western Connecticut Highlands'' viticultural area is 1 U.S.G.S. 
1:125,000 series map. It is titled State of Connecticut, Compiled in 
1965, Edition of 1966.
    (c) Boundary description. The boundaries of the proposed Western 
Connecticut Highlands viticultural area are as follows:
    (1) The beginning point is where Connecticut Route 15 
(Merritt Parkway) meets the Connecticut-New York State line near 
Glenville, CT, in the Town of Greenwich.
    (2) The boundary goes approximately 80 miles northerly along the 
Connecticut-New York State line to the northwest corner of Connecticut 
at the Town of Salisbury (Connecticut-New York-Massachusetts State 
line);
    (3) The boundary proceeds approximately 32 miles east along the 
Connecticut-Massachusetts State line to the northeast border of the Town 
of Hartland;
    (4) The boundary runs approximately 5 miles south along the eastern 
boundary of the Town of Hartland to the northeast corner of the Town of 
Barkhamstead (Litchfield-Hartford County line);
    (5) The boundary then goes south approximately 25 miles along the 
Litchfield-Hartford County line to the southeast corner of the Town of 
Plymouth (Litchfield-Hartford-New Haven County line);
    (6) The boundary then travels approximately 7 miles west along the 
Litchfield-New Haven County line to Connecticut Route 8 at 
Waterville in the Town of Waterbury;
    (7) The boundary proceeds approximately 25 miles south along 
Connecticut Route 8 to the intersection of Connecticut Route 15 
(Merritt Parkway) near Nichols in the Town of Trumbull;
    (8) The boundary travels approximately 32 miles west along 
Connecticut Route 15 (Merritt Parkway) to the beginning point.

[T.D. ATF-267, 53 FR 3747, Feb. 9, 1988]



Sec.  9.123  Mt. Veeder.

    (a) Name. The name of the viticultural area described in this 
section is ``Mt. Veeder.''
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the ``Mt. Veeder'' viticultural area are three U.S.G.S. 
Quadrangle (7.5 Minute Series) maps. They are titled:
    (1) Napa, California (1951 (Photorevised (1980))
    (2) Rutherford, California (1951 (Photorevised (1968))
    (3) Sonoma, California (1951 (Photorevised (1980))
    (c) Boundaries. (1) Beginning at unnamed peak, elevation 1,820, on 
the common boundary between Napa County and Sonoma County in section 23, 
Township 7 North, Range 6 West, Mount Diablo Base and Meridian on the 
Rutherford, Calif. U.S.G.S. map;
    (2) Thence south along common boundary between Napa County and 
Sonoma County to unnamed peak, elevation 1,135 feet on the Sonoma, 
Calif. U.S.G.S. map;
    (3) Thence continuing south along the ridge line approximately \1/2\ 
mile to unnamed peak, elevation 948 feet;
    (4) Thence due east in a straight line approximately \2/10\ mile to 
the 400 foot contour;
    (5) Thence following the 400 foot contour line north around Carneros 
Valley and then to the west of Congress Valley and Browns Valley on the 
Napa, Calif. U.S.G.S. map;
    (6) Thence paralleling Redwood Road to its intersection with the 
line dividing Range 5 West and Range 4 West, east of the unnamed 837 
foot peak;
    (7) Thence north along the line dividing Range 5 West and Range 4 
West approximately \4/10\ mile to the 400 foot contour;
    (8) Thence briefly southeast, then northwest along the 400 foot 
contour to the point where that contour intersects the northern border 
of Section 10, Township 6 North, Range 5 West immediately adjacent to 
Dry Creek on the Rutherford Calif. U.S.G.S. map;
    (9) Thence northwesterly along Dry Creek through Sections 3 and 4 of

[[Page 205]]

Township 6 North, Range 5 West, and Sections 32 and 31 of Township 7 
North, Range 5 West, to the fork of Dry Creek near the center of Section 
25 of Township 7 North, Range 6 West;
    (10) Continuing along the northern fork of Dry Creek through 
Sections 25 and 24 of Township 7 North, Range 6 West, to the point at 
which the main channel of Dry Creek ends and divides into three 
tributaries;
    (11) Thence following the middle tributary of Dry Creek through 
Sections 24 and 23 of Township 7 North, Range 6 West, to its source at 
the intersection with a trail indicated on the map;
    (12) Thence following a straight line west approximately \1/10\ mile 
to the top of unnamed peak, elevation 1,820, the beginning point.

[T.D. ATF-295, 55 FR 5844, Feb. 20, 1990, as amended by T.D. ATF-351, 58 
FR 65126, Dec. 13, 1993]



Sec.  9.124  Wild Horse Valley.

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

[T.D. ATF-278, 53 FR 48247, Nov. 30, 1988]



Sec.  9.125  Fredericksburg in the Texas Hill Country.

    (a) Name. The name of the viticultural area described in this 
section is ``Fredericksburg in the Texas Hill Country.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Fredericksburg in the Texas Hill Country viticultural 
area are six U.S.G.S. topographical maps of the 1:24,000 scale. They are 
titled:
    (1) Stonewall Quadrangle (1961);
    (2) Cain City Quadrangle (1963);
    (3) Fredericksburg East Quadrangle (1967, photorevised 1982);
    (4) Cave Creek School Quadrangle (1961);

[[Page 206]]

    (5) Fredericksburg West Quadrangle (1967, photorevised 1982); and
    (6) Lady Bird Johnson Park Quadrangle (1964, photoinspected 1979).
    (c) Boundaries. The Fredericksburg in the Texas Hill Country 
viticultural area is located entirely in Gillespie County, Texas, in the 
central part of the State approximately 80 miles west of Austin. The 
beginning point is on the Stonewall Quadrangle map near Blumenthal at a 
point on U.S. Route 290 approximately .1 mile east of bench mark (BM) 
1504, at the junction of a light-duty road known locally as Jung Road.
    (1) From the beginning point, the boundary proceeds on Jung Road in 
a northwesterly direction across the Pedernales River.
    (2) Then northwesterly approximately 1 mile along Jung Road as it 
parallels the Pedernales River.
    (3) Then north along Jung Road approximately 3.9 miles to a point 
where Jung Road meets a medium-duty road known locally as Texas Ranch 
Road 2721.
    (4) Then westerly approximately .1 mile on Texas Ranch Road 2721 to 
a point where it meets a medium-duty road known locally as Texas Ranch 
Road 1631.
    (5) Then northeasterly along Texas Ranch Road 1631 approximately 1 
mile to a point where Texas Ranch Road 1631 crosses the 1,800 foot 
contour line.
    (6) Then northwesterly in a meandering manner along the 1,800-foot 
contour line to the point where the 1,800-foot contour line crosses 
State Route 16.
    (7) Then in a generally westerly direction along the 1,800-foot 
contour line to the point where the 1,800-foot contour line crosses 
State Route 965.
    (8) Then in a northwesterly and then generally a southeasterly 
direction along the 1,800-foot contour line to a point where the 1,800-
foot contour line goes just south of the Kordzik Hills approximately 1 
mile due east of the city of Fredericksburg.
    (9) Then continuing on the 1,800-foot contour line in a generally 
northwesterly, southerly, and again northwesterly direction to the point 
where the 1,800-foot contour line crosses Loudon Road approximately 4 
miles northwest of Fredericksburg.
    (10) Then continuing on the 1,800-foot contour line in a 
northwesterly, then generally a southeasterly, westerly and finally a 
southerly direction to a point where the 1,800-foot contour line crosses 
a light-duty road known locally as Hayden Ranch Road about 50 yards 
north of Texas Ranch Road 2093.
    (11) Then 50 yards south on Hayden Ranch Road to Texas Ranch Road 
2093 and then east on Texas Ranch Road 2093 approximately .15 mile to an 
unimproved, southbound, gravel and dirt county road known locally as 
Beverly Gold's Road.
    (12) Then approximately 2.6 miles south on Beverly Gold's Road to a 
point where it joins Texas State Route 16.
    (13) Then approximately 1.5 miles northeast on State Route 16 to a 
light-duty county road known locally as Bear Creek Road.
    (14) Then approximately 1 mile in a southeasterly, northeasterly, 
and then a southerly direction along Bear Creek Road to the point where 
the road crosses the 1,700-foot contour line.
    (15) Then in a generally easterly direction for approximately 10 
miles along the 1,700-foot contour line to a point where the 1,700-foot 
contour line crosses Texas Ranch Road 1376.
    (16) Then approximately 3.1 miles southeast along Texas Ranch Road 
1376 to a light-duty road at Luckenbach known locally both as Kunz-Klien 
Road and Luckenbach Road.
    (17) Then approximately 1.3 miles in a generally northeasterly and 
then an easterly direction along Luckenbach Road and continuing along 
Luckenbach Road in a northerly direction about 2.5 miles to the point 
where Luckenbach Road joins U.S. Route 290.
    (18) Then west approximately .2 mile on U.S. Route 290 to the 
intersection with Jung Road, the point of beginning.

[T.D. ATF-279, 53 FR 51541, Dec. 22, 1988]



Sec.  9.126  Santa Clara Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Santa Clara Valley.''
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of

[[Page 207]]

the ``Santa Clara Valley'' viticultural area are 25 U.S.G.S. Quadrangle 
(7.5 Minute Series) maps. They are titled:
    (1) Calaveras Reservoir, Calif., 1961 (photorevised 1980);
    (2) Castle Rock Ridge, Calif., 1955 (photorevised 1968), 
photoinspected 1973;
    (3) Chittenden, Calif., 1955 (photorevised 1980);
    (4) Cupertino, Calif., 1961 (photorevised 1980);
    (5) Gilroy, Calif., 1955 (photorevised 1981);
    (6) Gilroy Hot Springs, Calif., 1955 (photorevised 1971), 
photoinspected 1973;
    (7) Lick Observatory, Calif., 1955 (photorevised 1968), 
photoinspected 1973;
    (8) Loma Prieta, Calif., 1955 (photorevised 1968);
    (9) Los Gatos, Calif., 1953 (photorevised 1980);
    (10) Milpitas, Calif., 1961 (photorevised 1980);
    (11) Mindego Hill, Calif., 1961 (photorevised 1980);
    (12) Morgan Hill, Calif., 1955 (photorevised 1980);
    (13) Mt. Madonna, Calif., 1955 (photorevised 1980);
    (14) Mt. Sizer, Calif., 1955 (photorevised 1971), photoinspected 
1978;
    (15) Mountain View, Calif., 1961 (photorevised 1981);
    (16) Newark, Calif., 1959 (photorevised 1980);
    (17) Niles, Calif., 1961 (photorevised 1980);
    (18) Pacheco Peak, Calif., 1955 (photorevised 1971);
    (19) Palo Alto, Calif., 1961 (photorevised 1973);
    (20) San Felipe, Calif., 1955 (photorevised 1971);
    (21) San Jose East, Calif., 1961 (photorevised 1980);
    (22) San Jose West, Calif., 1961 (photorevised 1980);
    (23) Santa Teresa Hills, Calif., 1953 (photorevised 1980);
    (24) Three Sisters, Calif., 1954 (photorevised 1980);
    (25) Watsonville East, Calif., 1955 (photorevised 1980); and
    (c) The boundaries of the proposed Santa Clara Valley viticultural 
area are as follows:
    (1) The beginning point is at the junction of Elephant Head Creek 
and Pacheco Creek (approx. .75 mile southwest of the Pacheco Ranger 
Station) on the Pacheco Peak, Calif. U.S.G.S. map.
    (2) From the beginning point the boundary moves in a northerly 
direction up Elephant Head Creek approx. 1.2 miles until it intersects 
the 600 foot elevation contour line;
    (3) Then it meanders in a northwesterly direction along the 600 foot 
contour line approx. 55 miles until it intersects Vargas Road in the 
northwest portion of Sec. 25, T4S/RlW on the Niles, Calif. U.S.G.S. map;
    (4) Then it travels in a northwesterly direction approx. .6 mile to 
the intersection of Morrison Canyon Road in the eastern portion of Sec. 
23, T4S/RlW;
    (5) Then it follows Morrison Canyon Road west approx. 1.5 miles to 
Mission Boulevard (Highway 238) at Sec. 22, T4S/RlW;
    (6) Then it moves northwest on Mission Boulevard (Highway 238) 
approx. .6 mile to the intersection of Mowry Avenue just past the 
Sanatorium at Sec. 22, T4S/RlW;
    (7) It then goes in a southwesterly direction on Mowry Avenue 
approx. 3.6 miles to the intersection of Nimitz Freeway (Highway 880) 
(depicted on the map as Route 17) at Sec. 5, T5S/RlW, on the Newark, 
Calif. U.S.G.S. map;
    (8) It then moves along the Nimitz Freeway (Highway 880) in a 
southeasterly direction for approx. 9 miles to the intersection of 
Calaveras Boulevard (Highway 237) at Milpitas on the Milpitas, Calif. 
U.S.G.S. map;
    (9) Then it follows Highway 237 in a westerly direction approx. 7.2 
miles to intersection of Bay Shore Freeway (Highway 101) at Moffett 
Field on the Mt. View, Calif. U.S.G.S. map;
    (10) Then in a northwest direction follow Bay Shore Freeway (Highway 
101) for approx. 6.5 miles to the intersection of the San Francisquito 
Creek (Santa Clara County/San Mateo County boundary) at Palo Alto T5S/
R2W, on the Palo Alto, Calif. U.S.G.S. map;
    (11) Then it heads west on San Francisquito Creek (Santa Clara 
County/San Mateo County boundary)

[[Page 208]]

approx. 7 miles until it converges with Los Trancos Creek (Santa Clara 
County/San Mateo County boundary) near Bench Mark 172, approx. 100 feet 
east of Alpine Road;
    (12) It travels south approx. 4 miles along Los Trancos Creek (Santa 
Clara County/San Mateo County boundary) until it intersects the 600 foot 
elevation contour line at El Corte De Madera, approx. .5 mile north of 
Trancos Woods on the Mindego Hill, Calif. U.S.G.S. map;
    (13) It moves along the 600 foot elevation contour line in a 
southeasterly direction approx. 10 miles to Regnart Road at Regnart 
Creek on the Cupertino, Calif. U.S.G.S. map;
    (14) It goes northeast along Regnart Road, approx. .7 mile to the 
400 foot elevation contour line (.3 mile southwest of Regnart School);
    (15) It travels along the 400 foot elevation contour line southeast 
approx. 1.4 miles to the north section line of Section 36, T7S/R2W at 
Blue Hills, CA;
    (16) The boundary goes east on the section line approx. .4 mile to 
Saratoga Sunnyvale Road (Highway 85);
    (17) It travels south on Saratoga Sunnyvale Road (Highway 85) 
approx. 1 mile to the south section line of Section 36, T7/8S R2W;
    (18) Then it goes west on the section line approx. .75 mile to the 
first intersection of the 600 foot elevation contour line;
    (19) It follows the 600 foot elevation contour line southeast 
approx. .75 mile to Pierce Road south of Calabazas Creek;
    (20) It then travels south on Pierce Road approx. .4 mile to the 
first intersection of the 800 foot elevation contour line;
    (21) Then it runs southeast approx. 28 miles on the 800 foot 
elevation contour line to the east section line of Sec. 25, T10S/R2E/R3E 
approx. .5 mile north of Little Arthur Creek on the Mt. Madonna, Calif. 
U.S.G.S. map;
    (22) Then it goes south on the section line approx. .5 mile to the 
800 foot elevation contour line approx. .2 mile south of Little Arthur 
Creek;
    (23) Then it goes southeast along the 800 foot elevation contour 
line approx. 2.7 miles to Hecker Pass Road (Highway 152) approx. 1.25 
miles east of Hecker Pass on the Watsonville East, Calif. U.S.G.S. map;
    (24) The boundary goes northeast on Hecker Pass Road (Highway 152) 
approx. .75 mile to the intersection of the 600 foot elevation contour 
line just west of Bodfish Creek;
    (25) It travels southeast along the 600 foot elevation contour line 
approx. 7.3 miles to the first intersection of the western section line 
of Sec. 30, T11S/R3E/R4E on the Chittenden, Calif. U.S.G.S. map;
    (26) Then it follows south along the section line approx. 1.9 miles 
to the south township line at Sec. 31, T11S/T12S, R3E/R4E;
    (27) It moves in an easterly direction along the township line 
approx. 12.4 miles to the intersection of T11S/T12S and R5E/R6E on the 
Three Sisters, Calif. U.S.G.S. map;
    (28) Then it goes north along R5E/R6E range line approx. 5.3 miles 
to Pacheco Creek on the Pacheco Creek, Calif. U.S.G.S. map;
    (29) Then it moves northeast along Pacheco Creek approx. .5 mile to 
Elephant Head Creek at the point of beginning.

[T.D. ATF-286, 54 FR 12606, Mar. 28, 1989]



Sec.  9.127  Cayuga Lake.

    (a) Name. The name of the viticultural area described in this 
section is ``Cayuga Lake.''
    (b) Approved maps. The appropriate map for determining the 
boundaries of the Cayuga Lake viticultural area is one U.S.G.S. map 
scaled 1:250,000, titled ``Elmira, New York; Pennsylvania,'' 1962 
(revised 1978).
    (c) Boundaries. The Cayuga Lake viticultural area is located within 
the counties of Seneca, Tompkins, and Cayuga, in the State of New York, 
within the Finger Lakes viticultural area. The boundaries are as 
follows:
    (1) Commencing at the intersection of State Route 90 with State 
Route 5 in Cayuga County, north of Cayuga Lake.
    (2) Then south along State Route 90 to a point approximately one 
mile past the intersection of State Route 90 with State Route 326.
    (3) Then south along the primary, all-weather, hard surface road, 
approximately \3/4\ mile, until it becomes State Route 90 again at Union 
Springs.

[[Page 209]]

    (4) Then south/southeast along State Route 90 until it intersects 
the light-duty, all-weather, hard or improved surface road, 
approximately 1.5 miles west of King Ferry.
    (5) Then south along another light-duty, all-weather, hard or 
improved surface road, approximately 4 miles, until it intersects State 
Route 34B, just south of Lake Ridge.
    (6) Then follow State Route 34B in a generally southeast direction 
until it intersects State Route 34, at South Lansing.
    (7) Then south along State Route 34, until it meets State Route 13 
in Ithaca.
    (8) Then southwest along State Routes 34/13, approximately 1.5 
miles, until it intersects State Route 79, in Ithaca.
    (9) Then west along State Route 79, approximately \1/2\ mile, until 
it intersects State Route 96.
    (10) Then along State Route 96, in a generally northwest direction, 
until it intersects State Routes 414 and 96A in Ovid.
    (11) Then north along State Routes 96/414, until they divide, 
approximately 2.5 miles north of Ovid.
    (12) Then along State Route 414, in a generally northeast direction, 
until it meets U.S. Route 20 in the town of Seneca Falls.
    (13) Then along U.S. Route 20, in a northeast direction, until it 
intersects State Routes 318, 89, and 5.
    (14) Then along U.S. Route 20/State Route 5, in a northeast 
direction, to the beginning point, at the intersection with State Route 
90.

[T.D. ATF-269, 53 FR 9769, Mar. 25, 1988]



Sec.  9.128  Seneca Lake.

    (a) Name. The name of the viticultural area described in this 
section is ``Seneca Lake''.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the Seneca Lake viticultural area are 13 United States Geological 
Survey (USGS) topographic maps (Scale: 1:24,000). The maps are titled:
    (1) Burdett Quadrangle (New York--Schuyler Co. 1950 (photoinspected 
1976));
    (2) Montour Falls Quadrangle (New York 1978 (photorevised 1976));
    (3) Beaver Dams Quadrangle (New York 1953);
    (4) Reading Center Quadrangle (New York 1950 (photorevised 1978));
    (5) Dundee Quadrangle (New York 1942 (photoinspected 1976));
    (6) Dresden Quadrangle (New York 1943 (photorevised 1978));
    (7) Penn Yan Quadrangle (New York--Yates Co. 1942 (photoinspected 
1976));
    (8) Stanley Quadrangle (New York 1952);
    (9) Phelps Quadrangle (New York--Ontario Co. 1953);
    (10) Geneva North Quadrangle (New York 1953 (photorevised 1976));
    (11) Geneva South Quadrangle (New York 1953 (photorevised 1978));
    (12) Ovid Quadrangle (New York--Seneca Co. 1970); and
    (13) Lodi Quadrangle (New York 1942).
    (c) Boundaries. The Seneca Lake viticultural area surrounds Seneca 
Lake in upstate New York and is located in portions of Schuyler, Yates, 
Ontario, and Seneca counties. The boundaries are as follows:
    (1) Beginning in the town of Watkins Glen at the State Route 414 
bridge over the New York State Barge Canal, follow the Canal south 
approximately 0.2 miles to the mouth of Glen Creek, on the Burdette, 
N.Y. map;
    (2) Follow Glen Creek upstream (west), crossing onto the Montour 
Falls, N.Y. map and continuing to the road locally known as the Van 
Zandt Hollow Road on the Beaver Dams, N.Y. map;
    (3) Proceed north on Van Zandt Hollow Road to Cross Road;
    (4) Continue north on Cross Road, which changes to Cretsley Road, to 
its intersection with Mud Lake Road (County Road 23) on the Reading 
Center, N.Y. map;
    (5) Proceed west approximately 0.7 miles on County Road 23 to its 
intersection with Pre-emption Road;
    (6) Then continue north on Pre-emption Road along the Dundee, N.Y., 
Penn Yan, N.Y. and Dresden, N.Y. maps, for approximately 18 miles to its 
junction with an unnamed light duty road just east of Keuka Lake Outlet 
on the Penn Yan, N.Y. map;

[[Page 210]]

    (7) Follow the unnamed light duty road across the Keuka Outlet, 
traveling approximately 0.3 miles to its junction in Seneca Mills with 
an unnamed light duty road, known locally as Outlet Road;
    (8) Follow Outlet Road west along the north bank of the Keuka Outlet 
approximately 0.6 miles, until the road forks;
    (9) At the fork, continue north approximately 1 mile, on an unnamed 
light duty road know locally as Stiles Road, to its junction with Pre-
emption Road.
    (10) Then proceed north 14.6 miles on Pre-emption Road across the 
Stanley, N.Y. map, to an unnamed medium duty road, known locally as 
County Road 4, on the Phelps, N.Y. map;
    (11) Continue west approximately 4.5 miles on County Road 4 to its 
intersection with Orleans Road in Seneca Castle;
    (12) Then proceed north on Orleans Road, which becomes Seneca Castle 
Road, for 2.1 miles, to Warner Corners where the name of the road 
changes to Wheat Road;
    (13) Continue north from Warner Corners on Wheat Road approximately 
1.9 miles to its intersection with State Route 88;
    (14) Continue north on State Route 88 approximately 1.4 miles, to 
its intersection with State Route 96 at Knickerbocker Corner;
    (15) Continue east on State Route 96 approximately 10.4 miles, to 
the intersection with Brewer Road on the Geneva North, N.Y. map;
    (16) Follow Brewer Road south approximately 1.8 miles to the 
intersection with U.S. Route 20/State Route 5;
    (17) At the intersection of Brewer Road and U.S. Route 20/State 
Route 5, continue south approximately 0.1 miles, following an imaginary 
line to the south bank of the Seneca River;
    (18) Follow the south bank of the Seneca River east approximately 
0.1 miles to the mouth of the Kendig Creek;
    (19) Continue south following the Kendig Creek approximately 3.3 
miles to the Creek's intersection with Yellow Tavern Road on the Geneva 
South, N.Y. map;
    (20) Follow Yellow Tavern Road west approximately 0.1 miles, to its 
intersection with Post Road;
    (21) Follow Post Road south approximately 1.4 miles to its junction 
with State Route 96A;
    (22) Then follow State Route 96A south 17.5 miles across the 
Dresden, N.Y., Ovid, N.Y., and Lodi, N.Y. maps to the village of Lodi;
    (23) In Lodi, continue south where State Route 96A changes to S. 
Main Street and then changes to an unnamed medium duty road (known 
locally as Center Road-Country Road 137);
    (24) Continue south on Center Road-Country Road 137 for 
approximately 4.9 miles to the Seneca/Schuyler County Line;
    (25) Then proceed west 0.5 miles on the county line to Logan Road;
    (26) Then proceed 8.6 miles south on Logan Road to State Route 227 
(identified by the petitioner as State Route 79) on the Burdette, N.Y. 
map;
    (27) Then proceed approximately 800 feet east on Route 227 to 
Skyline Drive;
    (28) Then proceed south on Skyline Drive for 2.5 miles to an unnamed 
stream;
    (29) Follow the unnamed stream west approximately 0.6 miles to its 
intersection with State Route 414; and
    (30) Continue west on State Route 414 approximately 0.5 miles to the 
beginning point on the bridge over the New York State Barge Canal.

[TTB T.D.-3, 68 FR 39835, July 3, 2003]



Sec.  9.129  Arroyo Grande Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Arroyo Grande Valley.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of Arroyo Grande Valley viticultural area are four U.S.G.S. 
topographical maps of the 1:24,000 scale:
    (1) ``Arroyo Grande, NE, California,'' edition of 1965, photorevised 
1978.
    (2) ``Tar Spring Ridge, California,'' edition of 1967.
    (3) ``Nipomo, California,'' edition of 1965.
    (4) ``Oceano, California,'' edition of 1965, photorevised 1979.
    (c) Boundary: The Arroyo Grande Valley viticultural area is located 
in

[[Page 211]]

San Luis Obispo County in the State of California. The boundary is as 
follows:
    (1) Beginning on the ``Arroyo Grande'' map at the point of 
intersection of State Route 227 and Corbit Canyon Road in Arroyo Grande 
Township, the boundary proceeds approximately 0.1 mile, in a 
northwesterly direction, along the roadway of State Route 227 to the 
point where State Route 227 intersects with Printz Road in Poorman 
Canyon in the Santa Manuela land grant;
    (2) Then northwesterly, approximately 1.5 miles, along Printz Road 
to its intersection with Noyes Road in the Santa Manuela land grant;
    (3) Then northerly, approximately 1.5 miles, along Noyes Road to its 
intersection with State Route 227 (at vertical control station ``BM 
452'') in the Santa Manuela land grant;
    (4) Then in a northeasterly direction in a straight line 
approximately 1.4 miles to the intersection of Corbit Canyon Road with 
an unnamed, unimproved road at Verde in the Santa Manuela land grant;
    (5) Then approximately 1.9 miles in a generally northeasterly 
direction, along the meanders of said unimproved road to its easternmost 
point, prior to the road turning back in a northwesterly direction to 
its eventual intersection with Biddle Ranch Road;
    (6) Then in a northwesterly direction approximately 1.13 miles in a 
straight line to the summit of an unnamed peak identified as having an 
elevation of 626 feet in the Santa Manuela land grant;
    (7) Then easterly, approximately 0.46 mile in a straight line, to 
the summit of an unnamed peak identified as having an elevation of 635 
feet, in the Santa Manuela land grant;
    (8) Then east northeasterly, approximately 0.27 mile in a straight 
line, to the summit of an unnamed peak identified as having an elevation 
of 799 feet, in the Santa Manuela land grant;
    (9) Then easterly, approximately 0.78 mile in a straight line, to 
the summit of an unnamed peak identified as having an elevation of 952 
feet, in the Santa Manuela land grant;
    (10) Then easterly, approximately 0.7 mile in a straight line, to 
the summit of an unnamed peak identified as having an elevation of 1,188 
feet, in the southwest corner of section 29, T. 31 S., R. 14 E.;
    (11) Then east southeasterly, approximately 0.9 mile in a straight 
line, to the point at which Upper Arroyo Grande Road crosses the 
spillway of Lopez Dam in section 32, T. 31 S., R. 14 E. (see ``Tar 
Spring Ridge'' map);
    (12) Then, in a generally easterly direction, approximately 3.64 
miles along Upper Arroyo Grande Road (under construction) to the point 
where the broken red line for the proposed location of said road 
diverges in a northerly direction from the light duty roadbed of said 
road in the Arroyo Grande land grant (north of section 35, T. 31 S., R. 
14 E.);
    (13) Then, in a generally northerly direction, approximately 2.5 
miles, along the broken red line for the proposed location of Upper 
Arroyo Grande Road to its point of intersection with an unnamed 
unimproved road (this intersection being 1.2 miles northwest of Ranchita 
Ranch) in the Arroyo Grande land grant;
    (14) From the point of intersection of the proposed location of 
Upper Arroyo Grande Road and the unnamed unimproved road, the boundary 
proceeds in a straight line, east northeasterly, approximately 1.8 
miles, to the summit of an unnamed peak identified as having an 
elevation of 1,182 feet, in the northwest corner of section 19, T. 31 
S., R. 15 E.;
    (15) Then southeasterly, approximately 1.8 miles in a straight line, 
to the summit of an unnamed peak identified as having an elevation of 
1,022 feet, in the northeast corner of section 29, T. 31 S., R. 15 E.;
    (16) Then west southwesterly, approximately 0.84 mile in a straight 
line, to the summit of an unnamed peak identified as having an elevation 
of 1,310 feet, in the northeast corner of section 30, T. 31 S., R. 15 
E.;
    (17) Then south southeasterly, approximately 1.46 miles in a 
straight line, to the summit of an unnamed peak identified as having an 
elevation of 1,261 feet, in section 32, T. 31 S., R. 15 E.;
    (18) Then southeasterly, approximately 0.7 mile in a straight line, 
to the summit of an unnamed peak identified as having an elevation of 
1,436 feet,

[[Page 212]]

in the northwest corner of section 4, T. 32 S., R. 15 E.;
    (19) Then southwesterly, approximately 1.07 miles in a straight 
line, to the summit of an unnamed peak identified as having an elevation 
of 1,308 feet, in the Huasna land grant;
    (20) Then west northwesterly, approximately 1.50 miles in a straight 
line, to the summit of an unnamed peak identified as having an elevation 
of 1,070 feet, along the east border of section 1, T. 32 S., R. 14 E.;
    (21) Then south southeasterly, approximately 1.38 miles in a 
straight line, to the summit of an unnamed peak identified as having an 
elevation of 1,251 feet, in the Hausna land grant;
    (22) Then southwesterly, approximately 0.95 mile in a straight line, 
to the summit of an unnamed peak identified as having an elevation of 
1,458 feet, in the Santa Manuela land grant;
    (23) Then southeasterly, approximately 0.8 mile in a straight line, 
to the summit of an unnamed peak identified as having an elevation of 
1,377 feet, in the Huasna land grant;
    (24) Then southwesterly, approximately 1.4 miles in a straight line, 
to the summit of an unnamed peak identified as having an elevation of 
1,593 feet, in the Santa Manuela land grant (See ``Nipomo'' map);
    (25) Then southwesterly, approximately 1.1 miles in a straight line, 
to the jeep trail immediately north of the summit of an unnamed peak 
identified as having an elevation of 1,549 feet, just north of section 
35, T. 32 S., R. 14 E.;
    (26) Then north northwesterly, approximately 2.73 miles along the 
jeep trail on Newsom Ridge to the point of intersection of said jeep 
trail and an unnamed unimproved road (immediately north of section 28, 
T. 32 S., R. 14 E.);
    (27) Then southerly, approximately 1.63 miles along said unimproved 
road to its intersection with Upper Los Berros No. 2 Road in section 33, 
T. 32 S., R. 14 E.;
    (28) Then southwesterly, approximately 3.27 miles along the stream 
in Los Berros Canyon (of which approximately 2.0 miles are along Upper 
Los Berros No. 2 Road) to the point at which U.S. Highway 101 crosses 
said stream in section 35, T. 12 N., R. 35 W. (See ``Oceano'' map);
    (29) Then across U.S. Highway 101 and continuing in a southwesterly 
direction approximately 0.1 mile to Los Berros Arroyo Grande Road;
    (30) Then following Los Berros Arroyo Grande Road in generally a 
northwesterly direction approximately 4 miles until it intersects with 
Valley Road;
    (31) Then following Valley Road in generally a northerly direction 
approximately 1.2 miles until it intersects with U.S. Highway 101;
    (32) Then in a northwesterly direction along U.S. Highway 101 
approximately .35 mile until it intersects with State Highway 227;
    (33) Then in a northeasterly and then a northerly direction along 
State Highway 227 approximately 1.4 miles to the point of beginning.

[T.D. ATF-291, 55 FR 287, Jan. 4, 1990]



Sec.  9.130  San Ysidro District.

    (a) Name. The name of the viticultural area described in this 
section is ``San Ysidro District.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the San Ysidro District viticultural area are four 
U.S.G.S. Quadrangle (7.5 minute series) maps. They are titled:
    (1) Gilroy, Calif., 1955 (photorevised 1981);
    (2) Chittenden, Calif., 1955 (photorevised 1980);
    (3) San Felipe, Calif., 1955 (photorevised 1971);
    (4) Gilroy Hot Springs, Calif., 1955 (photorevised 1971, 
photoinspected 1978.)
    (c) Boundary. The San Ysidro District viticultural area is located 
in Santa Clara County, California, within the Santa Clara Valley 
viticultural area. The boundary is as follows:
    (1) The beginning point is the intersection of California State 
Highway 152 and Ferguson Road with an un-named wash, or intermittent 
stream, on the Gilroy, Calif., U.S.G.S. map;
    (2) From the beginning point, the boundary follows the wash 
northeast as it runs co-incident with the old Grant boundary for 
approximately 3,800 feet;
    (3) The boundary then follows the wash when it diverges from the old

[[Page 213]]

Grant boundary and continues approximately 2,300 feet in a northeasterly 
direction, crosses and recrosses Crews Road, then follows the wash 
southeast until the wash turns northeast in section 35, T.10S., R.4E., 
on the Gilroy Hot Springs, Calif., map;
    (4) The boundary then diverges from the wash, continuing in a 
straight line in a southeasterly direction, across an unimproved road, 
until it intersects with the 600 foot contour line.
    (5) The boundary then proceeds in a straight line at about the 600 
foot elevation in a southeasterly direction until it meets the minor 
northerly drainage of the San Ysidro Creek;
    (6) The boundary then follows the minor northerly drainage of San 
Ysidro Creek southeast for approximately 2,000 feet to the seasonal pond 
adjacent to Canada Road;
    (7) From the seasonal pond, the boundary follows the southerly 
drainage of San Ysidro Creek for about 1,300 feet until it reaches the 
southwest corner of section 36, T.10S., R.4E.;
    (8) The boundary then continues in a straight line in a southerly 
direction across Canada Road for approximately 900 feet until it 
intersects with the 600 foot contour line;
    (9) The boundary follows the 600 foot contour line for approximately 
6,000 feet in a generally southeasterly direction, diverges from the 
contour line and continues southeast another 1,200 feet until it meets 
an unimproved road near the north end of a seasonal pond on the San 
Felipe, Calif., U.S.G.S. map;
    (10) The boundary follows the unimproved road to Bench Mark 160 at 
Highway 152.
    (11) The boundary then follows Highway 152 in a northwesterly 
direction across the northeast corner of the Chittenden, Calif., 
U.S.G.S. map, and back to the beginning point at the junction of 
Ferguson Road and Highway 152.

[T.D. ATF-305, 55 FR 47749, Nov. 15, 1990]



Sec.  9.131  Mt. Harlan.

    (a) Name. The name of the viticultural area described in this 
section is ``Mt. Harlan.''
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the ``Mt. Harlan'' viticultural area are two U.S.G.S. 
Quadrangle (7.5 Minute Series) maps. They are titled:
    (1) Mt. Harlan, California (Photorevised (1984)).
    (2) Paicines, California (Photorevised (1984)).
    (c) Boundaries. (1) The point of beginning is the unnamed 
3,063[foot] peak on the county line between San Benito and Monterey 
Counties in Township 14 S., Range 5 E., Section 34 of the ``Mt. 
Harlan,'' California Quadrangle map.
    (2) From the point of beginning on the Mt. Harlan Quadrangle map 
proceed in a generally northwesterly direction along the county line 
through Sections 34 and 33, briefly into Section 28 and back through 
Section 33, and then through Sections 32, 29, and 30 all in Township 14 
S., Range 5 E., to the point at which the county line intersects the 
line between Sections 30 and 19 of said Township and Range.
    (3) Thence proceed in a straight line northeast approximately 750 
feet to the commencement of the westernmost stream leading into 
Pescadero Creek. The stream commences in the southwest corner of Section 
19 in Township 14 S., Range 5 E.
    (4) Thence following the stream in a northeasterly direction to its 
intersection with the 1,800-foot contour line near the center of Section 
19 in Township 14 S., Range 5 E.
    (5) Thence following the 1,800[foot] contour line in a southeasterly 
and then northeasterly direction through Sections 19, 20, 17, 16, 15, 
14, then through the area north of Section 14, then southerly through 
Section 13 on the Mt. Harlan Quadrangle map and continuing on the 
``Paicines,'' California Quadrangle map to the point at which the 1800-
foot contour line intersects the line between Sections 13 and 24 of 
Township 14 S., Range 5 E.
    (6) Thence along the 1,800[foot] contour line through Section 24, 
back up through Section 13, and then in a southerly direction through 
Sections 18, 19, and 30 (all on the Paicines Quadrangle map), then 
westerly through Section 25 on the Paicines Quadrangle map and 
continuing on the Mt. Harlan Quadrangle map, and then through Section 26 
to the point of intersection of said 1,800[foot] contour and Thompson 
Creek near the center of Section 26 in

[[Page 214]]

Township 14 S., Range 5 E., on the Mt. Harlan Quadrangle map.
    (7) Thence southwesterly along Thompson Creek to its commencement in 
the northwest corner of Section 34, Township 14 S., Range 5 E.
    (8) Thence in a straight line to the beginning point.

[T.D. ATF-304, 55 FR 47747, Nov. 15, 1990]



Sec.  9.132  Rogue Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Rouge Valley.''
    (b) Approved map. The appropriate map for determining the boundaries 
of the Rogue Valley viticultural area is one U.S.G.S. map titled 
``Medford,'' scale 1:250,000 (1955, revised 1976).
    (c) Boundaries. The Rogue Valey viticultural area is located 
entirely within Jackson and Josephine Counties in southwestern Oregon. 
The boundaries are as follows:
    (1) Beginning at the point of intersection of Interstate 5 and the 
Josephine County/Douglas County line approximately 20 miles north of 
Grants Pass, the boundary proceeds southerly and southwesterly along 
U.S. Interstate 5 to and including the town of Wolf Creek;
    (2) Then westerly and southerly out of the town of Wolf Creek along 
the Southern Pacific Railway Line to and including the town of Hugo;
    (3) Then southwesterly along the secondary, hard surface road known 
as Hugo Road to the point where the Hugo Road crosses Jumpoff Joe Creek;
    (4) Then westerly and down stream along Jumpoff Joe Creek to the 
intersection of Jumpoff Joe Creek and the Rogue River;
    (5) Then northwesterly and down stream along the Rogue River to the 
first point where the Wild and Scenic Rogue River designated area 
touches the easterly boundary of the Siskiyou National Forest just south 
of Galice;
    (6) Then in a generally southwesterly direction (with many 
diversions) along the easterly border of the Siskiyou National Forest to 
the 42 degree 0 minute latitude line;
    (7) Then easterly along the 42 degree 0 minute latitude line to the 
point where the Siskiyou National Forest again crosses into Oregon 
approximately 1 mile east of U.S. Highway 199;
    (8) Then in a generally northeasterly direction and then a 
southeasterly direction (with many diversions) along the northern 
boundary of the Siskiyou National Forest to the point where the Siskiyou 
National Forest touches the Rogue River National Forest at Big Sugarloaf 
Peak;
    (9) Then in a generally easterly direction (with many diversions) 
along the northern border of the Rogue River National Forest to the 
point where the Rogue River National Forest intersects with Slide Creek 
approximately 6 miles southeast of Ashland;
    (10) Then southeasterly and northeasterly along Slide Creek to the 
point where it intersects State Highway 273;
    (11) Then northwesterly along State Highway 273 to the point where 
it intersects State Highway 66;
    (12) Then in an easterly direction approximately 5 miles along State 
Highway 66 to the east line of Township 39 South, Range 2 East (T39S, 
R2E);
    (13) Then following the east line of T39S, R2E, in a northerly 
direction to the northeast corner of T39S, R2E;
    (14) Then westerly approximately 5 miles along the north line of 
T39S, R2E, to the 2,600 foot contour line;
    (15) Then in a northerly direction following the 2,600 foot contour 
line across Walker Creek and then in a southwesterly direction to the 
point where the 2,600 foot contour line touches the east line of T38S, 
R1E;
    (16) Then northerly along the east line of T38S, R1E, to the 
northeast corner of T38S, R1E;
    (17) Then westerly along the north line of T38S, R1E, to the 
northwest corner of T38S, R1E;
    (18) Then northerly along the west line of T37S, R1E, to the 
northwest corner of T37S, R1E.
    (19) Then easterly along the north lines of T37S, R1E, and T37S, 
R2E, to the southeast corner of T36S, R2E;
    (20) Then northerly along the east line of T36S, R2E, to the 
northeast corner of T36S, R2E;
    (21) Then westerly along the north line of T36S, R2E, to the 
northwest corner of T36S, R2E;

[[Page 215]]

    (22) Then northerly along the east line of T35S, R1E, to the 
northeast corner of T35S, R1E;
    (23) Then westerly along the north line of T35S, R1E, to the 
northwest corner of T35S, R1E;
    (24) Then northerly along the east line of T34S, R1W, to the 
northeast corner of T34S, R1W;
    (25) Then westerly along the north lines of T34S, R1E; T34S, R2W; 
T34S, R3W; T34S, R4W; and T34S, R5W, to the northwest corner of T34S, 
R5W;
    (26) Then northerly along the west line of T33S, R5W, to the 
Josephine County/Douglas County line;
    (27) Then westerly along the Josephine County/Douglas County line to 
U.S. Interstate 5, the point of beginning.

[T.D. ATF-310, 56 FR 2435, Jan. 23, 1991]



Sec.  9.133  Rutherford.

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

[[Page 216]]

34, T.8 N., R.5 W., then following that section line north to the 500-
foot contour line;
    (13) Then following the 500-foot contour line southeasterly to the 
western border of Section 2, T.7 N., R.5 W., then south along that 
section line past Conn Creek to its intersection with the 500-foot 
contour line northwest of the unnamed 832-foot peak;
    (14) Then continuing in a westerly direction and then a generally 
southeasterly direction along the 500-foot contour line through Sections 
3, 2, 11 and 12 to the intersection of that contour line with the 
southern border of Section 12 (on Yountville map);
    (15) Then proceeding in a straight line in a westerly direction to 
the intersection of the Silverado Trail with Skellenger Lane, the point 
of beginning.

[T.D. ATF-342, 58 FR 35876, July 2, 1993]



Sec.  9.134  Oakville.

    (a) Name. The name of the viticultural area described in this 
section is ``Oakville.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Oakville viticultural area are two U.S.G.S. 7.5 minute series 
topographical maps of the 1:24,000 scale:
    (1) ``Yountville Quadrangle, California,'' edition of 1951, 
photorevised 1968.
    (2) ``Rutherford Quadrangle, California,'' edition of 1951, 
photorevised 1968, photoinspected 1973.
    (c) Boundary. The Oakville viticultural area is located in Napa 
County in the State of California. The boundary is as follows:
    (1) Beginning on the Yountville quadrangle map at the point where 
the county road known as the Silverado Trail intersects Skellenger Lane, 
just outside the southwest corner of Section 12, Township 7 North (T.7 
N.), Range 5 West (R.5 W.), the boundary proceeds in a southwesterly 
direction in a straight line approximately 1.7 miles along Skellenger 
Lane, past its intersection with Conn Creek Road, to the point of 
intersection with the main channel of the Napa River (on the Rutherford 
quadrangle map);
    (2) Then south along the center of the river bed approximately .4 
miles to the point where an unnamed stream drains into the Napa River 
from the west;
    (3) Then along the unnamed stream in a generally northwesterly 
direction to its intersection with the west track of the Southern 
Pacific Railroad Track;
    (4) Then southeasterly along said railroad track 1,650 feet to a 
point which is approximately 435 feet north of the centerline of the 
entry road to Robert Mondavi Winery (shown on the map) to the southeast 
corner of Assessor's Parcel Number 27-250-14;
    (5) Thence southwesterly S 55[deg]06[min]28[sec] W for 3,869 feet 
along the common boundary between Assessor's Parcel Numbers 27-250-14 
and 27-280-50/51 to the southwest corner of Assessor's Parcel Number 27-
250-14;
    (6) Thence northwesterly N 40[deg]31[min]42[sec] W for 750 feet 
along the westerly property line of Assessor's Parcel Number 27-250-14;
    (7) Thence southwesterly S 51[deg]00[min] W in a straight line to 
the 500-foot contour line of the Mayacamas Range in the northwestern 
corner of Section 28, T.7 N., R.5 W.;
    (8) Then proceeding along the 500-foot contour line in a generally 
southeasterly direction through Sections 28, 29, 20, 29, 28, 29, 28, 33 
and 34 of T.7 N., R.5 W. and Section 3 of T.6 N., R.5 W. to its 
intersection with the unnamed stream known locally as Hopper Creek near 
the middle of Section 3;
    (9) Then along the unnamed stream (Hopper Creek) southeasterly and, 
at the fork in Section 3, northeasterly along the stream to the point 
where the stream intersects with the unnamed dirt road in the northwest 
corner of Section 2, T.6 N., R.5 W;
    (10) Then proceed in a straight line to the light duty road to the 
immediate northeast in Section 2, then along the light duty road in a 
northeasterly direction to the point at which the road turns 90 degrees 
to the left;
    (11) Then proceed along the light duty road 625 feet, then proceed 
northeasterly (N 40[deg]43[min] E) in a straight line 1,350 feet, along 
the northern property line of Assessor's Parcel Number 27-380-08 (not 
shown on the map), to State Highway 29, then continuing in a straight 
line approximately .1 mile to

[[Page 217]]

the peak of the 320+ foot hill along the western edge of the Yountville 
Hills;
    (12) Then proceed due east to the second 300-foot contour line, then 
follow that contour line around the Yountville Hills to the north to the 
point at which the 300-foot contour line exits the Rutherford quadrangle 
map for the second time;
    (13) Then proceed (on the Yountville quadrangle map) in a straight 
line in a northeasterly direction approximately N 34[deg]30[min] E 
approximately 1,000 feet to the 90 degree bend in the unimproved dirt 
road shown on the map, then along that road, which coincides with a 
fence line (not shown on the map) to the intersection of Conn Creek and 
Rector Creek;
    (14) Then along Rector Creek to the northeast past the Silverado 
Trail to the Rector Reservoir spillway entrance, then proceed due north 
along the spillway of Rector Reservoir, then east and northeast along 
the shoreline of Rector Reservoir to the point where the first unnamed 
stream enters the Reservoir;
    (15) Thence follow the unnamed stream north and northeast to where 
it intersects an unimproved dirt road at the 1006-foot benchmark;
    (16) Then proceed in a straight line approximately .6 mile due west 
to the intersection of an unnamed stream, then follow said stream 
downslope to the 500-foot contour line, and along that contour line 
northwesterly through sections 18 and 13 to the intersection of the 
contour line with the southern border of Section 12 in T.7 N, R.5 W.;
    (17) Then proceed in a straight line in a westerly direction to the 
intersection of Skellenger Lane with the Silverado Trail, the point of 
beginning.

[T.D. ATF-343, 58 FR 35884, July 2, 1993]



Sec.  9.135  Virginia's Eastern Shore.

    (a) Name. The name of the viticultural area described in this 
section is ``Virginia's Eastern Shore.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the ``Virginia's Eastern Shore'' viticultural area are 3 
U.S.G.S. Quadrangle (1:250,000 Series) maps. They are titled:
    (1) Eastville, VA.; N.C.; MD., 1946 (revised 1969).
    (2) Salisbury, MD.; DEL.; N.J.; VA., 1946 (revised 1969).
    (3) Richmond VA.; MD., 1973.
    (c) Boundary. The Virginia's Eastern Shore viticultural area is 
located in Accomack and Northampton counties, Virginia. The boundary is 
as follows:
    (1) The beginning point is the intersection of the Virginia/Maryland 
border and Chincoteague Bay, near Greenbackville on the Salisbury, MD., 
U.S.G.S. map;
    (2) From the beginning point, the boundary follows the coastline in 
a southwesterly direction. Where there are marshes indicated on the 
U.S.G.S. maps, the boundry is the inland side of these marshes;
    (3) When the boundary reaches the southernmost point of the 
peninsula, on the Eastville, VA., U.S.G.S. map, the boundary turns and 
proceeds in a northwesterly direction, again following the coastline 
around Cherrystone Inlet on the Richmond, VA., U.S.G.S. map;
    (4) The boundary continues to follow the coastline and the inland 
side of any marshes indicated on the U.S.G.S. maps in a northeasterly 
direction, until it reaches the Virginia/Maryland border on the 
Eastville, VA., U.S.G.S. map;
    (5) The boundary then follows the Virginia/Maryland border back to 
the beginning point at Chincoteague Bay on the Salisbury, MD., U.S.G.S. 
map.

[T.D. ATF-309, 56 FR 24, Jan. 2, 1991]



Sec.  9.136  Texas Hill Country.

    (a) Name. The name of the viticultural area described in this 
section is ``Texas Hill Country.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the ``Texas Hill Country'' viticultural area are 7 
U.S.G.S. (scale 1:250,000) maps. They are titled:
    (1) Brownwood, Texas, 1954 (revised 1974);
    (2) Sonora, Texas, 1954 (revised 1978);
    (3) Llano, Texas, 1954 (revised 1975);
    (4) Austin, Texas, 1954 (revised 1974);
    (5) Del Rio, Texas, 1958 (revised 1969);
    (6) San Antonio, Texas, 1954 (revised 1980);
    (7) Seguin, Texas, 1953 (revised 1975).

[[Page 218]]

    (c) Boundary. The Texas Hill Country viticultural area is located in 
portions of McCulloch, San Saba, Lampasas, Burnet, Travis, Williamson, 
Llano, Mason, Menard, Kimble, Gillespie, Blanco, Hays, Kendall, Kerr, 
Edwards, Real, Bandera, Bexar, Comal, Guadalupe, Medina, and Uvalde 
counties, in the State of Texas. The boundary is as follows:
    (1) The beginning point is the intersection of Interstate Highway 35 
and State highway 29 to the north of the city of Austin, on the Austin 
Texas, U.S.G.S. map;
    (2) From the beginning point, the boundary follows State highway 29 
in a west-northwesterly direction to the intersection with U.S. Highway 
183;
    (3) The boundary then follows U.S. Highway 183 in a northwesterly 
direction to the top of the Austin map and across the northeast corner 
of the Llano, Texas, U.S.G.S. map, to the intersection with State 
Highway 190 in Lometa, on the Brownwood, Texas, U.S.G.S. map;
    (4) The boundary then follows State Highway 190 in a southwesterly 
direction through San Saba and Brady on the Brownwood map to the 
intersection of U.S. Highway 83 at Menard, on the Llano, Texas, U.S.G.S. 
map;
    (5) The boundary follows U.S. highway 83 in a southerly direction to 
the town of Junction, where it meets U.S. Highway 377 (Llano map);
    (6) The boundary then follows U.S. Highway 377 southwest to the town 
of Rocksprings, on the Sonora, Texas, U.S.G.S. map, where it meets State 
Highway 55;
    (7) The boundary then follows State Highway 55 in a southeasterly 
direction across the southeast portion of the Del Rio, Texas, U.S.G.S. 
map, and continues to the town of Uvalde, on the San Antonio, Texas, 
U.S.G.S. map, where it meets U.S. Highway 83;
    (8) The boundary then follows U.S. Highway 83 south for 
approximately 2 miles, until it meets U.S. Highway 90;
    (9) The boundary then follows U.S. Highway 90 east across the San 
Antonio map to its intersection with Loop 410 in the city of San 
Antonio;
    (10) The boundary then follows Loop 410 to the west of San Antonio, 
until it meets Interstate Highway 35;
    (11) The boundary then follows Interstate Highway 35 in a 
northeasterly direction across the San Antonio map and then across the 
northwest corner of the Seguin, Texas, U.S.G.S. map until it reaches the 
beginning point at the intersection with State highway 29 on the Austin, 
Texas, U.S.G.S. map.

[T.D. ATF-318, 56 FR 60923, Nov. 29, 1991, as amended by T.D. ATF-344, 
58 FR 40354, July 28, 1993]



Sec.  9.137  Grand Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Grand Valley.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Grand Valley viticultural area are six U.S.G.S. (7.5 minute 
series) topographical maps of the 1:24,000 scale:
    (1) ``Palisade Quadrangle, Colorado,'' edition of 1962.
    (2) ``Clifton Quadrangle, Colorado,'' edition of 1962, photorevised 
1973.
    (3) ``Grand Junction Quadrangle, Colorado,'' edition of 1962, 
photorevised 1973.
    (4) ``Colorado National Monument Quadrangle, Colorado,'' edition of 
1962, photorevised 1973.
    (5) ``Fruita Quadrangle, Colorado,'' edition of 1962, photorevised 
1973.
    (6) ``Corcoran Point Quadrangle, Colorado,'' edition of 1962.
    (c) Boundary. The Grand Valley viticultural area is located entirely 
within Mesa County, Colorado, in the western part of the State. The 
boundary is as follows:
    (1) The beginning point is located on the Palisade quadrangle map at 
a point northeast of the city of Palisade where Interstate 70 crosses 
the Colorado River and intersects with U.S. Highways 6 and 24, adjacent 
to and immediately west of the Orchard Mesa Canal Aqueduct;
    (2) From the beginning point, the boundary proceeds due east to the 
adjacent Orchard Mesa Canal Aqueduct and then in a southerly direction 
along the Orchard Mesa Canal Aqueduct to an unnamed creek in the western 
part of section 11, Township 11 South, Range 98 West (T. 11 S., R. 98 
W.);
    (3) Thence in a southeasterly direction along the unnamed creek to 
its intersection with the 5000-foot contour

[[Page 219]]

line in the northeast corner of section 1, T. 1 S., R. 2 E.;
    (4) Thence in a northwesterly and then a southerly direction along 
the 5000-foot contour line to its intersection with Watson Creek in 
section 12, T. 1 S., R. 2 E.;
    (5) Thence in a southeasterly direction along Watson Creek to its 
intersection with the electrical power lines in the southern part of 
section 12, T. 1 S., R. 2 E.;
    (6) Thence in a southwesterly direction along the electrical power 
lines along the northern slope of Horse Mountain to that point where the 
power lines intersect with the Jeep Trail in the central part of section 
15, T. 1 S., R. 2 E.;
    (7) Thence in a northwesterly direction along the Jeep Trail to its 
intersection with Orchard Mesa Canal No. 2 on the western border of 
section 10, T. 1 S., R. 2 E.;
    (8) Thence in a generally southwesterly direction along Orchard Mesa 
Canal No. 2 through the Clifton quadrangle map to the Canal's junction 
with the Gunnison River on the Grand Junction quadrangle map (western 
part of section 31, T. 1 S., R. 1 E.);
    (9) Thence in a generally northwesterly direction along the Gunnison 
River to its junction with the Colorado River in section 22, T. 1 S., R. 
1 W.;
    (10) Thence continuing in a northwesterly direction along the 
Colorado River to the bridge where County Road 340 crosses the river 
(Section 15, T. 1 S., R. 1 W.);
    (11) Thence in a southwesterly direction along County Road 340 
approximately .2 mile to its intersection with a secondary highway, hard 
surface road, known locally as Monument Road;
    (12) Thence in a southwesterly direction along Monument Road to the 
boundary of the Colorado National Monument, located on the Colorado 
National Monument quadrangle map (section 30, T. 1 S., R. 1 W.);
    (13) Thence in a generally northwesterly direction along the 
boundary of the Colorado National Monument to its intersection with 
County Road 340 (known locally as Broadway) on the northern border of 
section 32, T. 1 N., R. 2 W.;
    (14) Thence in a generally northerly direction along County Road 340 
to the city of Fruita where County Road 340 (known locally as Cherry 
Street) intersects K Road on the Fruita quadrangle map;
    (15) Thence due east on K Road to the northeast corner of section 
17, T. 1 N., R. 1 W., on the Corcoran Point quadrangle map, then 
extending in the same direction in a straight line along the northern 
boundary of section 16, T. 1 N., R. 1 W. to the intersection with the 
Government Highline Canal;
    (16) Thence in a southeasterly direction along the Government 
Highline Canal to its intersection with U.S. Interstate 70 on the Grand 
Junction quadrangle map;
    (17) Thence in an easterly direction along U.S. Interstate 70 
through the Clifton quadrangle map to where Interstate 70 crosses the 
Colorado River and intersects with U.S. Highways 6 and 24 on the 
Palisade quadrangle map, the point of beginning.

[T.D. ATF-317, 56 FR 59216, Nov. 25, 1991]



Sec.  9.138  Benmore Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Benmore Valley.''
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Benmore Valley viticultural area are two U.S.G.S. 
maps. They are entitled:
    (1) ``Hopland, CA,'' 7.5 Minute Series, edition of 1960, 
(photoinspected 1975); and
    (2) ``Purdys Gardens, CA,'' 7.5 Minute Series, edition of 1958, 
(photoinspected 1975).
    (c) Boundaries. The Benmore Valley viticultural area is located in 
the southwest corner of Lake County, California. It lies entirely within 
the North Coast viticultural area. The beginning point is an unnamed 
peak of 2788 feet elevation found in the southeast portion of section 
35, T. 14 N., R. 11 W., on the ``Purdys Gardens, CA'' U.S.G.S. map:
    (1) Then southwest in a straight line to the point where an unnamed 
unimproved road crosses the south section line of section 35, T. 14 N., 
R. 11 W., west of Benmore Creek;

[[Page 220]]

    (2) Then following the unnamed unimproved road south to the 
intersection with the boundary between Lake and Mendocino Counties;
    (3) Then following the county boundary between Lake and Mendocino 
Counties east and south to the intersection with the 2800 foot contour 
line;
    (4) Then following the 2800 foot contour line in a northerly and 
then southernly direction to its intersection with the boundary between 
Lake and Mendocino Counties on the southern edge of section 2, T. 13 N., 
R. 11 W;
    (5) Then following the boundary between Lake and Mendocino Counties 
east to the point of intersection of sections 1, 2, 11, and 12, T. 13 
N., R. 11 W;
    (6) Then southeasterly in a straight line to an unnamed peak of 2769 
feet elevation in the center of section 12, T. 13 N., R. 11 W;
    (7) Then south in a straight line to the point where the boundary 
between Lake and Mendocino Counties changes from an east-west direction 
to a north-south direction;
    (8) Then in a straight line in an easterly direction to an unnamed 
peak of 2883 feet elevation in the southwestern portion of section 5, T. 
13 N., R. 10 W;
    (9) Then northeast in a straight line to the easternmost peak of an 
unnamed ridge with four peaks in the center of section 5, T. 13 N., R. 
10 W;
    (10) Then northerly in a straight line to an unnamed peak of 2647 
feet elevation near the north section line of section 5, T. 13 N., R. 10 
W;
    (11) Then westerly in a straight line to the point of intersection 
between section 5, T. 13 N., R 10 W., section 31, T. 14 N., R. 10 W., 
and section 1, T. 13 N., R. 11 W;
    (12) Then northwest in a straight line to an unnamed peak of 2904 
feet elevation in the north portion of section 1, T. 13 N., R. 11 W;
    (13) Then northwest in a straight line to an unnamed peak of 2788 
feet elevation, the point of beginning.

[T.D. ATF-315, 56 FR 52191, Oct. 18, 1991]



Sec.  9.139  Santa Lucia Highlands.

    (a) Name. The name of the viticultural area described in this 
section is ``Santa Lucia Highlands.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the ``Santa Lucia Highlands'' viticultural area are 7 
U.S.G.S. Quadrangle 7.5 minute series topographic maps. They are titled:
    (1) Chualar, Calif., 1947 (photorevised 1984)
    (2) Gonzales, Calif., 1955 (photorevised 1984)
    (3) Rana Creek, Calif., 1956 (photoinspected 1973)
    (4) Palo Escrito Peak, Calif., 1956 (photorevised 1984)
    (5) Soledad, Calif., 1955 (photorevised 1984)
    (6) Sycamore Flat, Calif., 1956 (photorevised 1984)
    (7) Paraiso Springs, Calif., 1956 (photorevised 1984)
    (c) Boundaries. The Santa Lucia Highlands viticultural area is 
located in Monterey County, California. The beginning point is found on 
the ``Chualar, California'' U.S.G.S. map, where Limekiln Creek crosses 
the 360 foot contour interval. This point also coincides with the 
western boundary of the Guadalupe Y Llanitos de los Correos Land Grant 
and the eastern boundary of section 28, T. 16S., R. 4E. The boundary is 
as follows:
    (1) From the beginning point the boundary follows Limekiln Creek for 
approximately 1.25 miles northeast to the 100 foot elevation.
    (2) Then following the 100 foot contour in a southeasterly direction 
for approximately 1 mile, where the boundary intersects the west bank of 
the Salinas River.
    (3) Then following the west bank of the Salinas River in a 
southeasterly direction on the Gonzales, California U.S.G.S. map for 
approximately 2.50 miles to the point on the Palo Escrito Peak, 
California U.S.G.S. map where the river channel crosses the 120 foot 
elevation.
    (4) Then following the 120 foot elevation due south for 
approximately 2,200 feet where it climbs to the 160 foot elevation.
    (5) Then following the 160 foot elevation in a southeasterly 
direction for approximately 6.50 miles, to the point where the 160 foot 
elevation crosses River Road.

[[Page 221]]

    (6) Then following River Road in a southeasterly direction for 
approximately 1 mile to the junction of River, Fort Romie and Foothill 
Roads.
    (7) Then following Foothill Road in a southeasterly direction for 
approximately 4 miles to the junction of Foothill and Paraiso Roads on 
the Soledad, California U.S.G.S. map.
    (8) Then following Paraiso Road in a southerly direction to the 
intersection with Clark Road on the Paraiso Springs, California U.S.G.S. 
map.
    (9) Then east-northeasterly along Clark Road for approximately 1,000 
feet to its intersection with an unnamed light-duty road to the south.
    (10) Then in a straight south-southeasterly line for approximately 
1.9 miles to the line's intersection with the southeast corner of 
section 33, T18S, R6E (this line coincides with the unnamed light duty 
road for about 0.4 miles and then with the eastern boundaries of 
sections 29, 32 and 33, T18S, R6E, which mark this portion of the 
western boundary of the historical Arroyo Seco Land Grant).
    (11) Then straight west along the southern boundaries of sections 
33, 32, and 31, T18S, R6E, to the southwest corner of section 31.
    (12) Then north along the western boundaries of sections 31 and 30, 
to the northwestern corner of section 30 T. 18S., R. 6E.
    (13) Then northwest in a straight diagonal line to the northwest 
corner of section 24, T. 18S., R. 5E on the Sycamore Flat, California 
U.S.G.S. map.
    (14) Then north along the western boundary of section 13, T. 18S., 
R. 5E., to the northwestern corner of section 13, T. 18S., R. 5E.
    (15) Then northwest in a diagonal line across sections 11 and 3, to 
the northwest corner of section 3, T. 18S., R. 5E on the Palo Escrito 
Peak, California U.S.G.S. map.
    (16) Then due west along the southern boundary of section 33, T. 
17S., R. 5E., to the southwestern corner of section 33, T. 17S., R. 5E.
    (17) Then north along the western boundary of section 33 to the 
southeast corner of section 29, T. 17S., R. 5E.
    (18) Then northwest in a diagonal line through sections 29, 19, 13, 
and 11, to the northwest corner of section 11, T. 17S., R. 4E on the 
Rana Creek, California U.S.G.S. map.
    (19) Then north along the western boundary of section 2, T. 17S., R. 
4E., to the northwestern corner of section 2, T. 17S., R. 4E.
    (20) Then west along the southern boundary of section 34, T. 16S., 
R. 4E., to the southwestern corner of section 34, T. 16S., R. 4E.
    (21) Then north along the eastern boundary of sections 33 and 28, T. 
16S., R. 4E., for approximately 1 mile, to the point where the eastern 
boundary of section 28 T. 165., R. 4E., coincides with the western 
boundary of the Guadalupe Y Llanitos de los Correos Land Grant on the 
Chualar, California U.S.G.S. map.
    (22) Then northwest along the grant line for approximately 2,500 
feet to the point of beginning on Limekiln Creek.

[T.D. ATF-321, 57 FR 20764, May 15, 1992, as amended by T.D. TTB-49, 71 
FR 34527, June 15, 2006]



Sec.  9.140  Atlas Peak.

    (a) Name. The name of the viticultural area described in this 
section is ``Atlas Peak.''
    (b) Approved maps. The appropriate maps of determining the 
boundaries of the Atlas Peak viticultural area are two U.S.G.S. maps. 
They are entitled:
    (1) ``Yountville, Calif.,'' 7.5 minute series, edition of 1951, 
(photorevised 1968); and
    (2) ``Capell Valley, Calif.,'' 7.5 minute series, edition of 1951, 
(photorevised 1968).
    (c) Boundaries. The Atlas Peak viticultural area is located in Napa 
County, California. It lies entirely within the Napa Valley viticultural 
area. The beginning point is Haystack (peak) found in section 21, T. 7 
N., R. 4 W. on the ``Yountville'' U.S.G.S. map;
    (1) From the beginning point, the boundary proceeds south in a 
straight line approximately 0.5 miles, to the highest point of an 
unnamed peak of 1443 feet elevation on the boundary of sections 21 and 
28, T. 7 N., R. 4 W.;
    (2) Then southeast in a straight line approximately one mile to an 
unnamed pass with an elevation of 1485 feet, located on Soda Canyon 
Road;

[[Page 222]]

    (3) Then easterly in a straight line approximately 0.5 miles to an 
unnamed peak of 2135 feet elevation;
    (4) Then in a generally southeasterly direction, as a series of five 
straight lines connecting the highest points of unnamed peaks with 
elevations of 1778, 2102, 1942, 1871 and 1840 feet, ending in the center 
of section 2, T. 6 N., R. 4 W.;
    (5) Then southeast in a straight line approximately 1.8 miles to the 
highest point of an unnamed peak of 1268 feet elevation in section 12, 
T. 6 N., R. 4 W. on the Capell Valley U.S.G.S. map;
    (6) Then east-southeast in a straight line approximately 1.1 miles 
to the point where an unnamed tributary stream enters Milliken Creek, 
immediately south of the Milliken Reservoir in section 7, T. 6 N., R. 3 
W.;
    (7) Then following the unnamed stream east-northeast approximately 
0.5 miles to its source;
    (8) Then northeast in a straight line approximately 0.5 miles, 
through the highest point of an unnamed peak of 1846 feet elevation, to 
the 1600 foot contour line in the eastern portion of section 8, T. 6 N., 
R. 3 W.;
    (9) Then following the 1600 foot contour line generally north and 
west for approximately 10 miles, to the point of intersection with the 
boundary line between sections 12 and 13, T. 7 N., R. 4 W. on the 
Yountville U.S.G.S. map;
    (10) Then following the section boundary line west approximately 1.1 
miles to the intersection with an unnamed, unimproved road;
    (11) Then northwest in a straight line approximately 0.7 miles to 
the highest point of an unnamed peak of 2114 feet elevation, located in 
section 10, T. N., R. 4 W.;
    (12) Then northwest in a straight line approximately 0.7 miles to 
the highest point of an unnamed peak of 2023 feet elevation, located in 
section 10, T. N., R. 4 W.;
    (13) Then southwest in a straight line approximately 2.2 miles to 
Haystack (peak), the point of beginning.

[T.D. ATF-320, 57 FR 2681, Jan. 22, 1992]



Sec.  9.141  Escondido Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Escondido Valley.''
    (b) Approved map. The appropriate map for determining the boundaries 
of the ``Escondido Valley'' viticultural area is 1 U.S.G.S. (scale 
1:250,000) map. It is titled Fort Stockton, Texas, 1954 (revised 1973).
    (c) Boundary. The Escondido Valley viticultural area is located in 
Pecos County, Texas. The boundary is as follows:
    (1) The beginning point is the intersection of Interstate Route 10 
(I-10) and an intermittent stream approximately 18 miles east of the 
city of Fort Stockton (standard reference GE3317 on the Fort Stockton, 
Texas, U.S.G.S. map);
    (2) From the beginning point, the boundary follows I-10 in an 
easterly direction approximately 9 miles until a southbound trail 
diverges from I-10 just past the point where it intersects horizontal 
grid line 2 of square GE on the Fort Stockton, Texas, U.S.G.S. map;
    (3) The boundary then follows the trail in a generally southeasterly 
direction about 5 miles until it intersects the 3000 foot contour line;
    (4) The boundary follows the 3000 foot contour line in a generally 
westerly direction approximately 17 miles;
    (5) The boundary continues to follow the 3000 foot contour line as 
it turns sharply northwest, but diverges from the contour line when the 
contour line turns south again;
    (6) From the point where it diverges from the contour line, the 
boundary follows a straight north-northwesterly line as it returns to 
the beginning point at I-10.

[ATF-322, 57 FR 20761, May 15, 1992]



Sec.  9.142  Bennett Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Bennett Valley''.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Bennett Valley viticultural area are four 1:24,000 scale USGS 
topographic maps. They are titled:
    (1) Santa Rosa Quadrangle, CA--Sonoma Co. 1994
    (2) Kenwood Quadrangle, CA 1954, photorevised 1980
    (3) Glen Ellen Quadrangle, CA--Sonoma Co. 1954, photorevised 1980

[[Page 223]]

    (4) Cotati Quadrangle, CA--Sonoma Co. 1954, photorevised 1980
    (c) Boundary. The Bennett Valley viticultural area is entirely 
within Sonoma County, California, and is located northwest of the peak 
of Sonoma Mountain and southeast of the city of Santa Rosa.
    (1) Beginning at the peak of Taylor Mountain (BM 1401), Section 6, 
T6N, R7W, proceed straight northeast to the intersection of the common 
line between Sections 31 and 32 and the 560-foot elevation line, T7N, 
R7W; continue straight northeast at the same angle, crossing the Bennett 
Valley Golf Course and Matanzas Creek, to a point on the 500-foot 
elevation line approximately 400 feet north of the southern boundary of 
Section 20, T7N, R7W (Santa Rosa Quadrangle); then
    (2) Proceed straight southeast to the center peak of the three 
unnamed peaks above the 1,100-foot elevation line, located approximately 
1,600 feet southwest of Hunter Spring, in Section 28, T7N, R7W (Santa 
Rosa Quadrangle); then
    (3) Proceed straight east-southeast to a 1,527-foot peak in the 
southeast corner of Section 28, T7N, R7W (Santa Rosa Quadrangle); then
    (4) Proceed straight southeast to Bennett Mountain's 1,887-foot 
peak, Section 34, T7N, R7W (Kenwood Quadrangle); then
    (5) Proceed straight southeast to the 1,309-foot peak located 
northwest of a water tank and approximately 400 feet north of the 
southern boundary of Section 35, T7N, R7W (Kenwood Quadrangle); then
    (6) Proceed straight south-southeast to the 978-foot peak in the 
northeast quadrant of Section 11, T6N, R7W, and continue straight south-
southeast approximately 600 feet to the ``T'' intersection of two 
unimproved roads located on the common boundary line between Sections 11 
and 12, T6N, R7W (Kenwood Quadrangle); then
    (7) Proceed south along the north-south unimproved road to its 
intersection with Sonoma Mountain Road, Section 13, T6N, R7W, and 
continue straight south to the 1,600-foot elevation line, Section 13, 
T6N, R7W (Glen Ellen Quadrangle); then
    (8) Proceed west along the meandering 1,600-foot elevation line to 
the point where it crosses the common line between Sections 22 and 23, 
T6N, R7W (Glen Ellen Quadrangle); then
    (9) Proceed straight west-northwest to the point where the 900-foot 
elevation line crosses the common line between Sections 15 and 16, T6N, 
R7W, approximately 500 feet north of the southwest corner of Section 15 
(Cotati Quadrangle); then
    (10) Proceed straight northwest to the intersection of Grange Road 
(known as Crane Canyon Road to the west) and the southern boundary of 
Section 9, and continue straight west along that section boundary to the 
southwest corner of Section 9, T6N, R7W (Cotati Quadrangle); then
    (11) Proceed straight north-northwest to the 961-foot peak on the 
east side of Section 8, T6N, R7W (Santa Rosa Quadrangle); and then
    (12) Proceed straight northwest to the peak of Taylor Mountain, 
returning to the point of beginning.

[T.D. TTB-6, 68 FR 61748, Oct. 30, 2003]



Sec.  9.143  Spring Mountain District.

    (a) Name. The name of the viticultural area described in this 
section is ``Spring Mountain District.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Spring Mountain District viticultural area are four U.S.G.S. 7.5 
minute series topographical maps of the 1:24000 scale. They are titled:
    (1) ``Kenwood, Calif.,'' 1954 (photorevised 1980).
    (2) ``Rutherford, Calif.,'' 1951 (photorevised 1968).
    (3) ``St. Helena, Calif.,'' 1960 (photorevised 1980).
    (4) ``Calistoga, Calif.,'' 1958 (photorevised 1980).
    (c) Boundary. The Spring Mountain District viticultural area is 
located in Napa County, California, within the Napa Valley viticultural 
area. The boundary is as follows:
    (1) Beginning on the Calistoga quadrangle map at the Napa-Sonoma 
county line at the boundary line between sections 18 and 19 in T8N/R6W.
    (2) Then east along the boundary line between sections 18 and 19 for 
approximately 3/4 of a mile to its intersection

[[Page 224]]

with Ritchie Creek at the boundary line between sections 17 and 20.
    (3) Then northeast along Ritchie Creek approximately 2 miles, to the 
400 foot contour line in the northeast corner in section 16 of T8N/R6W.
    (4) Then along the 400 foot contour line in a northeast then 
generally southeast direction, through the St. Helena and Rutherford 
quadrangle maps, approximately 9 miles, past the town of St. Helena to 
the point where it intersects Sulphur Creek in Sulphur Canyon, in the 
northwest corner of section 2 in T7N/R6W.
    (5) Then west along Sulfur Creek (onto the Kenwood quadrangle map) 
and south to the point where it first divides into two intermittent 
streams in section 3 in T7N/R6W.
    (6) Then south along the intermittent stream approximately 1.5 miles 
to the point where it intersects the 2,360 foot contour line in section 
10 in T7N/R6W.
    (7) Then southwest in a straight line, approximately .10 mile, to 
the unnamed peak (elevation 2600 feet) at the boundary line between Napa 
and Sonoma Counties.
    (8) Then in a generally northwest direction along the Napa-Sonoma 
county line, through sections 10, 9, 4, 5, 32, 33, 32, 29, 20, and 19, 
to the beginning point on the Calistoga quadrangle map at the boundary 
between sections 18 and 19 in T8N/R6W.

[T.D. ATF-341, 58 FR 28350, May 13, 1993]



Sec.  9.144  Texas High Plains.

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

[T.D. ATF-336, 58 FR 11967, Mar. 2, 1993]



Sec.  9.145  Dunnigan Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Dunnigan Hills.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Dunnigan Hills viticultural area

[[Page 225]]

are three U.S.G.S. 15 minute series topographical maps of the 1:62500 
scale. They are titled:
    (1) ``Guinda, Calif.,'' 1959.
    (2) ``Dunnigan, Calif.,'' 1953.
    (3) ``Woodland, Calif.,'' 1953.
    (c) Boundary. The Dunnigan Hills viticultural area is located in 
Yolo County, California. The boundary is as follows:
    (1) The beginning point is on the Dunnigan, Calif., U.S.G.S. map at 
the intersection of Buckeye Creek and U.S. Route 99W just south of the 
Colusa-Yolo county line;
    (2) From the beginning point, the boundary follows Route 99W in a 
southeasterly direction until an unnamed westbound light-duty road 
coincident with a grant boundary (referred to by the petitioner as 
County Road 17) diverges from Route 99W just north of the town of Yolo, 
California, on the Woodland, Calif., U.S.G.S. map;
    (3) The boundary then follows the County Road 17 for approximately 2 
miles to an unnamed southbound light duty road (referred to by the 
petitioner as County Road 95A);
    (4) The boundary then follows County Road 95A south for 
approximately 1/2 mile to an unnamed westbound light duty road (referred 
to by the petitioner as County Road 17A);
    (5) The boundary then proceeds west along County Road 17A for 
approximately 3/8 mile to an unnamed southbound light duty road 
(referred to by the petitioner as County Road 95);
    (6) The boundary then proceeds south along County Road 95 for 
approximately 1 mile to an unnamed light duty road which goes in a 
southwesterly direction (referred to by the petitioner as County Road 
19);
    (7) The boundary then proceeds southwest along County Road 19 for 
approximately 1/4 mile to an unnamed light duty road which travels 
south-southwest (referred to by the petitioner as County Road 94B);
    (8) The boundary then proceeds southwest along County Road 94B 
approximately 1\1/4\ mile until it intersects Cache Creek;
    (9) The boundary then follows Cache Creek in a westerly direction 
5.5 miles until it intersects an unnamed north-south light duty road 
approximately 1 mile north of the city of Madison, California (referred 
to by the petitioner as County Road 89);
    (10) The boundary then follows County Road 89 two miles in a 
northerly direction back on to the Dunnigan, Calif., U.S.G.S. map where 
it intersects an unnamed light duty road (referred to by the petitioner 
as County Road 16);
    (11) The boundary follows County Road 16 west for approximately 2 
miles onto the Guinda, Calif., U.S.G.S. map, where it turns north onto 
an unnamed light-duty road between sections 31 and 32 of T10N/R1W 
(referred to by the petitioner as County Road 87);
    (12) The boundary follows County Road 87 north for 2 miles to an 
unnamed east-west light duty road (referred to by the petitioner as 
County Road 14);
    (13) The boundary follows County Road 14 west for 3 miles, and then 
leaves the unnamed road and turns north on the dividing line between 
sections 22 and 23 of T11N/R2W.
    (14) The boundary continues due north until it intersects Little 
Buckeye Creek just south of the Yolo-Colusa county line;
    (15) The boundary then follows Little Buckeye Creek in an easterly 
direction until it joins Buckeye Creek;
    (16) The boundary then follows Buckeye Creek in an easterly 
direction back to the point of beginning on the Dunnigan, Calif., 
U.S.G.S. map.

[T.D. ATF-340, 58 FR 28352, May 13, 1993]



Sec.  9.146  Lake Wisconsin.

    (a) Name. The name of the viticultural area described in this 
section is ``Lake Wisconsin.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the ``Lake Wisconsin'' viticultural area are two U.S.G.S. 7.5 minute 
series topographical maps of the 1:24,000 scale. They are titled:
    (1) Sauk City, Wis., 1975; and
    (2) Lodi, Wis., 1975.
    (c) Boundary. The Lake Wisconsin viticultural area is located in 
Columbia and Dane Counties, Wisconsin. The boundary is as follows:
    (1) The point of beginning is on the ``Lodi, Wisc.'' U.S.G.S. map in 
the northeast quarter-section of section 17,

[[Page 226]]

Lodi Township, Columbia County, where Spring Creek enters Lake 
Wisconsin;
    (2) From the point of beginning, follow the southern shoreline of 
Lake Wisconsin northwest to where Lake Wisconsin narrows and becomes the 
Wisconsin River on the map, in the vicinity of the town of Merrimac, 
Sauk County;
    (3) Then continue along the southern shoreline of the Wisconsin 
River, west and south past Goose Egg Hill, Columbia County, on the 
``Sauk City, Wisc.'' quadrangle map, and then west to a southwest bend 
in the shoreline opposite Wiegands Bay, Sauk County, where the Wisconsin 
River becomes Lake Wisconsin again on the map;
    (4) Then southwest and south along the eastern shoreline of Lake 
Wisconsin, to the powerplant that defines where Lake Wisconsin ends and 
the Wisconsin River begins again;
    (5) Then continuing south along the Wisconsin River shoreline to 
where it intersects with U.S. Highway 12 opposite Sauk City, Sauk 
County;
    (6) Then in a southeasterly direction on U.S. Highway 12 to the 
intersection at State Highway 188, just over one-half a mile;
    (7) Then in a northeasterly direction about 1,000 feet on State 
Highway 188, to the intersection of Mack Road;
    (8) Then east on Mack Road to the intersection of State Highway Y, 
about 3 miles;
    (9) Then follow State Highway Y in a generally northeasterly 
direction onto the ``Lodi, Wisc.'' quadrangle map and continue in a 
northeasterly direction to the intersection with State Highway 60;
    (10) Then in a northeasterly direction on State Highway 60 to the 
intersection with State Highway 113 in the town of Lodi;
    (11) Then in a northwesterly direction on State Highway 113 to where 
it crosses Spring Creek the second time just before Chrislaw Road;
    (12) Then follow Spring Creek in a northwesterly direction to where 
it enters Lake Wisconsin, the point of beginning.

[T.D. ATF-352, 59 FR 539, Jan. 5, 1994]



Sec.  9.147  Hames Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Hames Valley.''
    (b) Approved maps. The appropriate map for determining the boundary 
of the Hames Valley viticultural area is one U.S.G.S. 15 minute series 
topographical map, titled Bradley Quadrangle, California, edition of 
1961, with a scale of 1:62,500.
    (c) Boundary. The Hames Valley viticultural area is located in 
southern Monterey County in the State of California. The boundary is as 
follows:
    (1) Beginning at the southeast corner of section 26, T. 23 S., R. 10 
E., which coincides with the point where the 640 foot contour line 
crosses the Swain Valley drainage, the boundary proceeds in a straight 
line across section 26 to the northwest corner of section 26, T. 23 S., 
R. 10 E.;
    (2) Then west northwest in a straight line across sections 22, 21, 
20, and 19, T. 23 S., R. 10 E., to the northwest corner of section 24, 
T. 23 S., R. 9 E.;
    (3) Then southeast in a straight line across sections 24, 25, 30, 
31, and 32, to the southeast corner of section 5, T. 24 S., R. 10 E.;
    (4) Then east southeast in a straight line across section 9 to the 
southeast corner of section 10, T. 24 S., R. 10 E.;
    (5) Then east southeast in a straight line for approximately 2.25 
miles to Hill 704, located in section 18, T. 24 S., R. 11 E.;
    (6) Then north northwest in a straight line for approximately 1.35 
miles to Hill 801, located near the northwest corner of section 7, T. 24 
S., R. 11 E., and then continue in a straight line to the northwest 
corner of section 6, T. 24 S., R. 11 E.;
    (7) Then in a generally northwesterly direction along the Salinas 
River for approximately 1 mile to where the Swain Valley drainage enters 
the Salinas River about .11 mile south of the northern boundary line of 
section 36, T. 23 S., R. 10 E.;
    (8) Then in a westerly direction for approximately .75 mile along 
the Swain Valley drainage to the southeast corner of section 26, T. 23 
S., R. 10 E., the point of beginning.

[T.D. ATF-356, 59 FR 14100, Mar. 25, 1994]

[[Page 227]]



Sec.  9.148  Seiad Valley.

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

[T.D. ATF-357, 59 FR 26114, May 19, 1994]



Sec.  9.149  St. Helena.

    (a) Name. The name of the viticultural area described in this 
section is ``St. Helena.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the St. Helena viticultural area are three U.S.G.S. 7.5 minute series 
topographical maps of the 1:24,000 scale. They are titled:
    (1) St. Helena Quadrangle, California, edition of 1960, revised 
1993;
    (2) Calistoga Quadrangle, California, edition of 1958, photorevised 
1980;
    (3) Rutherford Quadrangle, California, edition of 1951, photorevised 
1968, photoinspected 1973.
    (c) Boundary. The St. Helena viticultural area is located in Napa 
County in the State of California. The boundary is as follows:
    (1) Beginning on the Rutherford Quadrangle map at the point of 
intersection between State Highway 29 and a county road shown on the map 
as Zinfandel Avenue, known locally as Zinfandel Lane, the boundary 
proceeds in a southwest direction along Zinfandel Avenue to its 
intersection with the north fork of Bale Slough (blueline stream) near 
the 201 foot elevation marker;
    (2) Thence in a northwesterly direction approximately 2,750 feet 
along the north fork of Bale Slough to a point of intersection with a 
southwesterly straight line projection of a light duty road locally 
known as Inglewood Avenue;
    (3) Thence in a straight line in a southwesterly direction along 
this projected extension of Inglewood Avenue

[[Page 228]]

approximately 2,300 feet to its intersection with the 500 foot contour 
line in Section 7, Township 7 North (T7N), Range 5 West (R5W);
    (4) Thence along the 500 foot contour line in a generally 
northwesterly direction through Sections 7, 1 and 2, to its intersection 
of the western border of Section 2, T7N, R6W;
    (5) Thence northerly along the western border of Section 2 
approximately 500 feet to its intersection with Sulphur Creek in Sulphur 
Canyon in the northwest corner of Section 2, T7N, R6W;
    (6) Thence along Sulphur Creek in an easterly direction 
approximately 350 feet to its intersection with the 400 foot contour 
line;
    (7) Thence along the 400 foot contour line in a generally easterly, 
then northwesterly, direction past the city of St. Helena (on the St. 
Helena Quadrangle map) to a point of intersection with a southwesterly 
straight line projection of the county road shown as Bale Lane in the 
Carne Humana Rancho on the Calistoga Quadrangle map;
    (8) Thence along the projected straight line extension of Bale Lane 
in a northeasterly direction approximately 700 feet to the intersection 
of State Highway 29 and Bale Lane and continuing northeasterly along 
Bale Lane to its intersection with the Silverado Trail;
    (9) Thence in a northwesterly direction along the Silverado Trail 
approximately 1,500 feet to an unmarked driveway on the north side of 
the Silverado Trail near the 275 foot elevation marker;
    (10) Thence approximately 300 feet northeasterly along the driveway 
to and beyond its point of intersection with another driveway and 
continuing in a straight line projection to the 400 foot contour line;
    (11) Thence in a northerly and then generally southeasterly 
direction along the 400 foot contour line through Sections 10 
(projected), 11, 12, 13, 24 and 25 in T8N, R6W, Section 30 in T8N, R5W, 
Sections 25 and 24 in T8N, R6W, Sections 19 and 30 in T8N, R5W to a 
point of intersection with the city limits of St. Helena on the eastern 
boundary of Section 30 in T8N, R5W, on the St. Helena Quadrangle map;
    (12) Thence north, east and south along the city limits of St. 
Helena to the third point of intersection with the county road known as 
Howell Mountain Road in Section 29, T8N, R5W;
    (13) Thence in a northeasterly direction approximately 900 feet 
along Howell Mountain Road to its intersection with Conn Valley Road;
    (14) Thence northeasterly and then southeasterly along Conn Valley 
Road to its intersection with the eastern boundary of Section 28, T8N, 
R5W;
    (15) Thence south approximately 5,200 feet along the eastern 
boundary of Sections 28 and 33 to a point of intersection with the 380 
foot contour line near the southeast corner of Section 33, T8N, R5W, on 
the Rutherford Quadrangle map;
    (16) Thence in a northwesterly direction along the 380 foot contour 
line in Section 33 to a point of intersection with a northeasterly 
straight line projection of Zinfandel Avenue;
    (17) Thence in a southwesterly direction approximately 950 feet 
along this straight line projection of Zinfandel Avenue to its 
intersection with the Silverado Trail;
    (18) Thence continuing along Zinfandel Avenue in a southwesterly 
direction to its intersection with State Highway 29, the point of 
beginning.

[T.D. ATF-366, 60 FR 47061, Sept. 11, 1995]



Sec.  9.150  Cucamonga Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Cucamonga Valley.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Cucamonga Valley viticultural area are the following ten U.S.G.S. 
topographical maps (7.5 minute series 1:24000 scale):
    (1) Mt. Baldy, Calif., 1967, photorevised 1988;
    (2) Cucamonga Peak, Calif., 1966, photorevised 1988;
    (3) Devore, Calif., 1966, photorevised 1988;
    (4) San Bernardino North, Calif., 1967, photorevised 1988;
    (5) Ontario, Calif., 1967, photorevised 1981;
    (6) Guasti, Calif., 1966, photorevised 1981;

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    (7) Fontana, Calif., 1967, photorevised 1980;
    (8) San Bernardino South, Calif., 1967, photorevised 1980;
    (9) Prado Dam, Calif., 1967, photorevised 1981;
    (10) Corona North, Calif., 1967, photorevised 1981.
    (c) Boundary. The Cucamonga Valley viticultural area is located in 
San Bernardino and Riverside Counties, California. The boundary is as 
follows:
    (1) The beginning point is the intersection of Euclid Avenue and 
24th Street on the Mt. Baldy, Calif. U.S.G.S. map;
    (2) From the beginning point, the boundary follows 24th Street east 
for approximately 0.3 mile, until it reaches the intersection of 24th 
Street with two unnamed light-duty streets to the north;
    (3) The boundary then diverges from 24th Street and goes straight 
north for approximately 0.3 mile, until it reaches the 2,000 foot 
contour line;
    (4) The boundary then follows the 2,000 foot contour line in a 
generally easterly direction across the Cucamonga Peak, Calif., U.S.G.S. 
map and onto the Devore, Calif., U.S.G.S. map until it reaches Lytle 
Creek Wash;
    (5) The boundary follows the intermittent stream in Lytle Creek Wash 
in a southeasterly direction to the end of the intermittent stream on 
the Devore, Calif., U.S.G.S. map;
    (6) The boundary then continues through Lytle Creek Wash, proceeding 
southeast in a straight line from the end of the intermittent stream, 
across the southwest corner of the San Bernardino North, Calif., 
U.S.G.S. map and onto the San Bernardino, South, Calif., U.S.G.S. map, 
to the northernmost point of the flood control basin at the end of the 
Lytle Creek Wash, a distance of approximately 4.3 miles;
    (7) The boundary then proceeds in a straight line south-southeast 
across the flood control basin to the point where Lytle Creek Channel 
exits the basin;
    (8) The boundary continues along Lytle Creek Channel until it 
empties into Warm Creek;
    (9) The boundary then follows Warm Creek until it meets the Santa 
Ana River;
    (10) The boundary then follows the western edge of the Santa Ana 
River in a generally southwesterly direction until it meets the San 
Bernardino--Riverside County line;
    (11) The boundary follows the county line west, crossing onto the 
Guasti, Calif., U.S.G.S. map, until it reaches the unnamed channel 
between Etiwanda and Mulberry Avenues (identified by the petitioner as 
Etiwanda Creek Channel);
    (12) The boundary then follows Etiwanda Creek Channel in a southerly 
direction until it parallels Bain Street;
    (13) The boundary then diverges from Etiwanda Creek Channel and 
follows Bain Street south until it ends at Limonite Avenue in the 
northeast corner of the Corona North, Calif., U.S.G.S. map;
    (14) The boundary then continues south in a straight line until it 
reaches the northern shore of the Santa Ana River;
    (15) The boundary then follows the north shore of the Santa Ana 
River until it intersects the 560 foot contour line in Section 1 T3S/
R7W;
    (16) The boundary then follows the 560[foot] contour line to the 
north of the Santa Ana River in a generally westerly direction until it 
reaches Euclid Avenue on the Prado Dam, Calif., U.S.G.S. map;
    (17) The boundary then follows Euclid Avenue north to the point of 
beginning.

[T.D. ATF-362, 60 FR 16578, Mar. 31, 1995]



Sec.  9.151  Puget Sound.

    (a) Name. The name of the viticultural area described in this 
section is ``Puget Sound.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Puget Sound viticultural area are four 1:250,000 scale U.S.G.S. 
topographical maps, one 1:25,000 scale topographic map, and three 
1:24,000 scale topographic maps. They are titled:
    (1) Hoquiam, Washington, 1958 revised 1974 (1:250,000)
    (2) Seattle, Washington, 1958 revised 1974 (1:250,000)
    (3) Wenatchee, Washington, 1957 revised 1971 (1:250,000)
    (4) Victoria, B.C., Can., Wash., U.S., 1957 revised (U.S. area) 1974 
(1:250,000)

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    (5) Auburn, Washington, 1983 (1:25,000)
    (6) Buckley, Washington, 1993 (1:24,000)
    (7) Cumberland, Washington, 1993 (1:24,000)
    (8) Enumclaw, Washington, 1993 (1:24,000)
    (c) Boundary. The Puget Sound viticultural area is located in the 
State of Washington. The boundaries of the Puget Sound viticultural 
area, using landmarks and points of reference found on appropriate 
U.S.G.S. maps, follow.
    (1) Beginning where the Whatcom county line comes closest to an 
unnamed secondary road (referred to in the petition as Silver Lake Road) 
on the U.S.G.S. map ``Victoria,'' T41N/R6E;
    (2) Then south along Silver Lake Road approximately 5.5 miles to its 
intersection with State Highway 542, T39N/R5E;
    (3) Then west and then southwest along State Highway 542 
approximately 11 miles to its intersection with State Highway 9, T38N/
R5E;
    (4) Then south along State Highway 9 approximately 44 miles to its 
intersection with an unnamed secondary road (referred to in the petition 
as Burn Road) at the town of Arlington, T31N/R5E;
    (5) Then south, southeast along Burn Road approximately 11 miles to 
its intersection with State Highway 92, T30N/R6E;
    (6) Then south along State Highway 92 approximately 3 miles to its 
intersection with an unnamed light duty road (referred to in the 
petition as Machias Hartford Road), T29N/R6E;
    (7) Then south along Machias Hartford Road approximately 4 miles to 
its intersection with an unnamed secondary road (referred to in the 
petition as Lake Roesiger Road), on the U.S.G.S. map ``Wenatchee,'' 
T29N/R7E;
    (8) Then east along Lake Roesiger Road approximately 3.5 miles to 
its intersection with an unnamed secondary road (referred to in the 
petition as Woods Creek Road), T29N/R7E;
    (9) Then south along Woods Creek Road approximately 10.5 miles to 
its intersection with U.S. Highway 2 in the town of Monroe, T27N/R7E;
    (10) Then west along U.S. Highway 2 approximately \1/2\ mile to its 
intersection with State Highway 203, T27N/R6E;
    (11) Then south along State Highway 203 approximately 24 miles to 
its intersection with an unnamed secondary road (referred to in the 
petition as Preston-Fall City Road), at the town of Fall City, T24N/R7E;
    (12) Then southwest along Preston-Fall City Road approximately 4 
miles to its intersection with Interstate Highway 90 at the town of 
Preston, T24N/R7E;
    (13) Then east along Interstate Highway 90 approximately 3 miles to 
its intersection with State Highway 18, T23N/R7E;
    (14) Then southwest along State Highway 18 approximately 7 miles to 
its intersection with an unnamed secondary road (referred to in the 
petition as 276th Avenue SE), T23N/R6E;
    (15) Then south along 276th Avenue SE approximately 5 miles to its 
intersection with State Highway 516 at the town of Georgetown, T22N/R6E;
    (16) Then west along State Highway 516 approximately 2 miles to its 
intersection with State Highway 169 at the town of Summit on the 
U.S.G.S. map, ``Seattle,'' (shown in greater detail on the U.S.G.S. map, 
``Auburn''), T22N/R6E;
    (17) Then south along State Highway 169 approximately 11.5 miles to 
its intersection with State Highway 410 at the town of Enumclaw on the 
U.S.G.S. map, ``Wenatchee,'' (shown in greater detail on the U.S.G.S. 
map, ``Enumclaw''), T20N/R6E;
    (18) Then southwest approximately 5 miles along State Highway 410 
until its intersection with State Highway 165 on the U.S.G.S. map, 
``Seattle,'' (shown in greater detail on the U.S.G.S. map, ``Buckley''), 
T19N/R6E;
    (19) Then southwest on State Highway 165 until its intersection with 
State Highway 162 at the town of Cascade Junction on the U.S.G.S. map, 
``Seattle'' (shown in greater detail on the U.S.G.S. Map, ``Buckley''), 
T19N/R6E;
    (20) Then southwest along State Highway 162 approximately 8 miles to 
its intersection with an unnamed secondary road (referred to in the 
petition as Orville Road E.), T19N/R5E;

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    (21) Then south along Orville Road E., approximately 8 miles to its 
intersection with the CMSTP&P railroad at the town of Kapowsin, on the 
U.S.G.S. map, ``Hoquiam,'' T17N/R5E;
    (22) Then south along the CMSTP&P railroad approximately 17 miles to 
where it crosses the Pierce County line at the town of Elbe, T15N/R5E;
    (23) Then west along the Pierce County line approximately 1 mile to 
the eastern tip of Thurston County, T15N/R5E;
    (24) Then west along the Thurston County line approximately 38 miles 
to where it crosses Interstate Highway 5, T15N/R2W;
    (25) Then north along Interstate Highway 5 approximately 18 miles to 
its intersection with U.S. Highway 101 at the town of Tumwater on the 
U.S.G.S. map ``Seattle,'' T18N/R2W;
    (26) Then northwest along U.S. Highway 101 approximately 18 miles to 
its intersection with State Highway 3 at the town of Shelton, T20N/R3W;
    (27) Then northeast along State Highway 3 approximately 24 miles to 
where it crosses the Kitsap County line, T23N/R1W;
    (28) Then north along the Kitsap County line approximately 3 miles 
to the point where it turns west, T23N/R1W;
    (29) Then west along the Kitsap County line approximately 11 miles 
to the point where it turns north, T23N/R3W;
    (30) Then continuing west across Hood Canal approximately 1 mile to 
join with U.S. Highway 101 just south of the mouth of an unnamed creek 
(referred to in the petition as Jorsted Creek), T23N/R3W;
    (31) Then north along U.S. Highway 101 approximately 40 miles to the 
point where it turns west at the town of Gardiner on the U.S.G.S. map 
``Victoria,'' T30N/R2W;
    (32) Then west along U.S. Highway 101 approximately 32 miles to 
where it crosses the Elwha River, T30N/R7W;
    (33) Then north along the Elwha River approximately 6 miles to its 
mouth, T31N/R7W;
    (34) Then continuing north across the Strait of Juan de Fuca 
approximately 5 miles to the Clallam County line, T32N/R7W;
    (35) Then northeast along the Clallam County line approximately 14 
miles to the southwestern tip of San Juan County, T32N/R4W;
    (36) Then northeast along the San Juan County line approximately 51 
miles to the northern tip of San Juan County, T38N/R3W;
    (37) Then northwest along the Whatcom County line approximately 19 
miles to the western tip of Whatcom County, T41N/R5W;
    (38) Then east along the Whatcom County line approximately 58 miles 
to the beginning.

[T.D. ATF-368, 60 FR 51899, Oct. 4, 1995]



Sec.  9.152  Malibu-Newton Canyon.

    (a) Name. The name of the viticultural area described in this 
petition is ``Malibu-Newton Canyon.''
    (b) Approved maps. The appropriate map for determining the boundary 
of the Malibu-Newton Canyon viticultural area is the U.S.G.S. map, 
``Point Dume Quadrangle, California'' (7.5 Minute Series 1:24,000 
Topographic map, photorevised 1981).
    (c) Boundary. The Malibu-Newton Canyon viticultural area is located 
in Los Angeles County, California. The boundary is as follows:
    (1) Beginning at the intersection of the Newton Canyon creek (lowest 
elevation) and an unnamed medium duty road referred to by the petitioner 
as Kanan Dume Road at the boundary of section 13 and 18 on the U.S.G.S. 
map ``Point Dume Quadrangle.''
    (2) Then south along Kanan Dume Road to the point where an unnamed, 
unimproved dirt road referred to by the petitioner as Ramerez Mountain 
Way crosses over Kanan Dume Road at the tunnel in the northwest corner 
of section 19.
    (3) Then east along Ramerez Mountain Way, following the southern 
ridgeline of Newton Canyon, to Latigo Canyon Road in the southwest 
corner of section 17.
    (4) Then south along Latigo Canyon Road to an unnamed, unimproved 
dirt road referred to by the petitioner as Newton Mountain Way at the 
southern boundary of section 17.
    (5) Then northeast along Newton Mountain Way, following the 
southeastern ridgeline of Newton Canyon, to

[[Page 232]]

an unnamed, unimproved dirt road referred to by the petitioner as Castro 
Mountain Way in section 16.
    (6) Then west along Castro Mountain Way, past Castro Peak, following 
the northern ridgeline of Newton Canyon to Latigo Canyon Road in section 
18.
    (7) Then southwest along the natural ridgeline of Newton Canyon to 
the intersection of Kanan Dume Road and the 1,600 foot contour line in 
the southeastern portion of section 13.
    (8) Then southeasterly along Kanan Dume Road to the beginning point.

[T.D. ATF-375, 61 FR 29952, June 13, 1996]



Sec.  9.153  Redwood Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Redwood Valley.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Redwood Valley viticultural area are four Quadrangle 7.5 minute 
series 1:24,000 scale U.S.G.S. topographical maps. They are titled:
    (1) Redwood Valley, Calif., 1960, photorevised 1975;
    (2) Ukiah, Calif., 1958, photorevised 1975;
    (3) Laughlin Range, Calif., 1991;
    (4) Orrs Springs, California, provisional edition, 1991.
    (c) Boundary. The Redwood Valley viticultural area is located in the 
east central interior portion of Mendocino County, California. The 
boundaries of the Redwood Valley viticultural area, using landmarks and 
points of reference found on appropriate U.S.G.S. maps, are:
    (1) The beginning point is the intersection of State Highway 20 with 
the eastern boundary of Section 13, T16N/R12W located in the extreme 
northeast portion of the U.S.G.S. map, ``Ukiah, Calif.'';
    (2) Then north along the east boundary line of Sections 12 and 1 to 
the northeast corner of Section 1, T16N/R12W on the U.S.G.S. map, 
``Redwood Valley, Calif.'';
    (3) Then west along the northern boundary line of Section 1 to the 
northwest corner of Section 1, T16N/R12W;
    (4) Then north along the east boundary line of sections 35, 26, 23, 
14, 11, and 2 to the northeast corner of Section 2, T17N/R12W;
    (5) Then west along the northern boundary of Sections 2, 3, 4, 5, 
and 6 to the northwest corner of Section 6, T17N/R12W;
    (6) Then 10 degrees southwest cutting diagonally across Sections 1, 
12, 13 ,24, 25, and 36 to a point at the northwest corner of Section 1, 
T16N/R13W on the U.S.G.S. map, ``Laughlin, Range, Calif.'';
    (7) Then south along the western boundary line of Sections 1 and 12 
to the southwest corner of Section 12, T16N/R13W;
    (8) Then 13 degrees southeast across Sections 13, 18, and 17 to the 
intersection of State Highway 20 and U.S. Highway 101, T16N/R12W on the 
U.S.G.S. map, Ukiah, Calif.''; and
    (9) Then easterly along a line following State Highway 20 back to 
the beginning point at the eastern boundary of Section 13, T16N/R12W 
located in the extreme northeast portion of the U.S.G.S. map ``Ukiah, 
Calif.''

[T.D. ATF-386, 61 FR 67466, Dec. 23, 1996]



Sec.  9.154  Chiles Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Chiles Valley.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Chiles Valley viticultural area are four 1:24,000 Scale U.S.G.S. 
topography maps. They are titled:
    (1) St. Helena, CA 1960 photorevised 1980;
    (2) Rutherford, CA 1951 photorevised 1968;
    (3) Chiles Valley, CA 1958 photorevised 1980;
    (4) Yountville, CA 1951 photorevised 1968.
    (c) Boundary. The Chiles Valley viticultural area is located in the 
State of California, entirely within the Napa Valley viticultural area. 
The boundaries of the Chiles Valley viticultural area, using landmarks 
and points of reference found on appropriate U.S.G.S. maps follow. The 
local names of roads are identified by name.
    (1) Beginning on the St. Helena, CA quadrangle map at the 
northernmost corner of Rancho Catacula in Section 34, Township 9 North 
(T9N), Range 5

[[Page 233]]

West (R5W), Mount Diablo Base and Meridian (MDBM);
    (2) Then in southwesterly direction along the Rancho Catacula 
boundary line to its intersection with the Rancho La Jota boundary line;
    (3) Then in a south-southeasterly direction approximately 3,800 feet 
along the Rancho Catacula/Rancho La Jota boundary line to the point 
where the Rancho Catacula boundary separates from the common boundary 
with Rancho La Jota;
    (4) Then in a southeasterly direction continuing along the Rancho 
Catacula boundary approximately 23,600 feet to a point of intersection, 
in the NE \1/4\ Sec. 19, T8N, R4W, on the Chiles Valley quadrangle map, 
with a county road known locally as Chiles and Pope Valley Road;
    (5) Then in a southwesterly direction along Chiles and Pope Valley 
Road to a point where it first crosses an unnamed blueline stream in the 
SE \1/4\ Section 19, T8N, R4W;
    (6) Then following the unnamed stream in generally southeast 
direction to its intersection with the 1200 foot contour;
    (7) Then following the 1200 foot contour in a northeasterly 
direction to a point of intersection with the Rancho Catacula boundary 
in section 20, T8N, R4W;
    (8) Then in a southeasterly direction along the Rancho Catcula 
boundary approximately 17,500 feet to the southwest corner of Rancho 
Catacula in section 34, T8N, R4W on the Yountville, CA, quadrangle map;
    (9) Then in a northeasterly direction along the Rancho Catacula 
boundary approximately 650 feet to its intersection with the 1040 foot 
contour;
    (10) Then along the 1040 foot contour in a generally east and 
northeast direction to its intersection with the Rancho Catacula 
boundary;
    (11) Then in a northeasterly direction along the Rancho Catacula 
boundary approximately 1100 feet to its intersection with the 1040 foot 
contour;
    (12) Then along the 1040 foot contour in an easterly direction and 
then in a northwesterly direction to its intersection of the Rancho 
Catacula boundary;
    (13) Then in a southwesterly direction along the Rancho Catacula 
boundary approximately 300 feet to a point of intersection with a line 
of high voltage power lines;
    (14) Then in a westerly direction along the high voltage line 
approximately 650 feet to its intersection with the 1000 foot contour;
    (15) Then continuing along the 1000 foot contour in a generally 
northwesterly direction to the point of intersection with the first 
unnamed blueline stream;
    (16) Then along the unnamed stream in a northerly direction to its 
point of intersection with the 1200 foot contour;
    (17) Then along the 1200 foot contour in a northwesterly direction 
to its points of intersection with the Rancho Catacula boundary in 
Section 35, T9N, R5W on the St. Helena, CA, quadrangle map;
    (18) Then along the Rancho Catacula boundary in a northwesterly 
direction approximately 5,350 feet to a northernmost corner of Rancho 
Catacula, the beginning point on the St. Helena quadrangle map a the 
northernmost corner of Rancho Catacula in Section 34, T9N, R5W, MDBM.

[T.D. ATF-408, 64 FR 7787, Feb. 17, 1999]



Sec.  9.155  Texas Davis Mountains.

    (a) Name. The name of the viticultural area described in this 
section is ``Texas Davis Mountains.''
    (b) Approved map. The appropriate maps for determining the boundary 
of the Texas Davis Mountains viticultural area are two U.S.G.S. metric 
topographical maps of the 1:100 000 scale, titled:
    (1) ``Fort Davis, Texas,'' 1985.
    (2) ``Mount Livermore, Texas--Chihuahua,'' 1985.
    (c) Boundary. The Texas Davis Mountains viticultural area is located 
in Jeff Davis County, Texas. The boundary is as follows:
    (1) The beginning point is the intersection of Texas Highway 17 and 
Farm Road 1832 on the Fort Davis, Texas, U.S.G.S. map;
    (2) From the beginning point, the boundary follows Highway 17 in a 
southeasterly and then southwesterly direction until it reaches the 
intersection of Limpia Creek with the unnamed stream which flows through 
Grapevine

[[Page 234]]

Canyon on the Fort Davis, Texas, U.S.G.S. map;
    (3) The boundary then proceeds in a straight line in a southwesterly 
direction until it meets Highway 118 at a gravel pit 1\3/4\ miles 
southeast of the intersection of Highway 118 and Highway 17;
    (4) The boundary then proceeds in a straight line east by southeast 
until it meets Highway 166 at its junction with Highway 17;
    (5) The boundary then follows Highway 166 in a southwesterly 
direction onto the Mt. Livermore, Texas-Chihuahua, U.S.G.S. map;
    (6) The boundary then continues to follow Highway 166 in a westerly 
direction;
    (7) The boundary then continues to follow Highway 166 as it turns in 
a northerly and then northeasterly direction to the point where it meets 
Highway 118;
    (8) The boundary then follows Highway 118 in a northerly direction 
until it reaches a point where it intersects with the 1600 meter contour 
line, just north of Robbers Roost Canyon;
    (9) The boundary then proceeds in a straight line due east for about 
two miles until it reaches the 1600 meter contour line to the west of 
Friend Mountain;
    (10) The boundary then follows the 1600 meter contour line in a 
northeasterly direction until it reaches the northernmost point of 
Friend Mountain;
    (11) The boundary then diverges from the contour line and proceeds 
in a straight line east-southeast until it reaches the beginning point 
of Buckley Canyon, approximately three fifths of a mile;
    (12) The boundary then follows Buckley Canyon in an easterly 
direction to the point where it meets Cherry Canyon;
    (13) The boundary then follows Cherry Canyon in a northeasterly 
direction to the point where it meets Grapevine Canyon on the Mt. 
Livermore, Texas-Chihuahua, U.S.G.S. map;
    (14) The boundary then proceeds in a straight line from the 
intersection of Cherry and Grapevine Canyons to the peak of Bear Cave 
Mountain, on the Fort Davis, Texas, U.S.G.S. map;
    (15) The boundary then proceeds in a straight line from the peak of 
Bear Cave Mountain to the point where Farm Road 1832 begins;
    (16) The boundary then follows Farm Road 1832 back to its 
intersection with Texas Highway 17, at the point of beginning.

[T.D. ATF-395, 63 FR 11828, Mar. 11, 1998]



Sec.  9.156  Diablo Grande.

    (a) Name. The name of the viticultural area described in this 
section is ``Diablo Grande''.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Diablo Grande viticultural area are the following four U.S.G.S. 
Quadrangle 7.5 Minute Series (Topographic) maps. They are titled:
    (1) Patterson Quadrangle, California--Stanislaus Co., 1953 
(Photorevised 1971, Photoinspected 1978);
    (2) Copper Mtn. Quadrangle, California--Stanislaus Co., 1953 (Field 
Check 1956, Aerial Photo 1971);
    (3) Wilcox Ridge, California--Stanislaus Co., 1956 (Photorevised 
1971);
    (4) Orestimba Peak, California--Stanislaus Co., 1955 (Photorevised 
1971).
    (c) Boundary. The Diablo Grande viticultural area is located in the 
western foothills of Stanislaus County, California. The beginning point 
is at Reservoir Spillway 780 in section 8, Township 6 South, Range 7 
East (T. 6S., R. 7E.) on the Patterson Quadrangle U.S.G.S. map.
    (1) Then proceed northwest to Salt Grass Springs to the point where 
the 1000 foot contour line crosses the northern section line of section 
9, T. 6S., R. 6E., on the Copper Mtn., Quadrangle U.S.G.S. map.
    (2) Then proceed due south past Copper Mountain in section 16, T. 
6S., R. 6E., to Mikes Peak in section 4, T. 7S., R. 6E., on the Wilcox 
Ridge Quadrangle U.S.G.S. map.
    (3) Then proceed due west to Oristimba Creek in section 6, T. 7S., 
R. 6E.
    (4) Then proceed following Orestimba Creek south/southeast and then 
east/northeast to the point where Orestimba Creek meets Bench Mark 
340 in section 28, T. 7S., R. 7E., on the

[[Page 235]]

Orestimba Peak Quadrangle U.S.G.S. map.
    (5) Then proceed northwest to the point of beginning at Reservoir 
Spillway 780 in section 8, T. 6S., R. 7E.

[T.D. ATF-399, 63 FR 33853, June 22, 1998]



Sec.  9.157  San Francisco Bay.

    (a) Name. The name of the viticultural area described in this 
section is ``San Francisco Bay.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the San Francisco Bay viticultural area are 43 United States 
Geological Survey topographic maps. They are titled:
    (1) Pacheco Peak, California, scale 1:24,000, dated 1955, 
Photorevised 1971;
    (2) Gilroy Hot Springs, California, scale 1:24,000, dated 1955, 
Photoinspected 1978, Photorevised 1971
    (3) Mt. Sizer, California, scale 1:24,000, dated 1955, 
Photoinspected 1978, Photorevised 1971
    (4) Morgan Hill, California, scale 1:24,000, dated 1955, 
Photorevised 1980
    (5) Lick Observatory, California, scale 1:24,000, dated 1955, 
Photoinspected 1973, Photorevised 1968
    (6) San Jose East, California, scale 1:24,000, dated 1961, 
Photorevised 1980;
    (7) Calaveras Reservoir, California, scale 1:24,000, dated 1961, 
Photorevised 1980;
    (8) La Costa Valley, California, scale 1:24,000, dated 1960, 
Photorevised 1968;
    (9) Mendenhall Springs, California, scale 1:24,000, dated 1956, 
Photoinspected 1978, Photorevised 1971;
    (10) Altamont, California, scale 1:24,000, dated 1953, Photorevised 
1981;
    (11) Byron Hot Springs, California, scale 1:24,000, dated 1953, 
Photorevised 1968;
    (12) Tassajara, California, scale 1:24,000, dated 1953, 
Photoinspected 1974, Photorevised 1968;
    (13) Diablo, California, scale 1:24,000, dated 1953, Photorevised 
1980;
    (14) Clayton, California, scale 1:24,000, dated 1953, Photorevised 
1980;
    (15) Honker Bay, California, scale 1:24,000, dated 1953, 
Photorevised 1980;
    (16) Vine Hill, California, scale 1:24,000, dated 1959, Photorevised 
1980;
    (17) Benicia, California, scale 1:24,000, dated 1959, Photorevised 
1980;
    (18) Mare Island, California, scale 1:24,000, dated 1959, 
Photorevised 1980;
    (19) Richmond, California, scale 1:24,000, dated 1959, Photorevised 
1980;
    (20) San Quentin, California, scale 1:24,000, dated 1959, 
Photorevised 1980;
    (21) Oakland West, California, scale 1:24,000, dated 1959, 
Photorevised 1980;
    (22) San Francisco North, California, scale 1:24,000, dated 1956, 
Photorevised 1968 and 1973;
    (23) San Francisco South, California, scale 1:24,000, dated 1956, 
Photorevised 1980;
    (24) Montara Mountain, California, scale 1:24,000, dated 1956, 
Photorevised 1980;
    (25) Half Moon Bay, California, scale 1:24,000, dated 1961, 
Photoinspected 1978, Photorevised 1968 and 1973;
    (26) San Gregorio, California, scale 1:24,000, dated 1961, 
Photoinspected 1978, Photorevised 1968;
    (27) Pigeon Point, California, scale 1:24,000, dated 1955, 
Photorevised 1968;
    (28) Franklin Point, California, scale 1:24,000, dated 1955, 
Photorevised 1968;
    (29) A[ntilde]o Nuevo, California, scale 1:24,000, dated 1955, 
Photorevised 1968;
    (30) Davenport, California, scale 1:24,000, dated 1955, Photorevised 
1968;
    (31) Santa Cruz, California, scale 1:24,000, dated 1954, 
Photorevised 1981;
    (32) Felton, California, scale 1:24,000, dated 1955, Photorevised 
1980;
    (33) Laurel, California, scale 1:24,000, dated 1955, Photoinspected 
1978, Photorevised 1968;
    (34) Soquel, California, scale 1:24,000, dated 1954, Photorevised 
1980;
    (35) Watsonville West, California, scale 1:24,000, dated 1954, 
Photorevised 1980;
    (36) Loma Prieta, California, scale 1:24,000, dated 1955, 
Photoinspected 1978, Photorevised 1968;
    (37) Watsonville East, California, scale 1:24,000, dated 1955, 
Photorevised 1980;
    (38) Mt. Madonna, California, scale 1:24,000, dated 1955, 
Photorevised 1980;
    (39) Gilroy, California, scale 1:24,000, dated 1955, Photorevised 
1981;
    (40) Chittenden, California, scale 1:24,000, dated 1955, 
Photorevised 1980;
    (41) San Felipe, California, scale 1:24,000, dated 1955, 
Photorevised 1971;

[[Page 236]]

    (42) Three Sisters, California, scale 1:24,000, dated 1954, 
Photoinspected 1978, Photorevised 1971; and
    (43) Cedar Mtn., California, scale 1:24,000, dated 1956, 
Photorevised 1971; Minor Revision 1994.
    (c) Boundary. The San Francisco Bay viticultural area is located 
mainly within five counties which border the San Francisco Bay and 
partly within two other counties in the State of California. These 
counties are: San Francisco, San Mateo, Santa Clara, Alameda, Contra 
Costa and partly in Santa Cruz and San Benito Counties. The Santa Cruz 
Mountains viticultural area is excluded (see 27 CFR 9.31.) The 
boundaries of the San Francisco Bay viticultural area, using landmarks 
and points of reference found on appropriate U.S.G.S. maps, are as 
follows:
    (1) Beginning at the intersection of the 37 degree 00[min] North 
latitude parallel with State Route 152 on the Pacheco Peak Quadrangle.
    (2) Then proceed in a northwesterly direction in a straight line to 
the intersection of Coyote Creek with the township line dividing 
Township 9 South from Township 10 South on the Gilroy Hot Springs 
Quadrangle.
    (3) Then proceed in a northwesterly direction in a straight line to 
the intersection of the township line dividing Township 8 South from 
Township 9 South with the range line dividing Range 3 East from Range 4 
East on the Mt. Sizer Quadrangle.
    (4) Then proceed in a northwesterly direction in a straight line 
(across the Morgan Hill Quadrangle) to the intersection of the township 
line dividing Township 7 South from Township 8 South with the range line 
dividing Range 2 East from Range 3 East on the Lick Observatory 
Quadrangle.
    (5) Then proceed in a northwesterly direction in a straight line to 
the intersection of State Route 130 with the township line dividing 
Township 6 South from Township 7 South on the San Jose East Quadrangle.
    (6) Then proceed in a northeasterly direction following State Route 
130 to its intersection with the range line dividing Range 1 East from 
Range 2 East on the Calaveras Reservoir Quadrangle.
    (7) Then proceed north following this range line to its intersection 
with the Hetch Hetchy Aqueduct on the La Costa Valley Quadrangle.
    (8) Then proceed in a northeasterly direction in a straight line 
following the Hetch Hetchy Aqueduct to the western boundary of Section 
14 in Township 4 South, Range 2 East on the Mendenhall Springs 
Quadrangle.
    (9) Then proceed south along the western boundary of Section 14 in 
Township 4 South, Range 2 East to the southwest corner of Section 14 on 
the Mendenhall Springs Quadrangle.
    (10) Then proceed east along the southern boundary of Section 14 in 
Township 4 South, Range 2 East to the southeast corner of Section 14 on 
the Mendenhall Springs Quadrangle.
    (11) Then proceed south along the western boundary of Section 24 in 
Township 4 South, Range 2 East to the southwest corner of Section 24 on 
the Mendenhall Springs Quadrangle.
    (12) Then proceed east along the southern boundary of Section 24 in 
Township 4 South, Range 2 East and Section 19 in Township 4 South, Range 
3 East to the southeast corner of Section 19 on the Mendenhall Springs 
Quadrangle.
    (13) Then proceed northeast in a straight line approximately 3.2 
miles to BM 1878 in Section 14 on the Cedar Mtn. Quadrangle.
    (14) Then proceed north in a straight line approximately 4.2 miles 
to BM 1600 adjacent to Tesla Road in Section 26, Township 3 South, Range 
3 East on the Midway Quadrangle.
    (15) Then proceed north-northwest in a straight line approximately 
2.8 miles to Patterson Pass, BM 1602, in Section 10, Township 3 South, 
Range 3 East, on the Altamont Quadrangle.
    (16) Then proceed north-northwest in a straight line approximately 
2.7 miles to the intersection of the eastern boundary of Section 32 with 
Highway 580 in Township 2 South, Range 3 East.
    (17) Then proceed north-northeast in a straight line approximately 
1.1 miles to an unnamed peak, elevation 1147, in Section 28, Township 2 
South, Range 3 East.
    (18) Then proceed north-northwest in a straight line approximately 1 
mile to BM 720 in Section 21, Township 2 South, Range 3 East, and 
proceed

[[Page 237]]

northwest in a straight line approximately 1.8 miles to the northeast 
corner of Section 18 on the Byron Hot Springs Quadrangle, Township 2 
South, Range 3 East.
    (19) Then proceed due west along the northern boundaries of Section 
18 and Section 13 (Township 2 South, Range 2 East) to a point 
approximately 400 feet due south of Brushy Peak on the Byron Hot Springs 
Quadrangle.
    (20) Then proceed due north to Brushy Peak (elevation 1,702) on the 
Byron Hot Springs Quadrangle.
    (21) Then proceed in a northwesterly direction in a straight line 
(across the Tassajara and Diablo Quadrangles) to Mt. Diablo (elevation 
3,849) on the Clayton Quadrangle.
    (22) Then proceed in a northwesterly direction in a straight line to 
Mulligan Hill (elevation 1,438) on the Clayton Quadrangle.
    (23) Then proceed in a northwesterly direction in a straight line 
(across the Honker Bay Quadrangle) to a point marked BM 15 on the 
shoreline of Contra Costa County on the Vine Hill Quadrangle.
    (24) Then proceed west along the shoreline of Contra Costa County 
and Alameda County (across the Quadrangles of Benicia, Mare Island, 
Richmond, and San Quentin) to the San Francisco/Oakland Bay Bridge on 
the Oakland West Quadrangle.
    (25) Then proceed west on the San Francisco/Oakland Bay Bridge to 
the San Francisco County shoreline on the San Francisco North 
Quadrangle.
    (26) Then proceed along the San Francisco, San Mateo, and Santa Cruz 
County shoreline (across the Quadrangles of San Francisco South, Montara 
Mountain, Half Moon Bay, San Gregorio, Pigeon Point, Franklin Point, 
A[ntilde]o Nuevo and Davenport) to the place where Majors Creek flows 
into the Pacific Ocean on the Santa Cruz Quadrangle.
    (27) Then proceed northeasterly along Majors Creek to its 
intersection with the 400 foot contour line on the Felton Quadrangle.
    (28) Then proceed along the 400 foot contour line in a generally 
easterly/northeasterly direction to its intersection with Bull Creek on 
the Felton Quadrangle.
    (29) Then proceed along Bull Creek to its intersection with Highway 
9 on the Felton Quadrangle.
    (30) Then proceed along Highway 9 in a northerly direction to its 
intersection with Felton Empire Road.
    (31) Then proceed along Felton Empire Road in a westerly direction 
to its intersection with the 400 foot contour line on the Felton 
Quadrangle.
    (32) Then proceed along the 400 foot contour line (across the 
Laurel, Soquel, Watsonville West and Loma Prieta Quadrangles) to its 
intersection with Highway 152 on the Watsonville East Quadrangle.
    (33) Then proceed along Highway 152 in a northeasterly direction to 
its intersection with the 600 foot contour line just west of Bodfish 
Creek on the Watsonville East Quadrangle.
    (34) Then proceed in a generally east/southeasterly direction along 
the 600 foot contour line (across the Mt. Madonna and Gilroy 
Quadrangles), approximately 7.3 miles, to the first intersection of the 
western section line of Section 30, Township 11 South, Range 4 East on 
the Chittenden Quadrangle.
    (35) Then proceed south along the section line approximately 1.9 
miles to the south township line at Section 31, Township 11 South, Range 
4 East on the Chittenden Quadrangle.
    (36) Then proceed in an easterly direction along the township line 
(across the San Felipe Quadrangle), approximately 12.4 miles to the 
intersection of Township 11 South and Township 12 South and Range 5 East 
and Range 6 East on the Three Sisters Quadrangle.
    (37) Then proceed north along the Range 5 East and Range 6 East 
range line approximately 5.5 miles to Pacheco Creek on the Pacheco Creek 
Quadrangle.
    (38) Then proceed northeast along Pacheco Creek approximately .5 
mile to the beginning point.

[T.D. ATF-407, 64 FR 3024, Jan. 20, 1999, as amended by T.D. TTB-48, 71 
FR 34525, June 16, 2006]

    Effective Date Note: At 73 FR 12880, Mar. 11, 2008, Sec.  9.157 was 
amended by revising the introductory text of paragraph (b), removing the 
word ``and'' at the end of paragraph (b)(42), replacing the period with 
a semicolon at the end of paragraph (b)(43), adding new

[[Page 238]]

paragraphs (b)(44) through (b)(47), revising the introductory text of 
paragraph (c), revising paragraph (c)(24), redesignating paragraphs 
(c)(25) through (c)(38) as (c)(31) through (c)(44), and adding new 
paragraphs (c)(25) through (c)(30), effective Apr. 10, 2008. For the 
convenience of the user, the added and revised text is set forth as 
follows:



Sec.  9.157  San Francisco Bay.

                                * * * * *

    (b) Approved Maps. The appropriate maps for determining the boundary 
of the San Francisco Bay viticultural area are 47 1:24,000 Scale USGS 
topographic maps. They are titled:

                                * * * * *

    (44) Cuttings Wharf, Calif.; 1949; Photorevised 1981;
    (45) Sears Point, Calif.; 1951; Photorevised 1968;
    (46) Cordelia, Calif.; 1951; Photorevised 1980; and
    (47) Fairfield South, Calif.; 1949; Photorevised 1980.
    (c) Boundary. The San Francisco Bay viticultural area is located 
mainly within five counties, San Francisco, San Mateo, Santa Clara, 
Alameda, and Contra Costa, which border the San Francisco Bay. The area 
also includes portions of three other counties, Solano, Santa Cruz, and 
San Benito, which are in the general vicinity of the greater San 
Francisco Bay metropolitan area. The boundary of the San Francisco Bay 
viticultural area is as described below.

                                * * * * *

    (24) Then proceed west-southwest along the south shoreline of the 
Suisun Bay and the Carquinez Strait to its intersection with Interstate 
680 at the Benicia-Martinez Bridge and BM 66, T3N/R2W, on the Vine Hill 
Quadrangle.
    (25) Then proceed generally north following Interstate 680, crossing 
over and back on the Benicia Quadrangle map and continuing over the 
Fairfield South Quadrangle map, to its intersection with the Southern 
Pacific railroad track at Cordelia, Section 12, T4N/R3W, on the Cordelia 
Quadrangle map.
    (26) Then proceed generally west along the Southern Pacific railroad 
track to its intersection with the Napa and Solano Counties boundary 
line in Jameson Canyon at Creston, Section 9, T4N/R3W, on the Cordelia 
Quadrangle map.
    (27) Then proceed generally south-southeast, followed by straight 
west along the Napa and Solano Counties boundary line; continue straight 
west, crossing over the Cuttings Wharf Quadrangle map, to its 
intersection with the east shoreline of Sonoma Creek slough, which 
coincides with the Highway 37 bridge on the Solano County side of the 
creek, T4N/R5W, on the Sears Point Quadrangle.
    (28) Then proceed generally southeast along the north and east 
shorelines of San Pablo Bay, also known as the San Pablo Bay National 
Wildlife Refuge, crossing over the Cuttings Wharf Quadrangle map, to its 
intersection with the Breakwater line, located within the Vallejo City 
boundary and 0.7 mile west-southwest of the beacon, T3N/R4W, on the Mare 
Island Quadrangle.
    (29) Then proceed straight south-southwest 1.2 miles to its 
intersection with the San Pablo Bay shoreline at BM 14, west of Davis 
Point, T3N/R4W, on the Mare Island Quadrangle.
    (30) Then proceed generally south along the contiguous eastern 
shorelines of San Pablo Bay and San Francisco Bay, crossing over the 
Richmond and San Quentin Quadrangle maps, to its intersection with the 
San Francisco/Oakland Bay Bridge on the Oakland West Quadrangle.

                                * * * * *



Sec.  9.158  Mendocino Ridge.

    (a) Name. The name of the viticultural area described in this 
section is ``Mendocino Ridge.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Mendocino Ridge viticultural area are four 1:62,500 scale 
U.S.G.S. topographical maps. They are titled:
    (1) Ornbaun Valley Quadrangle, California, 15 minute series 
topographic map, 1960;
    (2) Navarro Quadrangle, California, 15 minute series topographic 
map, 1961;
    (3) Point Arena Quadrangle, California, 15 minute series topographic 
map, 1960;
    (4) Boonville Quadrangle, California, 15 minute series topographic 
map, 1959.
    (c) Boundary. The Mendocino Ridge viticultural area is located 
within Mendocino County, California. Within the boundary description 
that follows, the viticultural area starts at the 1200 foot elevation 
(contour line) and encompasses all areas at or above the 1200 foot 
elevation line. The boundaries of the Mendocino Ridge viticultural area, 
using landmarks and points of reference found on appropriate U.S.G.S. 
maps, follow.
    (1) Beginning at the Mendocino/Sonoma County line at the mouth of

[[Page 239]]

the Gualala River, where the Gualala River empties into the Pacific 
Ocean, in section 27 of Township 11 North (T11N), Range 5 West (R5W), 
located in the southeastern portion of U.S.G.S. 15 minute series map, 
``Point Arena, California;''
    (2) Then following the Mendocino/Sonoma County line eastward to the 
southeast corner of section 8 in T11N/R13W, on the U.S.G.S. 15 minute 
map, ``Ornbaun Valley, California;''
    (3) Then from the southeast corner of section 8 in T11N/R13W 
directly north approximately 3+ miles to the southwest corner of section 
9 in T12N/R13W;
    (4) Then proceeding in a straight line in a northwesterly direction 
to the southwestern corner of section 14 in T13N/R14W;
    (5) Then directly north along the western line of section 14 in 
T13N/R14W to a point on the western line of section 14 approximately \1/
4\ from the top where the Anderson Valley viticultural area boundary 
intersects the western line of section 14 in T13N/R14W;
    (6) Then in a straight line, in a northwesterly direction, to the 
intersection of an unnamed creek and the south section line of section 
14, T14N/R15W, on the U.S.G.S. 15 minute series map, ``Boonville, 
California;''
    (7) Then in a westerly direction along the south section lines of 
sections 14 and 15 in T14N/R15W to the southwest corner of section 15, 
T14N/R15W, on the U.S.G.S. 15 minute series map, ``Navarro, 
California;''
    (8) Then in a northerly direction along the western section lines of 
sections 15, 10, and 3 in T14N/R15W in a straight line to the 
intersection of the Navarro River on the western section line of section 
3 in T14N/R15W;
    (9) Then in a northwesterly direction along the Navarro River to the 
mouth of the river where it meets the Pacific Ocean in section 5 of 
T15N/R17W;
    (10) Then in a southern direction along the Mendocino County 
coastline to the Mendocino/Sonoma County line to the beginning point at 
the mouth of the Gualala River in section 27 of T11N/R15W, on the 
U.S.G.S. 15 minute series map, ``Point Arena, California.''

[T.D. ATF-392, 62 FR 55516, Oct. 27, 1997]



Sec.  9.159  Yorkville Highlands.

    (a) Name. The name of the viticultural area described in this 
section is ``Yorkville Highlands.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Yorkville Highlands viticultural area are the following six 
U.S.G.S. topographical maps (7.5 minute series, 1:24000 scale):
    (1) Gube Mountain, Calif., provisional edition 1991;
    (2) Big Foot Mountain, Calif., provisional edition 1991;
    (3) Cloverdale, Calif., 1960, photoinspected 1975;
    (4) Ornbaun Valley Quadrangle, Calif., provisional edition, 1991;
    (5) Yorkville, Calif., provisional edition, 1991;
    (6) Hopland, Calif., 1960, photoinspected 1975.
    (c) Boundary. The Yorkville Highlands viticultural area is located 
in Mendocino County, California. The boundary is as follows:
    (1) The beginning point is Benchmark 680, located in Section 30, T. 
12 N., R. 13 W., on the Ornbaum Valley quadrangle map;
    (2) From the beginning point, the boundary proceeds in a straight 
line in a northeasterly direction to a point intersecting the North Fork 
of Robinson Creek and the Section 20, T. 13 N., R. 13 W.;
    (3) The boundary then proceeds in a straight line in a southeasterly 
direction to the summit of Sanel Mountain, located at the southeast 
corner of Section 30, T. 13 N., R. 12 W., on the Yorkville quadrangle 
map;
    (4) The boundary then proceeds in a straight line in a southeasterly 
direction until it reaches the southeast corner of Section 15, T. 12 N., 
R 11 W., on the Hopland quadrangle map;
    (5) The boundary then proceeds south, following the eastern 
boundaries of Sections 22 and 27, T. 12 N., R 11 W., until it reaches 
the Mendocino-Sonoma County line on the Cloverdale quadrangle map;
    (6) The boundary then follows the Mendocino-Sonoma county line west, 
south and west until it reaches the southwest corner of Section 32, T. 
12 N., R. 11 W.;

[[Page 240]]

    (7) The boundary then diverges from the county line and proceeds in 
a northwesterly direction, traversing the Big Foot Mountain quadrangle 
map, until it reaches the southwest corner of Section 5, T. 12 N., R. 13 
W. on the Ornbaun Valley quadrangle map;
    (8) The boundary proceeds in a straight line in a northerly 
direction until it reaches the beginning point at Benchmark 680.

[T.D. ATF-397, 63 FR 16904, Apr. 7, 1998]



Sec.  9.160  Yountville.

    (a) Name. The name of the viticultural area described in this 
section is ``Yountville.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Yountville viticultural area are four 1:24,000 Scale U.S.G.S. 
topography maps. They are titled:
    (1) Napa, CA 1951 photorevised 1980;
    (2) Rutherford, CA 1951 photorevised 1968;
    (3) Sonoma, CA 1951 photorevised 1980;
    (4) Yountville, CA 1951 photorevised 1968.
    (c) Boundary. The Yountville viticultural area is located in the 
State of California, entirely within the Napa Valley viticultural area. 
The boundaries of the Yountville viticultural area, using landmarks and 
points of reference found on appropriate U.S.G.S. maps are as follows:
    (1) Beginning on the Rutherford quadrangle map at the intersection 
of the 500 foot contour line with an unnamed stream known locally as 
Hopper Creek north of the center of Section 3, T6N, R5W, Mount Diablo 
Meridan (MDM);
    (2) Then along the unnamed stream (Hopper Creek) southeasterly, and 
at the fork in Section 3, northeasterly along the stream to the point 
where the stream intersects with an unnamed dirt road in the northwest 
corner of Section 2, T6N, R5W, MDM;
    (3) Then in a straight line to the light duty road to the immediate 
northeast in Section 2, then along the light duty road in a 
northeasterly direction to the point at which the road turns 90 degrees 
to the left;
    (4) Then northerly along the light duty road 625 feet, then 
northeasterly (N 40[deg] by 43[min]) in a straight line 1,350 feet, 
along the northern property line of Assessor's Parcel Number 27-380-08, 
to State Highway 29, then continuing in a straight line approximately 
500 feet to the peak of the 320 plus foot hill along the western edge of 
the Yountville hills;
    (5) Then east to the second 300 foot contour line, then along said 
contour line around the Yountville hills to the north to the point at 
which the 300 foot line exits the Rutherford quadrangle for the second 
time;
    (6) Then, on the Yountville quadrangle map, in a straight line in a 
northeasterly direction approximately N34[deg] by 30[min] E 
approximately 1,000 feet to the 90 degree bend in the unimproved dirt 
road shown on the map, then along that road, which coincides with a 
fence line to the intersection of Conn Creek and Rector Creek;
    (7) Then along Rector Creek to the northeast past Silverado Trail to 
the Rector Reservoir spillway entrance, then south approximately 100 
feet to the 400 foot contour line, then southerly along the 400 foot 
contour line approximately 4200 feet to the intersection with a gully in 
section 30, T7N, R4W, MDM;
    (8) Then southwesterly down the center of the gully approximately 
800 feet to the medium duty road known as Silverado Trail, then 
southeasterly along the Silverado Trail approximately 590 feet to the 
medium duty road known locally Yountville Cross Road;
    (9) Then southwesterly along the Yountville Cross Road (denoted as 
GRANT BDY on the map) approximately 4,700 feet to the main branch of the 
Napa River, then following the western boundary of the Stags Leap 
District viticultural area, first southerly down the center of the Napa 
River approximately 21,000 feet, then leaving the Napa River 
northeasterly in a straight line approximately 900 feet to the 
intersection of the Silverado Trail with an intermittent stream at the 
60 foot contour line in T6N, R4W, MDM;
    (10) Then along the Silverado Trail southerly approximately 3,200 
feet, passing into the Napa quadrangle, to a point which is east of the 
confluence of Dry Creek with the Napa River; then

[[Page 241]]

west approximately 600 feet to said confluence; then northwesterly along 
Dry Creek approximately 3,500 feet, passing into the Yountville 
quadrangle to a fork in the creek; then northwesterly along the north 
fork of Dry Creek approximately 5,700 feet to the easterly end of the 
light duty road labeled Ragatz Lane;
    (11) Then southwesterly along Ragatz Lane to the west side of State 
Highway 29, then southerly along Highway 29 by 982 feet to the easterly 
extension of the north line boundary of Napa County Assessor's parcel 
number 034-170-015, then along the north line of APN 034-170-015 and its 
extension westerly 3,550 feet to the dividing line Between R4W and R5W 
on the Napa quadrangle, then southwesterly approximately 1000 feet to 
the peak denoted as 564 (which is about 5,500 feet easterly of the 
northwest corner of the Napa quadrangle); then southwesterly 
approximately 4,000 feet to the peak northeast of the reservoir gauging 
station denoted as 835;
    (12) Then southwesterly approximately 1,500 feet to the reservoir 
gauging station, then west to the 400 foot contour line on the west side 
of Dry Creek, then northwesterly along the 400 foot contour line to the 
point where the contour intersects the north line of Section 10. T6N, 
R5W, MDM, immediately adjacent to Dry Creek on the Rutherford, CA map;
    (13) Then northwesterly along Dry Creek approximately 6,500 feet to 
BM503, then northeasterly approximately 3,000 feet to the peak denoted 
as 1478, then southeasterly approximately 2,300 feet to the beginning of 
the creek known locally as Hopper Creek, then southeasterly along Hopper 
Creek approximately 2,300 feet to the point of beginning.

[T.D. ATF-410, 64 FR 13513, Mar. 19, 1999]



Sec.  9.161  Oak Knoll District of Napa Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Oak Knoll District of Napa Valley''.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Oak Knoll District of Napa Valley viticultural area are the 
following United States Geological Survey Quadrangle maps (7.5 Minute 
Series):
    (1) Napa, California, 1951 (Photo revised 1980); and
    (2) Yountville, California, 1951 (Photo revised 1968).
    (c) Boundaries. The Oak Knoll District of Napa Valley viticultural 
area is located entirely within Napa County, California. The boundaries 
of the Oak Knoll District of Napa Valley viticultural area, using 
landmarks and points of reference found on the appropriate U.S.G.S. 
maps, are as follows:
    (1) Beginning at the intersection of State Highway 29 and Trancas 
Road in the city of Napa on the Napa, CA quadrangle map;
    (2) Proceed easterly along Trancas Road until it meets the Napa 
River;
    (3) Proceed southerly along the Napa River approximately 3,500 feet 
to its confluence with Milliken Creek;
    (4) Continue northerly up Milliken Creek to its intersection with 
Monticello Road;
    (5) Then proceed westerly along Monticello Road to its intersection 
with Silverado Trail;
    (6) Then proceed northerly and then northeasterly along Silverado 
Trail to its intersection with an unimproved dirt road located 
approximately 1,300 feet north of the intersection of Silverado Trail 
and Oak Knoll Avenue;
    (7) From that point, proceed west in a straight line to the 
confluence of Dry Creek and the Napa River;
    (8) Then proceed northwesterly along Dry Creek onto the Yountville 
map to the fork in the creek; then northwesterly along the north fork of 
Dry Creek to its intersection with the easterly end of the light-duty 
road labeled Ragatz Lane;
    (9) Proceed southwesterly along Ragatz Lane to the west side of 
State Highway 29;
    (10) Then proceed southerly along the west side of State Highway 29 
for 982 feet to a point marking the easterly extension of the northern 
boundary of Napa County Assessor's parcel number 034-170-015 (marked in 
part by a fence along the southern edge of the orchard shown along the 
west side of State Highway 29 just above the bottom of the Yountville 
map);

[[Page 242]]

    (11) Then proceed westerly for 3,550 feet along the northern 
boundary of Napa County Assessor's parcel number 034-170-015 and its 
westerly extension to the dividing line between Range 5 West and Range 4 
West on the Napa, CA map;
    (12) Then proceed southwest in a straight line to the peak marked 
with an elevation of 564 feet; then south-southwest in a straight line 
to the peak marked with an elevation of 835 feet;
    (13) Then proceed southwest in a straight line approximately 1,300 
feet to the reservoir gauging station located on Dry Creek; then proceed 
west in a straight line across Dry Creek to the 400 foot contour line;
    (14) Proceed along the 400-foot contour line in a generally 
southeasterly direction to its intersection with the line dividing Range 
5 West and Range 4 West; then proceed south along that dividing line 
approximately 2,400 feet to the center of Redwood Road;
    (15) Then proceed southerly and then easterly along Redwood Road to 
the point of beginning at Highway 29.

[T.D. TTB-9, 69 FR 8562, Feb. 25, 2004]



Sec.  9.162  Sta. Rita Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Sta. Rita Hills''. For purposes of part 4 of this chapter, 
``Sta. Rita Hills'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the Sta. Rita Hills viticultural area are five United States 
Geological Survey (USGS) 7.5 Minute Series maps titled:
    (1) ``Lompoc, Calif.,'' edition of 1959 (photorevised in 1982).
    (2) ``Lompoc Hills, Calif.,'' edition of 1959 (photoinspected 1971).
    (3) ``Los Alamos, Calif.,'' edition of 1959.
    (4) ``Santa Rosa Hills, Calif.,'' edition of 1959 (photoinspected 
1978).
    (5) ``Solvang, Calif.,'' edition of 1959 (photorevised 1982).
    (c) Boundary. The Sta. Rita Hills viticultural area is located in 
Santa Barbara County, California. The boundary is as follows:
    (1) The beginning point is found on the Solvang, California U.S.G.S. 
Quadrangle map at an unnamed hilltop, elevation 1600 feet, in section 
27, T.6N, R. 32W, on the Solvang, Calif., Quadrangle U.S.G.S. map.
    (2) Then proceed north and slightly west 2.3 miles to an unnamed 
hilltop elevation 1174 feet, Section 15, T.6N., R. 32W.
    (3) Proceed west and slightly north 1.85 miles to an unnamed hilltop 
elevation 899 feet within the heart of the Santa Rosa Land Grant, T.7N., 
R. 32W, on the Santa Rosa Hills, Calif., Quadrangle U.S.G.S. map.
    (4) Proceed north approximately 2 miles to an unnamed hilltop 
elevation 1063 feet within the northeastern part of the Santa Rosa Land 
Grant, T.7N, R. 32W, on the Los Alamos, Calif., Quadrangle U.S.G.S. map.
    (5) Proceed northwest 1.1 miles to an unnamed hilltop elevation 961 
feet. Section 29, T.7N., R. 32W.
    (6) Proceed north and slightly east 1.1 miles to an unnamed 
elevation 1443 feet. Section 20, T. 7N., R. 32W.
    (7) Proceed west 1.4 miles to an unnamed hilltop elevation 1479 
feet. Section 24, T.7N., R. 33W.
    (8) Proceed north 1.2 miles to an unnamed hilltop elevation 1705 
feet. Section 13, T.7N., R. 33W.
    (9) Proceed northwest approximately 2 miles to an unnamed hilltop 
elevation 1543. Section 10, T.7N., R. 33W.
    (10) Proceed west and slightly south 1.6 miles to an unnamed hilltop 
elevation 935 feet within the northern section of the Santa Rosa Land 
Grant. T.7N., R. 33W.
    (11) Proceed south by southwest 1.5 miles to an unnamed hilltop 
elevation 605 feet in the northern section of the Santa Rosa Land Grant. 
T.7N., R. 33W.
    (12) Proceed west by southwest approximately 2 miles to the point 
where California Highway 246 intersects with the 200-foot elevation 
contour line comprising the western border of the Santa Rita Hills, 
within the Santa Rosa Land Grant. T.7N., R. 34W, on the Lompoc, Calif., 
Quadrangle U.S.G.S. map.
    (13) Proceed following the 200 foot elevation contour line south 
along the western border of the Santa Rita Hills to the extreme southern 
tip of the 200 foot elevation contour that is .6 miles due west of an 
unnamed hilltop 361 feet

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in elevation in the Canada de Salispuedes Land Grant. T.6N., R. 34W.
    (14) Proceed southeast 2.35 miles to an unnamed hilltop elevation 
1070 feet. Section 18, T.6N., R. 33W, on the Lompoc Hills, Calif., 
Quadrangle U.S.G.S. map.
    (15) Proceed east and slightly south 1.95 miles to an unnamed 
hilltop elevation 921 feet. Section 16, T.6N., R. 33W, on the Santa Rosa 
Hills, Calif., Quadrangle U.S.G.S. map.
    (16) Proceed east by southeast 1.35 miles to an unnamed hilltop 
elevation 1307 feet at intersection between Sections 22 and 23. T.6N., 
R. 33W.
    (17) Proceed east 2.35 miles to an unnamed hilltop elevation 1507 
feet in the southern area of the Santa Rosa Land Grant. T.6N., 32W.
    (18) Proceed east by southeast 2.1 miles to an unnamed hilltop 
elevation 1279 feet in the southern area of the Santa Rosa Land Grant. 
T.6N., 32W.
    (19) Then proceed east by southeast 1.45 miles to the point of the 
beginning.
    (d) From July 30, 2001, until January 5, 2006, this viticultural 
area was named ``Santa Rita Hills''. Effective January 6, 2006, the name 
of this viticultural area is ``Sta. Rita Hills''. Existing certificates 
of label approval showing ``Santa Rita Hills'' as the appellation of 
origin are revoked by operation of this regulation on January 6, 2007.

[T.D. ATF-454, 66 FR 29479, May 31, 2001, as amended by T.D. TTB-37, 70 
FR 72713, Dec. 7, 2005]



Sec.  9.163  Salado Creek.

    (a) The name of the viticultural area described in this section is 
``Salado Creek''.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Salado Creek viticultural area are two 1:24,000 Scale 
USGS topographic maps. They are titled:
    (1) Patterson, California Quadrangle,--Stanislaus Co., 7.5 Minute 
Series, edition of 1953; photorevised 1971, photoinspected 1978; and
    (2) Crows Landing, California Quadrangle,--Stanislaus Co., 7.5 
Minute Series, edition of 1952, photorevised 1980.
    (c) Boundaries. The Salado Creek viticultural area is located in 
Stanislaus County, California, just southwest of the town of Patterson. 
The Salado Creek viticultural area boundary is as follows:
    (1) Beginning on the Patterson Quadrangle map, section 19, T6S, R8E, 
at the intersection of Interstate Highway 5 and Fink Road, proceed 
northwest for 4.25 miles along Interstate 5 to its junction with an 
unnamed light duty road in section 35, T5S, R7E; then
    (2) Follow the unnamed light duty road for approximately 0.45 miles, 
going east across the California Aqueduct and then north, to the road's 
intersection with the light duty road atop the levee on the east bank of 
the Delta-Mendota Canal in section 35, T5S, R7E; then
    (3) Proceed southeast approximately 0.3 miles along the Delta-
Mendota Canal levee road to its intersection with an unnamed unimproved 
road in section 35, T5S, R7E; then
    (4) Proceed north and then east on the unimproved road for 
approximately 0.4 mile to its intersection with Baldwin Road and 
continue east on Baldwin Road approximately one mile, crossing Salado 
Creek, to the Baldwin Road's intersection with Ward Avenue at the 
eastern boundary line of section 36, T5S, R7E; then,
    (5) Proceed north on Ward Avenue approximately 400 feet to its 
intersection with the 2nd Lift drainage canal in section 31, T5S, R8E; 
then
    (6) Follow the 2nd Lift canal southeast approximately 0.75 miles to 
its intersection with Elfers Road in section 31, T5S, R8E; then
    (7) Proceed east on Elfers Road approximately for 0.45 miles, 
crossing onto the Crows Landing Quadrangle map, to its intersection with 
an unnamed, unimproved road on the south side of Elfers Road that also 
marks the western boundary of section 6, T6S, R8E; then
    (8) Proceed straight south on the unimproved road approximately one 
mile to its intersection with Marshall Road in section 6, T6S, R8E; then
    (9) Follow Marshall Road straight west 1.1 miles, crossing onto the 
USGS Patterson map, to its intersection with Ward Avenue in section 6, 
T6S, R8E; then
    (10) Proceed south 1.65 miles on Ward Avenue to its intersection 
with the

[[Page 244]]

California Aqueduct, then continue generally south approximately 1.4 
miles along the aqueduct to its intersection with Fink Road in section 
19, T6S, R8E; then
    (11) Follow Fink Road northwest for approximately 0.5 miles, 
returning to the beginning point at the intersection of Interstate 
Highway 5 and Fink Road in section 19, T6S, R8E.

[T.D. TTB-13, June 29, 2004]



Sec.  9.164  River Junction.

    (a) Name. The name of the viticultural area described in this 
section is ``River Junction.''
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the River Junction viticultural area are the following two 
1:24,000 Scale U.S.G.S. topographical maps. They are titled:
    (1) Ripon, CA 1969, photorevised 1980;
    (2) Vernalis, CA 1969, photorevised 1980.
    (c) Boundaries. The River Junction AVA is located in southern San 
Joaquin County, California. The boundaries are as follows:
    (1) Beginning on the Vernalis, CA quadrangle map at the intersection 
of the secondary highway Airport Way and the San Joaquin River levee, 
near Benchmark 35 in T3S/R6E;
    (2) Then in a southeasterly direction, follow the levee along the 
San Joaquin River onto the Ripon, CA quadrangle map;
    (3) Then in a northerly direction around Sturgeon Bend in section 18 
T3S/R7E;
    (4) Then continuing in a generally southeasterly, then northeasterly 
direction along the levee adjoining the Stanislaus River through 
sections 19, 20 and 17 to the point where the levee intersects sections 
17 and 8;
    (5) Then continuing in a northerly direction along the levee in 
section 8 for approximately 1,000 feet;
    (6) Then in a straight line in a northwesterly direction for 
approximately 100 feet to the intersection with Division Road;
    (7) Then in a southwesterly, then northwesterly direction along 
Division Road through sections 8, 17, 18 and 7 to the intersection with 
the secondary highway Airport Way;
    (8) Then in a southwesterly direction along Airport Way onto the 
Vernalis quadrangle map to the starting point at the intersection of 
Airport Way and the San Joaquin River levee T3S/R6E.

[T.D. ATF-452, 66 FR 23592, May 9, 2001]



Sec.  9.165  Applegate Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Applegate Valley.''
    (b) Approved maps. The appropriate map for determining the 
boundaries of the Applegate Valley viticultural area is one U.S.G.S. map 
titled ``Medford, Oregon; California'' (NK 10-5) scale 1:250,000 (1955, 
revised 1976).
    (c) Boundaries. The Applegate Valley viticultural area is located in 
the State of Oregon within Jackson and Josephine Counties, and entirely 
within the existing Rogue Valley viticultural area. The boundaries are 
as follows:
    (1) Beginning at the confluence of the Applegate River with the 
Rogue River approximately 5 miles west of Grants Pass, the boundary 
proceeds due west to the boundary of the Siskiyou National Forest north 
of Dutcher Creek;
    (2) Then in a straight line in a southerly and westerly direction 
along the boundary of the Siskiyou National Forest to Highway 199;
    (3) Then in a straight line easterly to the peak of Roundtop 
Mountain (4693 feet);
    (4) Then in a straight line easterly and southerly to the peak of 
Mungers Butte;
    (5) Then in a straight line southerly and westerly to Holcomb Peak;
    (6) Then in a generally southeasterly direction along the eastern 
boundary of the Siskiyou National Forest until it joins the northern 
boundary of the Rogue River National Forest;
    (7) Then easterly along the northern boundary of the Rogue River 
National forest to a point due south of the peak of Bald Mountain;
    (8) Then due north to the peak of Bald Mountain (5635 feet);
    (9) Then in a straight-line northerly and westerly to the lookout 
tower on Anderson Butte;
    (10) Then in a straight line northerly and westerly to the peak of 
an unnamed mountain with an elevation of 3181 feet;

[[Page 245]]

    (11) Then in a straight line northerly and westerly to the peak of 
Timber Mountain;
    (12) Then in a straight line westerly and southerly to the middle 
peak of Billy Mountain;
    (13) Then, northerly and westerly by straight lines connecting a 
series of five unnamed peaks with elevations of approximately 3600, 
4000, 3800, 3400, and 3800 feet, respectively;
    (14) Then in a straight line northerly and easterly to Grants Pass 
Peak;
    (15) Then in a straight line westerly to Jerome Prairie;
    (16) Then in a straight line northwesterly to the confluence of the 
Applegate River and the Rogue River and the point of the beginning.

[T.D. ATF-434, 65 FR 78099, Dec. 14, 2000]



Sec.  9.166  Diamond Mountain District.

    (a) Name. The name of the viticultural area described in this 
section is ``Diamond Mountain District.''
    (b) Approved map. The appropriate maps for determining the boundary 
of the Diamond Mountain District viticultural area are two 1:24,000 
Scale U.S.G.S. topography maps. They are titled:
    (1) Mark West Springs, CA 1993
    (2) Calistoga, CA 1993.
    (c) Boundaries. The viticultural area is located in Napa County, 
California. The beginning point is where the boundary between Napa and 
Sonoma counties intersects Petrified Forest Road in Section 3 of 
Township 8 North, Range 7 West, Mount Diablo Base and Meridian on the 
Mark West Springs map;
    (1) Then north and east along Petrified Forest Road approximately 
1.9 miles to the point where it intersects the 400-foot contour just 
east of Section 35 of Township 9 North, Range 7 West, Mount Diablo Base 
and Meridian, in the Mallacomes land grant;
    (2) Then generally east southeast along the 400-foot contour 
approximately 6.5 miles to the point where it intersects Ritchey Creek 
in Section 3 of Township 8 North, Range 6 West, Mount Diablo Base and 
Meridian;
    (3) Then west southwest along Ritchey Creek approximately 2.2 miles 
to the point where it intersects the boundary between Sections 17 and 20 
of Township 8 North, Range 6 West, Mount Diablo Base and Meridian;
    (4) Then due west in a straight line along the section boundary 
approximately 0.8 miles to the point where it intersects the boundary 
between Napa and Sonoma Counties between Sections 18 and 19 of Township 
8 North, Range 6 West, Mount Diablo Base and Meridian;
    (5) Then generally northwest along the boundary between Napa and 
Sonoma Counties approximately 4.2 miles to the point where it intersects 
Petrified Forest Road, to the point of beginning.

[T.D. ATF-456, 66 FR 29698, June 1, 2001]



Sec.  9.167  Red Mountain

    (a) Name. The name of the viticultural area described in this 
section is ``Red Mountain.''
    (b) Approved maps. The appropriate map for determining the 
boundaries of the Red Mountain viticultural area is one U.S.G.S. map 
titled ``Benton City, Washington'' 7.5 minute series (topographic), 
(1974).
    (c) Boundaries. The Red Mountain viticultural area is located within 
Benton County, Washington, entirely within the existing Yakima Valley 
viticultural area. The boundaries are as follows:
    (1) The northwest boundary beginning on this map at the intersection 
of the 560-foot elevation level and the aqueduct found northwest of the 
center of section 32.
    (2) Then following the aqueduct east to its endpoint at an elevation 
of approximately 650-feet, again in section 32.
    (3) From this point in a straight line southeast to the 1173-foot 
peak, located southeast of the center of section 32.
    (4) From this peak southeast in a straight line across the lower 
southwest corner of section 33 to the 1253-foot peak located due north 
of the center of section 4.
    (5) Then in a straight line southeast to the 1410-foot peak located 
in the southwest corner of section 3.
    (6) From this peak in a straight line southeast to the border of 
sections 10 and 11 where the power line crosses these two sections. This 
intersection is northeast of the center of section 10

[[Page 246]]

and northwest of the center of section 11.
    (7) From this point in a straight line south following the border of 
sections 10 and 11 to the corner of sections 10,11,15, and 14. This 
point has an elevation of 684 feet.
    (8) From this point southwest in a diagonal to the 700-foot 
elevation line and then following this 700-foot elevation through 
Section 15 and into section 16.
    (9) Then following the 700-foot elevation line southwest \1/4\ mile 
in a southwest diagonal until it meets the creek bed.
    (10) Following the creek bed southwest through section 16, across 
the extreme southeast corner of section 17 and into the northeast corner 
of section 20 to a point where the creek bed meets the 560-foot 
elevation point.
    (11) From this 560-foot elevation point, running north along this 
elevation line through section 17, through section 8, through section 5 
and through section 32 until meeting the beginning point at the aqueduct 
in section 32.

[T.D. ATF-448, 66 FR 18545, Apr. 10, 2001]



Sec.  9.168  Fair Play.

    (a) Name. The name of the viticultural area described in this 
section is ``Fair Play.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Fair Play viticultural area are three United States Geological 
Survey (U.S.G.S.) topographic maps (7.5 minute series; quadrangles). 
They are titled:
    (1) Omo Ranch, California, 1952 (photorevised 1973);
    (2) Aukum, California, 1952 (photorevised 1973);
    (3) Camino, California, 1952 (photorevised 1973).
    (c) Boundaries. The Fair Play viticultural area is located in El 
Dorado County, California and is located entirely within the existing 
Sierra Foothills and El Dorado viticultural areas. The boundary for Fair 
Play is as follows:
    (1) The beginning point of the boundary is the intersection of the 
Middle Fork of the Cosumnes River and the U.S.G.S. map section line 
between Sections 26 and 27, T. 9 N., R. 11 E. (``Aukum'' Quadrangle);
    (2) From the beginning point, the boundary follows northeast along 
the Middle Fork of the Cosumnes River until it meets an unnamed medium-
duty road (Mt. Aukum Road or El Dorado County Road E-16) just as it 
crosses onto the ``Camino'' Quadrangle map;
    (3) The boundary continues then northeast along Mt. Aukum Road to 
its intersection with Grizzly Flat Road at the town of Somerset 
(``Camino'' Quadrangle);
    (4) The boundary continues east along Grizzly Flat Road to its 
intersection with the 2200'' contour line.
    (5) The boundary continues along the 2200'' contour line north and 
then east until it intersects with the U.S.G.S. map section line between 
Sections 9 and 10, T. 9 N., R. 12 E. (``Camino'' Quadrangle):
    (6) The boundary then proceeds south along the U.S.G.S. map section 
line between Sections 9 and 10, T. 9 N., R. 12 E., to its intersection 
with the Middle Fork of the Cosumnes River (``Aukum'' Quadrangle);
    (7) The boundary then follows along the Middle Fork of the Cosumnes 
River in a southeasterly direction onto the ``Omo'' Quadrangle map and 
continues until it meets the range line between R. 12 E. and R. 13 E. 
(``Aukum'' Quadrangle and ``Omo Ranch'' Quadrangle);
    (8) The boundary then follows south along the range line between R. 
12 E. and R. 13 E. to its intersection with an unnamed medium-duty road 
in T. 8 N. (Omo Ranch Road) (``Omo Ranch'' Quadrangle);
    (9) The boundary then continues west in a straight line 
approximately 0.3 miles to the point where Cedar Creek intersects with 
the 3200-foot contour line, within Section 1, T. 8 N.,R. 12 E. (``Omo 
Ranch'' Quadrangle);
    (10) The boundary follows along Cedar Creek west and then southwest 
until it empties into Scott Creek (``Aukum'' Quadrangle);
    (11) The boundary then proceeds west along Scott Creek until it 
empties into the South Fork of the Cosumnes River (``Aukum'' 
Quadrangle);
    (12) The boundary continues west along the South Fork of the 
Cosumnes

[[Page 247]]

River to its intersection with the U.S.G.S. map section line between 
Sections 14 and 15, T. 8 N., R. 11 E. (``Aukum'' Quadrangle); and
    (13) Finally, the boundary follows north along the section line back 
to its intersection with the Middle Fork of the Cosumnes River, the 
point of the beginning. (``Aukum'' Quadrangle).

[T.D. ATF-440, 66 FR 11539, Feb. 26, 2001]



Sec.  9.169  Red Hills Lake County.

    (a) Name. The name of the viticultural area described in this 
section is ``Red Hills Lake County''.
    (b) Approved Map. The appropriate maps for determining the boundary 
of the Red Hills Lake County viticultural area are four 1:24,000 Scale 
U.S.G.S. topography maps. They are titled:
    (1) Clearlake Highlands Quadrangle, CA--Lake Co. 1958, photorevised 
1975;
    (2) Lower Lake Quadrangle, CA--Lake Co. 1958, photorevised 1975;
    (3) Whispering Pines Quadrangle, CA 1958, photoinspected 1975;
    (4) Kelseyville Quadrangle, CA--Lake Co. 1959, photorevised 1975.
    (c) Boundary. The Red Hills Lake County viticultural area is located 
entirely within the Clear Lake viticultural area of Lake County, 
California, on the southwestern shore of Clear Lake, between the towns 
of Lower Lake and Kelseyville, California. The Red Hills Lake County 
viticultural area boundary is as follows:
    (1) Beginning on the Clearlake Highlands map at the intersection of 
the Clear Lake shoreline, south of Slater Island, with the common 
boundary line between sections 3 and 4, T12N, R7W, proceed approximately 
0.1 miles due south along the common section line to its intersection 
with the 1,400-foot contour line, section 3, T12N, R7W (Clearlake 
Highlands Quadrangle); then
    (2) Proceed east-southeasterly along the meandering 1,400-foot 
contour line onto the Lower Lake map south of Anderson Flat, then 
reverse direction with the contour line and continue westerly, leaving 
the Lower Lake map, to the 1,400-foot contour line's intersection with 
Seigler Canyon Creek, section 10, T12N, R7W (Clearlake Highlands 
Quadrangle); then
    (3) Proceed generally west then south along Seigler Canyon Creek to 
its confluence with Perini Creek, section 9, R7W, T12N, and continue 
southerly about 1.2 miles along Perini Creek to its intersection with 
the 1,800-foot contour line, section 16, R7W, T12N (Clearlake Highlands 
Quadrangle); then
    (4) Continue southerly along the 1,800-foot contour line, crossing 
on to the Whispering Pines map, and, turning westerly, continue along 
the 1,800-foot contour line to its intersection with Copsey Creek, 
section 28, T12N, R7W (Whispering Pines Quadrangle); then
    (5) Proceed generally west-northwest along Copsey Creek to its 
headwaters in section 29, then continue straight west-southwesterly to 
the headwaters of Bad Creek at its intersection with the section 30 
eastern boundary line, and, from that point, proceed approximately 0.1 
miles due west to Big Canyon Road, section 30, T12N, R7W (Whispering 
Pines Quadrangle); then
    (6) Proceed about 1.1 miles north-northwesterly along Big Canyon 
Road, leaving the Whispering Pines map, to its intersection with Loch 
Lomond Road, northeast of Hoberg Airport, section 19, T12N, R7W 
(Clearlake Highlands Quadrangle); then
    (7) Proceed approximately 1.5 miles westerly then southerly along 
Loch Lomond Road, returning to the Whispering Pines map, passing through 
Seigler Springs, to the road's first intersection with the 2,640-foot 
contour line, northwest of Bonanza Springs, section 25, T12N, R8W 
(Whispering Pines Quadrangle); then
    (8) From that point, proceed about 1.9 miles northwesterly in a 
straight line, passing through the peak of Seigler Mountain, elevation 
3,692 feet, and returning to the Clearlake Highlands map, to the line's 
intersection with Salmina Road, section 23, T12N, R8W (Clearlake 
Highlands Quadrangle); then
    (9) Proceed 1.25 miles northwesterly along Salmina Road to its 
intersection with State Highway 175, section 15, T12N, R8W (Clearlake 
Highlands Quadrangle); then
    (10) Proceed south 0.6 miles on State Highway 175 to its 
intersection with the section 15 southern boundary line,

[[Page 248]]

T12N, R8W (Clearlake Highlands Quadrangle); then
    (11) From that point, proceed about 1 mile in a straight 
northwesterly line to the peak of Mt. Hannah, elevation 3,978 feet, 
section 16, T12N, R8W (Clearlake Highlands Quadrangle); then
    (12) From the peak of Mt. Hannah, proceed about 0.8 miles in a 
westerly straight line, crossing on to the Kelseyville map, to the 
intersection of the 3,000-foot contour line with the section 17 east 
boundary line, and continue for about 0.45 miles along the same line of 
direction to the 2,800-foot contour line east of Boggs Lake, section 17, 
T12N, R8W (Kelseyville Quadrangle); then
    (13) Proceed northerly and then westerly along the 2,800-foot 
contour line around Boggs Lake to the contour line's intersection with 
Harrington Flat Road, section 18, T12N, R8W (Kelseyville Quadrangle); 
then
    (14) Proceed about 0.4 miles northwesterly along Harrington Flat 
Road to its intersection with Bottle Rock Road, and continue north-
northwesterly along Bottle Rock Road for about 4 miles to its 
intersection with Cole Creek Road to the west and an unimproved road to 
the east, section 25, T13N, R9W (Kelseyville Quadrangle); then
    (15) Proceed east and then northeasterly on the unimproved road 
about 0.4 miles to its intersection with the east-west State Highway 29/
175 and a northerly unimproved road, section 25, T13N, R9W (Kelseyville 
Quadrangle); then
    (16) From that point, cross State Highway 29/175 and proceed about 1 
mile northwesterly along the unnamed, unimproved road to its 
intersection with an east-west unimproved road just north of the common 
boundary line between sections 24 and 25, then go west a short distance 
on that road to the point where the road turns north along the common 
boundary between sections 23 and 24; then
    (17) Proceed 0.5 miles north along the unimproved road marking the 
common boundary between sections 23 and 24 to the road's intersection 
with Wilkinson Road and continue straight north 0.25 miles on Wilkinson 
Road to its intersection with the 1,600-foot elevation line at the 
section 24 western boundary line, T13N, R9W (Kelseyville Quadrangle); 
then
    (18) Proceed about 1.35 miles straight easterly to the 2,493 
benchmark located along an unnamed light-duty road known locally as 
Konocti Road, section 19, T13N, R8W (Kelseyville Quadrangle); then
    (19) Proceed less than 0.2 miles easterly and then northerly along 
the unnamed light-duty road to its intersection with the 2,600-foot 
elevation line, section 19, T13N, R8W (Kelseyville Quadrangle); then
    (20) Proceed about 3.0 miles generally east along the 2,600-foot 
elevation line to its intersection, north of Bell Mine, with an unnamed 
intermittent stream near the section 20 east boundary line, T13N, R8W 
(Kelseyville Quadrangle); then
    (21) Proceed about 1.2 miles in a straight east-northeasterly line 
to the intersection of Konocti Bay Road and Soda Bay Road, and continue 
due east to the shore of Clear Lake, section 22, T13N, R8W (Clearlake 
Highlands Quadrangle); then
    (22) Proceed southeasterly along the shoreline of Clear Lake, 
returning to the point of beginning at the shoreline's intersection with 
the common boundary line between sections 3 and 4, T12N, R7W (Clearlake 
Highlands Quadrangle).

[T.D. TTB-15, 69 FR 41754, July 12, 2004]



Sec.  9.170  Long Island.

    (a) Name. The name of the viticultural area described in this 
section is ``Long Island.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Long Island viticultural area are three United States Geological 
Survey (U.S.G.S.) topographic maps (Scale: 1:250,000). They are titled:
    (1) ``New York, N.Y.; N.J.; Conn.,'' 1960 (revised 1979);
    (2) ``Hartford, Conn.; N.Y.; N.J.; Mass.,'' 1962 (revised 1975); and
    (3) ``Providence, R.I.; Mass.; Conn.; N.Y.,'' 1947 (revised 1969).
    (c) Boundaries. The Long Island viticultural area includes 
approximately 1,170 square miles or 749,146 acres and is made up of the 
counties of

[[Page 249]]

Nassau and Suffolk, New York, including all off shore islands in those 
counties.

[T.D. ATF-453, 66 FR 26791, May 15, 2001]



Sec.  9.171  San Bernabe.

    (a) Name. The name of the viticultural area described in this 
section is ``San Bernabe''.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the San Bernabe viticultural area are four 1:24,000 scale, USGS 
topographic maps. They are titled:
    (1) Thompson Canyon Quadrangle, California-Monterey County, 1949 
(photorevised 1984);
    (2) San Lucas Quadrangle, California-Monterey County, 1949 
(photorevised 1984);
    (3) Espinosa Canyon Quadrangle, California-Monterey County, 1949 
(photorevised 1979); and
    (4) Cosio Knob Quadrangle, California-Monterey County, 1949 
(photorevised 1984);
    (c) Boundary. The San Bernabe viticultural area is located in 
central Monterey County, south of King City, California, and west of 
U.S. Highway 101.
    (1) The point of beginning on the Thompson Canyon Quadrangle is 
benchmark 304, located one-half mile southwest of King City, along the 
Salinas River, in Township 20 South (T20S) and Range 8 East (R8E). 
Proceed southeast in a straight line for 2.35 miles to benchmark 304, at 
the intersection of a trail and the 300-foot contour line, between U.S. 
Highway 101 and the Salinas River, in T20S and R8E (San Lucas 
Quadrangle); then
    (2) Proceed southeast in a straight line for 2.9 miles to benchmark 
336, between U.S. Highway 101 and the Salinas River, in T20S and R8E 
(San Lucas Quadrangle); then
    (3) Proceed southeast in a straight line for 3 miles to benchmark 
340, between U.S. Highway 101 and the Salinas River, in T21S and R9E 
(San Lucas Quadrangle); then
    (4) Proceed south in a straight line for 0.8 mile to the 
intersection of the Salinas River and the Highway 198 bridge, in T21S 
and R9E (Espinosa Canyon Quadrangle); then
    (5) Proceed southwest along Highway 198 for 0.6 mile to its 
intersection with an unnamed light duty road, in T21S and R9E (Espinosa 
Canyon Quadrangle); then
    (6) Proceed northwest, followed by southwest, about 1.2 miles along 
the meandering, unnamed, light duty road to its intersection with the 
fork of an intermittent stream, in T21S and R8E (Espinosa Canyon 
Quadrangle); then
    (7) Proceed southwest in a straight line for 0.6 mile to the 595-
foot peak, Section 13, in T21S and R8E (Espinosa Canyon Quadrangle); 
then
    (8) Proceed southwest in a straight line for 1.3 miles to the 788-
foot peak, section 23, in T21S and R8E (Espinosa Canyon Quadrangle); 
then
    (9) Proceed southwest in a straight line for 0.7 mile to the 
intersection of the unimproved road and jeep trail, east of the 73-
degree longitudinal line, section 26, in T21S and R8E (Espinosa Canyon 
Quadrangle); then
    (10) Proceed northwest in a straight line for 3.2 miles to the 
northwest corner of section 16, in T21S and R8E (Espinosa Canyon 
Quadrangle); then
    (11) Proceed southwest in a straight line for 1.5 miles to the 
northeast corner of section 19, in T21S and R8E (Cosio Knob Quadrangle); 
then
    (12) Proceed southwest in a straight line for 2.2 miles to the 
southwest corner of section 24, in T21S and R7E (Cosio Knob Quadrangle); 
then
    (13) Proceed north in a straight line for 2 miles to the northwest 
corner of section 13, in T21S and R7E (Cosio Knob Quadrangle); then
    (14) Proceed east in a straight line for 1 mile to the northeast 
corner of section 13, in T21S and R7E (Cosio Knob Quadrangle); then
    (15) Proceed north in a straight line for 2 miles, along the R7E and 
R8E common boundary line, to the northwest corner of section 6, in T21S 
and R8E (Thompson Canyon Quadrangle); then
    (16) Proceed east in a straight line for 0.1 mile to the southwest 
corner of section 31 and continue diagonally to the northeast corner of 
section 31, in T20S and R8E (Thompson Canyon Quadrangle); then
    (17) Proceed west in a straight line for 2 miles to the southwest 
corner of

[[Page 250]]

section 25, in T20S and R7E (Thompson Canyon Quadrangle); then
    (18) Proceed due north in a straight line for 0.1 mile to the 
intersection with a light duty road, named Pine Canyon Road, in section 
25, and continue northeast along that road for 3.2 miles to its 
intersection with an unnamed secondary highway, north of benchmark 337, 
section 18, in T20S and R8E (Thompson Canyon Quadrangle); then
    (19) Proceed northwest along the unnamed secondary highway for 0.3 
mile to its intersection with U.S. Highway 101, in T20S and R8E 
(Thompson Canyon Quadrangle); then
    (20) Proceed northeast along U.S. Highway 101 for 0.7 mile to 
benchmark 304, returning to the point of beginning (Thompson Canyon 
Quadrangle).

[T.D. TTB-14, 69 FR 38836, June 29, 2004]



Sec.  9.172  West Elks.

    (a) Name. The name of the viticultural area described in this 
section is ``West Elks.''
    (b) Approved maps. The appropriate maps for determining the boundary 
of the West Elks viticultural area are four United States Geological 
Survey (U.S.G.S.) topographic maps (Scale: 1:250,000). They are titled:
    (1) Lazear Quadrangle (Colorado-Delta Co. 1955 (photorevised 1978));
    (2) Hotchkiss Quadrangle (Colorado-Delta Co. 1965 (photorevised 
1979));
    (3) Paonia Quadrangle (Colorado-Delta Co. 1965 (photorevised 1979); 
and
    (4) Bowie Quadrangle (Colorado-Delta Co. 1965 (photorevised 1978).
    (c) Boundaries. The West Elks viticultural area is located in 
eastern Delta County, Colorado. The beginning point is found on the 
``Bowie Quadrangle'' U.S.G.S. map at the \1/4\ corner common to Sections 
19 and 20, Township 13 South, Range 91 West (T. 13 S., R. 91 W.);
    (1) The boundary proceeds east following the center subdivision 
lines of Sections 20 and 21 to its intersection with Colorado Highway 
133;
    (2) Then northeasterly following Colorado Highway 133 to its 
intersection with the N-S center subdivision line of Section 14, T. 13 
S., R. 91 W., near Juanita Junction;
    (3) Then south following the center subdivision line to its 
intersection with the North Fork of the Gunnison River;
    (4) Then southwesterly following the North Fork of the Gunnison 
River to its intersection with the Stewart Ditch in the extreme southern 
part of Section 15, T. 13 S., R. 91 W.;
    (5) Then southwesterly following the Stewart Ditch to its 
intersection with the section line common to Sections 21 and 28, T. 13 
S., R. 91 W.;
    (6) Then east following the section line common to Sections 21 and 
28 to its intersection with the 6000 foot contour;
    (7) Then southerly following the 6000 foot contour to its second 
intersection with the section line common to Sections 3 and 4, T. 14 S., 
R. 91 W., located on the Paonia, Colo. U.S.G.S. map;
    (8) Then south following the section line common to Sections 3 and 4 
to its intersection with the 6200 foot contour;
    (9) Then southerly following the 6200 foot contour to its 
intersection with the section line common to Sections 16 and 17, T. 14 
S., R. 91 W.;
    (10) Then south following the section line common to Sections 16 and 
17 to the point of intersection of Sections 16, 17, 20 and 21;
    (11) Then west following the section line common to Sections 17 and 
20 to the point of intersection of Sections 17, 18, 19 and 20;
    (12) Then south following the section line common to Sections 19 and 
20 to the N1/16 corner common to Sections 19 and 20;
    (13) Then west following the subdivision line across Section 19 to 
the N1/16 corner common to Section 19, T. 14 S., R. 91 W. and Section 
24, T, 14 S., R. 92 W.;
    (14) Then south following the range line between R. 91 W. and R. 92 
W. to the point of intersection between Sections 19 and 30, T. 14 S., R. 
91 W. and Sections 24 and 25, T. 14 S., R. 92 W.;
    (15) Then west following the section line common to Sections 24 and 
25 to the point of intersection between Sections 23, 24, 25 and 26, 
located on the Hotchkiss, Colo. U.S.G.S. map;
    (16) Then south following the section line common to Sections 25 and 
26 to the point of intersection between Sections 25, 26, 35 and 36;

[[Page 251]]

    (17) Then west following the section lines common to Sections 26 and 
35 and Sections 27 and 34 to the point of intersection between Sections 
27, 28, 33 and 34;
    (18) Then south following the section line common to Sections 33 and 
34 to the point of intersection between Sections 33 and 34, T. 14 S., R. 
92 W. and Sections 3 and 4, T. 15 S., R. 92 W.;
    (19) Then west following the township line between T. 14 S. and T. 
15 S. approximately three miles to the point of intersection between 
Section 31, T. 14 S., R. 92 W., Section 6, T. 15 S., R. 92 W., Section 
1, T. 15 S., R. 93 W., and Section 36, T. 14 S., R. 93 W.;
    (20) Then south following the range line between R. 92 W. and R. 93 
W. to the point of intersection between Sections 6 and 7, T. 15 S., R. 
92 W. and Sections 1 and 12, T. 15 S., R. 93 W.;
    (21) Then west following the section lines common to Sections 1 and 
12 and Sections 2 and 11 to its intersection with the North Fork of the 
Gunnison River, located on the Lazear, Colo. U.S.G.S. map;
    (22) Then westerly following the North Fork of the Gunnison River to 
its intersection with Big Gulch in the extreme northeastern corner of 
Section 6, T. 15 S., R. 93 W.;
    (23) Then northerly following Big Gulch to its intersection with the 
section line common to Sections 17 and 18, T. 14 S., R. 93 W.;
    (24) Then north following the section lines common to Sections 17 
and 18, Sections 7 and 8, and Sections 5 and 6 to the point of 
intersection between Sections 5 and 6, T. 14 S., R. 93 W. and Sections 
31 and 32, T. 13 S., R. 93 W.;
    (25) Then east following the township line between T. 13 S. and T. 
14 S. approximately two miles to the point of intersection between 
Sections 3 and 4, T. 14 S., R. 93 W. and Sections 33 and 34, T. 13 S., 
R. 93 W.;
    (26) Then south following the section line common to Sections 3 and 
4 to the point of intersection between Sections 3, 4, 9 and 10;
    (27) Then east following the section lines for approximately 6 miles 
to the point of intersection between Sections 3, 4, 9 and 10, T. 14 S., 
R. 92 W., located on the Hotchkiss, Colo. U.S.G.S. map;
    (28) Then north following the section line common to Sections 3 and 
4 to the point of intersection between Sections 3 and 4, T. 14 S., R. 92 
W. and Sections 33 and 34, T. 13 S., R. 92 W.;
    (29) Then east following the township line between T. 13 S. and T. 
14 S. to its intersection with the Fire Mountain Canal in the 
southwestern corner of Section 35, T. 13 S., R. 92 W.;
    (30) Then northeasterly following the Fire Mountain Canal through 
the extreme northwest corner of the Paonia, Colo. U.S.G.S. map to its 
intersection with the section line common to Sections 29 and 30, T. 13 
S., R. 91 W., located on the Bowie, Colo. U.S.G.S. map;
    (31) Then north following the section lines common to Sections 29 
and 30 and Sections 19 and 20 to the 1/4 corner common to Sections 19 
and 20, the point of beginning.

[T.D. ATF-445, 66 FR 13430, Mar. 6, 2001]



Sec.  9.173  Rockpile.

    (a) Name. The name of the viticultural area described in this 
section is ``Rockpile''.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Rockpile viticultural area are four 1:24,000 Scale U.S.G.S. 
topographic maps. They are titled:
    (1) Warm Springs Dam Quadrangle, CA--Sonoma Co. 1978;
    (2) Cloverdale Quadrangle, CA 1975;
    (3) Tombs Creek Quadrangle, CA--Sonoma Co. 1978; and
    (4) Big Foot Mountain Quadrangle, CA 1991.
    (c) Boundary. The Rockpile viticultural area is located in 
northwestern Sonoma County, California. The boundary encircles the 
Rockpile Ranch area, located west of Lake Sonoma. The point of beginning 
is the intersection of Rockpile Road and the Section 15 east boundary 
line, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
    (1) Then proceed straight north to the 800-foot contour line, 
Section 10, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
    (2) Then proceed west along the 800-foot contour line through 
Sections 10, 9, 4, 5, and 32 to the Section 31 east boundary line, T 11 
N, R 11 W (Warm

[[Page 252]]

Springs Dam and Cloverdale Quadrangles);
    (3) Then proceed west along the 800-foot contour line in Section 31, 
following the line as it reverses from the west to the east direction, 
returning to the east boundary of Section 31, T 11 N, R 11 W (Cloverdale 
and Big Foot Mountain Quadrangles);
    (4) Then proceed along the 800-foot contour line east through 
Section 32 and northwest through Sections 33, 32, 29, 30, 25, 24, 23, 
14, 15, 22, 21, and 20 to the east boundary line of Section 19, T 11 N, 
R 12 W (Cloverdale and Big Foot Mountain Quadrangles);
    (5) Then proceed west, north, south and east along the meandering 
800-foot contour line, in a loop, crossing the southwest and northwest 
headwaters of Galloway Creek, and returning to the east boundary line of 
Section 19, T 11 N, R 12 W (Big Foot Mountain Quadrangle);
    (6) Then proceed straight north to the Mendocino-Sonoma county 
boundary line, then follow the county line straight west to the R 13 and 
12 W line, and continue straight south to the 1,600-foot contour line in 
the Section 19 southwest corner, T 11 N, R 12 W (Big Foot Mountain 
Quadrangle);
    (7) Then proceed southeast along the meandering 1,600-foot contour 
line to the Section 29 west boundary line, and continue straight south 
to the T 11 and 10 N boundary line, R 12 W (Big Foot Mountain 
Quadrangle);
    (8) Then proceed east along the T 11 and 10 N boundary line to the 
Section 1 west boundary line, R 12 W (Big Foot Mountain Quadrangle);
    (9) Then proceed south along the Section 1 west boundary line, 
turning east at the Section 1 south boundary and continue east to the 
northwest corner of Section 8, T 10 N, R 11 W (Big Foot Mountain, Tombs 
Creek and Warm Springs Dam Quadrangles);
    (10) Then proceed south along the west boundary of Section 8, 
turning east at its southwest corner, and continue east to the 876-foot 
elevation marker, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
    (11) Then proceed straight south approximately 2,000 feet to the 
800-foot contour line, T 10 N, R 11 W (Warm Springs Dam Quadrangle);
    (12) Then follow the 800-foot contour line as it meanders west, 
southeast, southwest, and east to the Section 14 west boundary, and then 
straight north, returning to the point of beginning at Rockpile Road, T 
10 N, R 11 W (Warm Springs Dam Quadrangle).

[T.D. ATF-473, 67 FR 9193, Feb. 28, 2002]



Sec.  9.174  Yadkin Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Yadkin Valley''.
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Yadkin Valley viticultural area are two United States 
Geological Survey (USGS) topographic maps, scale 1:250,000:
    (1) Winston-Salem, N.C.; VA; Tenn. (1953, Limited Revision 1962), 
and,
    (2) Charlotte, North Carolina; South Carolina. (1953, Revised 1974).
    (c) Boundaries. The Yadkin Valley viticultural area is located in 
the State of North Carolina within Wilkes, Surry, Yadkin and portions of 
Stokes, Forsyth, Davidson, and Davie Counties. The boundaries are as 
follows:
    (1) On the Winston-Salem, N.C.; VA; Tenn. map, the beginning point 
is 3.6 miles west of the northeast corner of Surry County on the Surry 
County and North Carolina/Virginia state line at the crest of Slate 
Mountain. From the beginning point, proceed southeast in a straight line 
approximately 6.5 miles to the intersection of the Surry/Stokes County 
line and State Route 89;
    (2) Then bear southeast in a straight line for approximately 9 miles 
to the line's intersection with State Route 66 in the village of Gap 
(between Sauratown and Hanging Rock Mountains);
    (3) Then bear south, following State Route 66 for approximately 9 
miles to intersection of State Route 66 and U.S. Route 52;
    (4) Then, for approximately 9.5 miles, follow U.S. Route 52 south 
through Rural Hall and Stanelyville, to the intersection of the Southern 
Railway track and U.S. Route 52;
    (5) Then bear southerly for approximately 2 miles, following the 
Southern Railway track to where it intersects with U.S. Route 52 in 
Winston-Salem;

[[Page 253]]

    (6) Then follow U.S. Route 52 south for approximately 19.5 miles, 
crossing on to the Charlotte, North Carolina; South Carolina map, to its 
intersection with Interstate 85 at Lexington;
    (7) Then, follow Interstate 85 southwest for approximately 11 miles 
to the Yadkin River and bear northwest approximately 4.5 miles along the 
Yadkin River to the mouth of the South Yadkin River;
    (8) Follow the South Yadkin River upstream in a generally northwest 
direction approximately 3.5 miles to its intersection with U.S. Route 
601;
    (9) Then continue in a northerly direction, following U.S. Route 601 
through the town of Mocksville, onto the Winston-Salem, N.C.; VA; Tenn. 
map approximately 20 miles to the Davie/Yadkin County line;
    (10) Then, following a series of county lines, continue west along 
the Yadkin/Davie County line to the Yadkin/Davie/Iredell County line 
intersection, then follow the Yadkin/Iredell County line to the Yadkin/
Iredell/Wilkes County line intersection, then follow the Iredell/Wilkes 
County line to the Iredell/Wilkes/Alexander County line intersection, 
then follow the Wilkes/Alexander County line to the Wilkes/Alexander/
Caldwell County line intersection;
    (11) Then bear northwesterly along the Wilkes/Caldwell County line, 
to the Wilkes/Caldwell/Watauga County intersection;
    (12) Then bear northerly along the Wilkes/Watauga County line to the 
intersection of the Wilkes/Watauga/Ashe County lines;
    (13) Then bear generally northeasterly along the Wilkes/Ashe County 
line, to the Wilkes/Ashe/Alleghany County line intersection;
    (14) Then bear generally easterly along the Wilkes/Alleghany County 
line to the Wilkes/Alleghany/Surry County line intersection;
    (15) Then bear northerly along Alleghany/Surry County line to the 
intersection of the Alleghany/Surry County line and the North Carolina/
Virginia border;
    (16) Then bear east along the North Carolina/Virginia State line 
approximately 22.5 miles, returning to the point of beginning 3.6 miles 
west of the northeast corner of Surry County.

[T.D. ATF-485, 67 FR 72839, Dec. 9, 2002]



Sec.  9.175  Dos Rios.

    (a) Name. The name of the viticultural area described in this 
section is ``Dos Rios''. For purposes of part 4 of this chapter, ``Dos 
Rios'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Dos Rios viticultural area are four United States 
Geological Survey 1:24,000 scale topographic maps. They are titled:
    (1) Dos Rios, California--Mendocino County, 1967 edition, revised 
1994;
    (2) Laytonville, California--Mendocino County, 1967 edition, revised 
1994;
    (3) Iron Peak, California--Mendocino County, 1967 edition, revised 
1994; and
    (4) Covelo West, California--Mendocino County, 1967 edition, 
photoinspected 1973.
    (c) Boundary. The Dos Rios viticultural area is located in northern 
Mendocino County, California, at the confluence of the Eel River and the 
Middle Fork of the Eel River. The area's boundaries are defined as 
follows--
    (1) Beginning in the northwestern quarter of the Dos Rios map in 
section 32, T22N, R13W, at the intersection of the 2,000-foot contour 
line and Poonkinny Road, proceed southerly and then easterly along the 
meandering 2,000-foot contour line to its intersection with the eastern 
boundary of section 2, T21N, R13W, immediately south of State Route 162 
(Dos Rios Quadrangle); then
    (2) Proceed straight south along the section line, crossing the 
Middle Fork of the Eel River, to the southeast corner of section 11, 
T21N, R13W (Dos Rios Quadrangle); then
    (3) Proceed 0.9 mile straight west along the southern boundary of 
section 11 to its intersection with the 2,000-foot elevation line, T21N, 
R13W (Dos Rios Quadrangle); then
    (4) Proceed northerly then westerly along the meandering 2,000-foot 
contour line, crossing Big Water Canyon, Doghouse Creek, and Eastman 
Creek, to the contour line's intersection with

[[Page 254]]

the southern boundary of section 17, T21N, R13W (Dos Rios Quadrangle); 
then
    (5) Proceed 2.1 miles straight west along the section line, crossing 
the Eel River, to the section line's intersection with the 2,000-foot 
contour line along the southern boundary of section 18, T21N, R13W (Dos 
Rios Quadrangle); then
    (6) Proceed northerly along the meandering 2,000-foot contour line, 
crossing between the Dos Rios and Laytonville maps (passing around the 
Sims 2208 benchmark near the southeast corner of section 36, T22N, 
R14W), and, returning to the Laytonville map, continue westerly to the 
contour line's intersection with the southwest corner of section 36, 
T22N, R14W, at Windy Point (Laytonville Quadrangle); then
    (7) Proceed 1.2 miles straight north along the section line to its 
intersection with the 2,000-foot elevation line, section 25, T22N, R14W 
(Laytonville Quadrangle); then
    (8) Proceed northerly along the meandering 2,000-foot elevation, 
crossing between the Laytonville and Iron Peak maps, and, returning to 
the Iron Peak map, continue along the contour line to its intersection 
with the western boundary of section 14 immediately south of an unnamed 
unimproved road, T22N, R14W (Iron Peak Quadrangle); then
    (9) Proceed straight north along the section line to the southeast 
corner of section 3, T22N, R14W (Iron Peak Quadrangle); then
    (10) Proceed straight west along the section line to the southwest 
corner of section 3, T22N, R14W (Iron Peak Quadrangle); then
    (11) Proceed straight north along the section line to the northwest 
corner of section 3, T22N, R14W (Iron Peak Quadrangle); then
    (12) Proceed straight east along the section line, crossing the Eel 
River, to the northeast corner of section 2, which coincides with the 
Round Valley Indian Reservation's southern boundary, T22N, R14W (Iron 
Peak Quadrangle); then
    (13) Proceed straight south along the section line to the southeast 
corner of section 2, T22N, R14W (Iron Peak Quadrangle); then
    (14) Proceed 0.3 mile straight east to the section line's 
intersection with the 2,000-foot elevation line along the northern 
boundary of section 12, T22N, R14W, west of Eberle Ridge, (Iron Peak 
Quadrangle); and
    (15) Proceed generally southeast along the meandering 2,000-foot 
elevation, crossing onto the Covelo West map and continuing southerly 
along the 2,000-foot contour line from Stoner Creek in section 18, T22N, 
R13W, and, returning to the Dos Rios map, continue southeasterly along 
the 2,000-foot contour line (crossing Goforth and Poonkinny Creeks), to 
the beginning point at the contour line's intersection with Poonkinny 
Road.

[T.D. TTB-34, 70 FR 59995, Oct. 14, 2005]



Sec.  9.176  Capay Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Capay Valley''.
    (b) Approved maps. The appropriate map for determining the boundary 
of the Capay Valley viticultural area is the United States Geological 
Survey (U.S.G.S.) topographic map titled: 30X60 Minute Quadrangle 
(Healdsburg, California 1972) (Scale: 1:100,000).
    (c) Boundaries. The Capay Valley viticultural area is located in 
Yolo County, California. The beginning point is the junction of the 
Yolo, Napa, and Lake County lines.
    (1) From the beginning point, proceed north then east along the 
Yolo-Lake County line;
    (2) At the junction of the Yolo, Lake, and Colusa County lines, 
continue east along the Yolo-Colusa County line to its junction with the 
boundary between ranges R4W and R3W;
    (3) Then south along the R4W and R3W boundary to its junction with 
the 250 meter contour line;
    (4) Proceed generally southeast along the meandering 250 meter 
contour line to its junction with the T10N-T11N section line;
    (5) Continue east along the T10N-T11N section line to the unnamed 
north-south secondary highway known locally as County Road 85;
    (6) Then south along County Road 85, crossing Cache Creek, to its 
intersection with State Highway 16;

[[Page 255]]

    (7) Proceed east on Highway 16 to its junction with the unnamed 
north-south light duty road known locally as County Road 85B;
    (8) Then south on County Road 85B to its junction with the unnamed 
east-west light duty road known locally as County Road 23;
    (9) Proceed west on County Road 23 for approximately 500 feet to an 
unnamed light duty road known locally as County Road 85;
    (10) Proceed south on County Road 85 until the road ends and 
continue south in a straight line to the T9N-T10N section line;
    (11) Then west on the T9N-T10N section line to the Napa-Yolo County 
line;
    (12) Continue northwest following the Napa-Yolo county line and 
return to the starting point.

[T.D. ATF-486, 67 FR 77924, Dec. 20, 2002]



Sec.  9.177  Alexandria Lakes.

    (a) Name. The name of the viticultural area described in this 
section is ``Alexandria Lakes''.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Alexandria Lakes viticultural area are four United States 
Geological Survey 1:24,000 scale topographic maps. They are titled:
    (1) Alexandria West, Minn., 1966, revised 1994.
    (2) Alexandria East, Minn., 1966, revised 1994.
    (3) Lake Miltona East, Minn., 1969.
    (4) Lake Miltona West, Minn., 1969.
    (c) Boundary. The Alexandria Lakes viticultural area is located in 
Douglas County, Minnesota. The boundary of the Alexandria Lakes 
viticultural area is as described below:
    (1) The beginning point is on the Alexandria West, Minn. map between 
Lake Carlos and Lake Darling at benchmark (BM) 1366, which is an 
unmarked bridge on County Road 11, known as the Carlos-Darling Bridge. 
From this point the boundary line continues--
    (2) Along the Carlos-Darling bridge and then northeasterly along the 
western shore of Lake Carlos on to the Alexandria East, Minn. map; then
    (3) Along the shoreline until the point where the Lake Carlos 
shoreline parallels an unlabeled road known as County Road 38; then
    (4) North along County Road 38 until it intersects with an unlabeled 
road known as County Road 62; then
    (5) North along County Road 62 on to the Lake Miltona, East, Minn. 
map and then on to an unlabeled road known as Buckskin Road; then
    (6) North on Buckskin Road to the point at BM 1411; then
    (7) North from BM 1411 in a straight line to the south shoreline of 
Lake Miltona; then
    (8) Generally west along the south shoreline of Lake Miltona onto 
the Lake Miltona West, Minn. map until the southern shoreline parallels 
an unlabeled road known as Krohnfeldt Drive; then
    (9) South and then west along Krohnfeldt Drive until it intersects 
with an unlabeled road known as County Road 34; then
    (10) South along County Road 34 until the point where County Road 34 
runs parallel to Lake Ida's eastern shoreline; then
    (11) South along Lake Ida's eastern shoreline, then onto the 
Alexandria West, Minn. map to the point where two unlabeled roads known 
as Burkey's Lane and Sunset Strip Road intersect; then
    (12) South along Sunset Strip Road to the point where it intersects 
with an unlabeled road known as County Road 104; then
    (13) Generally east along County Road 104 until it intersects with 
an unlabeled road known as County Road 34; then
    (14) East along County Road 34 until it intersects with an unlabeled 
road known as County Road 11; then
    (15) East along County Road 11 to the beginning point for the area 
at BM 1366, at the Carlos-Darling Bridge.

[T.D. TTB-29, 70 FR 38003, July 1, 2005]



Sec.  9.178  Columbia Gorge.

    (a) Name. The name of the viticultural area described in this 
section is ``Columbia Gorge''.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the Columbia Gorge viticultural area are 10 United States Geological 
Survey,

[[Page 256]]

1:24,000 scale, topographic maps. They are--
    (1) Hood River Quadrangle, Oregon--Washington, 1994;
    (2) Northwestern Lake Quadrangle, Washington, 1983;
    (3) Husum Quadrangle, Washington--Klickitat Co., 1994;
    (4) Appleton Quadrangle, Washington--Klickitat Co., 1994;
    (5) Lyle Quadrangle, Washington--Oregon, 1994;
    (6) Brown Creek Quadrangle, Oregon, 1994;
    (7) Ketchum Reservoir Quadrangle, Oregon, 1994;
    (8) Parkdale Quadrangle, Oregon--Hood River Co., 1994;
    (9) Dee Quadrangle, Oregon--Hood River Co., 1994; and
    (10) Mt. Defiance Quadrangle, Oregon--Washington, 1994.
    (c) Boundary. The Columbia Gorge viticultural area is located in 
Hood River and Wasco Counties, Oregon, and Skamania and Klickitat 
Counties, Washington. The area's point of beginning is on the Hood River 
map, at the intersection of Washington State Highway 14 and the R9E-R10E 
line, close to Tunnel 4, on the north bank of the Columbia River. From 
this point, the boundary line--
    (1) Goes 1.5 miles straight north along the R9E-R10E line to the 
northwest corner of section 19, T3N, R10E (Hood River Quadrangle);
    (2) Continues 2 miles straight east along the section line to the 
northeast corner of section 20, T3N, R10E (Hood River Quadrangle);
    (3) Goes 4.1 miles straight north along the section line, crossing 
onto the Northwestern Lake map, to the northwest corner of section 33, 
T4N, R10E (Northwestern Lake Quadrangle);
    (4) Continues 1 mile straight east on the section line to the 
northeast corner of section 33, T4N, R10E (Northwestern Lake 
Quadrangle);
    (5) Goes 1 mile straight north on the section line to the northwest 
corner of section 27, T4N, R10E (Northwestern Lake Quadrangle);
    (6) Continues 1 mile straight east on the section line to the 
northeast corner of section 27, T4N, R10E (Northwestern Lake 
Quadrangle);
    (7) Goes 3.8 miles north on the section line to its intersection 
with the T4N-T5N line, R10E (Northwestern Lake Quadrangle);
    (8) Continues 4 miles straight east on the T4N-T5N line, crossing 
onto the Husum map, to the northeast corner of section 5, R11E (Husum 
Quadrangle);
    (9) Goes 2 miles straight south on the section line to the southwest 
corner of section 9, T4N, R11E (Husum Quadrangle);
    (10) Continues 2 miles straight east on the section line to the 
northeast corner of section 15, T4N, R11E (Husum Quadrangle);
    (11) Goes 3 miles straight south on the section line to the 
southwest corner of section 26, T4N, R11E (Husum Quadrangle);
    (12) Continues 2 miles straight east on the section line, crossing 
onto the Appleton map, to the R11E-R12E line (Appleton Quadrangle);
    (13) Goes 1.25 miles straight south on the R11E-R12E line to its 
intersection with the 2,000-foot contour line near the northeast corner 
of section 1, T3N (Appleton Quadrangle);
    (14) Continues 11 miles south along the meandering 2,000-foot 
contour line through sections 1 and 12; then generally east through 
sections 7, 18, 8, and 9 to section 10; then generally north, weaving 
back and forth between sections 3, 4, 33, and 34; then south to section 
3, until the 2,000-foot contour line first intersects the section line 
between sections 2 and 3, near a creek and an unnamed light duty road, 
T3N, R12E (Appleton Quadrangle);
    (15) Goes 5.1 miles straight south on the section line, crossing 
onto the Lyle map, and continuing south until it intersects with the 
Klickitat River along the section 34 east boundary line, T3N, R12E (Lyle 
Quadrangle);
    (16) Continues 0.9 mile generally southwest along the Klickitat 
River until it joins the Columbia River, and then continues 0.4 mile 
southwest in a straight line to the Washington-Oregon State line in the 
center of the Columbia River, section 3, T2N, R12E (Lyle Quadrangle);
    (17) Follows the Oregon-Washington state line 2.4 miles generally 
southeast

[[Page 257]]

until it intersects with a northward extension of the R12E-R13E line, 
T2N (Lyle Quadrangle);
    (18) Goes 11 miles straight south on the R12E-R13E line, crossing 
onto the Brown Creek map, to its intersection with the T1N-T1S Base Line 
at the southeast corner of section 36 (Brown Creek Quadrangle);
    (19) Continues 6.1 miles straight west along the T1N-T1S Base Line, 
crossing onto the Ketchum Reservoir map, to its intersection with the 
R11E-R12E line at the southeast corner of section 36 (Ketchum Reservoir 
Quadrangle);
    (20) Goes 6 miles straight north on the R11E-R12E line to its 
intersection with the T1N-T2N line at the northeast corner of section 1 
(Ketchum Reservoir Quadrangle);
    (21) Continues 6.2 miles straight west on the T1N-T2N line, crossing 
onto the Parkdale map, to its intersection with the R10E-R11E line at 
the southeast corner of section 36 (Parkdale Quadrangle);
    (22) Goes 1.85 miles south on the R10E-R11E line to its intersection 
with the 2,000-foot contour line near the southeast corner of section 
12, T1N, R10E (Parkdale Quadrangle);
    (23) Continues 10.1 miles along the meandering 2,000-foot contour 
line generally southwest through sections 12, 13, 14, 23, 22, 26, 27, 
and 34 in T1N, and section 4 in T1S, to its intersection with the 
section 4 south boundary line, T1S, R10E (Parkdale Quadrangle);
    (24) Goes 2.4 miles straight west along the section line to its 
intersection with the R9E-R10E line, just west of Trout Creek, at the 
southwest corner of section 6, T1S (Parkdale Quadrangle);
    (25) Continues 1 mile straight north along the R9E-R10E line to its 
intersection with the T1S-T1N Base Line at the northwest corner of 
section 6 (Parkdale Quadrangle);
    (26) Goes 1.3 miles straight west along the T1S-T1N Base Line, 
crossing onto the Dee map, to its intersection with the R9E-R10E line at 
the southwest corner of section 21 (Dee Quadrangle);
    (27) Continues 3.1 miles north along the R9E-R10E line to the 
southeast corner of section 13, T1N (Dee Quadrangle);
    (28) Goes 2 miles west along the section line to the southwest 
corner of section 14, T1N, R9E (Dee Quadrangle);
    (29) Continues 1 mile straight north along the section line to the 
northwest corner of section 14, T1N, R9E (Dee Quadrangle);
    (30) Goes 1 mile east along the section line to the northeast corner 
of section 14, T1N, R9E (Dee Quadrangle);
    (31) Continues 2 miles straight north along the section line until 
its intersection with the T1N-T2N line, R9E (Dee Quadrangle);
    (32) Goes 1 mile straight east along the T1N-T2N line to the 
southeast corner of section 36, R9E (Dee Quadrangle);
    (33) Continues 6.75 miles straight north along the R9E-R10E line, 
crossing onto the Mt. Defiance map, to the Washington-Oregon State line 
in the Columbia River, T3N (Mt. Defiance Quadrangle);
    (34) Goes 1 mile straight east-northeast along the State line, 
crossing onto the Hood River map, to its intersection with a southward 
extension of the R9E-R10E line, T3N (Hood River Quadrangle); and
    (35) Continues 0.6 mile north along the R9E-R10E extension, 
returning to the point of beginning at its intersection with the 
Washington State Highway 14, close to Tunnel 4, on the north bank of the 
Columbia River (Hood River Quadrangle).

[T.D. TTB-11, 69 FR 25833, May 10, 2004]



Sec.  9.179  Southern Oregon.

    (a) Name. The name of the viticultural area described in this 
section is ``Southern Oregon''.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Southern Oregon viticultural area are two 1:250,000 scale, USGS 
topography maps. They are titled:
    (1) Roseburg, Oregon--1958, revised 1970; and
    (2) Medford, Oregon; California--1955, revised 1976.
    (c) Boundary. The Southern Oregon viticultural area is located 
entirely within Douglas, Jackson, and Josephine Counties, Oregon. The 
beginning point is on the Roseburg map at the intersection of Interstate 
Highway 5

[[Page 258]]

and the Douglas-Lane County line, T21S, R4W.
    (1) From the beginning point, proceed north along the Douglas-Lane 
County line approximately 0.5 miles to the 1,000-foot contour line; then
    (2) Proceed northwest along the 1,000-foot contour line to the 
Douglas-Lane County line; then west along the County line approximately 
2.5 miles, returning to the 1,000-foot contour line; then in a generally 
westerly direction along the 1,000-foot contour line to its first 
intersection with the R9W-R10W range line; then
    (3) Proceed along the 1,000-foot contour line, crossing the R9W-R10W 
range line four more times; then proceed south along the R9W-R10W range 
line approximately 2.75 miles to the center of the Umpqua River; then 
along a straight line in an easterly direction approximately 6.25 miles 
to the intersection of range line R8W-R9W with the center of the Umpqua 
River; then south along range line R8W-R9W approximately 3.5 miles to 
its intersection with township line T22S-T23S; then
    (4) Proceed southeast approximately 8.5 miles along a straight line 
to the intersection of township line T23S-T24S with range line R7W-R8W; 
then south along the R7W-R8W range line approximately 8 miles to its 
intersection with the 1,000-foot contour line; then in a southeasterly 
direction in a straight line approximately 3.5 miles toward the 
intersection of township line T25S-T26S with range line R6W-R7W, but 
stopping short at the 1,000-foot contour line; then
    (5) Proceed in a southerly direction along the 1,000-foot contour 
line to the intersection of township line T27S-T28S with range line R7W-
R8W; then in a southwesterly direction in a straight line approximately 
3.5 miles toward the intersection of township line T28S-T29S with range 
line R8W-R9W, but stopping short and returning to the 1,000-foot contour 
line near the center of T28S, R8W; then generally south along the 1,000-
foot contour line to its intersection with township line T29S-T30S; then
    (6) Proceed east along township line T29S-T30S approximately 0.33 
mile, rejoining the 1,000-foot contour line; then in a northerly and 
eventually a southerly direction along the 1,000-foot contour line, 
passing onto the Medford map, and past the town of Riddle to range line 
R6W-R7W; then south along the R6W-R7W range line approximately 15 miles 
to the Josephine-Douglas County line; then in a general northeasterly 
direction along the County line to its intersection with Interstate 5 
approximately 1.3 miles south of Cow Creek ; then
    (7) Proceed southerly and southwesterly along southbound Interstate 
5 to its junction with Wolf Creek and then north about 500 feet to the 
Southern Pacific Railway line; then westerly and southerly out of the 
town of Wolf Creek along the Southern Pacific Railway line to the rail 
line's intersection with Hugo Road at the town of Hugo; then 
southwesterly along Hugo Road to the point where Hugo Road crosses 
Jumpoff Joe Creek; then westerly and downstream along that creek to the 
intersection of Jumpoff Joe Creek and the Rogue River; then
    (8) Proceed northwesterly and downstream along the Rogue River to 
the first point where the Wild and Scenic Rogue River designated area 
touches the easterly boundary of the Siskiyou National Forest, just 
south of Galice; then
    (9) Proceed in a generally southwesterly direction (with many 
diversions) along the easterly border of the Siskiyou National Forest to 
the 42 degree 0 minute north latitude line; then easterly along the 
latitude line to the point where the Siskiyou National Forest boundary 
again crosses into Oregon, approximately 1 mile east of U.S. Highway 
199; then
    (10) Proceed in a generally northeasterly direction and then in a 
southeasterly direction (with many diversions) along the northern 
boundary of the Siskiyou National Forest to the point where the Siskiyou 
National Forest touches the Rogue River National Forest at Big Sugarloaf 
Peak; then
    (11) Proceed in a generally easterly direction (with many 
diversions) along the northern border of the Rogue River National Forest 
to the point where the Rogue River National Forest intersects with Slide 
Creek approximately 6 miles southeast of Ashland; then

[[Page 259]]

    (12) Proceed southeasterly and northeasterly along Slide Creek to 
the point where the creek intersects State Route 273; then northwesterly 
along State Route 273 to the point where it intersects State Highway 66; 
then proceed in an easterly direction approximately 5 miles along State 
Route 66 to the east line of T39S, R2E; then
    (13) Proceed north along the east line of T39S, R2E to the northeast 
corner of T39S, R2E; then westerly approximately 5 miles along the north 
line of T39S, R2E, to the 2,600 foot contour line; then in a northerly 
direction following the 2,600 foot counter line across Walker Creek and 
then in a southwesterly direction to the point where the 2,600 foot 
contour line touches the east line of T38S, R1E; then
    (14) Proceed northerly along the east line of T38S, R1E, to the 
northeast corner of T38S, R1E; then
    (15) Proceed westerly along the north line of T38S, R1E, to the 
northwest corner of T38S, R1E; then
    (16) Proceed northerly along the west line of T37S, R1E, to the 
northwest corner of T37S, R1E; then
    (17) Proceed easterly along the north lines of T37S, R1E, and T37S, 
R2E, to the southeast corner of T36S, R2E; then
    (18) Proceed northerly along the east line of T36S, R2E, to the 
northeast corner of T36S, R2E; then
    (19) Proceed westerly along the north line of T36S, R2E, to the 
northwest comer of T36S, R2E; then
    (20) Proceed northerly along the east line of T35S, R1E, to the 
northeast comer of T35S, R1E; then
    (21) Proceed westerly along the north line of T35S, R1E, to the 
northwest corner of T35S, R1E; then
    (22) Proceed northerly along the east line of T34S, R1W, to the 
northeast corner of T34S, R1W; then
    (23) Proceed westerly along the common boundary line of T34S-T33S to 
the northwest corner of T34S, R5W; then
    (24) Proceed northerly along the west line of T33S, R5W, to the 
Josephine-Douglas County line; thence in a generally east, northeasterly 
direction along the county line to the intersection of R3W-R4W range 
line; thence north along the R3W-R4W range line approximately 11.8 miles 
to the 1,000-foot contour line just south of State Route 227 southeast 
of the town of Days Creek; then
    (25) Proceed in an easterly, westerly, and eventually northerly 
along the 1,000-foot contour line, crossing to the Roseburg map from the 
Medford map, to a point approximately 3.5 miles east of Dillard, where 
the contour line crosses Interstate 5 on the Roseburg map; thence 
northeast along Interstate 5 approximately 0.25 mile, returning to the 
1,000-foot contour line; thence in a generally northeasterly, 
southeasterly, northwesterly, and eventually northeasterly along the 
1,000-foot contour line past the town of Idleyld Park to the R2W-R3W 
range line; then
    (26) Proceed north along range line R2W-R3W approximately 1.75 miles 
to the T25S-T26S township line; thence west along township line T25S-
T26S approximately .25 mile, returning to the 1,000-foot contour line; 
thence in a generally westerly and then a northerly direction along the 
1,000-foot contour line toward the valley of Calapooya Creek to the R3W-
R4W range line; thence north along range line R3W-R4W approximately 2.25 
miles, back to the 1,000-foot contour line; then
    (27) Proceed in a westerly and then a northerly direction along the 
1,000-foot contour line to the T23S-T24S township line, then east along 
the T23S-T24S township line approximately 2.75 miles to the 1,000-foot 
contour line; then in a northerly direction along the 1,000-foot contour 
line to its intersection with the Douglas-Lane County line; thence north 
along the county line approximately 0.75 mile to the beginning point.

[T.D. TTB-19, 69 FR 70892, Dec. 8, 2004]



Sec.  9.180  Dundee Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Dundee Hills''.
    (b) Approved maps. The appropriate maps for determining the 
boundaries of the Dundee Hills viticultural area are three United States 
Geological Survey (USGS) 1:24,000 scale maps. They are titled:
    (1) Dundee Quadrangle, Oregon, 1956, revised 1993;
    (2) Newberg Quadrangle, Oregon, 1961, photorevised 1985; and

[[Page 260]]

    (3) Dayton Quadrangle, Oregon, 1957, revised 1992.
    (c) Boundary. The Dundee Hills viticultural area is located in 
Yamhill County, Oregon, near the town of Newberg, and is entirely within 
the Willamette Valley viticultural area. The boundary of the Dundee 
Hills viticultural area is as described below:
    (1) The beginning point is on the Dundee map at the intersection of 
the 200-foot contour line with Kuehne Road at the common boundary line 
of sections 47 and 48, T3S, R3W;
    (2) From the beginning point, proceed east then south along the 
meandering 200-foot contour line, crossing over to and back off the 
Newberg map, and then cutting diagonally southwest through the town of 
Dundee to the 200-foot contour line's intersection with Hess Creek, 
section 34, T3S, R3W (Dundee Quadrangle); then
    (3) Proceed south, then west, and then northeast, along the 
meandering 200-foot contour line, twice crossing over to and back off 
the Dayton map, to the contour line's intersection with Abbey Road after 
the line passes a quarry and crosses the two forks of Millican Creek in 
section 52, T3S, R3W (Dundee Quadrangle); then
    (4) Proceed generally north on Abbey Road to Kuehne Road and then 
follow Kuehne Road northeasterly to the beginning point.

[T.D. TTB-18, 69 FR 69527, Nov. 30, 2004]



Sec.  9.181  McMinnville.

    (a) Name. The name of the viticultural area described in this 
section is ``McMinnville.''
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the McMinnville viticultural area are five United States 
Geological Survey (USGS) 1:24,000 scale topographic maps titled:
    (1) McMinnville, Oregon, 1957, revised 1992;
    (2) Muddy Valley, Oregon, 1979, revised 1992;
    (3) Stony Mountain, Oregon, 1979, revised 1992;
    (4) Sheridan, Oregon, 1956, revised 1992; and
    (5) Ballston, Oregon, 1956, revised 1992.
    (c) Boundary. The McMinnville viticultural area is located in 
Yamhill County, Oregon, and is entirely within the Willamette Valley 
viticultural area. The boundary of the McMinnville viticultural area is 
as described below--
    (1) The beginning point is on the McMinnville, Oregon, map where the 
200-foot contour line intersects the common boundary between section 13, 
T4S, R5W, and section 18, T4S, R4W. From this point follow the 
meandering 200-foot contour line westerly for about 2 miles to its 
intersection with Baker Creek Road in section 54, T4W, R5W, on the Muddy 
Valley map;
    (2) Then follow Baker Creek Road west about 2 miles through Happy 
Valley to the road's intersection with Power House Hill Road in section 
50, T4S, R5W (Muddy Valley map);
    (3) Proceed southwest on Power House Hill Road for about 1.4 miles 
to its intersection with Peavine Road in section 17, T4S, R5W (Muddy 
Valley map);
    (4) Follow Peavine Road west and then northwest about 1.5 miles to 
its intersection with Gill Creek in section 18, T4S, R5W (Muddy Valley 
map);
    (5) Follow Gill Creek southerly (downstream) for about 0.6 miles to 
its intersection with the 800-foot contour line in section 18, T4S, R5W, 
on the Muddy Valley map;
    (6) From Gill Creek, follow the meandering 800-foot contour line 
westerly, crossing Deer Creek in section 14, T4S, R6W, on the Stony 
Mountain map, and, crossing back and forth four times between the Stony 
Mountain and Muddy Valley maps in section 24, T4S, R6W, continue 
southwesterly to the contour line's intersection with Thomson Mill Road 
in section 27, T4S, R6W, on the Stony Mountain map;
    (7) Continue to follow the meandering 800-foot contour line 
southwesterly, crossing Cronin and Beaver Creeks, to the 800-foot 
contour line's intersection with Rock Creek Road in section 46, T5S, 
R6W, on the Stony Mountain map;
    (8) Then follow Rock Creek Road south for about 5 miles to its 
intersection with the West Valley Highway in section 44, T5S, R6W, on 
the Sheridan map, and continue about 200 feet due

[[Page 261]]

south in a straight line to from that intersection to the 200-foot 
contour line, just north of the Yamhill River (Sheridan map);
    (9) Then follow the meandering 200-foot contour line easterly, 
passing north of most of the village of Sheridan, crossing onto the 
Ballston map, and continue easterly and then northerly along the 200-
foot contour line to its first intersection with Christensen Road at the 
common boundary between sections 27 and 34, T5S, R5W (Ballston map);
    (10) Continue to follow the 200-foot contour line westerly and then 
northerly, passing onto the Muddy Valley map and then the Stony Mountain 
map, to the contour line's intersection with Deer Creek in section 64, 
T5S, R6W (Stony Mountain map);
    (11) Cross Deer Creek and follow the 200-foot contour line 
southeasterly, crossing Dupree Creek in section 64, T5S, R6W, on the 
Muddy Valley map, and, crossing onto the Ballston map, continue 
southerly and then easterly along the 200-foot contour line to its 
intersection with State Route 18 at the hamlet of Bellevue, section 28, 
T5S, R5W (Ballston map);
    (12) Continue westerly then northerly along the meandering 200-foot 
contour line, crossing Latham Road at the northern boundary of section 
53, T5S, R5W, and, crossing onto the Muddy Valley map, continue 
northerly along the 200-foot contour line to its intersection with Muddy 
Creek in section 40, T5S, R5W (Muddy Valley map);
    (13) Crossing Muddy Creek, follow the 200-foot contour line 
southerly, then easterly, and then northerly to its intersection with 
Peavine Road in the western extension of section 47, T4S, R5W (Muddy 
Valley map);
    (14) From Peavine Road, continue northeasterly along the meandering 
200-foot contour line, crossing Cozine Creek in section 46, T4S, R5W, 
and, crossing onto the McMinnville map, follow the 200-foot contour line 
across Redmond Hill Road in section 44, T4S, R5W, and return to the 
point of beginning (McMinnville map)

[T.D. TTB-22, 70 FR 2804, Jan. 18, 2005]



Sec.  9.182  Ribbon Ridge.

    (a) Name. The name of the viticultural area described in this 
section is ``Ribbon Ridge.''
    (b) Approved Maps. The appropriate maps used to determine the 
boundaries of the Ribbon Ridge viticultural area are the following two 
United States Geological Survey (USGS), 1:24,000 scale, topographical 
maps (7.5 minute series).
    (1) Laurelwood Quadrangle, Oregon, 1956, photorevised 1978; and
    (2) Dundee Quadrangle, Oregon, 1956, revised 1993.
    (c) Boundary. The Ribbon Ridge viticultural area is located in 
northern Yamhill County, Oregon, northwest of the town of Dundee.
    (1) The beginning point is on the Laurelwood Quadrangle map at the 
intersection of a light-duty road known locally as Albertson Road and 
Dopp Road (named on the Dundee map), just east of the Lake View School, 
section 58, T2S, R3W. From the beginning point, the boundary line--
    (2) Continues south on Dopp Road for about 4.9 miles, crossing onto 
the Dundee map, to the road's intersection with North Valley Road, near 
the Erwin Young School, section 39, T3S, R3W (Dundee Quadrangle); then
    (3) Continues west then north on North Valley Road for about 5 
miles, crossing over to the Laurelwood map, to the road's intersection 
with Laughlin and Albertson Roads, just west of the Lake View School, 
section 58, T2S, R3W (Laurelwood Quadrangle); then
    (4) Continues east on Albertson Road for about 0.2 miles and returns 
to the beginning point.

[T.D. TTB-27, 70 FR 31344, June 1, 2005]



Sec.  9.183  Yamhill-Carlton District.

    (a) Name. The name of the viticultural area described in this 
section is ``Yamhill-Carlton District''.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Yamhill-Carlton District viticultural area are eight 1:24,000 
Scale U.S.G.S. topography maps. They are titled:
    (1) Gaston Quadrangle, Oregon, 1956, revised 1992;

[[Page 262]]

    (2) Laurelwood Quadrangle, Oregon, 1956, revised 1992;
    (3) Dundee Quadrangle, Oregon, 1956, revised 1993;
    (4) Carlton Quadrangle, Oregon--Yamhill Co., 1957, revised 1992;
    (5) Fairdale Quadrangle, Oregon-Yamhill Co., 1979;
    (6) McMinnville Quadrangle, Oregon--Yamhill Co., 1957, revised 1992;
    (7) Muddy Valley Quadrangle, Oregon--Yamhill Co., 1979, revised 
1992; and
    (8) Turner Creek Quadrangle, Oregon, 1979.
    (c) Boundary. The Yamhill-Carlton District viticultural area is 
located in Yamhill and Washington Counties, Oregon, and is entirely 
within the Willamette Valley viticultural area. The Yamhill-Carlton 
District viticultural area is limited to lands at or above 200 feet in 
elevation and at or below 1,000 feet in elevation within its boundary, 
which is described as follows--
    (1) The point of beginning is on the Gaston map in the village of 
Gaston at the intersection of Gaston Road East (E. Main Street within 
Gaston) and the 200-foot elevation line, approximately 225 feet west of 
State Route 47, section 49, T1S, R4W. From this beginning point, proceed 
southerly and then southeasterly about 8.15 miles along the meandering 
200-foot elevation line (crossing to and from the Laurelwood map in 
sections 12 and 13, T2S, R4W, and then returning to the Laurelwood map) 
to the 200-foot elevation line's intersection with Spring Hill Road, 
section 58, T2S, R3W (Laurelwood Quadrangle); then
    (2) Proceed south 1.1 miles on Spring Hill Road, which becomes North 
Valley Road at Laughlin Road, crossing onto the Dundee map, to the 
road's intersection with the 200-foot elevation line, section 30, T2S, 
R3W (Dundee Quadrangle); then
    (3) Proceed northerly then southerly for approximately 5 miles along 
the 200-foot elevation line, crossing over to and back from the 
Laurelwood map, to the 200-foot elevation line's intersection with State 
Route 240, section 47, T3S, R3W (Dundee Quadrangle); then
    (4) Proceed straight west for 0.2 mile on State Route 240 to its 
intersection with Kuehne Road at the 207-foot benchmark, section 47, 
T3S, R3W (Dundee Quadrangle); then
    (5) Proceed southerly for about 1.9 miles on Kuehne Road to its 
intersection with Abbey Road, section 50, T3S, R3W (Dundee Quadrangle); 
then
    (6) Proceed southerly 1.4 miles on Abbey Road to its intersection 
with the 200-foot elevation line, north of the 174-foot elevation point, 
section 52, T3S, R3W (Dundee Quadrangle); then
    (7) Proceed southwesterly for about 2.1 miles along the meandering 
200-foot elevation line to Lafayette Cemetery on the Carlton map in 
section 1, T4S, R4W, and turning northerly along the 200-foot elevation 
line, continue along the elevation line for about 6 miles, crossing to 
and from the Dundee map, to the 200-foot elevation line's intersection 
with Stag Hollow Road, north of Hendricks Road and 190-foot elevation 
point, section 24, T3S, R4W (Carlton Quadrangle); then
    (8) Continue westerly along the meandering 200-foot elevation line, 
turning northeasterly as the elevation line passes through the Carlton 
Lakes State Wildlife Refuge, then westerly as the elevation line crosses 
Stag Hollow Creek in section 47, T3S, R4W, then southerly as the 
elevation line crosses the North Yamhill River on the Fairdale map in 
section 43, T2S, R5W, then, returning to the Carlton map, continue 
southerly on the 200-foot elevation line to its intersection with Meadow 
Lake Road near the southwest corner of section 55, T3S, R4W (Carlton 
Quadrangle);
    (9) Continue westerly along the meandering 200-foot elevation line, 
crossing onto the Fairdale map, to the elevation line's intersection 
with the 123[deg]17[min]30[sec] longitude line (north of Panther Creek) 
in the western extension of section 22, T3S, R5W (Fairdale Quadrangle); 
then
    (10) Proceed 0.2 mile straight south along the 
123[deg]17[min]30[sec] longitude line, crossing Panther Creek, to the 
line's intersection with the 200-foot elevation line south of the creek 
in the western extension of section 22, T3S, R5W (Fairdale Quadrangle); 
then
    (11) Proceed easterly and then southeasterly along the meandering 
200-foot elevation line, crossing onto the Carlton map, then the 
McMinnville

[[Page 263]]

map, to the elevation line's third intersection with an unnamed light-
duty road, southwest of the Henderson Benchmark in section 87, T4S, R4W 
(McMinnville Quadrangle);
    (12) Continue southerly and then westerly along the meandering 200-
foot elevation line, crossing onto the Muddy Valley map, to the 
elevation line's intersection with Baker Creek Road (very near Baker 
Creek Road's intersection with High Heaven Road) in section 54, T4S, R5W 
(Muddy Valley Quadrangle); then
    (13) Proceed west-southwest for 0.8 mile on Baker Creek Road to its 
intersection with the 123[deg]17[min]30[sec] longitude line in Happy 
Valley, section 54, T4S, R5W (Muddy Valley Quadrangle); then
    (14) Proceed straight north 13.4 miles on the 123[deg]17[min]30[sec] 
longitude line, passing through the Fairdale map and crossing onto the 
Turner Creek map, to the longitude line's intersection with the 1,000-
foot elevation line in the northwestern quadrant of section 10, T2S, 
R5W, approximately one mile diagonally northwest of the footbridge in 
Menefee Park (Turner Creek Quadrangle); then
    (15) Proceed easterly and then northerly for 4.1 miles along the 
meandering 1,000-foot elevation line to its intersection with the 
Washington-Yamhill County line at northern boundary of section 3, T2S, 
R5W (also the common T1S/T2S boundary line) (Turner Creek Quadrangle); 
then
    (16) Proceed straight east 3.9 miles along the Washington-Yamhill 
County line, crossing onto the Gaston map, to the county line's 
intersection with South Road, just east of Mt. Richmond Road, section 
60, T2S, R4W (Gaston Quadrangle); then
    (17) Proceed east-northeast for 1.8 miles on South Road to its 
intersection with the 200-foot elevation line, 0.3 mile west of the 
Gaging Station, section 34, T1S, R4W (Gaston Quadrangle); then
    (18) Proceed easterly 1.9 miles along the 200-foot elevation line 
and return to the beginning point within the village of Gaston.

[TTB T.D.-20, 69 FR 71374, Dec. 9, 2004]



Sec.  9.184  Trinity Lakes.

    (a) Name. The name of the viticultural area described in this 
section is ``Trinity Lakes''.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the Trinity Lakes viticultural area are 11 1:24,000 scale USGS 
topographic maps. They are titled:
    (1) Carrville, Calif. Provisional Edition 1986;
    (2) Whisky Bill Peak, Calif. Provisional Edition 1986;
    (3) Damnation Peak, Calif. Provisional Edition 1982;
    (4) Trinity Center, Calif. Provisional Edition 1982;
    (5) Papoose Creek, Calif. Provisional Edition 1982;
    (6) Trinity Dam, Calif. Provisional Edition 1982;
    (7) Lewiston, Calif. Provisional Edition 1982;
    (8) Weaverville, Calif. Provisional Edition 1982;
    (9) Rush Creek Lakes, Calif. Provisional Edition 1982;
    (10) Siligo Peak, Calif. Provisional Edition 1982; and
    (11) Covington Mill, Calif. Provisional Edition 1982.
    (c) Boundary. The Trinity Lakes viticultural area is located in 
Trinity County in northern California. The boundary encompasses Trinity 
Lake and Lewiston Lake, both within the Trinity Lake unit of the 
Whiskeytown-Shasta-Trinity National Recreation Area, and a portion of 
the Trinity River basin below Lewiston Dam.
    (1) The beginning point is on the Carrville, California, quadrangle 
map on township line T38N/T37N at the northwest corner of section 5, 
T37N/R7W, near the Trinity River at Derrick Flat;
    (2) From the beginning point, follow township line T38N/T37N due 
east to the northeast corner of section 5, T37N/R7W;
    (3) Proceed due south on the eastern boundary of sections 5, 8, 17, 
and 20 to the northwest corner of section 28, T37N/R7W, near Snow Gulch;
    (4) Follow the northern boundary of section 28, T37N/R7W, due east 
to the section's northeast corner;
    (5) Continue due south on the eastern boundary of sections 28 and 
33, T37N/

[[Page 264]]

R7W, to township line T37N/T36N at the northeast corner of section 4, 
T36N/R7W;
    (6) Proceed due east on township line T37N/T36N onto the Whisky Bill 
Peak, California quadrangle map to the R7W/R6W range line at the 
southwest corner of section 31, T37N/R6W, near the East Fork of the 
Trinity River;
    (7) Follow the R7W/R6W range line due north to the northwest corner 
of section 30, T37N/R6W;
    (8) Continue due east along the northern boundary of section 30, 
T37N/R6W, to the section's northeast corner;
    (9) Proceed due south on the eastern boundary of sections 30 and 31, 
T37N/R6W, and sections 6 and 7, T36N/R6W, and continue onto the 
Damnation Peak, California, quadrangle map to the southeast corner of 
section 7;
    (10) Follow the southern boundary of section 7, T36N/R6W, and 
section 12, T36N/R7W, due west onto the Trinity Center, California, 
quadrangle map to the northeast corner of section 14, T36N/R7W;
    (11) Continue due south along the eastern boundary of sections 14, 
23, 26, and 35, T36N/R7W, to the boundary's intersection with township 
line T36N/T35N at the southeast corner of section 35;
    (12) Proceed due west along township line T36N/T35N approximately 
0.5 mile to the township line's intersection with the 900-meter contour 
line;
    (13) Follow the meandering 900-meter contour line generally west 
through sections 35 and 34, T36N/R7W; cross the T36N/T35N township line 
and continue generally southwest on the contour line around Linton 
Ridge, through Bridge Gulch, Bragdon Gulch, and around Feeny Ridge; 
cross onto the Papoose Creek, California, quadrangle map and continue 
southwesterly to the contour line's first intersection with a line 
marked ``NAT RECREATION BDY INDEFINITE,'' approximately 2,000 feet north 
of Feeny Gulch;
    (14) Continue easterly on the 900-meter contour line over Feeny 
Gulch; then proceed southwesterly on the meandering contour line across 
Van Ness Creek, both Bear Gulches, Langdon Gulch, Digger Gulch, around 
Fairview Ridge, along the northern side of Papoose Arm, and over the 
North, East, and South Forks of Papoose Creek; continue westerly on the 
contour line along the southern side of Papoose Arm to the contour 
line's intersection with Little Papoose Creek in section 24, T34N/R8W;
    (15) Continue generally west along the meandering 900-meter contour 
line through sections 24, 23, 14, and 15, T34N/R8W; cross onto the 
Trinity Dam, California, quadrangle map and continue on the contour line 
through sections 15 and 22; pass back onto the Papoose Creek map and 
follow the contour line through sections 22, 23, and 22 again; then 
cross back onto the Trinity Dam map and follow the contour line to its 
intersection with the southern boundary of section 22, T34N/R8W;
    (16) Proceed due west along the southern boundary of section 22 to 
the northeast corner of section 28, T34N/R8W;
    (17) Follow the eastern boundary of sections 28 and 33, T34W/R8W, 
and section 4, T33N/R8W, due south onto the Lewiston, California, 
quadrangle map, and continue due south on the eastern boundary of 
sections 4, 9, 16, and 21 to the southeast corner of section 21, T33N/
R8W;
    (18) Then proceed due west along the southern boundary of sections 
21 and 20 to the northeast corner of section 30, T33N/R8W;
    (19) Follow the eastern boundary of section 30, T33N/R8W, due south 
to the section's southeast corner;
    (20) Continue due west along the southern boundary of section 30, 
T33N/R8W, and sections 25 and 26, T33N/R9W, to the northeast corner of 
section 34, T33N/R9W;
    (21) Proceed due south on the eastern boundary of section 34, T33N/
R9W, and section 3, T32N/R9W, to the southeast corner of section 3 near 
Tom Lang Gulch;
    (22) Follow the southern boundary of section 3, T32N/R9W, due west 
onto the Weaverville, California, quadrangle map, and continue west 
along the southern boundary of sections 3, 4, and 5, T32N/R9W, to the 
southwest corner of section 5;
    (23) Then proceed due north along the western boundary of section 5, 
T32N/R9W, for approximately 0.8 mile to its

[[Page 265]]

intersection with the 700-meter contour line;
    (24) Follow the 700-meter contour line generally northwest through 
section 5, T32N/R9W, and then through sections 32, 31, 32 again, 29, and 
28, T33N/R9W, to the contour line's intersection with the northern 
boundary of section 28;
    (25) Proceed due east along the northern boundary of section 28 
across Limekiln Gulch and China Gulch to the southwest corner of section 
22, T33N/R9W;
    (26) Follow the western boundary of section 22, T33N/R9W, due north 
to the section's northwest corner;
    (27) Then continue due east along the northern boundary of section 
22, T33N/R9W, onto the Lewiston map to the section's northeast corner;
    (28) Proceed due north on the western boundary of section 14, T33N/
R9W, to the section's northwest corner;
    (29) Follow the northern boundary of sections 14 and 13, T33N/R9W, 
due east to the R9W/R8W range line at the northeast corner of section 
13;
    (30) Then proceed due north along the R9W/R8W range line onto the 
Trinity Dam map, and continue along the range line to the southeast 
corner of section 1, R9W/T34N, near Smith Gulch;
    (31) Continue due west along the southern boundary of section 1, 
T34N/R9W, for approximately 0.3 mile to its intersection with the 900-
meter contour line;
    (32) Follow the meandering 900-meter contour line generally west 
over Tannery Gulch and around Tannery Ridge, cross onto the Rush Creek 
Lakes, California, quadrangle map, and continue along the 900-meter 
contour line to its intersection with Slate Creek in section 4, T34N/
R9W;
    (33) Using the Rush Creek Lakes and Trinity Dam maps, follow the 
contour line generally northeast from Slate Creek, crossing Irish Gulch 
in section 3, T34N/R9W, (crossing back and forth between the two maps 
three times) to the contour line's intersection with township line T34N/
T35N at the northern boundary of section 3, T34N/R9W, on the Trinity Dam 
map;
    (34) Continue generally northwest on the meandering 900-meter 
contour line and cross onto the Rush Creek Lakes map in section 34, 
T35N/R9W; continue northwesterly on the contour line over Cummings 
Creek, Bear Gulch, Snowslide Gulch, Sawmill Creek, and Van Matre Creek; 
cross onto the Siligo Peak, California, quadrangle map and continue 
generally northwest on the 900-meter contour line over Middle Creek and 
Owens Creek to the contour line's intersection with Stuart Fork;
    (35) Continue generally southeast on the 900-meter contour line over 
Fire Camp Creek, Lightning Creek, and Sunday Creek; cross onto the Rush 
Creek Lakes map and continue generally southeast on the contour line 
over Elk Gulch and Trinity Alps Creek; cross onto the Trinity Dam map in 
section 27, T35N/R9W, and proceed easterly along the contour line to its 
intersection with the eastern boundary of section 27, T35N/R9W;
    (36) Continue generally north along the 900-meter contour line 
through sections 26 and 23, T35N/R9W, cross onto the Covington Mill, 
California, quadrangle map in section 23, T35N/R9W, and continue 
northerly along the contour line to its intersection with Stoney Creek 
in the same section;
    (37) From Stoney Creek, continue generally south on the 900-meter 
contour line, cross back onto the Trinity Dam map in section 23, T35N/
R9W, and continue southerly on the contour line through sections 23, 26, 
and 35 to the contour line's intersection with the eastern boundary of 
section 35, T35N/R9W, near that section's northeast corner;
    (38) Continue generally northeast on the meandering 900-meter 
contour line over Telephone Ridge, Buck Gulch, and Buck Ridge; cross 
onto the Covington Mill map in section 19, T35N/R8W, and continue 
northwesterly along the contour line across Mule Creek and Snowslide 
Gulch in section 13, T35N/R9W; continue on the contour line, cross 
Little Mule Creek in section 18, T35N/R8W, and continue southeasterly on 
the contour line to its intersection with a line marked ``TRANS LINE 
SINGLE WOOD POLES'' in section 20, T35N/R8W;
    (39) Continue generally northeast along the 900-meter contour line 
through sections 20 and 17, T35N/R8W, and cross Strope Creek, Mosquito 
Gulch, Greenhorn Gulch, Taylor Gulch, Stuart Fork (in section 5, T35N/
R8W),

[[Page 266]]

and Davis Creek; cross onto the Trinity Center map in section 35, T36/
R8W, and continue on the contour line to its intersection with the 
northern boundary of that section;
    (40) Proceed due east along the northern boundary of sections 35 and 
36, T36N/R8W, to the R8W/R7W range line at the northeast corner of 
section 36;
    (41) Follow the R8W/R7W range line due north onto the Carrville map 
and continue along the range line to its intersection with township line 
T38N/T37N at the northwest corner of section 6, T37N/R7W; and
    (42) Proceed due east along township line T38N/T37N and return to 
the beginning point at the northwest corner of section 5, T37N/R7W.

[T.D. TTB-24, 70 FR 9530, Feb. 28, 2005]



Sec.  9.185  Texoma.

    (a) Name. The name of the viticultural area described in this 
section is ``Texoma''. For purposes of part 4 of this chapter, 
``Texoma'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Texoma viticultural area are two United States 
Geological Survey, 1:250,000 scale, topographic maps. They are titled:
    (1) Sherman, Texas; Oklahoma, 1954, revised 1977; and
    (2) Texarkana, Tex.; Ark.; Okla.; La., 1953, revised 1972.
    (c) Boundary. The Texoma viticultural area is located in Montague, 
Cooke, Grayson, and Fannin Counties, Texas. The boundary is defined as 
follows:
    (1) The beginning point is the northwest corner of Montague County 
(at the Red River, which is also the Texas-Oklahoma State line) on the 
Sherman map. From this point, the boundary line:
    (2) Follows the Red River eastward along the Texas-Oklahoma State 
line, passes onto the Texarkana map, and continues to the northeast 
corner of Fannin County; then
    (3) Continues southward along the eastern Fannin County line to a 
point approximately three miles west of Petty, Texas, where a power line 
shown on the Texarkana map crosses the county line; then
    (4) Continues southwest in a straight line for approximately 13 
miles to the intersection of State Routes 34/50 and State Route 64 at 
Ladonia, Texas; then
    (5) Follows State Route 34 west to its intersection with State Route 
68; then
    (6) Continues west-southwesterly in a straight line from that 
intersection to the intersection of U.S. Highway 69 and State Route 78 
at Leonard, Texas, on the Sherman map; then
    (7) Continues northwest on U.S. Highway 69 for approximately 6 miles 
to the intersection of U.S. Highway 69 and State Route 121 at Trenton, 
Texas; then
    (8) Continues westerly in a straight line to the intersection of 
State Routes 160 and 121, and then continues west on State Route 121 to 
its intersection with U.S. Highway 75 at Van Alstyne, Texas; then
    (9) Continues south along U.S. Highway 75 to the Grayson County 
line; then
    (10) Continues west along the southern Grayson County line and then 
the southern Cooke County line to the county line's intersection with 
Interstate 35; then
    (11) Continues north along Interstate 35 to its intersection with 
State Route 922 in Valley View, Texas; then
    (12) Follows State Route 922 west for approximately 17 miles to 
Rosston, Texas; then
    (13) Continues west-southwest from Rosston in a straight line for 
approximately 19 miles to the intersection of U.S. Highway 287 and State 
Route 101 at Sunset, Texas; then
    (14) Follows U.S. 287 northwest approximately 17 miles to the 
western Montague County line; and
    (15) Continues north along the western Montague County line to the 
beginning point at the northwest corner of Montague County.

[T.D. TTB-38, 70 FR 72716, Dec. 7, 2005]



Sec.  9.186  Niagara Escarpment.

    (a) Name. The name of the viticultural area described in this 
section is ``Niagara Escarpment''. For purposes of part 4 of this 
chapter, ``Niagara Escarpment'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of

[[Page 267]]

the ``Niagara Escarpment'' viticultural area are five United States 
Geological Survey 1:250,000 scale topographic maps. They are titled:

(1) Lewiston, New York--Ontario, 1980;
(2) Ransomville, New York, 1980;
(3) Cambria, New York, 1980;
(4) Lockport, New York, 1980; and
(5) Gasport, New York, 1979.
    (c) Boundary. The Niagara Escarpment viticultural area is located in 
Niagara County, New York. The boundary of the Niagara Escarpment 
viticultural area is as described below:
    (1) On the Lewiston map, south of the village of Lewiston within the 
Brydges State Artpark, begin on the east bank of the Niagara River at 
the mouth of Fish Creek; then
    (2) Proceed north along the east bank of the Niagara River about 0.6 
mile to the northern boundary of the Brydges State Artpark; then
    (3) Proceed east along the northern boundary of the Brydges State 
Artpark about 0.8 mile to the park's northeast corner, and continue east 
in a straight line a short distance to the Robert Moses Parkway; then
    (4) Proceed north along the Robert Moses Parkway about 0.25 mile to 
Ridge Road, and then east on Ridge Road (State Route 104) about 0.15 
mile to the road's first intersection with the 400-foot contour line; 
then
    (5) Continue easterly along the 400-foot contour line, through the 
Ransomville map (crossing Model City Road, Dickersonville Road, and 
State Route 429) and the Cambria map (crossing Baer Road, Plank Road, 
and State Route 93/270), and pass onto the Lockport map to the contour 
line's junction with Sunset Drive; then
    (6) Proceed north on Sunset Drive 0.3 mile to its intersection with 
Stone Road, then east on Stone Road about 1.25 miles (crossing 
Eighteenmile Creek) to the intersection of Stone, Purdy, and Old Niagara 
Roads, and continue east along Old Niagara Road about 0.4 mile to its 
first intersection with the 400-foot contour line; then
    (7) Proceed northeasterly along the 400-foot contour line to its 
first junction with Slayton Settlement Road, proceed east on Slayton 
Settlement Road to Day Road, and then proceed north on Day Road to its 
first junction with the 400-foot contour line; then
    (8) Proceed easterly along the 400-foot contour line, pass onto the 
Gasport map (crossing Humphrey and Orangeport Roads), and continue to 
the contour line's junction with Quaker Road; then
    (9) Proceed north on Quaker Road about 0.4 mile to its intersection 
with State Route 104, and then east on State Route 104 to its 
intersection with Johnson Creek (at the village of Johnson Creek); then
    (10) Proceed south along Johnson Creek (crossing the Erie Canal), to 
the creek's junction with Mountain Road; then
    (11) Proceed west on Mountain Road to its intersection with Gasport 
Road, then south on Gasport Road to its intersection with Mill Road, 
then west on Mill Road to its intersection with Kayner Road, then north 
on Kayner Road 0.65 mile to its junction with the 600-foot contour line; 
then
    (12) Proceed westerly along the 600-foot contour line (crossing 
Cottage Road) to its junction with State Route 31, and continue west on 
State Route 31, passing onto the Lockport map and crossing the Erie 
Canal within the city of Lockport, to the intersection of State Route 31 
and Upper Mountain Road; then
    (13) Proceed north-northwesterly on Upper Mountain Road 0.65 mile 
and then northerly on Sunset Drive 0.25 mile to the junction of Sunset 
Drive and the 600-foot contour line; then
    (14) Proceed westerly along the 600-foot contour line, continuing 
through the Cambria map (crossing State Route 93/270 and then Blackman 
and Baer Roads), through the Ransomville map (crossing State Route 429 
just north of Pekin and then crossing Black Nose Spring and Model City 
Roads), and, passing onto the Lewiston map, continue westward along the 
contour line (through the Escarpment, Ramsey Ridge, and Lewiston Heights 
subdivisions), to the contour line's junction with Mountain View Drive 
(just east of State Highway 104 near the Niagara Falls Country Club); 
then
    (15) Proceed west along Mountain View Drive to its intersection with 
State Route 104, and then proceed

[[Page 268]]

south on State Route 104 to its junction with Fish Creek; then
    (16) Proceed westerly along Fish Creek and return to the beginning 
point on the east bank of the Niagara River at the mouth of Fish Creek.

[T.D. TTB-33, 70 FR 53303, Sept. 8, 2005]



Sec.  9.187  Covelo.

    (a) Name. The name of the viticultural area described in this 
section is ``Covelo''. For purposes of part 4 of this chapter, 
``Covelo'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Covelo viticultural area are four United States 
Geological Survey 1:24,000 scale topographic maps. They are titled:
    (1) Dos Rios, California Quadrangle,--Mendocino Co., 7.5 Minute 
Series, edition of 1967, revised 1994;
    (2) Covelo West, California Quadrangle,--Mendocino Co., 7.5 Minute 
Series, edition of 1967, photoinspected 1973;
    (3) Covelo East, California Quadrangle,--Mendocino Co., 7.5 Minute 
Series, edition of 1967, revised 1994; and
    (4) Jamison Ridge, California Quadrangle,--Mendocino Co., 7.5 Minute 
Series, edition of 1967, revised 1994.
    (c) Boundary. The Covelo viticultural area surrounds the town of 
Covelo in northern Mendocino County, California. The area's boundaries 
are defined as follows--
    (1) Beginning on the Dos Rios map at the intersection of State 
Highway 162 and the southern boundary of section 25, T22N, R13W (labeled 
Inspiration Point on the map), proceed west 0.3 miles on Highway 162 to 
BM 2006 in section 36, T22N, R13W; then
    (2) Proceed straight west-northwest 1.5 miles to the 2,537-foot 
elevation point in the northwest quadrant of section 26, T22N, R13W, Dos 
Rios map; then
    (3) Proceed straight northwest 1.6 miles to the 2,488-foot peak in 
the northwest quadrant of section 22, T22N, R13W, Covelo West map; then
    (4) Proceed straight north-northwest 0.75 miles to the 2,262-foot 
peak on the section 15 and 16 boundary line, T22N, R13W, and continue 
straight north 1.6 miles to the 2,247-foot peak on the section 3 and 4 
boundary line, T22N, R13W, Covelo West map; then
    (5) Proceed straight northerly 1 mile to the 1,974-foot peak on the 
T22N/T23N boundary line, and continue straight north 1.6 miles to the 
2,290-foot peak in the northwest quadrant of section 27, T23N, R13W, 
Covelo West map; then
    (6) Proceed straight northeast 1.2 miles to the 2,397-foot peak in 
the northeast quadrant of section 22, and continue straight northeast 
1.5 miles to BM 2210 in the northeast quadrant of section 14, T23N, 
R13W, Covelo West map; then
    (7) Proceed straight east-southeast 1.75 miles to the 2,792-foot 
peak in the southwest quadrant of section 18, T23, R12W, Covelo East 
map; then
    (8) Proceed straight north-northeasterly 0.9 mile to the 2,430-foot 
elevation point in the southeast quadrant of section 7, T23N, R12W, 
Covelo East map; then
    (9) Proceed straight east-northeast 1.6 miles to the peak of Coyote 
Rock in section 9, T23N, R12W, Covelo East map; then
    (10) Proceed straight east-southeast 1.55 miles to the 2,435-foot 
elevation point in the northern half of section 15, and continue 
straight southeast 2.3 miles to the 2,066-foot peak in the southwest 
quadrant of section 24, T23N, R12W, Covelo East map; then
    (11) Proceed straight south-southwest 0.6 mile to the 2,024-foot 
peak near the section 26 eastern boundary line, T23N, R12W, Covelo East 
map; then
    (12) Proceed straight west-southwest 1.9 miles to the 2,183-foot 
peak in the northwest quadrant of section 34, T23N, R12W, Covelo East 
map; then
    (13) Proceed straight south-southeast 1.2 miles to the 1,953-foot 
peak in the northeast quadrant of section 3, T22N, R12W, Covelo East 
map; then
    (14) Proceed straight southerly 0.9 mile to the 2,012-foot peak in 
the northeast quadrant of section 10, T22N, R12W, Covelo East map; then
    (15) Proceed straight south-southeast 1.4 miles along Dingman Ridge 
to the 2,228-foot peak along the section 14 and 15 boundary line, T22N, 
R12W, Covelo East map; then
    (16) Proceed straight southeast 0.95 mile to the 2,398-foot peak in 
the

[[Page 269]]

northeast quadrant of section 23, T22N, R12W, Covelo East map; then
    (17) Proceed straight south-southeast 1.75 miles to the 2,474-foot 
elevation point along the section 25 and 26 boundary line, T22N, R12W, 
Jamison Ridge map; then
    (18) Proceed straight west-southwest 0.9 mile to BM 2217 in the 
southwest quadrant of section 26, and continue straight westerly 1.5 
miles to the 2,230-foot peak northwest of Iron Spring, in the southeast 
quadrant of section 28, T22N, R12W, Jamison Ridge map; then
    (19) Proceed straight southwest 0.65 mile to the 2,022-foot peak 
very near an unimproved road in section 33, T22N, R12W, Jamison Ridge 
map; then
    (20) Proceed straight west-northwest 1.5 miles to the 1,762-foot 
peak in the northeast quadrant of section 31, T22N, R12W, Jamison Ridge 
map, and continue in the same line of direction 1.1 miles to the 
beginning point at the intersection of State Highway 162 and the 
southern boundary of section 25, T22N, R13W (labeled Inspiration Point), 
on the Dos Rios map.

[T.D. TTB-42, 71 FR 8205, Feb. 16, 2006]



Sec.  9.188  Horse Heaven Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Horse Heaven Hills''. For purposes of part 4 of this 
chapter, ``Horse Heaven Hills'' and ``Horse Heaven'' are terms of 
viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Horse Heaven Hills viticultural area are 28 United 
States Geological Survey (USGS) 1:24,000 scale topographic maps. They 
are titled:
    (1) Umatilla Quadrangle, Oregon--Washington, 1993;
    (2) Irrigon Quadrangle, Oregon--Washington, 1993;
    (3) Paterson Quadrangle, Washington--Oregon, 1993;
    (4) West of Paterson Quadrangle, Washington--Oregon, 1993;
    (5) Boardman Quadrangle, Oregon--Washington, 1993;
    (6) Crow Butte Quadrangle, Washington--Oregon, 1993;
    (7) Golgotha Butte Quadrangle, Washington--Oregon, 1993;
    (8) Heppner Junction Quadrangle, Oregon--Washington, 1962, photo 
revised, 1970;
    (9) Wood Gulch Quadrangle, Washington--Oregon, 1962, photo revised 
1970, photo inspected 1975;
    (10) Crider Valley Quadrangle, Washington, 1962;
    (11) Douty Canyon Quadrangle, Washington, 1962;
    (12) Tule Prong Quadrangle, Washington, 1965;
    (13) Prosser SW Quadrangle, Washington, 1965, photo inspected 1975;
    (14) Mabton West Quadrangle, Washington, 1965;
    (15) Mabton East Quadrangle, Washington, 1965;
    (16) Prosser Quadrangle, Washington, 1965;
    (17) Whitstran Quadrangle, Washington, 1965;
    (18) Whitstran NE Quadrangle, Washington, 1965;
    (19) Corral Canyon Quadrangle, Washington, 1977;
    (20) Webber Canyon Quadrangle, Washington, 1965;
    (21) Badger Mountain Quadrangle, Washington, 1965, photo revised 
1978;
    (22) Taylor Canyon Quadrangle, Washington, 1965;
    (23) Johnson Butte Quadrangle, 1964, photo revised 1978;
    (24) Nine Canyon Quadrangle, 1964;
    (25) Wallula Quadrangle, 1992;
    (26) Juniper Canyon Quadrangle, 1966, photo revised 1978;
    (27) Juniper Quadrangle, 1993; and
    (28) Hat Rock Quadrangle, 1993.
    (c) Boundary. The Horse Heaven Hills viticultural area is located in 
portions of Benton, Klickitat, and Yakima Counties, Washington. The 
boundary of the Horse Heaven Hills viticultural area is described below:
    (1) Beginning on the Umatilla map at the intersection of Interstate 
Highway 82 and the north bank of the Columbia River in Benton County, 
Washington, proceed westerly (downstream) along the river's north bank, 
passing through the Irrigon, Paterson, West of Paterson, Boardman, Crow 
Butte, and Golgotha Butte maps, to the mouth of Pine Creek in section 
32, T4N/R22E, on the Heppner Junction map in Klickitat County; then

[[Page 270]]

    (2) Follow Pine Creek northwesterly (upstream) for approximately 7.0 
miles to the junction of Pine Creek and the western boundary of section 
16, T4N/R21E, on the Wood Gulch map, then continue north along the 
section boundary to the point where East Road, which coincides with the 
section line at this point, crosses the 1,700-foot contour line, very 
near the southwestern corner of section 9, T4N, R21E; then
    (3) Proceed northeasterly along the meandering 1,700-foot contour 
line through, and crossing between, the Crider Valley and Douty Canyon 
maps (crossing Alder Creek, Stegeman Canyon, Spring Canyon, Sand Ridge, 
and Willow Creek) to the point where the 1,700-foot contour line 
intersects Sand Ridge Road in section 4, T5N, R22E, on the Douty Canyon 
map; then
    (4) Continue north-northeasterly along the meandering 1,700-foot 
contour line through, and crossing between, the Tule Prong and Douty 
Canyon maps (crossing Tule Canyon, Tule Prong, and Dead Canyon) to the 
contour line's intersection with Alderdale Road in section 31, T7N/R23E, 
northeast of Coyote Canyon, on the Prosser SW map in Yakima County; then
    (5) Follow Alderdale Road northwest, returning to the Tule Prong 
map, and continue northwest and then north along Alderdale Road to its 
intersection with Wandling Road in section 2, T7N/R22E; then
    (6) From that intersection, proceed northeasterly in a straight line 
to the 2,011-foot peak near the northwest corner of section 1, T7N/R22E, 
on the Mabton West map, and continue northeasterly in a straight line to 
the 1,989-foot peak in the southeast corner of section 36, T8N/R22E, on 
the Mabton East map; then
    (7) From that peak, proceed easterly in a straight line through the 
1,860-foot benchmark along side Township Road in section 31, T8N/R23E, 
to the 2,009-foot peak in section 32, T8N/R23E, then northerly in a 
straight line to the 2,011-foot peak in the same section, then easterly 
to the 1,850 foot peak in the northwest quadrant of section 33, T8N/
R23E, then east-northeasterly to the 1,964-foot peak beside the western 
boundary of section 27, T8N/R23E, then east-northeasterly through the 
2,031-foot peak in the northwest corner of section 26, T8N/R23E, to the 
2,064-foot peak in the northern portion of the same section; then
    (8) From that peak, proceed east-southeast to the 2,093 foot peak in 
the northeastern quadrant of section 25, T8N/R23E on the Prosser map, 
then northeasterly in a straight line to the 2,193-foot peak of Horse 
Hill in the northeast corner of section 25, T8N/R23E, then northeasterly 
in a straight line, crossing into Benton County, to the 2,107-foot peak 
in section 19, T8N/R24E, then easterly to the 2,081-foot peak in section 
21, T8N/R24E, then east-northeasterly through the 1,813-foot peak near 
the northwest corner of section 13, T8N/R24E, to the 1,861-foot peak 
marked with radio towers near the southern boundary of section 12, T8N/
R24E; then
    (9) From that peak, proceed northeasterly in a straight line to an 
unmarked 1,410-foot summit in the northeast corner of section 7, T8N/
R25E, on the Whitstran map, then east-southeasterly to the 1,637-foot 
peak near the center of section 8, T8N/R25E, and then north-
northeasterly to the intersection of State Route 221 and Carter Road 
near the southeast corner of section 5, T8N/R25E; then
    (10) Follow Carter Road northerly to the point where it becomes an 
unimproved road and continue northerly then easterly along the 
unimproved road to the 1,854-foot peak of Gibbon Hill in the northeast 
corner of section 4, T8N/R25E; then
    (11) From that peak, proceed east-northeasterly in a straight line 
through the 1,745-foot peak in section 35, T9N/R25E, to the 1,976-foot 
peak in section 36, T9N/R25E, then east-northeasterly in a straight line 
onto the Whitstran NE map through the 1,808-foot peak in section 30, 
T9N/R26E, to the 1,818-foot peak in the same section; then
    (12) From that peak, proceed due north in a straight line to the 
jeep trail above the 1,750-foot contour line near the northeast corner 
of section 30, T9N/R26E; then
    (13) Follow the jeep trail east-northeasterly to the 2,046-foot peak 
of Chandler Butte in section 21, T9N/R26E, then

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east-northeasterly and then southeasterly along the jeep trail through 
sections 22 and 23, T9N/R26E, on the Corral Canyon map, to the 
intersection of the jeep trail and McBee Grade road near the gravel pit 
in the southeast corner of section 23, T9N/R26E, on the Whitstran NE 
map; then
    (14) From that intersection, proceed southeasterly in a series of 
straight lines through the 1,689-foot peak in the southeast corner of 
section 23, T9N/R26E, and the 1,826-foot peak in section 25, T9N/R26E, 
on the Whitstran map, then, on the Webber Canyon map, through the 1,845-
foot peak in section 30, T9N/R27E, the 1,808-foot peak in section 31, 
T9N/R27E, the 1,745-foot peak in section 32, T9N/R27E, and the 1,572-
foot peak of Rome Hill in section 14, T8N/R27E, and then, on the Badger 
Mountain map, continue in a straight line to the 1,757-foot peak in 
section 30, T8N/R28E; then
    (15) From the 1,757-foot peak, proceed due south in a straight line 
to the line's intersection with Smith Road near the northern boundary of 
section 6, T7N/R28E; then
    (16) Continue southerly along Smith Road to the road's intersection 
with Clodfelter Road at the southern boundary of section 6, T7N/R28E, on 
the Taylor Canyon map; then
    (17) Proceed east on Clodfelter Road to its intersection with 
Williams Road at the eastern boundary of section 5, T7N/R28E, and 
continue east on Williams Road to its intersection with the 1,800-foot 
contour line in section 4, T7N/R28E; then
    (18) Follow the meandering 1,800-foot contour line southerly then 
easterly to the contour line's junction with the northeast corner of 
section 15, T7N/R28E; then
    (19) From that point, proceed east-southeasterly in a straight line 
to the 1,680-foot benchmark in section 17, T7N/R29E, on the Johnson 
Butte map, and continue east-northeasterly in a straight line through 
the 2,043-foot peak of Johnson Butte in section 16, T7N/R29E, to the 
2,220-foot peak of Jump Off Joe summit in section 12, T7N/R29E; then
    (20) From that point, proceed southeasterly in a straight line, 
through the Nine Canyon map, to the 343-foot benchmark on the bank of 
the Columbia River at Palmer Pond in section 13, T6N/R30E, on the 
Wallula map; and then
    (21) Follow the north bank of the Columbia River westerly 
(downstream), through the Juniper Canyon, Juniper, and the Hat Rock 
maps, to the beginning point at the intersection of Interstate Highway 
82 and the north bank of the Columbia River on the Umatilla map.

[T.D. TTB-28, 70 FR 38007, July 1, 2005]



Sec.  9.189  High Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``High Valley''. For purposes of part 4 of this chapter, 
``High Valley'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the ``High Valley'' viticultural area are three United 
States Geological Survey (USGS) 1:24,000 scale topographic maps. They 
are titled:
    (1) Clearlake Oaks Quadrangle, California--Lake County; edition of 
1958; photorevised 1975, minor revision 1994;
    (2) Benmore Canyon Quadrangle, California--Lake County; provisional 
edition of 1989, minor revision 1994; and
    (3) Lucerne Quadrangle, California--Lake County; edition of 1958, 
photorevised 1975, minor revision 1994.
    (c) Boundary. The High Valley viticultural area is located in Lake 
County, California, near the village of Clearlake Oaks. The boundary of 
the High Valley viticultural area is as described below:
    (1) The point of beginning is on the Clearlake Oaks map on the 
northern boundary line of section 16 (also the southern boundary of the 
Mendocino National Forest), T14N, R8W, at the intersection of the 
section line and High Valley Road;
    (2) From the beginning point, proceed due east 2.4 miles along the 
northern boundary lines of sections 16, 15, and 14 (also the southern 
boundary of the Mendocino National Forest) to the northeast corner of 
section 14, T14N, R8W; then
    (3) Proceed straight east-southeast 3.15 miles to the intersection 
of the 2,000-foot elevation line and the eastern

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boundary of section 17, T14N, R7W; then
    (4) Proceed easterly 2.7 miles along the meandering 2,000-foot 
elevation line to its first intersection with the eastern boundary of 
section 22, T14N, R7W, on the Benmore Canyon map; then
    (5) Proceed due south approximately 300 feet along the eastern 
boundary of section 22, T14N, R7W, to its intersection with the 
headwaters of the north branch of the Salt Canyon Creek; then
    (6) Proceed easterly 0.4 mile along the north branch of the Salt 
Canyon Creek to its intersection with the 1,600-foot elevation line in 
section 23, T14N, R7W; then
    (7) Proceed southerly along the meandering 1,600-foot elevation line 
4.1 miles to its intersection with State Route 20, just north of Sweet 
Hollow Creek, in section 35, T14N, R7W; then
    (8) Proceed southwest and then west 1.7 miles on State Route 20 to 
its intersection with the 1,600-foot elevation line just northwest of BM 
1634, Wye, in section 3, T13N, R7W; then
    (9) Proceed westerly 15.2 miles along the meandering 1,600-foot 
elevation line, crossing the Clearlake Oaks map, to the elevation line's 
intersection with an unnamed intermittent stream in Pierce Canyon in the 
northeast quadrant of section 20, approximately 0.4 mile east of VABM 
2533, T14N, R8W, on the Lucerne map; then
    (10) Proceed northerly and then northeasterly along the unnamed 
intermittent stream in Pierce Canyon and then the stream's northern fork 
approximately 1.6 miles to the northern fork's intersection with the 
3,000-foot elevation line in section 16, T14N, R8W, on the Clearlake 
Oaks map; and then
    (11) Proceed straight northeast 0.15 mile, returning to the 
beginning point.

[T.D. TTB-30, 70 FR 38001, July 1, 2005]



Sec.  9.190  Red Hill Douglas County, Oregon.

    (a) Name. The name of the viticultural area described in this 
section is ``Red Hill Douglas County, Oregon''. For purposes of part 4 
of this chapter, ``Red Hill Douglas County, Oregon'' is a term of 
viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the Red Hill Douglas County, Oregon viticultural area are three 
United States Geological Survey (USGS), 1:24,000 scale, topographic 
maps. They are:
    (1) Sutherlin, OR (Provisional edition 1988);
    (2) Scotts Valley, OR (Provisional edition 1987); and
    (3) Yoncalla, OR (Provisional edition 1987).
    (c) Boundary. The Red Hill Douglas County, Oregon viticultural area 
is located in Douglas County, Oregon, east of Interstate 5 near the 
hamlet of Rice Hill, between the villages of Yoncalla and Oakland.
    (1) Beginning on the Yoncalla map along the southern boundary of 
section 35, T23S/R5W, at the point where a pipeline crosses the T23S/
T24S township line, proceed due west 0.8 mile along the T23S/T24S 
township line to its intersection with the 800-foot contour line just 
west of Pollock Creek in section 34, T23S/R5W (Yoncalla Quadrangle); 
then
    (2) Proceed southerly along the meandering 800-foot contour line, 
cross onto the Sutherlin map in section 10, T24S/R5W, and continue 
westerly along the 800-foot contour line to its first intersection with 
the eastern boundary of section 8, T24S/R5W (Sutherlin Quadrangle); then
    (3) Proceed northerly along the meandering 800-foot contour line, 
return to the Yoncalla map in section 9, T23S/R5W, and continue 
northerly along the 800-foot contour line to its intersection with the 
T23S/T24S township line very near the northwest corner of section 4, 
T24S/R5W (Yoncalla Quadrangle); then
    (4) Proceed northeasterly along the 800-foot contour line, cross 
Wilson Creek in the northern portion of section 23, T23S/R5W, pass onto 
the Scotts Valley map at Section 14, T23S/R5W, and continue 
northeasterly along the 800-foot contour line to its intersection with 
the R4W/R5W range line, which at that point is also the eastern boundary 
of section 1, T23S/R5W (Scotts Valley Quadrangle); then
    (5) Proceed southwesterly along the 800-foot contour line, re-cross 
the R4W/R5W range line, and continue to the

[[Page 273]]

second intersection of the 800-foot contour line and the pipeline in 
section 1, T23/R5W (Scotts Valley Quadrangle); then
    (6) Proceed 5.75 miles southwesterly along the pipeline, cross 
Wilson Creek in section 24, T23S/R5W, return to the Yoncalla map in 
section 26, T23S/R5W, and continue southwesterly along the pipeline to 
the point of beginning at the intersection of the pipeline intersection 
and the T23S/T24S township line in section 35, T23S/R5W (Yoncalla 
Quadrangle).

[T.D. TTB-35, 70 FR 60001, Oct. 14, 2005]



Sec.  9.191  Ramona Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Ramona Valley''. For purposes of part 4 of this chapter, 
``Ramona Valley'' is a term of viticultural significance.
    (b) Approved Maps. The two United States Geological Survey 1:100,000 
scale topographic (30 x 60 Minute Quadrangle) maps used to determine the 
boundaries of the Ramona Valley viticultural area are titled--
    (1) Borrego Valley, California, 1982 edition; and
    (2) El Cajon, California, 1979 edition.
    (c) Boundary. The Ramona Valley viticultural area is located in 
central San Diego County, California. The area's boundaries are defined 
as follows--
    (1) Beginning in the southwest corner of the Borrego Valley map at 
the 882-meter (2,894-foot) peak of Woodson Mountain, T13S, R1W, proceed 
straight north-northwest approximately 3.25 miles to the 652-meter 
(2,140-foot) peak of Starvation Mountain, T13S, R1W (Borrego Valley 
map); then
    (2) Proceed straight east-northeast approximately 12.5 miles to the 
Gaging Station on the northwest shoreline of Sutherland Lake, T12S, R2E 
(Borrego Valley map); then
    (3) Proceed straight southeast approximately 4.4 miles to the 999-
meter (3,278-foot) peak of Witch Creek Mountain, T13S, R2E, east of 
Ballena Valley (Borrego Valley map); then
    (4) Proceed straight south-southeasterly approximately 6.6 miles, 
crossing onto the El Cajon map, to the summit of Eagle Peak (3,166 
feet), T14S, R3E, northeast of the El Capitan Reservoir (El Cajon map); 
then
    (5) Proceed straight west-southwest approximately 12.7 miles, 
passing through Barona Valley, to the peak (1,002 feet) near the center 
of the unnamed island in the San Vicente Reservoir, T14S, R1E (El Cajon 
map); then
    (6) Proceed straight northwesterly approximately 3.9 miles to the 
822-meter (2,697-foot) peak of Iron Mountain, T14S, R1W (El Cajon map); 
and
    (7) Proceed straight north-northwest approximately 2.8 miles, 
crossing onto the Borrego Valley map, and return to the beginning point 
at the peak of Woodson Mountain.

[T.D. TTB-39, 70 FR 72719, Dec. 7, 2005]



Sec.  9.192  Wahluke Slope.

    (a) Name. The name of the viticultural area described in this 
section is ``Wahluke Slope''. For purposes of part 4 of this chapter, 
``Wahluke Slope'' and ``Wahluke'' are terms of viticultural 
significance.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the Wahluke Slope viticultural area are eight United States 
Geological Survey 1:24,000 scale topographic maps. They are titled:
    (1) Beverly Quadrangle, Washington, 1965;
    (2) Beverly SE Quadrangle, Washington--Grant Co., 1965;
    (3) Smyrna Quadrangle, Washington--Grant Co., Provisional Edition 
1986;
    (4) Wahatis Peak Quadrangle, Washington--Grant Co., Provisional 
Edition 1986;
    (5) Coyote Rapids Quadrangle, Washington, Provisional Edition 1986;
    (6) Vernita Bridge Quadrangle, Washington, Provisional Edition 1986;
    (7) Priest Rapids NE Quadrangle, Washington, Provisional Edition 
1986; and
    (8) Priest Rapids Quadrangle, Washington, 1948; photo revised 1978.
    (c) Boundary. The Wahluke Slope viticultural area is located in 
Grant County, Washington. The boundary of the Wahluke Slope viticultural 
area is as described below:
    (1) The beginning point is at the northwest corner of the 
viticultural

[[Page 274]]

area where the east bank of the Columbia River intersects the north 
boundary line of section 22, T15N/R23E, on the Beverly map; then
    (2) From the beginning point proceed straight east 1.5 miles to the 
intersection of the section 23 north boundary line and the 1,480-foot 
elevation line, T15N/R23E, Beverly map; then
    (3) Proceed generally east along the meandering 1,480-foot elevation 
line, crossing the Beverly map, the Beverly SE map, and the Smyrna map, 
and continue onto the Wahatis Peak map to the intersection of the 1,480-
foot elevation line and the eastern boundary line of section 15, which 
forms a portion of the boundary line of the Hanford Site, T15N/R26E, 
Wahatis Peak map; then
    (4) Proceed generally southwest along the Hanford Site boundary in a 
series of 90 degree angles, crossing the Wahatis map, the Coyote Rapids 
map in section 36, T15N/R25E, and the Vernita Bridge map, and continue 
onto the Priest Rapids NE map to the intersection of the Hanford Site 
boundary and the north bank of the Columbia River, section 10, T13N/
R24E, Priest Rapids NE map; then
    (5) Proceed generally west along the north bank of the Columbia 
River, crossing onto the Priest Rapids map and, turning north-northwest, 
continue along the river bank and, crossing onto the Beverly map, return 
to the beginning point.

[T.D. TTB-40, 70 FR 72710, Dec. 7, 2005]



Sec.  9.193  Rattlesnake Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Rattlesnake Hills''. For purposes of part 4 of this 
chapter, ``Rattlesnake Hills'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundaries of the Rattlesnake Hills viticultural area are eight United 
States Geological Survey 1:24,000 scale topographic maps. They are 
titled:
    (1) Yakima East Quadrangle, Washington--Yakima Co., 1953, 
photorevised 1985;
    (2) Elephant Mountain Quadrangle, Washington--Yakima Co., 1953, 
photorevised 1985;
    (3) Granger NW Quadrangle, Washington--Yakima Co., 1965;
    (4) Granger NE Quadrangle, Washington--Yakima Co., 1964;
    (5) Sunnyside Quadrangle, Washington--Yakima Co., 1965, photorevised 
1978;
    (6) Granger Quadrangle, Washington--Yakima Co., 1965;
    (7) Toppenish Quadrangle, Washington--Yakima Co., 1958, photorevised 
1985; and
    (8) Wapato Quadrangle, Washington--Yakima Co., 1958, photorevised 
1985.
    (c) Boundary. The Rattlesnake Hills viticultural area is located in 
Yakima County, Washington. The area's boundary is defined as follows:
    (1) The beginning point is on the Yakima East map at the point where 
a line drawn straight east from the west end of the Wapato Dam on the 
Yakima River intersects Interstate Highway 82, section 17, T12N/R19E. 
This line coincides with the boundary of the Yakima Valley viticultural 
area (27 CFR 9.69). From the beginning point, the Rattlesnake Hills 
viticultural area boundary line--
    (2) Proceeds straight eastward, crossing onto the Elephant Mountain 
map, to the 2,192-foot peak of Elephant Mountain, section 16, T12N/R20E; 
then
    (3) Continues straight east-southeast, crossing over the northeast 
corner of the Toppenish map, and continuing onto the Granger NW map, to 
the 2,186-foot pinnacle of Zillah Peak, section 32, T12N/R21E; then
    (4) Continues straight eastward, crossing onto the Granger NE map, 
to the 3,021-foot peak of High Top Mountain, section 32, T12N/R22E; then
    (5) Continues straight east-southeast to the 2,879-foot peak in the 
northeast quadrant of section 3, T11N/R22E, and continues in the same 
direction in a straight line until the line intersects with the 
120[deg]00[min] west longitude line in section 1 of T11N/R22E along the 
east margin of the Granger NE map; then
    (6) Proceeds straight south along the 120[deg]00[min] west longitude 
line to its intersection with a set of power lines in section 24, T11N/
R22E, on the east margin of the Granger NE map; then
    (7) Follows the power lines southwest, crossing onto the Sunnyside 
map,

[[Page 275]]

to their intersection with the Sunnyside Canal, section 8, T10N/R22E; 
then
    (8) Follows the meandering Sunnyside Canal generally northwest, 
crossing over the northeast corner of the Granger map, and continuing 
over the Granger NW map, the Toppenish map, and onto the Wapato map to 
the canal's intersection with Interstate Highway 82, section 27 west 
boundary line, T12N/R19E; then
    (9) Follows Interstate Highway 82 northwest for 2.75 miles, crosses 
onto the Yakima East map, and returns to the beginning point.

[T.D. TTB-43, 71 FR 8211, Feb. 16, 2006]



Sec.  9.194  San Antonio Valley.

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

[[Page 276]]

and 2, T22S, R8E, on the Espinosa Canyon map, to a 1,811-foot peak 
located in section 2; then
    (11) Proceed southeast in a straight line for approximately 10.4 
miles across sections 2, 11, 12, and 13, T22S, R8E, and sections 18 and 
19, T22S, R9E, on the Espinosa Canyon map, sections 19, 30, 29, 32, and 
33, T22S, R9E, on the northwest corner of the Williams Hill map, and 
sections 4, 3, 10, 11, and 14, T23S, R9E, on the Hames Valley map, to 
the beginning point at the southeast corner of section 14, T23S, R9E.

[T.D. TTB-46, 71 FR 33242, June 8, 2006]



Sec.  9.195  Alta Mesa.

    (a) Name. The name of the viticultural area described in this 
section is ``Alta Mesa''. For purposes of part 4 of this chapter, ``Alta 
Mesa'' is a term of viticultural significance.
    (b) Approved maps. The seven United States Geological Survey, 
1:24,000 scale, topographic quadrangle maps used to determine the 
boundary of the Alta Mesa viticultural area are titled--
    (1) North Lodi, Calif., 1968, photorevised 1976;
    (2) Galt, Calif., 1968, photorevised 1980;
    (3) Florin, Calif., 1968, photorevised 1980;
    (4) Elk Grove, Calif., 1968, photorevised 1979;
    (5) Sloughhouse, Calif., 1968, photorevised 1980, minor revision 
1993;
    (6) Clay, Calif., 1968, photorevised 1980, minor revision 1993; and
    (7) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993.
    (c) Boundary. The Alta Mesa viticultural area is located in 
Sacramento County, California, and is entirely within the Lodi 
viticultural area (27 CFR 9.107). The Alta Mesa viticultural area 
boundary is as follows:
    (1) The beginning point is on the Lodi North map at the intersection 
of Kost Road and the Southern Pacific railway, section 34, T5N, R6E. 
From the beginning point, proceed north-northwest 8.7 miles along the 
Southern Pacific railway to its intersection with State Route 99 at 
McConnel, section 20, T6N, R6E (Galt Quadrangle); then
    (2) Proceed northwest 4.7 miles on State Route 99 to its 
intersection with Sheldon Road at the northern boundary of section 26, 
T7N, R5E (Florin Quadrangle); then
    (3) Proceed east 5.2 miles on Sheldon Road to its intersection with 
the Central California Traction railroad at the northern boundary of 
section 27, T7N, R6E (Elk Grove Quadrangle); then
    (4) Proceed southeast 3.85 miles along the Central California 
Traction railroad to Grant Line Road, then southwest on Grant Line Road 
to Wilton Road at the hamlet of Sheldon, and then continue southeast on 
Wilton Road to its intersection with Dillard Road, section 6, T6N, R7E 
(Elk Grove Quadrangle); then
    (5) Proceed northeast 2.6 miles on Dillard Road to its intersection 
with Lee Shorthorn Road, T7N, R7E (Sloughhouse Quadrangle); then
    (6) Proceed southeast 0.9 mile on Lee Shorthorn Road to its 
intersection with Tavernor Road, T7N, R7E (Sloughhouse Quadrangle); then
    (7) Proceed south 0.95 mile on Tavernor Road to its first 90 degree 
turn to the west (where two unimproved roads join Tavernor Road from the 
east and south), section 4, T6N, R7E (Sloughhouse Quadrangle); then
    (8) Continue due south 1 mile in a straight line to the line's 
intersection with the 105-foot contour line and an unimproved extension 
of Blake Road, section 9, T6N, R7E (Sloughhouse Quadrangle); then
    (9) Proceed west 0.3 mile on the unimproved extension of Blake Road 
to its intersection with Tavernor Road, section 9, T6N, R7E (Sloughhouse 
Quadrangle); then
    (10) Proceed south 0.7 mile on Tavernor Road to the center of the 
loop at the end of the road, section 16, T6N, R7E (Sloughhouse 
Quadrangle); then
    (11) Proceed southwest in a straight line for 0.1 mile to the line's 
intersection with the east end of the landing strip shown in the 
northwest quadrant of section 16, T6N, R7E (Sloughhouse Quadrangle); 
then
    (12) Proceed west along the landing strip and a line extending from 
its western end to the line's intersection with Alta Mesa Road on the 
eastern boundary of section 17, T6N, R7E (Sloughhouse Quadrangle); then

[[Page 277]]

    (13) Proceed south 6.1 miles on Alta Mesa Road, crossing State Route 
104, to Alta Mesa Road's intersection with Borden Road at the southwest 
corner of section 9, T5N, R7E (Clay Quadrangle); then
    (14) Proceed east 1 mile on Borden Road to its intersection with 
Alabama Road at the southeast corner of section 9, T5N, R7E (Clay 
Quadrangle); then
    (15) Proceed south 2 miles on Alabama Road to its intersection with 
Simmerhorn Road at the southeast corner of section 21, T5N, R7E (Clay 
Quadrangle); then
    (16) Proceed east 2 miles on Simmerhorn Road to its intersection 
with Clay Station Road at the northeast corner of section 26, T5N, R7E 
(Clay Quadrangle); then
    (17) Proceed south 0.5 mile on Clay Station Road to its intersection 
with Dry Creek, section 26, T5N, R7E (Clay Quadrangle); then
    (18) Proceed west-southwest (downstream) 7.8 miles along Dry Creek, 
crossing over the northwest corner of the Lockeford map, and twice 
crossing over the southeast corner of the Galt map, to Dry Creek's 
intersection with Lincoln Way, section 35, T5N, R6E (Lodi North 
Quadrangle); then
    (19) Proceed northwest 0.1 mile on Lincoln Way to its intersection 
with Kost Road, section 35, T5N, R6E (Lodi North Quadrangle); and
    (20) Proceed west 0.3 mile on Kost Road, returning to the beginning 
point.

[T.D. TTB-50, 71 FR 40414, July 17, 2006]



Sec.  9.196  Borden Ranch.

    (a) Name. The name of the viticultural area described in this 
section is ``Borden Ranch''. For purposes of part 4 of this chapter, 
``Borden Ranch'' is a term of viticultural significance.
    (b) Approved maps. The six United State Geological Survey, 1:24,000 
scale, topographic quadrangle maps used to determine the boundary of the 
Borden Ranch viticultural area are titled--
    (1) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993;
    (2) Clay, Calif., 1968, photorevised 1980, minor revision 1993;
    (3) Sloughhouse, Calif., 1968, photorevised 1980, minor revision 
1993;
    (4) Carbondale, Calif., 1968, photorevised 1980, minor revision 
1993;
    (5) Goose Creek, Calif., 1968, photorevised 1980, minor revision 
1993; and
    (6) Clements, Calif., 1968, minor revision 1993.
    (c) Boundary. The Borden Ranch viticultural area is located in 
Sacramento and San Joaquin Counties, California, and is entirely within 
the Lodi viticultural area (27 CFR 9.107). The Borden Ranch viticultural 
area boundary is as follows:
    (1) The beginning point is on the Lockeford map at the intersection 
of Liberty Road and Elliott Road at the southwest corner of section 36, 
T5N, R7E. From the beginning point, proceed north 2 miles on Elliot 
Road, which becomes Clay Station Road upon crossing the Sacramento-San 
Joaquin County line at Dry Creek, to Clay Station Road's intersection 
with Simmerhorn Road, at the southeast corner of section 23, T5N, R7E 
(Clay Quadrangle); then
    (2) Proceed west 2 miles on Simmerhorn Road to its intersection with 
Alabama Road at the southwest corner of section 22, T5N, R7E (Clay 
Quadrangle); then
    (3) Proceed north 2 miles on Alabama Road to its intersection with 
Borden Road at the northwest corner of section 15, T5N, R7E (Clay 
Quadrangle); then
    (4) Proceed west 1 mile on Borden Road to its intersection with Alta 
Mesa Road at the southwest corner of section 9, T5N, R7E (Clay 
Quadrangle); then
    (5) Proceed north 1.35 miles on Alta Mesa Road, crossing State Route 
104, to Alta Mesa Road's intersection with the Laguna tributary along 
the western boundary line of section 4, T5N, R7E (Clay Quadrangle); then
    (6) Proceed easterly (upstream) about 16.5 miles along the 
meandering Laguna tributary, crossing over the southeast corner of the 
Sloughhouse map, to the Laguna's intersection with the Sacramento-Amador 
County line, 0.75 mile south of the Ione Road, T6N, R9E (Carbondale 
Quadrangle); then
    (7) Proceed south and then southeast about 10.8 miles along the 
Sacramento-Amador and Sacramento-San Joaquin

[[Page 278]]

County lines, crossing over the Goose Creek map, to the County line's 
intersection with Liberty Road, section 32, T5N, R9E (Clements 
Quadrangle); and
    (8) Proceed west about 9.3 miles west along Liberty Road, returning 
to the beginning point.

[T.D. TTB-50, 71 FR 40414, July 17, 2006]



Sec.  9.197  Clements Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Clements Hills''. For purposes of part 4 of this chapter, 
``Clements Hills'' is a term of viticultural significance.
    (b) Approved maps. The six United States Geological Survey 1:24,000 
scale, topographic quadrangle maps used to determine the boundary of the 
Clements Hills viticultural area are titled--
    (1) Waterloo, Calif., 1968, photoinspected 1978;
    (2) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993;
    (3) Clements, Calif., 1968, minor revision 1993;
    (4) Wallace, Calif., 1962;
    (5) Valley Springs SW., Calif., 1962, photoinspected 1973; and
    (6) Linden, Calif., 1968, minor revision 1993.
    (c) Boundary. The Clements Hills viticultural area is located in San 
Joaquin County, California, and is entirely within the Lodi viticultural 
area (27 CFR 9.107). The Clements Hills viticultural areas boundary is 
as follows--
    (1) The beginning point is on the Waterloo map at the intersection 
of the Calaveras River and Jack Tone Road, section 31 west boundary 
line, T3N, R8E. From the beginning point, proceed north 6.9 miles on 
Jack Tone Road to its intersection with Elliot Road in the village of 
Lockeford (where Jack Tone Road is known as E. Hammond Street for a 
short distance), section 30, T4N, R8E (Lockeford Quadrangle); then
    (2) Proceed northwest 5.4 miles on Elliott Road, crossing the 
Mokelumne River, to Elliott Road's intersection with Liberty Road at the 
northwest corner of section 1, T4N, R7E, (Lockeford Quadrangle); then
    (3) Proceed east 9.3 miles on Liberty Road to its junction with the 
San Joaquin-Amador County line, north of the Camanche Reservoir, section 
32, T5N, R9E (Clements Quadrangle); then
    (4) Proceed south-southeast 13 miles along the San Joaquin-Amador 
and San Joaquin-Calaveras County lines, crossing over the Wallace map, 
to the County line's intersection with the Calaveras River, section 31, 
T3N, R10E (Valley Springs SW., Quadrangle); and
    (5) Proceed southwest (downstream) 14.2 miles along the Calaveras 
River, crossing over the Linden map, returning to the beginning point.

[T.D. TTB-50, 71 FR 40414, July 17, 2006]



Sec.  9.198  Cosumnes River.

    (a) Name. The name of the viticultural area described in this 
section is ``Cosumnes River''. For purposes of part 4 of this chapter, 
``Cosumnes River'' and ``Cosumnes'' are terms of viticultural 
significance.
    (b) Approved maps. The six United States Geological Survey, 1:24,000 
scale, topographic quadrangle maps used to determine the boundary of the 
Cosumnes River viticultural area are titled--
    (1) Bruceville, Calif., 1968, photorevised 1980;
    (2) Florin, Calif., 1968, photorevised 1980;
    (3) Elk Grove, Calif., 1968, photorevised 1979;
    (4) Galt, Calif., 1968, photorevised 1980;
    (5) Lodi North, Calif.,1968, photorevised 1976; and
    (6) Thornton, Calif., 1978.
    (c) Boundary. The Cosumnes River viticultural area is located in 
Sacramento County, California, and is entirely within the Lodi 
viticultural area (27 CFR 9.107). The Cosumnes River viticultural area 
boundary is as follows--
    (1) The beginning point is on the Bruceville map at the intersection 
of the Mokelumne River and Interstate Highway 5, T5N, R5E. From the 
beginning point, proceed north 8.5 miles along Interstate 5 to its 
intersection with an unnamed light duty road, locally known to the west 
of Franklin as Hood-Franklin Road, section 18, T6N, R5E (Florin 
Quadrangle); then
    (2) Proceed east 1.2 miles straight on Hood-Franklin Road to its 
intersection

[[Page 279]]

with Franklin Boulevard in the village of Franklin, section 17, T6N, R5E 
(Florin Quadrangle); then
    (3) Proceed north 4.3 miles on Franklin Boulevard to its 
intersection with Sims Road on the west and Sheldon Road to the east at 
the northwest corner of section 28, T7N, R5E (Florin Quadrangle); then
    (4) Proceed east 2.4 miles on Sheldon Road to its intersection with 
State Route 99 at the northern boundary section 26, T7N, R5E (Florin 
Quadrangle); then
    (5) Proceed south-southeast 6 miles on State Route 99, crossing over 
the Elk Grove map, to the road's intersection with the Southern Pacific 
railway line at McConnell, section 20, T6N, R6E (Galt Quadrangle); then
    (6) Proceed south-southeast 8.7 miles along the Southern Pacific 
railway line to its intersection with Kost Road, section 34, T5N, R6E 
(Lodi North Quadrangle); then
    (7) Proceed west and then north 3.8 miles on Kost Road to its 
intersection with New Hope Road, T5N, R6E (Lodi North Quadrangle); then
    (8) Proceed west then south 2.8 miles on New Hope Road to its 
intersection with the Mokelumne River and the Sacramento-San Joaquin 
County line, T5N, R5E (Thornton Quadrangle); and
    (9) Proceed northerly then westerly (downstream) for about 2.7 miles 
along the meandering Mokelumne River, returning to the beginning point.

[T.D. TTB-50, 71 FR 40414, July 17, 2006]



Sec.  9.199  Jahant.

    (a) Name. The name of the viticultural area described in this 
section is ``Jahant''. For purposes of part 4 of this chapter, 
``Jahant'' is a term of viticultural significance.
    (b) Approved maps. The five United States Geological Survey, 1:24000 
scale, topographic quadrangle maps used to determine the boundary of the 
Jahant viticultural area are titled--
    (1) Lodi North, Calif., 1968, photorevised 1976;
    (2) Thornton, Calif., 1978;
    (3) Galt, Calif., 1968, photorevised 1980;
    (4) Lockeford, Calif., 1968, photorevised 1979; and
    (5) Clay, Calif., 1968, photorevised 1980, minor revision 1993.
    (c) Boundary. The Jahant viticultural area is located in Sacramento 
and San Joaquin Counties, California, and is entirely with the Lodi 
viticultural area (27 CFR 9.107). The Jahant viticultural area boundary 
is as follows--
    (1) The beginning point is on the Lodi North map at the intersection 
of Peltier Road and the Mokelumne River, section 16 south boundary line, 
T4N, R6E. From the beginning point, proceed westerly (downstream) 6.7 
miles along the Mokelumne River to its intersection with New Hope Road, 
about 0.7 mile north of the village of Thornton, T5N, R5E (Thornton 
Quadrangle); then
    (2) Proceed north then east for 3 miles on New Hope Road to its 
intersection with Kost Road, T5N, R6E (Lodi North Quadrangle); then
    (3) Proceed south then east for 4.1 miles on Kost Road to its 
intersection with Lincoln Way, section 35, T5N, R6E (Lodi North 
Quadrangle); then
    (4) Proceed southeast 0.15 mile on Lincoln Way to its intersection 
with Dry Creek, section 35, T5N, R6E (Lodi North Quadrangle); then
    (5) Proceed easterly (upstream) 7 miles along Dry Creek, crossing 
twice over and back at the southeast corner of the Galt map, and then 
crossing over the northwest corner of the Lockeford map, to Dry Creek's 
intersection with Elliott Road, section 26, T5N, R7E (Clay Quadrangle); 
then
    (6) Proceed south 4.5 miles on Elliott Road to its intersection with 
Peltier Road at the southeast corner of section 14, T4N, R7E (Lockeford 
Quadrangle); and
    (7) Proceed west 8.3 miles on Peltier Road, returning to the 
beginning point.

[T.D. TTB-50, 71 FR 40414, July 17, 2006]



Sec.  9.200  Mokelumne River.

    (a) Name. The name of the viticultural area described in this 
section is ``Mokelumne River''. For purposes of part 4 of this chapter, 
``Mokelumne River'' and ``Mokelumne'' are terms of viticultural 
significance.
    (b) Approved maps. The seven United States Geological Survey, 
1:24,000 scale, topographic quadrangle maps used to determine the 
boundary of the

[[Page 280]]

Mokelumne River viticultural area are titled--
    (1) Lodi South, Calif., 1968, photorevised 1976;
    (2) Terminous, Calif., 1978, minor revision 1993;
    (3) Thornton, Calif., 1978;
    (4) Bruceville, Calif., 1968, photorevised 1980;
    (5) Lodi North, Calif., 1968, photorevised 1976;
    (6) Lockeford, Calif., 1968, photorevised 1979, minor revision 1993; 
and
    (7) Waterloo, Calif., edition of 1968, photoinspected 1978.
    (c) Boundary. The Mokelumne River viticultural area is located in 
San Joaquin County, California, and is entirely within the Lodi 
viticultural area (27 CFR 9.107). The Mokelumne River viticultural area 
boundary is as follows--
    (1) The beginning point is on the Lodi South map at the intersection 
of Eightmile Road and Interstate 5, section 36 south boundary line, T3N, 
R5E. From the beginning point, proceed north-northwest 14.7 miles on 
Interstate 5, crossing over the Terminous and Thornton maps, to the 
Interstate's intersection with the Mokelumne River, T5N, R6E (Bruceville 
Quadrangle); then
    (2) Proceed southeast (upstream) 5 miles along the meandering 
Mokelumne River to its intersection with Peltier Road, section 16, T4N, 
R6E (Lodi North Quadrangle); then
    (3) Proceed east 8.3 miles along Peltier Road to its intersection 
with Elliott Road at the northeast corner of section 23, T4N, R7E 
(Lockeford Quadrangle); then
    (4) Proceed south then southeast 2.3 miles on Elliott Road to its 
intersection with Jack Tone Road in the village of Lockeford (where Jack 
Tone Road is known as E. Hammond Street for a short distance), section 
30, T4N, R8E (Lockeford Quadrangle); then
    (5) Proceed south 6.7 miles on Jack Tone Road to its intersection 
with the Calaveras River, section 36 east boundary line, T3N, R7E 
(Waterloo Quadrangle); then
    (6) Proceed southwesterly (downstream) 0.9 mile along the meandering 
Calaveras River to its intersection with Eightmile Road, section 36 
south boundary line, T3N, R7E (Waterloo Quadrangle); and
    (7) Proceed west 8.6 miles on Eightmile Road, returning to the 
beginning point.

[T.D. TTB-50, 71 FR 40414, July 17, 2006]



Sec.  9.201  Sloughhouse.

    (a) Name. The name of the viticultural area described in this 
section is ``Sloughhouse''. For purposes of part 4 of this chapter, 
``Sloughhouse'' is a term of viticultural significance.
    (b) Approved maps. The six United States Geological Survey, 1:24,000 
scale, topographic quadrangle maps used to determine the boundary of the 
Sloughhouse viticultural area are titled--
    (1) Clay, Calif., 1968, photorevised 1980, minor revision 1993;
    (2) Sloughhouse, Calif., 1968, photorevised 1980, minor revision 
1993;
    (3) Elk Grove, Calif., 1968, photorevised 1979;
    (4) Buffalo Creek, Calif., 1967, photorevised 1980;
    (5) Folsom SE, Calif., 1954, photorevised 1980; and
    (6) Carbondale, Calif., 1968, photorevised 1980, minor revision 
1993.
    (c) Boundary. The Sloughhouse viticultural area is located in 
Sacramento County, California, and is entirely within the Lodi 
viticultural area (27 CFR 9.107). The Sloughhouse viticultural area 
boundary is as follows--
    (1) The beginning point is on the Clay map at the intersection of 
the Laguna estuary and Alta Mesa Road, on the western boundary of 
section 4, T5N, R7E. From the beginning point, proceed north 4.8 miles 
on Alta Mesa Road to the road's intersection with a line drawn due west 
from the western end of the landing strip shown in the northwestern 
quadrant of section 16, T6N, R7E (Sloughhouse Quadrangle); then
    (2) Proceed east 0.5 mile to the eastern end of the landing strip, 
section 16, T6N, R7E (Sloughhouse Quadrangle); then
    (3) Proceed northeast in a straight line 0.1 mile to the center of 
the loop at the south end of Tavernor Road, section 16, T6N, R7E 
(Sloughhouse Quadrangle); then

[[Page 281]]

    (4) Proceed north 0.75 mile on Tavernor Road to its intersection 
with Blake Road, section 9, T6N, R7E (Sloughhouse Quadrangle); then
    (5) Proceed east 0.5 mile on the unimproved extension of Blake Road 
to its intersection with the 105-foot elevation line, section 9, T6N, 
R7E (Sloughhouse Quadrangle); then
    (6) Proceed due north about 0.85 mile to the 90 degree turn in 
Tavernor Road and continue north about 0.9 mile on Tavernor Road to its 
intersection with Lee Shorthorn Road, T7N, R7E (Sloughhouse Quadrangle); 
then
    (7) Proceed northwest 0.9 mile on Lee Shorthorn Road to its 
intersection with Dillard Road, T7N, R7E (Sloughhouse Quadrangle); then
    (8) Proceed southwest about 2.6 miles on Dillard Road to its 
intersection with Wilton Road at the hamlet of Dillard, section 6, T6N, 
R7E (Elk Grove Quadrangle); then
    (9) Proceed northwest 3.1 miles on Wilton Road to its intersection 
with Grant Line Road at the hamlet of Sheldon, section 27, T7N, R6E (Elk 
Grove Quadrangle); then
    (10) Proceed northwest on Grant Line Road to its intersection with 
State Route 16 (Jackson Road), section 33, T8N, R7E (Buffalo Creek 
Quadrangle); then
    (11) Proceed east-southeast 1.6 miles on State Route 16 to its 
intersection with Deer Creek at BM 108 near Sloughhouse, T8N, R7E 
(Sloughhouse Quadrangle); then
    (12) Proceed northeasterly (upstream) about 11 miles along the 
meandering Deer Creek, crossing over the southeast corner of the Buffalo 
Creek map, to the creek's intersection with the Sacramento-El Dorado 
County line, section 1, T8N, R8E (Folsom, S.E. Quadrangle); then
    (13) Proceed south-southeast followed by south for about 12.4 miles 
along the Sacramento-El Dorado and Sacramento-Amador County line to the 
County line's intersection with the Laguna estuary, 0.75 mile south of 
the Ione Road, T6N, R9E (Carbondale Quadrangle); and
    (14) Proceed westerly (downstream) 17.5 miles along the meandering 
Laguna estuary, crossing over the Sloughhouse map, and return to the 
beginning point on the Clay Quadrangle.

[T.D. TTB-50, 71 FR 40414, July 17, 2006]



Sec.  9.202  Eola-Amity Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Eola-Amity Hills''. For purposes of part 4 of this chapter, 
``Eola-Amity Hills'' is a term of viticultural significance.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Eola-Amity Hills viticultural area are six United States 
Geological Survey 1:24,000 scale topographic maps. They are titled--
    (1) Rickreall, Oregon, 1969, photorevised 1976;
    (2) Salem West, Oregon, 1969, photorevised 1986;
    (3) Mission Bottom, Oregon, 1957, revised 1993;
    (4) Dayton, Oregon, 1957, revised 1992;
    (5) McMinnville, Oregon, 1957, revised 1992; and
    (6) Amity, Oregon, 1957, revised 1993.
    (c) Boundary. The Eola-Amity Hills viticultural area is located in 
the State of Oregon, within Polk and Yamhill Counties, and is entirely 
within the Willamette Valley viticultural area. The area's boundary is 
defined as follows--
    (1) The beginning point is on the Rickreall, Oregon, map, at the 
intersection of State Highways 22 and 223;
    (2) From the beginning point, proceed east on State Highway 22 to 
its intersection with Doaks Ferry Road on the Salem West, Oregon, map; 
then
    (3) Proceed northeast on Doaks Ferry Road to its intersection with 
the 200-foot contour line southeast of Gibson Gulch, in section 65; then
    (4) Follow the 200-foot contour line in a westerly loop until it 
rejoins Doaks Ferry Road; then
    (5) Continue north on Doaks Ferry Road to its intersection with 
State Highway 221; then
    (6) Continue north on State Highway 221 to its intersection with the 
200-foot contour line at the point where the contour line departs from 
Highway 221 and runs southwest along the southern edge of Spring Valley 
(section 53 on the Mission Bottom, Oregon, map); then

[[Page 282]]

    (7) Follow the 200-foot contour line first south onto the Salem 
West, Oregon, map, then northwest around the southern and western edge 
of Spring Valley and back on to the Mission Bottom, Oregon, map; then
    (8) Continue to follow the 200-foot contour line generally north on 
the Mission Bottom, Oregon, map, crossing onto and back from the Amity, 
Oregon, map and continue past the Yamhill County line and onto the 
Dayton, Oregon, map; then
    (9) Follow the 200-foot contour line from the Dayton, Oregon, map 
onto the McMinnville, Oregon, map and back to the Dayton, Oregon, map 
and continue around the northeast edge of the Amity Hills spur of the 
Eola Hills; then
    (10) Follow the 200-foot contour line onto the McMinnville, Oregon, 
map as it continues around the northern and western periphery of the 
Amity Hills spur; then
    (11) Follow the 200-foot contour line onto the Amity, Oregon, map as 
it heads first south, then generally southeast, then generally south, 
along the western edge of the Eola Hills until it intersects Old Bethel 
Road at a point just north of the Polk County line; then
    (12) Follow Old Bethel Road, which becomes Oak Grove Road, south 
until it intersects with the 200-foot contour line just northwest of the 
township of Bethel; then
    (13) Follow the 200-foot contour line around in a southeasterly loop 
until it again intersects Oak Grove Road where Oak Grove and Zena Roads 
intersect; then
    (14) Follow Oak Grove Road south until it intersects with Frizzell 
Road; then
    (15) Follow Frizzell Road west for three-tenths mile until it 
intersects with the 200-foot contour line; then
    (16) Follow the 200-foot contour line generally south until it 
intersects with the beginning point.

[T.D. TTB-51, 71 FR 40404, July 17, 2006]



Sec.  9.203  Saddle Rock-Malibu.

    (a) Name. The name of the viticultural area described in this 
section is ``Saddle Rock-Malibu''. For purposes of part 4 of this 
chapter, ``Saddle Rock-Malibu'' is a term of viticultural significance.
    (b) Approved Map. The following United States Geological Survey, 
1:24,000 scale, topographic map is used to determine the boundary of the 
Saddle Rock-Malibu viticultural area: Point Dume Quadrangle California, 
7.5-Minute Series (Orthophotoquad), 1995.
    (c) Boundary. The Saddle Rock-Malibu viticultural area is located in 
Los Angeles County, California. The boundary of the Saddle Rock-Malibu 
viticultural area is as described below:
    (1) The beginning point is on the Point Dume map at the intersection 
of Decker Road and Mulholland Highway, section 3, T1S/R19W;
    (2) From the beginning point, proceed north-northeast along Decker 
Road approximately 0.7 mile to its intersection with the southern 
boundary of the El Conejo land grant, section 3, T1S/R19W; then
    (3) Proceed straight east-southeast along the El Conejo land grant 
boundary line approximately 0.4 mile to the point where the land grant 
boundary line changes direction to the northeast, section 2, T1S/R19W; 
then
    (4) Proceed straight northeast for approximately 0.5 mile along the 
El Conejo land grant boundary line to its second intersection with the 
1,700-foot contour line in section 2, T1S/R19W; then
    (5) Proceed southeasterly along the meandering 1,700-foot contour 
line, crossing the R19W/R18W range line near the southwest corner of 
section 6, T1S/R18W, and continue along the 1,700-foot contour line to 
its intersection with Kanan Road near the southwest corner of section 6, 
T1S/R18W; then
    (6) Proceed south along Kanan Road approximately 0.35 mile to its 
intersection with the 1,800-foot contour line (very near the 
intersection of Kanan Road and an unnamed unimproved road), section 7, 
T1S/R18W; then
    (7) Proceed southeasterly along the meandering 1,800-foot contour 
line to a point approximately 200 feet due north of the intersection of 
Mulholland Highway and two unnamed, unimproved roads near the center of 
section 7, T1S/R18W, and, from that point, proceed due south in a 
straight line to the

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intersection of Mulholland Highway and the two unnamed, unimproved 
roads, section 7, T1S/R18W; then
    (8) Following the eastern-most unimproved road, proceed southerly 
along the meandering unimproved road, passing to the west of a 2,054-
foot peak, and continue to the road's intersection with another unnamed, 
unimproved road immediately south of the section 18 north boundary line 
and due east of a 2,448-foot peak, section 18, T1S/R18W; then
    (9) Proceed southwesterly along the unnamed, unimproved road to its 
intersection with the Latigo Canyon Road, just east of BM 2125, section 
18, T1S/R18W; then
    (10) Proceed northerly then westerly along Latigo Canyon Road to its 
intersection with Kanan Road very near the southeast corner of section 
12, T1S/R19W; then
    (11) Proceed south along Kanan Road for approximately 0.6 mile to 
its intersection with the 1,700-foot contour line, located immediately 
south of the four-way intersection of two unnamed, unimproved roads and 
Kanan Road, section 13, T1S/R19W; then
    (12) Proceed 1.5 miles generally west and northwest along the 
unnamed, unimproved road that meanders westerly, crossing over several 
intermittent streams, and continues through Zuma Canyon to its 
intersection with Encinal Canyon Road at about the 1,806-foot elevation 
mark, section 11, T1S/R19W; then
    (13) Crossing Encinal Canyon Road, proceed northwesterly along the 
unnamed, unimproved road, which becomes a trail, and continue northerly 
to the trail's intersection with the 1,900-foot contour line, near the 
center of section 11, T1S/R19W; then
    (14) Proceed northwesterly along the meandering 1,900-foot contour 
line, circling to the west of the 2,189-foot peak in section 11, to the 
contour line's intersection with Mulholland Highway at the northern 
boundary of section 11, T1S/R19W; then
    (15) Proceed westerly about 0.8 mile on Mulholland Highway and 
return to the beginning point.

[T.D. TTB-52, 71 FR 40400, July 17, 2006]



Sec.  9.204  Tracy Hills.

    (a) Tracy Hills. The name of the viticultural area described in this 
section is ``Tracy Hills''. For purposes of part 4 of this chapter, 
``Tracy Hills'' is a term of viticultural significance.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Tracy Hills viticultural area are five USGS 1:24,000-scale, 
topographic maps. They are titled:
    (1) Tracy, Calif., 1954, photorevised 1981;
    (2) Vernalis, CA, 1991;
    (3) Solyo, Calif., 1953, photorevised 1971, photoinspected 1978;
    (4) Lone Tree Creek, Calif., 1955, photorevised 1971; and
    (5) Midway Calif., 1953, photorevised 1980.
    (c) Boundary. The Tracy Hills viticultural area is located in 
southwestern San Joaquin County and northwestern Stanislaus County in 
the State of California. The boundary of the Tracy Hills viticultural 
area is as described below.
    (1) The beginning point is on the Tracy map at the intersection of 
the Delta-Mendota Canal and Lammers Ferry Road, along the western 
boundary line of section 6, T3S/R5E. From the beginning point, proceed 
0.4 mile generally southeast along the Delta-Mendota Canal to its 
intersection with the Western Pacific Railway line along the southern 
boundary line of section 6, T3S/R5E (Tracy map); then
    (2) Proceed 5.6 miles straight east along the Western Pacific 
Railway line and then along Linne Road to the intersection of Linne Road 
and Lehman Road, along the northern boundary line of section 12, T3S/R5E 
(Vernalis map); then
    (3) Proceed 1.5 miles straight south and then east along Lehman Road 
to its intersection with Bird Road at the southeast corner of section 
12, T3S/R5E (Vernalis map); then
    (4) Proceed 1 mile straight south along Bird Road to its 
intersection with Durham Ferry Road at the southeast corner of section 
13, T3S/R5E (Vernalis map); then
    (5) Proceed 1.9 miles straight east along Durham Ferry Road to its 
intersection with State Highway 33 along

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the northern boundary line of section 20, T3S/R6E (Vernalis map); then
    (6) Proceed 5.1 miles straight southeast along State Highway 33, 
passing the hamlet of Vernalis, to the highway's intersection with 
McCracken Road along the eastern boundary of section 2, T4S/R6E (Solyo 
map); then
    (7) Proceed 3.4 miles straight south along McCracken Road to its 
intersection with Hamilton Road at the southeast corner of section 23, 
T4S/R6E (Solyo map); then
    (8) Proceed 2.4 miles straight west along the southern boundary 
lines of sections 23, 22, and 21, T4S/R6E, crossing the Delta-Mendota 
Canal and the California Aqueduct, to the junction of the southern 
boundary of section 21, the 500-foot elevation line, and the westernmost 
transmission line, (Solyo map); then
    (9) Proceed 4.2 miles generally northwest along the meandering 500-
foot elevation line to section 18, T4S/R6E, where the 500-foot elevation 
line crosses all the transmission lines and then continues northwest a 
short distance to the easternmost transmission line in the northwest 
quadrant of section 18, T4S/R6E, (Solyo map); then
    (10) Proceed 8.45 miles straight northwest along the easternmost 
transmission line, crossing from the Solyo map, over the Lone Tree Creek 
map, to the Tracy map, and continue to the transmission line's 
intersection with the western boundary of section 19, T3S/R5W, about 0.7 
mile north-northeast of Black Butte (Tracy map); then
    (11) Proceed in a straight line 2 miles northwest to this line's 
intersection with the 500-foot elevation line, immediately north of an 
unimproved dirt road, just north of the midpoint of the western boundary 
line of section 12, T3S/R4E (Tracy map); then
    (12) Proceed 0.65 mile straight north along the western boundaries 
of section 12 and then section 1 to the section 1 line's intersection 
with Interstate Highway 580 (I-580), section 1, T3S/R4E (Tracy map); 
then
    (13) Proceed 0.8 mile straight northwest along I-580 to its 
intersection with the Western Pacific Railway line in section 2, T3S/R4E 
(Midway map); then
    (14) Proceed easterly 0.7 mile along the Western Pacific Railway 
line to its intersection with the eastern boundary line of section 2, 
T3S/R4E (Tracy map); and
    (15) Proceed east for 1 mile in a straight line, returning to the 
beginning point.

[T.D. TTB-54, 71 FR 65411, Nov. 8, 2006]



Sec.  9.205  Chehalem Mountains.

    (a) Name. The name of the viticultural area described in this 
section is ``Chehalem Mountains''. For purposes of part 4 of this 
chapter, ``Chehalem Mountains'' is a term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the boundary 
of the Chehalem Mountains viticultural area are six United States 
Geological Survey 1:24,000 scale topographic maps. They are titled:
    (1) Newberg Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1985);
    (2) Dundee Quadrangle, Oregon, 7.5 Minute Series, 1956 (revised 
1993);
    (3) Laurelwood Quadrangle, Oregon, 7.5 Minutes Series 1956 (revised 
1992);
    (4) Scholls Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1985);
    (5) Beaverton Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1984); and
    (6) Sherwood Quadrangle, Oregon, 7.5 Minute Series, 1961 
(photorevised 1985).
    (c) Boundary. The Chehalem Mountains viticultural area is located in 
Clackamas, Yamhill, and Washington Counties, Oregon. The boundary of the 
Chehalem Mountains viticultural area is as described below:
    (1) The beginning point is in Yamhill County on the Newberg map in 
section 15, T3S/R2W, at the intersection of Oregon Highway 99W and the 
250-foot contour line, 0.4 mile east of Spring Brook;
    (2) From the beginning point, proceed northwesterly 1.2 miles along 
the 250-foot contour to its intersection with an unnamed light-duty road 
locally known as Benjamin Road, section 50, T3S/R2W, Newberg map; then
    (3) Proceed west 0.5 mile along Benjamin Road, crossing railroad 
tracks, to its intersection with an unnamed light-duty road locally 
known as Spring Brook Road, section 48, T3S/R2W, Newberg map; then

[[Page 285]]

    (4) Proceed southwest 0.3 mile along Spring Brook Road, parallel to 
the railroad tracks, to its intersection with an unnamed light-duty road 
locally known as Mountainview Drive, section 48, T3S/R2W, on the Newberg 
map; then
    (5) Proceed west 0.35 mile on Mountainview Drive to its intersection 
with an unnamed light-duty road locally known as Aspen Way, along the 
western boundary of section 8, T3S/R2W, Newberg map; then
    (6) Proceed northwesterly 1.4 miles on Aspen Way to its intersection 
with Bell Road, along the northern boundary of section 47, T3S/R2W, 
Newberg map; then
    (7) Proceed west 0.8 mile on Bell Road, which becomes North Valley 
Road after crossing Oregon Highway 219, to its intersection with the 
250-foot contour line, immediately before an unimproved dirt road on the 
left, section 46, T3S/R2W, Newberg map; then
    (8) Proceed westerly 2 miles along the 250-foot contour line to its 
first intersection with the western boundary line of section 43, T3S/
R3W, along the western border of the Newberg map; then
    (9) Proceed north 0.2 mile along the western boundary of section 43, 
T3S/R3W, to its intersection with the 240-foot contour line, Newberg 
map; then
    (10) Proceed westerly for 4 miles along the 240-foot contour line, 
crossing onto the Dundee map, to its intersection with an unnamed light-
duty road locally known as Sullivan Lane, section 74, T3S/R3, Dundee 
map; then
    (11) Proceed south 0.25 mile along Sullivan Lane to its intersection 
with North Valley Road at elevation point 216, section 74, T3S/R3, 
Dundee map; then
    (12) Proceed west 0.1 mile along North Valley Road to its 
intersection with the 200-foot contour line, section 74, T3S/R3W, Dundee 
map; then
    (13) Proceed northwesterly 1 mile along the 200-foot contour line to 
its intersection with an unnamed creek northeast of elevation point 215, 
and continue northwesterly 0.05 mile along the unnamed creek to its 
intersection with Dopp Road along the western boundary line of section 
74, T3S/R3W, Dundee map; then
    (14) Proceed south 0.8 mile along Dopp Road to its intersection with 
North Valley Road at the elevation point 202 near the Ewing Young 
School, section 39, T3S/R3W, Dundee map; then
    (15) Proceed northerly 5 miles on North Valley Road, crossing onto 
the Laurelwood map, to the road's intersection with Laughlin Road and 
Albertson Road at elevation point 235, section 58, T2S/R3W, Laurelwood 
map; then
    (16) Proceed east 0.1 mile on Albertson Road to its intersection 
with the 240-foot contour line, section 58, T2S/R3W, Laurelwood map; 
then
    (17) Proceed northerly 15.6 miles along the 240-foot contour line to 
its intersection with Sandstrom Road, section 19, T1S/R3W, Laurelwood 
map; then
    (18) Proceed west 0.15 mile on Sandstrom Road to its third crossing 
of the 200-foot contour line, just before Fern Hill Road to the west, 
section 24, T1S/R4W, Laurelwood map; then
    (19) Proceed northwesterly and then northeasterly 4.5 miles along 
the meandering 200-foot contour line to its intersection with La 
Follette Road along the eastern boundary of section 8, T1S/R3W, 
Laurelwood map; then
    (20) Proceed south 0.25 mile on La Follette Road to its intersection 
with the 240-foot contour line, north of Blooming Fern Hill Road, along 
the western boundary line of section 16, T1S/R3W, Laurelwood map; then
    (21) Proceed easterly and then southerly 17 miles along the 
meandering 240-foot contour line, crossing over and back on the Scholls 
map in section 25 and 56, T1S/R3W, crossing Christensen Creek in section 
35, T1S/R3W, and continuing to the contour line's intersection with 
Laurel Road West, along the southern boundary line of section 1, T2S/
R3W, Laurelwood map; then
    (22) Proceed east 0.15 mile on Laurel Road West to its intersection 
with the 200-foot contour line, along the southern boundary line of 
section 1, T2S/R3W, Laurelwood map; then
    (23) Proceed easterly 17.5 miles along the meandering 200-foot 
contour line, and, after crossing onto the Scholls map and crossing over 
Laurel Road South, McCormick Hill Road four times, and Midway Road, and 
after crossing over and back on the Newberg map (crossing Heaton Creek) 
in section

[[Page 286]]

28, T2S/R2W, continue to the contour line's intersection with Mountain 
Home Road, east of Heaton Creek, section 21, T2S/R2W, Scholls map; then
    (24) Continue easterly and then southerly 8.9 miles along the 200-
foot contour line and, after crossing Baker Creek, skirting Laurel Ridge 
to the north, crossing onto the Beaverton map, crossing over and back on 
the Sherwood map, crossing over in the northwest corner of the Beaverton 
map, and returning to the Scholls map, continue to the contour line's 
intersection with the middle tributary of an unnamed creek, along the 
western boundary line of section 24, T2S/R2W, Scholls map; then
    (25) Proceed southeast along the meandering 200-foot contour line 
and, after crossing over to the northeast corner of the Newberg map to 
the Sherwood map, continue to the contour line's intersection with Edy 
Road, section 25, T2S/R2W, Sherwood map; then
    (26) Proceed southwest along the meandering 200-foot contour line 
and, after crossing onto the Newberg map, skirting part of Chicken 
Creek, and returning to the Sherwood map, continue to the contour line's 
intersection with Elwert Road, along the eastern boundary line of 
section 25, T2S/R2W, Sherwood map; then
    (27) Proceed south 0.85 mile on Elwert Road to its intersection with 
Oregon Highway 99W, along the eastern boundary line of section 36, T2S/
R2W, Sherwood map; then
    (28) Proceed south-southwest 0.45 mile on Oregon Highway 99W to its 
intersection with the 250-foot contour line immediately south of an 
unnamed Cedar Creek tributary, section 36, T2S/R2W, Sherwood map; then
    (29) Proceed southerly 1 mile along the meandering 250-foot contour 
line to its intersection with Middleton Road, section 1, T3S/R2W, 
Sherwood map; then
    (30) Proceed southwesterly 0.5 mile on Middleton Road, which becomes 
Rein Road, to the road's intersection with the 200-foot contour line, 
immediately south of Cedar Creek, section 1, T3S/R2W, Sherwood map; then
    (31) Proceed 1.6 miles generally east along the 200-foot contour 
line to its intersection, in the village of Middleton, with an unnamed 
light-duty east-west road locally known as Brookman Road, section 6, 
T3S/R1W, Sherwood map; then
    (32) Proceed easterly 0.7 mile on Brookman Road to its intersection 
with the Washington-Clackamas County line, at the northwest corner of 
section 5, T3S/R1W, Sherwood map; then
    (33) Proceed east 1 mile along the Washington-Clackamas County line 
to its intersection with Brown Road, at the northeast corner of section 
5, T3S/R1W, Sherwood map; then
    (34) Proceed southerly 1 mile on Brown Road to its second 
intersection with the 250-foot contour line, immediately south of an 
intermittent stream, in section 4, T3S/R1W, Sherwood map; then
    (35) Proceed southerly 2.8 miles along the meandering 250-foot 
contour line, skirting Hoodview, to the contour line's intersection with 
Baker Road, section 16, T3S/R1W, Sherwood map; then
    (36) Proceed south 0.15 mile on Baker Road to its intersection with 
the 200-foot contour line, section 16, T3S/R1W, Sherwood map; then
    (37) Proceed southwesterly 13.1 miles along the meandering 200-foot 
contour line and, after crossing onto the Newberg map, continue to the 
contour line's intersection with Wilsonville Road, north of Willamette 
Greenway State Park, section 60, T3S/R2W, Newberg map; then
    (38) Proceed northwesterly 2 miles on Wilsonville Road to its 
intersection with an unnamed tributary of Spring Brook, east-northeast 
of Grouse Butte, section 57, T3S/R2W, Newberg map; then
    (39) Proceed southwesterly 0.25 mile along the unnamed tributary of 
Spring Brook to its intersection with the 200-foot contour line, section 
57, T3S/R2W, Newberg map; then
    (40) Proceed westerly and then northerly 0.45 mile along the 200-
foot contour line, following the base of Grouse Butte, to the contour 
line's intersection with Wilsonville Road, section 57, T3S/R2W, Newberg 
map; then
    (41) Proceed east 0.45 mile on Wilsonville Road to its intersection 
with the same unnamed tributary of

[[Page 287]]

Spring Brook, section 57, T3S/R2W, Newberg map; then
    (42) Proceed northeasterly 0.05 mile along the unnamed tributary of 
Spring Brook to its intersection with the 250-foot contour line, 
southwest of the quarries, section 57, T3S/R2W, Newberg map; then
    (43) Proceed northerly 2.2 miles along the 250-foot contour line to 
its intersection with Corral Creek Road (misnamed Ladd Hill Road on the 
Newberg map), south of Oregon Highway 99W, section 15, T3S/R2W, Newberg 
map; then
    (44) Proceed north 0.5 mile along Corral Creek Road to its western-
most intersection with an unnamed light-duty road locally known as 
Veritas Lane, section 15, T3S/R2W, Newberg map; then
    (45) Proceed north-northwesterly in a straight line approximately 
0.05 mile and return to the beginning point.

[T.D. TTB-56, 71 FR 68462, Nov. 27, 2006]



Sec.  9.206  Shawnee Hills.

    (a) Name. The name of the viticultural area described in this 
section is ``Shawnee Hills''. For purposes of part 4 of this chapter, 
``Shawnee Hills'' is a term of viticultural significance.
    (b) Approved maps. The United States Geological Survey (USGS) 
1:250,000-scale topographic map used to determine the boundary of the 
Shawnee Hills viticultural area is titled--Paducah: Kentucky-Illinois, 
Missouri-Indiana, 1987 edition.
    (c) Boundary. The Shawnee Hills viticultural area is located in 
southern Illinois between the Ohio and Mississippi Rivers, and largely 
within the Shawnee National Forest. The boundary of the Shawnee Hills 
viticultural area is described below--
    (1) Beginning at the intersection of State Routes 3 and 150 in the 
town of Chester (Randolph County), proceed northeast on Route 150 to its 
intersection with the surveyed boundary line between Township 6 South 
(T6S) and Township 7 South (T7S); then
    (2) Proceed due east along the T6S/T7S boundary line until it 
becomes the boundary between Perry and Jackson Counties, and continue 
east along the Perry-Jackson County line to State Route 4; then
    (3) Proceed southeast on State Route 4 through the villages of 
Campbell Hill, Ava, and Oraville to its intersection with State Route 
13/127; then
    (4) Proceed south on State Route 13/127 to the intersection where 
State Routes 13 and 127 divide in the town of Murphysboro; then
    (5) Proceed east on State Route 13 through the city of Carbondale to 
State Route 13's intersection with Interstate 57; then
    (6) Proceed south on Interstate 57 to its intersection with State 
Route 148; then
    (7) Proceed southeast on State Route 148 to its intersection with 
State Route 37; then
    (8) Proceed south on State Highway 37 to Saline Creek; then
    (9) Proceed northeasterly (downstream) along Saline Creek to its 
confluence with the South Fork of the Saline River, then continue 
easterly (downstream) along the South Fork of the Saline River to its 
confluence with the Saline River, then continue easterly and then 
southeasterly (downstream) along the Saline River to its confluence with 
the Ohio River near Saline Landing; then
    (10) Proceed southwesterly (downstream) along the Ohio River to the 
Interstate 24 bridge; then
    (11) Proceed north on Interstate 24 to its intersection with the New 
Columbia Ditch (with the towns of Big Bay to the northeast and New 
Columbia to the northwest); then
    (12) Proceed westerly along the New Columbia Ditch to its confluence 
with the Main Ditch, and continue westerly along the Main Ditch to its 
confluence with the Cache River (near the Cache River's confluence with 
the Post Creek Cutoff), approximately 1.5 miles east-northeast of the 
village of Karnak; then
    (13) Proceed westerly (downstream) along the Cache River, passing 
under Interstate 57 near the village of Ullin, and continue 
southeasterly along the Cache River to the river's confluence with Sandy 
Creek (northeast of the village of Sandusky); then
    (14) Proceed westerly (upstream) along Sandy Creek approximately 4

[[Page 288]]

miles to its junction with an unnamed secondary road (known locally as 
Alexander County Road 4); then
    (15) Proceed south along the unnamed secondary road (Alexander 
County Road 4) to its junction with State Route 3 at the village of 
Olive Branch; then
    (16) Proceed northwest on State Route 3 to its intersection with the 
Main Ditch (also known locally as Sexton Creek) at the village of Gale; 
then
    (17) Proceed northerly along Main Ditch and Clear Creek Ditch to a 
light-duty road (known locally as State Forest Road) near the southwest 
corner of the Trail of Tears State Forest, approximately 3.75 miles east 
of the village of Wolf Lake; then
    (18) Proceed west on the light-duty road (State Forest Road) to its 
intersection with State Route 3 just south of Wolf Lake; then
    (19) Proceed north on State Route 3 to its junction with the Big 
Muddy River (near the village of Aldridge), and continue north 
(upstream) along the Big Muddy River to its confluence with Kincaid 
Creek near the village of Grimsby; then
    (20) Continue northerly along Kincaid Creek to its junction with 
State Route 149; then
    (21) Proceed west on State Route 149 to its junction with State 
Route 3, and then continue northwest along State Route 3 to the 
beginning point in the town of Chester.

[T.D. TTB-57, 71 FR 68471, Nov. 27, 2006]



Sec.  9.207  Outer Coastal Plain.

    (a) Name. The name of the viticultural area described in this 
section is ``Outer Coastal Plain''. For purposes of part 4 of this 
chapter, ``Outer Coastal Plain'' is a term of viticultural significance.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Outer Coastal Plain viticultural area are seven United States 
Geological Survey topographic maps. They are titled--
    (1) Wilmington, Delaware-New Jersey-Pennsylvania-Maryland, 1984, 
1:100,000 scale;
    (2) Hammonton, New Jersey, 1984, 1:100,000 scale;
    (3) Trenton, New Jersey-Pennsylvania-New York, 1986, 1:100,000 
scale;
    (4) Long Branch, New Jersey, 1954, photorevised 1981, 1:24,000 
scale;
    (5) Atlantic City, New Jersey, 1984, 1:100,000 scale;
    (6) Cape May, New Jersey, 1981, 1:100,000 scale; and
    (7) Dover, Delaware-New Jersey-Maryland, 1984, 1:100,000 scale.
    (c) Boundary. The Outer Coastal Plain viticultural area includes all 
of Cumberland, Cape May, Atlantic, and Ocean Counties and portions of 
Salem, Gloucester, Camden, Burlington, and Monmouth Counties in the 
State of New Jersey. The boundary of the Outer Coastal Plain 
viticultural area is as described below.
    (1) The beginning point is on the Wilmington map at the confluence 
of Alloway Creek with the Delaware River (within Mad Horse Creek State 
Wildlife Management Area) in Salem County;
    (2) From the beginning point, proceed northeasterly in a straight 
line to the village of Hagerville; then
    (3) Continue north on an unnamed road locally known as County Road 
(CR) 658 to its intersection with State Route (SR) 49; then
    (4) Proceed northwesterly on SR 49 to its intersection with SR 45 in 
the center of the town of Salem; then
    (5) Proceed northeasterly on SR 45 to its intersection with SR 540 
at the village of Pointers; then
    (6) Proceed north on SR 540 into the village of Slapes Corner; then
    (7) Proceed northeasterly on an unnamed road locally known as CR 646 
to its intersection with the New Jersey Turnpike near the village of 
Auburn; then
    (8) Proceed northeasterly on the New Jersey Turnpike for 
approximately 18 miles to its intersection with SR 47; then
    (9) Proceed south on SR 47 for approximately 0.5 mile to its 
intersection with SR 534 at the village of Gardenville Center; then
    (10) Proceed southeasterly through Gardenville Center on SR 534 to 
its intersection with SR 544; then
    (11) Proceed northeasterly on SR 544 to its intersection with SR 73 
on the Hammonton map; then

[[Page 289]]

    (12) Proceed north-northwesterly on SR 73 to its intersection with 
SR 70 in Cropwell; then
    (13) Proceed east on SR 70 to its intersection with U.S. 206 in Red 
Lion; then
    (14) Proceed north on U.S. 206, onto the Trenton map, to the 
intersection of U.S. 206 and an unnamed road locally known as CR 537, in 
the village of Chambers Corner; then
    (15) Proceed northeasterly on CR 537, through the village of 
Jobstown; then
    (16) Continue northeasterly on CR 537, through the villages of 
Smithburg and Freehold, to its intersection with SR 18, east-northeast 
of Freehold; then
    (17) Proceed easterly on SR 18 to its intersection with the Garden 
State Parkway; then
    (18) Proceed north on the Garden State Parkway to its intersection 
with SR 36 and proceed east along SR 36 onto the Long Branch map; then
    (19) Using the Long Branch map, continue east on SR 36 to where it 
intersects with Joline Avenue; then
    (20) Proceed northeasterly on Joline Avenue to the Atlantic Ocean 
shoreline; then
    (21) Follow the Atlantic Ocean shoreline south, encompassing all 
coastal islands, onto the Trenton, Hammonton, Atlantic City, and Cape 
May maps, to the city of Cape May; then
    (22) Proceed west, then north, along the eastern bank of the 
Delaware River, onto the Atlantic City, Dover, and Wilmington maps to 
the beginning point.

[T.D. TTB-58, 72 FR 6167, Feb. 9, 2007]



Sec.  9.208  Snake River Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Snake River Valley''. For purposes of part 4 of this 
chapter, ``Snake River Valley'' is a term of viticultural significance.
    (b) Approved maps. The appropriate maps for determining the boundary 
of the Snake River Valley viticultural area are 14 United States 
Geological Survey 1:100,000 scale, metric topographic maps. They are 
titled,
    (1) Baker, Oregon-Idaho, 1981;
    (2) Brogan, Oregon-Idaho, 1980;
    (3) McCall, Idaho-Oregon, 1980, Photoinspected 1990;
    (4) Weiser, Idaho-Oregon, 1980, Photoinspected 1990;
    (5) Boise, Idaho-Oregon, 1981;
    (6) Idaho City, Idaho, 1982;
    (7) Murphy, Idaho, 1986;
    (8) Mountain Home, Idaho, 1990;
    (9) Fairfield, Idaho, 1978;
    (10) Twin Falls, Idaho, 1979;
    (11) Glenns Ferry, Idaho, 1992;
    (12) Triangle, Idaho, 1990;
    (13) Mahogany Mountain, Idaho, 1978; and
    (14) Vale, Oregon-Idaho, 1993.
    (c) Boundary. The Snake River Valley viticultural area is located in 
Ada, Adams, Boise, Canyon, Elmore, Gem, Gooding, Jerome, Owyhee, 
Payette, Twin Falls, and Washington Counties in southwestern Idaho and 
in Baker and Malheur Counties in southeastern Oregon. The boundary of 
the Snake River Valley viticultural area is as described below:
    (1) The beginning point is on the Baker map in Oregon at the 
intersection of the 1,040-meter contour line and Interstate 84, between 
Pleasant Valley and Oxman in Baker County, T10S/R42E;
    (2) From the beginning point proceed east following the 1,040-meter 
contour line along the eastern side of the Burnt River Valley, then 
crossing over to the Brogan map, proceed northerly along the western 
side of the Snake River Valley and, crossing back over to the Baker map, 
proceed westerly along the southern side of the Powder River Valley to 
the 1,040-meter contour line's intersection with the northern boundary 
of Baker County, T7S/R40E, on the Baker map;
    (3) Proceed 7.5 miles straight east along the northern boundary of 
Baker County to its intersection with the 1,040-meter line east of 
Oregon State Road 203 and three unnamed creeks, T7S/R41E, on the Baker 
map;
    (4) Proceed generally southeast along the 1,040-meter contour line 
onto the McCall map, to its intersection with the 45 degree north 
latitude line, to the immediate west of North Creek in the Hell's Canyon 
National Recreation Area, T6S/R47E, on the northern border of the McCall 
map;
    (5) Proceed straight east along the 45 degree north latitude line to 
its intersection with the 1,040-meter contour

[[Page 290]]

line, to the immediate east of North Creek, T6S/R47E, on the McCall map;
    (6) Follow the 1,040-meter contour line, which encircles the 
northern portion of McLain Gulch, to its third intersection with the 45 
degree north latitude line, west of the Snake River in Baker County, 
Oregon, T6S/R48E, on the McCall map;
    (7) Proceed straight east along the 45 degree north latitude line to 
its intersection with the 1,040-meter contour line, to east of the Snake 
River and Indian Creek in Adams County, Idaho, T6S/R48W, on the McCall 
map;
    (8) Continue following the 1,040-meter contour line in a generally 
clockwise rotation on the McCall map, proceeding southerly on the 
southeast side of the Snake River, northeasterly north of the Crooked 
River, crossing the Crooked River, T7S/R3W, proceeding southwesterly 
south of the Crooked River, crossing Brownlee Creek, T16N/R4W, 
proceeding generally southwesterly onto the Baker map, continuing 
southwesterly, crossing Sturgill Creek, T15N/R6W, and Dennett Creek, 
T14N/R6W, proceeding onto the Brogan map, proceeding southeasterly, 
crossing Rock Creek, T13N/R6W, proceeding onto the Weiser map, 
proceeding northeasterly, north of the Mann Creek State Recreation Area, 
crossing Mann Creek, T13N/R5W, continuing northeasterly onto the McCall 
map;
    (9) Continue following the 1,040-meter contour line in a clockwise 
rotation on the McCall map, proceeding northeasterly, crossing Pine 
Creek, T15N/R4W, and Hornet Creek, T8S/R2W, passing west of the Payette 
National Forest, proceeding southerly, passing east of Mesa, onto the 
Weiser map, proceeding southerly, crossing Crane Creek, T12N/R1W, 
turning westerly, rounding north of the Paddock Valley Reservoir, 
crossing Willow Creek, T9N/R1W, turning southerly onto the Boise map, 
looping southerly and northerly north of the Black Canyon Reservoir and 
moving back onto the Weiser map;
    (10) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Weiser map, proceeding northerly, crossing Squaw Creek, 
T12N/R1E, and then southerly, crossing Cottonweed Creek, T11N/R1E, and 
then southerly again onto the Boise map, rounding south of South 
Mountain, back onto the Weiser map, proceeding northeasterly north of 
the Payette River, crossing the North Fork Payette River, T10N/R3E, then 
proceeding southwesterly south of the Payette River, onto the Boise map, 
proceeding generally southerly, crossing Cartwright Creek, T6N/R2E, and 
proceeding westerly and southeasterly towards Lucky Peak Lake, and then 
turning northward onto the Idaho City map;
    (11) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Idaho City map, proceeding northerly, crossing Grimes 
and Mores Creek, T5N/R4E, and then proceeding southerly to Lucky Peak 
Lake, turning northeasterly north of the Lucky Peak Lake, Arrowrock 
Reservoir, and Middle Fork Boise River to T4N/R7E, crossing the Middle 
Fork Boise River and proceeding southwesterly south of the Middle Fork 
Boise River, to the South Fork Boise River, crossing the South Fork 
Boise River, T2N/R6E, proceeding onto the Boise map proceeding 
southwesterly south of Lucky Peak Lake onto the Murphy map;
    (12) Continue following the 1,040-meter contour line in a clockwise 
rotation southeasterly on the Murphy map to the Mountain Home map, 
proceeding southeasterly, crossing Canyon Creek, passing north of 
Mountain Home Reservoir, crossing King Hill Creek, onto the Fairfield 
map, proceeding easterly, crossing Clover Creek, T4S/R13E, proceeding 
southerly onto the Twin Falls map;
    (13) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Twin Falls map, proceeding southeasterly to the Snake 
River, T9S/R14E, following north of the Snake River and crossing at 
T10S/R18E, northeast of Twin Falls, proceeding westerly south of the 
Snake River to the Salmon River, following east of the Salmon River and 
crossing at T10S/R13E, proceeding northerly west of the Salmon River and 
the Hagerman Wildlife Management Area, proceeding west onto the Glenns 
Ferry map;
    (14) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Glenns Ferry map, proceeding generally west to Rosevear

[[Page 291]]

Gulch, turning south between Rosevear Gulch and Pilgrim Gulch, near 
Deadman Creek, heading northwesterly, continuing through the Bruneau 
Desert, crossing Hole Creek in Pot Canyon and proceeding to Bruneau 
Canyon, proceeding southeasterly east of Bruneau Canyon, crossing 
Bruneau Canyon, T10S/R7E, proceeding west of Bruneau Canyon then west 
onto the Triangle map;
    (15) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Triangle map, heading northwesterly, crossing Shoofly 
Creek and Alder Creek, T6S/R1W, onto the Murphy map, continuing 
northwesterly to Sinker Creek, crossing Sinker Creek, T4S/R2W, 
continuing northwesterly to Jump Creek, crossing Jump Creek, T1N/R5W, 
proceeding northwesterly onto the Boise map, crossing its southwestern 
corner, T2N/R5W, onto the Mahogany Mountain map;
    (16) Continue following the 1,040-meter contour line in a clockwise 
rotation onto the Mahogany Mountain map, proceeding westerly onto the 
Vale map, generally northwesterly then southwesterly onto the Mahogany 
Mountain map, proceeding southwest, west, and generally north onto the 
Vale map, passing through Succor Creek State Recreational Area, 
returning to the Mahogany Mountain map, and, passing east of McIntyre 
Ridge, crossing Succor Creek, T1N/R46E, proceeding northerly back onto 
the Vale map;
    (17) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Vale map, proceeding northerly east of Owyhee Ridge and 
Long Draw to north of Lake Owyhee, southwesterly and southerly south of 
Lake Owyhee onto the Mahogany Mountain map, southwesterly south of Lake 
Owyhee, the Owyhee River, and Owyhee Canyon, crossing Owyhee Canyon at 
T29S/R41E, proceeding northerly west of Owyhee Canyon, northeasterly 
west of Owyhee River and Owyhee Reservoir, and northerly onto the Vale 
map;
    (18) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Vale map, proceeding generally northerly to T20S/R42E, 
southwesterly east of Cottonwood Creek, crossing Cottonwood Creek, T22S/
R40E, proceeding north to the Malheur River, following the Malheur River 
westerly to the intersection of the 1,040-meter contour line and the 118 
degree west longitude line in Malheur County, Oregon, T21S/R38E, on the 
western border of the Vale map;
    (19) Proceed straight north along the 118 degree west longitude line 
to its intersection with the 1,040-meter contour line, north of the 
Malheur River, T20S/R38E, proceeding easterly north of the Malheur River 
to Hog Creek, crossing Hog Creek, T20S/R40E, and proceeding northerly on 
the Vale map;
    (20) Continue following the 1,040-meter contour line in a clockwise 
rotation, crossing onto the Brogan map, proceeding easterly, northerly, 
and westerly to and around Malheur Reservoir, T14S/R41E, proceeding 
easterly to Cottonwood Gulch then northerly to Dixie Creek, crossing 
Dixie Creek, T12S/RR41E, proceeding easterly and northerly onto the 
Baker map;
    (21) Continue following the 1,040-meter contour line in a clockwise 
rotation on the Baker map, proceeding westerly south of the Burnt River, 
crossing the Burnt River, T10S/R41E, proceeding easterly north of the 
Burnt River to Gravel Pits, then northerly, returning to the beginning 
point.

[T.D. TTB-59, 72 FR 10602, Mar. 9, 2007]



Sec.  9.210  Lehigh Valley.

    Effective Date Note: At 73 FR 12874, Mar. 11, 2008, Subpart C was 
amended by adding 9.210, effective April 10, 2008.
    (a) Name. The name of the viticultural area described in this 
section is ``Lehigh Valley''. For purposes of part 4 of this chapter, 
``Lehigh Valley'' and ``Lehigh'' are terms of viticultural significance.
    (b) Approved maps. The seven United Stages Geological Survey 
1:50,000 scale topographic maps used to determine the boundary of the 
Lehigh Valley viticultural area are titled:
    (1) Berks County, Pennsylvania, 1978;
    (2) Schuylkill County (West Half), Pennsylvania, 1979;
    (3) Schuylkill County (East Half), Pennsylvania, 1979;
    (4) Carbon County, Pennsylvania, 1991;

[[Page 292]]

    (5) Monroe County, Pennsylvania, 1980;
    (6) Northampton County, Pennsylvania, 1981; and
    (7) Lehigh County, Pennsylvania, 1987.
    (c) Boundary. The Lehigh Valley viticultural area is located in 
portions of Lehigh, Northampton, Berks, Schuylkill, Carbon, and Monroe 
Counties, Pennsylvania. The boundary of the proposed Lehigh Valley 
viticultural area is as described below:
    (1) The beginning point is on the Berks County map at the 
intersection of the Berks-Lancaster County line and the single-track 
Conrail rail line located near Cacoosing Creek in South Heidelberg 
Township;
    (2) From the beginning point, proceed northwest along the Berks 
County line and, crossing onto the Schuylkill County (West Half) map, 
continue northwest along the Schuylkill-Lebanon County line to the 
county line's intersection with the northern boundary of Pine Grove 
township; then
    (3) Proceed northeast along the northern boundary of Pine Grove, 
Washington, and Wayne Townships and, crossing onto the Schuylkill County 
(East Half) map, continue along the northern boundary of Wayne Township 
to the northeast corner of that township, then
    (4) Proceed east-northeasterly in a straight line to the confluence 
of Beaver Creek and Cold Run at the northeast corner of State Game Lands 
No. 222 in Walker township; then
    (5) Proceed north-northeasterly in a straight line to the 1,402-foot 
elevation point on Wildcat Mountain in Walker township; then
    (6) Proceed easterly in a straight line, crossing onto the Carbon 
County map, and continue to Bench Mark (BM) 1032 located on Highway 902, 
south of the village of Bloomingdale; then
    (7) Proceed east-northeasterly in a straight line to BM 555 located 
immediately east of the Lehigh River in the city of Jim Thorpe; then
    (8) Proceed east-northeasterly in a straight line to the northern 
most point of Lehighton Reservoir; then
    (9) Proceed east-northeasterly in a straight line to the western end 
of the dam at the Penn Forest Reservoir; then
    (10) Proceed easterly in a straight line and, crossing onto the 
Monroe County map, continue to the 847-foot elevation point located at 
the intersection of Highway 534 and an unnamed road locally know as 
Dotters Corner Road in Polk township; then
    (11) Proceed east-northeasterly in a straight line to the 
intersection of Highway 115 and an unnamed secondary road locally known 
as Astolat Road immediately north of the village of Effort; then
    (12) Proceed east-northeasterly in a straight line to St. Johns 
Cemetery, located along Appenzell Creek northwest of the village of 
Neola; then
    (13) Proceed straight northeast to the intersection of Interstate 80 
and an unnamed road locally known as Hamilton Turnpike at the town of 
Bartonsville; then
    (14) Proceed east-southeast along Interstate 80 through Stroudsburg 
to the west bank of the Delaware River; then
    (15) Proceed south (downstream) along the west bank of the Delaware 
River, and, crossing onto the Northampton County map, continue south 
along the west bank of the Delaware River to the mouth of Lehigh River 
at Easton; then
    (16) Proceed southwesterly (upstream) along the south bank of the 
Lehigh River, and crossing onto the Lehigh County map, continue along 
the south bank of the Lehigh River to the mouth of Jordan Creek in 
Allentown; then
    (17) Proceed westerly (upstream) along Jordan Creek to the first 
railroad bridge over the creek, and then, following the Conrail rail 
line on that bridge, proceed southerly along the Conrail rail line 
(paralleling Trout Creek at first) through Emmaus, Macungie, and 
Alburtis, and continue along the rail line to the Lehigh-Berks County 
line; then
    (18) Crossing onto the Berks County map, continue southerly along 
the Conrail rail line through Mertztown, Topton, Lyons, Fleetwood, 
Blandon, and Muhlenburg to the Conrail rail bridge across the Schuylkill 
River in Reading; then

[[Page 293]]

    (19) Following the Conrail rail line on the Schuylkill River bridge, 
proceed southerly along the rail line through Wyomissing to the rail 
line's junction with a single-track Conrail rail line in Sinking 
Springs; then
    (20) From the Conrail rail line junction in Sinking Springs, follow 
the single track Conrail rail line through Montello, Fritztown, and 
Vinemont, and return to the beginning point.

[73 FR 12874, Mar. 11, 2008]



PART 10_COMMERCIAL BRIBERY--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
10.1 General.
10.2 Territorial extent.
10.3 Application.
10.4 Jurisdictional limits.
10.5 Delegations of the Administrator.
10.6 Administrative provisions.

                          Subpart B_Definitions

10.11 Meaning of terms.

                      Subpart C_Commercial Bribery

10.21 Commercial bribery.
10.22 Employee associations.
10.23 Gifts or payments to wholesalers.
10.24 Sales promotion contests.

                           Subpart D_Exclusion

10.51 Exclusion, in general.
10.52 Practice which puts trade buyer independence at risk.
10.53 Practices not resulting in exclusion. [Reserved]
10.54 Criteria for determining trade buyer independence.

    Authority: 15 U.S.C. 49-50; 27 U.S.C. 202 and 205; 44 U.S.C. 
3504(h).

    Source: T.D. ATF-74, 45 FR 63257, Sept. 30, 1980, unless otherwise 
noted.



                     Subpart A_Scope of Regulations



Sec.  10.1  General.

    The regulations in this part, issued pursuant to section 105 of the 
Federal Alcohol Administration Act (27 U.S.C. 205), specify practices 
which may result in violations of section 105(c) of the Act and criteria 
for determining whether a practice is a violation of section 105(c) of 
the Act. This part does not attempt to enumerate all of the practices 
prohibited by section 105(c) of the Act. Nothing in this part shall 
operate to exempt any person from the requirements of any State law or 
regulation.

[T.D. ATF-364, 60 FR 20426, Apr. 26, 1995]



Sec.  10.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and Puerto Rico.



Sec.  10.3  Application.

    (a) General. The regulations in this part apply to transactions 
between industry members and employees, officers, or representatives of 
trade buyers.
    (b) Transactions involving State agencies. The regulations in this 
part apply only to transactions between industry members and employees 
of State agencies operating as retailers, wholesalers, or both. The 
regulations do not apply to State agencies with regard to their dealings 
with employees, officers, or representatives of trade buyers.



Sec.  10.4  Jurisdictional limits.

    (a) General. The regulations in this part apply where:
    (1) The industry member induces a trade buyer to purchase distilled 
spirits, wine, or malt beverages from such industry member to the 
exclusion, in whole or in part, of products sold or offered for sale by 
other persons in interstate or foreign commerce; and
    (2) If: (i) The inducement is made in the course of interstate or 
foreign commerce; or
    (ii) The industry member engages in the practice of using an 
inducement to such an extent as substantially to restrain or prevent 
transactions in interstate or foreign commerce in any such products; or
    (iii) The direct effect of the inducement is to prevent, deter, 
hinder, or restrict other persons from selling or offering for sale any 
such products to such retailer in interstate or foreign commerce.
    (b) Malt beverages. In the case of malt beverages, this part applies 
to transactions between an employee, officer, or representative of a 
trade buyer in any State and a brewer, importer, or wholesaler of malt 
beverages inside or

[[Page 294]]

outside such State only to the extent that the law of such State imposes 
requirements similar to the requirements of section 5(c) of the Federal 
Alcohol Administration Act (27 U.S.C. 205(c)), with respect to similar 
transactions between an employee, officer, or representative of a trade 
buyer in such State and a brewer, importer, or wholesaler of malt 
beverages in such State.

[T.D. ATF-74, 45 FR 63257, Sept. 30, 1980, as amended by T.D. ATF-364, 
60 FR 20426, Apr. 26, 1995]



Sec.  10.5  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.10, Delegation of the Administrator's 
Authorities in 27 CFR Part 10, Commercial Bribery. You may obtain a copy 
of this order by accessing the TTB Web site (http://www.ttb.gov) or by 
mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. TTB-44, 71 FR 16923, Apr. 4, 2006]



Sec.  10.6  Administrative provisions.

    (a) General. The Act makes applicable the provisions including 
penalties of sections 49 and 50 of Title 15, United States Code, to the 
jurisdiction, powers and duties of the Administrator under this Act, and 
to any person (whether or not a corporation) subject to the provisions 
of law administered by the Administrator under this Act. The Act also 
provides that the Administrator is authorized to require, in such manner 
and such form as he or she shall prescribe, such reports as are 
necessary to carry out the powers and duties under this chapter.
    (b) Examination and subpoena. Any appropriate TTB officer shall at 
all reasonable times have access to, for the purpose of examination, and 
the right to copy any documentary evidence of any person, partnership, 
or corporation being investigated or proceeded against. An appropriate 
TTB officer shall also have the power to require by subpoena the 
attendance and testimony of witnesses and the production of all such 
documentary evidence relating to any matter under investigation, upon a 
satisfactory showing the requested evidence may reasonably be expected 
to yield information relevant to any matter being investigated under the 
Act.
    (c) Reports required by the appropriate TTB officer--(1) General. 
The appropriate TTB officer may, as part of a trade practice 
investigation of an industry member, require such industry member to 
submit a written report containing information on sponsorships, 
advertisements, promotions, and other activities pertaining to its 
business subject to the Act conducted by, or on behalf of, or benefiting 
the industry member.
    (2) Preparation. The report will be prepared by the industry member 
in letter form, executed under the penalties of perjury, and will 
contain the information specified by the appropriate TTB officer. The 
period covered by the report will not exceed three years.
    (3) Filing. The report will be filed in accordance with the 
instructions of the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0392)

[T.D. ATF-364, 60 FR 20426, Apr. 26, 1995. Redesignated and amended by 
T.D. ATF-428, 65 FR 52020, Aug. 28, 2000]



                          Subpart B_Definitions



Sec.  10.11  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
have the meanings given in this section. Any other term defined in the 
Federal Alcohol Administration Act and used in this part shall have the 
meaning assigned to it by that Act.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement

[[Page 295]]

of this part by TTB Order 1135.10, Delegation of the Administrator's 
Authorities in 27 CFR Part 10, Commercial Bribery.
    Industry member. Any person engaged in business as a distiller, 
brewer, recitifier, blender, or other producer, or as an importer or 
wholesaler of distilled spirits, wine or malt beverages, or as a 
bottler, or warehouseman and bottler, of distilled spirits; industry 
member does not include an agency of a State or political subdivision 
thereof, or an officer or employee of such agency.
    Officer. All corporate executives, including presidents, vice 
presidents, treasurers, and chief executive officers.
    Product. Distilled spirits, wine or malt beverages, as defined in 
the Federal Alcohol Administration Act.
    Trade buyer. Any person who is a wholesaler or retailer of distilled 
spirits, wine, or malt beverages.

[T.D. ATF-74, 45 FR 63257, Sept. 30, 1980, as amended by T.D. ATF-364, 
60 FR 20426, Apr. 26, 1995; T.D. ATF-428, 65 FR 52020, Aug. 28, 2000; 
T.D. TTB-44, 71 FR 16924, Apr. 4, 2006]



                      Subpart C_Commercial Bribery



Sec.  10.21  Commercial bribery.

    It is unlawful for an industry member, directly or indirectly or 
through an affiliate, to induce a trade buyer to purchase the industry 
member's products, to the complete or partial exclusion of products sold 
or offered for sale by other persons in interstate or foreign commerce, 
by offering or giving a bonus, premium, compensation, or other thing of 
value to any officer, employee, or representative of the trade buyer. 
The bonus, premium, compensation, or other thing of value need not be 
offered or given for the purpose of directly inducing a trade buyer to 
purchase from the seller, but rather is applicable if an industry member 
induces officers, employees or representatives of the trade buyer to 
promote sales of the industry member's products and thereby indirectly 
induces the trade buyer to purchase from the industry member.



Sec.  10.22  Employee associations.

    Gifts, donations, and other payments such as for advertising in 
publications, by an industry member, to trade buyer employee 
associations are considered the same as bonuses, premiums, compensation, 
or other things of value given directly to the employees, since the 
benefits resulting from the gifts or payments flow to the individual 
members of the association.



Sec.  10.23  Gifts or payments to wholesalers.

    Although industry members are not prohibited from offering or giving 
money or other things of value to a wholesale entity (i.e., the 
corporation, partnership, or individual who owns the business), the 
wholesaler will be considered as acting as a mere conduit between its 
officers, employees, or representatives and the industry member, if:
    (a) There is an agreement or understanding, implied or explicit, 
that the money or thing of value will be passed on to the officers, 
employees, or representatives, or
    (b) It is obvious by the very nature of the item given (such as a 
free trip) that a pass through to the officers, employees, or 
representatives is clearly contemplated, or
    (c) The records of the recipient wholesaler do not accurately 
reflect such money or item as an asset or the wholesale entity, thus 
being subject to all ensuing tax consequences as distinguished from the 
receipt of the money or item as a personal asset of an officer, 
employee, or representative.



Sec.  10.24  Sales promotion contests.

    Sales contests sponsored by an industry member which offer prizes 
directly or indirectly to trade buyer officers, employees or 
representatives are inducements within the meaning of the Act.



                           Subpart D_Exclusion

    Source: T.D. ATF-364, 60 FR 20427, Apr. 26, 1995, unless otherwise 
noted.



Sec.  10.51  Exclusion, in general.

    (a) Exclusion, in whole or in part occurs:
    (1) When a practice by an industry member, whether direct, indirect, 
or through an affiliate, places (or has the

[[Page 296]]

potential to place) trade buyer independence at risk by means of a tie 
or link between the industry member and trade buyer or by any other 
means of industry member control over the trade buyer, and
    (2) Such practice results in the trade buyer purchasing less than it 
would have of a competitor's product.
    (b) Section 10.52 lists practices that create a tie or link that 
places trade buyer independence at risk. Section 10.53 is reserved and 
will list practices not resulting in exclusion. Section 10.54 lists the 
criteria used for determining whether other practices can put trade 
buyer independence at risk.



Sec.  10.52  Practice which puts trade buyer independence at risk.

    The practice specified in this section is deemed to place trade 
buyer independence at risk within the description of exclusion in Sec.  
10.51: Industry member payments of money to the employee(s) of a trade 
buyer without the knowledge or consent of the trade buyer-employer in 
return for the employee agreeing to order distilled spirits, wine, or 
malt beverages from the industry member. The practice enumerated here is 
an example and does not constitute a complete list of those situations 
which result in such control.



Sec.  10.53  Practices not resulting in exclusion. [Reserved]



Sec.  10.54  Criteria for determining trade buyer independence.

    The criteria specified in this section are indications that a 
particular practice between an industry member and an officer, employee, 
or representative of a trade buyer, other than those in Sec.  10.52, 
places trade buyer independence at risk. A practice need not meet all of 
the criteria specified in this section in order to place trade buyer 
independence at risk.
    (a) The practice restricts or hampers the free economic choice of a 
trade buyer to decide which products to purchase or the quantity in 
which to purchase them for sale to retailers and consumers.
    (b) The industry member obligates the trade buyer to participate in 
the promotion to obtain the industry member's product.
    (c) The trade buyer has a continuing obligation to purchase or 
otherwise promote the industry member's product.
    (d) The trade buyer has a commitment not to terminate its 
relationship with the industry member with respect to purchase of the 
industry member's products.
    (e) The practice involves the industry member in the day-to-day 
operations of the trade buyer. For example, the industry member controls 
the trade buyer's decisions on which brand of products to purchase, the 
pricing of products, or the manner in which the products will be 
displayed on the trade buyer's premises.
    (f) The practice is discriminatory in that it is not offered to all 
trade buyers in the local market on the same terms without business 
reasons present to justify the difference in treatment.



PART 11_CONSIGNMENT SALES--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
11.1 General.
11.2 Territorial extent.
11.3 Application.
11.4 Jurisdictional limits.
11.5 Delegations of the Administrator.
11.6 Administrative provisions.

                          Subpart B_Definitions

11.11 Meaning of terms.

                  Subpart C_Unlawful Sales Arrangements

11.21 General.
11.22 Consignment sales.
11.23 Sales conditioned on the acquisition of other products.
11.24 Other than a bona fide sale.

  Subpart D_Rules for the Return of Distilled Spirits, Wine, and Malt 
                                Beverages

11.31 General.

     Exchanges and Returns for Ordinary and Usual Commercial Reasons

11.32 Defective products.
11.33 Error in products delivered.
11.34 Products which may no longer be lawfully sold.
11.35 Termination of business.
11.36 Termination of franchise.
11.37 Change in product.
11.38 Discontinued products.
11.39 Seasonal dealers.

[[Page 297]]

   Exchanges and Returns for Reasons Not Considered Ordinary and Usual

11.45 Overstocked and slow-moving products.
11.46 Seasonal products.

    Authority: 15 U.S.C. 49-50; 27 U.S.C. 202 and 205.

    Source: T.D. ATF-74, 45 FR 63258, Sept. 23, 1980, unless otherwise 
noted.



                     Subpart A_Scope of Regulations



Sec.  11.1  General.

    The regulations in this part, issued pursuant to section 105 of the 
Federal Alcohol Administration Act (27 U.S.C. 205), specify arrangements 
which are consignment sales under section 105(d) of the Act and contain 
guidelines concerning return of distilled spirits, wine and malt 
beverages from a trade buyer. This part does not attempt to enumerate 
all of the practices prohibited by section 105(d) of the Act. Nothing in 
this part shall operate to exempt any person from the requirements of 
any State law or regulation.

[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995]



Sec.  11.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and Puerto Rico.



Sec.  11.3  Application.

    (a) General. The regulations in this part apply to transactions 
between industry members and trade buyers.
    (b) Transactions involving State agencies. The regulations in this 
part apply to transactions involving State agencies operating as 
retailers or wholesalers.



Sec.  11.4  Jurisdictional limits.

    (a) General. The regulations in this part apply where:
    (1) The industry member sells, offers for sale, or contracts to sell 
to a trade buyer engaged in the sale of distilled spirits, wines, or 
malt beverages, or for any such trade buyer to purchase, offer to 
purchase, or contract to purchase, any such products on consignment or 
under conditional sale or with the privilege of return or on any basis 
other than a bona fide sale, or where any part of such transaction 
involves, directly or indirectly, the acquisition by such person from 
the trade buyer or the agreement to acquire from the trade buyer other 
distilled spirits, wine, or malt beverages; and,
    (2) If: (i) The sale, purchase, offer or contract is made in the 
course of interstate or foreign commerce; or
    (ii) The industry member engages in using the practice to such an 
extent as substantially to restrain or prevent transactions in 
interstate or foreign commerce in any such products; or
    (iii) The direct effect of the sale, purchase, offer or contract is 
to prevent, deter, hinder, or restrict other persons from selling or 
offering for sale any such products to such trade buyer in interstate or 
foreign commerce.
    (b) Malt beverages. In the case of malt beverages, this part applies 
to transactions between a retailer in any State and a brewer, importer, 
or wholesaler of malt beverages inside or outside such State only to the 
extent that the law of such State imposes requirements similar to the 
requirements of section 5(d) of the Federal Alcohol Administration Act 
(27 U.S.C. 205(d)), with respect to similar transactions between a 
retailer in such State and a brewer, importer, or wholesaler of malt 
beverages in such State.



Sec.  11.5  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.11, Delegation of the Administrator's 
Authorities in 27 CFR Part 11, Consignment Sales. You may obtain a copy 
of this order by accessing the TTB Web site (http://www.ttb.gov) or by 
mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. TTB-44, 71 FR 16924, Apr. 4, 2006]



Sec.  11.6  Administrative provisions.

    (a) General. The Act makes applicable the provisions including 
penalties of sections 49 and 50 of Title 15, United States Code, to the 
jurisdiction, powers and duties of the Administrator under this Act, and 
to any person (whether or

[[Page 298]]

not a corporation) subject to the provisions of law administered by the 
Administrator under this Act.
    (b) Examination and subpoena. Any appropriate TTB officer shall at 
all reasonable times have access to, for the purpose of examination, and 
the right to copy any documentary evidence of any person, partnership, 
or corporation being investigated or proceeded against. An appropriate 
TTB officer shall also have the power to require by subpoena the 
attendance and testimony of witnesses and the production of all such 
documentary evidence relating to any matter under investigation, upon a 
satisfactory showing the requested evidence may reasonably be expected 
to yield information relevant to any matter being investigated under the 
Act.

[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995. Redesignated and amended by 
T.D. ATF-428, 65 FR 52021, Aug. 28, 2000]



                          Subpart B_Definitions



Sec.  11.11  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
have the meanings given in this section. Any other term defined in the 
Federal Alcohol Administration Act and used in this part shall have the 
meaning assigned to it by that Act.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.11, Delegation of the Administrator's Authorities in 27 CFR Part 
11, Consignment Sales.
    Exchange. The transfer of distilled spirits, wine, or malt beverages 
from a trade buyer to an industry member with other products taken as a 
replacement.
    Industry member. Any person engaged in business as a distiller, 
brewer, rectifier, blender, or other producer, or as an importer or 
wholesaler of distilled spirits, wine or malt beverages, or as a bottler 
or warehouseman and bottler, of distilled spirits.
    Product. Distilled spirits, wine or malt beverages, as defined in 
the Federal Alcohol Administration Act.
    Retailer. Any person engaged in the sale of distilled spirits, wine 
or malt beverages to consumers. A wholesaler who makes incidental retail 
sales representing less than five percent of the wholesaler's total 
sales volume for the preceding two-month period shall not be considered 
a retailer with respect to such incidental sales.
    Return. The transfer of distilled spirits, wine, or malt beverages 
from a trade buyer to the industry member from whom purchased, for cash 
or credit.
    Trade buyer. Any person who is a wholesaler or retailer of distilled 
spirits, wine or malt beverages.

[T.D. ATF-74, 45 FR 63258, Sept. 23, 1980, as amended by T.D. ATF-364, 
60 FR 20427, Apr. 26, 1995; T.D. ATF-428, 65 FR 52021, Aug. 28, 2000; 
T.D. TTB-44, 71 FR 16924, Apr. 4, 2006]



                  Subpart C_Unlawful Sales Arrangements



Sec.  11.21  General.

    It is unlawful for an industry member to sell, offer for sale, or 
contract to sell to any trade buyer, or for any such trade buyer to 
purchase, offer to purchase, or contract to purchase any products (a) on 
consignment; or (b) under conditional sale; or (c) with the privilege of 
return; or (d) on any basis other than a bona fide sale; or (e) if any 
part of the sale involves, directly or indirectly, the acquisition by 
such person of other products from the trade buyer or the agreement to 
acquire other products from the trade buyer. Transactions involving the 
bona fide return of products for ordinary and usual commercial reasons 
arising after the product has been sold are not prohibited.



Sec.  11.22  Consignment sales.

    Consignment sales are arrangements wherein the trade buyer is under 
no obligation to pay for distilled spirits, wine, or malt beverages 
until they are sold by the trade buyer.

[[Page 299]]



Sec.  11.23  Sales conditioned on the acquisition of other products.

    (a) General. A sale in which any part of the sale involves, directly 
or indirectly, the acquisition by the industry member from the trade 
buyer, or the agreement, as a condition to present or future sales, to 
accept other products from the trade buyer is prohibited.
    (b) Exchange. The exchange of one product for another is prohibited 
as a sales transaction conditioned on the acquisition of other products. 
However, the exchange of a product for equal quantities (case for case) 
of the same type and brand of product, in containers of another size is 
not considered an acquisition of ``other'' products and is not 
prohibited if there was no direct or implied privilege of return 
extended when the product was originally sold. Industry members may make 
price adjustments on products eligible for exchange under this 
paragraph.



Sec.  11.24  Other than a bona fide sale.

    ``Other than a bona fide sale'' includes, but is not limited to, 
sales in connection with which the industry member purchases or rents 
the display, shelf, storage or warehouse space to be occupied by such 
products at premises owned or controlled by the retailer.

[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995]



  Subpart D_Rules for the Return of Distilled Spirits, Wine, and Malt 
                                Beverages



Sec.  11.31  General.

    (a) Section 5(d) of the Act provides, in part, that it is unlawful 
to sell, offer to sell, or contract to sell products with the privilege 
of return for any reason, other than those considered to be ``ordinary 
and usual commercial reasons'' arising after the product has been sold. 
Sections 11.32 through 11.39 specify what are considered ``ordinary and 
usual commercial reasons'' for the return of products, and outline the 
conditions and limitations for such returns.
    (b) An industry member is under no obligation to accept the return 
of products for the reasons listed in Sec. Sec.  11.32 through 11.39.

     Exchanges and Returns for Ordinary and Usual Commercial Reasons



Sec.  11.32  Defective products.

    Products which are unmarketable because of product deterioration, 
leaking containers, damaged labels or missing or mutilated tamper 
evident closures may be exchanged for an equal quantity of identical 
products or may be returned for cash or credit against outstanding 
indebtedness.

[T.D. ATF-364, 60 FR 20427, Apr. 26, 1995]



Sec.  11.33  Error in products delivered.

    Any discrepancy between products ordered and products delivered may 
be corrected, within a reasonable period after delivery, by exchange of 
the products delivered for those which were ordered, or by a return for 
cash or credit against outstanding indebtedness.



Sec.  11.34  Products which may no longer be lawfully sold.

    Products which may no longer be lawfully sold may be returned for 
cash or credit against outstanding indebtedness. This would include 
situations where, due to a change in regulation or administrative 
procedure over which the trade buyer or an affiliate of the trade buyer 
has no control, a particular size or brand is no longer permitted to be 
sold.

[T.D. ATF-364, 60 FR 20428, Apr. 26, 1995]



Sec.  11.35  Termination of business.

    Products on hand at the time a trade buyer terminates operations may 
be returned for cash or credit against outstanding indebtedness. This 
does not include a temporary seasonal shutdown (see Sec.  11.39).

[T.D. ATF-364, 60 FR 20428, Apr. 26, 1995]



Sec.  11.36  Termination of franchise.

    When an industry member has sold products for cash or credit to one 
of its wholesalers and the distributorship arrangement is subsequently 
terminated, stocks of the product on hand may be returned for cash or 
credit against outstanding indebtedness.

[[Page 300]]



Sec.  11.37  Change in product.

    A trade buyer's inventory of a product which has been changed in 
formula, proof, label or container (subject to Sec.  11.46) may be 
exchanged for equal quantities of the new version of that product.



Sec.  11.38  Discontinued products.

    When a producer or importer discontinues the production or 
importation of a product, a trade buyer's inventory of that product may 
be returned for cash or credit against outstanding indebtedness.



Sec.  11.39  Seasonal dealers.

    Industry members may accept the return of products from retail 
dealers who are only open a portion of the year, if the products are 
likely to spoil during the off season. These returns will be for cash or 
for credit against outstanding indebtedness.

   Exchanges and Returns for Reasons Not Considered Ordinary and Usual



Sec.  11.45  Overstocked and slow-moving products.

    The return or exchange of a product because it is overstocked or 
slow-moving does not constitute a return for ``ordinary and usual 
commercial reasons.''



Sec.  11.46  Seasonal products.

    The return or exchange of products for which there is only a limited 
or seasonal demand, such as holiday decanters and certain distinctive 
bottles, does not constitute a return for ``ordinary and usual 
commercial reasons.''



PART 12_FOREIGN NONGENERIC NAMES OF GEOGRAPHIC SIGNIFICANCE USED IN THE DESIGNATION OF WINES--Table of Contents




                      Subpart A_General Provisions

Sec.
12.1 Scope.
12.2 Territorial extent.
12.3 Procedure for recognition of foreign distinctive designations.

Subpart B [Reserved]

      Subpart C_Foreign Nongeneric Names of Geographic Significance

12.21 List of examples of names by country.

Subpart D_Foreign Nongeneric Names Which Are Distinctive Designations of 
                          Specific Grape Wines

12.31 List of approved names by country.

    Authority: 27 U.S.C. 205.

    Source: T.D. ATF-296, 55 FR 17967, Apr. 30, 1990, unless otherwise 
noted.



                      Subpart A_General Provisions



Sec.  12.1  Scope.

    The regulations in this part relate to foreign names of geographic 
significance used in the designation of wines which are recognized as 
nongeneric under 27 CFR 4.24, and include those nongeneric names which 
the Administrator has found to be distinctive designations of wine, as 
defined in Sec.  4.24(c)(1) of this chapter.



Sec.  12.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and Puerto Rico.



Sec.  12.3  Procedure for recognition of foreign distinctive designations.

    (a) Procedure. Under the provisions of 27 CFR 70.701(c), the 
Administrator may approve petitions requesting TTB recognition of names 
of geographic significance which are the distinctive designations of 
specific wines under Sec.  4.24(c) of this chapter.
    (b) Format. A petition shall be in the form of a letterhead 
application requesting that TTB recognize the distinctive wine 
designation listed in their petition. The petition should present 
evidence to support a finding that the geographic designation is known 
to the U.S. consumer and trade as the designation of a specific wine of 
a particular place or region, distinguishable from all other wines. All 
background material and supporting data submitted will be made part of 
the application and will be considered in the review process.

[T.D. ATF-296, 55 FR 17967, Apr. 30, 1990, as amended by T.D. ATF-463, 
66 FR 42733, Aug. 15, 2001]

[[Page 301]]

Subpart B [Reserved]



      Subpart C_Foreign Nongeneric Names of Geographic Significance



Sec.  12.21  List of examples of names by country.

    The names listed in this section are examples of foreign nongeneric 
names of geographic significance under Sec.  4.24(c) (1) and (2) of this 
chapter.
    (a) Argentina: Alto Colorado, Valles Calchaquies.
    (b) Australia: Adelaide, Barossa Valley, Clare Valley, Cowra, 
Forbes, Geelong, Goulburn Valley, Granite Belt, Great Western, Hunter 
Valley, McLaren Vale, Mudgee, Murray River Valley, New South Wales, 
North Richmond, Queensland, South Australia, Swan Valley, Tasmania, 
Victoria, Western Australia, Yarra Valley.
    (c) Austria: Bisamberg-Kreuzenstein, Burgenland, Carnuntum, 
Frauenweingarten, Kapellenweg, Kirchberger Wagram, Matzner Hugel, 
Niederosterreich, Nussberg, Pinkatal, Schatzberg, Sekt, Wachau, 
Weststeiermark, Wien.
    (d) Federal Republic of Germany: Ahr, Bacharach, Bad Durkheim, 
Baden, Badisches Frankenland, Badstube, Bayerischer Bodensee, 
Bernkastel, Bingen, Breisgau, Deidesheimer Hofstuck, Dhroner Hofberger, 
Erdener Treppchen, Graach, Graben, Hessische Bergstrasse, Himmelreich, 
Hochheimer Holle, Johannisberg, Klosterberg, Kocher-Jagst-Tauber, 
Kreuznach, Kurfurstlay, Loreley, Maindreieck, Mainviereck, 
Markgraflerland, Mittelrhein, Moseltor, Nahe, Nierstein, Obermosel, 
Oppenheimer Krotenbrunnen, Ortenau, Remstal-Stuttgart, Rhein-Burgengau, 
Rheinfalz, Rheingau, Rheinhessen, Schloss Bockelheim, Sekt, 
Siebengebirge, Starkenburg, Steigerwald, Sudliche Weinstrasse, Trier, 
Umstadt, Urziger Wurzgarten, Walporzheim/Ahrtal, Wiltinger Scharzberg, 
Winkeler Jesuitengarten, Wonnegau, Wurttemberg, Zell/Mosel.
    (e) France: Ajaccio, Arbois, Auxey-Duresses, Bandol, Bearn, Bellet, 
Bergerac, Blagny, Blaye, Bonnezeaux, Bourg, Buzet, Cadillac, Cahors, 
Canon-Fronsac, Cassis, Cerons, Charlemagne, Chateau Chalon, Chateau-
Grillet, Chinon, Chorey-les-Beaunes, Clos de Tart, Clos des Lambrays, 
Clos Saint-Denis, Collioure, Condrieu, Cornas, Coteaux de l'Aubance, 
Coteaux du Languedoc, Coteaux du Loir, Coteaux du Lyonnais, Coteaux du 
Tricastin, Cotes de Duras, Cotes de Provence, Cotes du Jura, Cotes du 
Roussillon, Cotes du Ventoux, Crepy, Dezize-les-Maranges, Faugeres, 
Fitou, Fixin, Gaillac, Gigondas, Givry, Gros Plant, Irouleguy, 
Jasnieres, Jurancon, Ladoix, L'Etoile, Limoux, Lirac, Loupiac, Madiran, 
Mazis-Chambertin, Menetou Salon, Minervois, Monbazillac, Montagny, 
Monthelie, Montlouis, Montravel, Moulis, Muscat de Beaumes de Venise, 
Muscat de Frontignan, Neac, Pacherenc du Vic Bilh, Palette, Pecharmant, 
Pernand-Vergelesses, Picpoul-de-Pinet, Pineau des Charentes, Pouilly-
Loche, Quarts-de-Chaume, Quincy, Regnie, Reuilly, Rosette, Rully, Saint-
Aubin, Saint-Chinian, Saint-Georges-d'Orques, Saint-Joseph, Saint-
Nicolas-de-Bourgueil, Saint-Peray, Saint-Romain, Saint-Veran, Sainte-
Croix-du-Mont, Saussignac, Sauvignon de Saint-Bris, Savennieres, 
Seyssel, Vin de Lavilledieu, Vin de pays de l'Aude, Vin de Savoie, Vin 
du Bugey, Vin du Haut-Poitou.
    (f) Greece: Aghialos, Amynteon, Archanes, Daphnes, Goumenissa, 
Kantza, Mantinea, Mavrodaphni Cefalonia, Mavrodaphni Patras, Moschatos 
Lemnos, Moschatos Rhodes, Naoussa, Nemea, Paros, Peza, Plagies Melitona, 
Rapsani, Retsina Attica, Retsina Megaron, Samos, Santorini, Sitia, 
Sitsa.
    (g) Italy: Abruzzo, Acqui, Affile, Aleatico di Gradoli, Alto Mincio, 
Avellino, Barbera del Monferrato, Basilicata, Bianco di Custoza, Bianco 
Pisano di S. Torpe, Boca, Campidano di Terralba, Castelli di Jesi, 
Chieri, Cinque Terre, Ciro, Colli Albani, Colli del Trasimeno, Diano 
d'Alba, Est! Est! Est! di Montefiascone, Etna, Fara, Faro, Franciacorta, 
Gabiano, Gavi, Ghemme, Ischia, Lambrusco Reggiano, Lamezia, Langhe 
Monregalesi, Lessona, Lipari, Melissa, Metauro, Molise, Olevano Romano, 
Oristano, Ovada, Parrina, Piceno, Piemonte, Piglio, Pollino, Puglia, 
Romagna,

[[Page 302]]

Rosso Barletta, Savuto, Sicilia, Sorbara, Sulcis, Taurasi, Torgiano, 
Trani, Valtellina Sassella, Velletri, Veneto, Vermentino di Gallura, 
Vesuvio, Vulture, Zagarolo.
    (h) New Zealand: Blenheim, Canterbury, Central Otago, Gisborne, 
Hawkes Bay, Henderson, Marlborough, Nelson, Northland, Richmond, Rodney, 
South Auckland, Te Kauwhata, Wanganui, Wellington.
    (i) Portugal: Algarve, Alijo, Bairrada, Baixo Corgo, Basto, Beiras, 
Belem, Braga, Bucelas, Camara de Lobos, Campanario, Cantahede, 
Carcavelos, Cartaxo, Chamusca, Colares, Douro, Estremadura, Favaios, 
Lafoes, Lagoa, Lagos, Lamego, Lousada, Meda, Mesao Frio, Moncao, 
Moscatel de Setubal, Murca, Nelas, Penafiel, Pico, Portimao, Preces, 
Ribatejo-Oeste, Sabrosa, Santa Luzia, Sao Joao, Sao Martinho, Sao Pedro, 
Tavira, Torres Vedras, Tras-os-Montes, Viana do Castelo, Vila Real, 
Vinho Verde.
    (j) Romania: Alba Iulia, Arges, Bistrita-Nasaud, Bujoru, Cotesti, 
Cotnari, Dealu Mare, Dealurile, Dragasani, Drobeta Turnuseverin, Istria, 
Ivesti, Jidvei, Medias, Mehedinti, Minis, Moldovei, Murfatlar, 
Nicoresti, Odobesti, Oltina, Panciu, Recas, Sarica Niculitel, Sebes, 
Segarcea, Tecuci-Galati, Teremia, Tirnave.
    (k) Spain: Alella, Alicante, Almansa, Ampurdan-Costa Brava, Campo de 
Borja, Carinena, Cava, Condado de Huelva, Jumilla, La Mancha, 
Manzanilla-Sanlucar de Barrameda, Mentrida, Montilla-Moriles, Navarra, 
Penedes, Priorato, Ribeiro, Ribera del Duero, Rueda, Tarragona, Utiel-
Requena, Valdeorras, Valencia, Yecla.
    (l) Switzerland: Agarn, Aire-la-Ville, Argovie, Auvernier, Avully, 
Berne, Bernex, Bonvillars, Bratsch, Chalais, Chamoson, Cressier, Cully, 
Dardagny, Dezaley, Epesses, Erlenbach, Friburg, Fully, Geneve, Grisons, 
Gy, Herrliberg, Hornussen, La Cote, Lavaux, Lens, Limmattal, Lucerne, 
Lutry, Meilen, Montreux, Neuchatel, Niedergesteln, Riex, Rivaz, 
Schaffhouse, Schlossgut Herdern, Schwyz, Suisse, Swiss, Tessin, 
Thurgovie, Valais, Varen/Varone, Vaud, Veyrier, Villette, Zeneggen, 
Zurcher Unterland, Zurich.
    (m) Yugoslavia: Blatina Mostar, Bolski Plavac, Borje, Brodska 
Grasevina, Crnogorski Vranac, Dingac, Erdutski Burgundac Bijeli, Faros, 
Grk Lumbarda, Ilocka Frankovka, Kutjevacka Grasevina, Merlot Bujstine, 
Plesivicki Rizling Rajnski, Porecki Merlot, Postup, Primostenski Babic, 
Smedereveski Sovinjon, Vinaracki Merlo, Viska Vugava, Vrsacki Rizling, 
Zlata Radgonska Penina.



Subpart D_Foreign Nongeneric Names Which Are Distinctive Designations of 
                          Specific Grape Wines



Sec.  12.31  List of approved names by country.

    The names listed in this section are foreign nongeneric names of 
geographic significance which are also recognized by the Administrator 
as distinctive designations of specific grape wines, in accordance with 
Sec.  4.24(c)(1) and (3) of this chapter.
    (a) Federal Republic of Germany: Bernkasteler Doctor (Doktor), 
Deidesheimer, Dexheimer Doktor, Erbacher Marcobrunn, Forster, Forster 
Jesuitengarten, Graacher Himmelreich, Liebfraumilch, Liebfrauenmilch, 
Mosel, Mosel-Saar-Ruwer, Ockfener Bockstein, Piesporter Goldtropfchen, 
Piesporter Michelsberg, Piesporter Treppchen, Rudesheimer, 
Scharzhofberger, Schloss Johannisberger, Schloss Vollrads, Wehlener 
Sonnenuhr, Zeller Schwarze Katz.
    (b) France: Aloxe-Corton, Alsace or Vin d'Alsace, Anjou, Barsac, 
Batard-Montrachet, Beaujolais, Beaujolais Villages, Beaune, Bonnes 
Mares, Bordeaux, Bordeaux Blanc, Bordeaux Rouge, Bourgogne, Brouilly, 
Chambertin, Chambolle-Musigny, Charmes-Chambertin, Chassagne-Montrachet, 
Chateau Lafite, Chateau Margaux, Chateau Yquem, Chateauneuf-du-Pape, 
Chenas, Chevalier-Montrachet, Chiroubles, Clos de la Roche, Clos de 
Vougeot, Corton, Corton-Charlemagne, Cote de Beaune, Cote de Beaune-
Villages, Cote de Brouilly, Cote de Nuits, Cote de Nuits-Villages, Cote 
Rotie, Coteaux du Layon, Cotes du Rhone, Echezeaux,

[[Page 303]]

Entre-Deux-Mers, Fleurie, Gevrey-Chambertin, Grands Echezeaux, Graves, 
Haut Medoc, Hermitage, La Tache, Loire, Macon, Margaux, Medoc, Mercurey, 
Meursault, Montrachet, Morgon, Moulin-a-Vent, Muscadet, Musigny, Nuits 
or Nuits-Saint-Georges, Pauillac, Pomerol, Pommard, Pouilly-Fuisse, 
Pouilly Fume, Puligny-Montrachet, Rhone, Richebourg, Romanee-Conti, 
Romanee Saint-Vivant, Rose d'Anjou, Saint-Amour, Saint-Emilion, Saint-
Estephe, Saint-Julien, Sancerre, Santenay, Saumur, Savigny or Savigny-
les-Beaunes, Tavel, Touraine, Volnay, Vosne-Romanee, Vouvray.
    (c) Italy: Asti Spumante, Barbaresco, Barbera d'Alba, Barbera 
d'Asti, Bardolino, Barolo, Brunello di Montalcino, Dolcetto d'Alba, 
Frascati, Gattinara, Lacryma Christi, Nebbiolo d'Alba, Orvieto, Soave, 
Valpolicella, Vino Nobile de Montepulciano.
    (d) Portugal: Dao, Oporto, Porto, or Vinho do Porto.
    (e) Spain: Lagrima, Rioja.



PART 13_LABELING PROCEEDINGS--Table of Contents




             Subpart A_Scope and Construction of Regulations

Sec.
13.1 Scope of part.
13.2 Delegations of the Administrator.
13.3 Related regulations.

                          Subpart B_Definitions

13.11 Meaning of terms.

                         Subpart C_Applications

13.20 Forms prescribed.
13.21 Application for certificate.
13.22 Withdrawal of applications.
13.23 Notice of denial.
13.25 Appeal of qualification or denial.
13.26 Decision after appeal of qualification or denial.
13.27 Second appeal of qualification or denial.

             Subpart D_Revocations of Specific Certificates

13.41 Authority to revoke certificates.
13.42 Notice of proposed revocation.
13.43 Decision after notice of proposed revocation.
13.44 Appeal of revocation.
13.45 Final decision after appeal.

         Subpart E_Revocation by Operation of Law or Regulation

13.51 Revocation by operation of law or regulation.
13.52 Notice of revocation.
13.53 Appeal of notice of revocation.
13.54 Decision after appeal.

                         Subpart F_Miscellaneous

13.61 Publicity of information.
13.62 Third-party comment on certificates.
13.71 Informal conferences.
13.72 Effective dates of revocations.
13.73 Effect of revocation.
13.74 Surrender of certificates.
13.75 Evidence of receipt by TTB.
13.76 Service on applicant or certificate holder.
13.81 Representation before TTB.
13.91 Computation of time.
13.92 Extensions.

           Subpart G_Appeals Concerning Other Agencies' Rules

13.101 Appeals concerning use of the term ``organic.''

    Authority: 27 U.S.C. 205(e), 26 U.S.C. 5301 and 7805.

    Source: T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 13 appear by T.D. ATF-
449, 66 FR 19085, Apr. 13, 2001.



             Subpart A_Scope and Construction of Regulations



Sec.  13.1  Scope of part.

    The regulations in this part govern the procedure and practice in 
connection with the issuance, denial, and revocation of certificates of 
label approval, certificates of exemption from label approval, and 
distinctive liquor bottle approvals under 27 U.S.C. 205(e) and 26 U.S.C. 
5301. The regulations in this part also provide for appeal procedures 
when applications for label approval, exemptions from label approval, or 
distinctive liquor bottle approvals are denied, when such applications 
are approved with qualifications, or when these applications are 
approved and then subsequently revoked. The appeal process in this part 
does

[[Page 304]]

not apply to organic claims on alcohol beverage labels. See Sec.  
13.101.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-483, 67 
FR 62858, Oct. 8, 2002 ]



Sec.  13.2  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.13, Delegation of the Administrator's 
Authorities in 27 CFR Part 13, Labeling Proceedings. You may obtain a 
copy of this order by accessing the TTB Web site (http://www.ttb.gov) or 
by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. TTB-44, 71 FR 16924, Apr. 4, 2006]



Sec.  13.3  Related regulations.

    The following regulations also relate to this part:

7 CFR Part 205--National Organic Program
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act, Nonindustrial Use of Distilled Spirits and Wine, 
Bulk Sales and Bottling of Distilled Spirits
27 CFR Part 4--Labeling and Advertising of Wine
27 CFR Part 5--Labeling and Advertising of Distilled Spirits
27 CFR Part 7--Labeling and Advertising of Malt Beverages
27 CFR Part 9--American Viticultural Areas
27 CFR Part 12--Foreign Nongeneric Names of Geographic Significance Used 
in the Designation of Wines
27 CFR Part 16--Alcoholic Beverage Health Warning Statement
27 CFR Part 19--Distilled Spirits Plants
27 CFR Part 24--Wine
27 CFR Part 25--Beer
27 CFR Part 26--Liquors and Articles from Puerto Rico and the Virgin 
Islands
27 CFR Part 27--Importation of Distilled Spirits, Wines, and Beer
27 CFR 28--Exportation of Alcohol
27 CFR Part 71--Rules of Practice in Permit Proceedings

[T.D. ATF-483, 67 FR 62858, Oct. 8, 2002, as amended by T.D. TTB-8, 69 
FR 3829, Jan. 27, 2004]



                          Subpart B_Definitions



Sec.  13.11  Meaning of terms.

    Where used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
subpart. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``include'' and ``including'' do not exclude things 
not enumerated that are in the same general class.
    Act. The Federal Alcohol Administration Act.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Applicant. The permittee or brewer whose name, address, and basic 
permit number, or plant registry number, appears on an unapproved Form 
5100.31, application for a certificate of label approval, certificate of 
exemption from label approval, or distinctive liquor bottle approval.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.13, Delegation of the Administrator's Authorities in 27 CFR Part 
13, Labeling Proceedings.
    Brewer. Any person who brews beer (except a person who produces only 
beer exempt from tax under 26 U.S.C. 5053(e)) and any person who 
produces beer for sale.
    Certificate holder. The permittee or brewer whose name, address, and 
basic permit number, or plant registry number, appears on an approved 
Form 5100.31, certificate of label approval, certificate of exemption 
from label approval, or distinctive liquor bottle approval.
    Certificate of exemption from label approval. A certificate issued 
on Form 5100.31 which authorizes the bottling of wine or distilled 
spirits, under the condition that the product will under no 
circumstances be sold, offered for sale,

[[Page 305]]

shipped, delivered for shipment, or otherwise introduced by the 
applicant, directly or indirectly, into interstate or foreign commerce.
    Certificate of label approval. A certificate issued on Form 5100.31 
that authorizes the bottling or packing of wine, distilled spirits, or 
malt beverages, or the removal of bottled wine, distilled spirits, or 
malt beverages from customs custody for introduction into commerce, as 
long as the project bears labels identical to the labels affixed to the 
face of the certificate, or labels with changes authorized by the 
certificate.
    Distilled spirits. Ethyl alcohol, hydrated oxide of ethyl, spirits 
of wine, whisky, rum, brandy, gin, and other distilled spirits, 
including all dilutions and mixtures thereof for nonindustrial use. The 
term ``distilled spirits'' does not include mixtures containing wine, 
bottled at 48 degrees of proof or less, if the mixture contains more 
than 50 percent wine on a proof gallon basis.
    Distinctive liquor bottle. A liquor bottle of distinctive shape or 
design.
    Distinctive liquor bottle approval. Approval issued on Form 5100.31 
that authorizes the bottling of distilled spirits, or the removal of 
bottled distilled spirits from customs custody for introduction into 
commerce, as long as the bottle is identical to the photograph affixed 
to the face of the form.
    Interstate or foreign commerce. Commerce between any State and any 
place outside that State, or commerce within any Territory or the 
District of Columbia, or between points within the same State but 
through any place outside that State.
    Liquor bottle: A bottle made of glass or earthenware, or of other 
suitable material approved by the Food and Drug Administration, which 
has been designed or is intended for use as a container for distilled 
spirits for sale for beverage purposes, and which has been determined by 
the appropriate TTB officer to protect the revenue adequately.
    Malt beverage. A beverage made by the alcoholic fermentation of an 
infusion or decoction, or combination of both, in potable brewing water, 
of malted barley with hops, or their parts, or their products, and with 
or without other malted cereals, and with or without the addition of 
unmalted or prepared cereals, other carbohydrates, or products prepared 
therefrom, and with or without the addition of carbon dioxide, and with 
or without other wholesome products suitable for human food consumption.
    Permittee. Any person holding a basic permit under the Federal 
Alcohol Administration Act.
    Person. Any individual, partnership, joint stock company, business 
trust, association, corporation, or other form of business enterprise, 
including a receiver, trustee, or liquidating agent and including an 
officer or employee of any agency of a State or political subdivision 
thereof.
    TTB. The Alcohol and Tobacco Tax and Trade Bureau, Department of the 
Treasury, Washington, DC.
    United States. The several States and Territories and the District 
of Columbia; the term ``State'' includes a Territory and the District of 
Columbia; and the term ``Territory'' means the Commonwealth of Puerto 
Rico.
    Use of other terms. Any other term defined in the Federal Alcohol 
Administration Act and used in this part shall have the same meaning 
assigned to it by the Act.
    Wine. Wine as defined in section 610 and section 617 of the Revenue 
Act of 1918 (26 U.S.C. 3036, 3044, 3045) and other alcoholic beverages 
not so defined, but made in the manner of wine, including sparkling and 
carbonated wine, wine made from condensed grape must, wine made from 
other agricultural products than the juice of sound, ripe grapes, 
imitation wine, compounds sold as wine, vermouth, cider, perry, and 
sake; in each instance only if containing not less than 7 percent, and 
not more than 24 percent of alcohol by volume, and if for nonindustrial 
use.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19085, Apr. 13, 2001; T.D. TTB-44, 71 FR 16924, Apr. 4, 2006]



                         Subpart C_Applications



Sec.  13.20  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information

[[Page 306]]

called for in each form must be furnished as indicated by the headings 
on the form and the instructions on or pertaining to the form. In 
addition, the information called for in each form is that which is 
required by this part. The form will be filed in accordance with the 
instructions on the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-449, 66 FR 19085, Apr. 13, 2001, as amended by T.D. TTB-44, 71 
FR 16924, Apr. 4, 2006]



Sec.  13.21  Application for certificate.

    (a) Form of application. An applicant for a certificate of label 
approval, certificate of exemption from label approval, or distinctive 
liquor bottle approval, must send or deliver signed duplicate copies of 
TTB Form 5100.31, ``Application For And Certification/Exemption Of 
Label/Bottle Approval'' according to the instructions for that form. If 
the application complies with applicable laws and regulations, a 
certificate of label approval, certificate of exemption from label 
approval, or distinctive liquor bottle approval will be issued. If the 
approval is qualified in any manner, such qualifications will be set 
forth in the appropriate space on the form.
    (b) Time period for action on application. Within 90 days of receipt 
of an application, the appropriate TTB officer must notify the applicant 
whether the application has been approved or denied. The appropriate TTB 
officer may extend this period of time once, by an additional 90 days, 
if he or she finds that unusual circumstances require additional time to 
consider the issues presented by an application. If the appropriate TTB 
officer extends the period, he or she must notify the applicant by 
letter, along with a brief explanation of the issues presented by the 
label. If the applicant receives no decision from the appropriate TTB 
officer within the time periods set forth in this paragraph, the 
applicant may file an appeal as provided in Sec.  13.25.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19085, Apr. 13, 2001]



Sec.  13.22  Withdrawal of applications.

    A person who has filed an application for a certificate of label 
approval, certificate of exemption from label approval, or distinctive 
liquor bottle approval, may withdraw such application at any time before 
TTB takes action on the application.



Sec.  13.23  Notice of denial.

    Whenever an application for a certificate of label approval, 
certificate of exemption from label approval, or distinctive liquor 
bottle approval is denied, the appropriate TTB officer must issue to the 
applicant a notice of denial on TTB Form 5190.1, entitled ``TTB F 
5100.31 Correction Sheet,'' briefly setting forth the reasons why the 
label or bottle is not in compliance with the applicable laws or 
regulations. The applicant may then submit a new application for 
approval after making the necessary corrections.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19085, Apr. 13, 2001]



Sec.  13.25  Appeal of qualification or denial.

    (a) Form of appeal. If an applicant for a certificate of label 
approval, certificate of exemption from label approval, or distinctive 
liquor bottle approval wishes to appeal the qualified approval or denial 
of an application, the applicant may file a written appeal with the 
appropriate TTB officer within 45 days after the date of the notice of 
qualification or denial. The appeal should explain why the applicant 
believes that the label or bottle is in compliance with applicable laws 
and regulations. If no appeal is filed within 45 days after the date of 
the notice of qualification or denial, the notice will be the final 
decision of TTB.
    (b) Informal resolution. Applicants may choose to pursue informal 
resolution of disagreements regarding correction sheets or 
qualifications by requesting an informal conference with the appropriate 
TTB officer. However,

[[Page 307]]

formal administrative appeals must comply with the provisions of 
paragraph (a) of this section.



Sec.  13.26  Decision after appeal of qualification or denial.

    (a) Decision. After considering any written arguments or evidence 
presented by the applicant, the appropriate TTB officer must issue a 
written decision to the applicant. If the decision is that the qualified 
approval or denial should stand, a copy of the application, marked 
``appeal denied,'' must be returned to the applicant with an explanation 
of the decision and the specific laws or regulations relied upon in 
qualifying or denying the application. If the decision is that the 
certificate of label approval, certificate of exemption from label 
approval, or distinctive liquor bottle application should be approved 
without qualification, the applicant should resubmit TTB Form 5100.31 
and the certificate will be issued.
    (b) Time limits for decision. Within 90 days of receipt of an 
appeal, the appropriate TTB officer must notify the appellant whether 
the appeal has been granted or denied. If an applicant requests an 
informal conference as part of an appeal, as authorized in Sec.  13.71, 
the 90-day period will begin 10 days after the date of the conference to 
allow for consideration of any written arguments, facts or evidence 
submitted after the conference. The appropriate TTB officer may extend 
this period of time once by an additional 90 days if he or she finds 
that unusual circumstances require additional time to consider the 
issues presented by an appeal. If the appropriate TTB officer extends 
the period, he or she must notify the applicant by letter, briefly 
explaining the issues presented by the label. If the appellant receives 
no decision from the appropriate TTB officer within the time periods set 
forth in this paragraph, the appellant may appeal as provided in Sec.  
13.27.
    (c) Judicial review. Prior to applying to the Federal courts for 
review, an applicant must first exhaust his or her administrative 
remedies, including the appeal rights set forth in this section and 
Sec.  13.27.



Sec.  13.27  Second appeal of qualification or denial.

    (a) Form of appeal. The decision after appeal of qualification or 
denial may be appealed in writing to the appropriate TTB officer within 
45 days after the date of that decision. If the appropriate TTB officer 
concludes that the qualified approval or denial was correct, a copy of 
the application, marked ``appeal denied,'' must be returned to the 
applicant, with an explanation of the decision and the specific laws or 
regulations relied upon in qualifying or denying the application. If the 
appropriate TTB officer concludes that the certificate of label 
approval, certificate of exemption from label approval, or distinctive 
liquor bottle application should be approved without qualification, the 
applicant may resubmit TTB Form 5100.31 and the certificate will be 
issued.
    (b) Time limits for decision after second appeal. Within 90 days of 
receipt of the second appeal, the appropriate TTB officer must notify 
the appellant whether the appeal has been granted or denied. If an 
applicant requests an informal conference as part of an appeal, as 
authorized in Sec.  13.71, the 90-day period will begin 10 days after 
the date of the conference to allow for consideration of any written 
arguments, facts or evidence submitted after the conference. The 
appropriate TTB officer may extend this period of time once, by an 
additional 90 days, if he or she finds that unusual circumstances 
require additional time to consider the unique issues presented by an 
appeal. If the appropriate TTB officer extends the time period, he or 
she must notify the applicant by letter, briefly explaining the issues 
presented by the label. The decision made on the second appeal shall be 
the final decision of TTB.
    (c) Judicial review. An appeal to the appropriate TTB officer is 
required prior to application to the Federal courts for review of any 
denial or qualification of an application.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999; T.D. ATF-406a, 64 FR 10949, 
Mar. 8, 1999, as amended by T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]

[[Page 308]]



             Subpart D_Revocations of Specific Certificates



Sec.  13.41  Authority to revoke certificates.

    Certificates of label approval, certificates of exemption from label 
approval, and distinctive liquor bottle approvals, previously approved 
on TTB Form 5100.31, may be revoked by the appropriate TTB officer upon 
a finding that the label or bottle at issue is not in compliance with 
the applicable laws or regulations.



Sec.  13.42  Notice of proposed revocation.

    Except as provided in Sec.  13.51, when the appropriate TTB officer 
determines that a certificate of label approval, certificate of 
exemption from label approval, or distinctive liquor bottle approval has 
been issued for a label or bottle that is not in compliance with the 
laws or regulations, he or she must issue to the certificate holder a 
notice of proposed revocation. The notice must set forth the basis for 
the proposed revocation and must provide the certificate holder with 45 
days from the date of receipt of the notice to present written arguments 
or evidence why the revocation should not occur.



Sec.  13.43  Decision after notice of proposed revocation.

    (a) Decision. After considering any written arguments or evidence 
presented by the certificate holder, the appropriate TTB officer must 
issue a decision. If the decision is to revoke the certificate, a letter 
must be sent to the holder explaining the revocation of the certificate, 
and the specific laws or regulations relied upon in determining that the 
label or bottle was not in conformance with law or regulations. If the 
decision is to withdraw the proposed revocation, a letter of explanation 
must be sent.
    (b) Time limits for decision. Within 90 days of receipt of written 
arguments or evidence from the certificate holder, the appropriate TTB 
officer shall notify the appellant of his or her decision. If a 
certificate holder requests an informal conference as part of an appeal, 
as authorized in Sec.  13.71, the 90-day period will begin 10 days after 
the date of the conference to allow for consideration of any written 
arguments, facts or evidence submitted after the conference. The 
appropriate TTB officer may extend this period of time once by an 
additional 90 days if he or she finds that unusual circumstances require 
additional time to consider the issues presented by a proposed 
revocation. If the appropriate TTB officer extends the time period, he 
or she must notify the applicant by letter, along with a brief 
explanation of the issues under consideration.



Sec.  13.44  Appeal of revocation.

    (a) Filing of appeal. A certificate holder who wishes to appeal the 
decision to revoke a certificate of label approval, certificate of 
exemption from label approval, or distinctive liquor bottle approval, 
may file a written appeal setting forth why the holder believes that the 
decision was erroneous. The appeal must be filed with the appropriate 
TTB officer within 45 days after the date of receipt of the decision to 
revoke a certificate of label approval, certificate of exemption from 
label approval, or distinctive liquor bottle approval.
    (b) Judicial review. An appeal to the appropriate TTB officer is 
required prior to application to the Federal courts for review of any 
revocation of a certificate.

[T.D. ATF-449, 66 FR 19086, Apr.13, 2001]



Sec.  13.45  Final decision after appeal.

    (a) Issuance of decision. After considering any written arguments or 
evidence presented by the certificate holder or the holder's 
representative, the appropriate TTB officer must issue a final decision. 
If the decision is to revoke the certificate of label approval, 
certificate of exemption from label approval, or distinctive liquor 
bottle approval, a letter must be issued explaining the basis for the 
revocation, and the specific laws or regulations relied upon in 
determining that the label or bottle was not in conformance with law or 
regulations. If the decision is to withdraw the proposed revocation, a 
letter explaining the decision must be sent.
    (b) Time limits for decision. Within 90 days of receipt of an 
appeal, the appropriate TTB officer must notify the holder whether the 
appeal has been

[[Page 309]]

granted or denied. If a certificate holder requests an informal 
conference as part of an appeal, as authorized in Sec.  13.71, the 90-
day period will begin 10 days after the date of the conference to allow 
for consideration of any written arguments, facts or evidence submitted 
after the conference. The appropriate TTB officer may extend this period 
of time once by an additional 90 days if he or she finds that unusual 
circumstances require additional time to consider the issues presented 
by an appeal. If the appropriate TTB officer extends the period, he or 
she must notify the holder by letter, briefly explaining the issues 
presented by the label. The final decision after appeal will be the 
final decision of TTB.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19086, Apr. 13, 2001]



         Subpart E_Revocation by Operation of Law or Regulation



Sec.  13.51  Revocation by operation of law or regulation.

    TTB will not individually notify all holders of certificates of 
label approval, certificates of exemption from label approval, or 
distinctive liquor bottle approvals that their approvals have been 
revoked if the revocation occurs by operation of either TTB-administered 
law or regulation or applicable law or regulation of other agencies. If 
changes in labeling or other requirements are made as a result of 
amendments or revisions to the law or regulations, the certificate 
holder must voluntarily surrender all certificates that are no longer in 
compliance. The holder must submit applications for new certificates in 
compliance with the new requirements, unless TTB determines that new 
applications are not necessary. If a new application is unnecessary, it 
is the responsibility of the certificate holder to ensure that labels 
are in compliance with their requirements of the new regulations or law.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-483, 67 
FR 62858, Oct. 8, 2002]



Sec.  13.52  Notice of revocation.

    If TTB determines that a certificate holder is still using a 
certificate of label approval, certificate of exemption from label 
approval, or distinctive liquor bottle approval that is no longer in 
compliance due to amendments or revisions in the law or regulations, the 
appropriate TTB officer will notify the certificate holder in writing 
that the subject certificate has been revoked by operation of law or 
regulations, with a brief description of the grounds for such 
revocation.



Sec.  13.53  Appeal of notice of revocation.

    Within 45 days after the date of receipt of a notice of revocation 
by operation of law or regulations, the certificate holder may file a 
written appeal with the appropriate TTB officer. The appeal should set 
forth the reasons why the certificate holder believes that the 
regulation or law at issue does not require the revocation of the 
certificate.



Sec.  13.54  Decision after appeal.

    (a) Issuance of decision. After considering all written arguments 
and evidence submitted by the certificate holder, the appropriate TTB 
officer must issue a final decision regarding the revocation by 
operation of law or regulation of the certificate. If the decision is 
that the law or regulation at issue requires the revocation of the 
certificate of label approval, certificate of exemption from label 
approval, or distinctive liquor bottle approval, a letter must be issued 
explaining the basis for the revocation, and citing the specific laws or 
regulations which required the revocation of the certificate. If the 
decision is that the law or regulation at issue does not require the 
revocation of such certificate, a letter explaining the decision must be 
sent to the certificate holder. The decision after appeal will be the 
final decision of the TTB.
    (b) Time limits for decision. Within 90 days of receipt of an 
appeal, the appropriate TTB officer must notify the holder whether the 
appeal has been granted or denied. If a certificate holder requests an 
informal conference as part of an appeal, as authorized in Sec.  13.71, 
the 90-day period will begin 10 days after the date of the conference to

[[Page 310]]

allow for consideration of any written arguments, facts or evidence 
submitted after the conference. The appropriate TTB officer may extend 
this period of time once by an additional 90 days if he or she finds 
that unusual circumstances require additional time to consider the 
issues presented by an appeal. If the appropriate TTB officer extends 
the period, he or she must notify the holder by letter, briefly 
explaining the issues presented by the label. The decision of the 
appropriate TTB officer shall be the final decision of the TTB.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19086, Apr. 13, 2001]



                         Subpart F_Miscellaneous



Sec.  13.61  Publicity of information.

    (a) Pending and denied applications--(1) General. Pending and denied 
applications for certificates of label approval, certificates of 
exemption from label approval, or distinctive liquor bottle approvals 
are treated as proprietary information, unless the applicant or 
certificate holder provides written authorization to release such 
information.
    (2) Labels that make organic claims. TTB will disclose applications 
for approval of labels that make organic claims to the appropriate 
office of the United States Department of Agriculture to assure such 
labels comply with National Organic Program rules.
    (b) Approved applications. The appropriate TTB officer shall cause 
to be maintained in the TTB public reading room for public inspection, a 
copy of each approved application for certificate of label approval, 
certificate of exemption from label approval, or distinctive liquor 
bottle approval. These documents may be viewed during business hours at 
1310 G Street NW., Washington, DC, or by viewing the Public COLA 
Registry on the TTB Web site at (http://www.ttb.gov).
    (c) Revoked certificates. If an approved certificate is subsequently 
revoked, the record of the approved application will remain on file for 
public inspection, but the index will be annotated to show it was 
revoked.
    (d) Further disclosure of information on denied or revoked 
certificates. If an applicant whose application is pending or has been 
denied, or a holder of a revoked certificate of label approval, 
certificate of exemption from label approval, or distinctive liquor 
bottle approval, issues public statements concerning TTB action in 
connection with such application or certificate, then TTB may issue a 
statement to clarify its position or correct any misstatements of fact, 
including a disclosure of information contained on the application or 
certificate of label approval, certificate of exemption from label 
approval, or distinctive liquor bottle approval.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-483, 67 
FR 62859, Oct. 8, 2002]



Sec.  13.62  Third-party comment on certificates.

    When a third party (such as foreign government, another Federal 
agency, a State agency, an industry association, a competitor of a 
certificate holder, a consumer or consumer group, or any other 
interested person) wishes to comment on an approved certificate of label 
approval, certificate of exemption from label approval, or distinctive 
liquor bottle approval, such comments should be submitted in writing to 
the appropriate TTB officer who will review the subject of the comment. 
If the comment raises an issue that is outside the scope of TTB's 
statutory or regulatory authority, or the appropriate TTB officer 
determines that the certificate is in compliance with applicable law and 
regulations, the commenter will be informed that no further action will 
be taken. If the appropriate TTB officer determines that the commenter 
has raised a valid issue that TTB has authority to address, he or she 
will initiate appropriate action. The appropriate TTB officer may, in 
his or her discretion, notify the commenter as to the action being taken 
by TTB with respect to the certificate.

[T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]



Sec.  13.71  Informal conferences.

    (a) General. As part of a timely filed written appeal of a notice of 
denial, a notice of proposed revocation, or a decision to revoke a 
certificate, an applicant or certificate holder may file a

[[Page 311]]

written request for an informal conference with the appropriate TTB 
officer deciding the appeal.
    (b) Informal conference procedures. The appropriate TTB officer and 
the applicant or certificate holder will agree upon a date for an 
informal conference. The informal conference is for purposes of 
discussion only, and no transcript shall be made. If the applicant or 
certificate holder wishes to rely upon arguments, facts, or evidence 
presented at the informal conference, he or she has 10 days after the 
date of the conference to incorporate such arguments, facts, or evidence 
in a written submission to the appropriate TTB officer.

[T.D. ATF-449, 66 FR 19086, Apr. 13, 2001]



Sec.  13.72  Effective dates of revocations.

    (a) Effective dates--(1) Revocation of specific certificates. A 
written decision to revoke a certificate becomes effective 60 days after 
the date of the decision.
    (2) Revocation by operation of law or regulation. If a certificate 
is revoked by operation of law or regulation, the revocation becomes 
effective on the effective date of the change in law or regulation with 
which the certificate does not comply, or if a separate label compliance 
date is given, on that date.
    (b) Use of certificate during period of appeal. If a certificate 
holder files a timely appeal after receipt of a decision to revoke a 
certificate pursuant to Sec.  13.44, the holder may continue to use the 
certificate at issue until the effective date of a final decision issued 
by the appropriate TTB officer. However, the effective date of a notice 
of revocation by operation of law or regulations, issued pursuant to 
Sec.  13.52, is not stayed pending the appeal.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19086, Apr. 13, 2001]



Sec.  13.73  Effect of revocation.

    On and after the effective date of a revocation of a certificate of 
label approval, certificate or exemption from label approval, or 
distinctive liquor bottle approval, the label or distinctive liquor 
bottle in question may not be used to bottle or pack distilled spirits, 
wine or malt beverages, to remove such products from the place where 
they were bottled or packed, or to remove such products from customs 
custody for consumption.



Sec.  13.74  Surrender of certificates.

    On the effective date of a final decision that has been issued to 
revoke a certificate of label approval, certificate of exemption from 
label approval, or distinctive liquor bottle approval, the certificate 
holder must surrender the original of the certificate to TTB for manual 
cancellation. Regardless of whether the original certificate of label 
approval, certificate of exemption from label approval, or distinctive 
liquor bottle approval has been manually canceled or not, the 
certificate is null and void after the effective date of the revocation. 
It is a violation of this section for any certificate holder to present 
a certificate of label approval, certificate of exemption from label 
approval, or distinctive liquor bottle approval to an official of the 
United States Government as a valid certificate after the effective date 
of the revocation of the certificate if the certificate holder has been 
previously notified that such certificate has been revoked by TTB.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19086, Apr. 13, 2001]



Sec.  13.75  Evidence of receipt by TTB.

    If there is a time limit on TTB action that runs from TTB's receipt 
of a document, the date of receipt may be established by a certified 
mail receipt or equivalent written acknowledgment secured by a 
commercial delivery service or by a written acknowledgment of personal 
delivery. In the absence of proof of receipt, the date the document is 
logged in by TTB will be considered the date of receipt.



Sec.  13.76  Service on applicant or certificate holder.

    (a) Method of service. TTB must serve notices of denial on an 
applicant by first class mail, or by personal delivery. TTB must serve 
notices of proposed revocation and notices of revocation on a 
certificate holder by certified mail, return receipt requested, by a 
commercial delivery service that will

[[Page 312]]

provide an equivalent written acknowledgment from the recipient, or by 
personal delivery.
    (b) Date of receipt. If there is a time limit on a certificate 
holder's action that runs from the holder's receipt of a document, the 
date of receipt may be established by a certified mail receipt, an 
equivalent written acknowledgment secured by a commercial delivery 
service, or by a written acknowledgment of personal delivery.
    (c) Person to be served. When service is by mail or other commercial 
delivery service, a copy of the document must be sent to the applicant 
or certificate holder at the address stated in the application or at the 
last known address. If authorized by the applicant or certificate 
holder, the copy of the document may be mailed to a designated 
representative. If service is by personal delivery, a copy of the 
document must be delivered to the certificate holder or to a designated 
representative. In the case of a corporation, partnership, or 
association, personal delivery may be made to an officer, manager, or 
general agent thereof, or to the attorney of record.



Sec.  13.81  Representation before TTB.

    An applicant or certificate holder may be represented by an 
attorney, certified public accountant, or other person recognized to 
practice before TTB as provided in 31 CFR part 8 (Practice Before the 
Bureau of Alcohol, Tobacco and Firearms). The applicable requirements of 
26 CFR 601.521 through 601.527 (conference and practice requirements for 
alcohol, tobacco, and firearms activities) shall apply.



Sec.  13.91  Computation of time.

    In computing any period of time prescribed or allowed by this part, 
the day of the act, event or default after which the designated period 
of time is to run, is not counted. The last day of the period to be 
computed is counted, unless it is a Saturday, Sunday, or legal holiday, 
in which case the period runs until the next day that is not a Saturday, 
Sunday, or legal holiday. Papers or documents that are required or 
permitted to be filed under this part must be received at the 
appropriate office within the filing time limits, if any.



Sec.  13.92  Extensions.

    An applicant or certificate holder may apply to the appropriate TTB 
officer deciding the appeal for an extension of any time limit 
prescribed in this part. The time limit may be extended if TTB agrees 
the request is reasonable.

[T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-449, 66 
FR 19086, Apr. 13, 2001]



           Subpart G_Appeals Concerning Other Agencies' Rules



Sec.  13.101  Appeals concerning use of the term ``organic.''

    To appeal a determination that an organic claim on a label does not 
comply with the National Organic Program rules in 7 CFR part 205, 
contact the Program Manager, National Organic Program (NOP), 
Agricultural Marketing Service, United States Department of Agriculture. 
See the NOP appeal process in 7 CFR 205.680.

[T.D. ATF-483, 67 FR 62859, Oct. 8, 2002]



PART 16_ALCOHOLIC BEVERAGE HEALTH WARNING STATEMENT--Table of Contents




                             Subpart A_Scope

Sec.
16.1 General.
16.2 Territorial extent.

                          Subpart B_Definitions

16.10 Meaning of terms.

 Subpart C_Health Warning Statement Requirements for Alcoholic Beverages

16.20 General.
16.21 Mandatory label information.
16.22 General requirements.

                      Subpart D_General Provisions

16.30 Certificates of label approval.
16.31 Exports.
16.32 Preemption.
16.33 Civil penalties.

    Authority: 27 U.S.C. 205, 215, 218; 28 U.S.C. 2461 note.

    Source: T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, unless otherwise 
noted.

[[Page 313]]



                             Subpart A_Scope



Sec.  16.1  General.

    The regulations in this part relate to a health warning statement on 
labels of containers of alcoholic beverages.



Sec.  16.2  Territorial extent.

    This part applies to the several States of the United States, the 
District of Columbia, and the territories and possessions of the United 
States.



                          Subpart B_Definitions



Sec.  16.10  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
shall have the meaning ascribed in this section.
    Act. The Alcoholic Beverage Labeling Act of 1988.
    Alcoholic beverage. Includes any beverage in liquid form which 
contains not less than one-half of one percent (.5%) of alcohol by 
volume and is intended for human consumption.
    Bottle. To fill a container with an alcoholic beverage and to seal 
such container.
    Bottler. A person who bottles an alcoholic beverage.
    Brand label. The label carrying, in the usual distinctive design, 
the brand name of the alcoholic beverage.
    Container. The innermost sealed container, irrespective of the 
material from which made, in which an alcoholic beverage is placed by 
the bottler and in which such beverage is offered for sale to members of 
the general public.
    Health. Includes, but is not limited to, the prevention of 
accidents.
    Person. Any individual, partnership, joint-stock company, business 
trust, association, corporation, or any other business or legal entity, 
including a receiver, trustee, or liquidating agent, and also includes 
any State, any State agency, or any officer or employee thereof.
    Sale and distribution. Includes sampling or any other distribution 
not for sale.
    State. Includes any political subdivision of any State, the District 
of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, Wake 
Island, the Midway Islands, Kingman Reef, or Johnston Island.
    State law. Includes State statutes, regulations and principles and 
rules having the force of law.
    TTB. The Alcohol and Tobacco Tax and Trade Bureau, Department of the 
Treasury, Washington, DC.
    United States. The several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, Guam, the Virgin Islands, American Samoa, Wake Island, the 
Midway Islands, Kingman Reef, and Johnston Island.
    Use of other terms. Any other term defined in the Alcoholic Beverage 
Labeling Act and used in this part shall have the same meaning as 
assigned to it by the Act.

[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, as amended by T.D. ATF-425, 65 
FR 11892, Mar. 7, 2000; T.D. TTB-44, 71 FR 16925, Apr. 4, 2006]



 Subpart C_Health Warning Statement Requirements for Alcoholic Beverages



Sec.  16.20  General.

    (a) Domestic products. On and after November 18, 1989, no person 
shall bottle for sale or distribution in the United States any alcoholic 
beverage unless the container of such beverage bears the health warning 
statement required by Sec.  16.21. It is the responsibility of the 
bottler to provide, upon request, sufficient evidence to establish that 
the alcoholic beverage was bottled prior to November 18, 1989.
    (b) Imported products. On and after November 18, 1989, no person 
shall import for sale or distribution in the United States any alcoholic 
beverage unless the container of such beverage bears the health warning 
statement required by Sec.  16.21. This requirement does not apply to 
alcoholic beverages that were bottled in the foreign country prior to 
November 18, 1989. It is the responsibility of the importer to provide, 
upon request, sufficient evidence to establish that the alcoholic 
beverage was bottled prior to such date.

[[Page 314]]



Sec.  16.21  Mandatory label information.

    There shall be stated on the brand label or separate front label, or 
on a back or side label, separate and apart from all other information, 
the following statement:

    GOVERNMENT WARNING: (1) According to the Surgeon General, women 
should not drink alcoholic beverages during pregnancy because of the 
risk of birth defects.
    (2) Consumption of alcoholic beverages impairs your ability to drive 
a car or operate machinery, and may cause health problems.

(Authority: Sec. 8001, Pub. L. 100-690, 102 Stat. 4181, 27 U.S.C. 215)



Sec.  16.22  General requirements.

    (a) Legibility. (1) All labels shall be so designed that the 
statement required by Sec.  16.21 is readily legible under ordinary 
conditions, and such statement shall be on a contrasting background.
    (2) The first two words of the statement required by Sec.  16.21, 
i.e., ``GOVERNMENT WARNING,'' shall apear in capital letters and in bold 
type. The remainder of the warning statement may not appear in bold 
type.
    (3) The letters and/or words of the statement required by Sec.  
16.21 shall not be compressed in such a manner that the warning 
statement is not readily legible.
    (4) The warning statement required by Sec.  16.21 shall appear in a 
maximum number of characters (i.e., letters, numbers, marks) per inch, 
as follows:

------------------------------------------------------------------------
                                                               Maximum
                                                              number of
      Minimum required type size for warning statement        characters
                                                               per inch
------------------------------------------------------------------------
1 millimeter...............................................           40
2 millimeters..............................................           25
3 millimeters..............................................           12
------------------------------------------------------------------------

    (b) Size of type. (1) Containers of 237 milliliters (8 fl. oz.) or 
less. The mandatory statement required by Sec.  16.21 shall be in 
script, type, or printing not smaller than 1 millimeter.
    (2) Containers of more than 237 milliliters (8 fl. oz.) up to 3 
liters (101 fl. oz.). The mandatory statement required by Sec.  16.21 
shall be in script, type, or printing not smaller than 2 millimeters.
    (3) Containers of more than 3 liters (101 fl. oz.). The mandatory 
statement required by Sec.  16.21 shall be in script, type, or printing 
not smaller than 3 millimeters.
    (c) Labels firmly affixed. Labels bearing the statement required by 
Sec.  16.21 which are not an integral part of the container shall be 
affixed to containers of alcoholic beverages in such manner that thay 
cannot be removed without thorough application of water or other 
solvents.

[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, as amended by T.D. 372, 61 FR 
20723, May 8, 1996]



                      Subpart D_General Provisions



Sec.  16.30  Certificates of label approval.

    Certificates of label/bottle approval or certificates of exemption 
from label approval on TTB Form 5100.31, issued pursuant to parts 4, 5, 
and 7 of this chapter for imported and domestically bottled wine, 
distilled spirits, and malt beverages, shall not be approved with 
respect to such beverage bottled on and after November 18, 1989, unless 
the label for the container of such beverage bears the health warning 
statement required.

[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, as amended by T.D. ATF-425, 65 
FR 11892, Mar. 7, 2000]



Sec.  16.31  Exports.

    The regulations in this part shall not apply with respect to 
alcoholic beverages that are produced, imported, bottled, or labeled for 
export from the United States, or for delivery to a vessel or aircraft, 
as supplies, for consumption beyond the jurisdiction of the internal 
revenue laws of the United States: Provided, That this exemption shall 
not apply with respect to alcoholic beverages that are produced, 
imported, bottled, or labeled for sale, distribution, or shipment to 
members or units of the Armed Forces of the United States, including 
those located outside the United States.



Sec.  16.32  Preemption.

    No statement relating to alcoholic beverages and health, other than 
the statement required by Sec.  16.21, shall be required under State law 
to be placed on any container of an alcoholic beverage, or on any box, 
carton, or other package, irrespective of the material

[[Page 315]]

from which made, that contains such a container.



Sec.  16.33  Civil penalties.

    (a) General. Any person who violates the provisions of this part 
shall be subject to a civil penalty of not more than $10,000, and each 
day shall constitute a separate offense.
    (b) Adjusted penalty for violations occurring after October 23, 
1996. Pursuant to the provisions of the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended, the civil penalty provided 
for in paragraph (a) of this section shall be periodically adjusted in 
accordance with inflation. Accordingly, for violations occurring after 
October 23, 1996, the civil penalty shall be not more than $11,000.

[T.D. ATF-385, 61 FR 54936, Oct. 23, 1996]



PART 17_DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN MANUFACTURING NONBEVERAGE PRODUCTS--Table of Contents




                      Subpart A_General Provisions

Sec.
17.1 Scope of regulations.
17.2 Forms prescribed.
17.3 Alternate methods or procedures.
17.4 OMB control numbers assigned under the Paperwork Reduction Act.
17.5 Products manufactured in Puerto Rico or the Virgin Islands.
17.6 Signature authority.
17.7 Delegations of the Administrator.

                          Subpart B_Definitions

17.11 Meaning of terms.

                          Subpart C_Special Tax

17.21 Payment of special tax.
17.22 Rate of special tax
17.23 Special tax for each place of business.
17.24 Time for payment of special tax.

                           Special Tax Returns

17.31 Filing of return and payment of special tax.
17.32 Completion of TTB Form 5630.5.
17.33 Signature on returns, TTB Form 5630.5.
17.34 Verification of returns.

                     Employer Identification Number

17.41 Requirement for employer identification number.
17.42 Application for employer identification number.
17.43 Preparation and filing of Form SS-4.

                      Subpart D_Special Tax Stamps

17.51 Issuance of stamps.
17.52 Distribution of stamps for multiple locations.
17.53 Correction of errors on stamps.
17.54 Lost or destroyed stamps.
17.55 Retention of special tax stamps.

                           Change in Location

17.61 General.
17.62 Failure to register.
17.63 Certificates in lieu of lost stamps.

                            Change in Control

17.71 General.
17.72 Right of succession.
17.73 Failure to register.
17.74 Certificates in lieu of lost stamps.
17.75 Formation of partnership or corporation.
17.76 Addition or withdrawal of partners.
17.77 Reincorporation.

                         Change in Name or Style

17.81 General.
17.82 Change in capital stock.
17.83 Sale of stock.

                          Refund of Special Tax

17.91 Absence of liability, refund of special tax.
17.92 Filing of refund claim.
17.93 Time limit for filing refund claim.

                Subpart E_Bonds and Consents of Sureties

17.101 General.
17.102 Amount of bond.
17.103 Bonds obtained from surety companies.
17.104 Deposit of collateral.
17.105 Filing of powers of attorney.
17.106 Consents of surety.
17.107 Strengthening bonds.
17.108 Superseding bonds.

                          Termination of Bonds

17.111 General.
17.112 Notice by surety of termination of bond.
17.113 Extent of release of surety from liability under bond.
17.114 Release of collateral.

                     Subpart F_Formulas and Samples

17.121 Product formulas.
17.122 Amended or revised formulas.
17.123 Statement of process.
17.124 Samples.
17.125 Adoption of formulas and processes.

[[Page 316]]

17.126 Formulas for intermediate products.
17.127 Self-manufactured ingredients treated optionally as unfinished 
          nonbeverage products.

                          Approval of Formulas

17.131 Formulas on TTB Form 5154.1.
17.132 U.S.P., N.F., and H.P.U.S. preparations.
17.133 Food product formulas.
17.134 Determination of unfitness for beverage purposes.
17.135 Use of specially denatured alcohol (S.D.A.).
17.136 Compliance with Food and Drug Administration requirements.
17.137 Formulas disapproved for drawback.

                      Subpart G_Claims for Drawback

17.141 Drawback.
17.142 Claims.
17.143 Notice for monthly claims.
17.144 Bond for monthly claims.
17.145 Date of filing claim.
17.146 Information to be shown by the claim.
17.147 Supporting data.
17.148 Allowance of claims.

                       Spirits Subject to Drawback

17.151 Use of distilled spirits.
17.152 Time of use of spirits.
17.153 Recovered spirits.
17.154 Spirits contained in intermediate products.
17.155 Spirits consumed in manufacturing intermediate products.

                            Subpart H_Records

17.161 General.
17.162 Receipt of distilled spirits.
17.163 Evidence of taxpayment of distilled spirits.
17.164 Production record.
17.165 Receipt of raw ingredients.
17.166 Disposition of nonbeverage products.
17.167 Inventories.
17.168 Recovered spirits.
17.169 Transfer of intermediate products.
17.170 Retention of records.
17.171 Inspection of records.

                   Subpart I_Miscellaneous Provisions

17.181 Exportation of medicinal preparations and flavoring extracts.
17.182 Drawback claims by druggists.
17.183 Disposition of recovered alcohol and material from which alcohol 
          can be recovered.
17.184 Distilled spirits container marks.
17.185 Requirements for intermediate products and unfinished nonbeverage 
          products.
17.186 Transfer of distilled spirits to other containers.
17.187 Discontinuance of business.

    Authority: 26 U.S.C. 5010, 5131-5134, 5143, 5146, 5148, 5206, 5273, 
6011, 6065, 6091, 6109, 6151, 6402, 6511, 7011, 7213, 7652, 7805; 31 
U.S.C. 9301, 9303, 9304, 9306.

    Source: T.D. ATF-379, 61 FR 31412, June 20, 1996, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 17 appear by T.D. ATF-
436, 66 FR 5470, 5471, Jan. 19, 2001.



                      Subpart A_General Provisions



Sec.  17.1  Scope of regulations.

    The regulations in this part apply to the manufacture of medicines, 
medicinal preparations, food products, flavors, flavoring extracts, and 
perfume that are unfit for beverage use and are made with taxpaid 
distilled spirits. The regulations cover the following topics: obtaining 
drawback of internal revenue tax on distilled spirits used in the 
manufacture of nonbeverage products; the payment of special 
(occupational) taxes in order to be eligible to receive drawback; and 
bonds, claims, formulas and samples, losses, and records to be kept 
pertaining to the manufacture of nonbeverage products.



Sec.  17.2  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all 
forms, including bonds and records, required by this part. All of the 
information called for in each form shall be furnished as indicated by 
the headings on the form and the instructions on or pertaining to the 
form. In addition, information called for in each form shall be 
furnished as required by this part. The form will be filed in accordance 
with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5470, Jan. 19, 2001; T.D. TTB-44, 71 FR 16925, Apr. 4, 2006]

[[Page 317]]



Sec.  17.3  Alternate methods or procedures.

    (a) General. The appropriate TTB officer may approve the use of an 
alternate method or procedure in lieu of a method or procedure 
prescribed in this part if he or she finds that--
    (1) Good cause has been shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the method or procedure 
prescribed by this part, and affords equivalent security to the revenue; 
and
    (3) The alternate method or procedure will not be contrary to any 
provision of law, and will not result in any increase in cost to the 
Government or hinder the effective administration of this part.
    (b) Application. A letter of application to employ an alternate 
method or procedure must be submitted to the appropriate TTB officer. 
The application shall specifically describe the proposed alternate 
method or procedure, and shall set forth the reasons therefor.
    (c) Approval. No alternate method or procedure shall be employed 
until the application has been approved by the appropriate TTB officer. 
The appropriate TTB officer shall not approve any alternate method 
relating to the giving of any bond or to the assessment, payment, or 
collection of any tax. The manufacturer shall, during the period of 
authorization, comply with the terms of the approved application and 
with any conditions thereto stated by the appropriate TTB officer in the 
approval. Authorization for any alternate method or procedure may be 
withdrawn by written notice from the Administrator whenever in his or 
her judgment the revenue is jeopardized, the effective administration of 
this part is hindered, or good cause for the authorization no longer 
exists. The manufacturer shall retain, in the records required by Sec.  
17.170, any authorization given by the appropriate TTB officer under 
this section.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5470, Jan. 19, 2001]



Sec.  17.4  OMB control numbers assigned under the Paperwork Reduction Act.

    (a) Purpose. This section collects and displays the control numbers 
assigned to the information collection requirements of this part by the 
Office of Management and Budget under the Paperwork Reduction Act of 
1980, Public Law 96-511.
    (b) OMB control number 1512-0078. OMB control number 1512-0078 is 
assigned to the following section in this part: Sec.  17.106.
    (c) OMB control number 1512-0079. OMB control number 1512-0079 is 
assigned to the following sections in this part: Sec. Sec.  17.6 and 
17.105.
    (d) OMB control number 1512-0095. OMB control number 1512-0095 is 
assigned to the following sections in this part: Sec. Sec.  17.121, 
17.126, 17.127, 17.132, and 17.136.
    (e) OMB control number 1512-0141. OMB control number 1512-0141 is 
assigned to the following sections in this part: Sec. Sec.  17.92, 
17.93, 17.142, 17.145, and 17.146.
    (f) OMB control number 1512-0188. OMB control number 1512-0188 is 
assigned to the following section in this part: Sec.  17.6.
    (g) OMB control number 1512-0378. OMB control number 1512-0378 is 
assigned to the following sections in this part: Sec. Sec.  17.3, 17.54, 
17.111, 17.112, 17.122, 17.123, 17.124, 17.125, 17.143, 17.168(a), 
17.183, and 17.187.
    (h) OMB control number 1512-0379. OMB control number 1512-0379 is 
assigned to the following sections in this part: Sec. Sec.  17.161, 
17.162, 17.163, 17.164, 17.165, 17.166, 17.167, 17.168(b), 17.169, 
17.170, 17.182, and 17.186.
    (i) OMB control number 1512-0472. OMB control number 1512-0472 is 
assigned to the following sections in this part: Sec. Sec.  17.31, 
17.32, 17.33, 17.34, 17.41, 17.53, 17.61, 17.63, 17.71, and 17.74.
    (j) OMB control number 1512-0492. OMB control number 1512-0492 is 
assigned to the following sections in this part: Sec. Sec.  17.42, 
17.43, 17.52, and 17.55.
    (k) OMB control number 1512-0500. OMB control number 1512-0500 is 
assigned to the following sections in this part: Sec. Sec.  17.31, 
17.32, 17.33, 17.34, 17.41, and 17.53.

[[Page 318]]

    (l) OMB control number 1512-0514. OMB control number 1512-0514 is 
assigned to the following sections in this part: Sec. Sec.  17.147 and 
17.182.



Sec.  17.5  Products manufactured in Puerto Rico or the Virgin Islands.

    For additional provisions regarding drawback on distilled spirits 
contained in medicines, medicinal preparations, food products, flavors, 
flavoring extracts, or perfume which are unfit for beverage purposes and 
which are brought into the United States from Puerto Rico or the U.S. 
Virgin Islands, see part 26, subparts I and Ob, of this chapter.

[T.D. ATF-436, 66 FR 5470, 5471, Jan. 19, 2001, as amended by T.D. ATF-
459, 66 FR 38549, July 25, 2001]



Sec.  17.6  Signature authority.

    No claim, bond, tax return, or other required document executed by a 
person as an agent or representative is acceptable unless a power of 
attorney or other proper notification of signature authority has been 
filed with the TTB office where the required document must be filed. The 
appropriate TTB officer with whom the claim or other required document 
is filed may, when he or she considers it necessary, require additional 
evidence of the authority of the agent or representative to execute the 
document. Except as otherwise provided by this part, powers of attorney 
shall be filed on TTB Form 1534 (5000.8), Power of Attorney. 
Notification of signature authority of partners, officers, or employees 
may be given by filing a copy of corporate or partnership documents, 
minutes of a meeting of the board of directors, etc. For corporate 
officers or employees, TTB Form 5100.1, Signing Authority for Corporate 
Officials, may be used. For additional provisions regarding powers of 
attorney, see Sec.  17.105 and 26 CFR part 601, subpart E.



Sec.  17.7  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.17, Delegation of the Administrator's 
Authorities in 27 CFR Part 17, Drawback on Taxpaid Distilled Spirits 
Used in Manufacturing Nonbeverage Products. You may obtain a copy of 
this order by accessing the TTB Web site (http://www.ttb.gov) or by 
mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. ATF-436, 66 FR 5470, Jan. 19, 2001, as amended by T.D. TTB-44, 71 
FR 16926, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  17.11  Meaning of terms.

    As used in this part, unless the context otherwise requires, terms 
have the meanings given in this section. Words in the plural form 
include the singular, and vice versa, and words indicating the masculine 
gender include the feminine. The terms ``includes'' and ``including'' do 
not exclude things not listed which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.17, Delegation of the Administrator's Authorities in 27 CFR Part 
17, Drawback on Taxpaid Distilled Spirits Used in Manufacturing 
Nonbeverage Products.
    Approved, or approved for drawback. When used with reference to 
products and their formulas, this term means that drawback may be 
claimed on eligible spirits used in such products in accordance with 
this part.
    CFR. The Code of Federal Regulations.
    Distilled spirits, or spirits. That substance known as ethyl 
alcohol, ethanol, spirits, or spirits of wine in any form (including all 
dilutions and mixtures thereof, from whatever source or by whatever 
process produced).
    Effective tax rate. The net tax rate, after reduction for any credit 
allowable under 26 U.S.C. 5010 for wine and flavor content, at which the 
tax imposed on distilled spirits by 26 U.S.C. 5001 or 7652 is paid or 
determined. For distilled

[[Page 319]]

spirits with no wine or flavors content, the effective tax rate equals 
the rate of tax imposed by 26 U.S.C. 5001 or 7652.
    Eligible, or eligible for drawback. When used with reference to 
spirits, this term designates taxpaid spirits which have not yet been 
used in nonbeverage products.
    Filed. Subject to the provisions of Sec. Sec.  70.305 and 70.306 of 
this chapter, a claim for drawback or other document or payment 
submitted under this part is generally considered to have been ``filed'' 
when it is received by the office of the proper Government official; but 
if an item is mailed timely with postage prepaid, then the United States 
postmark date is treated as the date of filing.
    Food products. Includes food adjuncts, such as preservatives, 
emulsifying agents, and food colorings, which are manufactured and used, 
or sold for use, in food.
    Intermediate products. Products to which all three of the following 
conditions apply: they are made with taxpaid distilled spirits, they 
have been disapproved for drawback, and they are made by the 
manufacturer exclusively for its own use in the manufacture of 
nonbeverage products approved for drawback. However, ingredients treated 
as unfinished nonbeverage products under Sec.  17.127 are not considered 
to be intermediate products.
    Medicines. Includes laboratory stains and reagents for use in 
medical diagnostic procedures.
    Month. A calendar month.
    Nonbeverage products. Medicines, medicinal preparations, food 
products, flavors, flavoring extracts, or perfume, which are 
manufactured using taxpaid distilled spirits, and which are unfit for 
use for beverage purposes.
    Person. An individual, trust, estate, partnership, association, 
company, or corporation.
    Proof gallon. A gallon of liquid at 60 degrees Fahrenheit, which 
contains 50 percent by volume of ethyl alcohol having a specific gravity 
of 0.7939 at 60 degrees Fahrenheit (referred to water at 60 degrees 
Fahrenheit as unity), or the alcoholic equivalent thereof.
    Quarter. A 3-month period beginning January 1, April 1, July 1, or 
October 1.
    Recovered spirits. Taxpaid spirits that have been salvaged, after 
use in the manufacture of a product or ingredient, so that the spirits 
are reusable.
    Special tax. The special (occupational) tax on manufacturers of 
nonbeverage products, imposed by 26 U.S.C. 5131.
    Subject to drawback. This term is used with reference to spirits. 
Eligible spirits become ``subject to drawback'' when they are used in 
the manufacture of a nonbeverage product. When spirits have become 
``subject to drawback,'' they may be included in the manufacturer's 
claim for drawback of tax covering the period in which they were first 
used.
    Tax year. The period from July l of one calendar year through June 
30 of the following year.
    Taxpaid. When used with respect to distilled spirits, this term 
shall mean that all taxes imposed on such spirits by 26 U.S.C. 5001 or 
7652 have been determined or paid as provided by law.
    This chapter. Chapter I of title 27 of the Code of Federal 
Regulations.
    U.S.C. The United States Code.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5470, Jan. 19, 2001; T.D. TTB-44, 71 FR 16926, Apr. 4, 2006]



                          Subpart C_Special Tax



Sec.  17.21  Payment of special tax.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, each person who uses taxpaid distilled spirits in the 
manufacture or production of nonbeverage products shall pay special tax 
as specified in Sec.  17.22 in order to be eligible to receive drawback 
on the spirits so used. Special tax shall be paid for each tax year 
during which spirits were used in the manufacture of a product covered 
by a drawback claim. If a claim is filed covering taxpaid distilled 
spirits used during the preceding tax year, and special tax has not been 
paid for the preceding tax year, then special tax for the preceding tax 
year shall be paid. Regardless of the portion of a tax year covered by a 
claim, the full annual special tax shall be paid. The manufacturer is 
not required to pay the special tax if drawback is not claimed.

[[Page 320]]

    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. Accordingly, payment of the tax is not a prerequisite 
for claiming drawback on spirits used during that period. However, the 
drawback claimant still must register by filing the special tax return 
on Form 5630.5 during the suspension period even though the amount of 
tax due is zero.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]



Sec.  17.22  Rate of special tax.

    Effective January 1, 1988, the rate of special tax is $500 per tax 
year for all persons claiming drawback on distilled spirits used in the 
manufacture or production of nonbeverage products, except that the tax 
rate is zero during the suspension period described in Sec.  17.21(b).

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]



Sec.  17.23  Special tax for each place of business.

    Subject to Sec.  17.21(b), a separate special tax shall be paid for 
each place where distilled spirits are used in the manufacture or 
production of nonbeverage products, except for any such place in a tax 
year for which no claim is filed, or no drawback is paid, on spirits 
used at that place.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]



Sec.  17.24  Time for payment of special tax.

    (a) General. Special tax may be paid in advance of actual use of 
distilled spirits. Special tax shall be paid before a claimant may 
receive drawback. Special tax may be paid without penalty under 26 
U.S.C. 5134(c) at any time prior to completion of final action on the 
claim.
    (b) Suspension of tax. The rate of special tax is zero during the 
period from July 1, 2005, through June 30, 2008 (see Sec.  17.21(b)). 
During this period, the registration requirement continues. The drawback 
claimant must register by filing a special tax return, Form 5630.5. The 
claimant may register without penalty under 26 U.S.C. 5134(c) at any 
time prior to completion of final action on the first claim submitted 
for each tax year.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]

                           Special Tax Returns



Sec.  17.31  Filing of return and payment of special tax.

    Special tax shall be paid by return. The prescribed return is TTB 
Form 5630.5, Special Tax Registration and Return. Special tax returns, 
with payment of tax, shall be filed with TTB in accordance with 
instructions on the form, and the filing of a return is required for 
registration purposes even though no tax is due during the suspension 
period described in Sec.  17.21(b).

(26 U.S.C. 609l, 6151)

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]



Sec.  17.32  Completion of TTB Form 5630.5.

    (a) General. All of the information called for on Form 5630.5 shall 
be provided, including:
    (1) The true name of the taxpayer.
    (2) The trade name(s) (if any) of the business(es) subject to 
special tax.
    (3) The employer identification number (see Sec. Sec.  17.41-43).
    (4) The exact location of the place of business, by name and number 
of building or street, or if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown shall be the taxpayer's 
principal place of business (or principal office, in the case of a 
corporate taxpayer).
    (5) The class of special tax to which the taxpayer is subject or to 
which the return relates during the suspension period described in Sec.  
17.21(b).
    (6) Ownership and control information: The name, position, and 
residence address of every owner of the business and of every person 
having power to control its management and policies

[[Page 321]]

with respect to the activity subject to special tax. ``Owner of the 
business'' shall include every partner if the taxpayer is a partnership, 
and every person owning 10% or more of its stock if the taxpayer is a 
corporation. However, the ownership and control information required by 
this paragraph need not be stated if the same information has been 
previously provided to TTB, and if the information previously provided 
is still current.
    (b) Multiple locations. A taxpayer subject to special tax, or 
required to register during the suspension period described in Sec.  
17.21(b), for the same period at more than one location or for more than 
one class of tax shall--
    (1) File one special tax return, Form 5630.5, with payment of 
applicable tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on the Form 5630.5), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid, or for which registration is being made 
during the suspension period described in Sec.  17.21(b). The original 
of the list shall be filed in accordance with instructions on the 
return, and the copy shall be retained at the taxpayer's principal place 
of business (or principal office, in the case of a corporate taxpayer) 
for the period specified in Sec.  17.170.

(26 U.S.C. 6011, 7011)

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]



Sec.  17.33  Signature on returns, TTB Form 5630.5.

    The return of an individual proprietor shall be signed by the 
proprietor; the return of a partnership shall be signed by a general 
partner; and the return of a corporation shall be signed by a corporate 
officer. All signatures must be original; photocopies are not 
acceptable. In each case, the person signing the return shall designate 
his or her capacity, as ``individual owner,'' ``member of partnership,'' 
or, in the case of a corporation, the title of the officer. Receivers, 
trustees, assignees, executors, administrators, and other legal 
representatives who continue the business of a bankrupt, insolvent, 
deceased person, etc., shall indicate the fiduciary capacity in which 
they act.



Sec.  17.34  Verification of returns.

    TTB Forms 5630.5 shall contain or be verified by a written 
declaration that the return is made under the penalties of perjury.

(68A Stat. 749 (26 U.S.C. 6065))

                     Employer Identification Number



Sec.  17.41  Requirement for employer identification number.

    The employer identification number (defined in 26 CFR 301.7701-12) 
of the taxpayer who has been assigned such a number shall be shown on 
each special tax return (TTB Form 5630.5), including amended returns 
filed under this subpart. Failure of the taxpayer to include the 
employer identification number on Form 5630.5 may result in assertion 
and collection of the penalty specified in Sec.  70.113 of this chapter.

(Secs. 1(a), (b), Pub. L. 87-397, 75 Stat. 828 (26 U.S.C. 6109, 6723))



Sec.  17.42  Application for employer identification number.

    (a) An employer identification number is assigned pursuant to 
application on IRS Form SS-4, Application for Employer Identification 
Number, filed by the taxpayer. Form SS-4 may be obtained from any office 
of the Internal Revenue Service.
    (b) Each taxpayer who files a return on TTB Form 5630.5 shall make 
application on IRS Form SS-4 for an employer identification number, 
unless he or she has already been assigned such a number or made 
application for one. The application on Form SS-4 shall be filed on or 
before the seventh day after the date on which the first return on Form 
5630.5 is filed.
    (c) Each taxpayer shall make application for and shall be assigned 
only one employer identification number, regardless of the number of 
places of business for which the taxpayer is required to file Form 
5630.5.

(Sec. 1(a), Pub. L. 87-397, 75 Stat. 828 (26 U.S.C. 6109))

[[Page 322]]



Sec.  17.43  Preparation and filing of Form SS-4.

    The taxpayer shall prepare and file the application on IRS Form SS-
4, together with any supplementary statement, in accordance with 
instructions on the form or issued in respect to it.

(Sec. 1(a), Pub. L. 87-397, 75 Stat. 828 (26 U.S.C. 6109))



                      Subpart D_Special Tax Stamps



Sec.  17.51  Issuance of stamps.

    (a) Except as otherwise provided in paragraph (b) of this section, 
each manufacturer of nonbeverage products, upon filing a properly 
executed return on TTB Form 5630.5, together with the proper tax payment 
in the applicable full amount due, shall be issued a special tax stamp 
designated ``Manufacturer of Nonbeverage Products.'' This special tax 
stamp shall not be sold or otherwise transferred to another person 
(except as provided in Sec. Sec.  17.71 and 17.72). If the Form 5630.5 
submitted with the tax payment covers multiple locations, the taxpayer 
shall be issued one appropriately designated stamp for each location 
listed in the attachment to Form 5630.5 required by Sec.  17.32(b)(2), 
but showing, as to name and address, only the name of the taxpayer and 
the address of the taxpayer's principal place of business (or principal 
office in the case of a corporate taxpayer).
    (b) During the suspension period described in Sec.  17.21(b) when 
registration is required but no tax is due, a special tax stamp will not 
be issued.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]



Sec.  17.52  Distribution of stamps for multiple locations.

    On receipt of the special tax stamps, the taxpayer shall verify that 
a stamp has been obtained for each location listed on the retained copy 
of the attachment to TTB Form 5630.5 required by Sec.  17.32(b)(2). The 
taxpayer shall designate one stamp for each location and shall type on 
it the trade name (if different from the name in which the stamp was 
issued) and address of the business conducted at the location for which 
the stamp is designated. The taxpayer shall then forward each stamp to 
the place of business designated on the stamp.



Sec.  17.53  Correction of errors on stamps.

    (a) Single location. On receipt of a special tax stamp, the taxpayer 
shall examine it to ensure that the name and address are correctly 
stated. If an error has been made, the taxpayer shall return the stamp 
to TTB at the address shown thereon, with a statement showing the nature 
of the error and setting forth the proper name or address. On receipt of 
the stamp and statement, the data shall be compared with that on TTB 
Form 5630.5, and if an error on the part of TTB has been made, the stamp 
shall be corrected and returned to the taxpayer. If the Form 5630.5 
agrees with the data on the stamp, the taxpayer shall be required to 
file a new Form 5630.5, designated ``Amended Return,'' disclosing the 
proper name and address.
    (b) Multiple locations. If an error is discovered on a special tax 
stamp obtained under the provisions of Sec.  17.32(b), relating to 
multiple locations, and if the error concerns any of the information 
contained in the attachment to Form 5630.5, the taxpayer shall return 
the stamp, with a statement showing the nature of the error and the 
correct data, to his or her principal office. The data on the stamp 
shall then be compared with the taxpayer's copy of the attachment to 
Form 5630.5, retained at the principal office. If the error is in the 
name and address and was made by the taxpayer, the taxpayer shall 
correct the stamp and return it to the designated place of business. If 
the error was made in the attachment to Form 5630.5, the taxpayer shall 
file with TTB an amended Form 5630.5 and an amended attachment with a 
statement showing the error.



Sec.  17.54  Lost or destroyed stamps.

    If a special tax stamp is lost or accidentally destroyed, the 
taxpayer shall immediately notify the appropriate TTB officer. On 
receipt of this notification, the appropriate TTB officer shall issue to 
the taxpayer a ``Certificate in Lieu of Lost or Destroyed Special Tax 
Stamp.'' The taxpayer shall keep the certificate available for 
inspection in

[[Page 323]]

the same manner as prescribed for a special tax stamp in Sec.  17.55.



Sec.  17.55  Retention of special tax stamps.

    Taxpayers shall keep their special tax stamps at the place of 
business covered thereby for the period specified in Sec.  17.170, and 
shall make them available for inspection by any appropriate TTB officer 
during business hours.

(Title II, sec. 201, Pub. L. 85-859, 72 Stat. 1348 (26 U.S.C. 5146))

                           Change in Location



Sec.  17.61  General.

    A manufacturer who, during a tax year for which a special tax return 
has been filed with payment of any tax due, moves its place of 
manufacture to a place other than that specified on the return, shall 
register the change, by executing a new return on Form 5630.5, 
designated as ``Amended Return.'' This Amended Return shall set forth 
the time of the move and the address of the new location. If a special 
tax stamp was issued for the former location, the taxpayer shall also 
submit the special tax stamp for endorsement of the change in location. 
In general, the taxpayer must submit the new return and the special tax 
stamp within 90 days after the move to the new premises. However, if the 
move occurs during the suspension period described in Sec.  17.21(b) 
when no tax was due and no special tax stamp was issued, the taxpayer 
may submit the new return alone without penalty at any time prior to 
completion of final action on the first claim covering use of spirits at 
the new premises, or within 90 days of the move, whichever is later.

(Title II, sec. 201, Pub. L. 85-859, 72 Stat. 1374 (26 U.S.C. 5143))

[T.D. TTB-36, 70 FR 62241, Oct. 31, 2005]



Sec.  17.62  Failure to register.

    Except in the case of claims covering spirits used during the 
suspension period described in Sec.  17.21(b) when the special tax rate 
is zero, a manufacturer who fails to register a change of location with 
TTB, as required by Sec.  17.61, shall pay a new special tax for the new 
location if a claim for drawback is filed on distilled spirits used at 
the new location during the tax year for which the original special tax 
was paid.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62242, Oct. 31, 2005]



Sec.  17.63  Certificates in lieu of lost stamps.

    The provisions of Sec. Sec.  17.61 and 17.62 apply to certificates 
issued in lieu of lost or destroyed special tax stamps.

                            Change in Control



Sec.  17.71  General.

    (a) Subject to paragraph (b) of this section, certain persons may 
qualify for succession to the same privileges granted by law to the 
taxpayer, to cover the remainder of the tax year for which the special 
tax was paid, or for which registration was made during the suspension 
period described in Sec.  17.21(b). Those who may qualify are specified 
in Sec.  17.72. To secure these privileges, the successor or successors 
shall file with TTB, within 90 days after the date on which the 
successor or successors assume control, a return on TTB Form 5630.5, 
showing the basis of the succession.
    (b) With respect to spirits used during the suspension period 
described in Sec.  17.21(b), the successor or successors must file the 
return prior to completion of final action on the claim(s) covering such 
spirits, or within 90 days of the change in control, whichever is later.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62242, Oct. 31, 2005]



Sec.  17.72  Right of succession.

    Under the conditions set out in Sec.  17.71, persons listed below 
have the right of succession:
    (a) The surviving spouse or child, or executor, administrator, or 
other legal representative of a taxpayer.
    (b) A husband or wife succeeding to the business of his or her 
living spouse.
    (c) A receiver or trustee in bankruptcy, or an assignee for the 
benefit of creditors.
    (d) The members of a partnership remaining after the death or 
withdrawal of a general partner.

[[Page 324]]



Sec.  17.73  Failure to register.

    Except in the case of claims covering spirits used during the 
suspension period described in Sec.  17.21(b) when the special tax rate 
is zero, a person eligible for succession to the privileges of a 
taxpayer, in accordance with Sec. Sec.  17.71 and 17.72, who fails to 
register the succession with TTB, as required by Sec.  17.71, shall pay 
a new special tax if a claim for drawback is filed on distilled spirits 
used by the successor during the tax year for which the original special 
tax was paid.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62242, Oct. 31, 2005]



Sec.  17.74  Certificates in lieu of lost stamps.

    The provisions of Sec. Sec.  17.71-73 apply to certificates issued 
in lieu of lost or destroyed special tax stamps.



Sec.  17.75  Formation of partnership or corporation.

    If one or more persons who have filed a special tax return and paid 
any tax due form a partnership or corporation, as a separate legal 
entity, to take over the business of manufacturing nonbeverage products, 
the new firm or corporation shall file a new special tax return and pay 
a new special tax in order to be eligible to receive drawback. In the 
case of claims covering spirits used during the suspension period 
described in Sec.  17.21(b), the rate of special tax is zero.

[T.D. TTB-36, 70 FR 62242, Oct. 31, 2005]



Sec.  17.76  Addition or withdrawal of partners.

    (a) General partners. When a business formed as a partnership, 
subject to the filing of a special tax return, admits one or more new 
general partners, the new partnership shall file a new special tax 
return and pay a new special tax in order to be eligible to receive 
drawback (in the case of claims covering spirits used during the 
suspension period described in Sec.  17.21(b), the rate of special tax 
is zero). Withdrawal of general partners is covered by Sec.  17.72(d).
    (b) Limited partners. Changes in the membership of a limited 
partnership requiring amendment of the certificate but not dissolution 
of the partnership are not changes that incur liability to additional 
special tax or that require the filing of a new special tax return.

[T.D. TTB-36, 70 FR 62242, Oct. 31, 2005]



Sec.  17.77  Reincorporation.

    When a new corporation is formed to take over and conduct the 
business of one or more corporations that have filed a special tax 
return and paid any tax due, the new corporation must file a new special 
tax return, pay special tax, and obtain a special tax stamp in its own 
name. However, in the case of spirits used during the suspension period 
described in Sec.  17.21(b) when no tax is due and no stamp is issued, 
only the filing of a new special tax return is required.

[T.D. TTB-36, 70 FR 62242, Oct. 31, 2005]

                         Change in Name or Style



Sec.  17.81  General.

    A person who filed a special tax return and paid any tax due is not 
required to file a new special tax return or pay a new special tax by 
reason of a mere change in the trade name or style under which the 
business is conducted, nor by reason of a change in management which 
involves no change in the proprietorship of the business.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62242, Oct. 31, 2005]



Sec.  17.82  Change in capital stock.

    A new special tax return and tax payment are not required by reason 
of a change of name or increase in the capital stock of a corporation, 
if the laws of the State of incorporation provide for such changes 
without creating a new corporation.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62242, Oct. 31, 2005]



Sec.  17.83  Sale of stock.

    A new special tax return and tax payment are not required by reason 
of the sale or transfer of all or a controlling

[[Page 325]]

interest in the capital stock of a corporation.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62242, Oct. 31, 2005]

                          Refund of Special Tax



Sec.  17.91  Absence of liability, refund of special tax.

    The special tax paid may be refunded if it is established that the 
taxpayer did not file a claim for drawback for the period covered by the 
special tax stamp. If a claim for drawback is filed, the special tax may 
be refunded if no drawback is paid or allowed for the period covered by 
the stamp.



Sec.  17.92  Filing of refund claim.

    Claim for refund of special tax must be filed on TTB Form 2635 
(5620.8), Claim--Alcohol, Tobacco and Firearms Taxes. The claim must set 
forth in detail sufficient reasons and supporting facts of the exact 
basis of the claim. The special tax stamp shall be attached to the 
claim.

(68A Stat. 791 (26 U.S.C. 6402))

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5471, Jan. 19, 2001]



Sec.  17.93  Time limit for filing refund claim.

    A claim for refund of special tax shall not be allowed unless filed 
within three years after the payment of the tax.

(68A Stat. 808 (26 U.S.C. 6511))



                Subpart E_Bonds and Consents of Sureties



Sec.  17.101  General.

    A bond shall be filed by each person claiming drawback on a monthly 
basis. Persons who claim drawback on a quarterly basis are not required 
to file bonds. Bonds shall be prepared and executed on TTB Form 5154.3, 
Bond for Drawback Under 26 U.S.C. 5131, in accordance with the 
provisions of this part and the instructions printed on the form. The 
bond requirement of this part shall be satisfied either by bonds 
obtained from authorized surety companies or by deposit of collateral 
security. Appropriate TTB officers are authorized to approve all bonds 
and consents of surety required by this part.



Sec.  17.102  Amount of bond.

    The bond shall be a continuing one, in an amount sufficient to cover 
the total drawback to be claimed on spirits used during any quarter. 
However, the amount of any bond shall not exceed $200,000 nor be less 
than $1,000.



Sec.  17.103  Bonds obtained from surety companies.

    (a) The bond may be obtained from any surety company authorized by 
the Secretary of the Treasury to be a surety on Federal bonds. Surety 
companies so authorized are listed in the current revision of Department 
of the Treasury Circular 570 (Companies Holding Certificates of 
Authority as Acceptable Sureties on Federal Bonds and as Acceptable 
Reinsuring Companies), and subject to such amendatory circulars as may 
be issued from time to time. Bonds obtained from surety companies are 
also governed by the provisions of 31 U.S.C. 9304, and 31 CFR part 223.
    (b) A bond executed by two or more surety companies shall be the 
joint and several liability of the principal and the sureties; however, 
each surety company may limit its liability, in terms upon the face of 
the bond, to a definite, specified amount. This amount shall not exceed 
the limitations prescribed for each surety company by the Secretary, as 
stated in Department of the Treasury Circular 570. If the sureties limit 
their liability in this way, the total of the limited liabilities shall 
equal the required amount of the bond.
    (c) Department of the Treasury Circular No. 570 is published in the 
Federal Register annually on the first workday in July. As they occur, 
interim revisions of the circular are published in the Federal Register. 
Copies of the circular may be obtained from: Surety Bond Branch, 
Financial Management Service, Department of the Treasury, Washington, DC 
20227.

(Sec. 1, Pub. L. 97-258, 96 Stat. 1047 (31 U.S.C. 9304))



Sec.  17.104  Deposit of collateral.

    Except as otherwise provided by law or regulations, bonds or notes 
of the

[[Page 326]]

United States, or other obligations which are unconditionally guaranteed 
as to both interest and principal by the United States, may be pledged 
and deposited by principals as collateral security in lieu of bonds 
obtained from surety companies. Deposit of collateral security is 
governed by the provisions of 31 U.S.C. 9303, and 31 CFR part 225.

(Sec. 1, Pub. L. 97-258, 96 Stat. 1046 (31 U.S.C. 9301, 9303))



Sec.  17.105  Filing of powers of attorney.

    (a) Surety companies. The surety company shall prepare and submit 
with each bond, and with each consent to changes in the terms of a bond, 
a power of attorney in accordance with Sec.  17.6, authorizing the agent 
or officer who executed the bond or consent to act in this capacity on 
behalf of the surety. The power of attorney shall be prepared on a form 
provided by the surety company and executed under the corporate seal of 
the company. If other than a manually signed original is submitted, it 
shall be accompanied by certification of its validity.
    (b) Principal. The principal shall execute and file a power of 
attorney, in accordance with Sec.  17.6, for every person authorized to 
execute bonds on behalf of the principal.

(Sec. 1, Pub. L. 97-258, 96 Stat. 1047 (31 U.S.C. 9304, 9306))



Sec.  17.106  Consents of surety.

    The principal and surety shall execute on TTB Form 1533 (5000.18), 
Consent of Surety, any consents of surety to changes in the terms of 
bonds. Form 1533 (5000.18) shall be executed with the same formality and 
proof of authority as is required for the execution of bonds.



Sec.  17.107  Strengthening bonds.

    Whenever the amount of a bond on file and in effect becomes 
insufficient, the principal may give a strengthening bond in a 
sufficient amount, provided the surety is the same as on the bond 
already on file and in effect; otherwise a superseding bond covering the 
entire liability shall be filed. Strengthening bonds, filed to increase 
the bond liability of the surety, shall not be construed in any sense to 
be substitute bonds, and the appropriate TTB officer shall not approve a 
strengthening bond containing any notation which may be interpreted as a 
release of any former bond or as limiting the amount of either bond to 
less than its full amount.



Sec.  17.108  Superseding bonds.

    (a) The principal on any bond filed pursuant to this part may at any 
time replace it with a superseding bond.
    (b) Executors, administrators, assignees, receivers, trustees, or 
other persons acting in a fiduciary capacity continuing or liquidating 
the business of the principal, shall execute and file a superseding bond 
or obtain the consent of the surety or sureties on the existing bond or 
bonds.
    (c) When, in the opinion of the appropriate TTB officer, the 
interests of the Government demand it, or in any case where the security 
of the bond becomes impaired in whole or in part for any reason 
whatever, the principal shall file a superseding bond. A superseding 
bond shall be filed immediately in case of the insolvency of the surety. 
If a bond is found to be not acceptable or for any reason becomes 
invalid or of no effect, the principal shall immediately file a 
satisfactory superseding bond.
    (d) A bond filed under this section to supersede an existing bond 
shall be marked by the obligors at the time of execution, ``Superseding 
Bond.'' When such a bond is approved, the superseded bond shall be 
released as to transactions occurring wholly subsequent to the effective 
date of the superseding bond, and notice of termination of the 
superseded bond shall be issued, as provided in Sec.  17.111.

                          Termination of Bonds



Sec.  17.111  General.

    (a) Bonds on TTB Form 5154.3 shall be terminated by the appropriate 
TTB officer, as to liability on drawback allowed after a specified 
future date, in the following circumstances:
    (1) Pursuant to a notice by the surety as provided in Sec.  17.112.
    (2) Following approval of a superseding bond, as provided in Sec.  
17.108.
    (3) Following notification by the principal of an intent to 
discontinue the filing of claims on a monthly basis.

[[Page 327]]

    (b) However, the bond shall not be terminated until all outstanding 
liability under it has been discharged. Upon termination, the 
appropriate TTB officer shall mark the bond ``canceled,'' followed by 
the date of cancellation, and shall issue a notice of termination of 
bond. A copy of this notice shall be given to the principal and to each 
surety.



Sec.  17.112  Notice by surety of termination of bond.

    A surety on any bond required by this part may at any time, in 
writing, notify the principal and the appropriate TTB officer in whose 
office the bond is on file that the surety desires, after a date named, 
to be relieved of liability under the bond. Unless the notice is 
withdrawn, in writing, before the date named in it, the notice shall 
take effect on that date. The date shall not be less than 60 days after 
the date on which both the notice and proof of service on the principal 
have been received by the appropriate TTB officer. The surety shall 
deliver one copy of the notice to the principal and the original to the 
appropriate TTB officer. The surety shall also file with the appropriate 
TTB officer an acknowledgment or other proof of service on the 
principal.



Sec.  17.113  Extent of release of surety from liability under bond.

    The rights of the principal as supported by the bond shall cease as 
of the date when termination of the bond takes effect, and the surety 
shall be relieved from liability for drawback allowed on and after that 
date. Liability for drawback previously allowed shall continue until the 
claims for such drawback have been properly verified by the appropriate 
TTB officer according to law and this part.



Sec.  17.114  Release of collateral.

    The release of collateral security pledged and deposited to satisfy 
the bond requirement of this part is governed by the provisions of 31 
CFR part 225. When the appropriate TTB officer determines that there is 
no outstanding liability under the bond, and is satisfied that the 
interests of the Government will not be jeopardized, the security shall 
be released and returned to the principal.

(Sec. 1, Pub. L. 97-258, 96 Stat. 1046 (31 U.S.C. 9301, 9303))



                     Subpart F_Formulas and Samples



Sec.  17.121  Product formulas.

    (a) General. Except as provided in Sec. Sec.  17.132 and 17.182, 
manufacturers shall file quantitative formulas for all preparations for 
which they intend to file drawback claims. Such formulas shall state the 
quantity of each ingredient, and shall separately state the quantity of 
spirits to be recovered or to be consumed as an essential part of the 
manufacturing process.
    (b) Filing. Formulas shall be filed on TTB Form 5154.1, Formula and 
Process for Nonbeverage Products. Filing shall be accomplished no later 
than 6 months after the end of the quarter in which taxpaid distilled 
spirits were first used to manufacture the product for purposes of 
drawback. If a product's formula is disapproved, no drawback shall be 
allowed on spirits used to manufacture that product, unless it is later 
used as an intermediate product, as provided in Sec.  17.137.
    (c) Numbering. The formulas shall be serially numbered by the 
manufacturer, commencing with number 1 and continuing thereafter in 
numerical sequence. However, a new formula for use at several plants 
shall be given the highest number next in sequence at any of those 
plants. The numbers that were skipped at the other plants shall not be 
used subsequently.
    (d) Distribution and retention of approved formulas. One copy of 
each approved Form 5154.1 shall be returned to the manufacturer. The 
formulas returned to manufacturers shall be kept in serial order at the 
place of manufacture, as provided in Sec.  17.170, and shall be made 
available to appropriate TTB officers for examination in the 
investigation of drawback claims.

[T.D. ATF-179, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5471, Jan. 19, 2001]

[[Page 328]]



Sec.  17.122  Amended or revised formulas.

    Except as provided in this section, amended or revised formulas are 
considered to be new formulas and shall be numbered accordingly. Minor 
changes may be made to a current formula on TTB Form 5154.1 with 
retention of the original formula number, if approval is obtained from 
the appropriate TTB officer. In order to obtain approval to make a minor 
formula change, the person holding the Form 5154.1 shall submit a letter 
of application to the appropriate TTB officer, indicating the formula 
change and requesting that the proposed change be considered a minor 
change. Each such application shall clearly identify the original 
formula by number, date of approval, and name of product. The 
application shall indicate whether the product is, has been, or will be 
used in alcoholic beverages, and shall specify whether the proposed 
change is intended as a substitution or merely as an alternative for the 
original formula. No changes may be made to current formulas without 
specific TTB approval in each case.

[T.D. ATF-179, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5471, Jan. 19, 2001]



Sec.  17.123  Statement of process.

    Any person claiming drawback under the regulations in this part may 
be required, at any time, to file a statement of process, in addition to 
that required by TTB Form 5154.1, as well as any other data necessary 
for consideration of the claim for drawback. When pertinent to 
consideration of the claim, submission of copies of the commercial 
labels used on the finished products may also be required.



Sec.  17.124  Samples.

    Any person claiming drawback or submitting a formula for approval 
under the regulations in this part may be required, at any time, to 
submit a sample of each nonbeverage or intermediate product for 
analysis. If the product is manufactured with a mixture of oil or other 
ingredients, the composition of which is unknown to the claimant, a 1-
ounce sample of the mixture shall be submitted with the sample of 
finished product when so required.



Sec.  17.125  Adoption of formulas and processes.

    (a) Adoption of predecessor's formulas. If there is a change in the 
proprietorship of a nonbeverage plant and the successor desires to use 
the predecessor's formulas at the same location, the successor may, in 
lieu of submitting new formulas in its own name, adopt any or all of the 
formulas of the predecessor by filing a notice of adoption with the 
appropriate TTB officer. The notice shall be filed with the first claim 
relating to any of the adopted formulas. The notice shall list, by name 
and serial number, all formulas to be adopted, and shall state that the 
products will be manufactured in accordance with the adopted formulas 
and processes. The notice shall be accompanied by a certified copy of 
the articles of incorporation or other document(s) necessary to prove 
the transfer of ownership. The manufacturer shall retain a copy of the 
notice with the related formulas.
    (b) Adoption of manufacturer's own formulas from a different 
location. A manufacturer's own formulas may be adopted for use at 
another of the manufacturer's plants. Further, a wholly owned subsidiary 
may adopt the formulas of the parent company, and vice versa. A 
letterhead notice must be filed with the appropriate TTB officer and be 
accompanied by two photocopies of each formula to be adopted. The notice 
shall list the numbers of all formulas to be adopted and shall indicate 
the plant where each was originally approved and the plant(s) where each 
is to be adopted. Some evidence of the relationship between the plants 
involved in the adoption shall be attached to the notice. The notice 
shall be referenced in Part IV of the supporting data (TTB Form 5154.2) 
filed with the first claim relating to the adopted formula(s).

[T.D. ATF-179, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5471, Jan. 19, 2001]



Sec.  17.126  Formulas for intermediate products.

    (a) The manufacturer shall submit a formula on TTB Form 5154.1 for 
each

[[Page 329]]

self-manufactured ingredient made with taxpaid spirits and intended for 
the manufacturer's own use in nonbeverage products, unless the formula 
for any such ingredient is fully expressed as part of the approved 
formula for each nonbeverage product in which that ingredient is used, 
or unless the formula for the ingredient is contained in one of the 
pharmaceutical publications listed in Sec.  17.132.
    (b) Upon receipt of Form 5154.1 covering a self-manufactured 
ingredient made with taxpaid spirits, the formula shall be examined 
under Sec.  17.131. If the formula is approved for drawback, the 
ingredient shall be treated as a finished nonbeverage product for 
purposes of this part, rather than as an intermediate product, 
notwithstanding its use by the manufacturer. (For example, see Sec.  
17.152(d).) If the formula is disapproved for drawback, the ingredient 
may be treated as an intermediate product in accordance with this part. 
Requirements pertaining to intermediate products are found in Sec.  
17.185(b).
    (c) If there is a change in the composition of an intermediate 
product, the manufacturer shall submit an amended or revised formula, as 
provided in Sec.  17.122.



Sec.  17.127  Self-manufactured ingredients treated optionally as unfinished nonbeverage products.

    A self-manufactured ingredient made with taxpaid spirits, which 
otherwise would be treated as an intermediate product, may instead be 
treated as an unfinished nonbeverage product, if the ingredient's 
formula is fully expressed as a part of the approved formula for the 
nonbeverage product in which the ingredient will be used. A manufacturer 
desiring to change the treatment of an ingredient from ``intermediate 
product'' to ``unfinished nonbeverage product'' (or vice versa) may do 
so by resubmitting the applicable formula(s) on TTB Form 5154.1. 
Requirements pertaining to unfinished nonbeverage products are found in 
Sec.  17.185(c).

                          Approval of Formulas



Sec.  17.131  Formulas on TTB Form 5154.1.

    Upon receipt, formulas on TTB Form 5154.1 shall be examined and, if 
found to be medicines, medicinal preparations, food products, flavors, 
flavoring extracts, or perfume which are unfit for beverage purposes and 
which otherwise meet the requirements of law and this part, they shall 
be approved for drawback. If the formulas do not meet the requirements 
of the law and regulations for drawback products, they shall be 
disapproved.



Sec.  17.132  U.S.P., N.F., and H.P.U.S. preparations.

    (a) General. Except as otherwise provided by paragraph (b) of this 
section or by TTB ruling, formulas for compounds in which alcohol is a 
prescribed quantitative ingredient, which are stated in the current 
revisions or editions of the United States Pharmacopoeia (U.S.P.), the 
National Formulary (N.F.), or the Homeopathic Pharmacopoeia of the 
United States (H.P.U.S.), shall be considered as approved formulas and 
may be used as formulas for drawback products without the filing of TTB 
Form 5154.1.
    (b) Exceptions. Alcohol (including dehydrated alcohol and dehydrated 
alcohol injection), U.S.P.; alcohol and dextrose injection, U.S.P.; and 
tincture of ginger, H.P.U.S., have been found to be fit for beverage use 
and are disapproved for drawback. All attenuations of other H.P.U.S. 
products diluted beyond one part in 10,000 (``4x'') are also disapproved 
for drawback, unless the manufacturer receives approval for a formula 
submitted on Form 5154.1 in accordance with this subpart. The formula 
for such attenuations shall be submitted with a sample of the product 
and a statement explaining why it should be classified as unfit for 
beverage use.



Sec.  17.133  Food product formulas.

    Formulas for nonbeverage food products on TTB Form 5154.1 may be 
approved if they are unfit for beverage purposes. Approval does not 
authorize manufacture or sale contrary to State law. Examples of food 
products that

[[Page 330]]

have been found to be unfit for beverage purposes are stated below:
    (a) Sauces or syrups. Sauces, or syrups consisting of sugar 
solutions and distilled spirits, in which the alcohol content is not 
more than 12 percent by volume and the sugar content is not less than 60 
grams per 100 cubic centimeters.
    (b) Brandied fruits. Brandied fruits consisting of solidly packaged 
fruits, either whole or segmented, and distilled spirits products not 
exceeding the quantity and alcohol content necessary for flavoring and 
preserving. Generally, brandied fruits will be considered to have met 
these standards if the container is well filled, the alcohol in the 
liquid portion does not exceed 23 percent by volume, and the liquid 
portion does not exceed 45 percent of the volume of the container.
    (c) Candies. Candies with alcoholic fillings, if the fillings meet 
the standards prescribed for sauces and syrups by paragraph (a) of this 
section.
    (d) Other food products. Food products such as mincemeat, plum 
pudding, and fruit cake, where only sufficient distilled spirits are 
used for flavoring and preserving; and ice cream and ices where only 
sufficient spirits are used for flavoring purposes. Also food adjuncts, 
such as preservatives, emulsifying agents, and food colorings, that are 
unfit for beverage purposes and are manufactured and used, or sold for 
use, in food.



Sec.  17.134  Determination of unfitness for beverage purposes.

    The appropriate TTB officer has responsibility for determining 
whether products are fit or unfit for beverage purposes within the 
meaning of 26 U.S.C. 5131. This determination may be based either on the 
content and description of the ingredients as shown on TTB Form 5154.1, 
or on organoleptic examination. In such examination, samples of products 
may be diluted with water to an alcoholic concentration of 15% and 
tasted. Sale or use for beverage purposes is indicative of fitness for 
beverage use.



Sec.  17.135  Use of specially denatured alcohol (S.D.A.).

    (a) Use of S.D.A. in nonbeverage or intermediate products--(1) 
General. Except as provided in paragraph (b) of this section, the use of 
specially denatured alcohol (S.D.A.) and taxpaid spirits in the same 
product by a nonbeverage manufacturer is prohibited where drawback of 
tax is claimed.
    (2) Alternative formulations. No formula for a product on TTB Form 
5154.1 shall be approved for drawback under this subpart if the 
manufacturer also has on file an approved TTB Form 1479-A or Form 
5150.19, Formula for Article Made With Specially Denatured Alcohol or 
Rum, pertaining to the same product.
    (b) Use of S.D.A. in ingredients--(1) Purchased ingredients. 
Generally, purchased ingredients containing S.D.A. may be used in 
nonbeverage or intermediate products. However, such ingredients shall 
not be used in medicinal preparations or flavoring extracts intended for 
internal human use, where any of the S.D.A. remains in the finished 
product.
    (2) Self-manufactured ingredients. Self-manufactured ingredients may 
be made with S.D.A. and used in nonbeverage or intermediate products, 
provided--
    (i) No taxpaid spirits are used in manufacturing such ingredients; 
and
    (ii) All S.D.A. is recovered or dissipated from such ingredients 
prior to their use in nonbeverage or intermediate products. (Recovery of 
S.D.A. shall be in accordance with subpart K of part 20 of this chapter; 
recovered S.D.A., with or without its original denaturants, shall not be 
reused in nonbeverage or intermediate products.)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1372, as amended (26 U.S.C. 5273))



Sec.  17.136  Compliance with Food and Drug Administration requirements.

    A product is not a medicine, medicinal preparation, food product, 
flavor, flavoring extract, or perfume for nonbeverage drawback if its 
formula would violate a ban or restriction of the U.S. Food and Drug 
Administration (FDA) pertaining to such products. If FDA bans or 
restricts the use of any ingredient in such a way that further 
manufacture of a product in accordance with

[[Page 331]]

its formula would violate the ban or restriction, then the manufacturer 
shall change the formula and resubmit it on TTB Form 5154.1 . This 
section does not preclude approval for products manufactured solely for 
export or for uses other than internal human consumption (e.g. tobacco 
flavors or animal feed flavors) in accordance with laws and regulations 
administered by FDA. Under Sec.  17.123, manufacturers may be required 
to demonstrate compliance with FDA requirements applicable to this 
section.



Sec.  17.137  Formulas disapproved for drawback.

    A formula may be disapproved for drawback either because it does not 
prescribe appropriate ingredients in sufficient quantities to make the 
product unfit for beverage use, or because the product is neither a 
medicine, a medicinal preparation, a food product, a flavor, nor a 
flavoring extract. The formula for a disapproved product may be used as 
an intermediate product formula under Sec.  17.126. No drawback will be 
allowed on distilled spirits used in a disapproved product, unless that 
product is later used in the manufacture of an approved nonbeverage 
product. In the case of a product that is disapproved because it is fit 
for beverage use, any further use or disposition of such a product, 
other than as an intermediate product in accordance with this part, 
subjects the manufacturer to the qualification requirements of parts 1 
and 19 of this chapter.



                      Subpart G_Claims for Drawback



Sec.  17.141  Drawback.

    Upon the filing of a claim as provided in this subpart, drawback 
shall be allowed to any person who meets the requirements of this part. 
Drawback shall be paid at the rate specified by 26 U.S.C. 5134 on each 
proof gallon of distilled spirits on which the tax has been paid or 
determined and which have been used in the manufacture of nonbeverage 
products. The drawback rate is $1.00 less than the effective tax rate. 
Drawback shall be allowed only to the extent that the claimant can 
establish, by evidence satisfactory to the appropriate TTB, the actual 
quantity of taxpaid or tax-determined distilled spirits used in the 
manufacture of the product, and the effective tax rate applicable to 
those spirits. Special tax as a manufacturer of nonbeverage products 
shall be paid before drawback is allowed.



Sec.  17.142  Claims.

    (a) General. The manufacturer must file claim for drawback with the 
appropriate TTB officer who has the authority to approve or disapprove 
claims. A separate claim shall be filed for each place of business. Each 
claim shall pertain only to distilled spirits used in the manufacture or 
production of nonbeverage products during any one quarter of the tax 
year. Unless the manufacturer is eligible to file monthly claims (see 
Sec. Sec.  17.143 and 17.144), only one claim per quarter may be filed 
for each place of business. Claims shall be filed on TTB Form 2635 
(5620.8), Claim--Alcohol and Tobacco Taxes.
    (b) Manufacturers who are also proprietors of distilled spirits 
plants. If a manufacturer of nonbeverage products is owned and operated 
by the same business entity that owns and operates a distilled spirits 
plant, the manufacturer's claim for drawback may be filed for credit on 
Form 2635 (5620.8). After the claim is approved, the distilled spirits 
plant may use the claim as an adjustment decreasing the taxes due in 
Schedule B of TTB Form 5000.24, Excise Tax Return. Adjustments resulting 
from an approved drawback claim are not subject to interest. This 
procedure may be utilized only if the manufacturer of nonbeverage 
products and the distilled spirits plant have the same employer 
identification number.

[T.D. ATF-179, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5471, Jan. 19, 2001]



Sec.  17.143  Notice for monthly claims.

    If the manufacturer has notified the appropriate TTB officer, in 
writing, of an intention to file claims on a monthly basis instead of a 
quarterly basis, and has filed a bond in compliance with the provisions 
of this part, claims may be filed monthly instead of quarterly. The 
election to file monthly claims shall not preclude a manufacturer from 
filing a single claim covering an entire

[[Page 332]]

quarter, or a single claim covering just two months of a quarter, or two 
claims (one of them covering one month and the other covering two 
months). An election for the filing of monthly claims may be withdrawn 
by the manufacturer by filing a notice to that effect, in writing, with 
the appropriate TTB officer.



Sec.  17.144  Bond for monthly claims.

    Each person intending to file claims for drawback on a monthly basis 
shall file an executed bond on TTB Form 5154.3, conforming to the 
provisions of subpart E of this part. A monthly drawback claim shall not 
be allowed until bond coverage in a sufficient amount has been approved 
by the appropriate TTB officer. When the limit of liability under a bond 
given in less than the maximum amount has been reached, further drawback 
on monthly claims may be suspended until a strengthening or superseding 
bond in a sufficient amount is furnished.



Sec.  17.145  Date of filing claim.

    Quarterly claims for drawback shall be filed within six months after 
the quarter in which the distilled spirits covered by the claim were 
used in the manufacture of nonbeverage products. Monthly claims for 
drawback may be filed at any time after the end of the month in which 
the distilled spirits covered by the claim were used in the manufacture 
of nonbeverage products, but shall be filed not later than the close of 
the sixth month succeeding the quarter in which the spirits were used.



Sec.  17.146  Information to be shown by the claim.

    The claim shall set forth the following:
    (a) Whether the special tax has been paid.
    (b) That the distilled spirits on which drawback is claimed were 
fully taxpaid or tax-determined at the effective tax rate applicable to 
the distilled spirits.
    (c) That the distilled spirits on which the drawback is claimed were 
used in the manufacture of nonbeverage products.
    (d) Whether the nonbeverage products were manufactured in compliance 
with quantitative formulas approved under subpart F of this part. (If 
not, attach explanation.)
    (e) That the data submitted in support of the claim are correct.



Sec.  17.147  Supporting data.

    (a) Each claim for drawback shall be accompanied by supporting data 
presented according to the format shown on TTB Form 5154.2, Supporting 
Data for Nonbeverage Drawback Claims (or according to any other suitable 
format which provides the same information). Modifications of Form 
5154.2 may be used without prior authorization, if the modified format 
clearly shows all of the required information that is pertinent to the 
manufacturing operation. Under Sec.  17.123, the appropriate TTB officer 
may require additional supporting data when needed to determine the 
correctness of drawback claims.
    (b) Separate data shall be shown for eligible distilled spirits 
taxpaid at different effective tax rates. This requirement applies to 
all eligible spirits, including eligible recovered alcohol and eligible 
spirits contained in intermediate products.
    (c) Separate data shall be shown for imported rum, spirits from 
Puerto Rico containing at least 92% rum, and spirits from the U.S. 
Virgin Islands containing at least 92% rum. The total number of proof 
gallons of each such category used subject to drawback during the claim 
period shall also be shown, with separate totals for each effective tax 
rate. These amounts shall include eligible spirits and rum from 
intermediate products or recovered alcohol.
    (d) Any gain in eligible distilled spirits reported in the 
supporting data shall be reflected by an equivalent deduction from the 
amount of drawback claimed. Gains shall not be offset by known losses.



Sec.  17.148  Allowance of claims.

    (a) General. Except in the case of fraudulent noncompliance, no 
claim for drawback shall be denied for a failure to comply with either 
26 U.S.C. 5131-5134 or the requirements of this part, if the claimant 
establishes that spirits on

[[Page 333]]

which the tax has been paid or determined were in fact used in the 
manufacture of medicines, medicinal preparations, food products, 
flavors, flavoring extracts, or perfume, which were unfit for beverage 
purposes.
    (b) Penalty. Noncompliance with the requirements of 26 U.S.C. 5131-
5134 or of this part subjects the claimant to a civil penalty of $1,000 
for each separate product, reflected in a claim for drawback, to which 
the noncompliance relates, or the amount claimed for that product, 
whichever is less, unless the claimant establishes that the 
noncompliance was due to reasonable cause. Late filing of a claim 
subjects the claimant to a civil penalty of $1,000 or the amount of the 
claim, whichever is less, unless the claimant establishes that the 
lateness was due to reasonable cause.
    (c) Reasonable cause. Reasonable cause exists where a claimant 
establishes it exercised ordinary business care and prudence, and still 
was unable to comply with the statutory and regulatory requirements. 
Ignorance of law or regulations, in and of itself, is not reasonable 
cause. Each case is individually evaluated.

(Sec. 452, Pub. L. 98-369, 98 Stat. 819 (26 U.S.C. 5134(c))

                       Spirits Subject to Drawback



Sec.  17.151  Use of distilled spirits.

    Distilled spirits are considered to have been used in the 
manufacture of a product under this part if the spirits are consumed in 
the manufacture, are incorporated into the product, or are determined by 
TTB to have been otherwise utilized as an essential part of the 
manufacturing process. However, spirits lost by causes such as spillage, 
leakage, breakage or theft, and spirits used for purposes such as 
rinsing or cleaning a system, are not considered to have been used in 
the manufacture of a product.



Sec.  17.152  Time of use of spirits.

    (a) General. Distilled spirits shall be considered used in the 
manufacture of a product as soon as that product contains all the 
ingredients called for by its formula.
    (b) Spirits used in an ion exchange column. Distilled spirits used 
in recharging an ion exchange column, the operation of which is 
essential to the production of a product, shall be considered to be used 
when the spirits are entered into the manufacturing system in accordance 
with the product's formula.
    (c) Products requiring additional processing or treatment. Further 
manipulation of a product, such as aging or filtering, subsequent to the 
mixing together of all of its ingredients, shall not postpone the time 
when spirits are considered used, as determined under paragraph (a) of 
this section. This is true even if at the time of use there has not yet 
been a final determination of alcoholic content by assay. If, however, 
it is later found necessary to add more distilled spirits to standardize 
the product, such added spirits shall be considered as used in the 
period during which they were added.
    (d) Nonbeverage products used to manufacture other products. 
Nonbeverage products may be used to manufacture other nonbeverage (or 
intermediate) products. However, such subsequent usage of a nonbeverage 
product shall not affect the time when the distilled spirits contained 
therein are considered used. When distilled spirits are used in the 
manufacture of a nonbeverage product, the time of use shall be the point 
at which that product first contains all of its prescribed ingredients, 
and such use shall not be determined by the time of any subsequent usage 
of that product in another product.



Sec.  17.153  Recovered spirits.

    (a) Recovery from intermediate products. Eligible spirits recovered 
in the manufacture of intermediate products are not subject to drawback 
until such recovered spirits are used in the manufacture of a 
nonbeverage product. (However, see Sec.  17.127 with respect to optional 
treatment of ingredients as unfinished nonbeverage products, rather than 
as intermediate products.) Spirits recovered in the manufacture of 
intermediate products shall be reused only in the manufacture of 
intermediate or nonbeverage products.

[[Page 334]]

    (b) Recovery from nonbeverage products. Distilled spirits recovered 
in the manufacture of a nonbeverage product are considered as having 
been used in the manufacture of that product. If the spirits were 
eligible when so used, they became subject to drawback at that time. 
Upon recovery, such spirits may be reused in the manufacture of 
nonbeverage products, but shall not be reused for any other purpose. 
When reused, such recovered spirits are not again eligible for drawback 
and shall not be used in the manufacture of intermediate products.
    (c) Cross references. For additional provisions respecting the 
recovery of distilled spirits and related recordkeeping requirements, 
see Sec. Sec.  17.168 and 17.183.



Sec.  17.154  Spirits contained in intermediate products.

    Spirits contained in an intermediate product are not subject to 
drawback until that intermediate product is used in the manufacture of a 
nonbeverage product.



Sec.  17.155  Spirits consumed in manufacturing intermediate products.

    Spirits consumed in the manufacture of an intermediate product--
which are not contained in the intermediate product at the time of its 
use in nonbeverage products--are not subject to drawback. Such spirits 
are not considered to have been used in the manufacture of nonbeverage 
products. However, see Sec.  17.127 with respect to optional treatment 
of ingredients as unfinished nonbeverage products, rather than as 
intermediate products.



                            Subpart H_Records



Sec.  17.161  General.

    Each person claiming drawback on taxpaid distilled spirits used in 
the manufacture of nonbeverage products shall maintain records showing 
the information required in this subpart. No particular form is 
prescribed for these records, but the data required to be shown shall be 
clearly recorded and organized to enable appropriate TTB officers to 
trace each operation or transaction, monitor compliance with law and 
regulations, and verify the accuracy of each claim. Ordinary business 
records, including invoices and cost accounting records, are acceptable 
if they show the required information or are annotated to show any such 
information that is lacking. The records shall be kept complete and 
current at all times, and shall be retained by the manufacturer at the 
place covered by the special tax stamp for the period prescribed in 
Sec.  17.170.



Sec.  17.162  Receipt of distilled spirits.

    (a) Distilled spirits received in tank cars, tank trucks, barrels, 
or drums. For distilled spirits received in tank cars, tank trucks, 
barrels, or drums, the manufacturer shall record, with respect to each 
shipment received--
    (1) The date of receipt;
    (2) The name and address of the person from whom received;
    (3) The serial number or other identification mark (if any) of each 
tank car, tank truck, barrel, or drum;
    (4) The name of the producer or warehouseman who paid or determined 
the tax;
    (5) The effective tax rate (if other than the rate prescribed by 26 
U.S.C. 5001); and
    (6) The kind, quantity, and proof (or alcohol percentage by volume) 
of the spirits.
    (b) Distilled spirits received in bottles. For distilled spirits 
received in bottles, the manufacturer shall record--
    (1) The date of receipt;
    (2) The name and address of the seller;
    (3) The serial number of each case, if the bottles are received in 
cases;
    (4) The name of the bottler;
    (5) The effective tax rate (if other than the rate prescribed by 26 
U.S.C. 5001); and
    (6) The kind, quantity, and proof (or alcohol percentage by volume) 
of the spirits.
    (c) Distilled spirits received by pipeline. For distilled spirits 
received by pipeline, the manufacturer shall record--
    (1) The date of receipt;
    (2) The name of the producer or warehouseman who paid or determined 
the tax;
    (3) The effective tax rate (if other than the rate prescribed by 26 
U.S.C. 5001); and

[[Page 335]]

    (4) The kind, quantity, and proof (or alcohol percentage by volume) 
of the spirits.
    (d) Determination of quantity. At the time of receipt, each 
manufacturer shall determine (preferably by weight) and record the exact 
number of proof gallons of distilled spirits received. The amount 
received in bottles may be determined by the required statements on the 
labels. The amount received in sealed drums with no evidence of leakage 
may be determined from the record of shipment, which is required by 
Sec.  19.780 of this chapter to accompany spirits received from a 
distilled spirits plant. If spirits are received in a tank car or tank 
truck, and the result of the manufacturer's gauge of the spirits is 
within 0.2 percent of the number of proof gallons reported on the record 
of shipment required by Sec.  19.780, then the number of proof gallons 
reported on that record may be recorded as the quantity received. 
Nevertheless, the receiving gauge shall be noted on the record of 
receipt. If, for any shipment, the amount recorded in the manufacturer's 
records as the quantity received is greater than the amount shown as 
taxpaid on the record required by Sec.  19.780, a deduction equivalent 
to the excess shall be made from the amount of drawback claimed in the 
manufacturer's claim covering that period. If no claim is filed for that 
period, then the deduction shall be made in the manufacturer's next 
claim. Losses in transit that exceed the 0.2 percent limitation provided 
in this paragraph shall be determined and noted on the record of 
receipt. Such losses shall not be recorded as distilled spirits 
received.
    (e) Receipt of imported rum, or spirits from Puerto Rico or the 
Virgin Islands. If spirits are received which contain at least 92% rum, 
and which originate from Puerto Rico or the U.S. Virgin Islands, the 
record of receipt shall indicate the place of origin. If rum is 
received, the record shall indicate whether it is from Puerto Rico, from 
the U.S. Virgin Islands, imported from other countries, or domestic.
    (f) Shipments from distilled spirits plants. If spirits are received 
directly from the distilled spirits plant that paid or determined the 
tax, the manufacturer shall retain the record of shipment required by 
Sec.  19.780 of this chapter. To the extent that the information on that 
record duplicates the requirements of this section, retention of that 
record shall satisfy those requirements. If there are differences 
between the information on the record of shipment and the information 
required to be recorded by this section, the requirements of this 
section may be met by appropriate annotations on the record of shipment.



Sec.  17.163  Evidence of taxpayment of distilled spirits.

    (a) Shipments from distilled spirits plants. For each shipment of 
taxpaid spirits from the bonded premises of a distilled spirits plant, 
the manufacturer shall obtain the record of shipment prepared by the 
supplier under Sec.  19.780 of this chapter. This record shall be 
retained with the commercial invoice (if the latter is a separate 
document) as evidence of taxpayment of the spirits. The record shall 
show the effective tax rate(s) (if other than the rate prescribed by 26 
U.S.C. 5001) applicable to the shipment.
    (b) Purchases from wholesale and retail liquor dealers. 
Manufacturers shall obtain commercial invoices or other documentation 
pertaining to purchases of distilled spirits from wholesale and retail 
liquor dealers (including such dealership operations when conducted in 
conjunction with a distilled spirits plant). For spirits other than 
alcohol, grain spirits, neutral spirits, distilled gin, or straight 
whisky (as defined in the standards of identity prescribed by Sec.  5.22 
of this chapter), the manufacturer of nonbeverage products shall obtain 
evidence, from the producer or bottler of the spirits, as to the 
effective tax rate paid thereon.
    (c) Imported spirits. For imported spirits that were taxpaid through 
Customs, evidence of such taxpayment (such as Customs Forms 7501 and 
7505, receipted to indicate payment of tax, and the certificate of 
effective tax rate computation, if applicable) shall be secured from the 
importer and retained by the manufacturer.
    (d) Evidence of effective tax rate. If the evidence of effective tax 
rate, required by this section for distilled spirits

[[Page 336]]

products that may contain wine or flavors, is not obtained, drawback 
shall only be allowed based on the lowest effective tax rate possible 
for the kind of distilled spirits product used.



Sec.  17.164  Production record.

    (a) General. Each manufacturer shall keep a production record for 
each batch of intermediate product and for each batch of nonbeverage 
product. The production record shall be an original record made at the 
time of production by a person (or persons) having actual knowledge 
thereof. If any product is produced by a continuous process rather than 
by batches, the production record shall pertain to the total quantity of 
that product produced during each claim period.
    (b) Information to be shown. The record shall show the name and 
formula number of the product, the actual quantities of all ingredients 
used in the manufacture of the batch (including the proof or alcohol 
percentage by volume of all spirits), the date when eligible spirits 
were considered used (see Sec.  17.152), the effective tax rate 
applicable to those spirits (if other than the rate prescribed by 26 
U.S.C. 5001), and the quantity of product produced. The alcohol content 
of the product shall be shown if a test of alcohol content was made (see 
paragraph (e) of this section). Usage of eligible and ineligible spirits 
shall be shown separately. If spirits from Puerto Rico or the U.S. 
Virgin Islands, containing at least 92% rum, were used, the record shall 
indicate their place of origin. If rum was used, the record shall 
indicate whether it was from Puerto Rico, from the U.S. Virgin Islands, 
imported from other countries, or domestic. If spirits were recovered, 
the production record shall so indicate, and the record required by 
Sec.  17.168 shall be kept. If drawback is claimed on spirits consumed 
as an essential part of the manufacture of a nonbeverage product, which 
were not contained in that product at its completion, then the 
production record shall show the quantity of spirits so consumed in the 
manufacture of each batch.
    (c) Specificity of information. The production record shall refer to 
ingredients by the same names as are used for them in the product's 
formula. This includes formulas submitted to TTB and formulas contained 
in the publications listed in Sec.  17.132. Other names for the 
ingredients may be added in the production record, if necessary for the 
manufacturer's operations. Usage of ingredients (including spirits) may 
be shown in units of weight or volume.
    (d) Determining quantity of distilled spirits used. Each 
manufacturer shall accurately determine, by weight or volume, and record 
in the production records the quantity of all distilled spirits used. 
When the quantity used is determined by volume, adjustments shall be 
made if the temperature of the spirits is above or below 60 degrees 
Fahrenheit. A table for correction of volume of spirituous liquors to 60 
degrees Fahrenheit, Table 7 of the ``Gauging Manual,'' is available. See 
subpart E of part 30 of this chapter and Sec.  30.67. Losses after 
receipt due to leakage, spillage, evaporation, or other causes not 
essential to the manufacturing process shall be accurately recorded in 
the manufacturer's permanent records at the time such losses are 
determined.
    (e) Tests of alcohol content. At representative intervals, the 
manufacturer shall verify the alcohol content of nonbeverage products. 
The results of such tests shall be recorded.



Sec.  17.165  Receipt of raw ingredients.

    For raw ingredients destined to be used in nonbeverage or 
intermediate products, the manufacturer shall record, for each shipment 
received--
    (a) The date of receipt;
    (b) The quantity received; and
    (c) The identity of the supplier.



Sec.  17.166  Disposition of nonbeverage products.

    (a) Shipments. For each shipment of nonbeverage products, the 
manufacturer shall record--
    (1) The formula number of the product;
    (2) The date of shipment;
    (3) The quantity shipped; and
    (4) The identity of the consignee.
    (b) Other disposition. For other dispositions of nonbeverage 
products, the manufacturer shall record--
    (1) The type of disposition;

[[Page 337]]

    (2) The date of disposition; and
    (3) The quantity of each product so disposed of.
    (c) Exception. The manufacturer need not keep the records required 
by paragraphs (a) and (b) of this section for any nonbeverage product 
which either contains less than 3 percent of distilled spirits by 
volume, or is sold by the producer directly to the consumer in retail 
quantities. However, when needed for protection of the revenue, the 
appropriate TTB officer may at any time require the keeping of these 
records upon giving at least five days' notice to the manufacturer.



Sec.  17.167  Inventories.

    (a) Distilled spirits. The ``on hand'' figures reported in Part II 
of TTB Form 5154.2 shall be verified by physical inventories taken as of 
the end of each quarter in which nonbeverage products were manufactured 
for purposes of drawback. Spirits taxpaid at different effective tax 
rates shall be inventoried separately. The inventory record shall show 
the date inventory was taken, the person(s) by whom it was taken, 
subtotals for each product inventoried, and any gains or losses 
disclosed; and shall be retained with the manufacturer's records. The 
manufacturer shall explain in Part IV of the supporting data (Form 
5154.2) any discrepancy between the amounts on hand as disclosed by 
physical inventory and the amounts indicated by the manufacturer's 
records. Any gain in eligible spirits disclosed by inventory requires an 
equivalent deduction from the claim with which the inventory is 
reported. Gains shall not be offset by known losses. If no claim is 
filed for a quarter (nor for any monthly period therein), then no 
physical inventory is required for that quarter.
    (b) Raw ingredients and nonbeverage products. When necessary for 
ensuring compliance with regulations and protection of the revenue, the 
appropriate TTB officer may require a manufacturer to take physical 
inventories of finished nonbeverage products, and/or raw ingredients 
intended for use in the manufacture of nonbeverage or intermediate 
products. The results of such inventories shall be recorded in the 
manufacturer's records. Any discrepancy between the amounts on hand as 
disclosed by physical inventory and such amounts as indicated by the 
manufacturer's records shall also be recorded with an explanation of its 
cause.



Sec.  17.168  Recovered spirits.

    (a) Each manufacturer intending to recover distilled spirits under 
the provisions of this part shall first notify the appropriate TTB 
officer. Any apparatus used to separate alcohol is subject to the 
registration requirements of 26 U.S.C. 5179 and subpart C of part 29 of 
this chapter. Recovery operations shall only be conducted on the 
premises covered by the manufacturer's special tax stamp.
    (b) The manufacturer shall keep a record of the distilled spirits 
recovered and the subsequent use to which such spirits are put. The 
record shall show--
    (1) The date of recovery;
    (2) The commodity or process from which the spirits were recovered;
    (3) The amount in proof gallons, or by weight and proof (or alcohol 
percentage by volume) of distilled spirits recovered;
    (4) The amount in proof gallons, or by weight and proof (or alcohol 
percentage by volume) of recovered distilled spirits reused;
    (5) The commodity in which the recovered distilled spirits were 
reused; and
    (6) The date of reuse.
    (c) Whenever recovered spirits are destroyed (see Sec.  17.183), the 
record shall further show--
    (1) The reason for the destruction;
    (2) The date, time, location, and manner of destruction;
    (3) The number of proof gallons destroyed; and
    (4) The name of the individual who accomplished or supervised the 
destruction.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-462, 
66 FR 42736, Aug. 15, 2001]



Sec.  17.169  Transfer of intermediate products.

    When intermediate products are transferred as permitted by Sec.  
17.185(b), supporting records of such transfers

[[Page 338]]

shall be kept at the shipping and receiving plants, showing the date and 
quantity of each product transferred.



Sec.  17.170  Retention of records.

    Each manufacturer shall retain for a period of not less than 3 years 
all records required by this part, a copy of all claims and supporting 
data filed in support thereof, all commercial invoices or other 
documents evidencing taxpayment or tax-determination of domestic 
spirits, all documents evidencing taxpayment of imported spirits, and 
all bills of lading received which pertain to shipments of spirits. In 
addition, a copy of each formula submitted on TTB Form 5154.1 shall be 
retained at each factory where the formula is used, for not less than 3 
years from the date of filing of the last claim for drawback under the 
formula. A copy of an approval to use an alternate method or procedure 
shall be retained as long as the manufacturer employs the method or 
procedure, and for 3 years thereafter. Further, the appropriate TTB 
officer may require these records, forms, and documents to be retained 
for an additional period of not more than 3 years in any case where he 
or she deems such retention to be necessary or advisable for protection 
of the revenue.



Sec.  17.171  Inspection of records.

    All of the records, forms, and documents required to be retained by 
Sec.  17.170 shall be kept at the place covered by the special tax stamp 
and shall be readily available during the manufacturer's regular 
business hours for examination and copying by appropriate TTB officers. 
At the same time, any other books, papers, records or memoranda in the 
possession of the manufacturer, which have a bearing upon the matters 
required to be alleged in a claim for drawback, shall be available for 
inspection by appropriate TTB officers.

(Sec. 5133, 68A Stat. 623 (26 U.S.C. 5133); sec. 201, Pub. L. 85-859, 72 
Stat. 1348 (26 U.S.C. 5146)).



                   Subpart I_Miscellaneous Provisions



Sec.  17.181  Exportation of medicinal preparations and flavoring extracts.

    Medicinal preparations and flavoring extracts, approved for drawback 
under the provisions of this part, may be exported subject to 19 U.S.C. 
1313(d), which authorizes export drawback equal to the entire amount of 
internal revenue tax found to have been paid on the domestic alcohol 
used in the manufacture of such products. (Note: Export drawback is not 
allowed for imported alcohol under this provision of customs law.) 
Claims for such export drawback shall be filed in accordance with the 
applicable regulations of the U.S. Customs Service. Such claims may 
cover either the full rate of tax which has been paid on the alcohol, if 
no nonbeverage drawback has been claimed thereon, or else the remainder 
of the tax if nonbeverage drawback under 26 U.S.C. 5134 has been or will 
be claimed.



Sec.  17.182  Drawback claims by druggists.

    Drawback of tax under 26 U.S.C. 5134 is allowable on taxpaid 
distilled spirits used in compounding prescriptions by druggists who 
have paid the special tax prescribed by 26 U.S.C. 5131. The 
prescriptions so compounded shall be shown in the supporting data by 
listing the first and last serial numbers thereof. The amount of taxpaid 
spirits used in each prescription need not be shown, but such 
prescriptions shall be made available for examination by appropriate TTB 
officers. If refills have been made of prescriptions received in a 
previous claim period, their serial numbers shall be recorded 
separately. Druggists claiming drawback as authorized by this section 
are subject to all the applicable requirements of this part, except 
those requiring the filing of quantitative formulas.



Sec.  17.183  Disposition of recovered alcohol and material from which alcohol can be recovered.

    (a) Recovered alcohol. Manufacturers of nonbeverage products shall 
not sell or transfer recovered spirits to any other premises without TTB 
authorization under Sec.  17.3. If recovered spirits are stored pending 
reuse, storage facilities

[[Page 339]]

shall be adequate to protect the revenue. If recovered spirits are 
destroyed, the record required by Sec.  17.168(c) must be kept. Spirits 
recovered from intermediate products may be destroyed without notice to 
TTB. Spirits recovered from nonbeverage products may be destroyed 
pursuant to a notice filed with the appropriate TTB officer at least 12 
days prior to the date of destruction. The notice shall state the reason 
for the destruction, the intended date of destruction, and the 
approximate quantity involved. The appropriate TTB officer may impose 
specific conditions, including requiring that the destruction be 
witnessed by an appropriate TTB. Unless the manufacturer is otherwise 
advised by the appropriate TTB officer before the date specified in the 
notice, the destruction may proceed as planned.
    (b) By-product material (general). By-product material from which 
alcohol can be recovered shall not be sold or transferred unless the 
alcohol has been removed or an approved substance has been added to 
prevent recovery of residual alcohol. Material from which alcohol can be 
recovered may also be destroyed on the manufacturer's premises by a 
suitable method. Except as provided in paragraph (c) of this section, 
prior written approval shall be obtained from the appropriate TTB 
officer as to the adequacy, under this section, of any substance 
proposed to be added to prevent recovery of alcohol, or of any proposed 
method of destruction.
    (c) Spent vanilla beans. Specific approval from the appropriate TTB 
officer is not required when spent vanilla beans containing residual 
alcohol are destroyed on the manufacturer's premises by burning, or when 
they are removed from those premises after treatment with sufficient 
kerosene, mineral spirits, rubber hydrocarbon solvent, or gasoline to 
prevent recovery of residual alcohol.



Sec.  17.184  Distilled spirits container marks.

    All marks required by Part 19 of this chapter shall remain on 
containers of taxpaid distilled spirits until the contents are emptied. 
Whenever such a container is emptied, such marks shall be completely 
obliterated.

(Sec. 454, Pub. L. 98-369, 98 Stat. 820 (26 U.S.C. 5206(d)))



Sec.  17.185  Requirements for intermediate products and unfinished nonbeverage products.

    (a) General. Self-manufactured ingredients made with taxpaid spirits 
may be accounted for either as intermediate products or as unfinished 
nonbeverage products. The manufacturer may choose either method of 
accounting for such self-manufactured ingredients (see Sec.  17.127). 
However, the method selected determines the requirements that will apply 
to those ingredients, as prescribed in paragraphs (b) and (c) of this 
section.
    (b) Intermediate products. Intermediate products shall be used 
exclusively in the manufacture of nonbeverage products. Intermediate 
products may be accumulated and stored indefinitely and may be used in 
any nonbeverage product whose formula calls for such use. Intermediate 
products shall be manufactured by the same entity that manufactures the 
finished nonbeverage products. Intermediate products shall not be sold 
or transferred between separate and distinct entities. However, they may 
be transferred to another branch or plant of the same manufacturer, for 
use there in the manufacture of approved nonbeverage products. (See 
Sec.  17.169 for recordkeeping requirement.) For the purposes of this 
section, the phrase ``separate and distinct entities'' includes parent 
and subsidiary corporations, regardless of any corporate (or other) 
relationship, and even if the stock of both the manufacturing firm and 
the receiving firm is owned by the same persons.
    (c) Unfinished nonbeverage products. An unfinished nonbeverage 
product shall only be used in the particular nonbeverage product for 
which it was manufactured, and shall be entirely so used within the time 
limit stated in the approved TTB Form 5154.1. Spirits dissipated or 
recovered in the manufacture of unfinished nonbeverage products shall be 
regarded as having been dissipated or recovered in the manufacture of 
nonbeverage products. Spirits contained in such unfinished products

[[Page 340]]

shall be accounted for in the supporting data under Sec.  17.147 and 
inventoried under Sec.  17.167 as ``in process'' in nonbeverage 
products. Production of unfinished nonbeverage products shall be 
recorded as an integral part of the production records for the related 
nonbeverage products. Unfinished nonbeverage products shall not be 
transferred to other premises.



Sec.  17.186  Transfer of distilled spirits to other containers.

    A manufacturer may transfer taxpaid distilled spirits from the 
original package to other containers at any time for the purpose of 
facilitating the manufacture of products unfit for beverage use. 
Containers into which distilled spirits have been transferred under this 
section shall bear a label identifying their contents as taxpaid 
distilled spirits, and shall be marked with the serial number of the 
original package from which the spirits were withdrawn.



Sec.  17.187  Discontinuance of business.

    The manufacturer shall notify TTB when business is to be 
discontinued. Upon discontinuance of business, a manufacturer's entire 
stock of taxpaid distilled spirits on hand may be sold in a single sale 
without the necessity of qualifying as a wholesaler under part 1 of this 
chapter or paying special tax as a liquor dealer under part 31 of this 
chapter. The spirits likewise may be returned to the person from whom 
purchased, or they may be destroyed or given away.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-25, 70 
FR 19882, Apr. 15, 2005]



PART 18_PRODUCTION OF VOLATILE FRUIT-FLAVOR CONCENTRATE--Table of Contents




                             Subpart A_Scope

Sec.
18.1 Scope.
18.2 Applicability of law.
18.3 Unlawful operations.

                          Subpart B_Definitions

18.11 Meaning of terms.

          Subpart C_Administrative and Miscellaneous Provisions

18.12 Delegations of the Administrator.
18.13 Alternate methods or procedures.
18.14 Emergency variations from requirements.
18.15 Right of entry and examination.
18.16 Forms prescribed.

                          Document Requirements

18.17 Retention of documents.
18.18 Execution under penalties of perjury.
18.19 Security.

                         Subpart D_Qualification

18.21 General.
18.22 Restrictions as to location and use.
18.23 Registry of stills.

                               Application

18.24 Data for application.
18.25 Organizational documents.
18.26 Powers of attorney.
18.27 Additional requirements.

                  Changes After Original Establishment

18.31 General requirements.
18.32 Change in name.
18.33 Change in location.
18.34 Continuing partnerships.
18.35 Change in proprietorship.
18.36 Change in officers and directors.
18.37 Change in stockholders.
18.38 Permanent discontinuance.
18.39 Qualification to alternate a volatile fruit-flavor concentrate 
          plant and a distilled spirits plant.
18.40 Qualification to alternate volatile fruit-flavor concentrate plant 
          and bonded wine cellar.
18.41 Separation of premises.
18.42 Record of alternation.
18.43 Conditions of alternation.

                          Subpart E_Operations

18.51 Processing material.
18.52 Production of high-proof concentrate.
18.53 Use of concentrate.
18.54 Transfer of concentrate.
18.55 Label.
18.56 Receipt of concentrate.

                      Subpart F_Records and Reports

18.61 Records and reports.
18.62 Record of transfer.
18.63 Record of transfer to a bonded wine cellar.
18.64 Photographic copies of records.
18.65 Annual report.

    Authority: 26 U.S.C. 5001, 5171-5173, 5178, 5179, 5203, 5351, 5354, 
5356, 5511, 5552, 6065, 7805.

[[Page 341]]


    Source: T.D. ATF-104, 47 FR 23921, June 2, 1982, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 18 appear by T.D. ATF-
436, 66 FR 5471, 5472, Jan. 19, 2001.



                             Subpart A_Scope



Sec.  18.1  Scope.

    The regulations in this part relate to the qualification and 
operation (including activities incident thereto) of plants for the 
manufacture of volatile fruit-flavor concentrate (essence). The 
regulations in this part apply to the several States of the United 
States and the District of Columbia.



Sec.  18.2  Applicability of law.

    Except as specified in 26 U.S.C. 5511, the provisions of 26 U.S.C. 
Chapter 51 are not applicable to the manufacture, by any process which 
includes evaporations from the mash or juice of any fruit, of any 
volatile fruit-flavor concentrate if:
    (a) The concentrate, and the mash or juice from which it is 
produced, contains no more alcohol than is reasonably unavoidable in the 
manufacture of the concentrate; and
    (b) The concentrate is rendered unfit for use as a beverage before 
removal from the place of manufacture, or (in the case of concentrate 
which does not exceed 24 percent alcohol by volume) the concentrate is 
transferred to a bonded wine cellar for use in the production of natural 
wine; and
    (c) The manufacturer of concentrate complies with all requirements 
for the protection of the revenue with respect to the production, 
removal, sale, transportation, and use of concentrate, and of the mash 
or juice from which it is produced, as may be prescribed by this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))



Sec.  18.3  Unlawful operations.

    (a) A manufacturer of concentrate who violates any of the conditions 
stated in Sec.  18.2 is subject to the taxes and penalties otherwise 
applicable under 26 U.S.C. Chapter 51 in respect to such operations.
    (b) Any person who sells, transports, or uses any concentrate or the 
mash or juice from which it is produced in violation of law or 
regulations is subject to all the provisions of 26 U.S.C. Chapter 51 
pertaining to distilled spirits and wines, including those requiring the 
payment of the tax thereon.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))



                          Subpart B_Definitions



Sec.  18.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.18, Delegation of the Administrator's Authorities in 27 CFR Part 
18, Production of Volatile Fruit-Flavor Concentrate.
    Bonded wine cellar. Premises established under 27 CFR part 24 for 
the production, blending, cellar treatment, storage, bottling, or 
packaging of untaxpaid wine, and includes premises designated as 
``bonded winery.''
    Concentrate. Any volatile fruit-flavor concentrate (essence) 
produced by any process which includes evaporations from any fruit mash 
or juice.
    Concentrate plant. An establishment qualified under this part for 
the production of concentrate.
    Distilled spirits plant. An establishment qualified under 27 CFR 
part 19, excluding alcohol fuel plants, for producing, warehousing, or 
processing distilled spirits (including denatured distilled spirits).

[[Page 342]]

    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the application, report, form, or other document or, where no 
form of declaration is prescribed, with the declaration: ``I declare 
under the penalties of perjury that this ---------- (insert type of 
document, such as application or report), including the documents 
submitted in support thereof, has been examined by me and, to the best 
of my knowledge and belief, is true, correct and complete.''
    Fold. The ratio of the volume of the fruit mash or juice to the 
volume of the concentrate produced from the fruit mash or juice. For 
example, one gallon of concentrate of 100-fold would be the product from 
100 gallons of fruit mash or juice.
    Fruit. All products commonly known and classified as fruit, berries, 
or grapes.
    Fruit mash. Any unfermented mixture of juice, pulp, skins, and seeds 
prepared from fruit, berries, or grapes.
    High-proof concentrate. For the purposes of this part, ``high-proof 
concentrate'' means a concentrate (essence), as defined in this section, 
that has an alcohol content of more than 24 percent by volume and is 
unfit for beverage use (nonpotable) because of its natural constituents, 
i.e. without the addition of other substances.
    Juice. The unfermented juice (concentrated or unconcentrated) of 
fruit, berries, or grapes, exclusive of pulp, skins, or seeds.
    Person. An individual, trust, estate, partnership, association, 
company, or corporation.
    Processing material. The fruit mash or juice from which concentrate 
is produced.
    Proprietor. A person qualified under this part to operate a 
concentrate plant.
    Registry number. The number assigned to a concentrate plant or a 
bonded wine cellar for an approved application as required by Parts 18 
and 24, respectively.
    U.S.C. The United States Code.

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-299, 55 
FR 24989, June 19, 1990; T.D. ATF-436, 66 FR 5471, Jan. 19, 2001; T.D. 
ATF-455, 66 FR 29482, May 31, 2001; T.D. TTB-44, 71 FR 16927, Apr. 4, 
2006]



          Subpart C_Administrative and Miscellaneous Provisions



Sec.  18.12  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.18, Delegation of the Administrator's 
Authorities in 27 CFR Part 18, Production of a Volatile Fruit-Flavor 
Concentrate. You may obtain a copy of this order by accessing the TTB 
Web site (http://www.ttb.gov) or by mailing a request to the Alcohol and 
Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, 
Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16927, Apr. 4, 2006]



Sec.  18.13  Alternate methods or procedures.

    (a) General. The proprietor, on specific approval by the appropriate 
TTB officer, may use an alternate method or procedure in lieu of a 
method or procedure specifically prescribed in this part. The 
appropriate TTB officer may approve an alternate method or procedure, 
subject to stated conditions, when he finds that:
    (1) Good cause has been shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by the specifically prescribed 
method or procedure, and affords equivalent security to the revenue; and
    (3) The alternate method or procedure will not be contrary to any 
provision of law, and will not result in an increase in cost to the 
Government or hinder the effective administration of this part.
    (b) Application. A proprietor who desires to employ an alternate 
method or procedure shall submit a written application to the 
appropriate TTB officer.

[[Page 343]]

The application will specifically describe the proposed alternate method 
or procedure and set forth the reasons therefor. Alternate methods or 
procedures may not be employed until the application has been approved 
by the appropriate TTB officer. Authorization for any alternate method 
or procedure may be withdrawn whenever in the judgment of the 
appropriate TTB officer the revenue is jeopardized or the effective 
administration of this part is hindered by the continuation of the 
authorization.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996; T.D. ATF-436, 66 FR 5471, Jan. 19, 2001]



Sec.  18.14  Emergency variations from requirements.

    (a) General. The appropriate TTB officer may approve emergency 
variations from requirements specified in this part, where the 
appropriate TTB officer finds that an emergency exists, the proposed 
variations are necessary, and the proposed variations:
    (1) Will afford the security and protection to the revenue intended 
by the prescribed specifications;
    (2) Will not hinder the effective administration of this part; and
    (3) Will not be contrary to any provision of law.

Variations from requirements granted under this section are conditioned 
on compliance with the procedures, conditions, and limitations stated in 
the approval of the application. Failure to comply in good faith with 
such procedures, conditions and limitations will automatically terminate 
the authority for such variations and the proprietor thereupon shall 
fully comply with the prescribed requirements of regulations from which 
the variations were authorized. Authority for any variation may be 
withdrawn whenever in the judgment of the appropriate TTB officer the 
revenue is jeopardized or the effective administration of this part is 
hindered by the continuation of such variation.
    (b) Application. A proprietor who desires to employ emergency 
variations shall submit a written application to the appropriate TTB 
officer. The application will describe the proposed variations and set 
forth the reasons therefor. Variations will not be employed until the 
application has been approved, except when an emergency requires 
immediate action to correct a situation that is threatening to life or 
property. Such corrective action may then be taken concurrent with the 
filing of the application and notification of the appropriate TTB 
officer via telephone.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.15  Right of entry and examination.

    Appropriate TTB officers may at all times, as well by night as by 
day, enter any concentrate plant to make examination of the materials, 
equipment, and facilities thereon; and make such gauges and inventories 
as they deem necessary. Whenever appropriate TTB officers, having 
demanded admittance and declared their name and office, are not admitted 
into such premises by the proprietor or other person having charge 
thereof, they may at all times use such force as is necessary for them 
to gain entry to such premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1357, as amended, 1392, as amended 
(26 U.S.C. 5203, 5511))



Sec.  18.16  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
will be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form will be furnished as required by this part. The 
form will be filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National

[[Page 344]]

Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-249, 52 
FR 5960, Feb. 27, 1987; T.D. 372, 61 FR 20723, May 8, 1996; T.D. ATF-
436, 66 FR 5472, Jan. 19, 2001; T.D. TTB-44, 71 FR 16927, Apr. 4, 2006]

                          Document Requirements



Sec.  18.17  Retention of documents.

    The proprietor shall maintain a file of all approved applications 
and other documents, on or convenient to the concentrate plant premises, 
available for inspection by appropriate TTB officers.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.18  Execution under penalties of perjury.

    When a form or other document called for under this part is required 
to be executed under penalties of perjury, it will be so executed, as 
defined in Sec.  18.11, and signed by an authorized person.

(Act of August 16, 1954, Pub. L. 591, Chapter 736, 68A Stat. 749 (26 
U.S.C. 6065))



Sec.  18.19  Security.

    The concentrate plant and equipment will be so constructed, 
arranged, equipped, and protected as to afford adequate protection to 
the revenue and facilitate inspection by appropriate TTB officers.



                         Subpart D_Qualification



Sec.  18.21  General.

    A person who desires to engage in the business of manufacturing 
concentrate shall submit an application for registration on Form 27-G 
(5520.3) and receive approval as provided in this part. All written 
statements, affidavits, and other documents submitted in support of the 
application or incorporated by reference are deemed a part thereof.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.22  Restrictions as to location and use.

    (a) Restrictions. A concentrate plant may not be established in any 
dwelling house or on board any vessel or boat, or on any premises where 
any other business is conducted. The premises of a concentrate plant may 
be used only for the business stated in the approved application for 
registration.
    (b) Exceptions. The appropriate TTB officer may authorize (1) the 
establishment of a concentrate plant on premise where other business is 
conducted, or (2) the use of the premises of a concentrate plant for 
other business. A person or proprietor desiring such authorization shall 
submit a written application to the appropriate TTB officer. The 
application will describe the other business by type and the premises to 
be used. If the premises of a concentrate plant are to be used for other 
business, the relationship (if any) to the concentrate plant will be 
described in the application. A concentrate plant may not be established 
on premises where other business is conducted or used to conduct other 
business until the application is approved. The appropriate TTB officer 
may decline to approve the application or withdraw the authorization if 
the revenue is jeopardized or the effective administration of this part 
is hindered.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.23  Registry of stills.

    The provisions of subpart C of part 29 of this chapter are 
applicable to stills or distilling apparatus located on concentrate 
plant premises used for the production of concentrate. As provided under 
Sec.  29.55, the listing of a still in the

[[Page 345]]

application, and approval of the application, constitutes registration 
of the still.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended, 1392, as amended 
(26 U.S.C. 5179, 5511))

[T.D. ATF-207, 50 FR 23681, June 5, 1985, as amended by T.D. ATF-462, 66 
FR 42736, Aug. 15, 2001]

                               Application



Sec.  18.24  Data for application.

    Applications on Form 27-G (5520.3) will include the following:
    (a) Serial number;
    (b) Name and principal business address of the applicant, and the 
location of the plant if different from the business address;
    (c) Purpose for which filed;
    (d) Information regarding proprietorship, supported by the 
organizational documents listed in Sec.  18.25; and
    (e) Description of each still and a statement of its maximum 
capacity.

Where any of the information required by this section is on file with 
the appropriate TTB officer, that information, if accurate and complete, 
may be incorporated by reference by the applicant and made a part of the 
application.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.25  Organizational documents.

    The supporting information required by paragraph (d) of Sec.  18.24 
includes, as applicable:
    (a) Extracts from the articles of incorporation or from the minutes 
of meetings of the board of directors, authorizing the incumbents of 
certain offices, or other persons, to sign for the corporation;
    (b) Names and addresses of the officers and directors (Do not list 
officers and directors who have no responsibility in connection with the 
operation of the concentrate plant.);
    (c) Names and addresses of the 10 persons having the largest 
ownership or other interest in the corporation or other entity, and the 
nature and amount of the stockholding or other interest of each, whether 
the interest appears in the name of the interested party or in the name 
of another for him; and
    (d) In the case of an individual owner or a partnership, the name 
and address of every person interested in the concentrate plant, whether 
the interest appears in the name of the interested party or in the name 
of another for him.



Sec.  18.26  Powers of attorney.

    The proprietor shall execute and file a Form 1534 (5000.8) for every 
person authorized to sign or to act on behalf of the proprietor. (Not 
required for persons whose authority is furnished in the application.)

(Approved by the Office of Management and Budget under control number 
1512-0079)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.27  Additional requirements.

    (a) The appropriate TTB officer, to protect the revenue, may 
require:
    (1) Additional information in support of an application for 
registration;
    (2) Marks on major equipment to show serial number, capacity, and 
use;
    (3) Installation of meters, tanks, pipes, or other apparatus; and
    (4) Installation of security devices.
    (b) Any proprietor refusing or neglecting to comply with any 
requirement of this section shall not be permitted to operate.

(Approved by the Office of Management and Budget under control number 
1512-0046)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1353, as amended, 
1395, as amended (26 U.S.C. 5172, 5178, 5552))

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]

                  Changes After Original Establishment



Sec.  18.31  General requirements.

    Where there is a change with respect to the information shown in the 
application, the proprietor shall submit, within 30 days of the change 
(except as otherwise provided in this part), an

[[Page 346]]

amended application on Form 27-G (5520.3).

(Approved by the Office of Management and Budget under control number 
1512-0046)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.32  Change in name.

    The proprietor shall submit an amended application to cover any 
change in the individual, firm, or corporate name.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.33  Change in location.

    The proprietor shall submit an amended application to cover a change 
in the location of a concentrate plant. Operation of the concentrate 
plant may not be commenced at the new location prior to approval of the 
amended application.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.34  Continuing partnerships.

    If, under the laws of the particular State, the partnership is not 
immediately terminated on death or insolvency of a partner, but 
continues until the winding up of the partnership affairs is completed, 
and the surviving partner has the exclusive right to the control and 
possession of the partnership assets for the purpose of liquidation and 
settlement, the surviving partner may continue to operate the plant 
under the prior qualification of the partnership. If the surviving 
partner acquires the business on completion of the settlement of the 
partnership, such partner shall qualify in his own name form the date of 
acquisition, as provided in Sec.  18.35. The rule set forth in this 
section also applies where there is more than one surviving partner.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.35  Change in proprietorship.

    (a) General. If there is a change in the proprietorship of a 
concentrate plant, the outgoing proprietor shall comply with the 
requirements of Sec.  18.38, and the successor shall, before commencing 
operations, file application and receive approval in the same manner as 
a person qualifying as the proprietor of a new concentrate plant. 
Processing material, concentrate and other materials may be transferred 
from an outgoing proprietor to a successor.
    (b) Fiduciary. A successor to the proprietorship of a concentrate 
plant who is an administrator, executor, receiver, trustee, assignee, or 
other fiduciary shall comply with the provisions of paragraph (a) of 
this section. If the fiduciary was appointed by a court, the effective 
dates of the qualifying documents filed by the fiduciary shall be the 
effective date of the court order, or the date specified therein for the 
fiduciary to assume control. If the fiduciary was not appointed by a 
court, the date the fiduciary assumes control shall coincide with the 
effective date of the qualifying documents filed by the fiduciary.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.36  Change in officers and directors.

    The proprietor shall submit an amended application to cover changes 
in the list of officers and directors furnished under the provisions of 
Sec.  18.25.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]

[[Page 347]]



Sec.  18.37  Change in stockholders.

    The proprietor shall submit changes in the list of stockholders 
furnished under the provisions of Sec.  18.25 annually on May 1. When 
the sale or transfer of capital stock results in a change of control or 
management of the business, the proprietor shall comply with the 
provisions of Sec.  18.35.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.38  Permanent discontinuance.

    A proprietor who permanently discontinues the business of a 
concentrate manufacturer shall, after completion of operations, file an 
application on Form 27-G (5520.3) to cover such discontinuance, giving 
the date of the discontinuance.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.39  Qualification to alternate a volatile fruit-flavor concentrate plant and a distilled spirits plant.

    A proprietor of a volatile fruit-flavor concentrate plant operating 
a contiguous distilled spirits plant may alternate the use of such 
premises between the two functions through extension and curtailment by 
filing with the appropriate TTB officer the following information:
    (a) TTB Form 27-G (5520.3) and TTB Form 5110.41 to cover the 
proposed alternation of premises;
    (b) A special diagram, in duplicate, delineating the premises as 
they will exist, both during extension and curtailment and clearly 
depicting all buildings, floors, rooms, areas, equipment and pipe lines 
(identified individually by letter or number) which are to be subject to 
alternation, in their relative operating sequence; and
    (c) A bond or a consent of surety to cover the proposed alternation 
of premises.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-455, 66 FR 29482, May 31, 2001]



Sec.  18.40  Qualification to alternate volatile fruit-flavor concentrate plant and bonded wine cellar.

    A proprietor of a volatile fruit-flavor concentrate plant operating 
a contiguous bonded wine cellar may alternate the use of each premise by 
extension and curtailment by filing with the appropriate TTB officer the 
following information:
    (a) TTB Form 27-G (5520.3) and TTB Form 5120.25 to cover the 
proposed alternation of premises;
    (b) A special diagram, in duplicate, delineating the premises as 
they will exist, both during extension and curtailment and clearly 
depicting all buildings, floors, rooms, areas, equipment and pipe lines 
(identified individually by letter or number) which are to be subject to 
alternation, in their relative operating sequence; and
    (c) A bond or a consent of surety to cover the proposed alternation 
of premises.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-455, 66 FR 29482, May 31, 2001]



Sec.  18.41  Separation of premises.

    The appropriate TTB officer may specify additional means of 
separating the volatile fruit-flavor concentrate plant from a distilled 
spirits plant or bonded wine cellar premises.

[T.D. ATF-455, 66 FR 29482, May 31, 2001]



Sec.  18.42  Record of alternation.

    After approval of the qualifying documents for the alternation of 
premises, the proprietor must execute a record each time that the 
premises are alternated. The record will contain the following 
information:
    (a) Identification assigned by TTB, including the plant or registry 
number, of the volatile fruit-flavor concentrate plant and the distilled 
spirits plant or bonded wine cellar;

[[Page 348]]

    (b) Effective date and time of proposed change; and
    (c) Description of the alternation that identifies the diagrams 
depicting the premises before and after the alternation.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-455, 66 FR 29482, May 31, 2001]



Sec.  18.43  Conditions of alternation.

    (a) Curtailment of volatile fruit-flavor concentrate plant. The 
proprietor must remove all concentrate, fruit mash, and juice from the 
volatile fruit-flavor concentrate plant alternated to a distilled 
spirits plant or to a bonded wine cellar premises, unless such 
concentrate, fruit mash, or juice is being simultaneously transferred to 
the distilled spirits plant or bonded wine cellar premises.
    (b) Extension of volatile fruit-flavor concentrate premises and 
curtailment of distilled spirits plant. The proprietor must remove all 
spirits, denatured spirits, articles and wine, except for concentrate, 
fruit mash, or juice that is being simultaneously transferred to the 
volatile fruit-flavor concentrate plant.
    (c) Extension of volatile fruit-flavor concentrate premises and 
curtailment of bonded wine cellar premises. The proprietor must remove 
all wine and spirits from the alternated bonded wine cellar premises, 
except for concentrate, fruit mash, or juice that is being 
simultaneously transferred to the volatile fruit-flavor concentrate 
plant.

[T.D. ATF-455, 66 FR 29482, May 31, 2001]



                          Subpart E_Operations



Sec.  18.51  Processing material.

    (a) General. A proprietor may produce processing material or receive 
processing material produced elsewhere. Fermented processing material 
may not be used in the manufacture of concentrate. Processing material 
may be used if it contains no more alcohol than is reasonably 
unavoidable, and must be used when produced, or as soon thereafter as 
practicable.
    (b) Record of processing material. A proprietor shall maintain a 
record, by kind and quantity, of processing material used.

(Approved by the Office of Management and Budget under control number 
1512-0098)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.52  Production of high-proof concentrate.

    (a) General. High-proof concentrate may be produced in a concentrate 
plant. Concentrate having an alcohol content of more than 24 percent by 
volume that is fit for beverage use may not be produced in a concentrate 
plant.
    (b) Determination. A proprietor shall determine whether a particular 
concentrate is a high-proof concentrate. However, a proprietor may at 
any time submit a written request to the appropriate TTB officer for a 
determination of whether a concentrate is unfit for beverage use. Each 
request for a determination will include information as to kind, percent 
alcohol by volume, and fold of the concentrate. The request will be 
accompanied by a representative 8-ounce sample of the concentrate.

(Approved by the Office of Management and Budget under control number 
1512-0046)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.53  Use of concentrate.

    Concentrate may be used in the manufacture of any product made in 
the conduct of another business authorized to be conducted on 
concentrate plant premises under the provisions of Sec.  18.22, if such 
product contains less than one-half of one percent of alcohol by volume.



Sec.  18.54  Transfer of concentrate.

    (a) Concentrate unfit for beverage use. Concentrate (including high-
proof concentrate and concentrate treated as provided in paragraph (c) 
of this section) unfit for beverage use may be transferred for any 
purpose authorized by law.
    (b) Concentrate fit for beverage use. Concentrate fit for beverage 
use may be transferred only to a bonded wine cellar. If such concentrate 
is rendered

[[Page 349]]

unfit for beverage use, it may be transferred as provided in paragraph 
(a) of this section.
    (c) Rendering concentrate unfit for beverage use. Concentrate may be 
rendered unfit for beverage use by reducing the alcohol content to not 
more than 15 percent alcohol by volume (if the reduction does not result 
in a concentrate of less than 100-fold), and adding to each gallon 
thereof, in a quantity sufficient to render the concentrate unfit for 
beverage use, the following:
    (1) Sucrose; or
    (2) Concentrated fruit juice, of at least 70 Brix, made from the 
same kind of fruit as the concentrate; or
    (3) Malic, citric, or tartaric acid.
    (d) Record of transfer. The proprietor shall record transfers of 
concentrate (including high-proof concentrate) on a record of transfer 
as required in Sec. Sec.  18.62 or 18.63.

(Approved by the Office of Management and Budget under control number 
1512-0098)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.55  Label.

    Each container of concentrate will have affixed thereto, before 
transfer, a label identifying the product and showing (a) the name of 
the proprietor; (b) the registry number of the plant; (c) the address of 
the plant; (d) the number of wine gallons; and (e) the percent of 
alcohol by volume.

(Approved by the Office of Management and Budget under control number 
1512-0098)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  18.56  Receipt of concentrate.

    (a) General. The proprietor of a concentrate plant may accept the 
return of concentrate that the proprietor shipped. In addition, 
concentrate that is unfit for beverage use may be received from another 
concentrate plant for further processing in accordance with this part.
    (b) Record of concentrate received. When concentrate is received, 
the proprietor must record the receipt, including the name of the 
consignor and a notation regarding any loss in transit or other 
discrepancy.

(Approved by the Office of Management and Budget under control number 
1512-0098)

[T.D. ATF-455, 66 FR 29482, May 31, 2001]



                      Subpart F_Records and Reports



Sec.  18.61  Records and reports.

    (a) General. Each proprietor shall keep records and reports as 
required by this part. These records and reports will be maintained on 
or convenient to the concentrate plant and will be available for 
inspection by appropriate TTB officers during business hours. Records 
and reports will be retained by the proprietor for three years from the 
date they were prepared, or three years from the date of the last entry, 
whichever is later.
    (b) Records. Each proprietor shall keep such records relating to or 
connected with the production, transfer, or return of concentrate and 
the juice or mash from which it is produced, as will (1) enable any 
appropriate TTB officer to verify operations and to ascertain whether 
there has been compliance with law and regulations, and (2) enable the 
proprietor to prepare Form 1695(5520.2). A proprietor need not prepare a 
specific record to meet the record requirements of this part. Any book, 
paper, invoice, bill of lading, or similar document that the proprietor 
prepares or receives for other purposes may be used, if all required 
information is shown.
    (c) Reports. Each proprietor shall prepare and submit reports 
(including applications) as required by this part.

(Approved by the Office of Management and Budget under control number 
1512-0098)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; T.D. ATF-381, 61 FR 37003, July 16, 1996]



Sec.  18.62  Record of transfer.

    When concentrate, juice, or fruit mash is transferred from the 
concentrate plant premises, the proprietor shall prepare, in duplicate, 
a record of transfer. The record of transfer may consist of a commercial 
invoice, bill of lading, or any other similar document.

[[Page 350]]

The proprietor shall forward the original of the record of transfer to 
the consignee and retain the copy as a record. Each record of transfer 
shall show the following information:
    (a) Name, registry number, and address of the concentrate plant;
    (b) Name and address of the consignee;
    (c) Kind (by fruit from which produced) and description of product, 
e.g. grape concentrate, concentrated grape juice, unconcentrated grape 
juice, grape mash;
    (d) Quantity (in wine gallons); and
    (e) For concentrate, percent of alcohol by volume.

(Approved by the Office of Management and Budget under control number 
1512-0098)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; T.D. ATF-381, 61 FR 37003, July 16, 1996]



Sec.  18.63  Record of transfer to a bonded wine cellar.

    A proprietor transferring concentrate, juice, or fruit mash to a 
bonded wine cellar shall prepare a record of transfer as required by 
Sec.  18.62 and enter the following additional information:
    (a) Registry number of the bonded wine cellar;
    (b) For each product manufactured from grapes or berries, variety of 
grape or berry;
    (c) For concentrate, fold;
    (d) For juice and fruit mash, whether volatile fruit flavor has been 
removed and, if so, whether the identical volatile fruit flavor has been 
restored; and
    (e) For concentrated juice, total solids content before and after 
concentration.

(Approved by the Office of Management and Budget under control number 
1512-0098)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1392, as amended (26 U.S.C. 5511))

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-172, 49 
FR 14941, Apr. 16, 1984; T.D. ATF-381, 61 FR 37003, July 16, 1996]



Sec.  18.64  Photographic copies of records.

    Proprietors may record, copy, or reproduce records required by this 
part by any process which accurately reproduces or forms a durable 
medium for reproducing the original of records. Whenever records are 
reproduced under this section, the reproduced records will be preserved 
in conveniently accessible files, and provisions will be made for 
examining, viewing, and using the reproduced record the same as if it 
were the original record. The reproduced record will be treated and 
considered for all purposes as though it were the original record. All 
provisions of law and regulation applicable to the original record are 
applicable to the reproduced record.



Sec.  18.65  Annual report.

    An annual report, on Form 1695(5520.2), of concentrate plant 
operations shall be prepared by each proprietor and forwarded in 
accordance with the instructions for the form. When a proprietor 
permanently discontinues the business of manufacturing concentrate, the 
proprietor shall submit the annual report in accordance with the 
instructions for the form.

[T.D. ATF-436, 66 FR 5472, Jan. 19, 2001]



PART 19_DISTILLED SPIRITS PLANTS--Table of Contents




                             Subpart A_Scope

Sec.
19.1 General.
19.2 Territorial extent.
19.3 Related regulations.
19.4 Delegations of the Administrator.

                          Subpart B_Definitions

19.11 Meaning of terms.

                             Subpart C_Taxes

                             Gallonage Taxes

19.21 Tax.
19.22 Attachment of tax.
19.23 Lien.
19.24 Persons liable for tax.
19.25 Time for tax determination.
19.26 Tax on wine.

                               Assessments

19.31 Production not accounted for.
19.32 Assessment of tax on spirits, denatured spirits, or wines in bond 
          which are

[[Page 351]]

          lost, destroyed or removed without authorization.

                           Effective Tax Rates

19.34 Computation of effective tax rate.
19.35 Application of effective tax rate (Actual).
19.36 Standard effective tax rate.
19.37 Average effective tax rate.
19.38 Inventory reserve account.

                                 Claims

19.41 Claims on spirits, denatured spirits, articles, or wines lost or 
          destroyed in bond.
19.42 Claims on spirits returned to bonded premises.
19.43 Claims relating to spirits lost after tax determination.
19.44 Execution of claims and supporting documents.
19.45 Claims for credit of tax.
19.46 Adjustments for credited tax.

                 Subpart Ca_Special (Occupational) Taxes

19.49 Liability for special tax.
19.50 Rates of special tax.
19.51 Special tax returns.
19.52 Employer identification number.

                           Special Tax Stamps

19.53 Issuance, distribution, and examination of special tax stamps.
19.54 Changes in special tax stamps.

          Subpart D_Administrative and Miscellaneous Provisions

                   Activities Not Subject to This Part

19.57 Recovery and reuse of denatured spirits in manufacturing 
          processes.
19.58 Use of taxpaid distilled spirits to manufacture products unfit for 
          beverage use.
19.61 Forms prescribed.
19.62 Alternate methods or procedures.
19.63 Pilot operations.
19.64 [Reserved]
19.65 Experimental distilled spirits plants.
19.66 Application to establish experimental plants.
19.67 Spirits produced in industrial processes.
19.68 Other businesses.
19.70 Exemptions to meet the requirements of National defense.
19.71 Experimental or research operations by scientific institutions and 
          colleges of learning.
19.72 Other businesses.
19.73 Emergency variations from requirements.
19.74 Disaster exemptions.
19.75 Assignment of officers and supervision of operations.
19.76 Allowance of remission, abatement, credit or refund of tax.
19.77 Installation of meters, tanks and other apparatus.
19.78 Approval of qualifying documents.
19.79 Discontinuance of storage facilities.
19.81 Right of entry and examination.
19.82 Detention of containers.
19.83 Samples for the United States.
19.84 Gauging and measuring equipment.

                    Entry and Examination of Premises

19.86 Furnishing facilities and assistance.

       Gauging of Spirits, Wines or Alcoholic Flavoring Materials

19.91 Gauging.
19.92 When gauges are required.
19.93 Quantity determination of spirits in bond.

          Securing of Conveyances Used for Transporting Spirits

19.96 Securing of conveyances.

            Conveyance of Spirits or Wines on Plant Premises

19.97 Taxpaid spirits or wines on bonded premises.
19.98 Conveyance of untaxpaid spirits or wines within a distilled 
          spirits plant.
19.99 Spirits in customs custody.

                          Penalties of Perjury

19.100 Execution under penalties of perjury.

Subpart E [Reserved]

                       Subpart F_Location and Use

19.131 Restrictions as to location.
19.132 Continuity of premises.
19.133 Use of distilled spirits plant premises.
19.134 Bonded warehouses not on premises qualified for production of 
          spirits.

           Subpart G_Qualification of Distilled Spirits Plants

19.151 General requirements for registration.
19.152 Data for application for registration.
19.153 Statement of physical security.
19.154 Notice of registration.
19.155 Maintenance of registration file.
19.156 Powers of attorney.
19.157 Operating permits.
19.158 Data for application for operating permits.
19.159 Issuance of operating permits.
19.160 Duration of permits.
19.161 Denial of permit.
19.162 Correction of permits.
19.163 Suspension or revocation.
19.164 Rules of practice in permit proceedings.

[[Page 352]]

19.165 Trade names.
19.166 Major equipment.
19.167 Organizational documents.
19.168 Description of plant.
19.169 Registry of stills.
19.170 Statement of production procedure.

                  Changes After Original Qualification

19.180 Application for amended registration.
19.181 Automatic termination of permits.
19.182 Change in name of proprietor.
19.183 Change of trade name.
19.184 Changes in stockholders.
19.185 Changes in officers and directors.
19.186 Change in proprietorship.
19.187 Adoption of formulas.
19.188 Partnerships.
19.189 Change in location.
19.190 Changes in premises.
19.191 Change in operations.
19.192 Change in production procedure.
19.193 Changes in construction or use of buildings and equipment.

                  Operations by Alternating Proprietors

19.201 Procedure for alternating proprietors.

                          Alternate Operations

19.202 Alternate use of premises and equipment for customs purposes.
19.203 Alternation of distilled spirits plant and bonded wine cellar 
          premises.
19.204 Alternation of distilled spirits plant and taxpaid wine bottling 
          house premises.
19.205 Alternate curtailment and extension of bonded premises for use as 
          general premises.
19.206 Curtailment and extension of plant premises for the manufacture 
          of eligible flavors.
19.207 Alternate use of distilled spirits plant and volatile fruit-
          flavor concentrate premises.

                  Permanent Discontinuance of Business

19.211 Notice of permanent discontinuance.

                 Subpart H_Bonds and Consents of Surety

19.231 Filing of operations or unit bonds.
19.232 Additional condition of operations bond.
19.233 Corporate surety.
19.234 Deposit of securities in lieu of corporate surety.
19.235 Consents of surety.
19.236 Filing and execution of powers of attorney.
19.237 Disapproval of bonds or consents of surety.
19.238-19.240 [Reserved]
19.241 Operations bond--distilled spirits plant and adjacent bonded wine 
          cellar.
19.242 Area operations bond.
19.243 Withdrawal bond.
19.244 Unit bond.
19.245 Bonds and penal sums of bonds.
19.246 Strengthening bonds.

                        New or Superseding Bonds

19.247 General.
19.248 New or superseding bond.

                          Termination of Bonds

19.249 Termination of bonds.
19.250 Application of surety for relief from bond.
19.251 Relief of surety from bond.
19.252 Release of pledged securities.

             Subpart I_Construction, Equipment and Security

19.271 Construction of buildings.
19.272 Equipment.
19.273 Tanks.
19.274 Pipelines.
19.275 Continuous distilling system.
19.276 Package scales.
19.277 Measuring devices and proofing instruments.
19.278 Identification of structures, areas, apparatus, and equipment.
19.279 Office facilities.
19.280 Signs.
19.281 Security.
19.282 Breaking Government locks.

                          Subpart J_Production

19.311 Notice by proprietor.
19.312 Receipt of materials.
19.313 Use of materials in production of spirits.
19.314 Removal of fermenting material.
19.315 Removal or destruction of distilling material.
19.316 Distillation.
19.317 Treatment during production.
19.318 Addition of caramel to rum or brandy and addition of oak chips to 
          spirits.
19.319 Production gauge.
19.320 Identification of spirits.
19.321 Entry.
19.322 Distillates containing extraneous substances.

                                 Formula

19.324 Statement of production procedure or Form 5110.38.

                          Chemical By-Products

19.326 Spirits content of chemicals produced.
19.327 Disposition of chemicals.
19.328 Wash water.

                               Inventories

19.329 Production inventories.

[[Page 353]]

                        Subpart K_Redistillation

19.331 General.
19.332 Receipts for redistillation
19.333 Redistillation.

                            Subpart L_Storage

19.341 General.
19.342 Receipt and storage of bulk spirits and wines.
19.343 Addition of oak chips to spirits and addition of caramel to 
          brandy and rum.

                      Filling and Changing Packages

19.344 Filling of packages from tanks.
19.345 Change of packages.

                     Mingling or Blending of Spirits

19.346 Mingling or blending of spirits for further storage.
19.347 Packages dumped for mingling.
19.348 Determining age of mingled spirits.
19.349 Mingled spirits or wines held in tanks.

                               Inventories

19.353 Storage inventories.

Subpart M_Processing Operations Other Than Denaturation and Manufacture 
                               of Articles

19.371 General.

  Receipt and Use of Spirits, Wines, and Alcoholic Flavoring Materials

19.372 Receipt of spirits, wines and alcoholic flavoring materials for 
          processing.
19.373 Use of spirits, wines and alcoholic flavoring materials.
19.374 Manufacture of nonbeverage products, intermediate products or 
          eligible flavors.

                               Obscuration

19.376 Determining obscuration.

                                Formulas

19.378 Formula requirement.

              Bottling, Packaging, and Removal of Products

19.381 Removals from processing.
19.382 Bottling tanks.
19.383 Bottling tank gauge.
19.384 Preparation of bottling or packaging record.
19.385 Labels to agree with contents of tanks and containers.
19.386 Alcohol content and fill.
19.387 Completion of bottling.
19.388 Cases.
19.389 Remnants.
19.390 Filling packages.
19.391 Removal by bulk conveyances or pipelines.
19.392 Rebottling.
19.393 Reclosing and relabeling.
19.394 Bottled-in-bond spirits.
19.395 Labels for export spirits.
19.396 Spirits removed for shipment to Puerto Rico.
19.397 Spirits not originally intended for export.
19.398 Alcohol.

                                 Records

19.400 Daily summary record of spirits bottled or packaged.

                               Inventories

19.401 Inventories of wines and bulk spirits (except in packages) in 
          processing account.
19.402 Inventories of bottled and packaged spirits.

       Subpart N_Denaturing Operations and Manufacture of Articles

19.451 General.

                              Denaturation

19.452 Formulas.
19.453 Testing of denaturants.
19.454 Gauge of denaturation.
19.455 Dissolving of denaturants.
19.456 Adding denaturants.
19.457 Neutralizing denatured spirits.
19.458 Restoration and redenaturation of recovered denatured spirits and 
          recovered articles.
19.459 Mixing of denatured spirits.
19.460 Conversion of denatured alcohol formulas.
19.461 Receipt and storage of denatured spirits.
19.462 Filling of containers from tanks.
19.463 Containers for denatured spirits.

                               Inventories

19.464 Denatured spirits inventories.

                                Articles

19.471 Manufacture of articles.

                 Subpart O_Spirits From Customs Custody

19.481 General.
19.482 Age and fill date.
19.483 Recording gauge.

                            Imported Spirits

19.484 Marks on containers of imported spirits.

                 Puerto Rican and Virgin Islands Spirits

19.485 Marks on containers of Puerto Rican and Virgin Islands spirits.

[[Page 354]]

19.486 Additional tax on nonbeverage spirits.
19.487 Abatement, remission, credit or refund.

                   Subpart P_Transfers and Withdrawals

                                 General

19.501 Authority to withdraw.
19.502 Withdrawal of spirits on production or filling gauge.
19.503 Determination of tare.

                    Transfer Between Bonded Premises

19.505 Authorized transfers.
19.506 Application to receive spirits in bond.
19.507 Termination of application.
19.508 Consignor premises.
19.509 Reconsignment.
19.510 Consignee premises.

             Withdrawals on Determination and Payment of Tax

19.515 Determination and payment of tax.
19.516 Bond account.
19.517 Gauge for tax determination.
19.518 Imported spirits.
19.519 Methods of tax payment.
19.520 Employer identification number.
19.521 Application for employer identification number.
19.522 Taxes to be collected by returns.
19.523 Time for filing returns.
19.524 Payment of tax by electronic fund transfer.
19.525 Manner of filing returns.
19.526 Removal of spirits on tax determination.

              Withdrawal of Spirits Without Payment of Tax

19.531 Authorized withdrawals without payment of tax.
19.532 Withdrawals of spirits for use in wine production.
19.533 Withdrawal of spirits without payment of tax for experimental or 
          research use.
19.534 Withdrawals of spirits for use in production of nonbeverage wine 
          and nonbeverage wine products.

                    Withdrawal of Spirits Free of Tax

19.536 Authorized withdrawals free of tax.
19.537 Withdrawal of spirits free of tax.
19.538 Withdrawal of spirits by the United States.
19.539 Disposition of excess spirits.
19.540 Removal of denatured spirits and articles.
19.541 Reconsignment.

                     Subpart Q_Losses and Shortages

                                 Losses

19.561 Losses in general.
19.562 Determination of losses in bond.
19.563 Loss of spirits from packages.
19.564 Losses after tax determination.

                                Shortages

19.565 Shortages of bottled distilled spirits.

                     Subpart R_Containers and Marks

                               Containers

19.581 Authorized containers.
19.582 Spirits for nonindustrial use.
19.583 Spirits for industrial use.
19.584 Packages.
19.585 Bulk conveyances.
19.586 Tanks.
19.587 Pipelines.
19.588 Construction of bulk conveyances.
19.589 Restrictions on dispositions of bulk spirits.

                                  Marks

19.592 General.
19.593 Package identification numbers in production and storage.
19.594 Numbering of packages and cases in processing.
19.595 Specifications for marks.
19.596 Marks on packages of spirits filled on bonded premises.
19.597 Kind of spirits.
19.598 [Reserved]
19.599 Change of packages in storage.
19.600 [Reserved]
19.601 Marks on containers of specially denatured spirits.
19.602 Marks on containers of completely denatured alcohol.
19.603 [Reserved]
19.604 Caution label.
19.605 Additional marks on portable containers.
19.606 Marks on bulk conveyances.
19.607 Marks on cases.
19.608 Cases of industrial alcohol.
19.609 [Reserved]
19.610 Obliteration of marks.
19.611 Relabeling and reclosing off bonded premises.
19.612 Authorized abbreviations to identify marks.

             Subpart S_Liquor Bottle and Label Requirements

19.631 Scope of subpart.

                       Liquor Bottle Requirements

19.632 Bottles authorized.
19.633 Distinctive liquor bottles.
19.634 Receipt and storage of liquor bottles.
19.635 Bottles to be used for display purposes.
19.636 Bottles for testing purposes.
19.637 Bottles not constituting approved containers.

[[Page 355]]

19.638 Disposition of stocks of liquor bottles.
19.639 Use and resale of liquor bottles.

                        Bottle Label Requirements

19.641 Certificate of label approval or exemption.
19.642 Statements required on labels under an exemption from label 
          approval.
19.643 Brand name, kind, alcohol content, and State of distillation.
19.644 Net contents.
19.645 Name and address of bottler.
19.646 Age of whisky containing no neutral spirits.
19.647 Age of whisky containing neutral spirits.
19.648 Age of brandy.
19.649 Presence of neutral spirits and coloring, flavoring, and blending 
          materials.
19.650 Country of origin.

                           Subpart T_Closures.

19.661 General.
19.662 Affixing closures.
19.663 Reclosing.

Subpart U_Return of Spirits to Bonded Premises and Voluntary Destruction

                                 Returns

19.681 Return of taxpaid spirits to bonded premises.
19.682 Receipt and gauge of returned taxpaid spirits.
19.683 Return of recovered denatured spirits and recovered articles.
19.684 Articles and spirits residues received for redistillation.
19.685 Return of recovered tax-free spirits, and spirits and denatured 
          spirits withdrawn free of tax.
19.686 Return of spirits withdrawn without payment of tax.
19.687 Return of spirits withdrawn for export with benefit of drawback.
19.688 Abandoned spirits.

                          Voluntary Destruction

19.691 Voluntary destruction.

                      Subpart V_Samples of Spirits

19.701 Spirits withdrawn from bonded premises.
19.702 Samples used on bonded premises.
19.703 Taxpayment of samples.
19.704 Labels.

                      Subpart W_Records and Reports

                                 General

19.721 Records.
19.722 Conversion between metric and U.S. units.
19.723 Maintenance and preservation of records.
19.724 Modified forms.
19.725 Photographic copies of records.
19.726 Authorized abbreviations to identify spirits.

                                 Records

19.731 General.
19.732 Details of daily records.

                           Production Account

19.736 Daily production records.

                             Storage Account

19.740 Daily storage records.
19.741 Package summary records.
19.742 Tank record of wine or spirits of less than 190 degrees of proof.
19.743 Tank summary record for spirits of 190 degrees or more of proof.

                           Processing Account

19.746 Processing.
19.747 Records of manufacturing.
19.748 Dump/batch records.
19.749 Bottling and packaging record.
19.750 Records of alcohol content and fill tests.
19.751 Records of finished products.
19.752 Denaturation records.
19.753 Record of article manufacture.

                               Tax Records

19.761 Record of tax determination.
19.762 Daily summary record of tax determinations.
19.763 Record of average effective tax rates.
19.764 Inventory reserve records.
19.765 Standard effective tax rates.

                              Other Records

19.766 Record of samples.
19.767 Record of destruction.
19.768 Gauge record.
19.769 Package gauge record.
19.770 Transfer record.
19.771-19.772 [Reserved]
19.773 Daily record of wholesale liquor dealer and taxpaid storeroom 
          operations.
19.774 Record of inventories.
19.775 Record of securing devices.
19.776 Record of scale tests.
19.777 [Reserved]
19.778 Removal on or after January 1, 1987 of Puerto Rican and Virgin 
          Islands spirits, and rum imported from all other areas.
19.779 Record of shipment of spirits and specially denatured spirits 
          withdrawn free of tax.
19.780 Record of distilled spirits shipped to manufacturers of 
          nonbeverage products.

                     Submission of Forms and Reports

19.791 Submission of transaction forms.

[[Page 356]]

19.792 Reports.

        Subpart X_Production of Vinegar by the Vaporizing Process

                            Scope of Subpart

19.821 Production of vinegar by the vaporizing process.

                         Qualification Documents

19.822 Application.
19.823 Changes after original qualification.
19.824 Notice of permanent discontinuance of business.

                       Construction and Equipment

19.825 Construction and equipment.

                            Plant Operations

19.826 Authorized operations.
19.827 Conduct of operations.
19.828 Removals from the premises.

                                 Records

19.829 Daily records.

                    Administrative and Miscellaneous

19.830 Application of distilled spirits tax.

                Subpart Y_Distilled Spirits for Fuel Use

19.901 Scope of subpart.
19.902 Waiver for alcohold fuel plants.
19.903 Alternate methods or procedures.
19.904 Emergency variations from requirements.
19.905 Taxes.
19.906 Special (occupational) tax.

                               Definitions

19.907 Meaning of terms.

                                 Permits

19.910 Application for permit required.
19.911 Criteria for issuance of permit.
19.912 Small plants.
19.913 Action on applications to establish small plants.
19.914 Medium plants.
19.915 Large plants.
19.916 Organizational documents.
19.917 Powers of attorney.
19.918 Information already on file and supplemental information.

               Changes Affecting Applications and Permits

19.919 Changes affecting applications and permits.
19.920 Automatic termination of permits.
19.921 Change in type of alcohol fuel plant.
19.922 Change in name of proprietor.
19.923 Changes in officers, directors, or principal persons.
19.924 Change in proprietorship.
19.925 Continuing partnerships.
19.926 Change in location.

                          Alternate Operations

19.930 Alternating proprietorship.

                  Permanent Discontinuance of Business

19.945 Notice of permanent discontinuance.

                   Suspension or Revocation of Permits

19.950 Suspension or revocation.

                                  Bonds

19.955 Bonds.
19.956 Amount of bond.
19.957 Instructions to compute bond penal sum.
19.958 Conditions of bond.
19.959 Additional provisions with respect to bonds.

                  Construction, Equipment and Security

19.965 Construction and equipment.
19.966 Security.
19.967 Additional security.

                               Supervision

19.970 Supervision of operations.

                         Accounting for Spirits

19.980 Gauging.
19.981 Inventories.
19.982 Records.
19.983 Spirits rendered unfit for beverage use in the production 
          process.
19.984 Record of spirits received.
19.985 Record of spirits rendered unfit for beverage use.
19.986 Record of dispositions.
19.987 Maintenance and retention of records.
19.988 Reports.

                             Redistillation

19.990 Redistillation of spirits or fuel alcohol received on the plant 
          premises.

                    Uses, Withdrawals, and Transfers

19.995 Use on premises.
19.996 Withdrawal of spirits.
19.997 Withdrawal of fuel alcohol.
19.998 Transfer in bond of spirits.
19.999 Consignor premises.
19.1000 Reconsignment in transit.
19.1001 Consignee premises.
19.1002 Prohibited uses, transfers and withdrawals.

         Materials for Rendering Spirits Unfit for Beverage Use

19.1005 Authorized materials.
19.1006 Other materials.
19.1007 Samples.

[[Page 357]]

                                  Marks

19.1008 Marks.

                    Subpart Z_Paperwork Reduction Act

19.1010 OMB control numbers assigned pursuant to the Paperwork Reduction 
          Act.

    Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 
5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5113, 5142, 5143, 
5146, 5148, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207, 
5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273, 
5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561, 
5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 7011, 
7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

    Source: T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 19 appear by T.D. ATF-
463 and T.D. ATF-462, 66 FR 42733, 42736, Aug. 15, 2001.



                             Subpart A_Scope



Sec.  19.1  General.

    The regulations in this part relate to the location, construction, 
equipment, arrangement, qualification, and operation (including 
activities incident thereto) of distilled spirits plants.



Sec.  19.2  Territorial extent.

    This part applies to the several States of the United States and the 
District of Columbia.



Sec.  19.3  Related regulations.

    Regulations relating to this part are listed below:

27 CFR part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act.
27 CFR part 2--Nonindustrial Use of Distilled Spirits and Wine.
27 CFR part 3--Bulk Sales and Bottling of Distilled Spirits.
27 CFR part 4--Wine Labeling and Advertising.
27 CFR part 5--Labeling and Advertising Distilled Spirits.
27 CFR part 20--Distribution and Use of Denatured Alcohol and Rum.
27 CFR part 21--Formulas for Denatured Alcohol and Rum.
27 CFR part 22--Distribution and Use of Tax-Free Alcohol.
27 CFR part 24--Wine.
27 CFR part 26--Liquors and Articles from Puerto Rico and the Virgin 
Islands.
27 CFR part 27--Importation of Distilled Spirits, Wine, and Beer.
27 CFR part 28--Exportation of Alcohol.
27 CFR part 29--Stills and Miscellaneous Regulations.
27 CFR part 30--Gauging Manual.
27 CFR part 31--Alcohol Beverage Dealers.
27 CFR part 71--Rules of Practice in Permit Proceedings.
27 CFR part 197--Drawback on Distilled Spirits Used in Manfacturing 
Nonbeverage Products.
31 CFR part 225--Acceptance of Bonds, Notes, or Other Obligations Issued 
or Guaranteed by the United States as Security in Lieu of Surety or 
Sureties on Penal Bonds.

[T.D. ATF-199, 50 FR 9160, Mar. 6, 1985, as amended by T.D. ATF-207, 50 
FR 23681, June 5, 1985; T.D. ATF-299, 55 FR 24989, June 19, 1990; T.D. 
ATF-459, 66 FR 38549, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 
2002; T.D. TTB-8, 69 FR 3829, Jan. 27, 2004; T.D. TTB-25, 70 FR 19882, 
Apr. 15, 2005]



Sec.  19.4  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.19, Delegation of the Administrator's 
Authorities in 27 CFR Part 19, Distilled Spirits. You may obtain a copy 
of this order by accessing the TTB Web site (http://www.ttb.gov) or by 
mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. TTB-44, 71 FR 16928, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  19.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
terms shall have the meaning ascribed in this section. Words in the 
plural form include the singular, and vice versa, and words indicating 
the masculine gender include the feminine. The terms ``includes'' and 
``including'' do not exclude other things not enumerated which are in 
the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Alcoholic flavoring materials. Any nonbeverage product on which 
drawback has been or will be claimed under 26 U.S.C. 5131-5134 or 
flavors imported

[[Page 358]]

free of tax which are unfit for beverage purposes. The term includes 
eligible flavors but does not include flavorings or flavoring extracts 
manufactured on the bonded premises of distilled spirits plant as an 
intermediate product.
    Application for registration. The application required under 26 
U.S.C. 5171(c).
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.19, Delegation of the Administrator's Authorities in 27 CFR Part 
19, Distilled Spirits Plants.
    Article. A product, containing denatured spirits, which was 
manufactured under 27 CFR part 20 or this part.
    Bank. Any commercial bank.
    Banking day. Any day during which a bank is open to the public for 
carrying on substantially all its banking functions.
    Basic permit. The document authorizing the person named therein to 
engage in a designated business or activity under the Federal Alcohol 
Administration Act.
    Bonded premises. The premises of a distilled spirits plant, or part 
thereof, as described in the application for registration, on which 
distilled spirits operations defined in 26 U.S.C. 5002 are authorized to 
be conducted.
    Bottler. A proprietor of a distilled spirits plant qualified under 
this part as a processor who bottles distilled spirits.
    Bulk container. Any approved container having a capacity in excess 
of one wine gallon.
    Bulk conveyance. A tank car, tank truck, tank ship, tank barge, or a 
compartment of any such conveyance, or any other container approved by 
the appropriate TTB officer for the conveyance of comparable quantities 
of spirits, including denatured spirits, and wines.
    Bulk distilled spirits. The term bulk distilled spirits means 
distilled spirits in a container having a capacity in excess of one 
gallon.
    Business day. Any day, other than a Saturday, Sunday, or a legal 
holiday. (The term legal holiday includes all holidays in the District 
of Columbia and statewide holidays in the particular State in which the 
claim, report, or return, as the case may be, is required to be filed, 
or the act is required to be performed.)
    Calendar quarter and quarterly. These terms refer to the three-month 
period ending on March 31, June 30, September 30, or December 31.
    Carrier. Any person, company, corporation, or organization, 
including a proprietor, owner, consignor, consignee, or bailee, who 
transports distilled spirits, denatured spirits, or wine in any manner 
for himself or others.
    CFR. The Code of Federal Regulations.
    Commercial bank. A bank, whether or not a member of the Federal 
Reserve system, which has access to the Federal Reserve Communications 
System (FRCS) or Fedwire. The ``FRCS'' or ``Fedwire'' is a 
communications network that allows Federal Reserve system member banks 
to effect a transfer of funds for their customers (or other commercial 
banks) to the Treasury Account at the Federal Reserve Bank of New York.
    Container. A receptacle, vessel, or form of bottle, can, package, 
tank or pipeline (where specifically included) used or capable of being 
used to contain, store, transfer, convey, remove, or withdraw spirits 
and denatured spirits.
    Denaturant or denaturing material. Any material authorized under 27 
CFR part 21 for addition to spirits in the production of denatured 
spirits.
    Denatured spirits. Spirits to which denaturants have been added as 
provided in 27 CFR part 21.
    Director of the service center. A director of an internal revenue 
service center.
    Distilled spirits operations. Any authorized distilling, 
warehousing, or processing operations conducted on the bonded premises 
of a plant qualified under this part.
    Distilling material. Any fermented or other alcoholic substance 
capable of, or intended for use in, the original distillation or other 
original processing of spirits.
    District director. A district director of internal revenue.

[[Page 359]]

    Effective tax rate. The net tax rate after reduction for any credit 
allowable under 26 U.S.C. 5010 for wine and flavor content at which the 
tax imposed on distilled spirits by 26 U.S.C. 5001 or 7652 is paid or 
determined.
    Electronic fund transfer or EFT. Any transfer of funds effected by a 
proprietor's commercial bank, either directly or through a correspondent 
banking relationship, via the Federal Reserve Communications System 
(FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of 
New York.
    Eligible flavor. A flavor which:
    (1) Is of a type that is eligible for drawback of tax under 26 
U.S.C. 5134,
    (2) Was not manufactured on the premises of a distilled spirits 
plant, and
    (3) Was not subjected to distillation on distilled spirits plant 
premises such that the flavor does not remain in the finished product.
    Eligible wine. Wine on which tax would be imposed by paragraph (1), 
(2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled 
spirits plant premises and which has not been subject to distillation at 
a distilled spirits plant after receipt in bond.
    Export or exportation. A severance of goods from the mass of things 
belonging to the United States with the intention of uniting them to the 
mass of things belonging to some foreign country and shall include 
shipments to any possession of the United States. For the purposes of 
this part, shipments to the Commonwealth of Puerto Rico, and to the 
territories of the Virgin Islands, American Samoa, and Guam, shall also 
be treated as exportations.
    Fermenting material. Any material which is to be subjected to a 
process of fermentation to produce distilling material.
    Fiduciary. A guardian, trustee, executor, administrator, receiver, 
conservator, or any person acting in any fiduciary capacity for any 
person.
    Fiscal year. The period October 1 of one calendar year through 
September 30 of the following year.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    In bond. When used with respect to spirits, denatured spirits, 
articles, or wine refers to spirits, denatured spirits, articles, or 
wine possessed under bond to secure the payment of the taxes imposed by 
26 U.S.C. Chapter 51, and on which such taxes have not been determined. 
The term includes such spirits, denatured spirits, articles, or wine on 
the bonded premises of a distilled spirits plant, such spirits, 
denatured spirits, or wines in transit between bonded premises 
(including, in the case of wine, bonded wine cellar premises). 
Additionally, the term refers to spirits in transit from customs custody 
to bonded premises, and spirits withdrawn without payment of tax under 
26 U.S.C. 5214, and with respect to which relief from liability has not 
occurred under the provisions of 26 U.S.C. 5005(e)(2).
    Industrial use. As applied to spirits, shall have the meaning 
ascribed in 27 CFR part 2.
    Intermediate product. Any product manufactured pursuant to an 
approved formula under 27 CFR part 5, not intended for sale as such but 
for use in the manufacture of a distilled spirits product.
    I.R.C. The Internal Revenue Code of 1954, as amended.
    Kind. As applied to spirits, except as provided in Sec.  19.597, 
kind shall mean class and type as prescribed in 27 CFR part 5. As 
applied to wines, kind shall mean the classes and types of wines as 
prescribed in 27 CFR part 4.
    Liquor bottle. A bottle made of glass or earthenware, or of other 
suitable material approved by the Food and Drug Administration, which 
has been designed or is intended for use as a container for distilled 
spirits for sale for beverage purposes and which has been determined by 
the appropriate TTB officer to protect the revenue adequately.
    Liter. A metric unit of capacity equal to 1,000 cubic centimeters of 
alcoholic beverage, and equivalent to 33.814 fluid ounces. A liter is 
divided into 1,000 milliliters. Milliliter or milliliters may be 
abbreviated as ``ml.''
    Lot identification. The lot identification described in Sec.  
19.593.
    Mash, wort, wash. Any fermented material capable of, or intended 
for, use as a distilling material.

[[Page 360]]

    Nonindustrial use. As applied to spirits, shall have the meaning 
ascribed in 27 CFR part 2.
    Operating permit. The document issued pursuant to 26 U.S.C. 5171(d), 
authorizing the person named therein to engage in the business or 
operation described therein.
    Package. A cask or barrel or similar wooden container, or a drum or 
similar metal container.
    Package identification number. The package identification number 
described in Sec.  19.593.
    Person. An individual, trust, estate, partnership, association, 
company, or corporation.
    Plant or distilled spirits plant. An establishment qualified under 
this part for distilling, warehousing, processing or any combination 
thereof.
    Plant number. The number assigned to a distilled spirits plant by 
the appropriate TTB officer.
    Processor. Except as otherwise provided under 26 U.S.C. 5002(a)(6), 
any person qualified under this part who manufactures, mixes, bottles, 
or otherwise processes distilled spirits or denatured spirits, or 
manufactures any article.
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Proof of distillation. The composite proof of the spirits at the 
time the production gauge is made,or, if the spirits had been reduced in 
proof prior to the production gauge, the proof of the spirits prior to 
such reduction, unless the spirits are subsequently redistilled at a 
higher proof than the proof prior to reduction.
    Proof gallon. A gallon of liquid at 60 degrees Fahrenheit which 
contains 50 percent by volume of ethyl alcohol having a specific gravity 
of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees 
Fahrenheit as unity, or the alcoholic equivalent thereof.
    Proprietor. The person qualified under this part to operate the 
distilled spirits plant.
    Reconditioning. The dumping of distilled spirits products in bond 
after their bottling or packaging, for purposes other than destruction, 
denaturation, redistillation, or rebottling. The term may include the 
filtration, clarification, stabilization, or reformulation of a product.
    Recovered article. An article containing specially denatured spirits 
salvaged without all of its original ingredients, or an article 
containing completely denatured alcohol salvaged without all of the 
denaturants for completely denatured alcohol, under 27 CFR part 20.
    Season. The period from January 1 through June 30, is the spring 
season, and the period from July 1 through December 31 is the fall 
season.
    Secretary. The Secretary of the Treasury or his delegate.
    Service center. An Internal Revenue Service Center in any of the 
Internal Revenue regions.
    Spirits or distilled spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine in any form (including all dilutions and 
mixtures thereof, from whatever source or by whatever process produced) 
but not denatured spirits unless specifically stated. The term does not 
include mixtures of distilled spirits and wine, bottled at 48[deg] proof 
or less, if the mixture contains more than 50 percent wine on a proof 
gallon basis.
    Spirits residues. Residues, containing distilled spirits, of a 
manufacturing process related to the production of an article under 27 
CFR part 20.
    Tax-determined or determined. When used with respect to the tax on 
any distilled spirits to be withdrawn from bond on determination of tax, 
shall mean that the taxable quantity of spirits has been established.
    Taxpaid. When used with respect to distilled spirits shall mean that 
all applicable taxes imposed by law in respect of such spirits have been 
determined or paid as provided by law.
    This chapter. Title 27, Code of Federal Regulations, Chapter I (27 
CFR Chapter I).
    Transfer in bond. The removal of spirits, denatured spirits and 
wines from one bonded premises to another bonded premises.
    Treasury Account. The Department of the Treasury's General Account 
at the Federal Reserve Bank of New York.

[[Page 361]]

    TTB. The Alcohol and Tobacco Tax and Trade Bureau, Department of the 
Treasury, Washington, DC.
    TTB bond The internal revenue bond as prescribed in 26 U.S.C. 
Chapter 51.
    Unfinished spirits. Spirits in the production system prior to 
production gauge.
    U.S.C. The United States Code.
    Warehouseman. A proprietor of a distilled spirits plant qualified 
under this part to store bulk distilled spirits.
    Wine spirits. The term ``wine spirits'' means spirits authorized for 
use in wine production by 26 U.S.C. 5373.

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9160, Mar. 6, 1985; T.D. ATF-206, 50 FR 23951, June 7, 1985; T.D. 
ATF-230, 51 FR 21748, June 16, 1986; T.D. ATF-297, 55 FR 18061, Apr. 30, 
1990; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. TTB-41, 71 FR 5601, 
Feb. 2, 2006; T.D. TTB-44, 71 FR 16928, Apr. 4, 2006; 71 FR 25753, May 
2, 2006]



                             Subpart C_Taxes

                             Gallonage Taxes



Sec.  19.21  Tax.

    (a) A tax is imposed by 26 U.S.C. 5001 and 7652 on all spirits 
produced in, imported into or brought into the United States at the rate 
prescribed in section 5001 on each proof gallon and a proportionate tax 
at a like rate on all fractional parts of a proof gallon. Wines 
containing more than 24 percent of alcohol by volume are taxed as 
spirits. All products of distillation, by whatever name known, which 
contain spirits, on which the tax imposed by law has not been paid, and 
any alcoholic ingredient added to such products, are considered and 
taxed as spirits.
    (b) A credit against the tax imposed on distilled spirits by 26 
U.S.C. 5001 or 7652 is allowable under 26 U.S.C. 5010 on each proof 
gallon of alcohol derived from eligible wine or from eligible flavors 
which do not exceed 2\1/2\ percent of the finished product on a proof 
gallon basis. The credit is allowable at the time the tax is payable as 
if it constituted a reduction in the rate of tax.
    (c) Where credit against the tax is desired, the person liable for 
the tax shall establish an effective tax rate in accordance with Sec.  
19.34. The effective tax rate established will be applied to each 
withdrawal or other taxable disposition of the distilled spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); 
Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010); Act 
of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 U.S.C. 
7652)).

[T.D. ATF-297, 55 FR 18061, Apr. 30, 1990]



Sec.  19.22  Attachment of tax.

    Under 26 U.S.C. 5001(b), the tax attaches to spirits as soon as the 
substance comes into existence as such, whether it be subsequently 
separated as pure or impure spirits, or be immediately, or at any 
subsequent time, transferred into any other substance, either in the 
process of original production, or by any subsequent process.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))



Sec.  19.23  Lien.

    Under 26 U.S.C. 5004, the tax becomes a first lien on the spirits 
from the time the spirits come into existence as such. The conditions 
under which the first lien shall be terminated are described in 26 
U.S.C. 5004.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1317, as amended (26 U.S.C. 5004))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.24  Persons liable for tax.

    (a) Distilling. 26 U.S.C. 5005 provides that the distiller of 
spirits is liable for the tax and that each proprietor or possessor of, 
and person in any manner interested in the use of, any still, distilling 
apparatus, or distillery, shall be jointly and severally liable for the 
tax on distilled spirits produced. However, a person, not an officer or 
director of a corporate proprietor, owning or having the right of 
control of not more than 10 percent of any class of stock of that 
proprietor, is not liable by reason of the stock ownership or control. 
Persons transferring spirits in bond so liable for the tax are relieved 
of liability if
    (1) The proprietors of transferring and receiving premises are 
independent of each other and neither has a proprietary interest, 
directly or indirectly, in the business of the other, and

[[Page 362]]

    (2) No person so liable for the tax on the spirits transferred 
retains any interest in the spirits.
    (b) Storage on bonded premises. 26 U.S.C. 5005(c) provides that each 
person operating bonded premises shall be liable for the tax on all 
spirits while the spirits are stored on the premises, and on all spirits 
which are in transit to the premises from the time of removal from the 
transferor's bonded premises, pursuant to an approved application. 
Liability for the tax continues until the spirits are transferred or 
withdrawn from bonded premises as authorized by law, or until the 
liability for tax is relieved under the provisions of 26 U.S.C. 5008(a). 
Claims for relief from liability for spirits lost are provided for in 
Sec.  19.41. Voluntary destruction of spirits in bond is provided for in 
subpart U of this part.
    (c) Withdrawals without payment of tax. Under 26 U.S.C. 5005(e), any 
person who withdraws spirits from the bonded premises of a plant without 
payment of tax, as provided in 26 U.S.C. 5214, shall be liable for the 
tax on the spirits from the time of withdrawal. The person shall be 
relieved of any liability at the time the spirits are exported, 
deposited in a foreign-trade zone, used in production of wine, deposited 
in a customs bonded warehouse, laden as supplies upon or used in the 
maintenance or repair of certain vessels or aircraft, or used for 
certain research, development or testing, as provided by law.
    (d) Withdrawals free of tax. Persons liable for tax under paragraph 
(a) of this section, are relieved of the liability on spirits withdrawn 
from bonded premises free of tax under this part, at the time the 
spirits are withdrawn.
    (e) Withdrawn from customs custody without payment of tax. 26 U.S.C. 
5232(a) provides that when imported distilled spirits in bulk containers 
are withdrawn from customs custody and transferred to the bonded 
premises of a distilled spirits plant without payment of the tax imposed 
on imported distilled spirits by 26 U.S.C. 5001, the person operating 
the bonded premises of the distilled spirits plant to which spirits are 
transferred shall become liable for the tax on the spirits upon their 
release from customs custody, and the importer shall thereupon be 
relieved of liability for the tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1318, as amended (26 U.S.C. 5005); 
sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232); sec. 
3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))



Sec.  19.25  Time for tax determination.

    Except as otherwise provided in this part, the tax on spirits shall 
be determined when the spirits are withdrawn from bond. The tax on 
spirits which are to be withdrawn from bonded premises shall be 
determined upon completion of the gauge for determination of tax and 
before withdrawal from bonded premises.

(Sec. 201, Pub. L. 85-859, 72 Stat 1320, as amended (26 U.S.C. 5006))



Sec.  19.26  Tax on wine.

    (a) Imposition of tax. A tax is imposed by 26 U.S.C. 5041 or 7652 on 
wine (including imitation, substandard, or artificial wine, and 
compounds sold as wine) produced in or imported or brought into the 
United States. Proprietors of distilled spirits plants may become liable 
for wine taxes under 26 U.S.C. 5362(b)(3) in connection with wine 
transferred in bond to a distilled spirits plant. Wine may not be 
removed from the bonded premises of a distilled spirits plant for 
consumption or sale as wine.
    (b) Liability for tax. Except as otherwise provided by law, the 
liability for tax on wine transferred in bond from a bonded wine cellar 
to a distilled spirits plant, or transferred in bond between distilled 
spirits plants, will continue until the wine is used in a distilled 
spirits product.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended, 1380, as amended 
(26 U.S.C. 5041, 5362))

[T.D. ATF-297, 55 FR 18062, Apr. 30, 1990; 55 FR 23634, June 11, 1990]

                               Assessments



Sec.  19.31  Production not accounted for.

    Where the appropriate TTB officer finds that a distiller has not 
accounted for all spirits produced by him, assessment shall be made for 
the tax on the

[[Page 363]]

difference between the quantity reported and the quantity found to have 
been actually produced.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1320, as amended (26 U.S.C. 5006))



Sec.  19.32  Assessment of tax on spirits, denatured spirits, or wines in bond which are lost, destroyed or removed without authorization.

    When spirits, denatured spirits, or wines in bond are lost or 
destroyed (except spirits, denatured spirits, or wines on which the tax 
is not collectible by reason of the provisions of 26 U.S.C. 5008 (a) or 
(d) or 26 U.S.C. 5370, as applicable) and the proprietor or other person 
liable for the tax on the spirits, denatured spirits, or wines fails to 
file a claim for remission as provided in Sec.  19.41(a) or when the 
claim is denied, the tax shall be assessed. In any case where spirits, 
denatured spirits, or wines in bond are removed from bonded premises 
other than as authorized by law, the tax shall be assessed. In the case 
of losses under circumstances described in 26 U.S.C. 5006(b) with 
respect to packages of spirits or denatured spirits on bonded premises, 
the tax shall be assessed if the tax is not paid upon the demand of the 
appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1320, as amended, 1323, as amended, 
1381, as amended (26 U.S.C. 5006, 5008, 5370))

                           Effective Tax Rates

    Source: Sections 19.34 through 19.38 added by T.D. ATF-297, 55 FR 
18062, Apr. 30, 1990, unless otherwise noted.



Sec.  19.34  Computation of effective tax rate.

    (a) The proprietor shall compute the effective tax rate for 
distilled spirits containing eligible wine or eligible flavors as the 
ratio of the numerator and denominator as follows:
    (1) The numerator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product 
(exclusive of distilled spirits derived from eligible flavors), 
multiplied by the tax rate prescribed by 26 U.S.C. 5001;
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by the tax rate prescribed by 26 U.S.C. 5041(b)(1), (2), or 
(3), which would be imposed on the wine but for its removal to bonded 
premises; and
    (iii) The proof gallons of all distilled spirits derived from 
eligible flavors used in the product, multiplied by the tax rate 
prescribed by 26 U.S.C. 5001, but only to the extent that such distilled 
spirits exceed 2\1/2\% of the denominator prescribed in paragraph (a)(2) 
of this section.
    (2) The denominator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product, 
including distilled spirits derived from eligible flavors; and
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by twice the percentage of alcohol by volume of each, divided 
by 100.
    (b) In determining the effective tax rate, quantities of distilled 
spirits, eligible wine, and eligible flavors will be expressed to the 
nearest tenth of a proof gallon. The effective tax rate may be rounded 
to as many decimal places as the proprietor deems appropriate, provided 
that, such rate is expressed no less exactly than the rate rounded to 
the nearest whole cent, and the effective tax rates for all products 
will be consistently expressed to the same number of decimal places. In 
such case, if the number is less than five it will be dropped; if it is 
five or over, a unit will be added.
    (c) The following is an example of the use of the formula.

                              BATCH RECORD
 
Distilled spirits.........................  2249.1 proof gallons.
Eligible wine (14% alcohol by volume).....  2265.0 wine gallons.
Eligible wine (19% alcohol by volume).....  1020.0 wine gallons.
Eligible flavors..........................  100.9 proof gallons.
 


[[Page 364]]

[GRAPHIC] [TIFF OMITTED] TR25SE06.010

    \1\ Proof gallons by which distilled spirits derived from eligible 
flavors exceed 2\1/2\%) of the total proof gallons in the batch (100.9-
(2\1/2\%)x3,371.8=16.6).

(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18062, Apr. 30, 1990, as amended by T.D. ATF-307, 
52736, Dec. 21, 1990]



Sec.  19.35  Application of effective tax rate (Actual).

    Any proprietor who does not apply effective tax rates to taxable 
removals in accordance with Sec. Sec.  19.36, 19.37 or 19.38 shall 
establish an effective tax rate for each batch of distilled spirits in 
the processing account on which credit against tax is desired for 
alcohol derived from eligible wine or eligible flavors. The effective 
tax rate will be computed in accordance with Sec.  19.34 and will be 
recorded on the dump or batch record for the product, as required by 
Sec.  19.748. The serial numbers of the cases removed at such rate shall 
be recorded on the record of tax determination prescribed in Sec.  
19.761 or other related record available for examination by any 
appropriate TTB officer.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); Sec. 201, Pub. 
L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec 6, Pub. L. 
96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))



Sec.  19.36  Standard effective tax rate.

    (a) The proprietor may establish a permanent standard effective tax 
rate for any eligible distilled spirits product based on the least 
quantity and the lowest alcohol content of eligible wine or eligible 
flavors used in the manufacture of the product. The permanent standard 
effective tax rate must equal the highest tax rate applicable to the 
product. The proprietor shall maintain a permanent record of the 
standard effective tax rate established for each product in accordance 
with Sec.  19.765. Whenever the proprietor manufactures a batch of the 
product with a lesser quantity or lower alcohol content of eligible wine 
or eligible flavor, he shall keep the cased goods segregated from other 
completed cases of the same product and shall tax determine the product 
in accordance with Sec.  19.35.
    (b) If the appropriate TTB officer finds that the use of this 
procedure jeopardizes the revenue or causes administrative difficulty, 
the proprietor shall discontinue the use of the procedure.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); Sec. 201, Pub. 
L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 
96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))



Sec.  19.37  Average effective tax rate.

    (a) The proprietor may establish an average effective tax rate for 
any eligible distilled spirits product based on the total proof gallons 
in all batches of the same composition which have been produced during 
the preceding 6-month period and which have been or will be bottled or 
packaged, in whole or in part, for domestic consumption. At the 
beginning of each month, the proprietor shall recompute the average 
effective tax rate so as to include only the immediately preceding 6-
month period. The average effective tax rate established for a product 
will be shown in the record of average effective tax rates prescribed in 
Sec.  19.763.

[[Page 365]]

    (b) If the appropriate TTB officer finds that the use of this 
procedure jeopardizes the revenue or causes administrative difficulty, 
the proprietor shall discontinue the use of this procedure.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); Sec. 201, Pub. 
L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 
96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))



Sec.  19.38  Inventory reserve account.

    (a) The proprietor may establish an inventory reserve account for 
any eligible distilled spirits product by maintaining an inventory 
reserve record as prescribed by 19.764. The effective tax rate applied 
to each removal or other disposition will be the effective tax rate 
recorded on the inventory reserve record from which the removal or other 
disposition is depleted.
    (b) If the appropriate TTB officer finds that the use of this 
procedure jeopardizes the revenue or causes administrative difficulty, 
the proprietor shall discontinue the use of this procedure.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); Sec. 201, Pub. 
L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 
96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

                                 Claims



Sec.  19.41  Claims on spirits, denatured spirits, articles, or wines lost or destroyed in bond.

    (a) Claims for remission. All claims for remission of tax required 
by this part, relating to the destruction or loss of spirits, denatured 
spirits, articles, or wines in bond, shall be filed with the appropriate 
TTB officer and shall set forth the following:
    (1) Identification (including serial numbers if any) and location of 
the container or containers from which the spirits, denatured spirits, 
articles, or wines were lost, or removed for destruction;
    (2) Quantity of spirits, denatured spirits, articles, or wines lost 
or destroyed from each container, and the total quantity of spirits or 
wines covered by the claim;
    (3) Total amount of tax for which the claim is filed;
    (4) Name, number, and address of the plant from which withdrawn 
without payment of tax or removed for transfer in bond (if claim 
involves spirits so withdrawn or removed or if claim involves wines 
transferred in bond) and date and purpose of such withdrawal or removal, 
except that in the case of imported spirits lost or destroyed while 
being transferred from customs custody to TTB bond as provided in Sec.  
19.481, the name of the customs warehouse, if any, and port of entry 
will be given instead of the plant name, number, and address;
    (5) Date of the loss or destruction (or, if not known, date of 
discovery), the cause or nature thereof, and all the facts relative 
thereto;
    (6) Name of the carrier, where a loss in transit is involved;
    (7) The name and address of the consignee, in the case of spirits 
withdrawn without payment of tax which are lost before being used for 
research, development or testing;
    (8) If lost by theft, facts establishing that the loss did not occur 
as the result of any negligence, connivance, collusion or fraud on the 
part of the proprietor of the plant, owner, consignor, consignee, 
bailee, or carrier, or the employees or agents of any of them;
    (9) In the case of a loss by theft, whether the claimant is 
indemnified or recompensed for the spirits or wines lost and if so, the 
amount and nature of indemnity or recompense and the actual value of the 
spirits or wines, less the tax.
    (b) Claims for abatement, credit or refund. Claims for abatement of 
an assessment, or for credit or refund of tax which has been paid or 
determined, for spirits, denatured spirits, articles, or wines lost or 
destroyed in bond shall be filed with the appropriate TTB officer. The 
claims shall set forth the information required under paragraph (a) of 
this section and, in addition, shall set forth--
    (1) The date of assessment or payment (or of tax determination, if 
the tax has not been assessed or paid) of the tax for which abatement, 
credit or refund is claimed, and
    (2) The name, plant number, and the address of the plant where the 
tax was determined, paid, or assessed (or name,

[[Page 366]]

address and capacity of any other person who paid or was assessed the 
tax, if the tax was not paid by or assessed against a proprietor).
    (c) Supporting document. (1) Claims under paragraphs (a) and (b) of 
this section shall be supported (whenever possible) by affidavits of 
persons having personal knowledge of the loss or destruction. For claims 
on spirits, denatured spirits, articles, or wines lost while being 
transferred by carrier, the claim shall be supported by a copy of the 
bill of lading.
    (2) For claims pertaining to losses of spirits withdrawn without 
payment of tax and lost prior to being used for research, development or 
testing, the claim shall be supported by a copy of the proprietor's 
sample record prescribed in subpart W of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended 
(26 U.S.C. 5008, 5370))



Sec.  19.42  Claims on spirits returned to bonded premises.

    (a) Claims for credit or refund of tax on spirits which have been 
withdrawn from bonded premises on payment or determination of tax and 
which are returned under 26 U.S.C. 5215 shall be filed with the 
appropriate TTB officer and shall set forth the following:
    (1) Quantity of spirits so returned;
    (2) Amount of tax for which the claim is filed;
    (3) Name, address, and plant number of the plant to which the 
spirits were returned and the date of the return;
    (4) The purpose for which returned; and
    (5) The serial number of the gauge record on which the spirits were 
returned.
    (b) If the alcoholic content of the spirits contain at least 92 
percent Puerto Rican or Virgin Islands rum, or if the spirits contain 
rum imported from any area other than Puerto Rico and the Virgin 
Islands, the claim shall show:
    (1) Proof gallons of the finished product derived from Puerto Rican 
or Virgin Islands spirits, or derived from rum imported from any other 
area; and
    (2) The amount of tax imposed by 26 U.S.C. 7652 or 26 U.S.C. 5001, 
determined at the time of withdrawal from bond, on the Puerto Rican or 
Virgin Islands spirits, or on the rum imported from any other area, 
contained in the product.
    (c) Claims for credit or refund of tax on spirits containing 
eligible wine or eligible flavors must set forth the date and serial 
number of the record of tax determination and the effective tax rate at 
which the tax was paid or determined. If this information is not 
provided, the amount of tax claimed will be based on the lowest 
effective tax rate applied to the product.
    (d) Claims for credit or refund of tax shall be filed by the 
proprietor of the plant to which the spirits were returned within six 
months of the date of the return. No interest is allowed on any claims 
for refund or credit.

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-233, 51 
FR 28077, Aug. 5, 1986; T.D. ATF-297, 55 FR 18063, Apr. 30, 1990]



Sec.  19.43  Claims relating to spirits lost after tax determination.

    Claims for abatement, credit, or refund of tax under this part, 
relating to losses of spirits occurring on bonded premises after tax 
determination but prior to physical removal from such premises, shall be 
prepared and filed as provided in, and contain the information called 
for under Sec.  19.41(b) and be supported by documents as provided under 
Sec.  19.41(c).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))



Sec.  19.44  Execution of claims and supporting documents.

    All claims filed under this part shall be filed on Form 2635 
(5620.8). Claims for abatement, remission, credit, or refund shall (a) 
show the name, address, and capacity of the claimant, (b) be signed by 
the claimant or his duly authorized agent, and (c) be executed under the 
penalties of perjury as provided in Sec.  19.100. Supporting documents 
required by this part to be submitted with a claim shall be attached to 
the claim and shall be deemed to be a part thereof. The appropriate TTB 
officer officer may require the submission of additional evidence in 
support of any claim filed under this part when

[[Page 367]]

deemed necessary for proper action on the claim.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008); 
sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5215))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985; T.D. 
ATF-251, 52 FR 19313, May 22, 1987]



Sec.  19.45  Claims for credit of tax.

    Claims for credit of tax, as provided in this part, may be filed 
after determination of the tax whether or not the tax has been paid. The 
claimant may not anticipate allowance of a credit or make an adjusting 
entry in a tax return pending action on the claim.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008); 
sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5215))



Sec.  19.46  Adjustments for credited tax.

    When notification of allowance of credit is received from the 
appropriate TTB officer, including notification of credit for tax on 
spirits exported with benefit of drawback as provided in 27 CFR part 28, 
the claimant shall make an adjusting entry and explanatory statement 
(specifically identifying the notification of allowance of credit) in 
the next excise tax return (or returns) to the extent necessary to 
exhaust the credit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1336, as amended 
(26 U.S.C. 5008, 5062))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-219, 50 
FR 51387, Dec. 17, 1985; T.D. TTB-8, 69 FR 3829, Jan. 27, 2004]



                 Subpart Ca_Special (Occupational) Taxes

    Source: T.D. ATF-271, 53 FR 17541, May 17, 1988, unless otherwise 
noted.



Sec.  19.49  Liability for special tax.

    (a) Proprietor of distilled spirits plant--(1) General. Except as 
provided in Sec.  19.906, every proprietor of a distilled spirits plant 
shall pay a special (occupational) tax at a rate specified by Sec.  
19.50. The tax shall be paid on or before the date of commencing 
business as a distilled spirits plant proprietor, and thereafter every 
year on or before July 1. On commencing business, the tax shall be 
computed from the first day of the month in which liability is incurred, 
through the following June 30. Thereafter, the tax shall be computed for 
the entire year (July 1 through June 30).
    (2) Transition rule. For purposes of paragraph (a)(1) of this 
section, a proprietor engaged in distilled spirits plant operations on 
January 1, 1988, shall be treated as having commenced business on that 
date. The special tax imposed by this transition rule shall cover the 
period January 1, 1988, through June 30, 1988, and shall be paid on or 
before April 1, 1988.
    (3) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a)(1) of this 
section is zero. However, each proprietor still must register by filing 
the special tax return on Form 5630.5 during this suspension period even 
though the amount of tax due is zero. During the suspension period, as 
at other times, the special tax return is due on or before commencement 
of business and on or before July 1 of each year thereafter.
    (b) Liquor Dealer--(1) General. A proprietor of a distilled spirits 
plant shall be subject to or exempt from a liquor dealer's special 
(occupational) tax as provided in part 31 of this chapter.
    (2) Exemption for sales by a proprietor of a distilled spirits 
plant. A proprietor of a distilled spirits plant is not required to pay 
special tax, or to register during the suspension period described in 
paragraph (a)(3) of this section, as a wholesale or retail dealer in 
liquor because of sales, at the principal place of business or at the 
distilled spirits plant, of liquor which at the time of sale is stored 
at the distilled spirits plant or which had been removed and stored in a 
taxpaid storeroom operated in connection with the distilled spirits 
plant. Each proprietor of a distilled spirits plant shall have only one 
exemption from dealer's special tax, or from dealer's registration, for 
each distilled spirits plant. The distiller may designate, in writing to 
the appropriate TTB officer, that the principal place of business will 
be exempt from dealer's special tax or registration; otherwise, the 
exemption will apply to the distilled spirits plant.

[[Page 368]]

    (c) Each place of business taxable--(1) General. A proprietor of a 
distilled spirits plant incurs special tax liability, or an obligation 
to register during the suspension period described in paragraph (a)(3) 
of this section, at each place of business in which an occupation 
subject to special tax is conducted. A place of business means the 
entire office, plant or area of the business in any one location under 
the same proprietorship. Passageways, streets, highways, rail crossings, 
waterways, or partitions dividing the premises are not sufficient 
separation to require additional special tax, if the divisions of the 
premises are otherwise contiguous.
    (2) Exception for contiguous areas. A proprietor of a distilled 
spirits plant does not incur additional special tax liability, or an 
obligation to register during the suspension period described in 
paragraph (a)(3) of this section, for sales of liquor made at a location 
other than on distilled spirits plant premises described on the notice 
of registration, Form 5110.41, if the location where such sales are made 
is contiguous to the distilled spirits plant premises in the manner 
described in paragraph (c)(1) of this section.

(26 U.S.C. 5081, 5111, 5113, 5142, 5143)

[T.D. ATF-271, 53 FR 17541, May 17, 1988, as amended by T.D. ATF-285, 54 
FR 12609, Mar. 28, 1989; T.D. TTB-25, 70 FR 19882, Apr. 15, 2005; T.D. 
TTB-36, 70 FR 62242, Oct. 31, 2005]]



Sec.  19.50  Rates of special tax.

    (a) General. Title 26 U.S.C. 5081(a)(1) imposes a special tax of 
$1,000 per year on every proprietor of a distilled spirits plant. 
However, under 26 U.S.C. 5148(a) the tax rate is zero during the 
suspension period described in Sec.  19.49(a)(3).
    (b) Reduced rate for small proprietors. Except during the suspension 
period described in Sec.  19.49(a)(3) when the tax rate is zero, title 
26 U.S.C. 5081(b) provides for a reduced rate of $500 per year with 
respect to any distilled spirits plant proprietor whose gross receipts 
(for the most recent taxable year ending before the first day of the 
taxable period to which the special tax imposed by Sec.  19.49 relates) 
are less than $500,000. The ``taxable year'' to be used for determining 
gross receipts is the taxpayer's income tax year. All gross receipts of 
the taxpayer shall be included, not just the gross receipts of the 
business subject to special tax. Proprietors of new businesses that have 
not yet begun a taxable year, as well as proprietors of existing 
businesses that have not yet ended a taxable year, who commence a new 
activity subject to special tax, qualify for the reduced special 
(occupational) tax rate, unless the business is a member of a 
``controlled group''; in that case, the rules of paragraph (c) of this 
section shall apply.
    (c) Controlled group. All persons treated as one taxpayer under 26 
U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of 
determining gross receipts under paragraph (b) of this section. 
``Controlled group'' means a controlled group of corporations, as 
defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-
1 through 1.1563-4, except that the words ``at least 80 percent'' shall 
be replaced by the words ``more than 50 percent'' in each place they 
appear in subsection (a) of 26 U.S.C. 1563, as well as in the 
implementing regulations. Also, the rules for a ``controlled group of 
corporations'' apply in a similar fashion to groups which include 
partnerships and/or sole proprietorships. If one entity maintains more 
than 50% control over a group consisting of corporations and one, or 
more, partnerships and/or sole proprietorships, all of the members of 
the controlled group are one taxpayer for the purpose of this section.
    (d) Short taxable year. Gross receipts for any taxable year of less 
than 12 months shall be annualized by multiplying the gross receipts for 
the short period by 12 and dividing the result by the number of months 
in the short period, as required by 26 U.S.C. 448(c)(3).
    (e) Returns and allowances. Gross receipts for any taxable year 
shall be reduced by returns and allowances made during that year under 
26 U.S.C. 448(c)(3).

(26 U.S.C. 448, 5061, 5081)

[T.D. ATF-271, 53 FR 17541, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62243, Oct. 31, 2005]

[[Page 369]]



Sec.  19.51  Special tax returns.

    (a) General. Special tax shall be paid by return, and the filing of 
a return is required for registration purposes even though no tax is due 
during the suspension period described in Sec.  19.49(a)(3). The 
prescribed return is Form 5630.5, Special Tax Registration and Return. 
Special tax returns, with payment of applicable tax, shall be filed in 
accordance with instructions on the form.
    (b) Preparation of TTB Form 5630.5. All of the information called 
for on Form 5630.5 shall be provided, including:
    (1) The true name of the taxpayer.
    (2) The trade name(s) (if any) of the business(es) subject to 
special tax.
    (3) The employer identification number (see Sec.  19.52).
    (4) The exact location of the place of business, by name and number 
of building or street, or if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown shall be the taxpayer's 
principal place of business (or principal office, in the case of a 
corporate taxpayer).
    (5) The class(es) of special tax to which the taxpayer is subject or 
to which the return relates during the suspension period described in 
Sec.  19.49(a)(3).
    (6) Ownership and control information: that is, the name, position, 
and residence address of every owner of the business and of every person 
having power to control its management and policies with respect to the 
activity subject to special tax. ``Owner of the business'' shall include 
every partner, if the taxpayer is a partnership, and every person owning 
10% or more of its stock, if the taxpayer is a corporation. However, the 
ownership and control information required by this paragraph need not be 
stated if the same information has been previously provided to TTB in 
connection with a permit application, and if the information previously 
provided is still current.
    (c) Multiple locations and/or classes of tax. A taxpayer subject to 
special tax, or required to register during the suspension period 
described in Sec.  19.49(a)(3), for the same period at more than one 
location or for more than one class of tax shall--
    (1) File one special tax return, Form 5630.5, with payment of 
applicable tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on Form 5630.5), employer identification number, 
and period covered by the return. The list shall show, by States, the 
name, address, and tax class of each location for which special tax is 
being paid, or for which registration is being made during the 
suspension period described in Sec.  19.49(a)(3). The original of the 
list shall be filed in accordance with instructions on the return, and 
the copy shall be retained at the taxpayer's principal place of business 
(or principal office, in the case of a corporate taxpayer) for the 
period specified in Sec.  19.723(c).
    (d) Signing of TTB Forms 5630.5--(1) Ordinary returns. The return of 
an individual proprietor shall be signed by the individual. The return 
of a partnership shall be signed by a general partner. The return of a 
corporation shall be signed by any officer. In each case, the person 
signing the return shall designate his or her capacity as ``individual 
owner,'' ``member of firm,'' or, in the case of a corporation, the title 
of the officer.
    (2) Fiduciaries. Receivers, trustees, assignees, executors, 
administrators, and other legal representatives who continue the 
business of a bankrupt, insolvent, deceased person, etc., shall indicate 
the fiduciary capacity in which they act.
    (3) Agent or attorney in fact. If a return is signed by an agent or 
attorney in fact, the signature shall be preceded by the name of the 
principal and followed by the title of the agent or attorney in fact. A 
return signed by a person as agent will not be accepted unless there is 
filed, with the TTB office with which the return is required to be 
filed, a power of attorney authorizing the agent to perform the act.
    (4) Perjury statement. TTB Forms 5630.5 shall contain or be verified 
by a written declaration that the return has

[[Page 370]]

been executed under the penalties of perjury.

(26 U.S.C. 6061, 6065, 6151, 7011)

[T.D. ATF-271, 53 FR 17541, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62243, Oct. 31, 2005]



Sec.  19.52  Employer identification number.

    (a) Requirement. The employer identification number (defined in 26 
CFR 301.7701-12) of the taxpayer who has been assigned such a number 
shall be shown on each special tax return, including amended returns, 
filed under this subpart. Failure of the taxpayer to include the 
employer identification number may result in the imposition of the 
penalty specified in Sec.  70.113 of this chapter.
    (b) Application for employer identification number. Each taxpayer 
who files a special tax return, who has not already been assigned an 
employer identification number, shall file IRS Form SS-4 to apply for 
one. The taxpayer shall apply for and be assigned only one employer 
identification number, regardless of the number of places of business 
for which the taxpayer is required to file a special tax return. The 
employer identification number shall be applied for no later than 7 days 
after the filing of the taxpayer's first special tax return. IRS Form 
SS-4 may be obtained from the director of an IRS service center or from 
any IRS district director.
    (c) Preparation and filing of IRS Form SS-4. The taxpayer shall 
prepare and file IRS Form SS-4, together with any supplementary 
statement, in accordance with the instructions on the form or issued in 
respect to it.

(26 U.S.C. 6109)

[T.D. ATF-271, 53 FR 17541, May 17, 1988, as amended by T.D. ATF-301, 55 
FR 47605, Nov. 14, 1990]

                           Special Tax Stamps



Sec.  19.53  Issuance, distribution, and examination of special tax stamps.

    (a) Issuance of special tax stamps--(1) General. Except as otherwise 
provided in paragraph (a)(2) of this section, upon filing a properly 
executed return on Form 5630.5, together with the applicable full 
remittance, the taxpayer will be issued an appropriately designated 
special tax stamp. If the return covers multiple locations, the taxpayer 
will be issued one appropriately designated stamp for each location 
listed on the attachment required by Sec.  19.51(c), but showing, as to 
name and address, only the name of the taxpayer and the address of the 
taxpayer's principal place of business (or principal office in the case 
of a corporate taxpayer).
    (2) Exception for suspension period. During the suspension period 
described in Sec.  19.49(a)(3) when registration is required but no tax 
is due, a special tax stamp will not be issued.
    (b) Distribution of special tax stamps for multiple locations. On 
receipt of the special tax stamps, the taxpayer shall verify that there 
is one stamp for each location listed on the attachment to TTB Form 
5630.5. The taxpayer shall designate one stamp for each location and 
shall type on each stamp the address of the business conducted at the 
location for which that stamp is designated. The taxpayer shall then 
forward each stamp to the place of business designated on the stamp.
    (c) Examination of special tax stamps. All stamps denoting payment 
of special tax shall be kept available for inspection by appropriate TTB 
officers, at the location for which designated, during business hours.

(26 U.S.C. 5146, 6806)

[T.D. ATF-271, 53 FR 17541, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62243, Oct. 31, 2005]



Sec.  19.54  Changes in special tax stamps.

    (a) Change in name. If there is a change in the corporate or firm 
name, or in the trade name, as shown on Form 5630.5, the proprietor 
shall file an amended special tax return as soon as practicable after 
the change, covering the new corporate or firm name, or trade name. No 
new special tax is required to be paid. The proprietor shall attach the 
special tax stamp for endorsement of the change in name except if the 
change occurs during the suspension period described in Sec.  
19.49(a)(3).
    (b) Change in proprietorship--(1) General. If there is a change in 
the proprietorship of a distilled spirits plant, the successor shall 
file a new special tax

[[Page 371]]

return, pay a new special tax, and obtain the required special tax 
stamps. However, if the change in proprietorship occurs during the 
suspension period described in Sec.  19.49(a)(3) when no tax is due and 
no stamp is issued, only the filing of a new special tax return is 
required.
    (2) Exemption for certain successors. Persons having the right of 
succession provided for in paragraph (c) of this section may carry on 
the business for the remainder of the period for which the special tax 
was paid (or for which registration was made during the suspension 
period described in Sec.  19.49(a)(3)), without paying a new special 
tax, if within 30 days after the date on which the successor begins to 
carry on the business, the successor files a special tax return on Form 
5630.5, which shows the basis of succession. Except during the 
suspension period described in Sec.  19.49(a)(3), a person who is a 
successor to a business for which special tax has been paid and who 
fails to register the succession is liable for special tax computed from 
the first day of the calendar month in which he or she began to carry on 
the business. During the suspension period, a failure to register the 
succession may result in a penalty under 26 U.S.C. 5603(b).
    (c) Persons having right of succession. Under the conditions 
indicated in paragraph (b)(2) of this section, the right of succession 
will pass to certain persons in the following cases:
    (1) Death. The widowed spouse or child, or executor, administrator, 
or other legal representative of the taxpayer;
    (2) Succession of spouse. A husband or wife succeeding to the 
business of his or her spouse (living);
    (3) Insolvency. A receiver or trustee in bankruptcy, or an assignee 
for benefit of creditors;
    (4) Withdrawal from firm. The partner or partners remaining after 
death or withdrawal of a member.
    (d) Change in location. (1) Subject to paragraph (d)(2) of this 
section, if there is a change in location of a taxable place of 
business, the proprietor shall, within 30 days after the change, file an 
amended special tax return covering the new location. The proprietor 
shall attach the special tax stamp or stamps, for endorsement of the 
change in location. No new special tax is required to be paid. However, 
if the proprietor does not file the amended return within 30 days, the 
proprietor is required to file a new special tax return, pay a new 
special tax, and obtain a new special tax stamp.
    (2) If the change in location occurs during the suspension period 
described in Sec.  19.49(a)(3) when no tax is due and no special tax 
stamp is issued, the requirements of paragraph (d)(1) of this section 
still apply, except with regard to attachment of a special tax stamp and 
payment of a new special tax. During the suspension period, a failure to 
comply with paragraph (d)(1) of this section may result in a penalty 
under 26 U.S.C. 5603(b).

(26 U.S.C. 5143, 7011)

[T.D. ATF-271, 53 FR 17541, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62243, Oct. 31, 2005]



          Subpart D_Administrative and Miscellaneous Provisions

                   Activities Not Subject to This Part



Sec.  19.57  Recovery and reuse of denatured spirits in manufacturing processes.

    The following persons are not, by reason of the activities listed 
below, subject to the provisions of this part, but they shall comply 
with the provisions of part 20 of this chapter relating to the use and 
recovery of spirits or denatured spirits:
    (a) Manufacturers who use denatured spirits, or articles or 
substances containing denatured spirits, in a process wherein any part 
or all of the spirits, including denatured spirits, are recovered.
    (b) Manufacturers who use denatured spirits in the production of 
chemicals which do not contain spirits but which are used on the permit 
premises in the manufacture of other chemicals resulting in spirits as a 
by-product.
    (c) Manufacturers who use chemicals or substances which do not 
contain spirits or denatured spirits (but which

[[Page 372]]

were manufactured with specially denatured spirits) in a process 
resulting in spirits as a by-product.

(Sec 201, Pub. L. 85-859, 72 Stat. 1372, as amended (26 U.S.C. 5273))

[T.D. ATF-379, 61 FR 31425, June 20, 1996]



Sec.  19.58  Use of taxpaid distilled spirits to manufacture products unfit for beverage use.

    (a) General. Apothecaries, pharmacists, and manufacturers are not 
required to qualify as processors under 26 U.S.C. 5171 before 
manufacturing or compounding the following products, if the tax has been 
paid or determined on all of the distilled spirits contained therein:
    (1) Medicines, medicinal preparations, food products, flavors, 
flavoring extracts, and perfume, conforming to the standards for 
approval of nonbeverage drawback products found in Sec. Sec.  17.131-
17.137 of this chapter, whether or not drawback is actually claimed on 
those products. Except as provided in paragraph (c) of this section, a 
formula need not be submitted if drawback is not desired.
    (2) Patented, patent, and proprietary medicines that are unfit for 
use for beverage purposes.
    (3) Toilet, medicinal, and antiseptic preparations and solutions 
that are unfit for use for beverage purposes.
    (4) Laboratory reagents, stains, and dyes that are unfit for use for 
beverage purposes.
    (5) Flavoring extracts, syrups, and concentrates that are unfit for 
use for beverage purposes.
    (b) Exceptions; products classed as beverages. Products specified 
under part 17 of this chapter as being fit for beverage use are 
alcoholic beverages. Bitters, patent medicines, and similar alcoholic 
preparations which are fit for beverage purposes, although held out as 
having certain medicinal properties, are also alcoholic beverages. Such 
products are required to be manufactured on the bonded premises of a 
distilled spirits plant, and are subject to the provisions of this part.
    (c) Formulas and samples; when required. On request of the 
appropriate TTB officer, or when in doubt as to the classification of a 
product, the manufacturer shall submit to the appropriate TTB officer 
the formula for and a sample of the product for examination to verify 
the manufacturer's claim of exemption from qualification requirements.
    (d) Change of formula; when required. If the appropriate TTB officer 
finds at any time that any product manufactured under paragraph (a) of 
this section is being used for beverage purposes, or for mixing with 
beverage spirits other than by a processor, he or she shall notify the 
manufacturer to desist from manufacturing the product until the formula 
is changed to make the product not susceptible of beverage use and the 
change is approved by the appropriate TTB officer. (However, the 
provisions of this paragraph shall not prohibit such products, which are 
unfit for beverage use, from being used in small quantities for 
flavoring drinks at the time of serving for immediate consumption.) 
Where, pursuant to notice, the manufacturer does not desist, or the 
formula is not so modified as to make the product unsusceptible of 
beverage use, the manufacturer shall immediately qualify as a processor.

(Sec. 805, Pub. L. 96-39, 93 Stat. 275, 278 (26 U.S.C. 5002, 5171))

[T.D. ATF-379, 61 FR 31425, June 20, 1996]



Sec.  19.61  Form prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information required by each form 
shall be furnished, as indicated by the headings on the form and the 
instructions thereon or issued in respect thereto, and as required by 
this part.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. 372, 61 FR 
20724, May 8, 1996; T.D. TTB-44, 71 FR 16929, Apr. 4, 2006]

[[Page 373]]



Sec.  19.62  Alternate methods or procedures.

    The proprietor, on specific approval by the appropriate TTB officer 
as provided in this paragraph, may use an alternate method or procedure 
in lieu of a method or procedure specifically prescribed in this part. 
The appropriate TTB officer may approve an alternate method or 
procedure, subject to stated conditions, when he finds that--
    (a) Good cause has been shown for the use of the alternate method or 
procedure;
    (b) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescibed 
method or procedure, and affords equivalent security to the revenue; and
    (c) The alternate method or procedure will not be contrary to any 
provision of law, and will not result in an increase in cost to the 
Government or hinder the effective administration of this part. No 
alternate method or procedure relating to the giving of any bond or to 
the assessment, payment, or collection of tax, shall be authorized under 
this paragraph. Where the proprietor desires to employ an alternate 
method or procedure, he shall submit a written application to do so to 
the appropriate TTB officer. The application shall specifically describe 
the proposed alternate method or procedure, and shall set forth the 
reasons therefor. Alternate methods or procedures shall not be employed 
until the application has been approved by the appropriate TTB officer. 
The proprietor shall, during the period of authorization of an alternate 
method or procedure, comply with the terms of the approved application. 
Authorization for any alternate method or procedure may be withdrawn 
whenever in the judgment of the appropriate TTB officer the revenue is 
jeopardized or the effective administration of this part is hindered by 
the continuation of such authorization. As used in this paragraph, 
alternate methods or procedures shall include alternate construction or 
equipment.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended, 1395, as amended 
(26 U.S.C. 5178, 5552))



Sec.  19.63  Pilot operations.

    The appropriate TTB officer may waive any regulatory provisions of 
26 U.S.C. Chapter 51, and of the regulations in this part, for temporary 
pilot or experimental operations for the purpose of facilitating the 
development and testing of improved methods of governmental supervision 
(necessary for the protection of the revenue) over plants. For this 
purpose, the appropriate TTB officer may, with the approval of the 
proprietor thereof, designate any plant for such operations. The 
provision of law and regulations waived and the period of time during 
which such waiver shall continue shall be stated in writing by the 
appropriate TTB officer. The provisions of this section shall not be 
construed as authority to waive the filing of any bond or the payment of 
any tax, including special (occupational) tax, provided for in 26 U.S.C. 
Chapter 51.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5554))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-271 53 
FR 17543, May 17, 1988]



Sec.  19.64  [Reserved]



Sec.  19.65  Experimental distilled spirits plants.

    The appropriate TTB officer may authorize the establishment and 
operation of experimental plants for specific and limited periods of 
time solely for experimentation in, or development of--
    (a) Sources of materials from which spirits may be produced;
    (b) Processes by which spirits may be produced or refined; or
    (c) Industrial uses of spirits.

The appropriate TTB officer may waive any provision of 26 U.S.C. Chapter 
51 (other than 26 U.S.C. 5312) and of this part (other than this section 
and Sec.  19.66) to the extent he deems necessary to effectuate the 
purposes of 26 U.S.C. 5312(b), except that he may not waive the payment 
of any tax on spirits removed from such plant. A proprietor of an 
experimental distilled spirits plant established under this section is 
subject to special (occupational) tax under subpart Ca of this part and 
shall hold a

[[Page 374]]

separate special tax stamp to cover the experimental operations.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5312))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-271 53 
FR 17543, May 17, 1988]



Sec.  19.66  Application to establish experimental plants.

    Any person desiring to establish an experimental plant shall make 
written application to the appropriate TTB officer and obtain approval 
of the proposed establishment. The applicant shall file with such 
application a bond in such form and penal sum as required by the 
appropriate TTB officer. The application shall state the nature, extent, 
and purpose of the operations to be conducted and describe the 
operations and equipment, the location of the plant (including the 
proximity to other premises or operations subject to the provisions of 
26 U.S.C. Chapter 51) and the security measures to be provided. The 
appropriate TTB officer may require the submission of additional 
information as he deems necessary. The appropriate TTB officer shall not 
permit operations until he has found that the plant conforms to the 
specifications set forth in the application, as approved, and the 
applicant has complied with provisions of 26 U.S.C. Chapter 51, and this 
part not specifically waived by the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5312))



Sec.  19.67  Spirits produced in industrial processes.

    (a) Applicability. (1) Persons who produce spirits in industrial 
processes (including spirits produced as a by-product in connection with 
chemical or other processes) are distillers and are required to qualify 
and pay special (occupational) tax under provisions of 26 U.S.C. Chapter 
51 and this part.
    (2) The appropriate TTB officer may, however, waive any provision of 
26 U.S.C. Chapter 51, or of this part, with respect to the production of 
nonpotable chemical mixtures containing spirits, including any provision 
relating to qualification (except the payment of special (occupational) 
tax), if such mixtures are produced:
    (i) For transfer to the bonded premises of a distilled spirits plant 
for completion of distilling; or
    (ii) As a by-product which would require expensive and complex 
equipment for the recovery of spirits.
    (3) The waiver under the provisions of paragraph (a)(2)(ii) of this 
section is further conditioned that such mixture would:
    (i) Be destroyed on the premises where produced; or
    (ii) Contain a minimum quantity of spirits practicable with the 
procedure employed, not be subjected to further operations solely for 
the purification or recovery of spirits, and be found by the appropriate 
TTB officer to be as nonpotable and at least as difficult with respect 
to recovery as completely denatured alcohol.
    (b) Application for waiver. (1) When the producer of nonpotable 
mixtures desires to secure a waiver of designated provisions of 26 
U.S.C. Chapter 51, or this part, he shall file an application with the 
appropriate TTB officer.
    (2) The application shall include, as applicable--
    (i) Name and address of producer;
    (ii) Chemical composition and source of the nonpotable mixture;
    (iii) Approximate percentages of chemicals and spirits in the 
mixture;
    (iv) Method of operation proposed;
    (v) Bonded premises where the mixture will be distilled; and
    (vi) Other pertinent information required by the appropriate TTB 
officer.
    (c) Approval. If the appropriate TTB officer finds that the waiver 
of the requirements, or any of them, will not jeopardize the revenue and 
will not unduly hinder supervision of the operations, he may approve the 
application under such terms and conditions as he deems advisable and 
subject to the furnishing of any bond which he deems necessary.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-271 53 
FR 17543, May 17, 1988]



Sec.  19.68  Other businesses.

    The appropriate TTB officer may authorize the carrying on of other 
businesses (not specifically prohibited by 26

[[Page 375]]

U.S.C. 5601(a)(6)) on premises of plants if he finds that those 
businesses will not jeopardize the revenue, hinder the effective 
administration of this part, or be contrary to law. The authorization 
will designate the premises (i.e., bonded or general) on which such 
other business is to be conducted.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.70  Exemptions to meet the requirements of National defense.

    The appropriate TTB officer may temporarily exempt proprietors from 
any provision of the internal revenue laws or this part relating to 
spirits except those requiring payment of tax thereon whenever in his 
judgement it is expedient to do so to meet the requirements of the 
National defense.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1397, as amended (26 U.S.C. 5561))



Sec.  19.71  Experimental or research operations by scientific institutions and colleges of learning.

    (a) General. The appropriate TTB officer may authorize any 
scientific university, college of learning, or institution of scientific 
research to produce, receive, blend, treat, test, and store spirits, 
without payment of tax, for experimental or research use but not for 
consumption (other than organoleptic tests) or sale, in quantities as 
may be reasonably necessary for such purposes. The appropriate TTB 
officer may waive any provision of 26 U.S.C. Chapter 51 (other than 26 
U.S.C. 5312), or this part (other than this section) to the extent 
necessary to effect the purposes of 26 U.S.C. 5312(a), except he may not 
waive the payment of any tax on distilled spirits removed from any 
university, college, or institution. A person conducting experimental or 
research operations authorized under this section is subject to special 
(occupational) tax under subpart Ca of this part and shall hold a 
special tax stamp to cover the experimental or research operations.
    (b) Qualification. Any university, college, or institution desiring 
to conduct any of the experimental or research operations listed in the 
preceding paragraphs shall make written application, to the appropriate 
TTB officer and obtain approval of the proposed operations. The 
applicant shall file with the application a bond in a form and penal sum 
as required by the appropriate TTB officer. The application shall state 
the nature, extent, and purpose of the operations to be conducted and 
describe the operations and equipment, the location at which operations 
will be conducted (including identification of the building or 
buildings, or the portions thereof to be used), and the security 
measures to be provided. The appropriate TTB officer may require any 
additional information. Operations shall not be commenced until 
authorized by the appropriate TTB officer.
    (c) Records. Reports concerning the operations need not be submitted 
unless required by the appropriate TTB officer, but records of the 
quantities of spirits produced, received, and used each day shall be 
made and retained for inspection by appropriate TTB officers.
    (d) Discontinuance of operations. When operations authorized by the 
appropriate TTB officer are discontinued, all remaining spirits shall be 
disposed of by destruction. When these spirits have been destroyed, 
notice of the discontinuance of operations shall be given to the 
appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5312))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-271, 53 
FR 17543, May 17, 1988]



Sec.  19.72  Other businesses.

    Application to conduct at a distilled spirits plant a type of 
business other than that of a distiller, warehouseman, or processor may 
be approved by the appropriate TTB officer if the appropriate TTB 
officer has, as provided in Sec.  19.68, authorized the carrying on of a 
business of the type proposed, unless the appropriate TTB officer finds 
that there are particular conditions in respect to the applicant's plant 
that would cause the carrying on of such business to be a jeopardy to 
the revenue or a hindrance to the effective administration of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))

[[Page 376]]



Sec.  19.73  Emergency variations from requirements.

    The appropriate TTB officer may approve construction, equipment, and 
methods of operation other than as specified in this part, where he 
finds that an emergency exists and the proposed variations from the 
specified requirements are necessary, and the proposed variations--
    (a) Will afford the security and protection to the revenue intended 
by the prescribed specifications;
    (b) Will not hinder the effective administration of this part; and
    (c) Will not be contrary to any provisions of law.

Variations from requirements granted under this paragraph are 
conditioned on compliance with the procedures, conditions, and 
limitations with respect thereto set forth in the approval of the 
application. Failure to comply in good faith with such procedures, 
conditions, and limitations shall automatically terminate the authority 
for such variations and the proprietor thereupon shall fully comply with 
the prescribed requirements of regulations from which the variations 
were authorized. Authority for any variation may be withdrawn whenever 
in the judgement of the appropriate TTB officer the revenue is 
jeopardized or the effective administration of this part is hindered by 
the continuation of such variation. Where the proprietor desires to 
employ such variation, he shall submit a written application to do so to 
the appropriate TTB officer. The application shall describe the proposed 
variations and set forth the reasons therefor. Variations shall not be 
employed until the application has been approved.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended, 1395, as amended 
(26 U.S.C. 5178, 5552))



Sec.  19.74  Disaster exemptions.

    The appropriate TTB officer may, whenever he finds that it is 
necessary or desirable, by reason of disaster, temporarily exempt the 
proprietor of any plant from any provisions of the internal revenue laws 
and this part relating to spirits, except those requiring the payment of 
tax on spirits, to the extent he may deem necessary or desirable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1397, as amended (26 U.S.C. 5562))



Sec.  19.75  Assignment of officers and supervision of operations.

    (a) General. The appropriate TTB officer may assign such number of 
TTB officers to distilled spirits plants and utilize controls (including 
the use of Government locks and seals) as necessary to maintain 
supervision of operations conducted at such plants. When supervision is 
necessary:
    (1) The appropriate TTB officer may require a proprietor to delay 
any distilled spirits operation so that it may be conducted in the 
presence of an appropriate TTB officer; and
    (2) The appropriate TTB officer may require the proprietor to submit 
a schedule of operations to an appropriate TTB officer.
    (b) Hours of operation. When operations at a distilled spirits plant 
are to be conducted in the presence of an appropriate TTB officer, such 
operations: (1) Shall not be conducted on Sunday unless specifically 
authorized by the appropriate TTB officer in each instance on the 
showing of an emergency; and (2) Shall be conducted during an 8-hour 
period between 7 a.m. and 5 p.m. unless, pursuant to the proprietor's 
application the appropriate TTB officer authorizes the performance and 
supervision of operations during other hours. The appropriate TTB 
officer, in administering this provision, shall not restrict such 
operation or function to a greater extent than did the provisions of 
internal revenue law and regulations on June 30, 1959.
    (c) Notification of supervision. (1) When it is determined that 
supervision of plant operations is necessary, the appropriate TTB 
officer shall notify the proprietor of the extent of TTB supervision.
    (2) If supervision of a distilled spirits plant was not terminated 
as of December 31, 1979, notification is not necessary for continued 
supervision.
    (d) Withdrawal of supervision. The appropriate TTB officer shall 
notify the

[[Page 377]]

proprietor when TTB supervision of plant operations is to be withdrawn.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5553); 
sec. 806, Pub. L. 96-39, 93 Stat. 279 (26 U.S.C. 5201, 5202))



Sec.  19.76  Allowance of remission, abatement, credit or refund of tax.

    The appropriate TTB officer is authorized to allow claims for 
remission, abatement, credit, and refund of tax, filed under the 
provisions of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))



Sec.  19.77  Installation of meters, tanks and other apparatus.

    The appropriate TTB officer is authorized to require the proprietor 
to install meters, tanks, pipes, or any other apparatus which the 
appropriate TTB officer deems advisable for the purpose of protecting 
the revenue. Any proprietor refusing or neglecting to install such 
apparatus when so required shall not be permitted to conduct business.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))



Sec.  19.78  Approval of qualifying documents.

    The appropriate TTB officer is authorized to approve, except as 
otherwise provided in this part, all qualifying documents, including 
bonds and consents of surety, required by this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1394, as amended 
(26 U.S.C. 5172, 5551); sec. 805, Pub. L. 96-39, 93 Stat. 275, 276 (26 
U.S.C. 5171, 5173))



Sec.  19.79  Discontinuance of storage facilities.

    When the appropriate TTB officer finds that any facilities for the 
storage of spirits on bonded premises are unsafe or unfit for use, or 
that spirits stored are subject to great loss or wastage, he may require 
the discontinuance of the use of such facilities and require the spirits 
contained therein to be transferred to such other storage facilities as 
he may designate. Such transfer shall be made at such time and under 
such supervision as the appropriate TTB officer may require and the 
expense of the transfer shall be paid by the owner or the warehouseman 
of the spirits. Whenever the owner of such spirits or the warehouseman 
fails to make such transfer within the time prescribed or to pay the 
just and proper expense of such transfer, as ascertained and determined 
by the appropriate TTB officer, such spirits may be seized and sold in 
the same manner as goods sold on distraint for taxes, and the proceeds 
of such sale shall be applied to the payment of the taxes due thereon 
and the cost and expense of such sale and removal, and the balance shall 
be paid over to the owner of such spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5236))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.81  Right of entry and examination.

    Any appropriate TTB officer may at all times, as well by night as by 
day, enter any distilled spirits plant, or any other premises where 
distilled spirits operations are carried on, or structure or place used 
in connection therewith for storage or other purposes; to make 
examination of the materials, equipment, and facilities thereon; and 
make such gauges and inventories as he deems necessary. Whenever any 
appropriate TTB officer, having demanded admittance, and having declared 
his name and office, is not admitted into such premises by the 
proprietor or other person having charge thereof, he may at all times, 
use such force as is necessary for him to gain entry to such premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1357, as amended (26 U.S.C. 5203))



Sec.  19.82  Detention of containers.

    Any appropriate TTB officer may detain any container containing, or 
supposed to contain, spirits when such officer has reason to believe 
that the tax imposed by law on such spirits has not been paid or 
determined as required by law or this part, or that such container is 
being removed in violation of law or this part. Every such container may 
be held by the appropriate TTB officer at a safe place until it shall be 
determined whether the property so detained is liable by law to be 
proceeded

[[Page 378]]

against for forfeiture. However, such summary detention shall not 
continue in any case longer than 72 hours without process of law or 
intervention of the appropriate TTB officer, unless the person in 
possession of the container immediately prior to its detention, in 
consideration of the container being kept on his premises during 
detention, executes a waiver of the 72-hours limitation on detention of 
the container.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375 (26 U.S.C. 5311))



Sec.  19.83  Samples for the United States.

    Any appropriate TTB officer is authorized to take samples of 
spirits, denatured spirits, articles, wines, or any other materials 
which may be added to such products for analysis, testing, or other 
determinations to ascertain whether there is compliance with the 
provisions of law and regulations. When such samples are removed from 
the bonded premises, the appropriate TTB officer shall give the 
proprietor a receipt covering the sample so removed.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1357, as amended, 
1362, as amended, 1380, as amended (26 U.S.C. 5201, 5203, 5214, 5362))



Sec.  19.84  Gauging and measuring equipment.

    All gauging and measuring equipment and means required by 27 CFR 
part 30 and this part to be furnished by the proprietor for the purpose 
of ascertaining the quantity, alcoholic content, specific gravity, and 
producing capacity of any materials, denaturants, mash, wort, or beer, 
or the quantity and alcoholic content of spirits, denatured spirits, or 
wines, shall be maintained by the proprietor in accurate and readily 
usable condition. Any appropriate TTB officer may disapprove the use of 
any equipment or means if such officer finds it would be insufficiently 
accurate and the proprietor shall promptly provide accurate equipment or 
means in lieu of the disapproved equipment or means.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1320, as amended, 1358, as amended 
(26 U.S.C. 5006, 5204))

                    Entry and Examination of Premises



Sec.  19.86  Furnishing facilities and assistance.

    On the demand of any appropriate TTB officer or agent, the 
proprietor shall furnish the necessary facilities and assistance to 
enable the officer or agent to gauge the spirits in any container or to 
examine any apparatus, equipment, containers, or materials on the 
distilled spirits plant premises. The proprietor shall also, on demand 
of an appropriate TTB officer or agent, open all doors, and open for 
examination all containers on the plant premises. The proprietor shall, 
on request of an appropriate TTB officer, furnish the exact locations 
(including the number of containers at each location) of all packages 
and similar portable approved containers within a given lot, and 
locations (i.e., buildings, rooms or areas) where spirits in cases are 
stored.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1357, as amended (26 U.S.C. 5203); 
sec. 806, Pub. L. 96-39, 93 Stat. 279 (26 U.S.C. 5202))

       Gauging of Spirits, Wines or Alcoholic Flavoring Materials



Sec.  19.91  Gauging.

    (a) Gauging of spirits and wine. Gauges shall be made by the 
proprietor. However, the appropriate TTB officer may require that such 
gauges be made in the presence of and be verified by an appropriate TTB 
officer. Gauges of spirits, denatured spirits, or wine shall be made in 
accordance with 27 CFR part 30 and as provided in this part. However, 
the gauge for wine that is to be transferred to a bonded wine cellar 
shall be recorded by kind and percent of alcohol by volume. When bulk 
spirits, denatured spirits, or wines are to be volumetrically measured, 
the measurement shall be in a tank or bulk conveyance for which a 
calibration chart is provided, by a meter approved under Sec.  19.277, 
or, when approved by the appropriate TTB officer, by other devices or 
methods. Calibration charts shall be certified as accurate by persons 
qualified to calibrate tanks or bulk conveyances. When spirits in 
bottles are gauged, the gauge may be established on the basis of legible 
case markings and label information, if (1) the bottles

[[Page 379]]

are full, and (2) there is no evidence that the bottles have been 
tampered with.
    (b) Gauging of alcoholic flavoring materials. Each alcoholic 
flavoring material shall be gauged when dumped, except that when 
received from a manufacturer in a closed nonporous bottle, can, or 
package such material may be gauged by using the proof derived from the 
container label or a related statement of the proof from the 
manufacturer. When proof is determined from a label or manufacturer's 
statement, the proprietor shall periodically test a sufficient number of 
samples of the alcoholic flavoring material to verify the accuracy of 
the proof so determined and shall record the results of those tests on 
the gauge record. The appropriate TTB officer may require that all 
alcoholic flavoring materials be gauged by the methods provided in 27 
CFR part 30.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1396, as amended 
(26 U.S.C. 5204, 5559))



Sec.  19.92  When gauges are required.

    (a) Initial proof. Except for a gauge required by Sec.  19.383 or 
Sec.  19.517 or in any case where the proof changes as a result of a 
storage or processing operation, the initial determination of proof for 
distilled spirits, wine, or eligible flavors may be used whenever a 
subsequent gauge is required by this part to be made at the same plant.
    (b) Required gauges. Spirits, wine and alcoholic flavoring materials 
shall be gauged whenever required by this part. Such gauges include:
    (1) Entered for deposit,
    (2) Filled into packages from storage tanks,
    (3) Transferred or received in bond,
    (4) Transferred between operational accounts,
    (5) Mixed in the manufacture of a distilled spirits product,
    (6) Reduced in proof prior to commencement of bottling,
    (7) Destroyed,
    (8) Removed or withdrawn from bond,
    (9) Returned to bond, or
    (10) As otherwise required by the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1396, as amended 
(26 U.S.C. 5204, 5559))

[T.D. ATF-199, 50 FR 9160, Mar. 6, 1985, as amended by T.D. ATF-297, 55 
FR 18063, Apr. 30, 1990]



Sec.  19.93  Quantity determination of spirits in bond.

    Where bulk spirits in bond are gauged for determination of tax, or 
are gauged in packages, the quantity shall be determined by weight 
pursuant to the provisions of 27 CFR part 30. In all other instances 
where spirits are gauged in bond, gauged for denaturation, or are gauged 
for transfer in bond or for withdrawal from bond free of tax or without 
payment of tax, the quantity may be determined by weight or volume. 
Volumetric determinations of quantity may be made by meters approved 
under Sec.  19.277.

(Sec, 201, Pub. L. 85-859, 72 Stat. 1396, as amended (26 U.S.C. 5559))

          Securing of Conveyances Used for Transporting Spirits



Sec.  19.96  Securing of conveyances.

    (a) Construction for securing. If a conveyance is required by this 
part to be secured, the conveyance shall be constructed in such manner 
that all openings, including valves (if any) on bulk conveyances, may be 
closed and secured.
    (b) Approval of securing devices. (1) All seals, locks, or other 
devices that are required to be used on conveyances in which spirits are 
transferred in bond, or withdrawn free of tax or without payment of tax, 
shall be approved by the appropriate TTB officer prior to use. However, 
cap seals, at least \3/4\ of an inch in diameter, and ball-strap-type 
(railroad) seals with a strap at least \5/16\ of an inch wide may be 
used on conveyances without prior approval of the appropriate TTB 
officer. Such seals shall:
    (i) Be made of durable materials,
    (ii) Bear the plant registration number or name, or readily 
recognizable abbreviation of the name of the proprietor,

[[Page 380]]

    (iii) Bear a serial number including letter prefixes or suffixes, 
that will not be repeated within a six month period,
    (iv) Be durably marked in readily legible form, and
    (v) Be made so that their being opened will leave evidence thereof.
    (2) Seals, locks or other devices that are used on conveyances to 
transport taxpaid spirits, or denatured spirits transferred in bond or 
withdrawn free of tax, need not be approved.
    (c) Furnishing and affixing securing devices. (1) Seals, locks, or 
other devices for use on conveyances shall be furnished and affixed by 
the proprietor.
    (2) The appropriate TTB officer may, if he deems necessary, require 
conveyances in which spirits are: (i) transferred in bond, (ii) 
withdrawn free of tax, or (iii) withdrawn without payment of tax, to be 
secured by seals, locks, or other devices approved and furnished by the 
Bureau and affixed by an appropriate TTB officer.
    (3) Seals, locks, or other devices shall be affixed:
    (i) As soon as the conveyance is loaded for shipment, and
    (ii) In such a manner that access to the contents of the conveyance 
cannot be gained without showing evidence of tampering.
    (4) The openings of bulk conveyances may be secured with permanent 
seals, locks, or other devices.
    (d) Numbers and marks on proprietor's securing devices. Seals, 
locks, or other devices that are furnished by the proprietor for use on 
conveyances shall be serially numbered. Letter abbreviations of the name 
of a proprietor may not be used unless approved by the appropriate TTB 
officer pursuant to written application.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended 1410, as amended 
(26 U.S.C. 5206, 5682))

            Conveyance of Spirits or Wines on Plant Premises



Sec.  19.97  Taxpaid spirits or wines on bonded premises.

    Spirits or wines on which the tax has been paid or determined may be 
conveyed within a plant across bonded premises, but such spirits or 
wines shall not be stored or allowed to remain on the bonded premises 
and shall be kept separate and apart from spirits or wines on which the 
tax has not been paid or determined. However, spirits returned to bonded 
premises in accordance with the provisions of 26 U.S.C. 5215 shall be 
allowed to remain on the bonded premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1404, as amended, 
(26 U.S.C. 5201, 5612))



Sec.  19.98  Conveyance of untaxpaid spirits or wines within a distilled spirits plant.

    Untaxpaid spirits or wines may be conveyed between different 
portions of the bonded premises of the same distilled spirits plant, 
across any other premises of such plant; or (by uninterrupted 
transportation) over any public thoroughfare; or (by uninterrupted 
transportation) over a private roadway if the owner, or lessee, of the 
roadway agrees, in writing, to allow appropriate TTB officers access to 
the roadway to perform their necessary duties. The conveyance of spirits 
or wines as authorized in this section is subject to the following 
conditions:
    (a) The spirits or wines are not stored or allowed to remain on any 
premises of such plant other than bonded premises,
    (b) The spirits or wines are kept completely separate and apart from 
spirits on which the tax has been paid or determined,
    (c) A description of the means and route of the conveyance and of 
the portions of the distilled spirits plant between which spirits or 
wines will be conveyed, and a copy of any agreement furnished by the 
owner, or lessee, of a private roadway have been submitted to and 
approved by the appropriate TTB officer, and
    (d) Consent of surety on the operations or unit bond has been 
furnished by the proprietor, on Form 1533, extending the terms of the 
bond to cover conveyance of the spirits or wines.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1398, as amended 
(26 U.S.C. 5201, 5601))

[[Page 381]]



Sec.  19.99  Spirits in customs custody.

    Spirits in customs custody may be conveyed, when necessary, across 
distilled spirits plant premises if:
    (a) The spirits are not stored or allowed to remain on the premises 
of the distilled spirits plant,
    (b) The spirits are kept separate and apart from other spirits on 
the premises and are moved expeditiously,
    (c) A description of the means and route of conveyance of the 
spirits across the plant premises has been submitted to and approved by 
the appropriate TTB officer, and
    (d) Consent of surety on the operations or unit bond has been 
furnished by the proprietor, on Form 1533, extending the terms of the 
bond to cover the conveyance of the spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

                          Penalties of Perjury



Sec.  19.100  Execution under penalties of perjury.

    (a) Declaration. When a return, claim, form, or other document 
called for under this part, or in the instructions thereon, is required 
to be executed under penalties of perjury, it shall contain the 
following declaration:

    I declare under the penalties of perjury that this (insert type of 
document, such as report, or claim), including supporting documents, has 
been examined by me and, to the best of my knowledge and belief, is 
true, correct, and complete.

    (b) Signing. The declaration shall bear the signature and title of 
the proprietor or other duly authorized person.

(Act of August 16, 1954, Pub. L. 591--Chapter 736, 68A Stat. 749 (26 
U.S.C. 6065))

Subpart E [Reserved]



                       Subpart F_Location and Use



Sec.  19.131  Restrictions as to locations.

    Distilled spirits plants shall not be located in any dwelling house, 
or in any shed, yard, or enclosure connected with any dwelling house, or 
on board any vessel or boat, or on premises where beer or wine is 
produced, or liquors of any description are retailed, or (except as 
provided in Sec.  19.133) on premises where any other business is 
conducted.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.132  Continuity of premises.

    The continuity of the distilled spirits plant shall be unbroken 
except for separations by public waterways, thoroughfares, or carrier 
rights-of-way. However, where there are other separations of the plant 
premises and all parts of the plant premises are in the same general 
location, the appropriate TTB officer may approve the registration of 
the distilled spirits plant if he finds no jeopardy to the revenue.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.133  Use of distilled spirits plant premises.

    (a) General. No business or operation shall be conducted on the 
premises of a distilled spirits plant other than those authorized in 
accordance with subpart D of this part or those authorized to be carried 
on or conducted by the notice of registration.
    (b) Bonded premises. Bonded premises shall be used exclusively for 
distilled spirits operations. Spirits in packages, cases, or other 
portable containers on bonded premises shall be stored in a room or 
building. However, upon application by the proprietor, appropriate TTB 
officer may approve an alternative method of storage of such spirits if 
such method is suitable for the protection of the revenue and the 
effective administration of this part.
    (c) General premises. General premises are any portion of the 
distilled spirits plant described in the notice of registration other 
than bonded premises. General premises may not be used for any of the 
operations required to be conducted on bonded premises. Business offices 
and service facilities may be included as a part of general premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))

[[Page 382]]



Sec.  19.134  Bonded warehouses not on premises qualified for production of spirits.

    (a) Criteria for establishment. (1) A bonded warehouse, other than 
one established on the bonded premises of a distilled spirits plant 
qualified for production of spirits, or contiguous to a distillery 
operated by the warehouseman, may be established if the need therefor is 
clearly shown and the prospective needs of the warehouseman will be for 
the bonded storage of not less than 250,000 wine gallons of bulk 
distilled spirits.
    (2) When commercial bonded warehouses are not available in an area 
and it is impractical to have a warehouse of 250,000 wine gallon 
capacity, the appropriate TTB officer may approve the establishment of a 
warehouse without regard to the minimum storage requirements.
    (b) Application. (1) The application for registration to establish a 
warehouse shall be accompanied by a separate written application setting 
forth the necessity for the establishment of the warehouse.
    (2) The application shall include:
    (i) Approximate quantity of bulk spirits that will be received, 
stored, and withdrawn annually;
    (ii) Probable number of depositors of spirits;
    (iii) Approximate number of persons to be served from the warehouse; 
and
    (iv) Data or documents indicating the prospective volume of business 
or need for establishment.
    (c) Approval. (1) The appropriate TTB officer may approve the 
application for registration if the proposed location of the warehouse 
will not be a jeopardy to the revenue and there is satisfactory evidence 
of the need for establishing a warehouse.
    (2) The appropriate TTB officer may also limit the type of operation 
to be conducted at a bonded warehouse established with less than the 
minimum storage requirements.
    (d) Special condition. The proprietor of a warehouse established for 
a limited type of operation shall not, in any manner, expand or change 
his operation to include any other type of operations until, pursuant to 
written application to make such change, he has obtained the approval of 
the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178); 
sec. 805a, Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))



           Subpart G_Qualification of Distilled Spirits Plants



Sec.  19.151  General requirements for registration.

    (a) Operations. Except as otherwise provided by law, operations as a 
distiller, warehouseman, or processor may be conducted only on the 
bonded premises of a distilled spirits plant by a person qualified to 
carry out such operations under this subpart.
    (b) Establishment. A distilled spirits plant may be established only 
by a person who intends to conduct at such plant operations as a 
distiller, as a warehouseman, or as both.
    (c) Registration. Each person shall, before commencing operations at 
a distilled spirits plant, make application for and receive notice of 
registration of his plant with respect to such operations as provided in 
this part. Application for registration shall be made on Form 5110.41 to 
the appropriate TTB officer. Each application shall be executed under 
penalties of perjury, and all written statements, affidavits, and other 
documents submitted in support of the application or incorporated by 
reference shall be deemed to be a part thereof. The appropriate TTB 
officer may, in any instance where the outstanding notice of 
registration is inadequate or incorrect in any respect, require the 
filing of an application on Form 5110.41 to amend the notice of 
registration, specifying the respects in which amendment is required. 
Within 60 days after the receipt of such notice, the proprietor shall 
file such application.

(Sec. 201. Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172); 
sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.152  Data for application for registration.

    Application on Form 5110.41 shall include the following information:

[[Page 383]]

    (a) Serial number and statement of purpose for which filed.
    (b) Name and principal business address of the applicant, and the 
location of the distilled spirits plant if different from the business 
address.
    (c) Statement of the type of business organization and of the 
persons interested in the business, supported by the items of 
information listed in Sec.  19.167.
    (d) Statement of the operations to be conducted.
    (e) In respect of the plant to which the Form 5110.41 relates, a 
list of applicant's operating and basic permits, and of the operations, 
withdrawal, or unit bonds (including those filed with the application) 
with the name of the surety or sureties for each bond.
    (f) List of the offices, the incumbents of which are authorized by 
the articles of incorporation or the board of directors to act on behalf 
of the proprietor or to sign the proprietor's name.
    (g) Description of the plant (see Sec.  19.168).
    (h) List of major equipment (see Sec.  19.166).
    (i) Statement of maximum proof gallons that will be produced in the 
distillery during a period of 15 days, stored on bonded premises, and in 
transit to the bonded premises. (Not required if the operations or unit 
bond is in the maximum sum.)
    (j) With respect to any distilled spirits plant which was not 
qualified to operate before June 1, 1985 a certified statement that 
relevant and material accounting records (including regular books of 
account and such other records and data as may be necessary to support 
such records) will be maintained in accordance with generally accepted 
accounting principles which enable the proprietor to file a correct 
distilled spirits tax return or determine whether he is liable for 
distilled spirits taxes.
    (k) Statement of physical security measures employed (see Sec.  
19.153).
    (l) As applicable, the following:
    (1) With respect to the operations of a distiller:
    (i) Statement of daily producing capacity in proof gallons.
    (ii) Statement of production procedure (see Sec.  19.170).
    (iii) Statement whether spirits will be redistilled.
    (2) With respect to the operations of a warehouseman:
    (i) Description of the system of storage.
    (ii) Statement of bulk storage capacity in wine gallons.
    (3) With respect to the operations of a processor:
    (i) Statement whether bottling operations will be conducted.
    (ii) Statement whether denaturing operations will be conducted.
    (iii) Statement whether articles will be manufactured.
    (iv) Statement whether spirits will be redistilled.
    (v) Description of the system of storage of spirits bottled and 
cased or otherwise packaged or placed in approved containers for removal 
from bonded premises.
    (4) If any other business is to be conducted on the distilled 
spirits plant premises, as provided by subpart D of this part, a 
description of the business, a list of the buildings and/or equipment to 
be used, and a statement as to the relationship, if any, of the business 
to distilled spirits operations at the plant.

If any of the information required by paragraph (c) of this section is 
on file with the appropriate TTB officer, that information, if accurate 
and complete, may by incorporation by reference, be made part of the 
application. The applicant shall, when required by the appropriate TTB 
officer, furnish as a part of the application for registration, 
additional information as may be necessary to determine whether the 
application for registration should be approved.

(68 A Stat. 731, as amended (26 U.S.C. 6001); sec. 201, Pub. L. 85-859, 
72 Stat. 1349, as amended (26 U.S.C. 5172); sec. 805(a), Pub. L. 96-39, 
93 Stat. 275 (26 U.S.C. 5171))



Sec.  19.153  Statement of physical security.

    (a) Content. The statement of security shall include:
    (1) A general description of the physical security at the distilled 
spirits plant, including methods utilized to secure buildings and 
outdoor tanks;
    (2) A statement whether guard personnel are employed;

[[Page 384]]

    (3) A statement whether any electronic or mechanical alarm system is 
used;
    (4) A statement certifying that locks used meet the specifications 
provided in paragraph (e) of Sec.  19.281;
    (5) A list of persons by position or title having responsibility for 
the custody of and access to keys for approved locks used at the 
distilled spirits plant.
    (b) Changes. The proprietor shall file an application for amended 
registration with the appropriate TTB officer for any change in 
personnel or procedures contained in the statement of security.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172); 
sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))



Sec.  19.154  Notice of registration.

    The application for registration, when approved, shall constitute 
the notice of registration of the distilled spirits plant. A distilled 
spirits plant shall not be registered or reregistered under this subpart 
until the applicant has complied with all requirements of law and 
regulations relating to the qualification of the business or operations 
in which the applicant intends to engage. A plant shall not be operated 
unless the proprietor has a valid notice of registration covering the 
businesses and operations to be conducted at such plant. In any instance 
where a bond is required to be given or a permit is required to be 
obtained with respect to a business or operation before notice of 
registration of the plant may be received with respect thereto, the 
notice of registration shall not be valid with respect to such business 
or operation in the event that such bond or permit is no longer in 
effect. An application for reregistration shall be filed and notice of 
registration again obtained before engaging in such business or 
operation at such plant. Reregistration is not required when a new bond 
or a strengthening bond is filed pursuant to Sec.  19.246 or 19.247.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172); 
sec. 805a, Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))



Sec.  19.155  Maintenance of registration file.

    The proprietor shall maintain the registration file in looseleaf 
form in complete and current condition, readily available at the plant 
for inspection by appropriate TTB officers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))



Sec.  19.156  Powers of attorney.

    The proprietor shall execute and file with the appropriate TTB 
officer a Form 1534 (5000.8) for each person authorized to sign or to 
act on behalf of the proprietor. (Not required for persons whose 
authority is furnished in the application for registration.)

(See 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))



Sec.  19.157  Operating permits.

    (a) General. Except as provided in paragraph (b) of this section, 
each person required to file an application for registration under Sec.  
19.151 shall make application for and obtain an operating permit before 
commencing any of the following operations:
    (1) Distilling for industrial use.
    (2) Warehousing of spirits for industrial use.
    (3) Denaturing spirits.
    (4) Warehousing of spirits (without bottling) for nonindustrial use.
    (5) Bottling or packaging of spirits for industrial use.
    (6) Manufacturing articles.
    (7) Any other distilling, warehousing, or processing operation not 
required to be covered by a basic permit under the Federal Alcohol 
Administration Act (49 Stat. 978, 27 U.S.C. 203, 204). Application for 
such operating permit shall be made on Form 5110.25 to the appropriate 
TTB officer.
    (b) Exceptions. The provisions of paragraph (a) of this section 
shall not apply to any agency of a State or political subdivision 
thereof, or to any officer or employee of any such agency acting for the 
agency.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271); 
sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))

[[Page 385]]



Sec.  19.158  Data for application for operating permits.

    Each application on Form 5110.25 shall be executed under the 
penalties of perjury, and all written statements, affidavits, and other 
documents submitted in support of the application shall be deemed to be 
a part thereof. Applications on Form 5110.25 shall include the following 
information:
    (a) Name and principal business address of the applicant.
    (b) Plant address, if different from the business address.
    (c) Description of the operation to be conducted for which an 
operating permit must be obtained.
    (d) Statement of type of business organization and of the persons 
interested in the business, supported by the items of information listed 
in Sec.  19.167.
    (e) Trade names (see Sec.  19.165).
    (f) On specific request of the appropriate TTB officer, furnish a 
statement as to whether the applicant or any of the persons whose names 
and addresses are required to be furnished under the provisions of Sec.  
19.167(a)(2) and (c) has ever: (1) Been convicted of a felony or 
misdemeanor under Federal or State law; (2) Been arrested or charged 
with any violation of State or Federal law (convictions or arrests or 
charges for traffic violations need not be reported as to paragraphs 
(f)(1) and (f)(2) of this section, if these violations are not 
felonies); or (3) Applied for, held, or been connected with a permit, 
issued under Federal law to manufacture, distribute, sell or use spirits 
or products containing spirits, whether or not for beverage use, or held 
any financial interest in any business covered by any such permit, and, 
if so, give the number and classification of the permit, the period of 
operation, and state in detail whether the permit was ever suspended, 
revoked, annulled, or otherwise terminated.

Where any of the information required by paragraph (d) or (f)(3) of this 
section is on file with the appropriate TTB officer, the applicant may, 
by incorporation or by reference, state that the information is made a 
part of the application for an operating permit. The applicant shall, 
when required by the appropriate TTB officer, furnish as a part of his 
application for an operating permit additional information as may be 
necessary for the appropriate TTB officer to determine whether the 
applicant is entitled to the permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271); 
sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))



Sec.  19.159  Issuance of operating permits.

    Only one operating permit will be issued for a plant. The operating 
permit shall designate the operations permitted. All of the provisions 
of this part relating to the performance of the operations covered by 
the permit shall be included in the provisions and conditions of the 
permit. Operating permits shall be kept posted available for inspection 
at the distilled spirits plant.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271); 
sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))



Sec.  19.160  Duration of permits.

    Operating permits are continuing, unless automatically terminated by 
the terms thereof, suspended or revoked as provided in Sec.  19.163, or 
voluntarily surrendered. The provisions of Sec.  19.181 shall be a part 
of the terms and conditions of all operating permits issued under this 
part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.161  Denial of permit.

    If, on examination of an application for an operating permit (or on 
the basis of inquiry or investigation), the appropriate TTB officer has 
reason to believe that--
    (a) The applicant (including, in the case of a corporation, any 
officer, director, or principal stockholder, and, in the case of a 
partnership, a partner) is, by reason of his business experience, 
financial standing, or trade connections, not likely to maintain 
operations in compliance with 26 U.S.C. Chapter 51, or regulations 
issued thereunder; or
    (b) The applicant has failed to disclose any material information 
required, or has made any false statement, as to any material fact, in 
connection with the application; or
    (c) The premises on which the applicant proposes to conduct the 
operations are not adequate to protect the

[[Page 386]]

revenue; the appropriate TTB officer may institute proceedings for the 
denial of the application in accordance with the procedures set forth in 
27 CFR part 71.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.162  Correction of permits.

    Where an error in an operating permit is discovered, the proprietor 
shall, on demand of the appropriate TTB officer, immediately return the 
permit for correction.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.163  Suspension or revocation.

    Whenever the appropriate TTB officer has reason to believe that any 
person holding an operating permit--
    (a) Has not in good faith complied with the provisions of 26 U.S.C. 
Chapter 51, or regulations issued thereunder; or
    (b) Has violated conditions of the permit; or
    (c) Has made any false statement as to any material fact in the 
application therefor; or
    (d) Has failed to disclose any material information required to be 
furnished; or
    (e) Has violated or conspired to violate any law of the United 
States relating to intoxicating liquor or has been convicted of any 
offense under Title 26, U.S.C. punishable as a felony or of any 
conspiracy to commit such offense; or
    (f) Has not engaged in any of the operations authorized by the 
permit for a period of more than 2 years; the appropriate TTB officer 
may institute proceedings for the revocation or suspension of the permit 
in accordance with the procedures set forth in 27 CFR part 71.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.164  Rules of practice in permit proceedings.

    The regulations in 27 CFR part 71 are made applicable to the 
procedure and practice in connection with the disapproval of any 
application for an operating permit required by this subpart, and in 
connection with the suspension and revocation of such permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.165  Trade names.

    (a) Operating permits. Where a trade name is to be used in 
connection with the operations of a plant for which an operating permit 
is required, the proprietor shall list that trade name on Form 5110.25 
(showing the operations in which each trade name will be used) and the 
offices where the trade name is registered, supported by copies of any 
certificate or other document filed or issued in respect to the trade 
name.
    (b) Basic permits. Where any distilling, warehousing, or processing 
operation is required to be covered by a basic permit under the Federal 
Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203, 204), 
regulations issued under such Act govern the approval and use of trade 
names for those operations.
    (c) Conditions. Operations shall not be conducted under a trade name 
until the proprietor is in possession of an operating or basic permit 
covering the use of such name.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.166  Major equipment.

    The following items of major equipment, if on the plant premises, 
shall be described in the application for registration:
    (a) Tanks (serial number and capacity) used in the production, 
storage and processing of distilled spirits, wine, denatured spirits and 
articles;
    (b) Stills (serial number, kind, capacity and intended use). The 
capacity shall be stated as the estimated maximum proof gallons of 
spirits capable of being produced every 24 hours, or (for column stills) 
may be represented by a statement of the diameter of the base and number 
of plates; and
    (c) Condensers (serial number).

A statement of certification of accurate calibration shall be included 
in the description of tanks that are to be

[[Page 387]]

used for gauging distilled spirits or wine for any purpose.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1352, as amended 
(26 U.S.C. 5172, 5179))



Sec.  19.167  Organizational documents.

    The supporting information required by paragraph (c) of Sec.  
19.152, and paragraph (d) of Sec.  19.158, includes, as applicable, 
copies of--
    (a) Corporate documents. (1) Corporate charter or a certificate of 
corporate existence or incorporation.
    (2) List of directors and officers, showing their names and 
addresses.
    (3) Certified extracts or digests of minutes of meetings of board of 
directors, authorizing certain individuals to sign for the corporation.
    (4) Statement showing the number of shares of each class of stock or 
other evidence of ownership, authorized and outstanding, and the voting 
rights of the respective owners or holders.
    (b) Articles of partnership. Copy of the articles of partnership or 
association, if any, or certificate of partnership or association where 
required to be filed by any State, county, or municipality.
    (c) Statement of interest. (1) Names and addresses of the 10 persons 
having the largest ownership or other interest in each of the classes of 
stock in the corporation, or other legal entity, and the nature and 
amount of the stockholding or other interest of each, whether the 
interest appears in the name of the interested party or in the name of 
another for him. If a corporation is wholly owned or controlled by 
another corporation, those persons of the parent corporation who meet 
the above standards are considered to be the persons interested in the 
business of the subsidiary, and the names thereof need be furnished only 
upon request of the appropriate TTB officer.
    (2) In the case of an individual owner or partnership, the name and 
address of each person interested in the plant, whether the interest 
appears in the name of the interested party or in the name of another 
for that person.
    (d) Availability of additional corporate documents. The originals of 
documents required to be submitted under this section and additional 
documents which may be required by the appropriate TTB officer such as 
the articles of incorporation, bylaws, and State certificate authorizing 
operations shall be made available to any appropriate TTB officer upon 
request.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271))



Sec.  19.168  Description of plant.

    (a) The application for registration shall include a description of 
each tract of land comprising the distilled spirits plant.
    (b) The description shall:
    (1) Clearly indicate the bonded premises and any general premises 
included as part of the distilled spirits plant; and
    (2) Contain directions and distances in sufficient detail to enable 
appropriate TTB officers to readily determine the boundaries of the 
plant.
    (c) Each building and outside tank used for the production, storage 
and processing of spirits, denatured spirits, articles, or wines shall 
be described by location, size, construction, and arrangement with 
reference to each by its designated number or letter.
    (d) If a plant includes a room or floor in a building, a description 
of the building in which the room or floor is situated and its location 
shall be given.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))



Sec.  19.169  Registry of stills.

    The provisions of subpart C of part 29 of this chapter are 
applicable to stills or distilling apparatus located on plant premises 
used for distilling. As provided under Sec.  29.55, the listing of a 
still in the application for registration, and approval of the 
application, constitutes registration of the still.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1355, as amended 
(26 U.S.C. 5172, 5179))

[T.D. ATF-207, 50 FR 23681, June 5, 1985]



Sec.  19.170  Statement of production procedure.

    The statement of production procedure in the application for 
registration shall set forth a step-by-step description of the procedure 
employed to produce spirits from an original source,

[[Page 388]]

commencing with the treating, mashing, or fermenting of the raw 
materials or substances and continuing through each step of the 
distilling, purifying and refining procedure to the production gauge. 
The kind and approximate quantity of each material or substance used in 
producing, purifying, or refining each type of spirits shall be shown.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))

                  Changes After Original Qualification



Sec.  19.180  Application for amended registration.

    Where there is a change with respect to the information shown in the 
notice of registration, the proprietor shall submit, within 30 days of 
such change (except as otherwise provided in this subpart), an 
application on Form 5110.41 for amended registration. Such application 
shall set forth, on sheets appropriately numbered or otherwise 
identified, the information necessary to make the notice of registration 
accurate and current. Where the change affects only pages or parts of 
pages of the notice of registration, such complete pages shall be 
submitted as will enable the replacement of the pages affected and 
maintenance of the file as provided in Sec.  19.155.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172); 
sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))



Sec.  19.181  Automatic termination of permits.

    (a) Permits not transferable. Operating permits issued under this 
part shall not be transferred. In the event of the lease, sale, or other 
transfer of such a permit, or of the operations authorized thereby, the 
permit shall thereupon automatically terminate.
    (b) Corporations. In the case of a corporation holding an operating 
permit under this part, if actual or legal control of the permittee 
corporation changes, directly or indirectly, whether by reason of change 
in stock ownership or control (in the permittee corporation or in any 
other corporation), by operation of law, or in any other manner, such 
permit may remain in effect with respect to the operation covered 
thereby until the expiration of 30 days after such change, whereupon 
such permit shall automatically terminate. However, if within such 30 
day period an application for a new permit covering such operation is 
made, then the outstanding operating permit may remain in effect with 
respect to the continuation of the operation covered thereby until final 
action is taken on such application. When such final action is taken, 
such outstanding operting permit shall thereupon automatically 
terminate.
    (c) Basic permits. The termination of basic permits is governed by 
the provisions of 27 CFR part 1.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.182  Change in name of proprietor.

    Where there is to be a change in the individual, firm, or corporate 
name, the proprietor shall file application to amend the registration 
and to amend the operating and/or basic permit; a new bond or consent of 
surety will not be required. Operations may not be conducted under the 
new name prior to approval of the amended registration and issuance of 
the amended permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271))



Sec.  19.183  Change of trade name.

    If there is to be a change in, or addition of, a trade name, the 
proprietor shall file application to amend the operating and/or basic 
permit; a new bond or consent of surety will not be required. Operations 
may not be conducted under the new trade name prior to issuance of the 
amended permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended, (26 U.S.C. 5271))



Sec.  19.184  Changes in stockholders.

    Changes in the list of stockholders furnished under the provisions 
of Sec.  19.167(c)(1) may, in lieu of submission within 30 days of the 
change under the provisions of Sec.  19.180, be submitted annually by 
the proprietor on May 1 or other date approved by the appropriate TTB 
officer, except where the sale or transfer of capital stock results in a

[[Page 389]]

change in the control or management of the business.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271))



Sec.  19.185  Changes in officers and directors.

    Where there is any change in the list of officers and directors 
furnished under the provisions of Sec.  19.167(a)(2), the proprietor 
shall submit, within 30 days of any such change, an application on Form 
5110.41 for amended registration, supported by a new list of officers 
and directors and a statement of the changes reflected in such list. 
Where the proprietor has shown to the satisfaction of the appropriate 
TTB officer that certain corporate officers listed on the original 
appplication have no responsibilities in connection with the operations 
covered by the registration, the appropriate TTB officer may waive the 
requirements for submitting applications for amended registration to 
cover changes of such corporate officers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, (26 U.S.C. 5172); 
sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 U.S.C. 5171))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.186  Change in proprietorship.

    (a) General. If there is a change in the proprietorship of a plant 
qualified under this part, the outgoing proprietor shall comply with the 
requirements of Sec.  19.211, and the successor shall, before commencing 
operations, apply for and obtain the required permits, file the required 
bonds, and file application for and receive notice of registration of 
the plant in the same manner as a person qualifying as the proprietor of 
a new plant, except that the successor may, in the manner provided in 
Sec.  19.187, adopt the approved formulas (5150.9) of the predecessor. 
Spirits may be transferred from an outgoing proprietor of a plant to a 
successor in the manner provided in Sec.  19.201.
    (b) Fiduciary. If the successor to the proprietorship of a plant is 
an administrator, executor, receiver, trustee, assignee or other 
fiduciary, he shall comply with the provisions of paragraph (a) of this 
section except that he may, in lieu of filing a new bond, furnish 
consent of surety extending the terms of the predecessor's bond, and he 
may also incorporate by reference in the application for registration on 
Form 5110.41 any pertinent information contained in the predecessor's 
notice of registration. The fiduciary shall furnish a certified copy of 
the order of the court or other pertinent document showing qualification 
as such fiduciary. The effective dates of the qualifying documents filed 
by the fiduciary shall be the effective date of the court order, or the 
date specified therein for him to assume control. If the fiduciary was 
not appointed by a court, the date of assuming control shall coincide 
with the effective date of the qualifying documents filed by the 
fiduciary.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9160, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  19.187  Adoption of formulas.

    (a) Forms 5110.38. The adoption by a successor of approved Forms 
5110.38 (27-B Supplemental) shall be in the form of an application, 
filed with the appropriate TTB officer. The application shall list the 
formulas for adoption by (1) formula number, (2) name of product, and 
(3) date of approval. The application shall clearly show that the 
predecessor has authorized the use of its previously approved formulas 
by the successor.
    (b) Form 5150.19. The adoption by a successor of approved Form 
5150.19 (or previously approved Form 1479-A) shall be in accordance with 
Sec.  20.63 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9160, Mar. 6, 1985]



Sec.  19.188  Partnerships.

    If under the laws of the particular State, the partnership is not 
terminated on death or insolvency of a partner, but continues until the 
winding up of the partnership affairs is completed,

[[Page 390]]

and the surviving partner has the exclusive right to the control and 
possession of the partnership assets for the purpose of liquidation and 
settlement, such surviving partner may continue to operate the plant 
under the prior qualification of the partnership, provided a consent of 
surety is filed, wherein the surety and the surviving partner agree to 
remain liable on the operations or unit bond. If such surviving partner 
acquires the business on completion of the settlement of the 
partnership, he shall qualify in his own name from the date of 
acquisition, as provided in Sec.  19.186(a). The rule set forth in this 
section shall also apply where there is more than one surviving partner.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))



Sec.  19.189  Change in location.

    Where there is a change in the location of the plant, the proprietor 
shall file applications to amend the registration of the plant and the 
operating and/or basic permit, and either a new bond or a consent of 
surety on Form 1533. Operation of the plant may not be commenced at the 
new location prior to approval of the amended registration and issuance 
of the amended permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349 as amended, 1370, as amended 
(26 U.S.C. 5172, 5271); sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 
U.S.C. 5173))



Sec.  19.190  Changes in premises.

    Except as provided in Sec. Sec.  19.202, 19.203, 19.204, and 19.205, 
where bonded premises, or any other premises included as a part of the 
plant are to be extended or curtailed, the proprietor shall file an 
application for registration, Form 5110.41, to cover such extension or 
curtailment. Premises and equipment to be included by extension or to be 
excluded by curtailment shall not, prior to approval by the appropriate 
TTB officer of the requried documents, be used for other than previously 
approved purposes.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))



Sec.  19.191  Change in operations.

    If the proprietor proposes to conduct a new business or operation 
involving spirits, he shall file applications to amend the registration 
of the plant and the operating and/or basic permit. If the proprietor 
desires to engage, on the plant premises, in other businesses, as 
provided in subpart D, he shall submit an application to amend the 
registration of the plant to include the information required under 
Sec.  19.152(l)(4). The additional operation or business may not be 
carried on prior to approval of the amended registration and (if 
required) issuance of the amended permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271); sec. 805(a), Pub. L. 96-39, 93 Stat. 275 (26 
U.S.C. 5171))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.192  Change in production procedure.

    If the proprietor desires to produce a new product or make a change 
in a production procedure which would affect the designation, or 
substantially affect the character of his product, the proprietor shall 
file an application to amend the registration of the plant to include 
the amended or new statement of production procedure. The new or changed 
procedure may not be used prior to approval of the amended registration.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, (26 U.S.C. 5172))



Sec.  19.193  Changes in construction or use of buildings and equipment.

    (a) Changes. When a material change, affecting the accuracy of the 
notice of registration, is to be made in the construction or use of 
buildings or equipment of a plant, other than a change covered by 
Sec. Sec.  19.190, 19.202, 19.203, 19.204, or 19.205, the proprietor 
shall, before making such change, submit a letterhead notice to the 
appropriate TTB officer.
    (b) Letterhead notice. The letterhead notice shall:
    (1) Describe the proposed change in detail;

[[Page 391]]

    (2) Be kept on file with the proprietor's current notice of 
registration; and
    (3) After completion of the change, be incorporated in the next 
amendment of the notice of registration on Form 5110.41, unless the 
appropriate TTB officer requires immediate amendment.
    (c) Emergency changes. The proprietor may make emergency material 
changes without prior notification, but when such emergency changes are 
made, the proprietor shall promptly report such changes to the 
appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, (26 U.S.C. 5172))

                  Operations by Alternating Proprietors



Sec.  19.201  Procedure for alternating proprietors.

    (a) General. A plant, or any part thereof which is suitable for 
qualification as a separate plant, may be operated alternately by 
proprietors who have filed and received approval of the necessary bonds 
and applications for registration, and have otherwise qualified under 
the provisions of this subpart. Where operations by alternating 
proprietors are limited to parts of the plant, the notice of 
registration shall describe the areas, rooms or buildings or combination 
thereof, which will be alternated, and shall be accompanied by special 
diagrams designating the parts of the plant which are to be alternated. 
A special diagram shall be submitted for each arrangement under which 
the premises will be operated. Once such qualifying documents have been 
approved, and initial operations have been conducted thereunder, the 
plant, or parts thereof, may be alternated by the proprietor filing 
notices on Form 5110.34 with the appropriate TTB officer. Any transfer 
of spirits, idenatured spirits, and wines shall be indicated on Form 
5110.34 filed by each proprietor.
    (b) Production. Distilling materials and unfinished spirits in any 
bonded areas, rooms or buildings to be alternated shall be processed to 
completion by the outgoing proprietor unless transferred to the incoming 
proprietor. All finished spirits shall be marked and removed by the 
outgoing proprietor in the name in which produced, before production 
gauge is made of any spirits by the incoming proprietor.
    (c) Storage. Spirits and wines in any bonded areas, rooms, or 
buildings to be alternated shall be transferred in bond to the incoming 
proprietor. The outgoing proprietor shall execute a consent of surety on 
Form 1533 (5000.18) to continue in effect the operations or unit bond 
whenever operation of the areas, rooms, or buildings is to be resumed by 
him following suspension of operations by an alternate proprietor.
    (d) Processing. Spirits, denatured spirits, wines and articles in 
any rooms, areas, or buildings to be alternated shall be processed to 
completion and removed from the affected areas, rooms, or buildings by 
the outgoing proprietor prior to the effective date and hours given in 
the notice unless transferred or retained in locked tanks as provided in 
this paragraph. Spirits, denatured spirits, and wines may be transferred 
to the incoming proprietor. Further, the outgoing proprietor shall 
execute a consent of surety on Form 1533 (5000.18) to continue in effect 
the operations or unit bond whenever operation of the affected areas, 
rooms, or buildings is to be resumed by him following suspension of 
operations by the alternate proprietor. Denatured spirits and articles 
may be retained in tanks locked by approved locks, the keys to which are 
in the custody of the outgoing proprietor. In this case, the outgoing 
proprietor shall execute a consent of surety on Form 1533 (5000.18) to 
continue liability on the operations or unit bond for the tax on such 
denatured spirits or articles retained in such tanks, notwithstanding 
the change in proprietorship.
    (e) Records. Each proprietor shall maintain separate records and 
submit separate reports. Records kept by the outgoing proprietor for 
spirits, wines, and alcoholic flavoring materials may be used by the 
incoming proprietor. All transfers of distilling materials, unfinished 
spirits, spirits, denatured spirits, and wines shall be reflected in the 
records of each proprietor.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271))

[[Page 392]]

                          Alternate Operations



Sec.  19.202  Alternate use of premises and equipment for customs purposes.

    (a) General. The premises of a distilled spirits plant may, as 
provided in this section, be alternately curtailed and extended to 
permit the facilities of the distilled spirits plant to be used 
temporarily by customs officers, under applicable customs law and 
regulations, for the purpose of gauging or processing distilled spirits. 
The use of the excluded portion of the premises for customs purposes is 
subject to the approval of the district director of customs. When it is 
necessary to convey spirits in customs custody across the premises of a 
distilled spirits plant, the proprietor shall comply with the provisions 
of Sec.  19.99. When a portion of the distilled spirits plant premises 
is first to be excluded as provided in this section, the proprietor 
shall file with the appropriate TTB officer (1) an application for 
registration, Form 5110.41, to cover alternate curtailment and extension 
of premises, and (2) a special diagram, in duplicate, delineating the 
premises as they will exist, both during extension and curtailment, and 
clearly depicting all buildings, floors, rooms, areas, equipment and 
spirits lines (identified individually by letter or number) which are to 
be subject to alternation, in their relative operating sequence. Once 
such qualifying documents have been approved by the appropriate TTB 
officer, the designated premises and equipment may be alternately 
curtailed or extended pursuant to notice on Form 5110.34. Portions of 
the premises to be excluded by curtailment or included by extension 
shall not be used for purposes other than as set forth in the current 
notice. The proprietor shall remove all spirits from the premises or 
equipment affected by the notice prior to the effective date and hours 
of the notice. However, on release by customs, spirits being transferred 
to bonded premises under 26 U.S.C. 5232, may remain on the premises to 
be reincluded in bonded premises.
    (b) Separation of premises. The portion of the premises which is to 
be excluded from the distilled spirits plant premises as provided in 
this section shall be separated from the remaining portion of the 
distilled spirits plant premises in a manner which satisfies the 
appropriate TTB officer that the revenue will not be jeopardized.
    (c) Exception. Notwithstanding the provisions of paragraphs (a) and 
(b) of this section, the bonded premises may be used temporarily without 
filing Form 5110.41 or Form 5110.34, for the sole purpose of gauging 
bulk distilled spirits to effect their transfer from customs custody to 
TTB bond.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1358, as amended 
(26 U.S.C. 5172, 5178))



Sec.  19.203  Alternation of distilled spirits plant and bonded wine cellar premises.

    (a) General. A proprietor of a distilled spirits plant operating a 
contiguous bonded wine cellar desiring to alternate the use of each 
premises by extension and curtailment shall file necessary qualifying 
documents with the appropriate TTB officer.
    (b) Qualifying documents. The proprietor shall file with the 
appropriate TTB officer:
    (1) Form 5110.41 and Form 5120.25 to cover the proposed alternation 
of premises;
    (2) A special diagram, in duplicate, delineating the premises as 
they will exist, both during extension and curtailment and clearly 
depicting all buildings, floors, rooms, areas, equipment and spirits 
lines (identified individually by letter or number) which are to be 
subject to alternation, in their relative operating sequence; and
    (3) Evidence of existing bond, consent of surety, or a new bond to 
cover the proposed alternation of premises.
    (c) Proprietor's responsibility. After approval of qualifying 
documents for the alternation of premises, and after initial operations 
have been conducted thereunder, the proprietor shall execute Form 
5110.34 each time the premises are alternated. Prior to the effective 
hour of the date shown on the Form 5110.34, the proprietor shall remove 
all spirits, denatured spirits, articles, and wines from the distilled 
spirits plant premises alternated to bonded wine cellar premises. Any 
wine on bonded wine cellar premises shall be

[[Page 393]]

removed prior to alternation to distilled spirits plant premises unless 
wine is being simultaneously transferred in bond to the distilled 
spirits plant.
    (d) Separation of premises. Separation of distilled spirits plant 
premises from bonded wine cellar premises after alternation shall be in 
a manner which satisfies the appropriate TTB officer that the revenue 
will not be jeopardized.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1353, as amended 
(26 U.S.C. 5172, 5178))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-344, 58 
FR 40354, July 28, 1993]



Sec.  19.204  Alternation of distilled spirits plant and taxpaid wine bottling house premises.

    (a) General. A proprietor of a distilled spirits plant operating a 
contiguous taxpaid wine bottling house desiring to alternate the use of 
each premises by extension and curtailment shall file necessary 
qualifying documents with the appropriate TTB officer.
    (b) Qualifying documents. The proprietor shall file with the 
appropriate TTB officer:
    (1) Form 5110.41 and Form 5120.25 to cover the proposed alternation 
of premises;
    (2) A special diagram, in duplicate, delineating the premises as 
they will exist, both during extension and curtailment and clearly 
depicting all buildings, floors, rooms, areas, equipment and spirits 
lines (identified individually by letter or number) which are to be 
subject to alternation, in their relative operating sequence; and
    (3) Evidence of existing bond, consent of surety, or a new bond to 
cover the proposed alternation of premises.
    (c) Proprietor's responsibility. After approval of qualifying 
documents for the alternation of premises, and after initial operations 
have been conducted thereunder, the proprietor shall execute Form 
5110.34 each time the premises are alternated. Prior to the effective 
hour of the date shown on the Form 5110.34, the proprietor shall remove 
all spirits, denatured spirits, articles, and wines from the distilled 
spirits plant premises alternated to taxpaid wine bottling house 
premises. Any wine on taxpaid wine bottling house premises shall be 
removed prior to alternation to distilled spirits plant premises.
    (d) Separation of premises. Separation of distilled spirits plant 
premises from taxpaid wine bottling house premises after alternation 
shall be in a manner which satisfies the appropriate TTB officer that 
the revenue will not be jeopardized.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1353, as amended 
(26 U.S.C. 5172, 5178))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-344, 58 
FR 40354, July 28, 1993]



Sec.  19.205  Alternate curtailment and extension of bonded premises for use as general premises.

    (a) General. The premises of a distilled spirits plant may, as 
provided in this section, be alternately curtailed and extended to 
permit the bonded premises of the distilled spirits plant to be used 
temporarily as general premises, or to permit the general premises of a 
distilled spirits plant to be used temporarily as bonded premises.
    (b) Qualifying documents. When a portion of the distilled spirits 
plant premises is first to be curtailed or extended as provided in this 
section, the proprietor shall file with the appropriate TTB officer--
    (1) An application for registration, Form 5110.41, to cover 
alternate extension and curtailment of the premises, and
    (2) A special diagram, in duplicate, delineating the premises as 
they will exist, both during extension and curtailment, and clearly 
depicting all buildings, floors, rooms, areas, equipment and spirits 
lines (identified individually by letter or number) which are to be 
subject to alternation, in their relative operating sequence.
    (c) Proprietor's responsibility. Once such qualifying documents have 
been approved by the appropriate TTB officer, the designated premises 
and equipment may be alternately curtailed or extended pursuant to 
notice on Form 5110.34. Portions of the premises to be excluded by 
curtailment or included by

[[Page 394]]

extension shall not be used for purposes other than as set forth in the 
current notice. The proprietor shall remove all spirits, denatured 
spirits, articles, and wines from the premises or equipment affected by 
the notice prior to the effective date and hour of the notice, except 
that--
    (1) Bonded spirits on portions of bonded premises that are to be 
curtailed to general premises need not be removed if the spirits are 
taxpaid concurrent with the filing of Form 5110.34 to effect 
curtailment; and
    (2) Taxpaid spirits on portions of general premises to be curtailed 
to bonded premises need not be removed if the spirits are to be 
immediately dumped and returned to bond under the provisions of subpart 
U of this part.
    (d) Separation of premises. The portion of the premises which is to 
be curtailed or extended as provided in this section shall be separated 
from the remaining portion of the distilled spirits plant in a manner 
which satisfies the appropriate TTB officer that the revenue will not be 
jeopardized.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1353, as amended 
(26 U.S.C. 5172, 5178))



Sec.  19.206  Curtailment and extension of plant premises for the manufacture of eligible flavors.

    (a) General. The premises of a distilled spirits plant may be 
alternately curtailed and extended, as provided in this section, to 
permit the use of the facilities for the manufacture of eligible 
flavors.
    (b) Qualifying documents. When a portion of the distilled spirits 
plant premises is first to be curtailed or extended as provided in this 
section, the proprietor shall file with the appropriate TTB officer--
    (1) An application for registration, Form 5110.41, to cover 
alternate extension and curtailment of the premises, and
    (2) A special diagram, in duplicate, delineating the premises as 
they will exist, both during extension and curtailment, and clearly 
depicting all buildings, floors, rooms, areas, equipment and spirits 
lines (identified individually by letter or number) which are to be 
subject to alternation, in their relative operating sequence.
    (c) Proprietor's responsibility. Once such qualifying documents have 
been approved by the appropriate TTB officer, the designated premises 
and equipment may be alternately curtailed or extended pursuant to 
notice on Form 5110.34. Portions of the premises to be excluded by 
curtailment or included by extension shall not be used for purposes 
other than as set forth in the current notice. The proprietor shall 
remove all spirits, denatured spirits, articles, and wines from the 
premises or equipment which are to be curtailed from bonded premises or 
are to be included by extension of bonded premises prior to the 
effective date and hour of the notice, except that--
    (1) Bonded spirits on portions of bonded premises that are to be 
curtailed need not be removed if the spirits are taxpaid concurrent with 
the filing of Form 5110.34 to effect curtailment; and
    (2) Taxpaid spirits which are on portions of premises to be included 
by extension of bonded premises and which have not been used in the 
manufacture of a nonbeverage product need not be removed if the spirits 
are to be dumped immediately and returned to bond under the provisions 
of subpart U of this part.
    (d) Separation of premises. The portion of the premises which is to 
be curtailed or extended as provided in this section shall be separated 
from the remaining portion of the distilled spirits plant in a manner 
which satisfies the appropriate TTB officer that the revenue will not be 
jeopardized.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1353, as amended 
(26 U.S.C. 5172, 5178))

[T.D. ATF-297, 55 FR 18063, Apr. 30, 1990]



Sec.  19.207  Alternate use of distilled spirits plant and volatile fruit-flavor concentrate premises.

    If a proprietor of distilled spirits plant wishes to use all or a 
portion of such premises alternately as a volatile fruit-flavor 
concentrate plant or vice-a-versa, the proprietor must comply

[[Page 395]]

with the requirements of Sec. Sec.  18.39 and 18.41 through 18.43 of 
this title.

[T.D. ATF-455, 66 FR 29482, May 31, 2001]

                  Permanent Discontinuance of Business



Sec.  19.211  Notice of permanent discontinuance.

    When the proprietor permanently discontinues any or all of the 
operations listed in the notice of registration, he shall file a Form 
5110.41 to show the discontinuance. Form 5110.41 shall be accompanied 
(a) by all permits issued to the proprietor under this subpart covering 
the discontinued operations, and by the proprietor's request that such 
permits be canceled; (b) by the proprietor's written statement 
disclosing, as applicable, whether (1) all spirits, denatured spirits, 
articles, wines, liquor bottles, and other pertinent items have been 
lawfully disposed of, (2) any spirits, denatured spirits, wines, or 
liquor bottles are in transit to the premises, (3) all approved 
applications for transfer of spirits and denatured spirits to the 
premises have been secured and returned to the appropriate TTB officer 
for cancellation; and (c) by pertinent reports coverning the 
discontinued operations (each report shall be marked ``Final Report'').

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271))

[T.D. ATF-206, 50 FR 23951, June 7, 1985]



                 Subpart H_Bonds and Consents of Surety



Sec.  19.231  Filing of operations or unit bonds.

    Every person intending to establish a distilled spirits plant shall 
file an operations or unit bond as prescribed in this subpart, covering 
distilled spirits operations at such plant, with the appropriate TTB 
officer, at the time of filing the original application for registration 
of the plant, and at such other times as are required by this part. Such 
bond shall be conditioned that he shall faithfully comply with all 
provisions of law and regulations relating to activities covered by such 
bond, will pay all taxes imposed by 26 U.S.C. Chapter 51, and shall pay 
all penalties incurred or fines imposed for violation of any such 
provisions. The appropriate TTB officer may require, in connection with 
any operations or unit bond, a statement, executed under the penalties 
of perjury, as to whether the principal or any person owning, 
controlling, or actively participating in the management of the business 
of the principal has been convicted of or has compromised any offense 
set forth in Sec.  19.237(a)(1) or has been convicted of any offense set 
forth in Sec.  19.237(a)(2). In the event the above statement contains 
an affirmative answer, the applcant shall submit a statement describing 
in detail the circumstances surrounding such conviction or compromise. 
No person shall comence or continue distilled spirits operations at such 
plant unless he has a valid operations or unit bond (and consent of 
surety, if necessary), as required in respect of such operations by this 
part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551); 
sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.232  Additional condition of operations bond.

    In addition to the requirements of Sec.  19.231, the operations bond 
shall be conditioned on payment of the tax now or hereafter in force, 
except as provided by law, including taxes on all unexplained shortages 
of bottled distilled spirits.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.233  Corporate surety.

    (a) Surety bonds required by this part may be given only with 
corporate sureties holding certificates of authority from, and subject 
to the limitations prescribed by, the Secretary as set forth in the 
current revision of Treasury Department Circular 570 (Companies Holding 
Certificates of Authority as Acceptable Sureties on Federal Bonds and as 
Acceptable Reinsuring Companies).
    (b) Treasury Department Circular No. 570 is published in the Federal

[[Page 396]]

Register yearly as of the first workday of July. As they occur, interim 
revisions of the circular are published in the Federal Register. Copies 
may be obtained from the Audit Staff, Bureau of Government Financial 
Operations, Department of the Treasury, Washington, DC 20226.

(Ch. 390, Pub. L. 80-280, 61 Stat. 648 as amended (31 U.S.C. 9304, 
9306))



Sec.  19.234  Deposit of securities in lieu of corporate surety.

    In lieu of corporate surety, the principal may pledge and deposit, 
as surety for his bond, securities which are transferable and are 
guaranteed as to both interest and principal by the United States, in 
accordance with the provisions of 31 CFR part 225.

(Ch. 390, Pub. L. 80-280, 61 Stat. 650 (31 U.S.C. 9301, 9303))



Sec.  19.235  Consents of surety.

    Consents of surety to changes in the terms of bonds shall be 
executed on Form 1533 by the principal and by the surety with the same 
formality and proof of authority as is required for the execution of 
bonds.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.236  Filing and execution of powers of attorney.

    (a) Filing. Each bond, and each consent to changes in the terms of a 
bond, shall be accompanied by a power of attorney authorizing the agent 
or officer who executed the bond or consent to so act on behalf of the 
surety. The appropriate TTB officer who is authorized to approve the 
bond may require additional evidence of the authority of the agent or 
officer to execute the bond or consent.
    (b) Execution. The power of attorney shall be prepared on a form 
provided by the surety company and executed under the corporate seal of 
the company. If the power of attorney submitted is other than a manually 
signed original, it shall be accompanied by certification of its 
validity.

(Ch. 390, Pub. L. 80-280, 61 Stat. 648 (31 U.S.C. 9304, 9306))



Sec.  19.237  Disapproval of bonds or consents of surety.

    (a) Disapproval. The appropriate TTB officer may disapprove any bond 
or consent of surety submitted in respect to the operations of a 
distiller, warehouseman, or processor, if the principal or any person 
owning, controlling, or actively participating in the management of the 
business of the principal shall have been previously convicted, in a 
court of competent jurisdiction of--
    (1) Any fraudulent noncompliance with any provision of any law of 
the United States, if such provision related to internal revenue or 
customs taxation of spirits, wines, or beer, or if such an offense shall 
have been compromised with the person on payment of penalties or 
otherwise, or
    (2) Any felony under a law of any State or the District of Columbia, 
or the United States, prohibiting the manufacture, sale, importation, or 
transportation of spirits, wine, beer, or other intoxicating liquor.
    (b) Appeal. Where a bond or consent of surety is disapproved by the 
appropriate TTB officer, the person giving the bond may appeal to the 
Administrator, who will hear such appeal. The decision of the 
Administrator shall be final.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551))



Sec. Sec.  19.238-19.240  [Reserved]



Sec.  19.241  Operations bond--distilled spirits plant and adjacent bonded wine cellar.

    (a) General. A wine cellar under the provisions of 27 CFR part 24 
shall be treated as being adjacent to a distilled spirits plant if--
    (1) Such distilled spirits plant is qualified under subpart G for 
the production of distilled spirits; and
    (2) Such wine cellar and distilled spirits plant are operated by the 
same person (or in the case of a corporation, by such corporation and 
its controlled subsidiaries). For the purpose of this section a 
controlled subsidiary is a corporation where more than 50 percent of the 
voting power is controlled by the parent corporation.

[[Page 397]]

    (b) Bond in lieu of wine cellar bond. In the case of an adjacent 
bonded wine cellar, a bond furnished under this subpart which covers 
operations at such bonded wine cellar shall be in lieu of any bond which 
would otherwise be required under 26 U.S.C. 5354 with respect to such 
wine cellar (other than supplemental bonds required under the second 
sentence of 26 U.S.C. 5354) and the operations bond listed in Sec.  
19.245(a)(1).
    (c) Liability. Bonds given under this section shall contain the 
terms and conditions of the bonds in lieu of which they are given. The 
total amount of such operations bond shall be available for the 
satisfaction of any liability incurred under the terms or conditions of 
such bond.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-299, 55 
FR 24989, June 19, 1990]



Sec.  19.242  Area operations bond.

    Any person (or, in the case of a corporation, a corporation and its 
controlled subsidiaries) operating more than one plant in a region may 
give an area operations bond covering the operation of any two or more 
of such plants, and any bonded wine cellars which are adjacent to such 
plants and which otherwise could be covered by an operations bond. For 
the purpose of this section, a controlled subsidiary is a corporation 
where more than 50 percent of the voting power is controlled by the 
parent corporation. Bonds given under this section shall be in lieu of 
the bonds which would be required under Sec.  19.245(a) and shall 
contain the terms and conditions of such bonds. If the area operations 
bond covers the operations of more than one corporation, each 
corporation shall be shown as principal, and the bond shall be signed 
for each corporation. The total amount of the area operations bond shall 
be available for the satisfaction of any liability incurred under the 
terms or conditions of such bond.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.243  Withdrawal bond.

    Any person (or, in the case of a corporation, a corporation and its 
controlled subsidiaries) operating one or more distilled spirits plants 
within a region and who intends to withdraw spirits from bond on 
determination, but before payment, of the tax shall, before making any 
such withdrawal, furnish a withdrawal bond to secure payment of the tax 
on all spirits so withdrawn. Such bond shall be in addition to the 
operations bond, and if the distilled spirits are withdrawn under the 
withdrawal bond, the operations bond shall no longer cover liability for 
payment of the tax on the spirits withdrawn. For the purpose of this 
section, a controlled subsidiary is a corporation where more than 50 
percent of the voting power is controlled by the parent corporation. The 
bond, if it covers more than one plant, shall show as to each plant 
covered by the bond the part of the total sum which represents the penal 
sum (computed in accordance with Sec.  19.245) for each such plant. If 
the penal sum of the bond covering a plant, or the penal sum allocated 
to any plant (where the bond covers more than one plant), is in an 
amount less than the maximum prescribed in Sec.  19.245, withdrawals 
from such plant shall not exceed the quantity permissible, as reflected 
by the penal sum in the bond for such plant. Such withdrawal bond shall 
be conditioned that the total amount of the bond shall be available for 
satisfaction of any liability incurred under the terms and conditions of 
such bond.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.244  Unit bond.

    Any person (or, in the case of a corporation, a corporation and its 
controlled subsidiaries) who would otherwise be required to give bonds 
for both operations at one or more distilled spirits plants (and any 
adjacent bonded wine cellars) and withdrawals from one or more distilled 
spirits plants within a reigon may, in lieu of furnishing separate bonds 
for operations and withdrawals, furnish a unit bond containing the terms 
and conditions of the bonds

[[Page 398]]

in lieu of which it is given. For the purpose of this section, a 
controlled subsidiary is a corporation where more than 50 percent of the 
voting power is controlled by the parent corporation. The unit bond 
shall show as to each plant covered by the bond the part of the total 
sum which represents the penal sum (computed in accordance with Sec.  
19.245) for operations at and withdrawals from each plant. If the penal 
sum of the bond covering a plant, or the penal sum allocated to any 
plant (if the bond covers more than one plant), is in an amount less 
than the maximum prescribed in Sec.  19.245, operations at and/or 
withdrawals from such plant shall not exceed the quantity permissible as 
reflected by the penal sum in the bond for such plant. The unit bond 
shall be conditioned that the total amount of the bond shall be 
available for satisfaction of any liability incurred under the terms and 
conditions of such bond.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.245  Bonds and penal sums of bonds.

    The bonds, and the penal sums thereof, required by this subpart, are 
as follows:

                                                    Penal Sum
----------------------------------------------------------------------------------------------------------------
                 Type of bond                                    Basis                    Minimum      Maximum
----------------------------------------------------------------------------------------------------------------
(a) Operations bond:
  (1) One plant bond--
    (i) Distiller.............................  The amount of tax on spirits produced        $5,000     $100,000
                                                 during a period of 15 days.
    (ii) Warehouseman:
      (A) General.............................  The amount of tax on spirits and wines        5,000      200,000
                                                 deposited in, stored on, and in
                                                 transit to bonded premises.
      (B) Limited to storage of spirits in      ......do..............................        5,000       50,000
       packages to a total of not over 50,000
       proof gallons.
    (iii) Distiller and warehouseman..........  The amount of tax on spirits produced        10,000      200,000
                                                 during a period of 15 days, and the
                                                 amount of tax on spirits and wines
                                                 deposited, in stored on, and in
                                                 transit to bonded premises.
    (iv) Distiller and processor..............  The amount of tax on spirits produced        10,000      200,000
                                                 during a period of 15 days, and the
                                                 amount of tax on spirits, denatured
                                                 spirits, articles, and wines
                                                 deposited in, stored on, and in
                                                 transit to bonded premises.
    (v) Warehouseman and processor:
      (A) General.............................  The amount of tax on spirits,                10,000      250,000
                                                 denatured spirits, articles, and
                                                 wines deposited in, stored on, and in
                                                 transit to bonded premises.
      (B) Limited to storage of spirits or      ......do..............................       10,000       50,000
       denatured spirits in packages to a
       total of not over 50,000 proof gallons,
       and processing of spirits or denatured
       spirits so stored.
    (vi) Distiller, warehouseman, and           The amount of tax on spirits produced        15,000      250,000
     processor.                                  during a period of 15 days, and the
                                                 amount of tax on spirits, denatured
                                                 spirits, articles, and wines
                                                 deposited in, stored on, and in
                                                 transit to bonded premises.
  (2) Adjacent bonded wine cellars--
    (i) Distiller and bonded wine cellar......  The sum of the amount of tax                  6,000      150,000
                                                 calculated in (a)(1)(i) and with
                                                 respect to bonded wine cellar
                                                 operations, the amount of tax on
                                                 wines and wine spirits possessed and
                                                 in transit.
    (ii) Distiller, warehouseman and bonded     The sum of the amount of tax                 11,000      250,000
     wine cellar.                                calculated in (a)(1)(iii) and with
                                                 respect to bonded wine cellar
                                                 operations, the amount of tax on
                                                 wines and wine spirits possessed and
                                                 in transit.

[[Page 399]]

 
    (iii) Distiller, processor and bonded wine  The sum of the amount of tax                 11,000      250,000
     cellar.                                     calculated in (a)(1)(iv) and with
                                                 respect to bonded wine cellar
                                                 operations, the amount of tax on
                                                 wines and wine spirits possessed and
                                                 in transit.
    (iv) Distiller, warehouseman, processor     The sum of the amount of tax                 16,000      300,000
     and bonded wine cellar.                     calculated in (a)(1)(vi) and with
                                                 respect to bonded wine cellar
                                                 operations, the amount of tax on
                                                 wines and wine spirits possessed and
                                                 in transit.
(b) Area operations bond:                       The penal sum shall be calculated in
                                                 accordance with the following table:
---------------------------------------------------------------------------------------
Total penal sums as determined under (a)        Requirements for penal sum of area
                                                 operations bond
---------------------------------------------------------------------------------------
Not over $300,000.............................  100 percent.
Over $300,000 but not over $600,000...........  $300,000 plus 70 percent of excess
                                                 over $300,000.
Over $600,000 but not over $1,000,000.........  $510,000 plus 50 percent of excess
                                                 over $600,000.
Over $1,000,000 but not over $2,000,000.......  $710,000 plus 35 percent of excess
                                                 over $1,000,000.
Over $2,000,000...............................  $1,060,000 plus 25 percent of excess
                                                 over $2,000,000.
---------------------------------------------------------------------------------------
(c) Withdrawal bond:
  (1) One plant qualified for distilled         The amount of tax which, at any one           1,000    1,000,000
   spirits operations.                           time, is chargeable against such bond
                                                 but has not been paid.
  (2) Two or more plants in a region qualified  Sum of the penal sums for each plant         (\1\ )       (\2\ )
   for distilled spirits operations.             calculated in (c)(1) of this section.
(d) Unit bond:
  (1) Both operations at a distilled spirits    Total penal sums of (a) and (c)(1) of         6,000    1,300,000
   plant (and any adjacent bonded wine cellar)   this section.
   and withdrawals from the bonded premises of
   the same distilled spirits plant.
  (2) Both operations at two or more distilled  Total penal sums of (b) and (c)(2) of        (\3\ )       (\4\ )
   spirits plants (and any adjacent bonded       this section in lieu of which given.
   wine cellar) within the same region and
   withdrawals from the bonded premises of the
   same distilled spirits plants.
----------------------------------------------------------------------------------------------------------------
\1\ Sum of the minimum penal sums required for each plant covered by the bond.
\2\ Sum of the maximum penal sums required for each plant covered by the bond. (The maximum penal sum for one
  plant is $1,000,000.)
\3\ Sum of the minimum penal sums for operations and withdrawal bonds required for each plant covered by the
  bond.
\4\ Sum of the maximum penal sums for area operations bonds and withdrawal bonds required for the plants covered
  by the unit bond.


(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.246  Strengthening bonds.

    In all cases when the penal sum of any bond becomes insufficient, 
the principal shall either give a strengthening bond with the same 
surety to attain a sufficient penal sum, or give a new bond to cover the 
entire liability. Strengthening bonds will not be approved where any 
notation is made thereon which is intended, or which may be construed, 
as a release of any former bond, or as limiting the amount of any bond 
to less than its full penal sum. Strengthening bonds shall show the 
current date of execution and the effective date.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551); 
sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))

[[Page 400]]

                        New or Superseding Bonds



Sec.  19.247  General.

    New bonds shall be required in case of insolvency or removal of any 
surety, and may, at the discretion of the appropriate TTB officer, be 
required in any other contingency affecting the validity or impairing 
the efficiency of such bond. Executors, administrators, assignees, 
receivers, trustees, or other persons acting in a fiduciary capacity, 
continuing or liquidating the business of the principal, shall execute 
and file a new bond or obtain the consent of the surety or sureties on 
the existing bond or bonds. When, under the provisions of Sec.  19.250, 
the surety on any bond given under this subpart has filed an application 
to be relieved of liability under said bond and the principal desires or 
intends to continue the business of operations to which such bond 
relates, he shall file a valid superseding bond to be effective on or 
before the date specified in the surety's notice. New or superseding 
bonds shall show the current date of execution and the effective date.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended, 1394, as amended 
(26 U.S.C. 5175, 5176, 5551); sec. 805(c), Pub. L. 96-39, 93 Stat. 276 
(26 U.S.C. 5173))



Sec.  19.248  New or superseding bond.

    (a) Operations bond. When a new or superseding operations bond is 
not given as required in Sec.  19.247, the principal shall immediately 
discontinue the business or distilled spirits operations to which such 
bond relates.
    (b) Withdrawal bond. When a new or superseding withdrawal bond is 
not given as required by Sec.  19.247, the principal may not withdraw 
any distilled spirits from bonded premises (other than distilled spirits 
withdrawn under 26 U.S.C. 5214 or 7510) except on prior payment of tax.
    (c) Unit bond. When a new or superseding unit bond is not given as 
required by Sec.  19.247, the principal shall immediately discontinue 
the business or distilled spirits operations to which such bond relates 
and may not withdraw any distilled spirits from bonded premises (other 
than distilled spirits withdrawn under 26 U.S.C. 5214 or 7510) except on 
prior payment of tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5175, 
5176); sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))

                          Termination of Bonds



Sec.  19.249  Termination of bonds.

    Operations, withdrawal, or unit bonds may be terminated as to 
liability for future withdrawals and/or to future production or 
deposits.
    (a) Pursuant to application of the surety as provided in Sec.  
19.250.
    (b) On approval of a superseding bond.
    (c) On notification by the principal that he has discontinued 
withdrawals under the bond if such bond was filed solely as a withdrawal 
bond, or
    (d) On notification by the principal that he has discontinued 
business.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5175, 
5176); sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.250  Application of surety for relief from bond.

    A surety on any operations, withdrawal, or unit bond may at any time 
in writing notify the principal and the appropriate TTB officer in whose 
office the bond is on file that he desires, after a date named, to be 
relieved of liability under said bond. Such date shall be not less than 
10 days after the date the notice is received by the appropriate TTB 
officer in the case of a withdrawal bond, and not less than 90 days 
after the date the notice is received in the case of an operations or 
unit bond. The surety shall also file with the appropriate TTB officer 
an acknowledgment or other proof of service on the principal. If such 
notice is not thereafter in writing withdrawn, the rights of the 
principal as supported by said bond shall be terminated on the date 
named in the notice, and the surety shall be relieved from liability to 
the extent set forth in Sec.  19.251.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5175, 
5176); sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.251  Relief of surety from bond.

    (a) General. The surety on an operations, withdrawal, or unit bond 
who

[[Page 401]]

has filed application for relief from liability as provided in Sec.  
19.250 shall be relieved from liability under such bond as set forth in 
this section.
    (b) Operations or unit bonds. Where a new or superseding bond is 
filed, the surety shall be relieved of future liability with respect to 
production and deposits wholly subsequent to the effective date of the 
new or superseding bond. Notwithstanding such relief, the surety shall 
remain liable for the tax on all distilled spirits or wines produced, or 
for other liabilities incurred, during the term of the bond. Where a new 
or superseding bond is not filed the surety shall, in addition to the 
continuing liabilities above specified, remain liable under the bond for 
all spirits or wines on hand or in transit to the bonded premises or 
bonded wine cellar, as the case may be, on the date named in the notice 
until all such spirits or wines have been lawfully disposed of, or a new 
bond has been filed by the principal covering the same.
    (c) Withdrawal or unit bonds. The surety shall be relieved from 
liability for withdrawals made wholly subsequent to the date specified 
in the notice, or the effective date of a new bond, if one is given.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5176,); 
sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))



Sec.  19.252  Release of pledged securities.

    Securities of the United States pledged and deposited as provided in 
Sec.  19.234 shall be released only in accordance with the provisions of 
31 CFR part 225. Such securities will not be released by the appropriate 
TTB officer until liability under the bond for which they were pledged 
has been terminated. When the appropriate TTB officer is satisfied that 
they may be released, he shall fix the date or dates on which a part or 
all of such securities may be released. At any time prior to the release 
of such securities, the appropriate TTB officer may extend the date of 
release for such additional length of time as he deems necessary.

(Ch. 290, Pub. L. 80-280, 61 Stat. 650 (31 U.S.C. 9301, 9303))



             Subpart I_Construction, Equipment and Security



Sec.  19.271  Construction of buildings

    Buildings in which spirits, denatured spirits, articles, or wines 
are produced, stored, or processed shall be constructed with substantial 
material (e.g., masonry, concrete, wood, metal, etc.), and arranged, 
equipped, and protected to provide adequate security to the revenue.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended) (26 U.S.C. 5178))



Sec.  19.272  Equipment.

    The proprietor shall provide equipment suitable for the operations 
conducted on the distilled spirits plant. The equipment shall also meet 
the needs for revenue protection.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended) (26 U.S.C. 5178))



Sec.  19.273  Tanks.

    (a) General. (1) Tanks used as receptacles for spirits, denatured 
spirits, or wines shall be located, constructed, and equipped to be 
suitable for the intended purpose and to allow ready examination.
    (2) An accurate means of measuring the contents of each tank shall 
be provided by the proprietor.
    (3) When a means of mearuring is not a permanent fixture of the 
tank, the tank shall be equipped with a fixed device to allow the 
approximate contents to be determined readily.
    (4) Tanks used for determining the tax imposed by 26 U.S.C. 5001 
shall be mounted on scales and an additional suitable device shall be 
provided so that the volume of the contents can be quickly and 
accurately determined.
    (5) The proprietor shall install walkways, landings and stairways 
which will permit safe access to all parts of a tank.
    (6) Tanks in which gauges required by this part are to be made shall 
not be used until they are accurately calibrated and a statement of 
certification of accurate calibration is included in the notice of 
registration.
    (7) If tanks or their fixed gauging devices are moved in location or 
position subsequent to original calibration, the

[[Page 402]]

tanks shall not be used until recalibrated.
    (8) All tanks shall be equipped or situated so that they may be 
locked or otherwise secured.
    (9) Any tank vents, flame arresters, foam devices, or other safety 
devices shall be constructed to prevent extraction of spirits or wines.
    (b) Scale tanks. (1) Beams or dials of scale tanks used for 
determining the tax imposed by 26 U.S.C. 5001 shall have minimum 
graduations not greater than the following:

------------------------------------------------------------------------
          Quantity to be weighed                 Minimum graduation
------------------------------------------------------------------------
Not exceeding 2,000 pounds...............  \1/2\ pound;
Between 2,000 and 6,000 pounds...........  1 pound;
Between 6,000 and 20,000 pounds..........  2 pounds;
Between 20,000 and 50,000 pounds.........  5 pounds;
Over 50,000 pounds.......................  10 pounds.
------------------------------------------------------------------------

    (2) For scales having a capacity greater than 2,000 pounds, the 
minimum quantity which may be entered onto the weighing tank scale for 
gauging for tax determination shall be the greater of
    (i) 1,000 times the minimum graduation of the scale or
    (ii) 5 percent of the total capacity of the weighing tank scale.
    (3) The weighing of lesser quantities for determination of tax may 
be authorized by the appropriate TTB officer where the beam of the scale 
is calibrated in \1/2\ pound or 1 pound graduations and it is found by 
actual test that the scales break accurately at each graduation.
    (4) Lots of spirits weighing 1,000 pounds or less shall be weighed 
on scales having \1/2\ pound graduations.
    (c) Testing of scale tanks. (1) Proprietors shall ensure the 
accuracy of scales used for weighing lots of spirits or denatured 
spirits through tests conducted at intervals of not more than 6 months, 
and whenever scales are adjusted or repaired.
    (2) Proprietors shall also test, at least once a month, the 
gallonage represented to be in a scale tank against the gallonage 
indicated by volumetric determination of the contents of the tank. 
However, if the scale is not used during a month the volumetric 
determination need only be verified at the next time actually used.
    (3) The volumetric determination shall be made in accordance with 27 
CFR part 30, and if the variation exceeds 0.5 percent of the quantities 
shown to be in the tank, the proprietor shall take appropriate steps to 
have the accuracy of the scale verified.
    (4) When an appropriate TTB officer determines that a tank scale may 
be inaccurate, the proprietor shall have the accuracy of the scale 
tested.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1320, as amended, 1358, as amended, 
1391, as amended (26 U.S.C. 5006, 5204, 5505))



Sec.  19.274  Pipelines.

    (a) General. (1) Pipelines for the conveyance of spirits, denatured 
spirits, articles, or wines shall be of permanent character and 
constructed, connected, arranged, and secured so as to afford adequate 
protection to the revenue and to permit ready examination. However, the 
appropriate TTB officer may approve pipelines which may not be readily 
examined if no jeopardy to the revenue is created.
    (2) Where a pipeline connection must be flexible, a hose may be used 
if connected and secured so as to protect the revenue.
    (b) Identification. The appropriate TTB officer may require 
permanent pipelines for conveyance of spirits or denatured spirits to be 
color coded to provide identification.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.275  Continuous distilling system.

    The distilling system shall be continuous, and designed, 
constructed, and connected in such a manner as to prevent the 
unauthorized removal of distilled spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.276  Package scales.

    Proprietors shall ensure the accuracy of scales used for weighing 
packages of spirits through tests conducted at intervals of not more 
than 6 months or whenever scales are adjusted or repaired. However, if 
the scales are not used during such period, the scales need only be 
tested prior to use. Scales used to weigh packages designed to

[[Page 403]]

hold 10 wine gallons or less shall indicate weight in ounces or in 
hundredths of a pound.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  19.277  Measuring devices and proofing instruments.

    (a) General. Proprietors shall provide for their own use accurate 
hydrometers, thermometers, and other necessary equipment to determine 
proof or volume.
    (b) Instruments. Hydrometers and thermometers used by proprietors to 
gauge spirits shall show subdivisions or graduations of proof and 
temperature which are at least as delimitated as those prescribed in 27 
CFR part 30. Proprietors shall make frequent tests of their hydrometers 
and thermometers, and, if they appear to be in error in excess of one 
subdivision, the instruments shall not be used until they are further 
tested and certified as accurate by the manufacturer or another 
qualified person.
    (c) Meters. The appropriate TTB officer may approve applications to 
measure spirits by meter for purposes other than tax determination. 
Applications shall include sufficient technical data, such as the make, 
model and accuracy tolerance, to enable the appropriate TTB officer to 
evaluate the suitability of the meter for its intended use. Corrections 
for temperature of the spirits being measured shall be made in 
conjunction with the volumetric measurement of spirits by meter. If a 
meter does not have a temperature compensating feature, temperature 
correction shall be ascertained and made from a representative sample 
taken from the spirits being measured.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  19.278  Identification of structures, areas, apparatus, and equipment.

    (a) Each room or enclosed area where spirits, denatured spirits, 
articles, wine, distilling or fermenting materials, or containers are 
held, and each building, within the plant, shall be appropriately marked 
with a distinguishing number or letter.
    (b) Each tank or receptacle for spirits, denatured spirits, or wine 
shall be marked to show a unique serial number and capacity.
    (c) Each still, fermenter, cooker, and yeast tank shall be numbered 
and marked to show its use.
    (d) All other major equipment used for processing or containing 
spirits, denatured spirits, or wine, or distilling or fermenting 
material, and all other tanks, shall be identified as to use unless the 
intended purpose is readily apparent.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.279  Office facilities.

    (a) If the appropriate TTB officer assigns on a continuing basis an 
appropriate TTB officer to a plant to supervise operations, the 
proprietor shall provide an office at the distilled spirits plant for 
the exclusive use of appropriate TTB officers in performing their 
duties. The office shall be provided with adequate office furniture, 
lighting, ventilation, heating, and toilet and lavatory facilities. A 
secure cabinet, fitted for locking with a Government lock and of 
adequate size, shall also be provided by the proprietor. The office, 
facilities, and equipment provided by the proprietor shall be subject to 
the approval of the appropriate TTB officer. Where suitable facilities 
are otherwise available, the appropriate TTB officer may waive the 
requirements for a separate Government office.
    (b) If an appropriate TTB officer is not assigned to a plant on a 
continuing basis, the appropriate TTB officer may require the proprietor 
to provide for Government use a cabinet as specified in paragraph (a) of 
this section.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.280  Signs.

    The proprietor shall place and keep conspicuously on the outside of 
his place of business a sign showing the name of the proprietor and 
denoting the business, or businesses, in which engaged.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5180))

[[Page 404]]



Sec.  19.281  Security.

    (a) General. The proprietor shall provide adequate security measures 
at the distilled spirits plant to protect the revenue.
    (b) Buildings. The buildings, rooms, and partitions shall be 
constructed of substantial materials. Doors, windows, or any other 
openings to the building shall be secured or fastened during times when 
distilled spirits plant operations are not being conducted.
    (c) Outdoor tanks. Outdoor tanks containing spirits, denatured 
spirits, or wine shall be individually locked or locked within an 
enclosure when they are not in use.
    (d) Indoor tanks. Indoor tanks containing spirits, denatured 
spirits, or wines or the rooms or buildings in which they are housed, 
shall be equipped so that they may be secured.
    (e) Approved locks. (1) Approved locks shall be used to secure:
    (i) Outdoor tanks containing spirits in the storage account or on an 
enclosure around such tanks;
    (ii) Indoor tanks containing spirits in the storage account or on 
the door from which access may be gained from the outside to the rooms 
or buildings in which such tanks are housed; and
    (iii) Any doors from which access may be gained from the outside to 
rooms or buildings containing spirits in portable bulk containers in the 
storage account.
    (2) Approved locks shall meet the following minimum specifications:
    (i) Corresponding serial number on the lock and on the key, except 
for master key locking systems;
    (ii) Case hardened shackle at least one-fourth inch in diameter, 
with heel and toe locking;
    (iii) Body width of at least 2;
    (iv) Captured key feature (key may not be removed while shackle is 
unlocked);
    (v) Tumbler with at least 5 pins; and
    (vi) Lock or key contains no bitting data.

Master key locking systems may be used at the option of the proprietor. 
Locks meeting the specifications in this section are approved locks for 
the purpose of 26 U.S.C. 5682. Proprietors who wish to use locks of 
unusual design, which do not meet the specifications in this part, shall 
submit an example or prototype of the lock to the appropriate TTB 
officer, with a request that the lock be approved for use. The 
appropriate TTB officer may require submission of the lock for testing 
prior to approval.
    (f) Additional security. Where the appropriate TTB officer finds the 
construction, arrangement, equipment, or protection inadequate, 
additional security shall be provided (i.e., fences, flood lights, alarm 
systems, guard services) or changes in construction, arrangement, or 
equipment shall be made to be extent necessary to protect the revenue.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended, 1410, as amended 
(26 U.S.C. 5178, 5682); sec. 806, Pub. L. 96-39, 93 Stat. 279 (26 U.S.C. 
5202))



Sec.  19.282  Breaking Government locks.

    Where affixed, Government locks shall not be removed without the 
authorization of the appropriate TTB officer, except where a person or 
property is in imminent danger from a disaster or other emergency. When 
a disaster or other emergency occurs, and it is impractical to first 
obtain authorization from an appropriate TTB officer, Government locks 
may be removed, by the proprietor, or by police or firefighters. When 
such action is taken, the proprietor shall see that security measures 
are taken to prevent illegal removal of spirits and, as soon as 
practical, shall notify the appropriate TTB officer of the action taken 
and submit within 5 days a written report, executed under the penalties 
of perjury, describing the emergency and the action.

(Sec. 806, Pub. L. 96-39, 93 Stat. 279 (26 U.S.C. 5202))



                          Subpart J_Production



Sec.  19.311  Notice by proprietor.

    (a) Commencement of operations. The proprietor shall, before 
commencing production operations or resuming production operations after 
having given notice of suspension, file a notice on Form 5110.34 with 
the appropriate TTB officer, specifying the date on which he

[[Page 405]]

desires to commence or resume operations for the production of spirits. 
The notice shall be filed in accordance with the instructions on the 
form. The proprietor shall not commence or resume operations prior to 
the time specified in the notice.
    (b) Suspension of operations. Any proprietor desiring to suspend 
production operations for a period of 90 days or more shall file notice 
on Form 5110.34 with the appropriate TTB officer specifying the date on 
which he will suspend operations. The notice shall be filed in 
accordance with instructions on the form. In case of an accident which 
makes it apparent that operations cannot be conducted for 90 days or 
more, the proprietor shall give immediate notice of suspension on Form 
5110.34.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1364, as amended (26 U.S.C. 5221))



Sec.  19.312  Receipt of materials.

    The quantities of fermenting and distilling materials (including 
nonpotable chemical mixtures containing spirits produced in accordance 
with Sec.  19.67), and of spirits, denatured spirits, articles, and 
spirits residues, for redistillation, received on bonded premises shall 
be determined by the proprietor, and reported as provided in subpart W 
of this part. Fermented material (except apple cider exempt from tax 
under 26 U.S.C. 5042(a)(1)) to be used in the production of spirits 
shall be produced on the bonded premises where used or must be received 
on the premises from (a) a bonded wine cellar, in the case of wine, or 
(b) a contiguous brewery where produced, in the case of beer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1365, as amended 
(26 U.S.C. 5201, 5222, 5223))



Sec.  19.313  Use of materials in production of spirits.

    The proprietor may produce spirits from any suitable material in 
accordance with statements of production procedure in his notice of 
registration. The distillation of nonpotable chemical mixtures received 
pursuant to application as provided in Sec.  19.67 shall be deemed to be 
the original and continuous distillation of the spirits in such mixtures 
and to constitute the production of spirits. Materials from which 
alcohol will not be produced may be used in production only if the use 
of the materials is described in approved statements of production 
procedure.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1353, as amended 
(26 U.S.C. 5172, 5178))



Sec.  19.314  Removal of fermenting material.

    Material received for use as fermenting material may be removed from 
or used on bonded premises for other purposes. A record of use or 
removal shall be kept as provided in subpart W of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.315  Removal or destruction of distilling material.

    Except as provided in this section, distilling material shall not be 
removed from bonded premises before being distilled. The proprietor may 
remove mash, wort, wash or other distilling material--(a) to plant 
premises, other than bonded premises for use in such businesses as may 
be authorized under Sec.  19.72; (b) to other premises for use in 
processes not involving the production of (1) spirits, (2) alcoholic 
beverages, or (3) vinegar by the vaporizing process; or (c) for 
destruction. The residue of distilling material not introduced into the 
production system may be removed from the premises if the liquid is 
expressed from the material before removal and such liquid is not 
received at any distilled spirits plant or bonded wine cellar. Residue 
of beer used as distilling material may be returned to the producing 
brewery. Distilling material produced and wine and beer received for use 
as distilling material may be destroyed. A record of removal or 
destruction shall be kept as provided in subpart W of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended, 1381, as amended 
(26 U.S.C. 5222, 5370))



Sec.  19.316  Distillation.

    The distillation of spirits shall be such that the spirits pass 
through a continuous system from the first still or other production 
equipment where access to the system would constitute

[[Page 406]]

a jeopardy to the revenue until the production of the spirits is 
completed. The distiller may, in the course of production, convey the 
product through as many distilling or other production operations as 
desired, provided the operations are continuous. Distilling operations 
are continuous when the spirits are conveyed through the various steps 
of production as expeditiously as plant operation will permit. The 
collection of unfinished spirits for the purpose of redistillation is 
not deemed to be a break in the continuity of the distilling procedure. 
However, the quantity and proof of any unfinished spirits produced from 
distilling materials, the quantity of which was ascertained in the 
manner authorized in Sec.  19.732(c) for such materials, shall be 
determined and recorded before any mingling with other materials or 
before any further operations involving the unfinished spirits outside 
the continuous system. Spirits may be held, prior to the production 
gauge, only for so long as is reasonably necessary to complete the 
production procedure.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended, 1362, as amended, 
1365, as amended (26 U.S.C. 5178, 5211, 5222))



Sec.  19.317  Treatment during production.

    Spirits may, in the course of original and continuous distillation, 
be purified or refined through, or by use of, any material which will 
not remain incorporated in the finished product. Juniper berries and 
other natural aromatics, or the extracted oils of such, may be used in 
the distillation of gin. Spirits may be percolated through or treated 
with oak chips which have not been treated with any chemical. Materials 
used in treatment of spirits, and which do not remain in the spirits, 
shall be destroyed or so treated as to preclude the extraction of 
potable spirits therefrom.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.318  Addition of caramel to rum or brandy and addition of oak chips to spirits.

    Caramel possessing no material sweetening properties may be added to 
rum or brandy on bonded premises prior to production gauge. Oak chips 
which have not been treated with any chemical may be added to packages 
prior to or after production gauge; however, notation to that effect 
shall be made on the record of production gauge as provided in Sec.  
19.319.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.319  Production gauge.

    (a) General. All spirits shall be gauged by determining quantity and 
proof within a reasonable time after production is completed. Except as 
otherwise specifically provided in this section, quantities may be 
determined by volume or by weight, by approved meter, or, when approved 
by the appropriate TTB officer, by other devices or methods which 
accurately determine the quantities. If caramel is added to brandy or 
rum, the proof of the spirits shall be determined after the addition. 
Spirits in each receiving tank shall be gauged before reduction in proof 
and both before and after each removal of spirits therefrom. The gauges 
shall be recorded by the proprietor in the records required by Sec.  
19.736.
    (b) Tax to be determined on production gauge. Tax may be determined 
on the basis of the production gauge if:
    (1) Spirits are weighed into bulk conveyances;
    (2) Spirits are uniformly filled by weight into metal packages; or
    (3) Spirits are filled by weight into packages for immediate 
withdrawal from bonded premises and the details of the gauge for each 
package are recorded on a package gauge record according to Sec.  
19.769.

Transaction records shall be marked ``Withdrawal on Production Gauge.''
    (c) Tax not to be determined on production gauge. If spirits are 
drawn from the production system into barrels, drums, or similar 
portable containers of the same rated capacity and the containers are 
filled to capacity, and the tax is not to be determined on the basis of 
the production gauge, the gauge may be made by:
    (1) Weighing in a tank, converting the weight into proof gallons, 
and determining the average content of each container; or
    (2) Measuring volumetrically, in a calibrated tank, converting the 
wine

[[Page 407]]

gallons determined into proof gallons, and determining therefrom the 
average content of each container; or
    (3) Converting the rated capacity into proof gallons to determine 
the average content of each container; or
    (4) Determining by a device or method approved under the provisions 
of paragraph (a) of this section, the total quantity filled into 
containers, and determining therefrom the average content of each 
container. Rated capacity of new cooperage shall be as prescribed by 
specifications of the manufacturer, or in the case of used cooperage, as 
determined by the proprietor.
    (d) Records of production gauge. In computing the production gauge 
on the basis of average content of packages as provided in paragraph (c) 
of this section, fractional proof gallons shall be rounded to the 
nearest one-tenth and the average content so determined and the number 
of packages filled shall be used in computing the quantity produced. A 
separate gauge record, as prescribed in Sec.  19.768, shall be prepared 
for each lot of packages filled (see Sec.  19.593(b)) and for each 
removal by pipeline or bulk conveyance for deposit in bond on the same 
plant premises. The gauge record shall indicate ``Deposit in storage'' 
or ``Deposit in processing.'' If spirits are to be transferred in bond, 
or withdrawn from bond, as authorized by this part, the production gauge 
shall be made on the form or record required by this part for the 
transaction (accompanied by a package gauge record, if required). Each 
transaction form or record and each package gauge record, if any, shall 
show:
    (1) The real name (or basic operating name as provided in Sec.  
19.280) of the producer, and, if the spirits are produced under a trade 
name, the trade name under which produced.
    (2) For each remnant container, the actual proof gallons in the 
container.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5204, 5211))



Sec.  19.320  Identification of spirits.

    At the time of production gauge, containers of spirits shall be 
identified by the proprietor in accordance with subpart R of this part. 
When the proprietor desires to enter spirits into bonded storage for 
subsequent packaging in wooden packages, he may identify such spirits 
with the specific designation to which they would be entitled if drawn 
into wooden packages, followed by the word ``Designate,'' for example, 
``Bourbon Whisky Designate.''

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1360, as amended 
(26 U.S.C. 5201, 5206))



Sec.  19.321  Entry.

    Pursuant to the production gauge, the proprietor shall make 
appropriate entry for (a) deposit of the spirits on bonded premises for 
storage or processing, (b) withdrawal of the spirits on determination of 
tax, (c) withdrawal of the spirits free of tax, (d) withdrawal of the 
spirits without payment of tax, or (e) transfer of the spirits for 
redistillation. Entry for deposit on the bonded premises of the same 
plant premises shall be made on a gauge record, prepared according to 
Sec.  19.768. When spirits are entered for deposit on another plant 
premises or are entered for withdrawal or redistillation, the applicable 
provisions of subpart K or subpart P of this part shall be followed.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5211))



Sec.  19.322  Distillates containing extraneous substances.

    (a) Use in production. Distillates containing substantial quantities 
of fusel oil, aldehydes, or other extraneous substances may be removed 
from the distilling system prior to the production gauge for addition to 
fermenting or distilling material at the distillery where produced. 
Distillates removed from the distilling system under the provisions of 
this paragraph shall be added promptly to the fermenting or distilling 
material.
    (b) Use at bonded wine cellar. Distillates containing aldehydes may 
be removed, without payment of tax, to an adjacent bonded wine cellar 
for use therein for fermentation of wine to be used as distilling 
material at the distilled spirits plant from which the distillates were 
removed. The gauge and removal of distillates to an adajcent

[[Page 408]]

bonded wine cellar shall be in accordance with applicable provisions of 
subpart P of this part relating to withdrawal of wine spirits for use in 
wine production and the receipt and use of such distillates at an 
adjacent bonded wine cellar shall be in accordance with the provisions 
of 27 CFR part 240.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1365, as amended, 
1382, as amended (26 U.S.C. 5201, 5222, 5373))

                                 Formula



Sec.  19.324  Statement of production procedure or Form 5110.38.

    (a) A statement of production procedure is required as provided in 
Sec.  19.170 for the production of spirits from original sources or 
substances.
    (b) As provided in 27 CFR 5.27, an approved formula on Form 5110.38 
is required for the redistillation of spirits in the production account.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1365, as amended, 
1395, as amended (26 U.S.C. 5201, 5222, 5223, 5555))

                          Chemical By-Products



Sec.  19.326  Spirits content of chemicals produced.

    All chemicals produced, including chemical by-products of the 
spirits production system, shall be substantially free of spirits before 
being removed from bonded premises. Except as authorized by the 
appropriate TTB officer , the spirits content of such chemicals to be 
removed from bonded premises shall not exceed 10 percent by volume. 
Proprietors shall test chemicals for spirits content. Records of the 
tests will be maintained according to Sec.  19.736.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.327  Disposition of chemicals.

    Chemicals meeting the requirements in Sec.  19.326 may be removed 
from bonded premises by pipeline or in such containers as the proprietor 
may desire. The quantities of such chemicals removed from bonded 
premises shall be determined by the proprietor and records of removals 
maintained according to Sec.  19.736. Packages of such chemicals shall 
be appropriately marked by the proprietor to show the nature of the 
contents. Samples of such chemicals may be secured by appropriate TTB 
officers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1365, as amended 
(26 U.S.C. 5201, 5222))



Sec.  19.328  Wash water.

    Water used in washing chemicals to remove spirits therefrom may be 
run into a wash tank or a distilling material tank, or otherwise 
properly destroyed or disposed of on the premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1356, as amended 
(26 U.S.C. 5008, 5201))

                               Inventories



Sec.  19.329  Production inventories.

    Each distiller shall take a physical inventory of the spirits and 
denatured spirits in tanks and other vessels in the production account 
at the close of each calendar quarter and at such other times as the 
appropriate TTB officer may require. The inventory shall show separately 
spirits and denatured spirits received for redistillation.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



                        Subpart K_Redistillation



Sec.  19.331  General.

    Distillers or processors may redistill spirits, denatured spirits, 
articles, and spirits residues. Certain products may only be redistilled 
pursuant to an approved formula on Form 5110.38, as specified in 27 CFR 
5.27.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended (26 U.S.C. 5223))



Sec.  19.332  Receipts for redistillation.

    Proprietors may receive and redistill spirits or denatured spirits 
which (a) have not been removed from bond; (b) have been withdrawn from 
bond on payment or determination of tax, and are eligible for return to 
bond as provided in subpart U of this part; (c) have been withdrawn from 
bond free of tax or without payment of tax, and are eligible for return 
to bond as provided in subpart U; or (d) have been abandoned to the 
United States and sold to the proprietor without the payment of tax.

[[Page 409]]

Proprietors may also receive and redistill recovered denatured spirits 
and recovered articles returned under the provisions of Sec.  19.683, 
and articles and spirits residues received under the provisions of Sec.  
19.684.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1365, as amended 
1370, as amended (26 U.S.C. 5201, 5223, 5243); sec. 807, Pub. L. 96-93 
Stat. 285 (26 U.S.C. 5215))



Sec.  19.333  Redistillation.

    Spirits shall not be redistilled at a proof lower than that 
prescribed for the class and type at which such spirits were originally 
produced, unless the redistilled spirits are to be used in wine 
production, to be used in the manufacture of gin or vodka, or to be 
designated as alcohol. Different kinds of spirits must be redistilled 
separately, or with distilling material of the same kind or type as that 
from which the spirits were originally produced. However, such 
restriction shall not apply when (a) brandy is redistilled into 
``spirits-fruit'' or ``neutral spirits-fruit'' (not for use in wine 
production), (b) whiskey is distilled into ``spirits-grain'' or 
``neutral spirits-grain'', (c) spirits originally distilled from 
different kinds of material are redistilled into ``spirits-mixed'' or 
``neutral spirits-mixed'', or (d) the spirits are redistilled into 
alcohol. All spirits redistilled subsequent to production gauge shall be 
treated the same as if such spirits had been originally produced by the 
redistiller and all provisions of this part and 26 U.S.C. Chapter 51 
(including liability for tax attaching to spirits at the time of 
production) applicable to the original production of spirits shall be 
applicable thereto, except that spirits recovered by redistillation of 
denatured spirits, articles, or spirits residues may not be withdrawn 
from bonded premises except for industrial use or after denaturation 
thereof. Nothing in this section shall be construed as affecting any 
provision of this chapter or of 27 CFR part 5 relating to the labeling 
of distilled spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended (26 U.S.C. 5223); 
sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5215))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



                            Subpart L_Storage



Sec.  19.341  General.

    Proprietors who are qualified as warehousemen as provided in this 
part, and who have otherwise complied with the requirements of this part 
for the storage of bulk distilled spirits and wines, shall conduct such 
operations pursuant to the provisions of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.342  Receipt and storage of bulk spirits and wines.

    (a) Deposit. All spirits entered for deposit in the storage account 
after production as provided in subpart J shall be deposited on the 
bonded premises designated in the entry for deposit. Spirits withdrawn 
from customs custody without payment of tax under the provisions of this 
part shall be received on the bonded premises to which so withdrawn and 
(unless to be immediately redistilled) shall be deposited on such 
premises. Spirits transferred in bond as provided in subpart P shall be 
deposited on the bonded premises designated on the transfer record.
    (b) Tanks. If spirits or wines are being deposited in a partially 
filled tank in storage on bonded premises, simultaneous withdrawals may 
not be made therefrom unless the flow of spirits or wines into and out 
of the tank isbeing measured by meters or other devices approved by the 
appropriate TTB officer which permit a determination of the quantity 
being deposited and the quantity being removed. Proprietors shall 
maintain records of spirits or wines in tanks in accordance with subpart 
W of this part.
    (c) Storage. Spirits or wines may be held in the storage account in 
tanks or portable bulk containers on the bonded premises. When used for 
such storage, containers shall be kept so that they can be readily 
inspected or inventoried by appropriate TTB officers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1362, as amended, 
1366, as amended, 1398, as amended (26 U.S.C. 5201, 5211, 5212, 5232, 
5601); sec. 806(a), Pub. L. 96-39, 93 Stat. 279 (26 U.S.C. 5202); sec. 
807(a), Pub. L. 96-39, 93 Stat. 286 (26 U.S.C. 5231))

[[Page 410]]



Sec.  19.343  Addition of oak chips to spirits and addition of caramel to brandy and rum.

    Oak chips which have not been treated with any chemical may be added 
to packages either prior to or after filling. When oak chips are added 
to packages, notation of such fact shall be made on all transaction 
records. Caramel possessing no material sweetening properties may be 
added to rum or brandy in packages or tanks.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

                      Filling and Changing Packages



Sec.  19.344  Filling of packages from tanks.

    Spirits or wines may be drawn into packages from storage tanks on 
bonded premises. The spirits or wines in the tank shall be gauged prior 
to filling of packages, and when only a portion of the contents of the 
tank is packaged, the spirits or wines remaining in the tank shall be 
again gauged and such gauges shall be recorded by the proprietor in 
records required by Sec. Sec.  19.740 and 19.768. The provisions of 
Sec.  19.319 regarding the filling of packages and the taking of 
production gauges of packages shall be applicable to the filling and 
gauging of packages of spirits under this section.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.345  Change of packages.

    Spirits or wines in storage may be transferred from one package to 
another. Except in the case of spirits of 190 degrees or more proof, 
each new package shall contain spirits from only one package. Packages 
shall be marked as provided in subpart R of this part. In the case of 
wines, each package shall bear the same marks as the package from which 
the wine was transferred.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

                     Mingling or Blending of Spirits



Sec.  19.346  Mingling or blending of spirits for further storage.

    The following mingling or blending operations are permissible in the 
storage account of a warehouseman:
    (a) Mingling of spirits distilled at 190 degrees or more of proof. 
Spirits distilled at 190 degrees or more of proof, whether or not 
subsequently reduced, may be mingled in storage.
    (b) Mingling of spirits distilled at less than 190 degrees of proof. 
Spirits distilled at less than 190 degrees of proof may be mingled for 
withdrawal or further storage if--
    (1) In the case of domestic spirits:
    (i) Such spirits are of the same kind; and
    (ii) Such spirits were produced in the same State.
    (2) In the case of imported spirits:
    (i) Such spirits are of the same kind;
    (ii) Such spirits were produced in the same foreign country; and
    (iii) Such spirits were treated, blended, or compounded in the same 
foreign country and the duty was paid at the same rate.
    (3) In the case of imported spirits which are recognized as 
distinctive products in 27 CFR part 5:
    (i) Such spirits are of the same kind;
    (ii) Such spirits were produced by the same proprietor in the same 
foreign country; and
    (iii) Such spirits were treated, blended, or compounded by the same 
proprietor in the same foreign country and the duty was paid at the same 
rate.
    (c) Permissible blending of beverage rums or brandies. Fruit 
brandies distilled from the same kind of fruit at not more than 170 
degrees of proof may, for the sole purpose of perfecting such brandies 
according to commercial standards, be blended with each other, or with 
any blend of such fruit brandies in storage. Rums may, for the sole 
purpose of perfecting them according to commercial standards, be blended 
with each other, or with any blend of rums.
    (d) Packaging of mingled spirits or blended rums and brandies. 
Packaging after mingling or blending shall be conducted under the 
provisions of Sec.  19.344. If so desired, the mingled or blended

[[Page 411]]

spirits may be returned to the packages from which they were dumped for 
mingling or blending, or as many of such packages as are necessary.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1362, as amended 
(26 U.S.C. 5201, 5214))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-259, 52 
FR 41423, Oct. 28, 1987]



Sec.  19.347  Packages dumped for mingling.

    When dumping packages of spirits of less than 190 degrees of proof 
for mingling in the storage account, the proprietor shall record such 
mingling on the tank record prescribed in Sec.  19.742 covering such 
tank. When packages of spirits of 190 degrees or more of proof are to be 
mingled, the proprietor shall record such mingling in the tank summary 
record prescribed in Sec.  19.743 for all tanks of spirits of 190 
degrees or more of proof. Each package of spirits to be mingled under 
this subpart shall be examined by the proprietor, and if any package 
bears evidence of loss due to theft or unauthorized voluntary 
destruction, such package shall not be dumped until the appropriate TTB 
officer has been notified.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.348  Determining age of mingled spirits.

    When spirits are mingled, the age of the spirits for the entire lot 
shall be the age of the youngest spirits contained in the lot.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.349  Mingled spirits or wines held in tanks.

    When spirits of less than 190 degrees of proof or wines are mingled 
in a tank, the proprietor shall gauge the spirits or wines in the tank 
and record the mingling gauge on the tank record prescribed in Sec.  
19.742.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

                               Inventories



Sec.  19.353  Storage inventories.

    Each warehouseman shall take a physical inventory of all spirits and 
wines held in the storage account in tanks and other vessels (except 
packages) at the close of each calendar quarter and at such other times 
as the appropriate TTB officer may require. The inventory shall 
separately identify spirits and wines. The results of the inventory 
shall be recorded in accordance with subpart W of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Subpart M_Processing Operations Other Than Denaturation and Manufacture 
                               of Articles



Sec.  19.371  General.

    Proprietors, who are qualified as processors as provided in this 
part, shall conduct operations relating to the manufacture, treatment, 
mixing or bottling of distilled spirits on bonded premises pursuant to 
the provisions of this subpart. Proprietors, who conduct operations 
relating to the denaturation of spirits or the manufacture of articles 
on bonded premises, pursuant to the provisions of subpart N of this 
part, shall be qualified as processors.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

   Receipt and Use of Spirits, Wines and Alcoholic Flavoring Materials



Sec.  19.372  Receipt of spirits, wines and alcoholic flavoring materials for processing.

    (a) Proprietors may receive into the processing account--
    (1) Bulk spirits (i) from the production or storage account at the 
same plant, (ii) by transfer in bond from another distilled spirits 
plant, or (iii) on withdrawal from customs custody under 26 U.S.C. 5232;
    (2) Wines (i) from the storage account at the same plant, or (ii) by 
transfer in bond from a bonded wine cellar or another distilled spirits 
plant;
    (3) Spirits returned to bond under the provisions of 26 U.S.C. 5215; 
or
    (4) Alcoholic flavoring materials.

[[Page 412]]

    (b) Spirits and wines received in bulk containers or conveyances 
shall be recorded as dumped on receipt, but may be retained in the 
containers or conveyances in which received until used. Spirits and 
wines received by pipeline shall be deposited in tanks, gauged by the 
proprietor, and recorded as dumped. Alcoholic flavoring materials may be 
retained in the containers in which received or may be transferred to 
another container if the proprietor marks or otherwise indicates 
thereon, the full identification of the original container, the date of 
receipt, and the quantity deposited. Alcoholic flavoring materials and 
nonalcoholic ingredients shall be considered dumped when mixed with 
spirits or wines. The proof gallon content of spirits, wines, and 
alcoholic flavoring materials shall be determined at the time of 
dumping.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.373  Use of spirits, wines and alcoholic flavoring materials.

    A proprietor shall prepare a dump/batch record according to Sec.  
19.748 for spirits, wines, alcoholic flavoring materials, and 
nonalcoholic ingredients used in the manufacture of a distilled spirits 
product as follows:
    (a) Dump record. When spirits, wines, or alcoholic flavoring 
materials are dumped for use in the manufacture of a distilled spirits 
product, and when spirits are dumped for redistillation in the 
processing account, the proprietor shall prepare a dump record.
    (b) Batch record. The proprietor shall prepare a batch record to 
report:
    (1) The dumping of spirits which are to be used immediately and in 
their entirety in preparing a batch of a product manufactured under an 
approved formula;
    (2) The use of spirits or wines previously dumped, reported on dump 
records and retained in tanks or receptacles; and
    (3) Any combination of ingredients in paragraphs (b) (1) and (2) of 
this section used in preparing a batch of a product manufactured under 
an approved formula.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.374  Manufacture of nonbeverage products, intermediate products, or eligible flavors.

    Distilled spirits and wine may be used for the manufacture of 
flavors or flavoring extracts of a nonbeverage nature as intermediate 
products to be used exclusively in the manufacture of other distilled 
spirits products on bonded premises. Nonbeverage products on which 
drawback will be claimed, as provided in 26 U.S.C. 5131-5134, may not be 
manufactured on bonded premises. Premises used for the manufacture of 
nonbeverage products on which drawback will be claimed must be separated 
from bonded premises. For purposes of computing an effective tax rate, 
flavors manufactured on either the bonded or general premises of a 
distilled spirits plant are not eligible flavors.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-297, 55 FR 18063, Apr. 30, 1990]

                               Obscuration



Sec.  19.376  Determining obscuration.

    Proprietors may determine the proof obsecuration as prescribed in 27 
CFR Sec.  30.32 of spirits to be bottled on the basis of a 
representative sample taken: (a) from a storage tank incident to the 
transfer of the spirits to the processing account, or (b) from a tank 
after the spirits have been dumped for processing, whether or not 
combined with other alcoholic ingredients. The obscuration shall be 
determined after the sample has been reduced to within one degree of the 
proof at which the spirits will be bottled. Only water may be added to a 
lot of spirits to be bottled for which the determination of proof 
obscuration is made from a sample under this section. The proof 
obscuration for products gauged pursuant to this section shall be 
frequently verified by testing samples taken from bottling tanks prior 
to commencement of bottling.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[[Page 413]]

                                Formulas



Sec.  19.378  Formula requirements.

    An approved formula on TTB Form 5110.38 must be secured for spirits 
for domestic use or export as provided in 27 CFR 5.26-5.27 before 
processors may blend, mix, purify, refine, compound or treat spirits in 
any manner which results in a change of character, composition, class or 
type of the spirits including redistillation as provided in Sec.  
19.331, and the production of gin or vodka by other than original and 
continuous distillation.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1395, as amended 
(26 U.S.C. 5201, 5555))

              Bottling, Packaging, and Removal of Products



Sec.  19.381  Removals from processing.

    Spirits shall not be transferred from processing to the storage 
account. Processors may remove--
    (a) Spirits upon tax determination or withdrawal under the 
provisions of 26 U.S.C. 5214 or 26 U.S.C. 7510;
    (b) Spirits to the production account at the same plant for 
redistillation;
    (c) Bulk spirits by transfer in bond to the production or the 
processing account at another distilled spirits plant for redistillation 
or further processing;
    (d) Spirits or wines for authorized voluntary destruction; or
    (e) Wines by transfer in bond to a bonded wine cellar or to another 
distilled spirits plant. However, wine may not be removed from the 
bonded premises of a distilled spirits plant for consumption or sale as 
wine. Spirits may be bottled and cased for removal. Spirits or wines may 
be removed in any approved bulk container, by pipeline or in bulk 
conveyances on compliance with the provisions of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1320, as amended, 
1323, as amended, 1356, as amended, 1360, as amended, 1362, as amended, 
1365, as amended, 1380, as amended (26 U.S.C. 5001, 5006, 5008, 5201, 
5206, 5212, 5214, 5223, 5362))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-230, 51 
FR 21748, June 16, 1986]



Sec.  19.382  Bottling tanks.

    All spirits shall be bottled from tanks listed and certified as 
accurately calibrated in the notice of registration. However, the 
appropriate TTB officer may authorize bottling from original packages or 
special containers where it is impracticable to use a bottling tank. 
Bottlers desiring to bottle from packages or special containers shall 
file notice with the appropriate TTB officer. The notice shall show the 
necessity for the operations.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.383  Bottling tank gauge.

    When a distilled spirits product is to be bottled or packaged, the 
proprietor shall gauge the product, on completion of any filtering, 
reduction, or other treatment, and prior to commencement of bottling or 
packaging. Any gauge made under this section shall be made at labeling 
or package marking proof while the product is in the tank from which it 
is to be bottled or packaged, and the details of the gauge shall be 
entered on the bottling and packaging record prescribed in Sec.  19.749.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.384  Preparation of bottling or packaging record.

    The proprietor shall prepare a record for each batch of spirits 
bottled or packaged according to the specifications in Sec.  19.749.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.385  Labels to agree with contents of tanks and containers.

    Labels affixed to containers shall agree in every respect with the 
spirits in the tanks from which the containers were filled. If they do 
not the proprietor shall relabel such spirits with a proper label. The 
proprietor's records shall be such that they will enable appropriate TTB 
officers to readily determine, by case or package serial number, which 
label was used on any given filled container.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[[Page 414]]



Sec.  19.386  Alcohol content and fill.

    (a) General. (1) At representative intervals during bottling 
operations, proprietors shall test and examine bottled spirits to 
determine whether those spirits agree in alcohol content and quantity 
(fill) with that stated on the label or bottle.
    (2) If the appropriate TTB officer finds that a proprietor's test 
procedures do not protect the revenue and ensure label accuracy of the 
bottled product, the appropriate TTB officer may require corrective 
measures.
    (b) Variations in alcohol content and fill. The proprietor shall 
rebottle, recondition, or relabel spirits if the bottle contents do not 
agree with the respective data on the label or bottle as to:
    (1) Quantity (fill), except for such variation as may occur in 
filling conducted in compliance with good commercial practice with an 
overall objective of maintaining 100 percent fill for spirits bottled; 
and/or
    (2) Alcohol content, subject to a normal drop in alcohol content 
which may occur during bottling operations not to exceed:
    (i) 0.25 percent alcohol by volume for products containing solids in 
excess of 600 mg per 100 ml, or
    (ii) 0.25 percent alcohol by volume for all spirits products bottled 
in 50 or 100 ml size bottles, or
    (iii) 0.15 percent alcohol by volume for all other spirits and 
bottle sizes.

For example, a product with a solids content of less than 600 mg per 100 
ml, labeled as containing 40 percent alcohol by volume and bottled in a 
750 ml bottle, would be acceptable if the test for alcohol content found 
that it contained 39.85 percent alcohol by volume.
    (c) Records. Proprietors shall record the results of all tests of 
alcohol content and quantity (fill) in the record required by Sec.  
19.750.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1394, as amended 
(26 U.S.C. 5201, 5301)

[51 FR 36395, Oct. 10, 1986, as amended by T.D. ATF-288, 54 FR 47770, 
Nov. 17, 1989]



Sec.  19.387  Completion of bottling.

    When the contents of a bottling tank are not completely bottled at 
the close of the day, the bottler shall make entries on the bottling and 
packaging record covering the total quantity bottled that day from the 
tank. Entries shall be made not later than the morning of the following 
business day unless the bottler maintains auxiliary or supplemental 
records as provided in Sec.  19.731.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.388  Cases.

    (a) General. (1) On completion of bottling, the filled bottles with 
labels and properly affixed closures or other devices shall be placed in 
cases, and the cases shall be sealed.
    (2) Each case of spirits filled shall be marked as prescribed by 
subpart R of this part before removal from such premises.
    (b) Unsealed cases. (1) Cases may be temporarily retained on bonded 
premises without being sealed pending the affixing to bottles of any 
required labels, State stamps, or seals.
    (2) Unsealed cases containing bottles without labels shall be marked 
in accordance with subpart R of this part, and segregated from other 
cases on bonded premises pending affixing of the labels, State stamps, 
or seals.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1360, as amended 
(26 U.S.C. 5201, 5206))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23951, June 7, 1985]



Sec.  19.389  Remnants.

    Where incident to bottling there remain bottles less than the number 
necessary to fill a case, the bottles, after being affixed with closures 
or other devices and labeled, may be marked as a remnant case as 
provided in subpart R of this part or kept uncased on the bonded 
premises until spirits of the same kind are again bottled. Appropriate 
notation shall be made on the bottling and packaging record to cover the 
bottling and disposition of the remnant. If the remnant is subsequently 
used to complete the filling of a case, an accounting shall be made on 
the subsequent bottling and packaging record showing the use of the 
remnant

[[Page 415]]

by adding the remnant gallonage to the quantity to be accounted for 
together with appropriate notation explaining the transactions.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1360, as amended 
(26 U.S.C. 5201, 5206))

[T.D. ATF-206, 50 FR 23951, June 7, 1985]



Sec.  19.390  Filling packages.

    Spirits may be drawn into packages from a tank (conforming to the 
requirements of Sec.  19.273). Such packages shall be gauged by the 
proprietor, and he shall report the details of such gauge on a package 
gauge record, according to Sec.  19.769, and attach a copy of the 
package gauge record to each copy of the bottling and packaging record 
covering the product. Such packages shall be marked as prescribed by 
subpart R of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.391  Removals by bulk conveyances or pipelines.

    When the spirits in the processing accounts are to be removed in 
bulk conveyances or by pipeline, the proprietor shall record the filling 
of the conveyance or the transfer by pipeline on the bottling and 
packaging record. The spirits shall be removed from bonded premises in 
accordance with subpart P of this part. The cosignor shall forward to 
the consignee a statement of composition or a copy of any formula under 
which such spirits were processed for determining the proper use of the 
spirits, or for the labeling of the finished product. Bulk conveyances 
shall be marked as provided in subpart R of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-206, 50 FR 23951, June 7, 1985]



Sec.  19.392  Rebottling.

    When the spirits are dumped for rebottling, the proprietor shall 
prepare a bottling and packaging record, appropriately modified. If the 
spirits were originally bottled by another proprietor, a statement from 
the original bottler consenting to the rebottling must be secured by the 
proprietor.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.393  Reclosing and relabeling.

    The proprietor may reclose or relabel distilled spirits, either 
before removal from bonded premises or after return thereto. The 
reclosing or relabeling of spirits returned to bonded premises shall be 
done immediately, and the spirits promptly removed. When spirits were 
originally bottled by another proprietor, the relabeling proprietor 
shall have on file a statement from the original bottler consenting to 
the relabeling. When spirits are relabeled, the proprietor shall have a 
certificate of label approval or certificate of exemption from label 
approval issued under 27 CFR part 5 for labels used on relabeled 
spirits. The proprietor shall prepare a separate record according to 
Sec.  19.747 to cover the relabeling or reclosing. For spirits returned 
to bond under 26 U.S.C. 5215(c), the proprietor shall annotate such 
information on the record.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1358, as amended 
(26 U.S.C. 5201, 5205); sec. 807, Pub. L. 96-39, 93 Stat. 280 (26 U.S.C. 
5215))

[T.D. ATF-206, 50 FR 23951, June 7, 1985]



Sec.  19.394  Bottled-in-bond spirits.

    Spirits which are labeled as bottled-in-bond for domestic 
consumption shall meet the requirements in 27 CFR part 5 and shall bear 
a closure or other device as required by subpart T of this part.

(Approved by the Office of Management and Budget under control number 
1512-0189)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-206, 50 FR 23951, June 7, 1985]



Sec.  19.395  Labels for export spirits.

    All bottles containing spirits bottled for export shall have 
securely affixed thereto a label showing the following:
    (a) Kind of spirits;
    (b) Percent-alcohol-by-volume of the spirits;

[[Page 416]]

    (c) Net contents, unless the markings on the bottle indicate such 
contents; and
    (d) The name (or, if desired, the trade name) of the bottler.

The bottler may place on the label any additional information that he 
may desire if it is not inconsistent with the required information. The 
label information may be stated in the language of the country to which 
the spirits are to be exported provided the proprietor maintains on file 
an English translation of the information. The net contents and proof 
may be stated in the units of measurement of the foreign country 
provided the proprietor maintains a record of the equivalent units as 
they would be required to be expressed if bottled for domestic 
consumption. The appropriate TTB officer may waive the requirement of 
showing any of the information required by this section, other than the 
kind of spirits, upon a showing that the country to which the spirits 
are to be exported prohibits the showing of such information. With 
respect to kind of spirits, the appropriate TTB officer may waive the 
designation required by 27 CFR 5.22, only to the extent that the label 
need not bear the word ``diluted'' on distilled spirits bottled below 
the minimum bottling proof, provided this is in accordance with the 
rules of the countries to which such product is to be exported.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1374, as amended 
(26 U.S.C. 5201, 5301))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-237, 51 
FR 36395, Oct. 10, 1986; T.D. ATF-283, 54 FR 11704, Mar. 22, 1989]



Sec.  19.396  Spirits removed for shipment to Puerto Rico.

    Spirits removed for shipment to Puerto Rico with benefit of drawback 
or without payment of tax under the provisions of 27 CFR part 28 are 
subject to the provisions of 27 CFR part 5 in respect to labeling 
requirements and standards of fill for bottles.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, (26 U.S.C. 5201))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3829, Jan. 27, 2004]



Sec.  19.397  Spirits not originally intended for export.

    Spirits manufactured, produced, bottled in bottles, packed in 
containers, or which are packaged in casks or other bulk containers in 
the United States, originally intended for domestic use may be exported 
with benefit of drawback or without payment of tax if the cases or bulk 
containers are marked as required by 27 CFR part 28. The proprietor may 
relabel the spirits to show any of the information provided for in Sec.  
19.395. When the proprietor desires to file a claim for drawback on 
spirits prepared for export under this section, the provisions of 27 CFR 
28.195b shall be followed. When the proprietor desires to withdraw 
spirits without payment of tax, he shall file a notice in accordance 
with 27 CFR 28.92.

(Approved by the Office of Management and Budget under control number 
1512-0189)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1358, as amended, 
1362, as amended (26 U.S.C. 5062, 5205, 5214))

[T.D. ATF-206, 50 FR 23951, June 7, 1985, as amended by T.D. TTB-8, 69 
FR 3829, Jan. 27, 2004]



Sec.  19.398  Alcohol.

    (a) Containers. Subject to the provisions of subpart R of this part, 
alcohol for industrial use may be put in bottles, packages, or other 
containers. Proprietors shall comply with the provisions in subpart S of 
this part when alcohol for nonindustrial domestic use is bottled.
    (b) Closures. Closures or other devices shall be affixed to 
containers of alcohol as provided in subpart T of this part.
    (c) Bottle labels. All bottles of alcohol for industrial use shall 
have affixed thereto a label showing ``Alcohol'' and the name and plant 
number of the bottler. The bottler may place on the label additional 
information, if it is not inconsistent with the required information.

[[Page 417]]

    (d) Case marks. Each case of bottled alcohol shall bear the marks 
prescribed therefor in subpart R of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1369, as amended 
(26 U.S.C. 5201, 5206, 5235, 5301))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23952, June 7, 1985]

                                 Records



Sec.  19.400  Daily summary record of spirits bottled or packaged.

    The proprietor shall maintain a separate daily summary record of 
spirits bottled or packaged as provided in Sec.  19.751.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

                               Inventories



Sec.  19.401  Inventories of wines and bulk spirits (except in packages) in processing account.

    Each proprietor shall take a physical inventory of wines and bulk 
spirits (except in packages) in the processing account at the close of 
each calendar quarter, and at such other time as the appropriate TTB 
officer may require. The results of the inventory shall be recorded in 
accordance with subpart W of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.402  Inventories of bottled and packaged spirits.

    (a) Physical inventories. (1) Physical inventories of bottled and 
packaged spirits in the processing account shall be taken for the return 
periods ending June 30 and December 31 of each year, and for other 
return periods as may be required by the appropriate TTB officer.
    (2) Physical inventories may be taken within a period of a few days 
before or after June 30 or December 31 (or other dates approved by the 
appropriate TTB officer, if:
    (i) Such period does not include more than one complete weekend; and
    (ii) Necessary adjustments are made to reflect pertinent 
transactions, so that the recorded inventories will agree with the 
actual quantities of bottled or packaged spirits on hand in processing 
at the prescribed times.
    (3) On approval of an application filed with the appropriate TTB 
officer, required physical inventories may be taken on dates other than 
June 30 and December 31 if the dates established for taking such 
inventories:
    (i) Coincide with the end of a return period, and
    (ii) Are approximately six months apart.
    (4) On approval of the application, the designated inventory dates 
shall take effect with the first inventory scheduled to be taken within 
six months of the previous June 30 or December 31 inventory.
    (b) Waiver of physical inventory. (1) The appropriate TTB officer, 
on receipt of an application, may relieve a proprietor of the 
requirement of taking the June 30 or December 31 physical inventory, (or 
other date approved under paragraph (a) of this section) if he finds 
that only one such inventory during any 24 consecutive return periods is 
necessary.
    (2) The appropriate TTB officer may reimpose the requirement for the 
waived inventory if he finds that it is necessary for law enforcement or 
protection of the revenue.
    (c) Notification of physical inventory. Whenever a physical 
inventory of bottled or packaged spirits is to be taken, the proprietor 
shall, at least 5 business days in advance, notify the appropriate TTB 
officer of the date and time he will take such inventory.
    (d) Supervision of physical inventories. Physical inventories 
required under the provisions of this section shall be taken under such 
supervision, or verified in such manner, as the appropriate TTB officer 
may require.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



       Subpart N_Denaturing Operations and Manufacture of Articles



Sec.  19.451  General.

    Authorized proprietors who are qualified as processors may conduct 
denaturing operations or manufacture articles pursuant to the provisions 
of this

[[Page 418]]

part. Proprietors shall not conduct denaturing operations or manufacture 
articles except as provided in this part. Records of denaturing 
operations and the manufacture of articles shall be maintained in 
accordance with Sec.  19.752 and Sec.  19.753.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178); 
sec. 807(a), Pub. L. 96-39, 93 Stat. 286 (26 U.S.C. 5241))

                              Denaturation



Sec.  19.452  Formulas.

    Spirits shall be denatured in accordance with formulas as authorized 
in 27 CFR part 21 or their alternatives. Denaturing materials shall be 
thoroughly mixed with the spirits being denatured.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242); 
sec. 807, Pub. L. 96-39, 93 Stat. 286 (26 U.S.C. 5241))



Sec.  19.453  Testing of denaturants.

    (a) Testing. Proprietors shall ensure that the materials they 
receive for use in denaturing conform to the specifications prescribed 
in 27 CFR part 21. The appropriate TTB officer may require the testing 
of denaturants at any time.
    (b) Samples. Samples of denaturants shall be taken in such manner as 
to represent a true composite of the total lot being sampled. When 
samples are tested by persons other than a proprietor, a copy of the 
analysis or a statement, signed by the chemist performing the test, 
shall be secured and filed by the proprietor for each test. Samples of 
denaturants may be taken by appropriate TTB officers at any time for 
testing by Government chemists.
    (c) Conformity. When a denaturant does not conform to the 
specifications prescribed under 27 CFR part 21, the proprietor shall not 
use the material unless he treats or manipulates the denaturant to make 
it conform to such specifications. Such treated or manipulated 
denaturant shall again be tested.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242))



Sec.  19.454  Gauge for denaturation.

    The proprietor shall gauge spirits before denaturation and after 
denaturation and record each gauge on the record of denaturation as 
prescribed in Sec.  19.752(b). However, spirits dumped from previously 
gauged containers or spirits transferred directly to mixing tanks from 
gauge tanks where they were gauged, need not again be gauged. 
Measurements of spirits and denaturants shall be made by volume, weight, 
by approved meter, or, when approved by the appropriate TTB officer , 
other devices or methods.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204); 
sec. 807, Pub. L. 96-39, 93 Stat. 286 (26 U.S.C. 5241))



Sec.  19.455  Dissolving of denaturants.

    Denaturants which are difficult to dissolve in spirits at usual 
working temperatures, which are highly volatile, or which become solid 
at such usual temperatures may be liquefied or dissolved in a small 
quantity of spirits or water in advance of their use in the production 
of specially denatured spirits, pursuant to the prescribed formula, so 
long as the proof of the denatured spirits manufactured does not fall 
below the proof prescribed for the applicable formula in 27 CFR part 21. 
Any spirits used in dissolving denaturants and contained in the 
resulting solution shall be included as part of the total quantity of 
spirits denatured in each batch.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242))



Sec.  19.456  Adding denaturants.

    Denaturants and spirits shall be mixed in packages, tanks, or bulk 
conveyances on bonded premises. The appropriate TTB officer may, on 
written application, authorize other methods of mixing denaturants and 
spirits if he deems such denaturation will not hinder effective 
administration of this part or jeopardize the revenue. If requested by 
the appropriate TTB officer, the proprietor shall submit a flow diagram 
of the intended process or method of adding denaturants.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242))



Sec.  19.457  Neutralizing denatured spirits.

    Proprietors may add trace quantities of compounds such as caustics 
or acids

[[Page 419]]

to certain formulas of denatured spirits to neutralize such spirits, if 
the intended effect of the denaturants is not reduced. Proprietors who 
neutralize denatured spirits must record, for each formula the kinds and 
quantities of compounds used, and the formula number of the denatured 
spirits neutralized.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242); 
sec. 807, Pub. L. 96-39, 93 Stat. 286 (26 U.S.C. 5241))



Sec.  19.458  Restoration and redenaturation of recovered denatured spirits and recovered articles.

    Recovered denatured spirits and recovered articles received on 
bonded premises, as provided in subpart U of this part, for restoration 
(including redistillation, if necessary) and/or redenaturation may not 
be withdrawn from bonded premises except for industrial use or after 
denaturation thereof. If the recovered or restored denatured spirits or 
recovered articles are to be redenatured and do not require the full 
amount of denaturants for redenaturation, a notation to that effect will 
be made on the record of denaturation required by Sec.  19.752(b).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242))



Sec.  19.459  Mixing of denatured spirits.

    (a) Denatured spirits produced under the same formula may be mixed 
on bonded premises.
    (b) Denatured spirits of different formulas may be mixed on bonded 
premises for immediate redistillation at the same plant or at another 
plant in accordance with the provisions of subpart K of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242); 
sec. 807, Pub. L. 96-39, 93 Stat. 286 (26 U.S.C. 5241))



Sec.  19.460  Conversion of denatured alcohol formulas.

    (a) Conversion of Formula No. 1. Any specially denatured alcohol, 
except Formulas No. 3-A and No. 30, may be converted into specially 
denatured alcohol, Formula No. 1, by the addition of methyl alcohol and 
either denatonium benzoate, N.F., methyl isobutyl ketone, mixed isomers 
of nitropropane, or methyl n-butyl ketone in accordance with the 
formulation prescribed in Sec.  21.32 of this chapter. For specially 
denatured alcohol Formulas No. 3-A and No. 30, the methyl alcohol 
content shall be reduced to the level prescribed for specially denatured 
alcohol Formula No. 1 by the addition of ethyl alcohol before adding one 
of the other ingredients prescribed in Sec.  21.32 of this chapter.
    (b) Conversion to Formula No. 29. Any specially denatured alcohol 
may be converted to specially denatured alcohol, Formula No. 29, by the 
addition of acetaldehyde or ethyl acetate, in accordance with the 
formulations prescribed in 27 CFR 21.56.
    (c) General rule. In addition to the conversions provided in 
paragraphs (a) and (b) of this section, any specially denatured alcohol 
may be converted to another specially denatured alcohol formula, if the 
resultant alcohol-denaturant mixture contains only the alcohol and 
denaturant or denaturants in the proportions authorized in 27 CFR part 
21 for the formula to which converted. Specially denatured alcohol which 
is converted under this paragraph may only be used as authorized in 27 
CFR part 21 for the formula to which converted.
    (d) Conditions governing conversion and use. The quantities of 
denaturants required for conversions authorized in paragraphs (a), (b) 
and (c) of this section shall be determined on the basis of the alcohol 
in the formulations. Specially denatured alcohol converted to Formula 
No. 29 may be used as authorized in 27 CFR 21.56(b) except that it shall 
not be used in the manufacture of vinegar, drugs, or medicinal 
chemicals, and the conditions governing use provided in 27 CFR 21.56(c) 
shall apply.
    (e) Conversion to other formulations. Proprietors desiring to 
convert specially denatured alcohol other than as provided in paragraphs 
(a), (b), and (c) of this section shall obtain approval from the 
appropriate TTB officer prior to such conversion.
    (f) Conversion to completely denatured alcohol. Any specially 
denatured alcohol not containing methanol or wood alcohol may be 
converted to any one of

[[Page 420]]

the completely denatured alcohol formulas, prescribed in 27 CFR part 21, 
by adding the required denaturants.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1369, as amended (26 U.S.C. 5242))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9160, Mar. 6, 1985; T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]



Sec.  19.461  Receipt and storage of denatured spirits.

    (a) Deposit. Denatured spirits produced, received in bond as 
provided in subpart P or returned to bonded premises as provided in 
subpart U of this part, shall be deposited on the bonded premises.
    (b) Tanks. Proprietors shall maintain a record in accordance with 
Sec.  19.752 for tanks in which denatured spirits are stored.
    (c) Storage. Denatured spirits may be stored on bonded premises in 
any container into which denatured spirits may be filled on bonded 
premises. Such containers shall be so stored that they can be readily 
inspected by appropriate TTB officers and inventoried. The provisions of 
Sec.  19.133 are applicable to storage of denatured spirits in portable 
containers. However, upon application, the appropriate TTB officer may 
authorize the proprietor to store packages and cases in any manner which 
safeguards the interests of the Government.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.462  Filling of containers from tanks.

    Denatured spirits may be drawn into portable containers from tanks 
on bonded premises. The denatured spirits in the tanks shall be gauged 
prior to filling of the containers, and when only a portion of the 
contents of the tank is drawn into containers, the denatured spirits 
remaining in the tank shall be again gauged and such gauges shall be 
recorded by the proprietor. The provisions of paragraph (a) and (c) of 
Sec.  19.319 shall be applicable to the filling and gauging of portable 
containers, and denatured spirits may be withdrawn from bonded premises 
for any lawful purpose on the filling gauge.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.463  Containers for denatured spirits.

    Packaging of denatured spirits and the marking of portable 
containers of such denatured spirits shall be in accordance with 
requirements of subpart R of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

                               Inventories



Sec.  19.464  Denatured spirits inventories.

    Each proprietor shall take a physical inventory of all denatured 
spirits in the processing account at the close of each calendar quarter 
and at such other times as the appropriate TTB officer may require. The 
results of the inventory shall be recorded as provided in subpart W of 
this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

                                Articles



Sec.  19.471  Manufacture of articles.

    Proprietors shall manufacture, label, mark, and dispose of articles 
as provided in 27 CFR part 20.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1372, as amended (26 U.S.C. 5273))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9160, Mar. 6, 1985]



                 Subpart O_Spirits from Customs Custody



Sec.  19.481  General.

    Spirits imported or brought into the United States in bulk 
containers may be withdrawn by proprietors from customs custody and 
transferred in such bulk containers or by pipeline without payment of 
tax to the bonded premises of their distilled spirits plant. Spirits 
received on bonded premises as provided in this section may be (a) 
redistilled or denatured only if 185 degrees or more of proof, and (b) 
withdrawn for any purpose authorized by 26 U.S.C.

[[Page 421]]

Chapter 51, in the same manner as domestic spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1366, as amended (26 U.S.C. 5232))



Sec.  19.482  Age and fill date.

    For the purpose of this part, the age and fill date for spirits that 
are imported or brought into the United States shall be:
    (a) Age. The claimed age, which is supported by the documentation 
required in 27 CFR part 5.
    (b) Fill date. The date that packages of spirits are released from 
customs custody or filled on bonded premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.483  Recording gauge.

    (a) When packages of spirits are received from customs custody in 
the storage account, the proprietor shall use the last official gauge to 
compute and record on the deposit records prescribed in Sec.  19.740 for 
each entry the average content of the packages being received which 
shall also provide the basis for entries on the package summary records 
prescribed in Sec.  19.741. If the last official gauge indicates a 
substantial variation in the contents of the packages, the proprietor 
shall group the packages into lots according to their approximate 
contents, and assign a separate lot identification to each group of 
packages, based on the date the packages were received on bonded 
premises.
    (b) When packages of spirits are received from customs custody in 
the processing account, the proprietor shall determine the proof gallons 
of spirits received in each package. The determination may be made by 
use of the last official gauge.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5232))

                            Imported Spirits



Sec.  19.484  Marks on containers of imported spirits.

    (a) General. Each portable bulk container of spirits shall, when 
received on bonded premises under the provisions of Sec.  19.481, or 
when filled on bonded premises, be marked with:
    (1) The name of the importer;
    (2) The country of origin;
    (3) The kind of spirits;
    (4) The package identification number as provided in Sec.  19.593 or 
the package serial number as provided in Sec.  19.594;
    (5) If filled on bonded premises, the date of fill;
    (6) The proof; and
    (7) The proof gallons of spirits in the package. Package 
identification numbers or package serial numbers shall be preceded by 
the symbol ``IMP'' and any distinguishing prefix or suffix used as 
provided in Sec.  19.594. The proprietor who receives packages of 
imported spirits under the provisions of Sec.  19.481 shall be 
responsible for having the required marks placed on such packages. 
Package identification numbers assigned under the provisions of this 
section to packages of spirits received from customs custody shall be 
recorded on the deposit records by the proprietor who receives the 
spirits.
    (b) Exception. Proprietors are relieved from placing prescribed 
marks on packages when the spirits will be removed from the packages 
within 30 days of the date of receipt at the distilled spirits plant. 
Packages not dumped as provided in this paragraph within the time 
prescribed must be promptly marked in the manner required by Sec.  
19.595. The provisions of this section shall not be construed to waive, 
or authorize the waiver of, the requirements of this part for the 
assigning of package identification numbers or for the recording of such 
package identification numbers on deposit records, and the required 
recording of lot identification numbers and related information on other 
transaction forms, records, or reports.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

                 Puerto Rican and Virgin Islands Spirits



Sec.  19.485  Marks on containers of Puerto Rican and Virgin Islands spirits.

    (a) Packages received in bond. (1) When packages of Puerto Rican 
spirits are received on the bonded premises of a

[[Page 422]]

distilled spirits plant under the provisions of this subpart, the 
markings prescribed by 27 CFR 26.40, modified to show the serial number 
of the Form 5110.31 prefixed by ``Form 5110.31'', rather than the serial 
number and identification of the Form 487-B, shall be accepted in lieu 
of the markings prescribed in Sec.  19.484. On receipt of packages so 
marked the proprietor of the distilled spirits plant shall show on such 
packages of spirits the date of fill as provided in Sec.  19.482, and 
the words ``Puerto Rican'' or the abbreviation ``P.R.''.
    (2) When packages of Virgin Islands spirits are received on the 
bonded premises of a distilled spirits plant under the provisions of 
this subpart, the markings prescribed by 27 CFR 26.206 that are on such 
packages shall be accepted in lieu of the markings prescribed in Sec.  
19.484. On receipt of packages so marked the proprietor of the distilled 
spirits plant shall show on such packages of spirits the date of fill as 
provided in Sec.  19.482, and the words ``VIRGIN ISLANDS'' or the 
abbreviation ``V.I.''
    (b) Portable bulk containers. Portable bulk containers of Puerto 
Rican or Virgin Islands spirits filled in TTB bond shall, in addition to 
the required marks prescribed in Sec.  19.596, be marked to show the 
serial number of the approved formula under which produced, and with the 
words ``PUERTO RICAN'' or ``VIRGIN ISLANDS'' or the abbreviation 
thereof. Portable bulk containers containing spirits received in TTB 
bond under the provisions of this subpart shall, in addition to other 
required marks, be marked with the words ``PUERTO RICAN'' or ``VIRGIN 
ISLANDS'' or the abbreviation thereof.
    (c) Cases of bottled alcohol. In addition to other mandatory marks 
prescribed by Sec.  19.608 for cases of bottled alcohol, the words 
``PUERTO RICAN'' or ``VIRGIN ISLANDS'', as appropriate, or the 
abbreviation ``P.R.'' or ``V.I.'' shall precede or follow the word 
``alcohol'' on cases of alcohol from Puerto Rico or the Virgin Islands 
that are bottled and cased on bonded premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1369, as amended 
(26 U.S.C. 5206, 5235))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-459, 66 
FR 38549, July 25, 2001]



Sec.  19.486  Additional tax on nonbeverage spirits.

    The additional tax imposed by 26 U.S.C. 5001(a)(9), on imported 
spirits withdrawn from customs custody without payment of tax and 
thereafter withdrawn from bonded premises for beverage purposes, and the 
related provisons of Sec.  19.518, are not applicable to Puerto Rican or 
Virgin Islands spirits brought into the United States and transferred to 
bonded premises under the provisions of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.487  Abatement, remission, credit or refund.

    The provisions of 26 U.S.C. 5008, authorizing abatement, remission, 
credit or refund for loss or destruction of distilled spirits, shall 
apply to spirits brought into the United States from Puerto Rico or the 
Virgin Islands, with respect to the following:
    (a) Spirits lost while in TTB bond;
    (b) Voluntary destruction of spirits in bond;
    (c) Spirits returned to bonded premises after withdrawal from bonded 
premises without payment of tax; and
    (d) Spirits returned to bonded premises after withdrawal from bonded 
premises upon tax determination.

Claims relating to spirits lost in bond, in addition to the information 
required by Sec.  19.41, shall show the name of the producer, and the 
serial number and date of the formula, where required, under which 
produced.

(Sec. 201, Pub. L. 95-859, 72 Stat. 1323, as amended (26 U.S.C. 5008); 
sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5215))

[[Page 423]]



                   Subpart P_Transfer and Withdrawals

                                 General



Sec.  19.501  Authority to withdraw.

    Spirits, denatured spirits, and wines shall be removed from bonded 
premises as provided in this subpart. Spirits entered into bonded 
storage for subsequent packaging in wooden packages, as provided in 
Sec.  19.320, which have not been drawn into such packages at the time 
of withdrawal from bond shall be redesignated to conform to the classes 
and types set out in subpart R of this part and in 27 CFR part 5.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1362, as amended 
(26 U.S.C. 5201, 5212, 5214); sec. 807(a), Pub. L. 96-39, 93 Stat. 285 
(26 U.S.C. 5213))



Sec.  19.502  Withdrawal of spirits on production or filling gauge.

    When the production or filling gauge is made under the provisions of 
Sec.  19.319(b), spirits may be withdrawn from bonded premises for any 
lawful purpose on the production or filling gauge. When the production 
or filling gauge is made under Sec.  19.319(c), spirits may be withdrawn 
without payment of tax for export on the production or filling gauge. 
When spirits which are to be withdrawn on determination of tax on the 
original gauge are transferred in bond, all copies of the transfer 
record prescribed in Sec.  19.770 shall be marked by the proprietor 
``Withdrawal on Original Gauge''.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  19.503  Determination of tare.

    When packages are to be individually gauged for withdrawal from 
bonded premises, actual tare shall be determined in accordance with 27 
CFR part 30.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

                    Transfers Between Bonded Premises



Sec.  19.505  Authorized transfers.

    (a) Spirits. Bulk spirits or denatured spirits may be transferred in 
bond between the bonded premises of plants qualified under 26 U.S.C. 
5171 or 26 U.S.C. 5181, in accordance with Sec. Sec.  19.506 and 19.998, 
respectively.
    (b) Wine. (1) Wines may be transferred (i) from a bonded wine cellar 
to the bonded premises of a distilled spirits plant, (ii) from the 
bonded premises of a distilled spirits plant to a bonded wine cellar, or 
(iii) between the bonded premises of distilled spirits plants.
    (2) Wines transferred to the bonded premises of a distilled spirits 
plant may be used in the manufacture of a distilled spirits product, and 
may not be removed from such bonded premises for consumption or sale as 
wine.
    (c) Alcohol for industrial purposes. Alcohol bottled for industrial 
purposes, as provided in Sec.  19.398, may be transferred between the 
bonded premises of distilled spirits plants in accordance with the 
procedures prescribed in Sec. Sec.  19.506 through 19.510 for bulk 
distilled spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as amended 
(26 U.S.C. 5212, 5362); sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 
U.S.C. 5181))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-297, 55 
FR 18064, Apr. 30, 1990]



Sec.  19.506  Application to receive spirits in bond.

    When a proprietor qualified under 26 U.S.C. 5171 desires to have 
spirits or denatured spirits transferred to him in bond which shall not 
include spirits withdrawn from customs custody under 26 U.S.C. 5232, he 
shall make application for such transfer to the appropriate TTB officer 
on Form 5100.16. Application to receive such spirits by transfer in bond 
shall not be approved unless the applicant's operations or unit bond is 
in the maximum penal sum, or, if in less than the maximum penal sum, is 
sufficient to cover the tax on the spirits or denatured spirits to be 
transferred in addition to all other liabilities chargeable against such 
bond. The applicant shall deliver one of the approved copies of the 
application to the consignor proprietor.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1318, as amended, 1362, as amended 
(26 U.S.C. 5005, 5112))

[[Page 424]]



Sec.  19.507  Termination of application.

    A proprietor may terminate an approved application, Form 5100.16, at 
any time by
    (a) Retrieving the consignor's copy, and
    (b) Returning this copy, together with his own to the appropriate 
TTB officer for cancellation.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1318, as amended (26 U.S.C. 5005))



Sec.  19.508  Consignor premises.

    (a) General. (1) A transfer record shall be prepared according to 
Sec.  19.770 by (i) the consignor proprietor of a distilled spirits 
plant (A) to cover the transfer of spirits or denatured spirits in bond 
to another distilled spirits plant, pursuant to an approved application 
on Form 5100.16, (B) to cover the transfer in bond of spirits or 
denatured spirits to an alcohol fuel plant, or (C) to cover the transfer 
of wine in bond to the bonded premises of a distilled spirits plant or 
bonded wine cellar; or (ii) the consignor proprietor of an alcohol fuel 
plant to cover the transfer of spirits to the bonded premises of a 
distilled spirits plant pursuant to an approved application on Form 
5100.16. Except as otherwise provided herein, a transfer record shall be 
prepared for each conveyance. The proprietor shall also enter on the 
transfer record the serial numbers of any seals or other devices affixed 
to a conveyance used for shipment of spirits, or denatured spirits. On 
completion of lading (or completion of transfer by pipeline), the 
proprietor shall retain one copy of the transfer record and one copy of 
any accompanying document for his files and forward the original of the 
transfer record and any accompanying document to the consignee (to 
accompany the shipment, if by truck).
    (2) Spirits or denatured spirits produced from petroleum, natural 
gas, or coal may not be transferred to alcohol fuel plants qualified 
under 26 U.S.C. 5181.
    (3) The consignor proprietor may cover on one transfer record all 
packages of spirits shipped by truck on the same day from his bonded 
premises to the bonded premises of another plant. In such case, the 
proprietor shall prepare a shipment and delivery order for each 
shipment, showing the number of packages, their package identification 
or serial numbers, the name of the producer, warehouseman, or processor, 
and the serial numbers of the seals or other devices (if any) applied to 
the truck. Such shipping and delivery order shall be properly 
authenticated and shall consititute a complete record of the spirits so 
transferred in each truck each day. A copy of each shipping and delivery 
order shall be retained by the consignor. On completion of the lading of 
the last truck for the day, the proprietor shall retain one copy of the 
transfer record and one copy of any accompanying document for his files 
and forward the original of the transfer record and any accompanying 
document to the consignee.
    (b) Packages. When spirits are to be transferred in bond in 
packages, the consignor proprietor shall weigh each package, except (1) 
when the transfer is to be made in a secured conveyance, (2) when the 
individual packages have been securely sealed by the proprietor, or (3) 
when this requirement has been waived by the appropriate TTB officer on 
a finding that, because of the location of the premises and the proposed 
method of operation, there will be no jeopardy to the revenue. When 
packages are weighed at the time of shipment, the proprietor shall 
assign temporary serial numbers to the packages and show for each 
package its gross shipment weight on a package gauge record prepared 
according to Sec.  19.769. A copy of the package gauge record shall 
accompany each copy of the transfer record.
    (c) Bulk conveyances and pipelines. When spirits, denatured spirits, 
or wines are to be transferred in bond in bulk conveyances or by 
pipelines, the consignor shall gauge the spirits, denatured spirits, or 
wines and record the quantity so determined on the transfer record 
prescribed in Sec.  19.770. Bulk conveyances of spirits or denatured 
spirits shall be secured by the proprietor.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1367, as amended, 1380, as amended 
(26 U.S.C. 5212, 5362))

[[Page 425]]



Sec.  19.509  Reconsignment.

    Where, prior to or on arrival at the premises of a consignee, 
spirits, denatured spirits, or wines transferred in bond are found to be 
unsuitable for the purpose for which intended, were shipped in error, 
or, for any other bona fide reason, are not accepted by such consignee, 
or are not accepted by a carrier, they may be reconsigned, by the 
consignor, to himself, or to another consignee. In such case, 
application to receive spirits or denatured spirits by transfer in bond 
(on Form 5100.16) shall have been previously approved for the consignee 
(not required in the case of wines or in the case of alcohol fuel plants 
receiving spirits or denatured spirits) and the bond of the proprietor 
to whom the spirits, denatured spirits, or wines are reconsigned shall 
cover such spirits, denatured spirits, or wines while in transit after 
reconsignment. Notice of cancellation of the shipment shall be made by 
the consignor to the consignee. Where the reconsignment is to another 
proprietor, a new transfer record shall be prepared and prominently 
marked with the word ``Reconsignment''.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1367, as amended, 1380, as amended 
(26 U.S.C. 5212, 5362))



Sec.  19.510  Consignee premises.

    (a) General. When spirits, denatured spirits, or wines are received 
by transfer in bond, the consignee proprietor shall examine each 
conveyance to determine whether the securing devices, if any, are intact 
upon arrival at his premises. If the securing devices are not intact, he 
shall immediately notify the appropriate TTB officer before removal of 
any spirits from the conveyance. The proprietor shall follow the 
provisions of subpart Q of this part to determine, record, and report 
losses, if any. After execution on the transfer record as prescribed in 
Sec.  19.770 or Form 703, as appropriate, of his receipt of the shipment 
of spirits, denatured spirits, or wines, the consignee shall retain the 
original of the transfer record and any accompanying documents for his 
files, or dispose of Form 703 (in the case of wines from a bonded wine 
cellar), as provided in the instructions on the form. Retained copies of 
transfer records and Forms 703 shall become deposit records. Spirits 
which are produced at alcohol fuel plants shall be separately identified 
and accounted for as for fuel use, and may not be withdrawn, used, sold 
or otherwise disposed of for other than fuel use.
    (b) Packages. When spirits are received in packages, the consignee 
proprietor shall weigh each package, except: (1) when the transfer is 
made in a secured conveyance and the securing devices are intact on 
arrival, (2) when the individual packages have been sealed by the 
consignor proprietor and are intact on arrival, or (3) when the 
requirement for weighing the packages at the consignor premises has been 
waived under the provisions of Sec.  19.508(b)(3). The proprietor shall 
record the receiving weight of each package on the accompanying package 
gauge record or on a list with temporary package serial numbers prepared 
by the consignor. A copy of such package gauge record or list shall 
remain with the original of the transfer record.
    (c) Bulk conveyances and pipelines. When spirits, denatured spirits, 
or wines are received in bulk conveyances or by pipeline, the consignee 
shall gauge the spirits, denatured spirits, or wines and record the 
gauge on the transfer record prescribed in Sec.  19.770 or, in the case 
of wines received from a bonded wine cellar, on Form 703. The consignee 
shall ensure that each conveyance emptied has been thoroughly drained. 
The appropriate TTB officer may waive the requirement for gauging 
spirits, denatured spirits, or wines on receipt by pipeline if he finds 
that because of the location of the premises, there will be no jeopardy 
to the revenue.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1380, as amended 
(26 U.S.C. 5204, 5362); sec. 807(a), Pub. L. 96-39, 93 Stat. 285 (26 
U.S.C. 5213))

[[Page 426]]

             Withdrawals on Determination and Payment of Tax



Sec.  19.515  Determination and payment of tax.

    (a) General. Distilled spirits may be withdrawn from bonded premises 
on determination of tax in approved containers, or, to the contiguous 
premises of a manufacturer of nonbeverage products, by pipeline. All tax 
which is to be prepaid or deferred shall be determined prior to the 
physical removal of the spirits from bonded premises. The proprietor 
shall record the results of each tax determination on a record of tax 
determination as required by Sec.  19.761.
    (b) Payment of tax. The tax on the spirits shall be prepaid on Form 
5000.24 before removal of the spirits from bonded premises unless the 
proprietor has furnished a withdrawal or unit bond to secure payment of 
the tax. Where such bond is in less than the maximum penal sum, the 
proprietor shall prepay the tax for any withdrawal which would cause the 
outstanding liability for tax to exceed the limits of coverage under the 
bond.

(Sec. 807, Pub. L. 96-39, 93 Stat. (26 U.S.C. 5213))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-219, 50 
FR 51387, Dec. 17, 1985]



Sec.  19.516  Bond account.

    Where the proprietor has furnished a withdrawal or unit bond to 
cover the tax on spirits withdrawn on determination of tax, and such 
bond is in less than the maximum penal sum, he shall maintain an account 
of his bond and he shall charge the bond with the amount of liability 
incurred on each withdrawal on determination of tax. He shall credit the 
bond on payment of the amount of tax required to be remitted with a 
return and by authorized credits taken on a return. Where a bond in less 
than the maximum penal sum has been allocated among two or more plants, 
as provided in Sec. Sec.  19.243 and 19.244, the proprietor shall 
maintain an account at each plant of that part of the penal sum 
allocated to that plant.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.517  Gauge for tax determination.

    (a) Packages. When spirits in packages are to be withdrawn from 
bonded premises on determination of tax on the basis of an individual 
package gauge, each package shall be gauged unless the tax is to be 
determined on the production or filling gauge. When packages are gauged, 
the proprietor shall prepare a package gauge record, according to Sec.  
19.769, and attach it to the record of tax determination prescribed in 
Sec.  19.761.
    (b) Tanks. Spirits in tanks which are to be withdrawn on 
determination of tax shall be gauged (by weighing and proofing) as 
prescribed in Sec.  19.93, and the elements of the gauge shall be 
recorded on the record of tax determination or on a separate record of 
the gauge for attachment to the record of tax determination.
    (c) Cases. Cases of distilled spirits to be withdrawn from bonded 
premises shall be tax determined on the basis of the contents thereof. 
The proof gallonage contained in cases shall be determined in accordance 
with 27 CFR part 30 and the method prescribed in Sec.  19.722.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358 (26 U.S.C. 5204); sec. 807, 
Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5213))



Sec.  19.518  Imported spirits.

    When spirits which have been imported for nonbeverage purposes and 
transferred to bonded premises pursuant to 26 U.S.C. 5232 are withdrawn 
for beverage purposes, there shall be paid, in addition to the internal 
revenue tax imposed by 26 U.S.C. 5001, a tax equal to the duty which 
would have been paid had the spirits been imported for beverage 
purposes, less the duty already paid thereon. The additional tax shall 
be referred to as ``additional tax--less duty'', and shall be paid at 
the time and in the manner that the basic tax is paid. The total 
quantity in proof gallons withdrawn shall be the basis of computing the 
tax at the rates indicated. The amount of the ``additional tax--less 
duty'' shall be stated separately and identified as such on the tax 
return.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))

[[Page 427]]



Sec.  19.519  Methods of tax payment.

    The tax on spirits shall be paid pursuant to a return on Form 
5000.24, filed as provided in Sec.  19.523 or Sec.  19.524 and Sec.  
19.525. Except for remittance to be effected by electronic fund transfer 
under Sec.  19.524, remittance for the tax in full shall accompany the 
return and may be in any form which the appropriate TTB officer is 
authorized to accept under the provisions of Sec.  70.61 (Payment by 
check or money order) and which is acceptable to him. However, where a 
check or money order tendered in payment for taxes is not paid on 
presentment, or where the taxpayer is otherwise in default in payment, 
any remittance made during the period of such default, and until the 
appropriate TTB officer finds that the revenue will not be jeopardized 
by the acceptance of a personal check (if acceptable to the appropriate 
TTB officer), shall be in cash or in the form of a certified, cashier's, 
or treasurer's check drawn on any bank or trust company incorporated 
under the laws of the United States, or under the laws of any State, 
Territory, or possession of the United States, or a money order, as 
provided in Sec.  70.61. Checks and money orders shall be made payable 
to ``Alcohol and Tobacco Tax and Trade Bureau''.

(Act of August 16, 1954, Ch. 736, 68A Stat. 777, as amended (26 U.S.C. 
6311); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 
5061))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-219, 50 
FR 51387, Dec. 17, 1985; T.D. ATF-251, 52 FR 19313, May 22, 1987; T.D. 
ATF-301, 55 FR 47605, Nov. 14, 1990]



Sec.  19.520  Employer identification number.

    The employer identification number (defined at 26 CFR 301.7701-12) 
of the taxpayer who has been assigned such a number shall be shown on 
each return on Form 5000.24 filed pursuant to the provisions of this 
part. Failure of the taxpayer to include his employer identification 
number on Form 5000.24 may result in assertion and collection of the 
penalty specified in Sec.  70.113 of this chapter.

(Sec. 1, Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109, 
6676))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-219, 50 
FR 51387, Dec. 17, 1985; T.D. ATF-301, 55 FR 47605, Nov. 14, 1990]



Sec.  19.521  Application for employer identification number.

    (a) An employer identification number will be assigned pursuant to 
application on Form SS-4 filed by the taxpayer. Form SS-4 may be 
obtained from the director of the service center or from the district 
director.
    (b) An application on Form SS-4 for an employer identification 
number shall be made by every taxpayer who files a return on Form 
5000.24, but who prior to the filing of his first return on Form 5000.24 
has neither secured an employer identification number nor made 
application therefor. Such application on Form SS-4 shall be filed on or 
before the seventh day after the date on which such first return on Form 
5000.24 is filed.
    (c) Each taxpayer shall make application for and shall be assigned 
only one employer identification number, regardless of the number of 
places of business for which the taxpayer is required to file a tax 
return under the provisions of this part.

(Sec. 1, Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-219, 50 
FR 51387, Dec. 17, 1985]



Sec.  19.522  Taxes to be collected by returns.

    (a)(1) Deferred payment of taxes. The tax on spirits to be withdrawn 
from bond for deferred payment of tax shall be paid pursuant to a return 
on Form 5000.24, Excise Tax Return. The return, Form 5000.24, shall be 
executed and filed for each return period notwithstanding that no tax is 
due for payment for such period. The proprietor of each bonded premises 
shall include, for payment, on his return on Form 5000.24, the full 
amount of distilled spirits tax determined in respect of all spirits 
released for withdrawal from

[[Page 428]]

the bonded premises on determination of tax during the period covered by 
the return (except spirits on which tax has been prepaid).
    (2) Return periods--(i) Definitions. For purposes of this section, 
the following terms have the meanings indicated:
    Reasonably expects. When used with reference to a taxpayer, 
reasonably expects means the taxpayer was not liable for more than 
$50,000 in taxes the previous year and there is no other existing or 
anticipated circumstance known to the taxpayer (such as an increase in 
production capacity) that would cause the taxpayer's liability to 
increase beyond that limit.
    Taxpayer. A taxpayer is a person who is liable for excise tax 
imposed with respect to distilled spirits by 26 U.S.C. 5001 and 7652 
under the same Employer Identification Number as defined in 26 CFR 
301.7701-12.
    (ii) Semimonthly return period. Except in the case of a taxpayer who 
qualifies for, and chooses to use, quarterly return periods as provided 
in paragraph (b)(3) of this section, all taxpayers must use semimonthly 
return periods for deferred payment of tax. The semimonthly return 
periods shall run from the 1st day through the 15th day of each month, 
and from the 16th day through the last day of each month, except as 
otherwise provided in Sec.  19.523(c).
    (iii) Quarterly return period. Effective January 1, 2006, a taxpayer 
who reasonably expects to be liable for not more than $50,000 in taxes 
with respect to distilled spirits imposed by 26 U.S.C. 5001 and 7652 for 
the current calendar year, and who was liable for not more than $50,000 
in such taxes in the preceding calendar year, may choose to use a 
quarterly return period. In such a case the last day for payment of tax 
and filing of the return will be the 14th day after the last day of the 
calendar quarter. However, the taxpayer may not use the quarterly return 
period procedure for any portion of the calendar year following the 
first date on which the aggregate amount of tax due from the taxpayer 
during the calendar year exceeds $50,000, and any tax which has not been 
paid on that date will be due on the 14th day after the last day of the 
semimonthly period in which that date occurs.
    (b) Conditions under which deferral is denied. Notwithstanding the 
posting of a withdrawal or unit bond by the proprietor, the tax shall be 
prepaid as provided in paragraph (c) of this section--
    (1) Where a proprietor has defaulted in any payment of tax under 
this section, during the period of such default and until the 
appropriate TTB officer finds that the revenue will not be jeopardized 
by deferral; or
    (2) Where a proprietor, who, after having been notified of his 
deficiency by the appropriate TTB officer (i) fails to maintain records 
required by this part to substantiate the correctness of his tax returns 
or (ii) otherwise fails to comply with any provisions of this part, is 
so notified by the appropriate TTB officer.
    (c) Prepaid taxes. The tax on distilled spirits shall be paid 
pursuant to a prepayment return on Form 5000.24 in all cases where the 
tax is required to be paid before the spirits are withdrawn from bond. A 
single prepayment return on Form 5000.24 may cover one or more 
transactions. The proprietor shall note the serial number of the Form 
5000.24 and the date and time such prepayment return was filed on the 
individual record of tax determination.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1395, as amended 
(26 U.S.C. 5061, 5555))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-219, 50 
FR 51387, Dec. 17, 1985; T.D. ATF-365 60 FR 33668, June 28, 1995; T.D. 
TTB-41, 71 FR 5601, Feb. 2, 2006]



Sec.  19.523  Time for filing returns.

    (a) Payment pursuant to semimonthly return. Except when payment is 
pursuant to a quarterly return as provided in paragraph (d) of this 
section, where the proprietor of bonded premises has withdrawn spirits 
from such premises on determination and before payment of tax, the 
proprietor shall file a semimonthly tax return covering such spirits on 
Form 5000.24, and remittance, as required by Sec.  19.524 or Sec.  
19.525, not later than the 14th day after the last day of the return 
period, except as provided by paragraph (c) of this section. If the due 
date falls on a Saturday, Sunday, or legal holiday, the return and 
remittance shall be due on the immediately preceding day which is not a 
Saturday,

[[Page 429]]

Sunday, or legal holiday, except as provided by paragraph (c)(3) of this 
section.
    (b) Payment pursuant to prepayment return. If the proprietor of a 
distilled spirits plant desires to withdraw spirits from bonded premises 
on determination of tax and does not have on file an approved withdrawal 
or unit bond of sufficient penal sum to cover the withdrawal, if there 
is default by him in any payment of tax under this part, or the 
proprietor is notified by the appropriate TTB officer as provided in 
Sec.  19.522(b)(2), the proprietor shall not remove the spirits from the 
bonded premises until the tax thereon has been paid. To pay the tax, the 
proprietor of the bonded premises shall file a prepayment return on Form 
5000.24, and remittance as required by Sec.  19.524 or Sec.  19.525, 
before removal of the spirits.
    (c) Special rule for taxes due for the month of September (effective 
after December 31, 1994). (1)(i) Except as provided in paragraph 
(c)(1)(ii) of this section, the second semimonthly period for the month 
of September shall be divided into two payment periods, from the 16th 
day through the 26th day, and from the 27th day through the 30th day. 
The proprietor shall file a return on Form 5000.24, and make remittance, 
for the period September 16-26, no later than September 29. The 
proprietor shall file a return on Form 5000.24, and make remittance, for 
the period September 27-30, no later than October 14.
    (ii) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec.  19.524, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through the 
25th day, and the 26th day through the 30th day. The proprietor shall 
file a return on Form 5000.24, and make remittance, for the period 
September 16-25, no later than September 28. The proprietor shall file a 
return on Form 5000.24, and make remittance, for the period September 
26-30, no later than October 14.
    (2) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (c)(1)(i) of this 
section, if the amount paid no later than September 29 is not less than 
\11/15\ (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (c)(1)(ii) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax liability 
incurred for the semimonthly period beginning on September 1 and ending 
on September 15, and if any underpayment of tax is paid by October 14.
    (3) Last day for payment. If the required taxpayment due date for 
the periods September 16-25 or September 16-26 as applicable, falls on a 
Saturday or legal holiday, the return and remittance shall be due on the 
immediately preceding day. If the required due date falls on a Sunday, 
the return and remittance shall be due on the immediately following day.
    (4) Example. Payment of tax for the month of September. (i) Facts. 
X, a distilled spirits plant proprietor required to pay taxes by 
electronic fund transfer, incurred tax liability in the amount of 
$30,000 for the first semimonthly period of September. For the period 
September 16-26, X incurred tax liability in the amount of $45,000, and 
for the period September 27-30, X incurred tax liability in the amount 
of $2,000.
    (ii) Payment requirement. X's payment of tax in the amount of 
$30,000 for the first semimonthly period of September is due no later 
than September 29 (Sec.  19.522(a)). X's payment of tax for the period 
September 16-26 is also due no later than September 29 (Sec.  
19.523(c)(1)(i)). X may use the safe harbor rule to determine the amount 
of payment due for the period of September 16-26 (Sec.  19.523(c)(2)). 
Under the safe harbor rule, X's payment of tax must equal $21,990.00, 
11/15ths of the tax liability incurred during the first semimonthly 
period of September. Additionally, X's payment of tax in the amount of 
$2,000 for the period September 27-30 must be paid no later than October 
14 (Sec.  19.523(c)(1)(i)). X must also pay the underpayment of tax, 
$23,010.00,

[[Page 430]]

for the period September 16-26, no later than October 14 (Sec.  
19.523(c)(2)).
    (d) Payment pursuant to quarterly return. Where the proprietor of 
bonded premises has withdrawn spirits from such premises on 
determination and before payment of tax, and the proprietor uses 
quarterly return periods as provided in Sec.  19.522(b)(3), the 
proprietor shall file a quarterly tax return covering such spirits on 
Form 5000.24, and remittance, as required by Sec.  19.525, not later 
than the 14th day after the last day of the quarterly return period. If 
the due date falls on a Saturday, Sunday, or legal holiday, the return 
and remittance shall be due on the immediately preceding day which is 
not a Saturday, Sunday, or legal holiday.

(Approved by the Office of Management and Budget under control number 
1512-0467)

[T.D. ATF-219, 50 FR 51387, Dec. 17, 1985, as amended by T.D. ATF-246, 
52 FR 668, Jan. 8, 1987; T.D. ATF-365, 60 FR 33668, June 28, 1995; T.D. 
TTB-41, 71 FR 5602, Feb. 2, 2006]



Sec.  19.524  Payment of tax by electronic fund transfer.

    (a) General. (1) Each taxpayer who was liable, during a calendar 
year, for a gross amount equal to or exceeding five million dollars in 
distilled spirits taxes combining tax liabilities incurred under this 
part and parts 26 and 27 of this chapter, shall use a commercial bank in 
making payment by electronic fund transfer (EFT) of distilled spirits 
taxes during the succeeding calendar year. Payment of distilled spirits 
taxes by cash, check, or money order, as described in Sec.  19.525, is 
not authorized for a taxpayer who is required, by this section, to make 
remittances by EFT. For purposes of this section, the dollar amount of 
tax liability is defined as the gross tax liability on all taxable 
withdrawals and importations (including distilled spirits products 
brought into the United States from Puerto Rico or the Virgin Islands) 
during the calendar year, without regard to any drawbacks, credits, or 
refunds, for all premises from which such activities are conducted by 
the taxpayer. Overpayments are not taken into account in summarizing the 
gross tax liability.
    (2) For the purposes of this section, a taxpayer includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (3) A taxpayer who is required by this section to make remittances 
by EFT, shall make a separate EFT remittance and file a separate return, 
TTB F 5000.24, for each distilled spirits plant from which spirits are 
withdrawn upon determination of tax.
    (b) Requirements. (1) On or before January 10 of each calendar year, 
except for a taxpayer already remitting the tax by EFT, each taxpayer 
who was liable for a gross amount equal to or exceeding five million 
dollars in distilled spirits taxes during the previous calendar year, 
combining tax liabilities incurred under this part and parts 26 and 27 
of this chapter, shall notify the appropriate TTB officer. The notice 
shall be an agreement to make remittances by EFT.
    (2) For each return filed in accordance with this part, the taxpayer 
shall direct the taxpayer's bank to make an electronic fund transfer in 
the amount of the taxpayment to the Treasury Account as provided in 
paragraph (e) of this section. The request shall be made to the bank 
early enough for the transfer to be made to the Treasury Account by no 
later than the close of business on the last day for filing the return, 
prescribed in Sec.  19.523. The request shall take into account any time 
limit established by the bank.
    (3) If a taxpayer was liable for less than five million dollars in 
distilled spirits taxes during the preceding calendar year, combining 
tax liabilities incurred under this part and parts 26

[[Page 431]]

and 27 of this chapter, the taxpayer may choose either to continue 
remitting the tax as provided in this section or to remit the tax with 
the return as prescribed by Sec.  19.525. Upon filing the first return 
on which the taxpayer chooses to discontinue remitting the tax by EFT 
and to begin remitting the tax with the tax return, the taxpayer shall 
notify the appropriate TTB officer by attaching a written notification 
to TTB F 5000.24, stating that no taxes are due by EFT, because the tax 
liability during the preceding calendar year was less than five million 
dollars, and that the remittance shall be filed with the tax return.
    (c) Remittance. (1) Each taxpayer shall show on the return, TTB F 
5000.24, information about remitting the tax for that return by EFT and 
shall file the return with TTB, in accordance with the instructions on 
TTB F 5000.24.
    (2) Remittances shall be considered as made when the taxpayment by 
electronic fund transfer is received by the Treasury Account. For 
purposes of this section, a taxpayment by electronic fund transfer shall 
be considered as received by the Treasury Account when it is paid to a 
Federal Reserve Bank.
    (3) When the taxpayer directs the bank to effect an electronic fund 
transfer message as required by paragraph (b)(2) of this section, any 
transfer data record furnished to the taxpayer, through normal banking 
procedures, will serve as the record of payment, and shall be retained 
as part of required records.
    (d) Failure to make a taxpayment by EFT. The taxpayer is subject to 
a penalty imposed by 26 U.S.C. 5684, 6651, or 6656, as applicable, for 
failure to make a taxpayment by EFT on or before the close of business 
on the prescribed last day for filing.
    (e) Procedure. Upon the notification required under paragraph (b)(1) 
of this section, the appropriate TTB officer will issue to the taxpayer 
an TTB Procedure entitled, Payment of Tax by Electronic Fund Transfer. 
This publication outlines the procedure a taxpayer is to follow when 
preparing returns and EFT remittances in accordance with this part. The 
U.S. Customs Service will provide the taxpayer with instructions for 
preparing EFT remittances for payments to be made to the U.S. Customs 
Service.

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985; 50 
FR 23949, June 7, 1985, as amended by T.D. ATF-219, 50 FR 51388, Dec. 
17, 1985; T.D. ATF-245, 52 FR 532, Jan. 7, 1987; T.D. ATF-251, 52 FR 
19313, May 22, 1987; T.D. ATF-262, 52 FR 47559, Dec. 15, 1987; T.D. ATF-
459, 66 FR 38549, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002]



Sec.  19.525  Manner of filing returns.

    (a) Each return on Form 5000.24 shall be filed with TTB, in 
accordance with the instructions on the form. If the return and 
remittance are to be filed with a designated appropriate TTB officer, 
the proprietor shall file the return and remittance no later than 2:00 
p.m. on the date the return is required to be filed.
    (b) When the proprietor sends the return on Form 5000.24 by U.S. 
mail, the official postmark of the U.S. Postal Service stamped on the 
cover in which the return was mailed shall be considered the date of 
delivery of the remittance. When the postmark on the cover is illegible, 
the burden of proving when the postmark was made will be on the 
proprietor. When the proprietor sends the return with or without 
remittance by registered mail or by certified mail, the date of registry 
or the date of the postmark on the sender's receipt of certified mail, 
as the case may be, shall be treated as the date of delivery of the 
return and, if accompanied, of the remittance.

(Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6302))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-219, 50 
FR 51388, Dec. 17, 1985; T.D. ATF-251, 52 FR 19313, May 22, 1987]



Sec.  19.526  Removal of spirits on tax determination.

    No spirits shall be removed from bonded premises, except as 
otherwise provided by law, unless the tax thereon has been paid or 
determined. A record of tax determination shall be prepared

[[Page 432]]

for each removal of spirits as provided in Sec.  19.76.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5205); 
sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5213))

              Withdrawal of Spirits Without Payment of Tax



Sec.  19.531  Authorized withdrawals without payment of tax.

    Spirits may be withdrawn from bonded premises, without payment of 
tax for:
    (a) Export, as authorized under 26 U.S.C. 5214(a)(4);
    (b) Transfer to customs manufacturing bonded warehouses, as 
authorized under 19 U.S.C. 1311;
    (c) Transfer to foreign-trade zones, as authorized under 19 U.S.C. 
81c;
    (d) Supplies for certain vessels and aircraft, as authorized under 
19 U.S.C. 1309;
    (e) Transfer to customs bonded warehouses, as authorized under 26 
U.S.C. 5066 or 5214(a)(9);
    (f) Use in wine production, as authorized under 26 U.S.C. 5373;
    (g) Transfer to any university, college of learning, or institution 
of scientific research for experimental or research use as authorized 
under 26 U.S.C. 5312(a);
    (h) Research, development or testing, as authorized under 26 U.S.C. 
5214(a)(10). The withdrawal of spirits as provided in paragraphs (a) 
through (e) of this section shall be in accordance with the regulations 
in 27 CFR part 28; or,
    (i) Use in the production on bonded wine cellar premises of wine and 
wine products which will be rendered unfit for beverage use, as 
authorized by 26 U.S.C. 5362(d). The withdrawal of spirits as provided 
in paragraphs (a) through (e) of this section shall be in accordance 
with the regulations in part 252 of this chapter.

(Sec. 311, Tariff Act of 1930, 46 Stat. 691, as amended (19 U.S.C. 
1311); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1375, as 
amended, 1382, as amended (26 U.S.C. 5214, 5312, 5373); sec. 3, Pub. L. 
91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); sec. 455, Pub. L. 
98-369, 98 Stat. 494 (26 U.S.C. 5214))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-227, 51 
FR 13216, Apr. 18, 1986; T.D. TTB-8, 69 FR 3829, Jan. 27, 2004]



Sec.  19.532  Withdrawals of spirits for use in wine production.

    Wine spirits may be withdrawn to a bonded wine cellar without 
payment of tax for use in wine production. When wine spirits are 
consigned, the proprietor shall prepare a transfer record according to 
Sec.  19.770. Unless wine spirits in packages are to be withdrawn on the 
production or filling gauge, the proprietor shall prepare a package 
gauge record according to Sec.  19.769 and attach it to the transfer 
record.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1382, as amended 
(26 U.S.C. 5214, 5373))



Sec.  19.533  Withdrawal of spirits without payment of tax for experimental or research use.

    Any scientific university, college of learning, or institution of 
scientific research (which has qualified under the provisions of Sec.  
19.71 to withdraw spirits from a bonded premises), desiring to withdraw 
a specific quantity of spirits for experimental or research use, shall 
file a letterhead application with the appropriate TTB officer of the 
region in which the applicant's premises are located.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5312))



Sec.  19.534  Withdrawals of spirits for use in production of nonbeverage wine and nonbeverage wine products.

    Spirits withdrawn without payment of tax may be removed, pursuant to 
the provisions of part 24 of this chapter, to a bonded wine cellar for 
use in the production of nonbeverage wine and nonbeverage wine products. 
(Sec. 455, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5214))

[T.D. 372, 61 FR 20724, May 8, 1996]

[[Page 433]]

                    Withdrawal of Spirits Free of Tax



Sec.  19.536  Authorized withdrawals free of tax.

    Pursuant to the regulations in this chapter, spirits may be 
withdrawn from bonded premises free of tax--
    (a) On receipt of a signed photocopy of a permit, issued under part 
22 of this chapter, to procure spirits for nonbeverage purposes and not 
for resale or use in the manufacture of any product for sale, as 
provided in 26 U.S.C. 5214(a)(3);
    (b) On receipt of a signed photocopy of a permit, issued under part 
22 of this chapter, to procure spirits by and for the use of the United 
States or any governmental agency, any State, any political division of 
a State, or the District of Columbia, for nonbeverage purposes as 
provided in 26 U.S.C. 5214(a)(2);
    (c) On receipt of a valid permit, issued under this part, to procure 
spirits by and for the use of the United States, under the provisions of 
26 U.S.C. 7510, for purposes other than as provided in paragraph (b) of 
this section and 26 U.S.C. 5214(a)(2);
    (d) After being specially denatured--
    (1) On receipt of a signed photocopy of a permit to procure 
specially denatured spirits, issued under part 20 of this chapter.
    (2) For export;
    (e) After being completely denatured, for any lawful purpose;
    (f) When contained in an article.

(Act of August 16, 1954, Ch. 736, 68A Stat. 900 (26 U.S.C. 7510); sec. 
201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9160, Mar. 6, 1985]



Sec.  19.537  Withdrawal of spirits free of tax.

    Spirits withdrawn free of tax under Sec.  19.536 (a), (b), or (c) 
shall be withdrawn in approved containers and shipped to the consignee 
designated in the permit. Unless the spirits are in cases or are to be 
withdrawn on the production or filling gauge, the proprietor shall gauge 
each container. If the spirits are in packages which are to be gauged, 
the proprietor shall prepare a package gauge record according to Sec.  
19.769, and attach it to the record of shipment. For each shipment the 
proprietor shall prepare a record of shipment (shipping invoice, bill of 
lading, or another document intended for the same purpose) and forward 
the original to the consignee, in accordance with Sec.  19.779. Bulk 
conveyances used to transport spirits withdrawn free of tax under this 
section shall be secured in accordance with Sec.  19.96.

(Approved by the Office of Management and Budget under control number 
1512-0334)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-199, 50 FR 9160, Mar. 6, 1985]



Sec.  19.538  Withdrawal of spirits by the United States.

    (a) Nonbeverage use. (1) Government agencies of the United States, 
intending to procure specially denatured spirits or spirits free of tax 
for nonbeverage purposes, shall make application for and receive a 
permit, Form 5150.33, from the Administrator. Permits may be issued to 
Government agencies of the United States for:
    (i) Withdrawal and use of specially denatured spirits, in accordance 
with part 20 of this chapter;
    (ii) Withdrawal and use of alcohol free of tax for nonbeverage 
purposes, in accordance with part 22 of this chapter; or
    (iii) Importation and use of alcohol free of tax for nonbeverage 
purposes, in accordance with part 27 of this chapter.
    (2) All permits previously issued to Government agencies of the 
United States for use of spirits or specially denatured spirits on Form 
1444 shall remain valid and will be regulated by the same provisions of 
this chapter as it refers to permits on Form 5150.33.
    (3) A Government agency shall forward a signed copy of its permit, 
Form 5150.33, for retention by the proprietor of the distilled spirits 
plant for the initial purchase. Subsequent orders with the same vendor 
shall refer to the permit number.
    (4) In the case of a Government agency holding a single permit for 
use of other sub-agencies, the signed copy of the permit shall contain 
an attachment listing all other locations authorized to procure spirits 
under that permit.

[[Page 434]]

    (5) For each shipment under this section, the proprietor shall 
prepare a record of shipment and forward the original to the consignee 
agency, in accordance with Sec.  19.779.
    (b) Beverage use. (1) Distilled spirits may be withdrawn free of 
tax, under 26 U.S.C. 7510, for use for beverage purposes by Government 
agencies of the United States on receipt of a proper Government purchase 
order signed by the head of the agency, or an authorized delegate.
    (2) For each withdrawal under paragraph (b)(1) of this section, each 
case removed shall be plainly marked ``For Use of the United States'' in 
addition to the marks required by subpart R of this part.
    (3) For each withdrawal under paragraph (b)(1) of this section, the 
proprietor shall prepare a record containing the information required by 
Sec.  19.761 for a record of tax determination. The proprietor shall 
mark this record ``Free of Tax For Use of the United States.''

(Act of August 16, 1954, Ch. 736, 68A Stat. 900 (26 U.S.C. 7510); sec. 
201, Pub. L. 85-859, 72 Stat. 1370, as amended, 1375, as amended (26 
U.S.C. 5271, 5313))

[T.D. T.D. ATF-199, 50 FR 9160, Mar. 6, 1985,as amended by T.D. ATF-479, 
67 FR 30798, May 8, 2002]



Sec.  19.539  Disposition of excess spirits.

    Upon discontinuance of use of spirits or specially denatured spirits 
withdrawn free of tax under Sec.  19.538, a Government agency may 
dispose of excess spirits (a) to another Government agency (the 
receiving agency is required to have a permit under part 20 or 22 if the 
spirits were withdrawn for nonbeverage purposes), (b) by returning the 
spirits to the proprietor of a distilled spirits plant, or (c) in any 
manner authorized by the appropriate TTB officer. In no case may such 
spirits be disposed of to the general public, or otherwise than as 
provided in this section.

(Act of August 16, 1954, Ch. 736, 68A Stat. 900 (26 U.S.C. 7510); sec. 
201, Pub. L. 85-859, 72 Stat. 1370, as amended, 1375, as amended (26 
U.S.C. 5271, 5313))

[T.D. ATF-199, 50 FR 9161, Mar. 6, 1985]



Sec.  19.540  Removal of denatured spirits and articles.

    (a) Specially denatured spirits. (1) Specially denatured spirits 
withdrawn free of tax under Sec.  19.536(d) shall be shipped in approved 
containers to the consignee designated on the permit. If such spirits 
are for export or for transfer to a foreign-trade zone for export or for 
storage pending exportation, they shall be withdrawn under the 
applicable provisions of part 28 of this chapter.
    (2) Domestic specially denatured spirits may be transferred to 
qualified users located in a foreign-trade zone for use in the 
manufacture of articles under the applicable provisions of part 20 of 
this chapter. The alcohol, as defined in 27 CFR part 20, in domestic 
specially denatured spirits must be produced entirely in the United 
States, including Puerto Rico.
    (3) When specially denatured spirits are shipped to a qualified 
user, dealer, or an applicant or prospective applicant under paragraph 
(c)(2)(ii) of this section, the proprietor shall prepare a record of 
shipment in accordance with Sec.  19.779. Bulk conveyances used to 
transport specially denatured spirits shall be secured in accordance 
with the provisions of Sec.  19.96.
    (b) Completely denatured alcohol. No permit, application, or notice 
is required for removal of completely, denatured alcohol from bonded 
premises.
    (c) Samples of denatured spirits. (1) The proprietor may take 
samples of denatured spirits free of tax which may be necessary for the 
conduct of business.
    (2) The proprietor may furnish samples of specially denatured 
spirits:
    (i) To dealers in, and users of, specially denatured spirits in 
advance of sales; or
    (ii) To applicants or prospective applicants for permits to use 
specially denatured spirits, for experimental purposes or for use in 
preparing samples of a finished product for submission on request by the 
appropriate TTB officer .
    (A) Proprietors shall maintain records to ensure that samples of 
specially denatured spirits dispensed to a nonpermittee do not exceed 
five gallons per calendar year. Records of samples of less than five 
gallons shall be maintained as provided in Sec.  19.766.

[[Page 435]]

    (B) Samples in excess of five gallons may be furnished to 
nonpermittees only after the consignee provides the proprietor with a 
letterhead application approved by the appropriate TTB officer under 
Sec.  20.252 of this chapter. The proprietor shall retain the approved 
letterhead application on file as a part of the record of transaction.
    (C) For each shipment of a sample in excess of five gallons under 
paragraph (c)(2)(ii)(B) of this section, the proprietor shall prepare a 
record of shipment and forward the original to the consignee, in 
accordance with Sec.  19.779.
    (3) Each sample of specially denatured spirits withdrawn under the 
provisions of paragraph (c)(2) of this section shall have a label 
affixed showing the following information:
    (i) The word ``Sample'', and the words ``Specially Denatured 
Alcohol'', or ``Specially Denatured Rum'', whichever is applicable;
    (ii) The name, address, and plant number of the proprietor; and
    (iii) The formula number.
    (d) Articles. Removal of articles from bonded premises shall be in 
accordance with the provisions of part 20 of this chapter.

(Approved by the Office of Management and Budget under control number 
1512-0337)

(48 Stat. 999, as amended, 72 Stat. 1362, as amended, 1370, as amended 
(19 U.S.C. 81c; 26 U.S.C. 5214, 5271))

[T.D. ATF-199, 50 FR 9161, Mar. 1, 1985; 50 FR 20099, May 14, 1985, as 
amended by T.D. ATF-274, 53 FR 25156, July 5, 1988; T.D. TTB-8, 69 FR 
3829, Jan. 27, 2004]



Sec.  19.541  Reconsignment.

    (a) Reconsignment. When, prior to or on arrival at the consignee's 
premises, spirits or specially denatured spirits withdrawn free of tax 
under Sec.  19.536 are not accepted by the consignee or by a carrier, 
the spirits may be reconsigned (1) to the consignor, (2) to another 
proprietor for return to the bonded premises under the provisions of 
Sec.  19.685, or (3) to another permittee holding a valid permit issued 
under part 20 or 22 of this chapter, as applicable.
    (b) Consent of surety. In case of reconsignment to bonded premises, 
the provisions of Sec.  19.685, relating to consent of surety in respect 
to return of spirits or specially denatured spirits withdrawn free of 
tax, are applicable.
    (c) Records of reconsignment. In the case of reconsignment, the 
consignor shall cancel the initial record of shipment and prepare a new 
record of shipment, if shipment is to another permittee or proprietor. 
The new record of shipment shall be marked ``Reconsignment.'' File 
copies of the canceled and the new record of shipment will be annotated 
to cross reference each other.

(Records relating to tax-free alcohol approved by the Office of 
Management and Budget under control number 1512-0334; records relating 
to specially denatured spirits approved by the Office of Management and 
Budget under control number 1512-0337)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-199, 50 FR 9161, Mar. 6, 1985]



                     Subpart Q_Losses and Shortages

                                 Losses



Sec.  19.561  Losses in general.

    (a) Allowable losses. Except as provided in paragraph (b) of this 
section, tax shall not be collected or, if paid, the tax shall be 
refunded when spirits, denatured spirits or wines are lost or destroyed 
while in bond.
    (b) Exceptions. Tax shall be collected in the case of:
    (1) Theft, unless the appropriate TTB officer finds that the theft 
occurred without connivance, collusion, fraud or negligence on the part 
of the proprietor, owner, consignor, consignee, bailee, or carrier, or 
the employees or agents of any of them;
    (2) Voluntary destruction carried out other than as provided in 
subpart U of this part;
    (3) Unexplained shortage of bottled spirits.
    (c) Burden of proof. When it appears that a loss occurred due to 
theft, the burden of proof shall be on the proprietor or other person 
liable for the tax to establish to the satisfaction of the appropriate 
TTB officer that the loss did not result from connivance, collusion, 
fraud, or negligence on the part of the proprietor, owner, consignor, 
consignee, bailee, or carrier, or the employees or agents of any of 
them.

[[Page 436]]

    (d) Claims for losses allowable under this section shall be filed in 
accordance with applicable provisions of subpart C of this part.
    (e) Limitations. The abatement, remission, credit, or refund of 
taxes on spirits, denatured spirits, or wines lost by theft shall be 
allowed only to the extent that the claimant is not indemnified against 
or recompensed for the taxes.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended 
(26 U.S.C. 5008, 5370))



Sec.  19.562  Determination of losses in bond.

    (a) General. (1) Losses (whether by theft, unauthorized voluntary 
destruction, or otherwise) of spirits, denatured spirits, and wines 
shall be determined by the proprietor:
    (i) Each time a tank or bulk conveyance is emptied;
    (ii) On the basis of required physical inventories; and
    (iii) Upon discovery of accidents or unusual variations in gauges.
    (2) When it appears that any container in bond has sustained a loss 
resulting from theft or unauthorized voluntary destruction, such loss 
shall be taxpaid or the container shall be segregated (as necessary) 
with the loss reported promptly to the appropriate TTB officer.
    (3) In any instance in which spirits, denatured spirits or wines are 
lost or destroyed in bond, whether by theft, unauthorized voluntary 
destruction, or otherwise, the appropriate TTB officer may require the 
proprietor or other person liable for the tax to file a claim for relief 
from the tax in accordance with Sec.  19.41.
    (b) Missing packages. Whenever any packages of spirits, denatured 
spirits, or wine recorded as deposited on bonded premises cannot be 
located or otherwise accounted for, the proprietor shall promptly report 
such fact to the appropriate TTB officer, and the proprietor shall 
either pay the tax on the lost spirits, denatured spirits, or wines, or 
file a claim with respect thereto under the provisions of Sec.  19.41.
    (c) Tampering, material deficiency, or loss of proof. When it is 
found that spirits, denatured spirits, or wines in a container have been 
tampered with, or when a material deficiency in the recorded quantity of 
such products is found without evidence of loss by leakage or casualty, 
or when there is a loss of proof of such products not attributable to 
variations in gauging, the proprietor shall segregate the container (as 
necessary) and shall promptly report such fact to the appropriate TTB 
officer, unless the proprietor acknowledges liability for the tax on the 
loss and elects to pay the tax on the quantity lost.
    (d) Excessive in-transit losses. Losses of spirits, denatured 
spirits, or wines received in bond in bulk conveyances which exceed one 
percent of the quantity of a product consigned shall be considered as 
excessive in-transit losses. However, in the case of transcontinental 
transfers in bond of wine, only losses in excess of two percent of the 
quantity of wine consigned shall be considered as excessive in-transit 
losses. The proprietor shall promptly report all such excessive in-
transit losses to the appropriate TTB officer.
    (e) Storage account loss limitation. When the quantity of spirits 
lost from all the storage tanks and bulk conveyances exceeds 1\1/2\ 
percent of the total quantity contained in the tanks and bulk 
conveyances during the calendar quarter, the loss shall be taxpaid 
unless a claim for remission is filed in accordance with the provisions 
of Sec.  19.41 and is allowed by the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended 
(26 U.S.C. 5008, 5370))



Sec.  19.563  Loss of spirits from packages.

    (a) Original quantity. Where there is evidence satisfactory to the 
appropriate TTB officer that any loss of spirits (including denatured 
spirits) from any package deposited on bonded premises is due to theft 
(except where the appropriate TTB officer has made the finding provided 
for in Sec.  19.561(b)) or is due to unauthorized voluntary destruction, 
the appropriate TTB officer may require the immediate tax payment of the 
quantity of spirits so lost, except where the extent of any loss from

[[Page 437]]

causes other than theft or unauthorized voluntary destruction can be 
established by the proprietor to the satisfaction of the appropriate TTB 
officer, the appropriate TTB officer may credit the tax on the loss so 
established against the tax on the original quantity.
    (b) Alternative method. Where there is evidence satisfactory to the 
appropriate TTB officer that there has been access, other than as 
authorized by law, to the contents of packages entered for deposit on 
bonded premises, and the extent of such access is such as to evidence a 
lack of due diligence or a failure to employ necessary and effective 
controls on the part of the proprietor, the appropriate TTB officer may 
(in lieu of the procedure prescribed in paragraph (a) of this section) 
assess an amount equal to the tax on 5 proof gallons of spirits on each 
of the total number of such packages as determined by him.
    (c) Applicability to packages filled after entry. The provisions of 
this section apply to spirits (including denatured spirits) which are 
filled into casks or packages as authorized by law, after entry and 
deposit on bonded premises, whether by recasking, filling from tanks, 
mingling, or otherwise. The quantity filled into those casks or packages 
is considered to be the original quantity for the purpose of this 
section in the case of loss from those casks or packages.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1320, as amended (26 U.S.C. 5006))



Sec.  19.564  Losses after tax determination.

    (a) Applicability. Pursuant to a claim, the tax on spirits which are 
lost after determination of tax and before completion of physical 
removal from bonded premises, may be abated or remitted or refunded or 
credited without interest to the proprietor of the bonded premises where 
the loss occurred.
    (b) Conditions. (1) Claims for losses under this section shall be 
filed in accordance with subpart C of this part.
    (2) This section shall not apply if the tax would have been 
collectible by reason of 26 U.S.C. 5008(a)(1) if the loss occurred on 
bonded premises before determination of tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))

                                Shortages



Sec.  19.565  Shortages of bottled distilled spirits.

    (a) Determination of shortage. Unexplained shortages shall be 
determined by comparing the spirits recorded to be on hand with the 
results of the quantitative determination of the spirits found to be on 
hand by actual count during the physical inventory required by Sec.  
19.402. When the recorded quantity is greater than the quantity 
determined by the physical inventory, the difference is an unexplained 
shortage. The records shall be adjusted to reflect the physical 
inventory.
    (b) Payment of tax on shortage. An unexplained shortage of bottled 
distilled spirits shall be taxpaid:
    (1) Immediately on a prepayment return on Form 5000.24, or
    (2) On the return on Form 5000.24 for the return period during which 
the shortage was ascertained.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))

[T.D. TTB-41, 71 FR 5602, Feb. 2, 2006]



                     Subpart R_Containers and Marks

                               Containers



Sec.  19.581  Authorized containers.

    (a) General. Proprietors shall use for any purpose of containing, 
storing, transferring, conveying, removing, or withdrawing spirits or 
denatured spirits under this part only containers which are authorized 
by, or under the provisions of this part for such purpose, and a 
container so authorized will be deemed to be an approved container for 
such purpose. Except where stated otherwise, the provisions of part 20 
of this chapter apply to containers used for containing, storing and 
shipping of articles, and the provisions of 27 CFR part 24 apply to 
containers used for storage or transfer of wine. Except for liquor 
bottles, this subpart does not regulate or prohibit the use on plant 
premises of any container for purposes

[[Page 438]]

other than containing alcoholic substances.
    (b) Alternate containers. In addition to the types of containers 
specifically authorized by this part for a particular purpose, a 
container of another type may be authorized for that purpose by the 
appropriate TTB officer on a finding by him that the use of such 
container will afford protection to the revenue equal to or greater than 
that afforded by the containers specifically authorized by this part, 
and that the use will not cause administrative difficulty. If another 
container is so authorized by the appropriate TTB officer, he shall 
prescribe the detail and manner in which such container shall be 
constructed, protected, and marked, consistent with the provisions of 
this part and the extent of such use. Similarly, where a container 
authorized for a particular purpose is required by this subpart to be 
made of specified materials, the appropriate TTB officer may authorize 
the use of containers made of other materials which he has found to be 
suitable for the intended purpose.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended, 
1374, as amended (26 U.S.C. 5206, 5212, 5214, 5301); sec. 805, Pub. L. 
96-39, 93 Stat. 279 (26 U.S.C. 5002); sec. 807, Pub. L. 96-39, 93 Stat. 
285 (26 U.S.C. 5213))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9162, Mar. 6, 1985; T.D. 372, 61 FR 20724, May 8, 1996]



Sec.  19.582  Spirits for nonindustrial use.

    (a) Determination of use. Containers of spirits of a capacity of 1 
gallon (3.875 liters) or less are considered to be for nonindustrial 
use, except for those which contain:
    (1) Anhydrous alcohol; or
    (2) Alcohol which may be withdrawn from bond free of tax.
    (b) Containers. If not inconsistent with the provisions in 27 CFR 
part 5, spirits for nonindustrial use may be filled into:
    (1) Packages, or
    (2) Other containers which are filled during processing operations 
and contain not more than 10 gallons.
    (c) Bottles and labels. The provisions of subpart S of this part 
govern the liquor bottles and labels to be used in bottling spirits for 
nonindustrial domestic use.
    (d) Cases. Spirits for nonindustrial use in containers with a 
capacity of 1 gallon or less shall be placed in cases which afford 
reasonable protection against breakage. Such cases shall not be 
transferred in bond.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1374, as amended 
(26 U.S.C. 5206, 5212, 5301))



Sec.  19.583  Spirits for industrial use.

    (a) Containers. (1) Denatured spirits may be filled into glass or 
metal containers of a capacity not greater than 10 gallons.
    (2) Other spirits for industrial use may be filled into
    (i) Containers of 1 gallon or less; or
    (ii) Glass or metal containers of a capacity of 1 gallon but not 
greater than 10 gallons.
    (b) Encased containers. Unlabeled containers holding from 1 to 10 
gallons of denatured spirits and spirits of 190 degree proof or more for 
industrial use may be encased in wood, fiberboard, or similar material 
if:
    (1) The cases are constructed so that the surface, including the 
opening, of the container is not exposed;
    (2) Required marks are applied to an exterior surface of the case;
    (3) The case is constructed so that the portion containing marks 
will remain attached to the inner container until all the contents have 
been removed; and
    (4) A statement reading ``Do not remove inner container until 
emptied'' or of similar meaning is placed on the portion of the case 
bearing the marks.
    (c) Cases. Except for encased containers, containers for denatured 
spirits and spirits for industrial use of a capacity of 1 gallon or less 
shall be placed in cases which afford reasonable protection against 
breakage.
    (d) Articles. Articles shall be packaged and labeled in accordance 
with the provisions of 27 CFR part 20.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1374, as amended 
(26 U.S.C. 5206, 5301))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9162, Mar. 6, 1985; T.D. ATF-206, 50 FR 23952, June 7, 1985]

[[Page 439]]



Sec.  19.584  Packages.

    Packages may be used on bonded premises for original entry of 
spirits, and for packaging from tanks, storing, transferring in bond, 
and withdrawing from bonded premises of spirits and denatured spirits. 
Packages shall be constructed so as to be capable of secure closure.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.585  Bulk conveyances.

    Bulk conveyances which conform to the requirements of Sec.  19.588 
may be used on bonded premises for original entry of spirits, and for 
filling from tanks, storing, transferring in bond, and withdrawing 
taxpaid spirits and denatured spirits. Spirits may be withdrawn free of 
tax, pursuant to the provisions of this part, in a bulk conveyance only 
for use of the United States, or if the appropriate TTB officer has 
authorized the proprietor, as provided in Sec.  19.581, to so withdraw 
such spirits to a specified consignee. Spirits may be withdrawn without 
payment of tax, pursuant to the provisions of this part, in bulk 
conveyances for the purposes provided in Sec.  19.531 (a), (b), (c), 
(e), and (f).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.586  Tanks.

    Tanks which conform to the requirements of Sec.  19.273 may be used 
on bonded premises as containers for distilled spirits, denatured 
spirits, articles, and wines.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.587  Pipelines.

    Pursuant to the provisions of this part, pipelines which conform to 
the requirements of Sec.  19.274 may be used for (a) the conveyance on 
bonded premises of spirits, denatured spirits, articles, and wines, and 
(b) the conveyance to and from bonded premises of spirits, denatured 
spirits, articles, and wines.

(Sec. 201, Pub. L 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.588  Construction of bulk conveyances.

    (a) Construction. All bulk conveyances authorized by this part shall 
conform to the following:
    (1) If the conveyance consists of two or more compartments, each 
shall be so constructed or arranged that emptying of any compartment 
will not afford access to the contents of any other compartment.
    (2) The conveyance (or in the case of compartmented conveyances, 
each compartment) shall be so arranged that it can be completely 
drained.
    (3) Each tank car or tank truck shall have permanently and legibly 
marked thereon its number, capacity in wine gallons, and the name or 
symbol of its owner.
    (4) If the conveyance consists of two or more compartments, each 
compartment shall be identified and the capacity of each shall be marked 
thereon.
    (5) A route board, or other suitable device, for carrying required 
marks or brands shall be provided on each bulk conveyance.
    (6) Calibrated charts showing the capacity of each compartment in 
wine gallons for each inch of depth, shall be available for use in 
measuring the contents of each tank truck, tank ship, or barge.
    (b) Proprietor's responsibility. Before filling any bulk conveyance, 
the proprietor shall examine it to ascertain that it meets the 
requirements of this section and is otherwise suitable for receiving the 
spirits, denatured spirits, or wines, and he shall refrain from, or 
discontinue, using any such conveyance found by him or by an appropriate 
TTB officer to be unsuitable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended 
(26 U.S.C. 5206, 5212, 5214); sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 
U.S.C. 5213))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23952, June 7, 1985]



Sec.  19.589  Restrictions on disposition of bulk spirits.

    (a) For nonindustrial use. Spirits for nonindustrial use may be sold 
or disposed of in containers holding more than 1 wine gallon only to the 
persons

[[Page 440]]

and for the purposes set forth in 27 CFR part 3.
    (b) For industrial use. Shipment or delivery of spirits (other than 
alcohol or neutral spirits) withdrawn from bond in containers holding 
more than 1 wine gallon for industrial use shall, as provided in 27 CFR 
part 3, be made directly to the user of the spirits.

(Sec. 201, Pub. L. 85-895, 72 Stat. 1356, as amended (26 U.S.C. 5201))

                                  Marks



Sec.  19.592  General.

    Proprietors shall mark, identify, and label all containers of 
spirits or denatured spirits as provided by this part. Containers of 
wine shall be marked in accordance with 27 CFR part 24. Containers of 
articles shall be marked in accordance with 27 CFR part 211.

(Sec. 201 Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended 
(26 U.S.C. 5204, 5206))

[T.D. ATF-206, 50 FR 23952, June 7, 1985, as amended by T.D. 372, 61 FR 
20724, May 8, 1996]



Sec.  19.593  Package identification numbers in production and storage.

    (a) General. Packages of spirits filled during production or storage 
operations after December 31, 1979, shall be marked with a lot 
identification representing the date the package is filled, and 
consisting, in the order shown, as follows:
    (1) The last two digits of the calendar year;
    (2) An alphabetical designation from ``A'' through ``L'', 
representing January through December, in that order;
    (3) The digits corresponding to the day of the month; and
    (4) When more than one lot is filled into packages during the same 
day, for successive lots after the first lot, a letter suffix, in 
alphabetical order, with ``A'' representing the second lot, ``B'' 
representing the third lot, and so forth.

The first three lots filled into packages on January 2, 1980, would be 
identified as ``80A02'', ``80A02A'', ``80A02B''.
    (b) Packages constituting a lot. Packages of spirits received from 
customs custody or filled during any one day shall be given the same lot 
identification subject to the following conditions:
    (1) They are of the same type and either are of the same rated 
capacity or are uniformly filled with the same quantity by weight or 
other method provided in Sec.  19.319;
    (2) They are filled with spirits of the same kind and same proof;
    (3) They are filled with spirits which are mingled in accordance 
with Sec.  19.346; and
    (4) They are filled with imported spirits, Puerto Rican spirits, or 
Virgin Islands spirits, as applicable. Any remnant package shall itself 
constitute a lot.
    (c) Serial numbers. The appropriate TTB officer may require serial 
numbers on packages of spirits within the same lot in conjunction with 
the lot identification, at the time of filling, receipt on bonded 
premises, or withdrawal from bond. Proprietors shall assign temporary 
serial numbers to packages for control purposes when they are 
transferred in bond in an unsecured conveyance or gauged after being 
tampered within the storage account.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



Sec.  19.594  Numbering of packages and cases in processing.

    (a) General. Packages of spirits and denatured spirits filled during 
processing operations and cases containing bottles or other containers 
of spirits and denatured spirits shall, when filled, be consecutively 
numbered in a separate series by the proprietor commencing with ``1'' in 
each series of serial numbers, except that any series of such numbers in 
use may be continued. When the numbering in any series reaches 
``1,000,000'', the proprietor may recommence the series. However, a new 
series for packages of spirits and denatured spirits filled during 
processing operations shall be given an alphabetical prefix or suffix. 
For additional identification, separate series of serial numbers, 
distinguished from each other by the use of alphabetical prefixes or 
suffixes, may be established to identify size of bottles, brand names, 
or other information, on written notice to

[[Page 441]]

the appropriate TTB officer. Remnant cases shall be given the serial 
number of the last full case followed by the letter R. Where there is a 
change in the individual, firm, corporate name, or trade name, all 
series in use at that time shall be continued. However, for a change in 
proprietorship, a new series shall be commenced.
    (b) Alternative method for spirits, including denatured spirits, for 
industrial use. Instead of the numbering required by paragraph (a) of 
this section, packages and cases of spirits, including denatured 
spirits, for industrial use filled in processing may be marked with lot 
identification numbers provided in Sec.  19.593.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.595  Specifications for marks.

    (a) Manner. (1) The proprietor shall place the prescribed marks on 
cases, encased containers, and packages of spirits and denatured spirits 
so that they are:
    (i) Of sufficient size to be easily read;
    (ii) Of a color distinctly in contrast to that of the background;
    (iii) Legible; and
    (iv) Durable.
    (2) Cases, encased containers or packages may be marked by the use 
of labels which are legible and securely affixed.
    (b) Location. The required marks shall be placed on one side or 
head, as applicable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.596  Marks on packages of spirits filled on bonded premises.

    (a) Packages filled in production or storage. Except as otherwise 
provided in this part, packages of spirits filled in production or 
storage shall be marked with:
    (1) The name of the producer, or his trade name as required by 
paragraph (c) of this section;
    (2) The plant number of the producer, such as ``DSP-KY-708'';
    (3) The kind of spirits or, in the case of distillates removed under 
Sec.  19.322, the kind of distillates such as ``Grape distillate'', 
``Peach distillate'', etc.;
    (4) The package identification number;
    (5) ``BSA'' or ``OC'' when spirits are treated with caramel or oak 
chips, as the case may be;
    (6) The rated capacity of the package in gallons shown as ``RC--G''.
    (7) If packages of spirits of 190 degrees or more of proof are 
filled by other than the producer, the name (or trade name) and plant 
number of the packaging proprietor shall be substituted for that of the 
producer.
    (b) Packages filled in processing. Except as otherwise provided in 
this part, packages of spirits filled in processing shall be marked 
with:
    (1) The name of the processor, or his trade name;
    (2) The plant number of the processor, such as ``DSP-KY-708'';
    (3) The kind of spirits (in the case of an intermediate, the product 
name shown on Form 5110.38);
    (4) The serial number or lot identification number, as applicable, 
and date of filling;
    (5) Proof of spirits; and
    (6) If manufactured under an approved formula, the serial number of 
the formula.
    (c) Real or trade names. The producer's real name or any trade name 
authorized (as provided in Sec.  19.165), at the time of production, may 
be placed on any package filled at the time of production gauge, or at 
the time of original packaging of the spirits in wood when, as provided 
in Sec.  19.320, the spirits were not filled into wooden packages at the 
time of production gauge. When spirits have been mingled under Sec.  
19.346, the proprietor may use any of the names represented in the 
mingled spirits, but no other name, as the name of the producer to be 
marked on packages filled with such mingled spirits. However, if the 
proprietor was the actual producer of the spirits, he may in any case 
use his real name. The processor's real name or any trade name 
authorized (as provided in Sec.  19.165) may be placed on any package 
filled with spirits during processing operations.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[[Page 442]]



Sec.  19.597  Kind of spirits.

    (a) Designation. The designations as to kind of spirits required by 
Sec.  19.596 shall be in accordance with the classes and types of 
spirits set out in 27 CFR part 5, except that:
    (1) Spirits distilled at more than 160 degrees of proof, which lack 
the taste, aroma, and other characteristics generally attributed to 
whisky, brandy, rum, or gin, and which are substantially neutral in 
character, may be designated as ``Alcohol''. When alcohol is withdrawn 
on determination of tax, the designation shall consist of the word 
``Alcohol'' preceded or followed by a word or phrase descriptive of the 
material from which the alcohol was produced.
    (2) The designations for vodka, neutral spirits, or gin shall 
include a word or phrase descriptive of the material from which the 
spirits so designated were produced.
    (3) Spirits distilled at less than 190 degrees of proof which lack 
the taste, aroma, and other characteristics generally attributed to 
whisky, brandy, rum, or gin, may be designated ``Spirits'', preceded or 
followed by a word or phrase descriptive of the material from which 
produced. However, spirits distilled on or after July 1, 1972, as 
provided in this paragraph may not be designated ``Spirits grain'' or 
``Grain spirits''.
    (4) Spirits distilled from fruit at or above 190 degrees of proof, 
if intended for use in wine production, shall be designated ``Neutral 
Spirits--Fruit'', preceded or followed by the name of the fruit from 
which produced.
    (5) Spirits distilled at not more than 160 degrees of proof from a 
fermented mash of not less than 51 percent rye, corn, wheat, malted 
barley, or malted rye grain, packaged in reused cooperage, may be 
designated ``Whisky'' if further qualified with the words ``Distilled 
from rye mash'' (or bourbon, wheat, malt, or rye malt mash, as the case 
may be). However, such spirits shall, if distilled from a fermented mash 
of not less than 80 percent corn, be designated ``Corn Whisky.''
    (b) Change of designation. A proprietor may, on written application 
to, and approval of the appropriate TTB officer, change the original 
designation for spirits at any time, before their withdrawal from bonded 
premises, to a new designation properly describing the spirits in 
accordance with the provisions of this section.
    (c) Other designations. If the proprietor proposes to produce 
spirits for which a designation has not been prescribed, he shall first 
make written application to the appropriate TTB officer for a 
designation for such spirits and such spirits shall be branded 
accordingly.
    (d) Spirits for nonindustrial use. The provisions of this section 
shall not be construed as authority for applying designations to spirits 
withdrawn for nonindustrial use which designations do not comply with 
provisions of 27 CFR part 5.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.598  [Reserved]



Sec.  19.599  Change of packages in storage.

    When spirits are transferred from one package to another as 
authorized in Sec.  19.345, each new package shall be given the same 
package identification number and marks as the original package. The 
proprietor shall prepare and sign a label to be affixed to the head of 
each new package in the manner prescribed for affixing distilled spirits 
stamps. The label shall be in the following form:

    The spirits in this --------------------, (kind of cooperage) ------
--------------, (Barrel or drum) package identification No. ------------
--------, were transferred from a ------------------, ------------------
--, (kind of cooperage) --------------------, (Barrel or drum) on ------
--------------, (Date),

________________________________________________________________________

                              (Proprietor)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.600  [Reserved]



Sec.  19.601  Marks on containers of specially denatured spirits.

    (a) General. Each package, case, and encased container of specially 
denatured spirits filled on bonded premises shall be marked or labeled 
to show:

[[Page 443]]

    (1) Quantity in gallons;
    (2) Serial number or lot identification number;
    (3) Plant number of the proprietor;
    (4) Designation or abbreviation of the specially denatured spirits 
by kind (alcohol or rum);
    (5) Formula number; and
    (6) Proof of spirits which were denatured at other than 190 degrees 
of proof.
    (b) Bottles. Each bottle shall be marked or labeled to show the 
information prescribed in paragraph (a) (1), (3), (4), (5), and (6) of 
this section.
    (c) Alternate formulations. When spirits are denatured under a 
formula authorizing a choice of types and quantities of denaturants, the 
container or case shall be marked to show actual types and quantities of 
denaturants used.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  19.602  Marks on containers of completely denatured alcohol.

    Each container of completely denatured alcohol, except pipelines and 
bulk conveyances, shall have marked on the head of the package, or side 
of the can or carton, the name of the proprietor by whom the containers 
were filled, the plant number where filled, the contents in wine 
gallons, the apparent proof, the words ``Completely Denatured Alcohol'', 
and the formula number.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended) (26 U.S.C. 5206))



Sec.  19.603  [Reserved]



Sec.  19.604  Caution label.

    Each container of completely denatured alcohol containing five 
gallons or less, sold or offered for sale, shall be labeled to show, in 
plain, legible letters, the words ``Completely Denatured Alcohol'' and 
the following statement ``Caution--contains poisonous ingredients.'' The 
name and address of the denaturer may be printed on such label, but no 
other extraneous matter will be permitted thereon without the approval 
of the appropriate TTB officer. The word ``pure'', qualifying denatured 
alcohol, will not be permitted to appear on the label or the container.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9162, Mar. 6, 1985]



Sec.  19.605  Additional marks on portable containers.

    (a) In addition to the other marks required by this part, portable 
containers (other than bottles enclosed in cases) of spirits or 
denatured spirits to be withdrawn from the bonded premises:
    (1) Without payment of tax, for export, transfer to customs 
manufacturing bonded warehouses, transfer to foreign-trade zones or 
supplies for certain vessels and aircraft, shall be marked as provided 
in 27 CFR part 28; or
    (2) Tax-free alcohol shall be marked with the word ``Tax-Free.''
    (b) The proprietor may show other information such as brand or trade 
name; caution notices and other material required by Federal, State, or 
local law or regulations; wine or proof gallons; and plant control data. 
However, marks or attachments shall not conceal, obscure, interfere with 
or conflict with the markings required by this subpart.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3829, Jan. 27, 2004]



Sec.  19.606  Marks on bulk conveyances.

    (a) The proprietor shall securely attach to the route board, or 
other suitable device, of each bulk conveyance used to transport spirits 
or denatured spirits, a label to identify each conveyance or compartment 
as follows:
    (1) Name, plant number, and location of the consignor;
    (2) Name, plant number, permit number, or registry number (as 
applicable), and location of the consignee;
    (3) Date of shipment;
    (4) Quantity (proof gallons for spirits, wine gallons for denatured 
spirits); and
    (5) Formula number for denatured spirits.

[[Page 444]]

    (b) The provisions of paragraph (a) of this section shall not apply 
when the conveyance is accompanied by documentation which contains the 
information required by paragraph (a) of this section.
    (c) In addition, export shipments shall conform to the requirements 
of 27 CFR part 28.
    (d) Bulk conveyances used to transport articles or wine shall 
conform to the requirements of part 20 or 240 of this chapter, as 
applicable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9162, Mar. 6, 1985; T.D. TTB-8, 69 FR 3829, Jan. 27, 2004]



Sec.  19.607  Marks on cases.

    (a) Mandatory marks. Except for cases marked as provided in Sec.  
19.608, the following information shall be plainly marked on each case 
of spirits filled in processing:
    (1) Serial number;
    (2) Kind of spirits;
    (3) Plant number where bottled;
    (4) Date filled;
    (5) Proof; and
    (6) Liters or proof gallons.

Cases removed for export, transfer to customs bonded warehouses or 
customs manufacturing bonded warehouses, transfer to foreign-trade 
zones, or for use as supplies on certain vessels and aircraft, shall 
bear the additional marks required by 27 CFR part 28.
    (b) Other marks. In addition to the required marks on cases filled 
in processing, the proprietor may include other marks such as;
    (1) Name or trade name, and location of desired, of the bottler, and 
in conjunction therewith the word ``Bottler'';
    (2) For products actually distilled or processed by the proprietor, 
his name or trade name, and location, if desired, and in conjunction 
therewith the words ``Distiller'' or ``Processor'' as applicable;
    (3) For products actually imported and bottled by the proprietor, 
the words ``Imported and Bottled By'', followed by his name or trade 
name, and location if desired;
    (4) For products bottled for a dealer, the words ``Bottled For'', 
followed by the name of such dealer;
    (5) Other material required by Federal or State law and regulations; 
or
    (6) Labels or data describing the contents for commercial 
identification or accounting purposes, or indicating payment of State or 
local taxes.


The marks authorized by this paragraph shall not interfere with or 
detract from the mandatory marks prescribed in paragraph (a) of this 
section.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206); 
sec. 3(a), Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3829, Jan. 27, 2004]



Sec.  19.608  Cases of industrial alcohol.

    (a) Mandatory marks. Each case, including encased containers, of 
alcohol bottled for industrial use in accordance with subpart M of this 
part shall be marked as applicable, to show--
    (1) ``Alcohol'';
    (2) Serial number or lot identification number;
    (3) Plant number;
    (4) Proof;
    (5) Proof gallons;
    (6) ``Tax-Free''; and
    (7) Information required by 27 CFR part 28, for cases withdrawn for 
export, transferred to customs bonded warehouses, transferred to 
foreign-trade zones, or supplies for certain vessels and aircraft.
    (b) Other marks. Cases may be marked with other marks which do not 
interfere with or detract from mandatory case marks in the manner 
permitted by Sec.  19.607.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1369, as amended 
(26 U.S.C. 5206, 5235))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3829, Jan. 27, 2004]



Sec.  19.609  [Reserved]



Sec.  19.610  Obliteration of marks.

    Except as provided in Sec.  19.597(b), the marks required by this 
part to be placed on any container or case shall

[[Page 445]]

not be destroyed or altered before the container or case is emptied.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5206))

[T.D. ATF-206, 50 FR 23952, June 7, 1985]



Sec.  19.611  Relabeling and reclosing off bonded premises.

    The proprietor of a distilled spirits plant may relabel, affix brand 
labels, or reclose bottled taxpaid spirits on wholesale liquor dealer 
premises or at a taxpaid storeroom on, contiguous to, adjacent to, or in 
the immediate vicinity of the plant, if such wholesale liquor dealer 
premises or taxpaid storeroom is operated in connection with the plant. 
If products which are relabeled under this section were originally 
bottled by another proprietor, the relabeling proprietor shall have on 
file a statement from the original bottler consenting to the relabeling.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-206, 50 FR 23952, June 7, 1985]



Sec.  19.612  Authorized abbreviations to identify marks.

    In addition to the abbreviations and symbols which are authorized in 
this part for use in marking containers, the following abbreviations may 
be used to identify certain marks:

------------------------------------------------------------------------
                    Mark                             Abbreviation
------------------------------------------------------------------------
Completely Denatured Alcohol...............  CDA
Distilled Spirits Stamps...................  DSS
Gallon or Wine Gallon......................  WG
Gross Weight...............................  G
Proof......................................  P
Specially Denatured:
    Alcohol................................  SDA
    Rum....................................  SDR
Tare.......................................  T
Tax Determined.............................  TD
Wine Spirits Addition......................  WSA
------------------------------------------------------------------------


(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]



             Subpart S_Liquor Bottle and Label Requirements



Sec.  19.631  Scope of subpart.

    The provisions of Sec. Sec.  19.632 through 19.639 of this subpart 
shall apply only to liquor bottles having a capacity of 200 ml or more 
except where expressly applied to liquor bottles of less than 200 ml 
capacity. The provisions of Sec. Sec.  19.641 through 19.650 of this 
subpart shall apply to all liquor bottles, regardless of size.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1374, as amended 
(26 U.S.C. 5206, 5301))

                       Liquor Bottle Requirements



Sec.  19.632  Bottles authorized.

    Liquor bottles for domestic use shall conform to the applicable 
standards of fill provided in subpart E of 27 CFR part 5, including 
those for liquor bottles of less than 200 ml capacity. The use of any 
bottle size other than as authorized in subpart E of 27 CFR part 5 is 
prohibited for the bottling of nonindustrial distilled spirits for 
domestic purposes.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))



Sec.  19.633  Distinctive liquor bottles.

    (a) Application. A proprietor desiring approval of domestic liquor 
bottles of distinctive shape or design, including bottles of less than 
200 ml capacity, or, to use such distinctive liquor bottles, shall 
submit TTB Form 5100.31 to the appropriate TTB officer for approval. The 
applicant shall certify as to the total capacity of a representative 
sample bottle before closure (expressed in milliliters) on each copy of 
the form. In addition, the applicant shall affix a readily legible 
photograph (both front and back of the bottle) to the front of each copy 
of TTB Form 5100.31, along with the label(s) to be used on the bottle. 
The applicant shall not submit an actual bottle or an authentic model 
unless specifically requested to do so.
    (b) Approval. Properly submitted TTB Forms 5100.31 for approval of 
distinctive liquor bottles shall be approved by the appropriate TTB 
officer if the bottles are found to--
    (1) Meet the requirements of 27 CFR part 5;
    (2) Be distinctive;
    (3) Be suitable for their intended purpose;
    (4) Not jeopardize the revenue; and
    (5) Not be deceptive to the consumer.

[[Page 446]]


The applicant shall keep a copy of the approved TTB Form 5100.31, 
including an approved photograph (both front and back) of the 
distinctive liquor bottle, on file at his premises. If TTB Form 5100.31 
is disapproved, the applicant shall be notified of the appropriate TTB 
officer's decision and the reasons therefor.
    (c) Cross reference. For procedures regarding issuance, denial and 
revocation of distinctive liquor bottle approvals, as well as appeal 
procedures, see part 13 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-242, 51 
FR 39525, Oct. 29, 1986; T.D. ATF-406, 64 FR 2134, Jan. 13, 1999]



Sec.  19.634  Receipt and storage of liquor bottles.

    No proprietor shall accept shipment or delivery of liquor bottles 
except from the manufacturer thereof, a supplier abroad, or another 
proprietor. However, the appropriate TTB officer may, pursuant to 
letterhead application, authorize a proprietor to receive and reuse 
liquor bottles assembled for such proprietor as provided in 27 CFR 
31.263. Liquor bottles, including those of less than 200 ml capacity, 
shall be stored in a safe and secure place, either on the proprietor's 
qualified premises or at another location.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. TTB-25, 70 
FR 19882, Apr. 15, 2005]



Sec.  19.635  Bottles to be used for display purposes.

    Liquor bottles may be furnished to liquor dealers for display 
purposes, provided that each bottle is marked to show that it is to be 
used for such purpose. The disposition of such bottles, showing names 
and addresses of consignees, dates of shipment, and size, quantity, and 
description of bottles, shall be included in the records required under 
Sec.  19.747.

(Approved by the Office of Management and Budget under control number 
1512-0198)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23952, June 7, 1985]



Sec.  19.636  Bottles for testing purposes.

    Proprietors may ship liquor bottles to persons for testing. The 
disposition of such bottles, showing the name and address of the person 
to whom the bottles are shipped, date of shipment, and the size and 
number of bottles shipped, shall be included in the records required 
under Sec.  19.747.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))



Sec.  19.637  Bottles not consitituting approved containers.

    The appropriate TTB officer shall disapprove for use as a liquor 
bottle any bottle, including a bottle of less than 200 ml capacity, 
which he determines to be deceptive. Any such bottle is not an approved 
container for the purposes of Sec.  19.581 of this part, and shall not 
be used for packaging distilled spirits for domestic purposes.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))



Sec.  19.638  Disposition of stocks of liquor bottles.

    When a proprietor discontinues operations, or permanently 
discontinues the use of a particular size or type of liquor bottle, the 
stocks of such bottles on hand shall either be disposed of to another 
person authorized to receive liquor bottles, or destroyed, including 
disposition for purposes which will render them unusable as bottles. 
However, on approval of a written application by the appropriate TTB 
officer of the region in which the proprietor's plant is located, liquor 
bottles may be otherwise disposed of.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))



Sec.  19.639  Use and resale of liquor bottles.

    No proprietor shall use any liquor bottle except for packaging 
distilled

[[Page 447]]

spirits, or dispose of any empty liquor bottle except to another person 
authorized to receive liquor bottles or as provided in Sec.  19.638. 
Bottles may be furnished to others for display and testing purposes as 
provided in Sec. Sec.  19.635 and 19.636, respectively.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

                        Bottle Label Requirements



Sec.  19.641  Certificate of label approval or exemption.

    (a) Requirement. Proprietors are required by 27 CFR part 5 to obtain 
approval of labels, or exemption from label approval, for any label to 
be used on bottles of spirits for domestic use and shall exhibit 
evidence of label approval, or of exemption from label approval, on 
request of an appropriate TTB officer.
    (b) Cross reference. For procedures regarding the issuance, denial 
and revocation of certificates of label approval and certificates of 
exemption from label approval, as well as appeal procedures, see Part 13 
of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-406, 64 FR 2134, Jan. 13, 1999]



Sec.  19.642  Statements required on labels under an exemption from label approval.

    All labels to be used on bottles of spirits for domestic use under 
an exemption from label approval shall contain the applicable 
information required in Sec. Sec.  19.643 through 19.650. Where a 
statement of age or age and percentage is required, it shall have the 
meaning given, and be stated in the manner provided in 27 CFR part 5.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.643  Brand name, kind, alcohol content, and State of distillation.

    (a) Brand name and kind. The label of distilled spirits shall state 
the brand name and kind, as set out in 27 CFR part 5.
    (b) Alcohol content--(1) Mandatory statement. The label of distilled 
spirits shall state the alcohol content in percent-alcohol-by-volume. 
Products such as ``Rock and Rye'' or similar products containing a 
significant amount of solid material shall state the alcohol content at 
the time of bottling as follows: ``Bottled at ------ percent-alcohol-by-
volume.''
    (2) Optional statement. In addition, the label may also state the 
alcohol content in degrees of proof if this information appears in 
direct conjunction (i.e. with no intervening material) with the 
statement expressed in percent-alcohol-by-volume. If both forms of 
alcohol content are shown, the optional statement in degrees of proof 
shall be placed in parentheses, in brackets, or otherwise distinguished 
from the mandatory statement in percent-alcohol-by-volume to emphasize 
the fact that both expressions of alcohol content mean the same thing.
    (c) State of distillation--(1) Mandatory statement. If a whisky 
produced in the United States was not produced in the State shown on the 
label, the label shall show the State of distillation, except as 
provided by paragraph (c)(2) or (c)(3) of this section. The appropriate 
TTB officer may, however, require the State of distillation to be shown 
on the label or permit such other. labeling as may be necessary to 
preclude any misleading or deceptive impression which might otherwise be 
created as to the actual State of distillation.
    (2) Exceptions. The State of distillation is not required to be 
shown on labels of ``blended whisky'', ``a blend of straight whiskies'', 
``spirit whisky'', ``light whisky'', or ``blended light whisky''. The 
State of distillation may be prohibited on certain labels of ``light 
whisky'' or ``blended light whisky'', in accordance with paragraph 
(c)(3) of this section.
    (3) Prohibited statement. The State of distillation may not be 
shown, except as part of the name and address required by 27 CFR 
5.36(a), on labels of ``light whisky'' or ``blended light whisky'' 
produced in a State which the appropriate TTB officer finds to be 
associated by consumers with an American type whisky.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201)

[[Page 448]]



Sec.  19.644  Net contents.

    The net contents of liquor bottles shall be shown on the label, 
unless the statement of the net contents is permanently marked on the 
side, front, or back of the bottle.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as ameded (26 U.S.C. 5201))



Sec.  19.645  Name and address of bottler.

    There shall be stated on the label of distilled spirits the phrase 
``Bottled by'', ``packed by'', or ``Filled by'' immediately followed by 
the name (or trade name) of the bottler and the place where such spirits 
are bottled. If the bottler is the actual bona fide operator of more 
than one distilled spirits plant engaged in bottling operations, there 
may, in addition, be stated immediately following the name (or trade 
name) of such bottler the addresses of such other plants. However:
    (a) Where distilled spirits are bottled by or for the distiller 
thereof, there may be stated, in lieu of the phrase ``Bottled by'', 
``Packed by'', or ``Filled by'', followed by the bottler's name (or 
trade name) and address, the phrase ``Distilled by'', followed by the 
name (or trade name) under which the particular spirits were distilled, 
or any trade name shown on the distiller's permit (covering the premises 
where the particular spirits were distilled), and the address (or 
addresses) of the distiller;
    (b) Where ``straight whiskies'' of the same type which have been 
produced in the same State by two or more different distillers are 
combined (either at time of bottling or at a warehouseman's bonded 
premises for further storage) and subsequently bottled and labeled as 
``straight whisky,'' such ``straight whisky'' shall be labeled in 
accordance with the requirements of the first paragraph of this section. 
Where such ``straight whisky'' is bottled by or for the distillers 
thereof, there may be stated on the label, in lieu of the requirements 
of the first paragraph of this section, the phrase ``distilled by,'' 
followed by the names (or trade names) of the different distillers who 
distilled a portion of the ``straight whisky,'' the addresses of the 
distilleries where the ``straight whisky'' was distilled, and the 
percentage of ``straight whisky'' distilled by each distiller (with a 
tolerance of plus or minus 2 percent). In the case where ``straight 
whisky'' is made up of a mixture of ``straight whiskies'' of the same 
type from two or more different distilleries of the same proprietor 
located within the same State, and where the ``straight whisky'' is 
bottled by or for the proprietor thereof, such ``straight whisky'' may 
be labeled, in lieu of the requirements of the first paragraph of this 
section, with the phrase ``distilled by'' followed by the name (or trade 
name) of the proprietor and the addresses of the different distilleries 
which distilled a portion of the ``straight whisky.''
    (c) Where distilled spirits are bottled by or for the proprietor of 
a distilled spirits plant, there may be stated, in lieu of the phrase 
``Bottled by'', ``Packed by'', or ``Filled by'', followed by the 
bottler's name (or trade name) and address, the phrase ``Blended by'', 
``Made by'', ``Prepared by'', ``Manufactured by'', or ``Produced by'' 
(whichever may be appropriate to the process involved), followed by the 
name (or trade name) and the address (or addresses) of the distilled 
spirits plant proprietor;
    (d) On labels of distilled spirits bottled for a retailer or other 
person who is not the actual distilled spirits plant proprietor of such 
distilled spirits, there may also be stated the name and address of such 
retailer or other person, immediately preceded by the words ``Bottled 
for'', or ``Distributed by'', or other similar statement; and
    (e) The label may state the address of the proprietor's principal 
place of business in lieu of the place where the bottling, distilling or 
processing operation occurred, if the address where the operation 
occurred is indicated by printing, coding, or other markings, on the 
label or on the bottle. The coding system employed will permit an 
appropriate TTB officer to determine where the operation stated on the 
label occurred. Prior to using a coding system, the distilled spirits 
plant proprietor shall

[[Page 449]]

send a notice explaining the coding system to the appropriate TTB 
officer .

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-259, 52 
FR 41423, Oct. 28, 1987; T.D. ATF-260, 52 FR 42101, Nov. 3, 1987]



Sec.  19.646  Age of whisky containing no neutral spirits.

    In the case of whisky containing no neutral spirits, statements of 
age and percentage shall be stated on the label as provided in 27 CFR 
part 5.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.647  Age of whisky containing neutral spirits.

    In the case of whisky containing neutral spirits, the age of the 
whisky or whiskies and the respective percentage by volume of whisky or 
whiskies and neutral spirits, shall be stated on the label as provided 
in part 5 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.648  Age of brandy.

    If brandy is aged for a period of less than two years, the age 
thereof shall be shown on the label.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.649  Presence of neutral spirits and coloring, flavoring, and blending materials.

    The presence of neutral spirits or coloring, flavoring, or blending 
materials shall be stated on labels in the manner provided in 27 CFR 
part 5.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.650  Country of origin.

    On labels of imported distilled spirits there shall be stated the 
country of origin in substantially the following form: ``Product of ----
------------,'' the blank to be filled in with the name of the country 
or origin.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



                           Subpart T_Closures

    Source: T.D. ATF-206, 50 FR 23952, June 7, 1985, unless otherwise 
noted.



Sec.  19.661  General.

    Each bottle or other container of spirits having a capacity of one 
gallon (3.785 liters) or less shall bear a closure or other device 
affixed in accordance with Sec.  19.662. The closure or other device 
shall be affixed to the container prior to withdrawal from bond or 
customs custody.

(Approved by the Office of Management and Budget under control number 
1512-0461)

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))



Sec.  19.662  Affixing closures.

    Closures or other devices on containers having a capacity of one 
gallon (3.785 liters) or less shall be securely affixed to the 
containers so as to leave a portion remaining on the container when the 
container is opened. In addition, the closures or other devices shall be 
constructed in such a manner as to require that they be broken to gain 
access to the contents of the containers.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))



Sec.  19.663  Reclosing.

    Bottles of distilled spirits filled on bonded premises may be 
reclosed under the provisions of subpart M of this part. Bottles of 
distilled spirits to which closures or other devices have been affixed 
may also be reclosed under the provisions of Sec.  19.611.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5215))



Subpart U_Return of Spirits to Bonded Premises and Voluntary Destruction

                                 Returns



Sec.  19.681  Return of taxpaid spirits to bonded premises.

    (a) General. This section and Sec.  19.682 pertain only to taxpaid 
spirits returned to bonded premises under 26 U.S.C. 5215(a). The return 
of taxpaid bottled

[[Page 450]]

spirits to bonded premises solely for relabeling or reclosing is covered 
in Sec.  19.393.
    (b) Return. Distilled spirits on which the tax has been paid or 
determined may only be returned to the bonded premises of a distilled 
spirits plant under this section for:
    (1) Destruction, in accordance with Sec.  19.691;
    (2) Denaturation, in accordance with subpart N;
    (3) Redistillation, in accordance with subpart K;
    (4) Reconditioning; or
    (5) Rebottling.
    (c) Claims. Claims for credit or refund of tax on spirits returned 
to bonded premises shall be filed as provided in, and accompanied by the 
information prescribed by, Sec.  19.42.
    (d) Applicability of 26 U.S.C. Chapter 51. All provisions of 26 
U.S.C. Chapter 51 and this part, applicable to spirits in TTB bond, 
shall be applicable to spirits when returned to bonded premises under 
this section. The provisions of this subpart do not apply to taxpaid 
bottled spirits returned to bond solely for relabeling or reclosing and 
under the provisions of subpart M of this part.

(Sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5215))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23952, June 7, 1985]



Sec.  19.682  Receipt and gauge of returned taxpaid spirits.

    (a) Dump. Unless returned in the sealed metal drums in which they 
were withdrawn, spirits returned to bonded premises shall be immediately 
dumped.
    (b) Gauge. Spirits returned under Sec.  19.681 shall be gauged upon 
receipt on bonded premises. Such gauge may be established on the basis 
of case markings and label information, as provided in Sec.  19.91.
    (c) Supporting documents. (1) Proprietors must have on file at the 
plant where spirits are returned to bond such documentation as is 
necessary to establish the amount of tax for which a claim for credit or 
refund may be allowed. Proprietors shall maintain credit memoranda or 
comparable financial records evidencing the return of each lot of 
spirits.
    (2) If the spirits contain eligible wine or eligible flavors, the 
proprietor shall also have on file a copy of the record of tax 
determination prescribed by Sec.  19.761, or other documentation which 
establishes the amount of tax for which a claim for credit or refund may 
be allowed. In lieu of establishing the actual effective tax rate of a 
product, the proprietor may claim refund or credit based on the lowest 
effective tax rate applied to the product.

(Sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5215); Sec. 807, Pub. 
L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); Sec. 201, Pub. L. 85-859, 72 
Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 96-598, 94 
Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-297, 55 
FR 18064, Apr. 30, 1990]



Sec.  19.683  Return of recovered denatured spirits and recovered articles.

    Recovered denatured spirits and recovered articles may be returned 
for restoration or redenaturation to the bonded premises of any plant 
authorized to denature spirits, in accordance with the provisions of 27 
CFR part 20. If restoration requires redistillation, the recovered 
denatured spirits or recovered articles may be returned for that purpose 
to bonded premises of a plant authorized to produce or process spirits. 
Recovered denatured spirits or recovered articles shall be gauged on 
receipt.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1363, as amended, 1372, as amended 
(26 U.S.C. 5223, 5273))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9162, Mar. 6, 1985]



Sec.  19.684  Articles and spirits residues received for redistillation.

    Articles manufactured under 27 CFR part 20, and spirits residues of 
manufacturing processes related thereto, may be received on the bonded 
premises of a distilled spirits plant authorized to produce or process 
distilled spirits, for the recovery by redistillation of the distilled 
spirits contained in

[[Page 451]]

those materials. The proprietor shall gauge the materials when received.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended (26 U.S.C. 5223))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9162, Mar. 6, 1985]



Sec.  19.685  Return of recovered tax-free spirits, and spirits and denatured spirits withdrawn free of tax.

    (a) General. Specially denatured spirits withdrawn free of tax under 
the applicable provisions of 27 CFR part 28 for exportation or for 
deposit in a foreign-trade zone, and spirits or denatured spirits 
withdrawn free of tax under the applicable provisions of 27 CFR part 20 
or 22, may be returned: (1) To bonded premises of any distilled spirits 
plant authorized to produce or process distilled spirits, for 
redistillation; or (2) To any bonded premises of a distilled spirits 
plant pending subsequent lawful withdrawal free of tax. Recovered tax-
free spirits may, as provided in 27 CFR part 22, be returned for 
redistillation to bonded premises of any distilled spirits plant 
authorized to produce or process distilled spirits or to any bonded 
premises of a distilled spirits plant for restoration (not including 
redistillation). The return shall be made under the applicable 
provisions of this part and 27 CFR part 20, 22, or 28, as appropriate.
    (b) Bonding requirements. Before spirits or denatured spirits are 
returned to bonded premises, except spirits or denatured spirits 
returned for redistillation, the proprietor shall file a consent of 
surety on Form 1533 to extend the terms of the operations or unit bond 
to cover the return of the spirits. The proprietor may file one consent 
of surety on the bond to extend the terms thereof to cover all spirits 
which may be returned.
    (c) Procedure. When recovered tax-free spirits, spirits, or 
denatured spirits are received, they shall be gauged. When containers of 
spirits removed for export are returned to bond, pending subsequent 
removal for a purpose other than export, the export marks shall be 
obliterated.

(Sec. 3, Act of June 13, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); 
sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1365, as amended 
(26 U.S.C. 5001, 5223))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-199, 50 
FR 9162, Mar. 6, 1985; T.D. TTB-8, 69 FR 3829, Jan. 27, 2004]



Sec.  19.686  Return of spirits withdrawn without payment of tax.

    (a) Spirits withdrawn for export. Spirits lawfully withdrawn without 
payment of tax under the provisions of 27 CFR part 28 for exportation, 
or for transfer to a customs bonded warehouse or a customs manufacturing 
bonded warehouse, or for deposit in a foreign-trade zone, or for use on 
vessels and aircraft, and not so exported, transferred, deposited, or 
used (or laden for use) on a vessel or aircraft, may be returned, under 
the applicable provisions of this part and 27 CFR part 28: (1) To the 
bonded premises of any plant authorized to produce or process distilled 
spirits, for redistillation; or (2) To the bonded premises from which 
withdrawn pending subsequent removal for a lawful purpose.
    (b) Spirits withdrawn for use in wine production. Wine spirits 
withdrawn under Sec.  19.532 for use in wine production, and not so 
used, may be returned to the bonded premises of a distilled spirits 
plant. The consignee proprietor shall obtain approval, as provided in 
Sec.  19.506. The wine spirits shall be removed from the winery in 
accordance with the provisions of 27 CFR part 240.
    (c) Spirits withdrawn for research, development, or testing. Spirits 
withdrawn without payment of tax, under the provisions of subpart V of 
this part, for research, development, or testing may be returned to the 
bonded premises of the distilled spirits plant from which withdrawn. 
After returning these spirits to bonded premises, they shall be 
destroyed, returned to containers, or returned to vessels in the 
distilling system containing similar spirits.
    (d) Procedure. When spirits are received, they shall be gauged by 
the proprietor. When spirits which were removed for exportation are 
returned to bonded premises pending subsequent

[[Page 452]]

removal for a purpose other than exportation, all export marks on the 
containers in which the spirits are returned shall be obliterated.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended, 
1382, as amended (26 U.S.C. 5214, 5223, 5373); sec. 3, Pub. L. 91-659, 
84 Stat. 1965, as amended (26 U.S.C. 5066))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23952, June 7, 1985; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]



Sec.  19.687  Return of spirits withdrawn for export with benefit of drawback.

    Subject to the provisions of 27 CFR 28.197 through 28.199, whole or 
partial shipments of spirits withdrawn for export with benefit of 
drawback may be returned to: (a) The bonded premises of the distilled 
spirits plant, pursuant to Sec.  19.681, or (b) to a wholesale liquor 
dealer or taxpaid storeroom. Claims filed by proprietors on TTB Form 
5110.30 which include the returned spirits shall be reduced by the 
amount of tax paid or determined on the returned spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062); 
sec. 807, Pub. L. 96-39, 93 Stat. 285 (26 U.S.C. 5215))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3830, Jan. 27, 2004]



Sec.  19.688  Abandoned spirits.

    Spirits abandoned to the United States may be sold, without payment 
of the tax, to a proprietor of a plant for denaturation or for 
redistillation and denaturation, if the plant is authorized to denature 
or redistill and denature spirits. These spirits shall be kept apart 
from all other spirits or denatured spirits until denatured. The receipt 
and gauging provisions of Sec.  19.683 are applicable to these spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5243))

                          Voluntary Destruction



Sec.  19.691  Voluntary destruction.

    (a) General. Spirits, denatured spirits, articles, or wines in bond 
may be voluntarily destroyed as provided in this section. The tax 
liability on spirits, denatured spirits, articles, or wines so destroyed 
is extinguished.
    (b) Wine notice. Wine may be destroyed in bond only after the 
proprietor has filed notice with the appropriate TTB officer stating the 
kind and quantity of wine to be destroyed and the date and manner in 
which the wine is to be destroyed. The wine may be destroyed after such 
notice has been filed.
    (c) Gauging. A proprietor shall gauge spirits, denatured spirits, 
articles, or wines to be destroyed. Gauges of spirits in bottles may be 
established on the basis of legible case markings and label information 
when:
    (1) The bottles are full;
    (2) There is no evidence that the bottles have been tampered with.
    (d) Off bonded premises. Spirits, denatured spirits, articles or 
wines may be removed and destroyed at a location off bonded premises if 
the proprietor has filed a consent of surety to cover such removal. If 
the destruction is accomplished off plant premises, the proprietor shall 
ensure compliance with applicable Federal, State, and local 
environmental laws and regulations.
    (e) Record of destruction. The proprietor shall record the 
destruction of spirits, denatured spirits, articles, or wines as 
provided in Sec.  19.767.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended 
(26 U.S.C. 5008, 5370))



                      Subpart V_Samples of Spirits



Sec.  19.701  Spirits withdrawn from bonded premises.

    (a) Samples withdrawn from bonded premises. The proprietor may 
withdraw spirits without payment of tax, or wine spirits or brandy free 
of tax, to the proprietor's laboratory, the laboratory of an affiliated 
or subsidiary corporation, or, if approved by the appropriate TTB 
officer, to a recognized commercial laboratory for testing or analysis 
(other than consumer testing or other market analysis) to determine the 
quality or character of the finished product. The quantity of spirits so 
withdrawn shall not exceed the amount necessary for conduct of the 
proprietor's operations.

[[Page 453]]

    (b) Customer samples. A quantity of spirits not exceeding 1 liter 
may be furnished to a prospective purchaser for quality testing (other 
than consumer testing or other market analysis) only if a bona fide 
written or oral purchase agreement exists which is contingent upon 
quality approval by the prospective purchaser; except that a sample not 
to exceed 1 liter may be furnished to a prospective customer for quality 
testing in anticipation of a purchase agreement if the customer is 
authorized to receive bulk spirits for industrial use.
    (c) Research or development. Spirits may be withdrawn without 
payment of tax for research, development, or testing (other than 
consumer testing or other market analysis) of processes, systems, 
materials or equipment relating to distilled spirits or distilled 
spirits plant operations. The amount withdrawn shall be limited to an 
amount necessary for conduct of the testing, research or development. If 
the testing, research or development is to be conducted by other than 
the proprietor, the proprietor shall secure a written statement, 
executed by the consignee, agreeing that he will maintain records of the 
receipt, use, and disposition of all spirits received by him and that 
those records and operations will be available during regular business 
hours for inspection by appropriate TTB officers.
    (d) Conditions. (1) Records will be maintained in accordance with 
Sec.  19.766 of all spirits taken or withdrawn under the provisions of 
this section.
    (2) Remnants or residues of spirits withdrawn but not used during 
testing, research or development shall be destroyed or returned to the 
bonded premises for storage with similar products or entry in the 
continuous distilling system.
    (e) Limitation. The appropriate TTB officer shall proceed to collect 
the tax on any spirits withdrawn under this section which are found to 
have been withdrawn, used or disposed of in a manner not authorized by 
this section.
    (f) Losses. When spirits are lost prior to being used for the 
authorized purpose, the proprietor shall either pay the tax or file a 
claim for remission of tax as prescribed by Sec.  19.41.

(Sec. 201, Pub. L. 86-859, 72 Stat. 1362, as amended, 1382, as amended 
(26 U.S.C. 5214, 5173))



Sec.  19.702  Samples used on bonded premises.

    The proprietor may take samples of spirits for research, 
development, testing, or laboratory analysis conducted in a laboratory 
located on the bonded premises of the distilled spirits plant. The 
applicable purposes, conditions and limitations for samples taken 
pursuant to Sec.  19.701 shall also apply to samples taken as authorized 
by this section.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1382, as amended 
(26 U.S.C. 5008))



Sec.  19.703  Taxpayment of samples.

    When tax is required to be paid on samples:
    (a) If the proprietor is qualified to defer payment of tax, the tax 
shall be included in the proprietor's next deferred payment of tax on 
Form 5000.24.
    (b) If the proprietor is not qualified to defer the payment of tax, 
the tax shall be paid on a prepayment tax return on Form 5000.24.

[T.D. ATF-219, 50 FR 51388, Dec. 17, 1985, as amended by T.D. TTB-41, 71 
FR 5602, Feb. 2, 2006]



Sec.  19.704  Labels.

    (a) On each container of spirits to be withdrawn under the 
provisions of Sec.  19.701, the proprietor shall affix a label showing 
the following information:
    (1) Purpose for which withdrawn;
    (2) Kind of spirits;
    (3) Size and the proof of the sample, if known;
    (4) If the spirits are removed to other then adjacent or contiguous 
premises of the proprietor, the name and address of the consignee;
    (5) The proprietor's name, and plant number; and
    (6) The date taken.
    (b) The labeling required by paragraph (a) of this section is not 
necessary when sample containers bear an approved label pursuant to 27 
CFR Part 5 and subpart S of this part and the

[[Page 454]]

sample is removed from bonded premises to the general premises of the 
same distilled spirits plant.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended, 
1382, as amended (26 U.S.C. 5206, 5214, 5373))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23952, June 7, 1985]



                      Subpart W_Records and Reports

                                 General



Sec.  19.721  Records.

    (a) In General. (1) The records to be maintained by proprietors 
shall include:
    (i) All individual transaction forms, records, and summaries 
specifically required by this part;
    (ii) All supplemental, auxiliary, and source data utilized in the 
compilation of required forms, records, and summaries, and for 
preparation of reports, returns, and claims; and
    (iii) Copies of notices, reports, returns, and approved applications 
and other documents relating to operations and transactions.
    (2) The records required by this part may consist of the 
proprietor's commercial documents, rather than records prepared 
expressly to meet the requirements of this part, if such documents 
contain all the details required by this part to be recorded, are 
consistent with the general requirements of clarity and accuracy, and do 
not result in difficulty in their examination.
    (b) Accounts. The records required by this part to be maintained by 
proprietors shall be arranged into three primary operational accounts:
    (1) Production,
    (2) Storage, and
    (3) Processing.

Records shall indicate receipts, movements between accounts, transfers 
in bond, or withdrawals of spirits, denatured spirits, articles, or 
wines.
    (c) Exceptions. The term ``records'' as used in this subpart does 
not include copies of qualifying documents required under subpart G, or 
of bonds required under Subpart H of this part.
    (d) Special provisions. See 27 CFR 70.22 for information with 
respect to TTB examination of financial records and books of account.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.722  Conversion between metric and U.S. units.

    When liters are converted to wine gallons, the quantity in liters 
shall be multiplied by 0.264172 to determine the equivalent quantity in 
wine gallons. Cases containing the same quantity of spirits of the same 
proof in metric bottles may be converted to U.S. units by multiplying 
the liters in one case by the number of cases to be converted, as 
follows: (a) If the conversion from liters to U.S. units is made before 
multiplying by the number of cases, the quantity in U.S. units shall be 
rounded to the sixth decimal; or (b) If the conversion is made after 
multiplying by the number of cases, the quantity in U.S. units shall be 
rounded to the nearest hundredth. Once converted to wine gallons, the 
proof gallons of spirits in cases shall be determined as provided in 27 
CFR 30.52.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.723  Maintenance and preservation of records.

    (a) Place of maintenance. Records required by this part shall be 
prepared and kept by the proprietor at the plant where the operation or 
transaction occurs and shall be available for inspection by any 
appropriate TTB officer during business hours.
    (b) Reproduction of original records. (1) Whenever any record, 
because of its condition, becomes unsuitable for its intended or 
continued use, the proprietor shall reproduce such record, by a process 
approved by the appropriate TTB officer under Sec.  19.725 for 
reproducing records, and such reproduction shall be treated and 
considered for all purposes as though it were the original record.
    (2) All provisions of law applicable to the original record shall be 
applicable to such reproductions.
    (c) Retention of records. (1) Records required by this part shall be 
preserved for a period of not less than three years from the date 
thereof or the date of the last entry required to be made thereon,

[[Page 455]]

whichever is later. However, the appropriate TTB officer may require 
records to be kept for an additional period not exceeding three years in 
any case where such retention is deemed necessary or advisable for the 
protection of the revenue.
    (2) The period for retention of records prescribed in paragraph 
(c)(1) of this section shall not apply to copies of outstanding approved 
formulas or to copies of formulas which form the basis for claims for 
credit or refund of taxes on spirits returned to bonded premises. A copy 
of any such formula shall be kept by the proprietor at the plant where 
spirits are processed subject to the formula or at the plant where such 
spirits are received.
    (d) Data processing. (1) Notwithstanding any other provision of this 
section, record data maintained on data processing equipment may be kept 
at a location other than the plant premises if the original transaction 
(source) records required by Sec. Sec.  19.736-19.779 are kept available 
for inspection at the plant premises.
    (2) Data which has been accumulated on cards, tapes, discs, or other 
accepted record media must be retrievable within five business days.
    (3) The applicable data processing program shall be made available 
for examination if requested by an appropriate TTB officer.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.724  Modified forms.

    (a) Application. Proprietors desiring to modify prescribed forms 
shall submit an application to the appropriate TTB officer. The 
application shall be accompanied by:
    (1) A copy of each proposed form with typical entries; and
    (2) A statement showing the need for use of the modified forms. 
Modified forms shall not be used until approved by the appropriate TTB 
officer.
    (b) Restrictions. The use of modified forms shall not relieve a 
proprietor from any requirement of this part. The appropriate TTB 
officer may require a proprietor to immediately discontinue the use of 
any modified form when such use is found to pose administrative 
problems.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.725  Photographic copies of records.

    (a) Application. Proprietors who desire to record, copy or reproduce 
records, required by this part, by any process which accurately 
reproduces or forms a durable medium for so reproducing the original of 
such records, shall apply to the appropriate TTB officer for permission 
to do so, describing:
    (1) The records to be reproduced,
    (2) The reproduction process to be employed,
    (3) The manner in which the reproductions are to be preserved, and
    (4) The provisions to be made for examining, viewing, and using such 
reproductions.
    (b) Approval. The appropriate TTB officer shall not approve any 
application unless the manner of preservation of the reproductions and 
the provisions for examining, viewing, and using such reproductions are 
satisfactory.
    (c) Conditions. Whenever records are reproduced under this section, 
the reproduced records shall be preserved in conveniently accessible 
files, and provisions shall be made for examining, viewing, and using 
the reproduced record the same as if it were the original record, and it 
shall be treated and considered for all purposes as though it were the 
original record. All provisions of law and regulations applicable to the 
original shall be applicable to the reproduced record. As used in this 
section, ``original record'' shall mean the record required by this part 
to be maintained or preserved by the proprietor, even though it may be 
an executed duplicate or other copy of the document.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended, (26 U.S.C 5555))



Sec.  19.726  Authorized abbreviations to identify spirits.

    The following abbreviation may be used, either alone or in 
conjunction with descriptive words, to identify the kind of spirits on 
forms or records:

[[Page 456]]



------------------------------------------------------------------------
              Kinds of spirits                      Abbreviations
------------------------------------------------------------------------
Alcohol....................................  A
Brandy.....................................  BR
Bourbon Whisky.............................  BW
Canadian Whisky............................  CNW
Completely Denatured Alcohol...............  CDA
Corn Whisky................................  CW
Grain Spirits..............................  GS
Irish Whisky...............................  IW
Light Whisky...............................  LW
Malt Whisky................................  MW
Neutral Spirits............................  NS
Neutral Spirits Grain......................  NSG
Rye Whisky.................................  RW
Scotch Whisky..............................  SW
Specially Denatured Alcohol................  SDA
Special Denatured Rum......................  SDR
Tequila....................................  TEQ
Vodka......................................  V
Whisky.....................................  W
------------------------------------------------------------------------


(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

                                 Records



Sec.  19.731  General.

    (a) Entries. (1) Each entry required by this part to be made in 
daily records shall be made on the day on which the operation or 
transaction occurs.
    (2) When the proprietor prepares supplemental or auxiliary records 
concurrent with the individual operation or transaction, and these 
records contain all the required information with respect to the 
operation or transaction, entries in daily records may be deferred not 
later than the close of business the third business day succeeding the 
day on which the operation or transaction occurs.
    (b) Content. (1) All entries in the daily records required by this 
subpart shall show the date of the operation or transaction.
    (2) Daily records shall accurately and clearly reflect the details 
of each operation or transaction and, as applicable, contain all data 
necessary to enable:
    (i) Identification and proper marking and labeling of spirits, 
denatured spirits, or wines;
    (ii) Proprietors to prepare summaries, reports, and returns required 
by this part; and
    (iii) appropriate TTB officers to:
    (A) Verify and trace the quantity and movement of materials, 
spirits, denatured spirits, wines, or alcoholic flavoring materials 
involved in each transaction or operation;
    (B) Verify tax determinations and claims; and
    (C) Ascertain whether there has been compliance with law and 
regulations.
    (c) Format. (1) Proprietor's copies of prescribed forms which bear 
all required details shall be utilized as daily records.
    (2) In instances when a form is not prescribed, the records required 
by this subpart shall be those commercial records used by the proprietor 
in his accounting system and shall bear all required details.
    (3) Daily records required by this part shall be so maintained that 
they clearly and accurately reflect all mandatory information. Where the 
format or arrangement of the daily records is such that the information 
is not clearly or accurately reflected, the appropriate TTB officer may 
require a format or arrangement which will clearly and accurately 
reflect the information.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.732  Details of daily records.

    The daily records required by this part shall conform to the 
following requirements:
    (a) Spirits shall be recorded by kind and by quantity in proof 
gallons, except as provided in Sec.  19.751.
    (b) Denatured spirits shall be recorded by formula number and by 
quantity in wine gallons.
    (c) Distilling materials produced on the premises shall be recorded 
by kind and by quantity in wine gallons. Chemical byproducts containing 
spirits, articles, spirits residues, and distilling materials received 
on the premises shall be recorded by kind, by percent of alcohol by 
volume, and by quantity in wine gallons. However, when nonliquid 
distilling materials which are not susceptible to such quantitative 
determination are received, the quantity of such materials may be 
determined by weight and shall be so recorded, and the alcohol content 
need not be recorded. When it can be shown that it is impractical to 
weigh or otherwise determine the exact quantity of such nonliquid 
materials, the proprietor may estimate the weight or volume of the 
material.

[[Page 457]]

    (d) Wines shall be recorded by kind, by quantity in wine gallons, 
and by percent of alcohol by volume.
    (e) Alcoholic flavoring materials shall be recorded by kind, formula 
number (if any) and by quantity in proof gallons.
    (f) Containers (other than those bearing lot identification numbers) 
or cases involved in each operation or transaction shall be recorded by 
type, serial number, and the number of containers (including identifying 
marks on bulk conveyances), or cases. However, spirits withdrawn in 
cases may be recorded without the serial numbers of the cases, unless 
the appropriate TTB officer requires such recording. Package 
identification numbers, number of packages, and proof gallons per 
package shall be recorded on deposit record in the storage account 
reflecting production gauges or filling of packages from tanks, however, 
only the lot identification, number of packages, and proof gallons per 
package need be shown for transactions in packages of spirits unless 
package identification numbers are specifically required by this part.
    (g) Materials intended for use in the production of spirits shall be 
recorded by kind and by quantity, recording liquids in gallons and other 
materials in pounds, and giving the sugar content for molasses.
    (h) The name and address of the consignee or consignor, and if any, 
the plant number or industrial use permit number of such person, shall 
be recorded for each receipt or removal of materials, spirits, denatured 
spirits, articles, spirits residues, and wine.
    (i) The serial number of the tank used shall be recorded for each 
operation or transaction.
    (j) The rate of duty paid on imported spirits shall be shown on the 
transaction forms or records.
    (k) Records shall identify imported spirits, spirits from Puerto 
Rico, and spirits from the Virgin Islands, or the records shall show 
that a distilled spirits product contains such spirits.
    (l) Records shall identify spirits that are to be used exclusively 
for fuel use.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

                           Production Account



Sec.  19.736  Daily production records.

    (a) Spirits production. Each proprietor shall maintain daily 
production account records of production operations showing:
    (1) The receipt of fermenting material or other nonalcoholic 
material intended for use in the production of spirits.
    (2) The receipt and use of spirits, denatured spirits, articles, and 
spirits residues received for redistillation.
    (3) The fermenting material set in each fermenter or other material 
used in the production of spirits.
    (4) The distilling material produced, received for production, and 
used in production of spirits, or destroyed or removed from the premises 
before being distilled (including the residue of beer returned to the 
producing brewery).
    (5) The gauge of spirits in each receiving tank, the production 
gauge (in proof gallons) of spirits removed from each tank, and the 
transaction form or record and its serial number covering each removal. 
The details of individual packages filled pursuant to production gauge 
for immediate withdrawal from bonded premises shall also be recorded.
    (6) The fermenting materials or other nonalcoholic materials used or 
removed from the premises.
    (7) The quantity and testing for alcoholic content of fusel oil or 
other chemicals removed from the production system and the disposition 
thereof with the name of the consignee, if any.
    (8) The kind and quantity of distillates removed from the production 
system pursuant to Sec.  19.322.
    (9) The kind and quantity of spirits, lost or destroyed prior to 
production gauge. Records pertaining to the production account shall be 
maintained in such a manner that the spirits produced may be traced 
through the distilling system to the mash or other material from which 
produced, and the identity of the spirits thus traced may be clearly 
established.
    (b) Byproduct spirit production. Each proprietor who manufactures 
substances other than spirits, in a process which produces spirits as a 
byproduct, shall maintain daily production

[[Page 458]]

records as to each such process showing:
    (1) The kind and quantity of materials received, unless included in 
records maintained under paragraph (a) of this section.
    (2) The spirits produced and disposed of.
    (3) The kind and quantity of other substances produced.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985; 50 FR 23410, June 4, 1985]

                             Storage Account



Sec.  19.740  Daily storage records.

    (a) General. Proprietors shall maintain daily records in the storage 
account which shall show for each kind of spirits or wine, as 
applicable:
    (1) Spirits or wines received for deposit in storage;
    (2) Spirits mingled;
    (3) Spirits in tanks;
    (4) Spirits or wines filled into packages from tanks and retained 
for storage;
    (5) Spirits of less than 190 degrees of proof or wines transferred 
from one tank to another;
    (6) Spirits returned to bond;
    (7) Spirits or wines voluntarily destroyed;
    (8) Spirits or wines lost during storage;
    (9) The transfer of spirits or wine from one package to another;
    (10) The addition of oak chips to spirits and the addition of 
caramel to brandy or rum; and
    (11) The disposition of spirits or wines.
    (b) Records covering deposits. The proprietor's copies of gauge 
records, transfer records, or tank records of wines or spirits of less 
than 190 degrees of proof covering: deposit in the storage account of 
spirits received from the production account, from customs custody, or 
by return to bond under subpart U of this part, or of wines or spirits 
from other bonded premises; packages of spirits or wines filled from 
tanks and retained in the storage account after mingling; and wines or 
spirits of less than 190 degrees of proof transferred from one tank to 
another, shall be utilized by the proprietor to record wines or spirits 
deposited in the storage account. The proprietor shall enter the date of 
deposit of the spirits in storage on the record. Files of deposit 
records shall be maintained for spirits in packages and such files shall 
be arranged by producers (by warehouseman in the case of blended rums or 
brandies and for spirits of 190 degrees or more of proof, by the 
warehouseman who received the spirits from customs custody in the case 
of imported spirits, and by producer in the Virgin Islands or Puerto 
Rico in the case of Virgin Islands or Puerto Rican spirits), in 
chronological order according to the date of deposit in the storage 
account, and, when possible, in sequence by lot identification for 
packages. (For the purpose of records under this section spirits 
produced under trade names shall be treated as being produced under the 
real name of the proprietor [producer].) Also, files of deposit records 
shall be maintained, in the manner prescribed by 19.742, for wines and 
for spirits of less than 190 degress of proof in tanks in the storage 
account with a separate file for each tank of wines or spirits. In the 
case of spirits of 190 degrees or more of proof deposited in tanks in 
the storage account, the proprietor shall maintain a separate 
consolidated file of deposit records for all tanks, separately as to 
gin, vodka, and other spirits as applicable, of all such domestic 
spirits; all such imported spirits duty paid at the beverage rate; all 
such imported spirits duty paid at the nonbeverage rate; all such Virgin 
Islands spirits; and all such Puerto Rican spirits. Such files shall be 
arranged chronologically by date of deposit in the warehouse.
    (c) Records covering withdrawals. When wines or spirits other than 
spirits of 190 degrees or more of proof in tanks in the storage account, 
are withdrawn from the storage account the proprietor shall note on the 
record of deposit, the date and disposition of the spirits so that the 
files shall currently reflect the spirits remaining in the storage 
account. When spirits of 190 degrees or more of proof are withdrawn from 
tanks in the storage account the record of deposit need not be noted, 
but

[[Page 459]]

semi-annually (as of June 30 and December 31) the proprietor shall 
remove from his consolidated files of active deposit records all such 
records in excess of those required to cover the quantity of spirits 
shown as remaining in tanks. The deposit records so removed shall be 
those covering spirits first deposited in the storage account.

(Sec. 807, Pub. L. 96-39 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.741  Package summary records.

    (a) General. Each warehouseman shall keep current summary records 
for each kind of spirits or wines in packages, to show the spirits or 
wines deposited in, withdrawn from, and remaining in the storage 
account. Separate accounting records shall be kept for domestic spirits, 
imported spirits, Virgin Islands spirits, Puerto Rican spirits, and 
wine. Package accounts for spirits may be kept by either the season or 
the year the packages were filled with spirits.
    (b) Arrangement. Package summary records shall be prepared and 
arranged separately:
    (1) For domestic spirits of less than 190 degrees of proof, 
alphabetically by State and numerically by the plant number and name of 
the producer or warehouseman.
    (2) For domestic spirits of 190 degrees or more of proof, 
alphabetically by State, and numerically by the plant number and name of 
the warehouseman.
    (3) For imported spirits, alphabetically by State and numerically by 
the plant number and name of the warehouseman who received the spirits 
from customs custody.
    (4) For Puerto Rican or Virgin Islands spirits, alphabetically by 
the name of the producer in Puerto Rico or the Virgin Islands.
    (5) For wine, by kind and tax rate imposed by 26 U.S.C. 5041.
    (c) Details. Package summary records shall show the following 
details:
    (1) The date the summarized transactions occurred;
    (2) For spirits, the number of packages and the proof gallons 
contained therein;
    (3) For wine, the number of packages and the wine gallons contained 
therein;
    (4) Gains or shortages disclosed by inventory or when an account is 
closed; and
    (5) Gallon balances on summary records for spirits and wines 
remaining in the account at the end of each month.
    (d) Summarization. Package summary records shall be consolidated at 
the end of each month, or for lesser periods when required by the 
appropriate TTB officer, to show for all types of containers and kinds 
of spirits, the total proof gallons received in, withdrawn from, and 
remaining in the storage account.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.742  Tank record of wine or spirits of less than 190 degrees of proof.

    (a) General. Proprietors shall keep a record for each tank 
(including bulk conveyance) containing wine or spirits of less than 190 
degrees of proof to show deposits into, withdrawals from, and the 
balance remaining in each tank in the storage account. A new record 
shall be prepared each time wine or spirits are deposited in an empty 
tank. Except as otherwise provided in this section, each transaction 
shall be recorded on the day the transaction occurs.
    (b) Arrangement. Tank records shall be prepared and arranged:
    (1) For domestic spirits, alphabetically by State, and numerically 
by (i) the plant number and name of the producer, or, (ii) for blended 
rums or brandies, the plant number and name of the warehouseman;
    (2) For imported spirits, alphabetically by State, and numerically 
by the plant number and name of the warehouseman;
    (3) For Puerto Rican or Virgin Islands spirits, alphabetically by 
the name of the producer in Puerto Rico or the Virgin Islands; and
    (4) For wine, by kind and tax rate imposed by 26 U.S.C. 5041.
    (c) Details. Tank records shall show the following details:
    (1) Tank record serial number, beginning with ``1'' for each record 
initiated on or after January 1;
    (2) Date of each transaction;
    (3) Identification of the tank;
    (4) Kind of wine or spirits;

[[Page 460]]

    (5) Number and average proof gallon content of packages of spirits 
dumped in the tank, or a notation indicating the deposit in the tank of 
spirits by pipeline;
    (6) Wine gallons of wine, or proof gallons of spirits deposited;
    (7) If subject to age, the age of the youngest spirits in years, 
months and days, each time spirits are deposited;
    (8) Wine gallons of wine, or proof gallons of spirits withdrawn;
    (9) Related transaction form or record and its serial number for 
deposits or withdrawals;
    (10) Wine gallons of wine, or proof gallons of spirits remaining in 
the tank, recorded at the end of each calendar month; and
    (11) Gain or loss disclosed by inventory or on emptying of the tank.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.743  Tank summary record for spirits of 190 degrees or more of proof.

    (a) General. Proprietors shall keep a tank summary record for 
spirits of 190 degrees or more of proof held in tanks to show the proof 
gallons deposited into, withdrawn from, and remaining in tanks in the 
storage account. A separate tank summary record shall be prepared for 
each kind of spirits of 190 degrees or more of proof. Entries shall be 
made for each day in which a transaction occurs, and shall be recorded 
as a summary of the individual transactions shown on the deposit 
records.
    (b) Arrangement. Tank summary records shall be prepared and 
arranged:
    (1) For domestic spirits, alphabetically by State, and numerically 
by the plant number and name of the warehouseman;
    (2) For imported spirits, alphabetically by State, and numerically 
by the plant number of the warehouseman who received the spirits from 
customs custody; and
    (3) For spirits from Puerto Rico or the Virgin Islands, 
alphabetically by the name of the producer in Puerto Rico or the Virgin 
Islands.
    (c) Details. Tank summary records shall show the following details:
    (1) Kind of spirits;
    (2) Date of transactions summarized;
    (3) Proof gallons deposited;
    (4) Proof gallons withdrawn;
    (5) Proof gallons remaining in tanks; and
    (6) Gain or loss disclosed by inventory or on emptying of the tanks 
summarized on the record.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

                           Processing Account



Sec.  19.746  Processing.

    Each processor shall maintain daily records of transactions and 
operations with respect to:
    (a) Manufacture of distilled spirits products;
    (b) Finished products;
    (c) Denaturation of spirits; and
    (d) Manufacture of articles.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.747  Records of manufacturing.

    Each processor shall maintain daily records of the details of 
manufacturing operations, showing:
    (a) The spirits, wines, and alcoholic flavoring materials received. 
The total receipts shall be summarized showing (1) the spirits received 
from storage or production at the same plant, (2) the spirits received 
from other plants by transfer in bond, (3) spirits received from customs 
custody, (4) wines received from the storage account at the same plant, 
(5) wines received by transfer in bond, and (6) alcoholic flavoring 
materials received.
    (b) The spirits, wines, alcoholic flavoring materials, and other 
ingredients used in the manufacture of a distilled spirits products 
showing the serial number of the dump/batch record covering such dump.
    (c) Bottling or packaging of each batch of spirits, showing the 
serial numbers of the bottling and packaging records covering such 
bottling or packaging.
    (d) The results of bottling proof and fill tests as required by 
Sec.  19.386.
    (e) Receipt, use and disposition of liquor bottles.
    (f) The rebottling, relabeling, and reclosing of bottled products as 
required by Sec. Sec.  19.392 and 19.393.

[[Page 461]]

    (g) The spirits, wines, and alcoholic flavoring materials removed 
from the premises.
    (h) The spirits moved to the production account for redistillation.
    (i) Redistillation of spirits, including the production of gin and 
vodka by means other than original and continuous distillation.
    (j) Record of alcoholic flavoring materials deposited into tanks 
prior to dumping showing the consignor, the date and quantity received, 
the name of the product, the date and quantity of each removal from the 
tank and losses.
    (k) Spirits returned to bond.
    (l) The voluntary destruction of spirits and wines.
    (m) The losses as provided in subpart Q of this part.

The records required by paragraph (a) of this section shall also show 
the name and plant number of the producer or processor (warehouseman in 
the case of blended beverage rums or brandies or spirits of 190 degrees 
of more of proof received from storage) for domestic spirits, the name 
of the importer and the country of origin for imported spirits, and the 
name and address of the producer of wines and alcoholic flavoring 
materials.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23953, June 7, 1985]



Sec.  19.748  Dump/batch records.

    (a) Format of dump/batch records. Proprietor's dump/batch records 
shall contain, as applicable, the following:
    (1) Serial number;
    (2) Name and distilled spirits plant number of the producer;
    (3) Kind and age of spirits used with a notation to indicate 
treatment with oak chips, addition of caramel, imported spirits, and 
spirits from Puerto Rico and the Virgin Islands;
    (4) Serial number of tank or container to which ingredients are 
added for use;
    (5) Serial or identification number of tank or container from which 
spirits are removed;
    (6) Quantity by ingredient of other alcoholic ingredients used, 
showing wine in wine gallons, percentage of alcohol by volume and proof, 
and alcoholic flavoring materials in proof gallons;
    (7) Serial number of source transaction record (e.g., record 
covering spirits previously dumped);
    (8) Date of each transaction;
    (9) Quantity, by ingredient (other than water), of nonalcoholic 
ingredients used;
    (10) Formula number;
    (11) Quantity of ingredients used in the batch that have been 
previously dumped, reported on dump records, and held in tanks or 
containers;
    (12) Total quantity in proof gallons of all alcoholic ingredients 
used;
    (13) Identification of each record to which spirits are transferred;
    (14) Quantity in each lot transferred;
    (15) Date of each transfer;
    (16) Total quantity in proof gallons of product transferred;
    (17) Gain or loss; and
    (18) For each batch to be tax determined in accordance with Sec.  
19.35, the effective tax rate.
    (b) Redistillation. (1) Dump/batch records shall be prepared to show 
spirits to be redistilled in the processing account, including the 
production of gin or vodka by redistillation. A dump record shall also 
be prepared to record the finished distillate.
    (2) When redistillation requires the use of more than one tank or 
other vessel in a continuous distilling system, the system may be shown 
on the record in lieu of preparing a separate record to show each 
movement of spirits between tanks or vessels.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-297, 55 
FR 18064, Apr. 30, 1990]



Sec.  19.749  Bottling and packaging record.

    The bottling and packaging record shall be prepared and contain the 
following information:
    (a) Tank number(s);
    (b) Serial number (beginning with ``1'' at the start of each 
calendar or fiscal year);
    (c) Formula number (if any) under which the batch was produced;

[[Page 462]]

    (d) Serial number of the dump/batch record from which received;
    (e) Kind of product (including age, if claimed);
    (f) Details of the tank gauge (including proof, wine gallons, proof 
gallons, and, if applicable, obscuration);
    (g) The date the bottles or packages were filled;
    (h) Size of the bottles or packages filled, number of bottles per 
case, and number of cases or packages filled;
    (i) Serial numbers by brand name of cases or other containers 
filled;
    (j) Proof of the spirits bottled or packaged (if different from 
subsection (f));
    (k) Total quantity bottled, packaged or otherwise disposed of in 
bulk;
    (l) Losses or gains; and
    (m) Whether the spirits were labeled as bottled in bond.

(Sec. 807(a), Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.750  Records of alcohol content and fill tests.

    (a) Proprietors shall record the results of all tests of alcohol 
content and quantity (fill) conducted.
    (b) The record shall be maintained in a manner and provide 
information that will enable appropriate TTB officers to determine 
whether the proprietor has complied with the provisions of Sec.  19.386 
by:
    (1) Monitoring operations by conducting alcohol content and fill 
tests; and
    (2) Employing procedures to correct variations in alcohol content 
and fill.
    (c) Alcohol content and fill test records shall contain, at a 
minimum, the following information:
    (1) Date and time of test;
    (2) Bottling tank number;
    (3) Serial number of bottling record;
    (4) Bottling line designation;
    (5) Size of bottle;
    (6) Number of bottles tested;
    (7) Labeled alcohol content;
    (8) Alcohol content found by the test;
    (9) Percentage of variation from 100 percent fill; and
    (10) Corrective action taken, if any.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555); 
Sec. 807(a), Pub. L. 96-39 (26 U.S.C. 5207)

[T.D. ATF-237, 51 FR 36395, Oct. 10, 1986; 51 FR 37271, Oct. 21, 1986]



Sec.  19.751  Records of finished products.

    Each processor shall maintain by proof gallons daily transaction 
records and a daily summary record of spirits bottled or packaged as 
follows:
    (a) Beginning and ending quantity of bottled or packaged spirits on 
hand;
    (b) Spirits bottled or packaged;
    (c) Bottled or packaged spirits disposed of by:
    (1) Withdrawal on tax determination;
    (2) Transfer in bond;
    (3) Withdrawal free of tax or without payment of tax;
    (4) Dumping for further processing;
    (5) Transfer to the production account for redistillation;
    (6) Voluntary destruction;
    (7) Accountable losses;
    (8) Samples;
    (9) Inventory shortages and overages; and
    (10) Other dispositions.

In lieu of showing the proof gallons of spirits on daily transaction 
records of withdrawals from bonded premises, proprietors may show the 
wine gallons or liters and the proof of spirits in cases. Summary 
records shall be used to compile the report required by Sec.  19.792.

(Sec. 807, Pub. L. 96-39, 93 Stat. 283, as amended (26 U.S.C. 5207))



Sec.  19.752  Denaturation records.

    (a) General. Each processor qualified to denature spirits shall 
maintain daily records of denaturation showing:
    (1) Spirits received for, and used in, denaturation;
    (2) Spirits, denatured spirits, recovered denatured spirits, spirits 
residues, and articles redistilled in the processing account for 
denaturation;
    (3) Kind and quantity of denaturants received, used in denaturation 
of spirits, or otherwise disposed of;
    (4) Conversion of denatured alcohol formulas in accordance with 
Sec.  19.460;

[[Page 463]]

    (5) Denatured spirits produced, received, stored in tanks, filled 
into containers, removed, or otherwise disposed of;
    (6) Recovered denatured spirits or recovered articles received, 
restored, and/or redenatured;
    (7) Packages of denatured spirits filled with a separate record for 
each formula number and filed in numerical order according to the serial 
number or lot identification number of the packages;
    (8) Losses; and
    (9) Disposition of denatured spirits.
    (b) Record of denaturation. Each time spirits are denatured, a 
record shall be prepared to show the formula number, the tank in which 
denaturation takes place, the proof gallons of spirits before 
denaturation, the quantity of each denaturant used (in gallons, or in 
pounds or ounces), and wine gallons of denatured spirits produced.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.753  Record of article manufacture.

    Each processor qualified to manufacture articles shall maintain 
daily records arranged by the name and authorized use code of the 
article to show the following:
    (a) Quantity, by formula number of denatured spirits used in the 
manufacture of the article;
    (b) Quantity of each article manufactured; and
    (c) Quantity of each article removed, or otherwise disposed of, 
including the name and address of the person to whom sold or otherwise 
disposed of.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

                               Tax Records

    Source: Sections 19.761 through 19.765 added by T.D. ATF-297, 55 FR 
18064, Apr. 30, 1990, unless otherwise noted.



Sec.  19.761  Record of tax determination.

    A serially numbered invoice or shipping document, signed or 
initialed by an agent or employee of the proprietor, will constitute the 
record of tax determination. Although neither the proof gallons nor 
effective tax rates need be shown on the record of tax determination, 
there shall be shown on each invoice or shipping document sufficient 
information to enable appropriate TTB officers to determine the total 
proof gallons and, if applicable, each effective tax rate and the proof 
gallons removed at each effective tax rate. For purposes of this part, 
the total proof gallons calculated from each invoice or shipping 
document constitutes a single withdrawal.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.762  Daily summary record of tax determinations.

    Each proprietor of a distilled spirits plant who withdraws distilled 
spirits on determination of tax, but before payment of tax, shall 
maintain a daily summary record of tax determinations. The summary 
record will show, for each day on which tax determinations occur:
    (a) The serial numbers of the records of tax determination, the 
total proof gallons, rounded to the nearest tenth proof gallon on which 
tax was determined at each effective tax rate, and the total tax; or
    (b) The serial numbers of the records of tax determination, the 
total tax for each record of tax determination and the total tax.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.763  Record of average effective tax rates.

    (a) For each distilled spirits product to be tax determined in 
accordance with Sec.  19.37, the proprietor shall prepare a daily 
summary record showing the--
    (1) Serial number of the batch record of each batch of the product 
which will be bottled or packaged, in whole or in part, for domestic 
consumption;
    (2) Proof gallons in each such batch derived from distilled spirits, 
eligible wine, and eligible flavors; and
    (3) Tax liabilities of each such batch determined as follows:
    (i) Proof gallons of all distilled spirits (exclusive of distilled 
spirits derived from eligible flavors), multiplied by the tax rate 
prescribed in 26 U.S.C. 5001;

[[Page 464]]

    (ii) Wine gallons of each eligible wine, multiplied by the tax rate 
which would be imposed on the wine under 26 U.S.C. 5041(b)(1), (2), or 
(3) but for its removal to bonded premises; and
    (iii) Proof gallons of all distilled spirits derived from eligible 
flavors to the extent that such distilled spirits exceed 2\1/2\% of the 
proof gallons in the product, multiplied by the tax rate prescribed in 
26 U.S.C. 5001.
    (b) At the end of each month during which the product is 
manufactured, the proprietor shall determine the--
    (1) Total proof gallons and total tax liabilities for each summary 
record prescribed by paragraph (a) of this section;
    (2) Add the sums from paragraph (b)(1) of this section to the like 
sums determined for each of the preceding five months; and
    (3) Divide the total tax liabilities by the total proof gallons.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.764  Inventory reserve records.

    (a) General. The proprietor shall establish an inventory reserve 
account, as provided in this section, for each eligible distilled 
spirits product to be tax determined in accordance with Sec.  19.38.
    (b) Deposit records. For each batch of the product bottled or 
packaged, the proprietor shall enter into the inventory reserve account 
a deposit record, which may be combined with the bottling and packaging 
record required by Sec.  19.749 showing the:
    (1) Name of the product;
    (2) Bottling and packaging record serial number;
    (3) Date the bottling or packaging was completed;
    (4) Total proof gallons bottled and packaged; and
    (5) Effective tax rate of the product computed in accordance with 
Sec.  19.34.
    (c) Depletions. The inventory reserve account for each product will 
be depleted in the same order in which the deposit records were entered 
into such account. A depletion will be recorded for each disposition 
(e.g., a taxable removal, an exportation, an inventory shortage or 
breakage) by entering on the deposit record the:
    (1) Transaction date,
    (2) Transaction record serial number,
    (3) Proof gallons disposed of, and
    (4) Proof gallons remaining. If any depletion exceeds the quantity 
of product remaining on the deposit record, the remaining quantity will 
be depleted, the deposit record closed, and the remainder of the 
transaction depleted from the next deposit record.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.765  Standard effective tax rates.

    For each product to be tax determined using a standard effective tax 
rate in accordance with Sec.  19.36, the proprietor shall prepare a 
record of the standard effective tax rate computation showing, for one 
proof gallon of the finished product, the following information:
    (a) The name of the product;
    (b) The least quantity of each eligible flavor which will be used in 
the product, in proof gallons, or 0.025 proof gallon, whichever is less;
    (c) The least quantity of each eligible wine which will be used in 
the product, in proof gallons;
    (d) The greatest effective tax rate applicable to the product, 
calculated in accordance with Sec.  19.34 with the values indicated in 
paragraphs (a) and (b) of this section; and
    (e) The date on which the use of the standard effective tax rate 
commenced.

                              Other Records



Sec.  19.766  Record of samples.

    (a) Requirement. The proprietor shall maintain records of all 
samples taken pursuant to subpart V of this part.
    (b) Schedule. (1) When the proprietor takes samples pursuant to an 
established schedule, such schedule may be maintained as the required 
record if it contains that information required by paragraphs (c)(2) 
through (c)(8).
    (2) When unanticipated samples are taken, the schedule shall be 
appropriately supplemented.
    (c) Detail. Sample records shall show:
    (1) Date samples were taken;
    (2) Type and identification of container from which taken;
    (3) Account from which taken;
    (4) Purpose for which taken;
    (5) Size and number of samples taken;

[[Page 465]]

    (6) Kind of spirits;
    (7) Disposition of the sample (e.g., destroyed, returned to 
containers or the distilling system, retained for library purposes); and
    (8) Name and address of the person to whom samples were sent when 
the samples are to be analyzed or tested elsewhere than at the plant 
where secured.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.767  Record of destruction.

    The proprietor shall record details of the voluntary destruction of 
spirits, denatured spirits, articles, or wines as follows:
    (a) Identification of the spirits, denatured spirits, articles, or 
wines to include, as applicable, kind, quantity, elements of gauge, name 
and permit number of the producer, warehouseman or processor, and 
identification and type of container.
    (b) The date, time, place and manner of the destruction;
    (c) A statement of whether or not the spirits had previously been 
withdrawn and returned to bond; and
    (d) The name and title of the proprietor's representative who 
accomplished or supervised the destruction.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.768  Gauge record.

    When gauges are required to be made by this part or by the 
appropriate TTB officer, the proprietor shall prepare a gauge record to 
show:
    (a) Serial number, commencing with ``1'' at the start of each 
calendar or fiscal year;
    (b) Reason for making the gauge:
    (1) Production gauge and entry for deposit in the storage or 
processing account at the plant where produced;
    (2) Packaging of spirits or wine filled from a tank in the storage 
account at the same plant;
    (3) Transfer from the processing or storage account to the 
production account for redistillation;
    (4) Repackaging of spirits of 190 degrees or more of proof; or
    (5) Gauge on return to bond in the production or processing account 
of spirits, denatured spirits, recovered spirits, recovered denatured 
spirits, articles, recovered articles, or spirits residues.
    (c) Date of gauge;
    (d) Related form or record (identification, serial number and date);
    (e) Kind of spirits or formula number of denatured spirits;
    (f) Proof of distillation (not required for denatured spirits, 
spirits for redistillation, or spirits of 190 degrees or more of proof);
    (g) When containers are to be filled, the type and number of 
containers;
    (h) Age of spirits;
    (i) Name and plant number of the producer or warehouseman; and
    (j) Gauge data:
    (1) Package identification, tank number, volumetric or weight gauge 
details, proof, and wine gallons;
    (2) Cooperage identification (``C'' for charred, ``REC'' for 
recharred, ``P'' for plain, ``PAR''for paraffined, ``G'' for glued, or 
``R'' for reused);
    (3) Entry proof for whiskey;
    (4) Proof gallons per filled package; and
    (5) Total proof gallons of spirits or wine gallons of denatured 
spirits, recovered denatured spirits, articles, spirits residues, or 
wine.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.769  Package gauge record.

    When required by this part and Part 28, a record shall be prepared 
to document the gauge of packages of spirits and to convey information 
on package gauges. The following information shall be recorded:
    (a) Date prepared;
    (b) Identification of the related transaction form or record, and 
its serial number;
    (c) The name and plant number of the producer or processor (For 
blended rums or brandies enter name(s) and plant number of blending 
warehouseman. For spirits of 190 degrees or more of proof, name and 
plant number of the producer or warehouseman, as appropriate; where the 
packages have already been marked, the name and plant number marked 
thereon. For imported spirits, the name of the warehouseman who received 
the spirits from customs

[[Page 466]]

custody and name of importer. For Virgin Islands or Puerto Rican 
spirits, the name of the producer in the Virgin Islands or Puerto Rico);
    (d) proof of distillation for spirits not over 190 degrees proof; 
and
    (e) For each package--
    (1) Serial or identification number;
    (2) Designate wooden barrels as ``C'' for charred, ``REC'' for 
recharred, ``P'' for plain, ``PAR'' for paraffined, ``G'' for glued, 
``R'' for reused, and ``PS'' if a barrel has been steamed or water 
soaked before filling;
    (3) Kind of spirits;
    (4) Gross weight determined at the time of original gauge, regauge, 
or at time of shipment;
    (5) Present tare on regauge;
    (6) Net weight for filling gauge or regauge;
    (7) Proof;
    (8) Proof gallons for regauge;
    (9) Original proof gallons; and
    (10) Receiving weights, when a material difference appears on 
receipt after transfer in bond of weighed packages.

(Approved by the Office of Management and Budget under control number 
1512-0250)

(Sec. 807, Pub. L. 93-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23953, June 7, 1985; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]



Sec.  19.770  Transfer record.

    (a) Consignor. When required by this part, proprietors shall prepare 
a transfer record. The transfer record shall show: (1) Serial number, 
commencing with ``1'' on January 1 of each year;
    (2) Serial number and date of TTB Form 5100.16 (not required for 
wine spirits withdrawn without payment of tax for use in wine 
production);
    (3) Name and distilled spirits plant number of consignor;
    (4) Name and distilled spirits plant number or bonded wine cellar 
number of the consignee;
    (5) Account from which the spirits or wines were removed for 
transfer (i.e., production, storage, or processing account);
    (6) Description of the spirits, denatured spirits, or wine--
    (i) Name and plant number of the producer, warehouseman or processor 
(Not required for denatured spirits or wine. For imported spirits, 
record the name and plant number of the warehouseman or processor who 
received the spirits from customs custody. For transfer of imported 
spirits from customs custody to TTB bond, record the name of the foreign 
producer. For Virgin Islands or Puerto Rican spirits, show the name of 
the producer in the Virgin Islands or Puerto Rico. For spirits of 
different producers or warehousemen which have been mixed in the 
processing account, record the name of the processor.);
    (ii) Kind of spirits or wines (For denatured spirits, show kind and 
formula number. For alcohol, show material from which produced. For bulk 
spirits and for alcohol in packages, show kind and proof. For other 
spirits and wines, use kind designation as defined in 27 CFR Part 4 or 5 
as appropriate);
    (iii) Age (in years, months, and days) and year of production;
    (iv) Number of packages or cases with their lot identification 
numbers or serial numbers and date of fill;
    (v) Type of container (If spirits, denatured spirits or wines are to 
be transferred by pipeline, show ``P/L''.);
    (vi) Proof gallons for distilled spirits, or wine gallons for 
denatured spirits or wine;
    (vii) Conveyance identification; and
    (viii) For distilled spirits products which contain eligible wine or 
eligible flavors, the elements necessary to compute the effective tax 
rate as follows:
    (A) Proof gallons of distilled spirits (exclusive of distilled 
spirits derived from eligible flavors);
    (B) Wine gallons of each eligible wine and the percentage of alcohol 
by volume of each; and
    (C) Proof gallons of distilled spirits derived from eligible 
flavors.
    (7) Notation to indicate when spirits are being transferred in bond 
from production facility to another plant;
    (8) Identification of seals, locks or other devices affixed to the 
conveyance or package (Permanent seals affixed to a conveyance and which 
remain intact need not be recorded on the transfer record when a 
permanent record is maintained);
    (9) Date; and

[[Page 467]]

    (10) Signature and title of the consignor with the penalties of 
perjury statement required by Sec.  19.100.
    (b) Consignee. (1) When a proprietor receives wine from a bonded 
wine cellar, the consignee shall complete Form 703 covering such 
transfer in accordance with the instructions thereon.
    (2) When a proprietor receives spirits from an alcohol fuel plant or 
from customs custody, or spirits, denatured spirits and wines from the 
bonded premises of another distilled spirits plant, he shall record the 
results of such receipt on the related transfer record as follows:
    (i) Date of receipt;
    (ii) Notation whether the securing devices on the conveyance were or 
were not intact on arrival (not applicable to spirits transferred in 
unsecured conveyances or denatured spirits);
    (iii) Gauge of spirits, denatured spirits, or wine showing the tank 
number, proof (percent of alcohol by volume for wine) and elements of 
the weight or volumetric determination of quantity, wine gallons or 
proof gallons received, and any losses or gains;
    (iv) Notation of excessive in-transit loss, missing packages, 
tampering, or apparent theft;
    (v) Account into which the spirits, denatured spirits or wines were 
deposited (i.e., production, storage or processing); and
    (vi) Signature and title of the consignee with the penalties of 
perjury statement required by Sec.  19.100.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-297, 55 
FR 18065, Apr. 30, 1990; 55 FR 23635, June 11, 1990]



Sec. Sec.  19.771-19.772  [Reserved]



Sec.  19.773  Daily record of wholesale liquor dealer and taxpaid storeroom operations.

    Where the proprietor, in connection with his plant, conducts 
wholesale liquor dealer operations, or operates a taxpaid storeroom, on, 
contiguous to, adjacent to, or in the immediate vicinity of general 
plant premises, or operates taxpaid storage premises at another location 
from which distilled spirits are not sold at wholesale, he shall 
maintain daily records of the receipt and disposition of all distilled 
spirits and wines at such premises, and of all reclosing and relabeling 
operations. The provisions of this section shall also apply to products 
returned to a wholesale liquor dealer or taxpaid storeroom from the 
market. A separate record shall be kept for each such premises. The 
records in respect of the receipt and disposition of distilled spirits 
and wines shall contain all data necessary (consisting of or supported 
by records including bills of lading and invoices) to enable appropriate 
TTB officers to identify and trace such receipt and dispositions and to 
ascertain whether there has been compliance with all laws and 
regulations relating thereto. In addition to any other information shown 
therein, such records shall include:
    (a) For receipts and dispositions--
    (1) The date of the transaction (or date of discovery in the case of 
casualty or theft);
    (2) The name and address of each consignor or consignee, as the case 
may be;
    (3) The brand name;
    (4) The kind of spirits;
    (5) The actual quantity of distilled spirits involved (proof and 
proof gallons if in packages, wine gallons or liters and proof if in 
bottles);
    (6) The package identification or serial numbers of packages 
involved;
    (7) The name of the producer; and
    (8) The country of origin, if imported spirits.
    (b) For case dispositions--In addition to the requirements listed in 
paragraph (a) of this section the appropriate TTB officer may, upon 
notice to the dealer, require the recording of case serial numbers for 
dispositions.
    (c) For reclosing or relabeling operations--
    (1) The date of the transaction;
    (2) The serial numbers of cases involved;
    (3) The total number of bottles;
    (4) The name of the bottler; and

[[Page 468]]

    (5) The number and kind of strip stamps used and/or the number of 
alternative devices used.

(Approved by the Office of Management and Budget under control number 
1512-0198)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23953, June 7, 1985]



Sec.  19.774  Record of inventories.

    (a) General. Each proprietor shall make a record of inventories of 
spirits, denatured spirits, and wines required by Sec. Sec.  19.329, 
19.353, 19.401, 19.402, and 19.464. The following information shall be 
shown:
    (1) Date taken;
    (2) Identification of container(s);
    (3) Kind and quantity of spirits, denatured spirits, and wines;
    (4) Losses (whether by theft, voluntary destruction or otherwise), 
gains or shortages; and
    (5) Signature, under penalties of perjury, of the proprietor or 
person taking the inventory.
    (b) Production. Each proprietor shall record the quarterly inventory 
of spirits as provided in paragraph (a) of this section.
    (c) Storage. (1) Each proprietor shall record the quarterly 
inventory of spirits and wines (except those in packages) as provided in 
paragraph (a) of this section.
    (2) Gains or losses disclosed for each container shall be recorded 
on the current tank record (or summary record for spirits of 190 degrees 
or more of proof).
    (d) Processing. Each proprietor shall record inventories as provided 
in paragraph (a) of this section, and for:
    (1) Bulk spirits and wines in process, any gains or losses shall be 
recorded on the individual dump, batch, or bottling record;
    (2) Finished products in bottles and packages, any overages, losses, 
and shortages for the total quantity inventoried shall be recorded in 
records required by Sec.  19.751; and
    (3) Denatured spirits, any gains or losses shall be recorded in the 
record prescribed by Sec.  19.752.
    (e) Retention. Inventory records shall be retained by the proprietor 
and made available for inspection by appropriate TTB officers.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.775  Record of securing devices.

    Each proprietor shall maintain a record of securing devices by 
serial number showing the number received, affixed to conveyances (in 
serial order), and otherwise disposed of.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.776  Record of scale tests.

    Proprietors shall maintain records of results of tests conducted in 
accordance with Sec.  19.273 and Sec.  19.276.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.777  [Reserved]



Sec.  19.778  Removal on or after January 1, 1987 of Puerto Rican and Virgin Islands spirits, and rum imported from all other areas.

    (a) General. The proprietor shall maintain separate accounts, in 
proof gallons, of Puerto Rican spirits having an alcoholic content of at 
least 92 percent rum, of Virgin Islands spirits having an alcoholic 
content of at least 92 percent rum, and of rum imported from all other 
areas removed from the processing account on determination of tax. 
Quantities of spirits in these categories that are contained in products 
mixed in processing with other alcoholic ingredients may be determined 
by using the methods provided in paragraphs (b), (c), or (d) of this 
section. The proprietor shall report these quantities monthly on Form 
5110.28, Monthly Report of Processing Operations, as provided in Sec.  
19.792.
    (b) Standard method. For purposes of the separate accounts, 
quantities of spirits in the above categories may be determined based on 
the least amount of such spirits which may be used in each product as 
stated in the approved formula, TTB F 5110.38.
    (c) Averaging method. For purposes of the separate accounts, 
quantities of spirits in the above categories may be determined by 
computing the average quantity of such spirits contained in

[[Page 469]]

all batches of the same product formulation manufactured during the 
preceding 6-month period. The average shall be adjusted at the end of 
each month so as to include only the preceding 6-month period.
    (d) Alternative method. Distilled spirits plant proprietors who wish 
to use an alternative method for determining the amount of spirits in 
these categories contained as ingredients of other distilled spirits 
products shall file an application with the appropriate TTB officer. The 
written application shall specifically describe the proposed alternative 
method, and shall set forth the reasons for using the alternative 
method.
    (e) Transitional rule. On January 1, 1987 the proprietor shall take 
physical inventories of all Puerto Rican spirits, Virgin Islands 
spirits, and rum imported from all other areas which were received into 
the processing account prior to that date. These inventories may be 
taken as provided in Sec.  19.402(a)(2). The results of the inventories 
shall be submitted in a letter to the appropriate TTB officer within 30 
days of the required date of the inventories.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5555))

[T.D. ATF-239, 51 FR 40026, Nov. 4, 1986]



Sec.  19.779  Record of shipment of spirits and specially denatured spirits withdrawn free of tax.

    (a) General. The proprietor shall prepare a record of shipment, and 
forward the original to the consignee and file a copy, when:
    (1) Samples of specially denatured spirits in excess of five gallons 
are withdrawn in accordance with Sec.  19.540(c)(2);
    (2) Spirits are withdrawn free of tax in accordance with Sec.  
19.536(a)--(c); and
    (3) Specially denatured spirits are withdrawn free of tax in 
accordance with Sec. Sec.  19.536(d) and 19.540.
    (b) Form of record. (1) The record of shipment prescribed in this 
section may consist of a proprietor's commercial invoice, bill of 
lading, or another document intended for the same purpose. Any 
commercial document used as a record of shipment shall:
    (i) Be preprinted with the name and address of the proprietor,
    (ii) Be sequentially numbered, and
    (iii) Be consistently used for the intended purpose.
    (2) In addition to any other information on the document, the record 
of shipment shall contain, as applicable, the following information:
    (i) Date of shipment;
    (ii) Name, address, and permit number of consignee;
    (iii) Kind of spirits;
    (iv) Proof of spirits;
    (v) Formula number(s), for specially denatured spirits;
    (vi) Number and size of containers;
    (vii) Package identification numbers or serial numbers of 
containers; and
    (viii) Total wine gallons (specially denatured spirits) or total 
proof gallons (tax-free alcohol).

(Records relating to tax-free alcohol approved by the Office of 
Management and Budget under control number 1512-0334; records relating 
to specially denatured spirits approved by the Office of Management and 
Budget under control number 1512-0337)

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985]



Sec.  19.780  Record of distilled spirits shipped to manufacturers of nonbeverage products.

    (a) General. Where distilled spirits are shipped to a manufacturer 
of nonbeverage products, the proprietor shall prepare a record of 
shipment, forward the original to the consignee, and retain a copy.
    (b) Form of record. The record of tax determination prescribed by 
Sec.  19.761, or any other document issued by the proprietor and 
containing the necessary information, may be used as the record of 
shipment.
    (c) Required information. In addition to any other information on 
the document, the document used as the record of shipment must contain 
the following information:
    (1) Name, address and registry number of the proprietor;
    (2) Date of shipment;
    (3) Name and address of the consignee;
    (4) Kind, proof, and quantity of distilled spirits in each 
container;

[[Page 470]]

    (5) Number of containers of each size;
    (6) Package identification numbers or serial numbers of containers;
    (7) Serial number of the applicable record of tax determination; and
    (8) For distilled spirits containing eligible wine or eligible 
flavors, the effective tax rate.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); Sec. 201 Pub. 
L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))

[T.D. ATF-297, 55 FR 18065, Apr. 30, 1990, as amended by T.D. ATF-379, 
61 FR 31426, June 20, 1996]

                     Submission of Forms and Reports



Sec.  19.791  Submission of transaction forms.

    Completed copies of transaction forms which must be submitted to the 
appropriate TTB officer under the provisions of this part shall be 
submitted by the proprietor no later than the close of business the 
third business day succeeding the day of the transaction as provided by 
this part and by instructions on the individual forms.

(Sec. 807, Pub. L. 97-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.792  Reports.

    (a) Reports required by this section shall be prepared as of the end 
of the applicable reporting period. The original shall be submitted to 
the appropriate TTB officer and a copy retained by the proprietor.
    (b) Proprietors shall submit the following summary reports of their 
operations:

------------------------------------------------------------------------
                Title                   Form No.      Reporting period
------------------------------------------------------------------------
(1) Production report................     5110.40  Monthly.
(2) Storage report...................     5110.11   Do.
(3) Processing reports--
    (i) Manufacture/bottling.........     5110.28   Do.
    (ii) Denaturation (including          5110.43   Do.
     articles).
------------------------------------------------------------------------

    (c) All reports required by this part shall be prepared and 
submitted to the appropriate TTB officer not later than the 15th day of 
the month following the close of the reporting period.

(Approved by the Office of Management and Budget under control number 
1512-0198)

(Sec. 807, Pub. L. 96-39, 98 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23953, June 7, 1985]



        Subpart X_Production of Vinegar by the Vaporizing Process

                            Scope of subpart



Sec.  19.821  Production of vinegar by the vaporizing process.

    The regulations in this subpart relate to the production of vinegar 
by the vaporizing process. The regulations cover requirements governing 
the location, qualification, changes after qualification, construction, 
equipment, plant operations and records of operations at vinegar plants. 
Except where incorporated by reference, the provisions of subpart A 
through W and subpart Y of this part do not apply to vinegar plants 
using the vaporizing process. The following provisions of this part 
shall apply to this subpart: the meaning of terms, Sec.  19.11; other 
businesses, Sec.  19.68; right of entry and examination, Sec.  19.81; 
furnishing facilities and assistance, Sec.  19.86; restrictions as to 
location, Sec.  19.131; registry of stills, Sec.  19.169; and 
maintenance and preservation of records, Sec.  19.723.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1391, as amended 
(26 U.S.C. 5501-5505))

                         Qualification Documents



Sec.  19.822  Application.

    Each person, before commencing the business of manufacturing vinegar 
by the vaporizing process shall make written application to the 
appropriate TTB officer. The application will include:
    (a) The applicant's name and principal business address (including 
the plant address if different from the principal business address);
    (b) Description of the extent of the premises;
    (c) Description of the type of operations to be conducted; and

[[Page 471]]

    (d) Description of the stills including the name and residence of 
the owner, the kind of still, its capacity and the purpose for which it 
was set up.

The applicant shall receive and approved application from the 
appropriate TTB officer prior to commencing business.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, (26 U.S.C. 5502))



Sec.  19.823  Changes after original qualification.

    When there is a change in the information recorded in the original 
approved application, the proprietor shall make a written notice of the 
change to the appropriate TTB officer. The notice will identify the 
change and the effective date of the change.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, (26 U.S.C. 5502))



Sec.  19.824  Notice of permanent discontinuance of business.

    A proprietor who intends to permanently discontinue operations shall 
make written notice to the appropriate TTB officer. The proprietor shall 
include in the notice a statement of the status of the stills.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, (26 U.S.C. 5502))

                       Construction and Equipment



Sec.  19.825  Construction and equipment.

    A proprietor of a vinegar plant shall construct and equip the 
vinegar plant so that--
    (a) The distilled spirits vapors that are separated by the 
vaporizing process from the mash produced by the manufacturer are 
condensed only by introducing them into the water or other liquid used 
in making the vinegar; and
    (b) The distilled spirits produced can be accurately accounted for 
and are secure from unlawful removal from the premises or from 
unauthorized use.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, (26 U.S.C. 5502))

                            Plant Operations



Sec.  19.826  Authorized operations.

    Vinegar manufacturers qualified under this subpart are authorized 
to--
    (a) Produce vinegar only by the vaporizing process; and
    (b) Produce distilled spirits of 30 degrees of proof or less only 
for use in the manufacture of vinegar on the vinegar plant premises.



Sec.  19.827  Conduct of operations.

    Vinegar manufacturers qualified under this subpart may--
    (a) Separate by a vaporizing process the distilled spirits from the 
mash produced by him; and
    (b) Condense the distilled spirits vapors by introducing them into 
the water or other liquid used in making the vinegar.



Sec.  19.828  Removals from the premises.

    No person shall remove from the vinegar plant premises vinegar or 
other fluid or material containing more than 2% alcohol by volume.

                                 Records



Sec.  19.829  Daily records.

    Each manufacturer of vinegar by the vaporizing process shall keep 
accurate and complete daily records of production operations that 
include--
    (a) The kind and quantity of fermenting or distilling materials 
received on the premises;
    (b) The kind and quantity of materials fermented or mashed;
    (c) The proof gallons of distilled spirits produced;
    (d) The proof gallons of distilled spirits used in the manufacture 
of vinegar;
    (e) The wine gallons of vinegar produced; and
    (f) The wine gallons of vinegar removed from the premises.

Separate government records need not be kept as long as commercial 
records contain all the required information.

                    Administrative and Miscellaneous



Sec.  19.830  Application of distilled spirits tax.

    The internal revenue tax must be paid on any distilled spirits 
produced in or removed from the premises of a vinegar plant in violation 
of law or this subpart.

[[Page 472]]



                Subpart Y_Distilled Spirits For Fuel Use



Sec.  19.901  Scope of subpart.

    This subpart implements 26 U.S.C. 5181, which authorizes the 
establishment of distilled spirits plants solely for producing, 
processing and storing, and using or distributing distilled spirits to 
be used exclusively for fuel use. This subpart relates to the 
qualification and operation of such distilled spirits plants. Distilled 
spirits plants established under this subpart are designated as alcohol 
fuel plants.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.902  Waiver for alcohol fuel plants.

    All provisions of subparts A through X of this part and all 
provisions of 26 U.S.C. Chapter 51 are hereby waived except:
    (a) Any provision specifically incorporated by reference in this 
subpart and the cited authority for that provision;
    (b) Any provision requiring the payment of tax;
    (c) Any provisions dealing with penalty, seizure, or forfeiture 
which is applicable to distilled spirits; and
    (d) 26 U.S.C. 5181.

(Sec. 232, Pub. L. 93-224, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.903  Alternate methods or procedures.

    The proprietor, on specific approval by the appropriate TTB officer 
as provided in this paragraph, may use an alternate method or procedure 
in lieu of a method or procedure specifically prescribed in this subpart 
or subparts A through X of this part where the provisions of those 
subparts have been incorporated by reference in this subpart. The 
appropriate TTB officer may approve an alternate method or procedure, 
subject to stated conditions, when he finds that--
    (a) Good cause has been shown for the use of the alternate method or 
procedure;
    (b) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure, and affords equivalent security to the revenue; and
    (c) The alternate method or procedure will not be contrary to any 
applicable provision of law, and will not result in an increase in cost 
to the Government or hinder the effective administration of this part. 
No alternate method or procedure relating to the giving of any bond, to 
the assessment, payment or collection of tax, will be authorized under 
this section. Where the proprietor desires to employ an alternate method 
or procedure, he shall submit a written application to do so to the 
appropriate TTB officer. The application will specifically describe the 
proposed alternate method or procedure, and will set forth the reasons 
therefor. The proprietor shall not employ any alternate method or 
procedure until the application has been approved. The proprietor shall, 
during the period of authorization of an alternate method or procedure, 
comply with the terms of the approved application. Authorization for any 
alternate method or procedure may be withdrawn whenever in the judgment 
of the appropriate TTB officer the revenue is jeopardized or the 
effective administration of this part is hindered by the continuation of 
such authorization. As used in this section, alternate methods or 
procedures include alternate construction or equipment. The proprietor 
shall retain, as part of the records available for examination by 
appropriate TTB officer, any application approved by the appropriate TTB 
officer under the provisions of this section.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.904  Emergency variations from requirements.

    The appropriate TTB officer may approve construction, equipment, and 
methods of operation other than as specified in this part, where he 
finds that an emergency exists and the proposed variations from the 
specified requirements are necessary, and the proposed variations--
    (a) Will afford the security and protection to the revenue intended 
by the prescribed specifications;
    (b) Will not hinder the effective administration of this part; and

[[Page 473]]

    (c) Will not be contrary to any applicable provisions of law. 
Variations from requirements granted under this section are conditioned 
on compliance with the procedures, conditions, and limitations with 
respect thereto set forth in the approval of the application. Failure to 
comply in good faith with such procedures, conditions, and limitations 
will automatically terminate the authority for such variations and the 
proprietor thereupon shall fully comply with the prescribed requirements 
of regulations from which the variations were authorized. Authority for 
any variation may be withdrawn whenever in the judgment of the 
appropriate TTB officer the revenue is jeopardized or the effective 
administration of this part is hindered by the continuation of such 
variation. Where the proprietor desires to employ such variation, he 
shall submit a written application to do so to the appropriate TTB 
officer. The application will describe the proposed variations and set 
forth the reasons therefor. Variations will not be employed until the 
application has been approved, except when the emergency requires 
immediate action to correct a situation that is threatening to life or 
property. Such corrective action may then be taken concurrent with the 
filing of the application and notification of the appropriate TTB 
officer, via telephone. The proprietor shall retain, as part of the 
records available for examination by appropriate TTB officers, any 
application approved by the appropriate TTB officer under the provisions 
of this section.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.905  Taxes.

    Distilled spirits may be withdrawn free of tax from the premises of 
an alcohol fuel plant exclusively for fuel use in accordance with this 
subpart. Payment of tax will be required in the case of diversion of 
spirits to beverage use or other unauthorized dispositions. The 
provisions of subpart C of this part are applicable to distilled spirits 
for fuel use as follows:
    (a) Imposition of tax liability (Sec. Sec.  19.21 through 19.25);
    (b) Assessment of tax (Sec. Sec.  19.31 and 19.32); and
    (c) Claims for tax (Sec. Sec.  19.41 and 19.44).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))

[T.D. ATF-207, 50 FR 23682, June 5, 1985]



Sec.  19.906  Special (occupational) tax.

    (a) General rule. A proprietor of an alcohol fuel plant established 
under this subpart shall be subject to a special (occupational) tax as 
prescribed in subpart Ca of this part, and shall hold a separate special 
tax stamp to cover the alcohol fuel operations except during the 
suspension period described in Sec.  19.49(a)(3) when special tax stamps 
are not issued.
    (b) Exemption for small plants (effective July 1, 1989). On and 
after July 1, 1989, paragraph (a) of this section shall not apply to 
small alcohol fuel plants as defined in Sec.  19.907. If the annual 
production (including receipts) of a small plant exceeds 10,000 proof 
gallons in any calendar year, special tax is due as provided in Sec.  
19.49(a)(1) for the special tax year (July 1 through June 30) commencing 
during that calendar year, regardless of whether an application for 
change of plant type under Sec.  19.921(a) has been filed or approved. 
If a medium or large plant produces 10,000 or fewer proof gallons 
(including receipts) in any calendar year, the plant shall be exempt 
from special tax under this paragraph, as for a small plant, for the 
special tax year (July 1 through June 30) commencing during that 
calendar year, regardless of whether an application under Sec.  
19.921(c) has been filed or approved.

(26 U.S.C. 5081)

[T.D. ATF-271, 53 FR 17543, May 17, 1988, as amended by T.D. ATF-285, 53 
FR 12609, Mar. 28, 1989; T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. 
TTB-36, 70 FR 62243, Oct. 31, 2005]

                               Definitions



Sec.  19.907  Meaning of terms.

    When used in this subpart, and in forms prescribed under this 
subpart, terms shall have the meaning given in this section. Words in 
the plural form include the singular and vice versa, and words 
indicating the masculine gender include the feminine. The terms 
``includes'' and ``including'' do not exclude

[[Page 474]]

things not enumerated which are in the same general class.
    Alcohol fuel plant or plant. An establishment qualified under this 
subpart solely for producing, processing and storing, and using or 
distributing distilled spirits to be used exclusively for fuel use.
    Alcohol fuel producer's permit. The document issued pursuant to 26 
U.S.C. 5181 authorizing the person named therein to engage in business 
as an alcohol fuel plant.
    Bonded premises. The premises of an alcohol fuel plant where 
distilled spirits are produced, processed and stored, and used or 
distributed. Premises of small alcohol fuel plants, which are exempt 
from bonding under Sec.  19.912(b), shall be treated as bonded premises 
for purposes of this subpart.
    CFR. The Code of Federal Regulations.
    Fuel alcohol. Distilled spirits which have been rendered unfit for 
beverage use at an alcohol fuel plant as provided in this subpart.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    Person. An individual, trust, estate, partnership, association, 
company or corporation.
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A gallon of liquid at 60 degrees Fahrenheit which 
contains 50 percent by volume of ethyl alcohol having a specific gravity 
of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees 
Fahrenheit as unity, or the alcoholic equivalent thereof.
    Proprietor. The person qualified under this subpart to operate the 
alcohol fuel plant.
    Render unfit for beverage use. The addition to distilled spirits of 
materials which will not impair the quality of the spirits for fuel use 
as prescribed and authorized by the provisions of this subpart.
    Secretary. The Secretary of the Treasury or his delegate.
    Spirits or distilled spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine in any form (including all dilutions and 
mixtures thereof from whatever source or by whatever process produced), 
but not fuel alcohol unless specifically stated. For purposes of this 
subpart, the term does not include spirits produced from petroleum, 
natural gas, or coal.
    This chapter. Title 27, Code of Federal Regulations, Chapter I [27 
CFR Chapter I].
    Transfer in bond. The transfer of spirits between alcohol fuel 
plants or the transfer of spirits to or from a distilled spirits plant 
qualified under 26 U.S.C. 5171 and an alcohol fuel plant.
    Type of plant. The following three types of alcohol fuel plants are 
recognized in this subpart:
    (a) Small plant. An alcohol fuel plant which produces (including 
receipts) not more than 10,000 proof gallons of spirits per calendar 
year.
    (b) Medium plant. An alcohol fuel plant which produces (including 
receipts) more than 10,000 and not more than 500,000 proof gallons of 
spirits per calendar year.
    (c) Large plant. An alcohol fuel plant which produces (including 
receipts) more than 500,000 proof gallons of spirits per calendar year.
    U.S.C. The United States Code.

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. TTB-44, 71 
FR 16933, Apr. 4, 2006]

                                 Permits



Sec.  19.910  Application for permit required.

    Any person wishing to establish an alcohol fuel plant shall first 
make application for and obtain an alcohol fuel producer's permit. The 
application for a permit will be on Form 5110.74. The application, in 
duplicate, will be submitted to the appropriate TTB officer. The 
description of stills on the approved application constitutes 
registration of stills as required by 27 CFR 196.45. Alcohol fuel 
producers' permits are continuing unless automatically terminated under 
Sec.  19.920, suspended or revoked as provided in Sec.  19.950, or 
voluntarily surrendered.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))

[[Page 475]]



Sec.  19.911  Criteria for issuance of permit.

    In general, an alcohol fuel producer's permit will be issued to any 
person who completes the required application for permit and who 
furnishes the required bond (if any). However, the appropriate TTB 
officer may institute proceedings for the denial of the application, if 
the appropriate TTB officer determines that:
    (a) The applicant (including, in the case of a corporation, any 
officer, director, or principal stockholder, and in the case of a 
partnership, a partner) is, by reason of business experience, financial 
standing, or trade connections, not likely to maintain operations in 
compliance with 26 U.S.C. Chapter 51, or regulations issued thereunder; 
or
    (b) The applicant has failed to disclose any material information 
required, or has made any false statement, as to any material fact, in 
connection with the application; or
    (c) The premises on which the applicant proposes to conduct the 
operations are not adequate to protect the revenue. The procedures 
applicable to denial of applications are set forth in 27 CFR Part 71.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.912  Small plants.

    Persons wishing to establish a small plant shall apply for a permit 
as provided in this section. Except as provided in paragraph (c) of 
Sec.  19.913, operations may not be commenced until the permit has been 
issued.
    (a) Application for permit. The application (Form 5110.74) shall be 
submitted to the appropriate TTB officer and shall set forth the 
following information:
    (1) Name and mailing address of the applicant, and the location of 
the alcohol fuel plant if not apparent from the mailing address;
    (2) A diagram of the plant premises and a statement as to the 
ownership of the premises (if the premises are not owned by the 
proprietor, the owner's consent to access by appropriate TTB officers 
must be furnished);
    (3) A description of all stills and a statement of their maximum 
capacity;
    (4) The materials from which spirits will be produced; and
    (5) A description of the security measures to be used to protect 
premises, buildings and equipment where spirits are produced, processed, 
and stored.
    (b) Bond. No bond is required for small plants.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.913  Action on applications to establish small plants.

    (a) Receipt by the appropriate TTB officer--(1) Notice of receipt. 
Within 15 days of receipt of the application, the appropriate TTB 
officer shall send a written notice of receipt to the applicant. The 
notice will include a statement as to whether the application meets the 
requirements of Sec.  19.912. If the application does not meet those 
requirements, the application will be returned and a new 15-day period 
will commence upon receipt by the appropriate TTB officer of the amended 
or corrected application.
    (2) Failure to give notice. If the required notice of receipt is not 
sent, and the applicant has a receipt indicating that the appropriate 
TTB officer has received the application, the 45-day period provided for 
in paragraphs (b) and (c) of this section will commence on the fifteenth 
day after the date the appropriate TTB officer received the application.
    (3) Limitation. The provisions of subparagraphs (1) and (2) of this 
section apply only to:
    (i) The first application submitted with respect to any one small 
plant in any calendar quarter; and
    (ii) An amended or corrected first application.
    (b) Determination by the appropriate TTB officer. Within 45 days 
from the date the appropriate TTB officer sent the applicant a notice of 
receipt of a completed application, the appropriate TTB officer shall 
either (1) issue the permit, or (2) give notice in writting to the 
applicant, stating in detail the reason that a permit will not be 
issued. Denial of an application will not prejudice any further 
application for a permit made by the same applicant.
    (c) Presumption of approval. If, within 45 days from the date of the 
notice to

[[Page 476]]

the applicant of receipt of a completed application, the appropriate TTB 
officer has not notified the applicant of issuance of the permit or 
denial of the application, the application shall be deemed to have been 
approved and the applicant may proceed if a permit had been issued.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.914  Medium plants.

    Any person wishing to establish a medium plant shall make 
application for and obtain in alcohol fuel producer's permit. Operations 
may not be commenced until the application has been approved and the 
permit issued.
    (a) Application for permit. The application (Form 5110.74) shall be 
submitted to the appropriate TTB officer and shall set forth the 
following information:
    (1) The information required by Sec.  19.912 (a);
    (2) Statement of maximum total proof gallons of spirits that will be 
produced and received during a calendar year:
    (3) Information identifying the principal persons involved in the 
business and a statement as to whether the applicant or any such person 
has ever been convicted of a felony or misdemeanor under Federal or 
State law; and,
    (4) Statement of the amount of funds invested in the business and 
the source of those funds.
    (b) Bond. A bond of sufficient penal sum, as prescribed in Sec.  
19.957, is required. The bond must be submitted on Form 5110.56 and 
approved before a permit may be issued.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.915  Large plants.

    Any person wishing to establish a large plant shall make application 
for and obtain an alcohol fuel producer's permit. Operations may not be 
commenced until the application has been approved and the permit issued.
    (a) Application for permit. The application (Form 5110.74) shall be 
submitted to the appropriate TTB officer and shall set forth the 
following information:
    (1) The information required by Sec.  19.912(a);
    (2) Statement of the maximum proof gallons of spirits that will be 
produced and received during a calendar year;
    (3) Information identifying the principal persons involved in the 
business and a statement as to whether the applicant or any such person 
has ever been convicted of a felony or misdemeanor under Federal or 
State law;
    (4) Statement of the amount of funds invested in the business and 
the source of those funds;
    (5) Statement of the type of business organization and of the 
persons interested in the business, supported by the items of 
information listed in Sec.  19.916; and,
    (6) List of the offices, the incumbents of which are authorized by 
the articles of incorporation or the board of directors to act on behalf 
of the proprietor or to sign the proprietor's name.
    (b) Bond. A bond of sufficient penal sum, as prescribed in Sec.  
19.957, is required. The bond must be submitted on Form 5110.56 and 
approved before a permit may be issued.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.916  Organizational documents.

    The supporting information required by paragraph (a)(5) of Sec.  
19.915, includes, as applicable, copies of--
    (a) Corporate documents. (1) Corporate charter or certificate of 
corporate existence or incorporation.
    (2) List of officers and directors, showing their names and 
addresses. However, do not list officers and directors who have no 
responsibilities in connection with the operation of the alcohol fuel 
plant.
    (3) Certified extracts or digests of minutes of meetings of board of 
directors, authorizing certain individuals to sign for the corporation.
    (4) Statement showing the number of shares of each class of stock or 
other evidence of ownership, authorized and outstanding, and the voting 
rights of the respective owners or holders.
    (b) Statement of interest. (1) Names and addresses of the 10 persons 
having the largest ownership or other interest in

[[Page 477]]

each of the classes of stock in the corporation, or other legal entity, 
and the nature and amount of the stockholding or other interest of each, 
whether the interest appears in the name of the interested party or in 
the name of another for him. If a corporation is wholly owned or 
controlled by another corporation, those persons of the parent 
corporation who meet the above standards are considered to be the 
persons interested in the business of the subsidiary, and the names 
thereof need be furnished only upon request of the appropriate TTB 
officer.
    (2) In the case of an individual owner or partnership, the name and 
address of each person interested in the plant, whether the interest 
appears in the name of the interested party or in the name of another 
for that person.
    (c) Availability of additional documents. The originals of documents 
required to be submitted under this section and additional items 
required under Sec.  19.918 such as the articles of incorporation, 
bylaws, State certificate authorizing operations, or articles of 
partnership or association (in the case of a partnership where required 
by State law) shall be made available to any appropriate TTB officer 
upon request.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.917  Powers of attorney.

    The proprietor of a large plant shall execute and file with the 
appropriate TTB officer a Form 1534 (5000.8), in accordance with 
instructions on the form, for each person authorized to sign or act on 
behalf of the proprietor (Not required for persons whose authority is 
furnished in the application).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.918  Information already on file and supplemental information.

    If any of the information required by Sec. Sec.  19.912 through 
19.916 is on file with the appropriate TTB officer, that information, if 
accurate and complete, may be incorporated by reference and made a part 
of the application. When required by the appropriate TTB officer, the 
applicant shall furnish as a part of the application for permit, 
additional information as may be necessary to determine whether the 
application should be approved.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278, (26 U.S.C. 5181))

               Changes Affecting Applications and Permits



Sec.  19.919  Changes affecting applications and permits.

    When there is a change relating to any of the information contained 
in, or considered a part of, the application on Form 5110.74, the 
proprietor shall within 30 days file with the appropriate TTB officer, a 
written notice, in duplicate, of such change. Where the change affects 
the terms and conditions of the permit the proprietor shall within 30 
days (except as otherwise provided in this subpart), file with the 
appropriate TTB officer, in duplicate, an amended application on Form 
5110.74.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271); sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 
U.S.C. 5181))



Sec.  19.920  Automatic termination of permits.

    (a) Permits not transferable. Permits issued under this subpart 
shall not be transferred. In the event of the lease, sale, or other 
transfer of such a permit, or of the authorized operations, the permit 
automatically terminates.
    (b) Corporations. In the case of a corporation holding a permit 
under this subpart, if actual or legal control of the permittee 
corporation changes, directly or indirectly, whether by reason of change 
in stock ownership or control (in the permittee corporation or in any 
other corporation), by operation of law, or in any other manner, the 
permit may remain in effect until the expiration of 30 days after the 
change, whereupon the permit will automatically terminate. However, if 
operations are to be continued after the change in control, and an 
application for a new permit is filed within 30 days of the change, then 
the outstanding permit may remain in effect until final action is taken 
on the new application. When

[[Page 478]]

final action is taken on the application, the outstanding permit 
automatically terminates.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  19.921  Change in type of alcohol fuel plant.

    (a) Small plants. If the proprietor of a small plant wishes to 
increase production (including receipts) to a level in excess of 10,000 
proof gallons of spirits per calendar year, the proprietor shall first 
furnish a bond and obtain an amended permit by filing application under 
Sec.  19.914 or Sec.  19.915, as applicable. Information filed with the 
original application for permit need not be resubmitted, but may be 
incorporated by reference in the new application.
    (b) Medium plants. Where the proprietor of a medium plant intends to 
increase production (including receipts) above 500,000 proof gallons of 
spirits per calendar year, the proprietor shall first obtain an amended 
permit by filing an application under Sec.  19.915. A new or 
strengthening bond may be required (see Sec.  19.956). Information 
already on file may be incorporated by reference in the new application.
    (c) Curtailment of activities. Proprietors of large or medium plants 
who have curtailed operations to a level where they are eligible to be 
requalified as medium or small plants may, on approval of a letter of 
application by the appropriate TTB officer, be relieved from the 
additional requirements incident to their original qualification. In the 
case of a change to small plant status, termination of the bond and 
relief of the surety from further liability shall be as provided in 
subpart H of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.922  Change in name of proprietor.

    Where there is to be a change in the individual, firm, or corporate 
name, the proprietor shall, within 30 days of the change, file an 
application to amend the permit; a new bond or consent of surety is not 
required.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271); sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 
U.S.C. 5181))



Sec.  19.923  Changes in officers, directors, or principal persons.

    Where there is any change in the list of officers, directors, or 
principal persons, furnished under the provisions of Sec.  19.914, Sec.  
19.915 or Sec.  19.916, the proprietor shall submit, within 30 days of 
any such change, a notice in letter form stating the changes in 
officers, directors, or principal persons. A new list reflecting the 
changes will be submitted with the letter notice.

(Sec. 232, Pub. L. 96-233, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.924  Change in proprietorship.

    (a) General. If there is a change in the proprietorship of a plant 
qualified under this part, the outgoing proprietor shall comply with the 
requirements of Sec.  19.945 and the successor shall, before commencing 
operations, apply for and obtain a permit and file the required bond (if 
any) in the same manner as a person qualifying as the proprietor of a 
new plant.
    (b) Fiduciary. A successor to the proprietorship of a plant who is 
an administrator, executor, receiver, trustee, assignee or other 
fiduciary, shall comply with the applicable provisions of Sec.  
19.186(b).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172))



Sec.  19.925  Continuing partnerships.

    If under the laws of the particular State, the partnership is not 
immediately terminated on death or insolvency of a partner, but 
continues until the winding up of the partnership affairs is completed, 
and the surviving partner has the exclusive right to the control and 
possession of the partnership assets for the purpose of liquidation and 
settlement, the surviving partner may continue to operate the plant 
under the prior qualification of the partnership. However, in the case 
of a large or a medium plant, a consent of surety must be filed, wherein 
the

[[Page 479]]

surety and the surviving partner agree to remain liable on the bond. If 
the surviving partner acquires the business on completion of the 
settlement of the partnership, he shall qualify in his own name from the 
date of acquisition, as provided in Sec.  19.924(a). The rule set forth 
in this section will also apply where there is more than one surviving 
partner.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended (26 U.S.C. 5172); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.926  Change in location.

    Where there is a change in the location of the plant or of the area 
included within the plant premises, the proprietor shall file an 
application to amend the permit and, if a bond is required, either a new 
bond or a consent of surety on Form 1533 (5000.18). Operation of the 
plant may not be commenced at the new location prior to issuance of the 
amended permit.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271); sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 
U.S.C. 5173); sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))

                          Alternate Operations



Sec.  19.930  Alternating proprietorship.

    (a) General. (1) An alcohol fuel plant, or a part thereof, may be 
operated alternately by proprietors if--
    (i) The alcohol fuel plant and the proprietors are otherwise 
qualified under the provisions of this subpart, and
    (ii) The necessary operations bonds (if any) and applications 
covering such operations have been filed with and approved by the 
appropriate TTB officer.
    (2) Where alternating proprietorship is to be limited to a part of a 
plant, that part must be suitable for qualification as a separate plant.
    (b) Qualifying Documents. Each person desiring to operate an alcohol 
fuel plant as an alternating proprietor shall file with the appropriate 
TTB officer:
    (1) An application on Form 5110.74 to cover the proposed alternation 
of premises.
    (2) Diagram of premises, in duplicate, showing the arrangement under 
which the premises will be operated. Diagrams will be prepared in 
accordance with paragraph (c) of this section.
    (3) Evidence of existing operations bond (if any), consent of 
surety, or a new operations bond to cover the proposed alternation of 
premises.
    (4) When required by the appropriate TTB officer, additional 
information as may be necessary to determine whether the application 
should be approved.
    (c) Diagram of premises. Each person filing an application for 
operation of a plant as an alternating proprietor shall submit a diagram 
of the premises. Where operations by alternating proprietors are limited 
to parts of a plant, a diagram which designates the parts of the plant 
that are to be alternated will be submitted. A diagram will be submitted 
for each arrangement under which the premises will be operated. The 
diagram will be in sufficient detail to establish the boundaries of the 
plant or any part thereof which is to be alternated.
    (d) Alternation Journal. Once the applications have been approved 
and initial operations conducted thereunder, the plant, or parts 
thereof, may be alternated. The outgoing and incoming proprietor shall 
enter into an alternation journal the following information:
    (1) Name or trade name;
    (2) Alcohol fuel plant permit number;
    (3) Date and time of alternation; and
    (4) Quantity of spirits transferred in proof gallons.

The alternation journal will remain in the possession of the incoming 
proprietor until the premises are again alternated whereupon it will be 
transferred to the new incoming proprietor.
    (e) Commencement of operations. Except for spirits transferred to 
the incoming proprietor, the outgoing proprietor shall remove all 
spirits from areas, rooms, or buildings to be alternated, prior to the 
effective date and time shown in the alternation journal. Fuel alcohol 
may be either transferred to the incoming proprietor or may be retained 
by the outgoing proprietor in areas, rooms, or buildings to be 
alternated when the areas, rooms, or buildings are secured with locks, 
the keys to which are in the custody of the outgoing proprietor. 
Whenever operation of the areas, rooms, or buildings is to

[[Page 480]]

be resumed by a proprietor following suspension of operations by an 
alternating proprietor, the outgoing proprietor (except proprietors of 
small plants) must furnish a consent of surety on Form 1533 (5000.18) to 
continue in effect the operations bond covering his operations. This is 
to be done prior to alternating the premises.
    (f) Records. Each proprietor shall maintain separate records and 
submit separate reports. All transfers of spirits will be reflected in 
the records of each proprietor. The quantity of spirits and fuel alcohol 
transferred will be shown in the production and disposition records of 
the outgoing proprietor. The quantity of spirits transferred will be 
shown in the receipt record of the incoming proprietor. Each outgoing 
and incoming proprietor shall include spirits transferred in 
determinations of plant size and bond amounts. The provisions of Sec.  
19.921 regarding change in type of plant are applicable to each 
proprietor. Entries into these records will be in the manner prescribed 
in Sec. Sec.  19.982, 19.984, and 19.986.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271; sec. 805(a), Pub. 96-39, 93 Stat. 275 (26 U.S.C. 
5171); sec. 232 Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))

                  Permanent Discontinuance of Business



Sec.  19.945  Notice of permanent discontinuance.

    A proprietor who permanently discontinues operations as an alcohol 
fuel plant shall, after completion of the operations, file a letterhead 
notice with the appropriate TTB officer. The notice shall be 
accompanied--
    (a) By the alcohol fuel producer's permit, and by the proprietor's 
request that such permit be canceled;
    (b) By a written statement disclosing, as applicable, whether (1) 
all spirits (including fuel alcohol) have been lawfully disposed of, and 
(2) any spirits are in transit to the premises; and
    (c) By a report covering the discontinued operations (the report 
shall be marked ``Final Report'').

(Sec. 201, Pub. L. 85-859, 72 Stat. 1349, as amended, 1370, as amended 
(26 U.S.C. 5172, 5271); sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 
U.S.C. 5181))

                   Suspension or Revocation of Permits



Sec.  19.950  Suspension or revocation.

    Whenever the appropriate TTB officer has reason to believe that any 
person holding an alcohol fuel producer's permit--
    (a) Has not in good faith complied with the applicable provisions of 
26 U.S.C. Chapter 51, or regulations issued thereunder; or
    (b) Has violated conditions of the permit; or
    (c) Has made any false statements as to any material fact in the 
application therefor; or
    (d) Has failed to disclose any material information required to be 
furnished; or
    (e) Has violated or conspired to violate any law of the United 
States relating to intoxicating liquor or has been convicted of any 
offense under Title 26, U.S.C. punishable as a felony or of any 
conspiracy to commit such offense; or
    (f) Has not engaged in any of the operations authorized by the 
permit for a period of more than 2 years; the appropriate TTB officer 
may institute proceedings for the revocation or suspension of the permit 
in accordance with the procedures set forth in 27 CFR part 71.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))

                                  Bonds



Sec.  19.955  Bonds.

    An operations bond is required for medium and large plants. The bond 
will be executed, in duplicate, on Form 5110.56. Surety bonds may be 
given only with corporate sureties holding certificates of authority 
from, and subject to the limitations prescribed by, the Secretary as set 
forth in the current revision of Treasury Department Circular 570. 
However, in lieu of corporate surety the proprietor may pledge and 
deposit as surety for his bond, securities

[[Page 481]]

which are transferable and are guaranteed as to both interest and 
principal by the United States, in accordance with the provisions of 31 
CFR part 225. The appropriate TTB officer will not release such 
securities until liability under the bond for which they were pledged 
has been terminated.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173); CH. 390, 
Pub. L. 80-280, 61 Stat. 648, 650 (31 U.S.C. 9301, 9303, 9304, 9306); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.956  Amount of bond.

    The penal sum of the bond is based on the total quantity of 
distilled spirits to be produced (including receipts) during a calendar 
year. If the level of production and/or receipts at the plant is to be 
increased, and the bond is not in the maximum penal sum, a new or 
strengthening bond shall be obtained.
    (a) Medium plants. A medium plant which will produce (including 
receipts) between 10,000 and 20,000 proof gallons of spirits per year 
requires a bond in the amount of $2,000. For each additional 10,000 
proof gallons (or fraction thereof), the bond amount is increased 
$1,000. The maximum bond for a medium plant is $50,000.
    (b) Large plants. The minimum bond for a large plant is $52,000 
(more than 500,000, but not more than 510,000 proof gallons annual 
production (including receipts)). For each additional 10,000 (or 
fraction) proof gallons, the amount of the bond is increased $2,000. The 
maximum bond for a large plant is $200,000 (more than 1,240,000 proof 
gallons).

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173); sec. 232, 
Pub. L. 96-233, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.957  Instructions to compute bond penal sum.

    (a) Medium plants. To find the required amount of your bond, 
estimate the total proof gallons of spirits to be produced and received 
in a calendar year. The amount of the bond is $1,000 for each 10,000 
proof gallons (or fraction), subject to a minimum of $2,000 and a 
maximum of $50,000. The following table provides some examples:

             Annual Production and Receipts in Proof Gallons
------------------------------------------------------------------------
                                                       But not   Amount
                      More than                         over     of bond
------------------------------------------------------------------------
10,000..............................................    20,000    $2,000
20,000..............................................    30,000     3,000
90,000..............................................   100,000    10,000
190,000.............................................   200,000    20,000
490,000.............................................   500,000    50,000
------------------------------------------------------------------------

    (b) Large plants. To find the required amount of your bond, estimate 
the total proof gallons of spirits to be produced and received in a 
calendar year. The amount of the bond is $50,000 plus $2,000 for each 
10,000 proof gallons (or fraction) over 500,000. The following table 
provides some examples:

             Annual Production and Receipts in Proof Gallons
------------------------------------------------------------------------
                                                      But not    Amount
                     More than                          over     of bond
------------------------------------------------------------------------
500,000............................................    510,000   $52,000
510,000............................................    520,000    54,000
740,000............................................    750,000   100,000
990,000............................................  1,000,000   150,000
1,240,000..........................................  .........   200,000
------------------------------------------------------------------------


(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173; sec. 232, 
Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.958  Conditions of bond.

    The bond shall be conditioned on payment of all taxes (including any 
penalties and interest) imposed by 26 U.S.C. Chapter 51, on compliance 
with all requirements of law and regulations, and on payment of all 
penalties incurred or fines imposed for violations of any such 
provisions.

(Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173); sec. 232, 
Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.959  Additional provisions with respect to bonds.

    Subpart H of this part contains further provisions applicable to 
bonds which, where not inconsistent with this subpart, are applicable to 
bonds of alcohol fuel plants.

[[Page 482]]

                  Construction, Equipment and Security



Sec.  19.965  Construction and equipment.

    Buildings and enclosures where distilled spirits will be produced, 
processed, or stored shall be constructed and arranged to enable the 
proprietor to maintain security adequate to deter diversion of the 
spirits. Distilling equipment shall be constructed to prevent 
unauthorized removal of spirits, from the point where distilled spirits 
come into existence until production is complete and the quantity of 
spirits has been determined. Tanks and other vessels for containing 
spirits shall be equipped for locking and be constructed to allow for 
determining the quantities of spirits therein.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178))



Sec.  19.966  Security.

    Proprietors shall provide security adequate to deter the 
unauthorized removal of spirits. The proprietor shall store spirits 
either in a building, a storage tank, or within an enclosure, which the 
proprietor will keep locked when operations are not being conducted.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178); 
sec. 806, Pub. L. 96-39, 93 Stat. 279 (26 U.S.C. 5202))



Sec.  19.967  Additional security.

    If the appropriate TTB officer finds that security is inadequate to 
deter diversion of the spirits, as may be evidenced by the occurrence of 
break-ins or by diversion of spirits to unauthorized purposes, 
additional security measures may be required. Such additional measures 
may include, but are not limited to, the following:
    (a) The erection of a fence around the plant or the alcohol storage 
facility;
    (b) Flood lights;
    (c) Alarm systems;
    (d) Watchman services; or,
    (e) Locked or barred windows.

The exact additional security requirements would depend on the extent of 
the security problems, the volume of alcohol produced, the risk to tax 
revenue, and safety requirements.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1353, as amended (26 U.S.C. 5178); 
sec. 806, Pub. L. 96-39, 93 Stat. 279 (26 U.S.C. 5202))

                               Supervision



Sec.  19.970  Supervision of operations.

    The appropriate TTB officer may assign appropriate TTB officers to 
premises of plants qualified under this subpart. The authorities of 
appropriate TTB officers, provided in Sec. Sec.  19.81 through 19.84, 
and the requirement that proprietors furnish facilities and assistance 
to appropriate TTB officers, provided in Sec.  19.86, apply to plants 
qualified under this subpart. The provisions of Sec.  19.75 of this part 
pertaining to the assignment of appropriate TTB officers and hours of 
operation, to the extent deemed necessary by the appropriate TTB 
officer, are applicable to plants qualified under this subpart.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1320, as amended, 1356, as amended, 
1357, as amended, 1358, as amended, 1375, as amended, 1396, as amended 
(26 U.S.C. 5006, 5201, 5203, 5204, 5213, 5555); sec. 806, Pub. L. 96-39, 
93 Stat. 279 (26 U.S.C. 5202); sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 
U.S.C. 5207))

                         Accounting for Spirits



Sec.  19.980  Gauging.

    (a) Equipment and method. Proprietors shall gauge spirits by 
accurately determining the proof and quantity of spirits. The proof of 
the spirits shall be determined using a glass cylinder, hydrometer, and 
thermometer. Proprietors may account for fuel alcohol in wine gallons. 
Unless proprietors desire to do so, it is not necessary to determine the 
proof of fuel alcohol manufactured, on-hand, or removed. The Proprietor 
may determine quantity either by volume or weight. A tank or receptacle 
with a calibrated sight glass installed, a calibrated dipstick, 
conversion charts, meters (subject to approval by the appropriate TTB 
officer, or other devices or methods approved by the appropriate TTB 
officer, may be used to determine quantity by volume. The proprietor 
shall ensure that hydrometers, thermometers, and other equipment used to 
determine proof, volume, or weight are accurate. From

[[Page 483]]

time to time appropriate TTB officers shall verify the accuracy of such 
equipment. Detailed procedures for gauging spirits are provided in 27 
CFR part 30.
    (b) When Required. Proprietors shall guage spirits and record the 
results in their records at the following times:
    (1) On completion of production of distilled spirits;
    (2) On receipt of spirits at the plant;
    (3) Prior to the addition of materials to render the spirits unfit 
for beverage use;
    (4) Before withdrawal from plant premises or other disposition of 
spirits (including fuel alcohol); and
    (5) When spirits are to be inventoried.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended, 1358, as amended 
(26 U.S.C. 5201, 5204))



Sec.  19.981  Inventories.

    Proprietors shall take actual physical inventory of all spirits 
(including fuel alcohol) on bonded premises at least once during each 
period for which a report is required by Sec.  19.988. The results of 
the inventory shall be posted in the applicable records required by 
Sec.  19.982.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201))



Sec.  19.982  Records.

    (a) All plants. All proprietors shall maintain records with respect 
to: (1) The quantity and proof of spirits produced; (2) The proof 
gallons of spirits on-hand and received; (3) The quantities and types of 
materials added to render the spirits unfit for beverage use; (4) The 
quantity of fuel alcohol manufactured; and, (5) All dispositions of 
spirits (including fuel alcohol). Fuel alcohol may be recorded in wine 
gallons.
    (b) Medium and large plants. Proprietors of medium and large plants 
shall also record the kind and quantity of materials used to produce 
spirits.
    (c) General requirements. (1) The records must contain sufficient 
information to allow appropriate TTB officers to determine the 
quantities of spirits produced, received, stored, or processed and to 
verify that all spirits have been lawfully disposed of or used.
    (2) Records which the proprietor prepares for other purposes (i.e. 
invoices or other commercial records) may be used to meet the record 
requirements of this subpart, so long as they show the required 
information.
    (3) Where the format or arrangement of the record is such that the 
information is not clearly or accurately reflected, the appropriate TTB 
officer may require a format or arrangement which will clearly and 
accurately reflect the information.
    (4) Entries required by this subpart to be made into records will be 
made on the day on which the operation or transaction occurs. However, 
these entries may be deferred until the third business day succeeding 
the day on which the operation or transaction occurs when the proprietor 
prepares commercial records concurrent with the individual operation or 
transaction.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.983  Spirits rendered unfit for beverage use in the production process.

    Where spirits are rendered unfit for beverage use before removal 
from the production system, the proprietor shall enter into the 
production records, in addition to the quantity and proof of spirits 
produced, the kind and quantity of materials added to each lot of 
spirits. In such a case, a separate record under Sec.  19.985 is not 
required. The quantity of spirits produced will be determined by 
substracting the quantity of materials added to render the spirits unfit 
for beverage use from the quantity of fuel alcohol produced and 
multiplying the resulting figure by the proof of each lot of spirits. 
The proprietor shall determine the proof of each lot of spirits. The 
proprietor shall procure a representative sample of each lot, prior to 
the addition of any material for rendering the spirits unfit for 
beverage use, and proof the sample in accordance with the provisions of 
Sec.  19.980(a). This paragraph applies to in-line addition of materials 
and to systems in which, before any spirits come off the production 
equipment, the proprietor adds materials for rendering the spirits

[[Page 484]]

unfit for beverage use to the first receptacle where spirits are to be 
deposited.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); sec. 232, Pub. 
L. 96-222, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.984  Record of spirits received.

    The proprietor's copy of the consignor's invoice or other document 
received with the shipment, on which the proprietor has noted the date 
of receipt and quantity received, constitutes the required record.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.985  Record of spirits rendered unfit for beverage use.

    The proprietor shall record the kind and quantity of materials added 
to render each lot of spirits unfit for beverage use and the quantity of 
fuel alcohol manufactured (which may be given in wine gallons).

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.986  Record of dispositions.

    (a) Fuel alcohol removed. For fuel alcohol removed from the plant 
premises, the commercial record or other document required by Sec.  
19.997 constitutes the required record.
    (b) Spirits transferred. For spirits transferred in bond (including 
transfers from small plants) to a distilled spirits plant qualified 
under subpart G of this part or to another alcohol fuel plant, the 
commercial invoice or other document required by Sec. Sec.  19.508 and 
19.999 constitutes the required record.
    (c) Other dispositions. For spirits or fuel alcohol used or 
otherwise disposed of (e.g., lost, destroyed, redistilled) on the 
premises of the alcohol fuel plant, the proprietor shall maintain a 
record as follows:
    (1) The quantity of spirits (in proof gallons) or fuel alcohol (in 
gallons) and the date of disposition; and,
    (2) The purpose for which used or the nature of the other 
disposition.
    (d) Separate records. Records for dispositions of fuel alcohol and 
spirits will be maintained separately.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); sec. 232, Pub. 
L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.987  Maintenance and retention of records.

    The proprietor shall retain at the plant where an operation or 
transaction occurs the records required by this subpart for a period of 
not less than three years from the date thereof or from the date of the 
last entry made thereon, whichever is later. Whenever any record because 
of its condition becomes unsuitable for its intended or continued use 
the proprietor shall reproduce the record by a process approved by the 
appropriate TTB officer under the provisions of Sec.  19.725. The 
records shall be available for inspectin by any appropriate TTB officer 
during business hours. For records maintained on data processing 
equipment, the provisions of Sec.  19.723 apply.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))



Sec.  19.988  Reports.

    Each proprietor shall submit an annual report of their operations, 
Form 5110.75, for the calendar year ending December 31. The proprietor 
shall submit this report to the appropriate TTB officer by January 30 
following the end of the calendar year.

(Sec. 807, Pub. L. No. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-327, 57 FR 32178, July 21, 1992]

                             Redistillation



Sec.  19.990  Redistillation of spirits or fuel alcohol received on the plant premises.

    (a) Receipts for redistillation. Proprietors of alcohol fuel plants 
may receive and redistill spirits. Fuel alcohol may be received on the 
premises of an alcohol fuel plant for the recovery by redistillation of 
the spirits contained therein. Spirits and fuel alcohol received for 
redistillation will be identified as such and will be kept separate from 
other spirits and fuel alcohol on the premises

[[Page 485]]

until redistilled. Spirits originally produced by the plant and 
subsequently recovered by redistillation will not be included in 
determinations of plant size and bond amounts. Spirits riginally 
produced at other plants and subsequently recovered by redistillation 
will be included in determinations of plant size and bond amounts.
    (b) Recordkeeping. (1) The proprietor shall record in a separate 
record the following information for spirits and fuel alcohol received 
for redistillation.
    (i) Date received;
    (ii) Whether fuel alcohol or spirits;
    (iii) Quantity received;
    (iv) From whom received;
    (v) Reason for redistillation;
    (vi) Date redistilled; and
    (vii) Quantity of spirits recovered by redistillation.
    (2) The proprietor's commercial record required for spirits by Sec.  
19.999 or for fuel alcohol by Sec.  19.997 and any other commercial 
record received covering spirits or fuel alcohol to be redistilled will 
be filed separately from other records. These records may be used in 
lieu of the record required by paragraph (b)(1) of this section when any 
missing information required to be shown has been entered upon the 
commercial record by the proprietor.
    (c) Status. Spirits recovered by redistillation will be treated the 
same as spirits which have not been redistilled. All provisions of this 
subpart and 26 U.S.C. Chapter 51 (including liability for tax) 
applicable to spirits when originally produced are applicable to spirits 
recovered by redistillation.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended, 1370, as amended 
(26 U.S.C. 5223, 5243); sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 
U.S.C. 5181))

                     Uses, Withdrawals and Transfers



Sec.  19.995  Use on premises.

    Spirits may be used as a fuel on the premises of the alcohol fuel 
plant at which produced and need not be rendered unfit for beverage use. 
Proprietors using spirits on the plant premises shall keep the 
applicable records concerning such dispositions as provided in Sec.  
19.986(c).

(Sec. 232, Pub. L. 96-223, 94 Stat. 278, (26 U.S.C. 5181))



Sec.  19.996  Withdrawal of spirits.

    Before spirits may be withdrawn from the premises of an alcohol fuel 
plant, they must be rendered unfit for beverage use as provided in this 
subpart. Spirits rendered unfit for beverage use (fuel alcohol) may be 
withdrawn free of tax from plant premises exclusively for fuel use.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.997  Withdrawal of fuel alcohol.

    For each shipment or other removal of fuel alcohol from the plant 
premises the consignor shall prepare a commercial invoice, sales slip, 
or similar document. The consignor shall enter on the document the date, 
the quantity of fuel alcohol removed, a description of the shipment (for 
example, number and size of containers, tank truck, etc.), and the name 
and address of the consignee. The consignor shall retain a copy of the 
document as a record.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.998  Transfer in bond of spirits.

    (a) Transfer between alcohol fuel plants. A proprietor may remove 
spirits from the bonded premises of an alcohol fuel plant (including the 
premises of a small plant) for transfer in bond to another alcohol fuel 
plant. Bulk conveyances in which spirits are transferred shall be 
secured with locks, seals or other devices as prescribed by Sec.  19.96. 
The spirits need not be rendered unfit for beverage use prior to 
transfer. Spirits so transferred may not be withdrawn, used, sold, or 
otherwise disposed of for other than fuel use.
    (b) Transfer to or from other distilled spirits plants. Spirits (not 
including spirits produced from petroleum, natural gas, or coal) may be 
transferred in bond from distilled spirits plants qualified under 
subpart G of this part to alcohol fuel plants. Alcohol fuel plants may 
transfer spirits in bond to distilled spirits plants qualified under 
subpart G of this part. Bulk conveyances in which spirits are 
transferred shall be secured with locks, seals, or other devices as 
prescribed by Sec.  19.96. The spirits need not be rendered unfit for 
beverage use

[[Page 486]]

prior to transfer. Spirits so transferred may not be withdrawn, used, 
sold, or otherwise disposed of for other than fuel use.
    (c) Transfer procedures. The procedures in Sec. Sec.  19.999 through 
19.1001 pertain only to the transfer of spirits between alcohol fuel 
plants. The procedures in Sec. Sec.  19.506 through 19.509 and 19.770 
pertain to the transfer of spirits from an alcohol fuel plant to a 
distilled spirits plant qualified under 26 U.S.C. 5171. The alcohol fuel 
plant transferring in bond spirits filled into portable containers to 
the bonded premises of a distilled spirits plant qualified under 26 
U.S.C. 5171 shall mark each container as required by Sec.  19.1008(b). 
The procedures in Sec. Sec.  19.508, 19.510 and 19.770 pertain to the 
transfer of spirits from a distilled spirits plant to an alcohol fuel 
plant.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5212); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.999  Consignor premises.

    The consignor shall prepare, in duplicate, a commerical invoice or 
shipping document to cover each shipment of spirits. The consignor shall 
enter on the document the quantity of spirits transferred, the proof of 
the spirits transferred, a description of the shipment (for example, 
number and size of drums or barrels, tank truck, etc.), the name, 
address, and permit number of the consignor and of the consignee, and 
the serial numbers of seals, locks, or other devices used to secure the 
conveyance. The consignor shall forward the original of the document to 
the consignee with the shipment and retain the copy as a record.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5212))



Sec.  19.1000  Reconsignment in transit.

    When, prior to or on arrival at the premises of a consignee, spirits 
transferred in bond are found to be unsuitable for the intended purpose, 
were shipped in error, or, for any other bona fide reason, are not 
accepted by such consignee, or are not accepted by a carrier, they may 
be reconsigned, by the consignor, to himself, or to another qualified 
consignee. In such case, the bond, if any, of the proprietor to whom the 
spirits are reconsigned shall cover such spirits while in transit after 
reconsignment. In addition, if the spirits are reconsigned to a 
distilled spirits plant qualified under subpart G of this part, an 
application to receive spirits by transfer in bond (on Form 5100.16) 
must have been previously approved for the consignee. Notice of 
cancellation of the shipment shall be made by the consignor to the 
consignee and the consignor shall note the reconsignemnt on his copy of 
the document covering the original shipment. Where the reconsignment is 
to another proprietor, a new document shall be prepared and prominently 
marked with the word ``Reconsignment''.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, (26 U.S.C. 5212); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.1001  Consignee premises.

    (a) General. When spirits are received by transfer in bond, the 
proprietor shall examine each conveyance to determine whether the locks, 
seals, or other devices are intact upon arrival at his premises. If the 
locks, seals or other devices are not intact, he shall immediately 
notify the appropriate TTB officer, before removal of any spirits from 
the conveyance. The consignee shall determine the quantity of spirits 
received and record the quantity and the date received on the document 
received with the shipment. The consignee shall retain the document as 
the record of receipt required by Sec.  19.984.
    (b) Portable containers. When spirits are received in barrels, 
drums, or similar portable containers, the proprietor shall examine each 
container and, unless the transfer was made in a secured conveyance and 
the seals or other devices are intact on arrival, verify the contents of 
each container. The proprietor shall record the quantity received for 
each container on a list, and shall attach a copy of the list to the 
invoice or other document received with the shipment.
    (c) Bulk conveyances and pipelines. When spirits are received in 
bulk conveyances or by pipeline, the consignee shall gauge the spirits 
received and

[[Page 487]]

shall record the quantity so determined on the invoice or other document 
received with shipment. However, the appropriate TTB officer may waive 
the requirement for gauging spirits on receipt by pipeline if, because 
of the location of the premises, there will be no jeopardy to the 
revenue.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5204, 5212); sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 
U.S.C. 5181))



Sec.  19.1002  Prohibited uses, transfers, and withdrawals.

    No person shall withdraw, use, sell, or otherwise dispose of 
distilled spirits (including fuel alcohol) produced under this subpart 
for other than fuel use. The law imposes criminal penalties on any 
person who withdraws, uses, sells or otherwise disposes of distilled 
spirits (including fuel alcohol) produced under this subpart for other 
than fuel use.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1398, as amended (26 U.S.C. 5601); 
sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))

         Materials for Rendering Spirits Unfit for Beverage Use



Sec.  19.1005  Authorized materials.

    (a) General. The appropriate TTB officer shall determine and 
authorize for use materials for rendering spirits unfit for beverage use 
which will not impair the quality of the spirits for fuel use. Spirits 
treated under this section will be considered rendered unfit for 
beverage use and eligible for withdrawal as fuel alcohol.
    (b) List. The appropriate TTB officer will compile and issue 
periodically a list of materials authorized for rendering spirits unfit 
for beverage use. The list will specify for each material (1) name and 
(2) quantity required to render spirits unfit for beverage use. The list 
may be obtained by accessing the TTB Web site (http://www.ttb.gov).
    (c) Authorized material. Until issuance of the initial list of 
materials authorized for rendering spirits unfit for beverage use, 
proprietors are authorized to add to each 100 gallons of spirits any of 
the following materials in the quantities specified.
    (1) 2 gallons or more of--
    (i) Gasoline or automotive gasoline (for use in engines which 
require unleaded gasoline Environmental Protection Agency and 
manufacturers specifications may require that unleaded gasoline be used 
to render the spirits unfit for beverage use).
    (ii) Kerosene,
    (iii) Deodorized kerosene,
    (iv) Rubber hydrocarbon solvent,
    (v) Methyl isobutyl ketone,
    (vi) Mixed isomers of nitropropane,
    (vii) Heptane, or,
    (viii) Any combination of (i) through (vii); or
    (2) \1/8\ ounce of denatonium benzoate N.F. and 2 gallons of 
isopropyl alcohol.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-249, 52 
FR 5961, Feb. 27, 1987; T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]



Sec.  19.1006  Other materials.

    If a proprietor desires to use a material not authorized under Sec.  
19.1005 to render spirits unfit for beverage use, the proprietor shall 
submit an application to the appropriate TTB officer. The application 
must state the name of the material and the quantity of material that 
the proprietor proposes to add to each 100 gallons of spirits. The 
proprietor may be required to submit an 8 ounce sample of the material 
with the application. Material that impairs the quality of the spirits 
for fuel use will not be approved. The proprietor shall not use any 
proposed material prior to its approval. Materials approved for use 
under this section will appear in the next subsequent issuance of the 
list of materials authorized for rendering spirits unfit for beverage 
use provided for under Sec.  19.1005. The proprietor shall retain as 
part of the records available for inspection by appropriate TTB 
officers, any application approved by the appropriate TTB officer under 
the provisions of this section.

(Sec. 232, Pub. L. 96-233, 94 Stat. 278 (26 U.S.C. 5181))



Sec.  19.1007  Samples.

    A proprietor may take samples of spirits and fuel alcohol for 
testing and analysis. Samples of spirits may not be

[[Page 488]]

removed from the premises of the alcohol fuel plant. Samples of fuel 
alcohol may be removed from the premises of the alcohol fuel plant to a 
bona fide laboratory for testing and analysis. The proprietor shall 
indicate on sample containers that the spirits or fuel alcohol contained 
therein is a sample. The proprietor shall account for samples in the 
record provided for in Sec.  19.986.

(Sec. 232, Pub. L. 96-223, 94 Stat. 278 (26 U.S.C. 5181))

                                  Marks



Sec.  19.1008  Marks.

    (a) Fuel alcohol. The proprietor shall conspicuously and permanently 
mark or securely label each container of fuel alcohol containing 55 
gallons or less that will be withdrawn from the plant premises, as 
follows:

                                 WARNING

                              FUEL ALCOHOL

                  MAY BE HARMFUL OR FATAL IF SWALLOWED


The mark or label shall be placed on the head or side of the container, 
and shall be in plain legible letters. Proprietors may place other marks 
or labels on containers so long as they do not obscure the required 
mark.
    (b) Spirits. When barrels, drums or similiar portable containers of 
spirits are to be transferred by a proprietor to a distilled spirits 
plant qualified under subpart G of this part, each container will be 
marked or labeled in plain legible letters on the side or head to show 
the following information:
    (1) Quantity in wine gallons;
    (2) Proof;
    (3) Serial number of container;
    (4) Name, address (city or town and State) and permit number of the 
alcohol fuel plant; and
    (5) The words ``Spirits-For Alcohol Fuel Use Only''.

Proprietors may place other marks or labels on such containers so long 
as they do not obscure the required mark. Serial numbers will be 
assigned consecutively commencing with ``1''. When the numbering of any 
series reaches ``1,000,000'', the proprietor may recommence the series. 
The recommenced series will be given an alphabetical prefix or suffix. 
Where there is a change in proprietorship, or in the individual, firm, 
corporate name or trade name, the series in use at the time of the 
change may be continued.

(Sec. 232, Pub. L. 96-233, 94 Stat. 278, (26 U.S.C. 5181); sec. 201, 
Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



                    Subpart Z_Paperwork Reduction Act



Sec.  19.1010  OMB control numbers assigned pursuant to the Paperwork Reduction Act.

    (a) Purpose. This subpart displays the control numbers assigned to 
information collection requirements in this part by the Office of 
Management and Budget pursuant to the Paperwork Reduction Act of 1980, 
Pub. L. 96-511. The Department intends that this subpart comply with the 
requirements of section 3507(f) of the Paperwork Reduction Act, which 
requires that agencies display a current control number assigned by the 
Director of the Office of Management and Budget for each agency 
information collection requirement.
    (b) Display.

------------------------------------------------------------------------
                                                             Current OMB
                 Section where identified                    control No.
------------------------------------------------------------------------
19.21.....................................................     1512-0203
19.34.....................................................     1512-0203
19.35.....................................................     1512-0198
                                                               1512-0203
19.36.....................................................     1512-0203
19.37.....................................................     1512-0203
19.38.....................................................     1512-0203
19.41.....................................................     1512-0141
                                                               1512-0203
19.42.....................................................     1512-0141
                                                               1512-0203
19.43.....................................................     1512-0141
                                                               1512-0203
19.44.....................................................     1512-0141
                                                               1512-0203
19.45.....................................................     1512-0203
19.46.....................................................     1512-0203
19.62.....................................................     1512-0206
19.66.....................................................     1512-0206
19.67.....................................................     1512-0206
19.68.....................................................     1512-0462
19.71.....................................................     1512-0206
19.72.....................................................     1512-0206
19.73.....................................................     1512-0206
19.75.....................................................     1512-0206
19.91.....................................................     1512-0206
                                                               1512-0250
19.92.....................................................     1512-0250
19.93.....................................................     1512-0250
19.96.....................................................     1512-0206
19.98.....................................................     1512-0206
19.99.....................................................     1512-0206

[[Page 489]]

 
19.133....................................................     1512-0206
19.134....................................................     1512-0206
19.151....................................................     1512-0206
19.152....................................................     1512-0206
19.153....................................................     1512-0206
19.154....................................................     1512-0206
19.155....................................................     1512-0206
19.157....................................................     1512-0195
19.158....................................................     1512-0195
19.159....................................................     1512-0195
19.162....................................................     1512-0195
19.165....................................................     1512-0195
19.166....................................................     1512-0206
19.167....................................................     1512-0206
19.168....................................................     1512-0206
19.170....................................................     1512-0206
19.180....................................................     1512-0206
19.182....................................................     1512-0206
19.183....................................................     1512-0195
19.184....................................................     1512-0206
19.185....................................................     1512-0206
19.186....................................................     1512-0206
19.187....................................................     1512-0206
19.189....................................................     1512-0206
19.190....................................................     1512-0206
19.191....................................................     1512-0206
19.192....................................................     1512-0206
19.193....................................................     1512-0206
19.201....................................................     1512-0202
                                                               1512-0206
19.202....................................................     1512-0202
                                                               1512-0206
19.203....................................................     1512-0202
                                                               1512-0206
19.204....................................................     1512-0202
                                                               1512-0206
19.205....................................................     1512-0202
                                                               1512-0206
19.206....................................................     1512-0206
19.211....................................................     1512-0206
19.249....................................................     1512-0206
19.250....................................................     1512-0206
19.251....................................................     1512-0206
19.273....................................................     1512-0250
19.274....................................................     1512-0460
19.276....................................................     1512-0250
19.277....................................................     1512-0206
19.278....................................................     1512-0460
19.280....................................................     1512-0460
19.281....................................................     1512-0206
19.311....................................................     1512-0202
19.312....................................................     1512-0205
19.314....................................................     1512-0205
19.315....................................................     1512-0205
19.316....................................................     1512-0205
19.318....................................................     1512-0250
19.319....................................................     1512-0250
19.320....................................................     1512-0192
                                                               1512-0250
19.321....................................................     1512-0250
19.322....................................................     1512-0250
19.324....................................................     1512-0204
                                                               1512-0206
19.326....................................................     1512-0205
19.327....................................................     1512-0205
                                                               1512-0461
19.329....................................................     1512-0250
19.342....................................................     1512-0192
                                                               1512-0250
19.343....................................................     1512-0250
19.344....................................................     1512-0192
                                                               1512-0250
19.345....................................................     1512-0461
19.347....................................................     1512-0192
19.349....................................................     1512-0192
19.353....................................................     1512-0250
19.372....................................................     1512-0198
19.373....................................................     1512-0198
19.382....................................................     1512-0206
19.383....................................................     1512-0198
19.384....................................................     1512-0198
19.385....................................................     1512-0461
19.386....................................................     1512-0198
                                                               1512-0461
19.387....................................................     1512-0198
19.388....................................................     1512-0461
19.389....................................................     1512-0198
19.390....................................................     1512-0198
                                                               1512-0250
                                                               1512-0461
19.391....................................................     1512-0198
19.392....................................................     1512-0198
19.393....................................................     1512-0198
19.394....................................................     1512-0189
                                                               1512-0461
19.395....................................................     1512-0461
19.396....................................................     1512-0461
19.397....................................................     1512-0189
                                                               1512-0190
                                                               1512-0199
                                                               1512-0461
19.398....................................................     1512-0189
                                                               1512-0461
19.400....................................................     1512-0198
19.401....................................................     1512-0250
19.402....................................................     1512-0206
                                                               1512-0250
19.451....................................................     1512-0207
19.453....................................................     1512-0207
19.454....................................................     1512-0250
19.456....................................................     1512-0206
19.457....................................................     1512-0207
19.458....................................................     1512-0207
19.460....................................................     1512-0206
19.461....................................................     1512-0206
19.462....................................................     1512-0250
19.463....................................................     1512-0461
19.464....................................................     1512-0250
19.467....................................................     1512-0141
19.471....................................................     1512-0207
                                                               1512-0461
19.483....................................................     1512-0192
19.484....................................................     1512-0250
                                                               1512-0461
19.485....................................................     1512-0461
19.487....................................................     1512-0203
19.501....................................................     1512-0250
19.502....................................................     1512-0250
19.503....................................................     1512-0250
19.505....................................................     1512-0191
                                                               1512-0250
19.508....................................................     1512-0250
                                                               1512-0461
19.509....................................................     1512-0191
                                                               1512-0250
19.510....................................................     1512-0061
                                                               1512-0250
19.515....................................................     1512-0203
19.516....................................................     1512-0203
19.517....................................................     1512-0203
                                                               1512-0250
19.518....................................................     1512-0203
19.519....................................................     1512-0203
19.520....................................................     1512-0203
19.521....................................................     1512-0203
19.522....................................................     1512-0203

[[Page 490]]

 
19.523....................................................     1512-0203
19.524....................................................     1512-0203
19.525....................................................     1512-0203
19.526....................................................     1512-0203
19.532....................................................     1512-0250
19.533....................................................     1512-0206
19.537....................................................     1512-0067
                                                               1512-0250
19.540....................................................     1512-0067
                                                               1512-0077
                                                               1512-0250
                                                               1512-0461
19.541....................................................     1512-0067
19.561....................................................     1512-0141
19.562....................................................     1512-0141
                                                               1512-0192
                                                               1512-0206
                                                               1512-0250
19.564....................................................     1512-0141
19.565....................................................     1512-0198
                                                               1512-0203
                                                               1512-0250
19.583....................................................     1512-0461
19.587....................................................     1512-0460
19.588....................................................     1512-0460
19.592....................................................     1512-0461
19.593....................................................     1512-0461
19.594....................................................     1512-0461
19.595....................................................     1512-0461
19.596....................................................     1512-0461
19.597....................................................     1512-0206
                                                               1512-0461
19.599....................................................     1512-0461
19.601....................................................     1512-0461
19.602....................................................     1512-0461
19.604....................................................     1512-0461
19.605....................................................     1512-0189
                                                               1512-0461
19.606....................................................     1512-0461
19.607....................................................     1512-0461
19.608....................................................     1512-0461
19.610....................................................     1512-0189
19.611....................................................     1512-0198
19.633....................................................     1512-0092
19.634....................................................     1512-0206
19.635....................................................     1512-0198
19.636....................................................     1512-0198
19.638....................................................     1512-0206
19.639....................................................     1512-0198
19.640....................................................     1512-0091
19.641....................................................     1512-0204
                                                               1512-0461
19.642....................................................     1512-0461
19.643....................................................     1512-0461
19.644....................................................     1512-0461
19.645....................................................     1512-0461
19.646....................................................     1512-0461
19.647....................................................     1512-0461
19.648....................................................     1512-0461
19.649....................................................     1512-0461
19.650....................................................     1512-0461
19.661....................................................     1512-0461
19.662....................................................     1512-0461
19.663....................................................     1512-0206
19.664....................................................     1512-0056
19.666....................................................     1512-0189
19.668....................................................     1512-0189
19.669....................................................     1512-0056
                                                               1512-0189
19.670....................................................     1512-0189
19.671....................................................     1512-0189
19.672....................................................     1512-0189
19.681....................................................     1512-0141
                                                               1512-0203
19.682....................................................     1512-0203
                                                               1512-0250
19.683....................................................     1512-0250
19.684....................................................     1512-0250
19.685....................................................     1512-0067
19.686....................................................     1512-0191
                                                               1512-0250
19.687....................................................     1512-0199
19.688....................................................     1512-0250
19.691....................................................     1512-0250
19.701....................................................     1512-0206
                                                               1512-0250
19.702....................................................     1512-0250
19.703....................................................     1512-0203
19.704....................................................     1512-0461
19.721....................................................     1512-0189
                                                               1512-0192
                                                               1512-0198
                                                               1512-0203
                                                               1512-0205
                                                               1512-0207
                                                               1512-0250
19.723....................................................     1512-0189
                                                               1512-0192
                                                               1512-0198
                                                               1512-0203
                                                               1512-0205
                                                               1512-0207
                                                               1512-0250
                                                               1512-0462
19.724....................................................     1512-0206
19.725....................................................     1512-0206
19.731....................................................     1512-0189
                                                               1512-0192
                                                               1512-0198
                                                               1512-0203
                                                               1512-0205
                                                               1512-0207
                                                               1512-0250
                                                               1512-0189
19.732....................................................     1512-0192
                                                               1512-0198
                                                               1512-0203
                                                               1512-0205
                                                               1512-0207
                                                               1512-0250
19.736....................................................     1512-0205
19.740....................................................     1512-0192
19.741....................................................     1512-0192
19.742....................................................     1512-0192
19.743....................................................     1512-0192
19.747....................................................     1512-0198
19.748....................................................     1512-0198
19.749....................................................     1512-0198
19.750....................................................     1512-0198
19.751....................................................     1512-0198
19.752....................................................     1512-0207
19.753....................................................     1512-0207
19.761....................................................     1512-0203
19.762....................................................     1512-0203
19.763....................................................     1512-0203
19.764....................................................     1512-0203
19.765....................................................     1512-0203
19.766....................................................     1512-0250
19.767....................................................     1512-0250
19.768....................................................     1512-0250
19.769....................................................     1512-0250
19.770....................................................     1512-0215
                                                               1512-0250
19.772....................................................     1512-0189
19.773....................................................     1512-0198
19.774....................................................     1512-0250

[[Page 491]]

 
19.775....................................................     1512-0250
19.776....................................................     1512-0250
19.778....................................................     1512-0198
19.779....................................................     1512-0067
19.780....................................................     1512-0250
19.791....................................................     1512-0067
                                                               1512-0190
19.792....................................................     1512-0189
                                                               1512-0192
                                                               1512-0198
                                                               1512-0205
                                                               1512-0207
19.821....................................................     1512-0462
19.822....................................................     1512-0462
19.823....................................................     1512-0462
19.824....................................................     1512-0462
19.829....................................................     1512-0462
19.903....................................................     1512-0215
19.904....................................................     1512-0215
19.905....................................................     1512-0141
19.910....................................................     1512-0214
19.912....................................................     1512-0214
19.914....................................................     1512-0214
19.915....................................................     1512-0214
19.916....................................................     1512-0214
19.919....................................................     1512-0215
19.921....................................................     1512-0214
                                                               1512-0215
19.922....................................................     1512-0214
19.923....................................................     1512-0215
19.924....................................................     1512-0214
19.926....................................................     1512-0214
19.930....................................................     1512-0215
19.945....................................................     1512-0215
19.980....................................................     1512-0215
19.981....................................................     1512-0215
19.982....................................................     1512-0215
19.983....................................................     1512-0215
19.984....................................................     1512-0215
19.985....................................................     1512-0215
19.986....................................................     1512-0215
19.987....................................................     1512-0215
19.988....................................................     1512-0215
19.990....................................................     1512-0215
19.995....................................................     1512-0215
19.997....................................................     1512-0215
19.998....................................................     1512-0191
                                                               1512-0215
19.999....................................................     1512-0215
19.1000...................................................     1512-0215
19.1001...................................................     1512-0215
19.1005...................................................     1512-0215
19.1006...................................................     1512-0215
19.1007...................................................     1512-0215
19.1008...................................................     1512-0215
------------------------------------------------------------------------


[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-297, 55 
FR 18065, Apr. 30, 1990]



PART 20_DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM--Table of Contents




                             Subpart A_Scope

Sec.
20.1 General.
20.2 Territorial extent.
20.3 Related regulations.

                          Subpart B_Definitions

20.11 Meaning of terms.

                   Subpart C_Administrative Provisions

                               Authorities

20.20 Delegations of the Administrator.
20.21 Forms prescribed.
20.22 Alternate methods or procedures; and emergency variations from 
          requirements.
20.23 Approval of formulas and statements of process.
20.24 Allowance of claims.
20.25 Permits.
20.27 Right of entry and examination.
20.28 Detention of containers.

                            Liability for Tax

20.31 Applicable laws and regulations; persons liable for tax.

                            Marks and Brands

20.33 Time of destruction of marks and brands.

                          Document Requirements

20.36 Execution under penalties of perjury.
20.37 Filing of qualifying documents.

                 Subpart Ca_Special (Occupational) Taxes

20.38 Liability for special tax.
20.38a Special tax returns.
20.39 Employer identification number.

                           Special Tax Stamps

20.40 Issuance, distribution, and examination of special tax stamps.
20.40a Changes in special tax stamps.

              Subpart D_Qualification of Dealers and Users

                  Application for Permit, Form 5150.22

20.41 Application for industrial alcohol user permit.
20.42 Data for application, Form 5150.22.
20.43 Exceptions to application requirements.
20.44 Disapproval of application.
20.45 Organizational documents.

               Industrial Alcohol User Permit, Form 5150.9

20.48 Conditions of permits.
20.49 Duration of permits.
20.50 Correction of permits.
20.51 Suspension or revocation of permits.
20.52 Rules of practice in permit proceedings.
20.53 Powers of attorney.

[[Page 492]]

20.54 Photocopying of permits.
20.55 Posting of permits.

                  Changes After Original Qualification

20.56 Changes affecting applications and permits.
20.57 Automatic termination of permits.
20.58 Adoption of documents by a fiduciary.
20.59 Continuing partnerships.
20.60 Change in name of permittee.
20.61 Change in trade name.
20.62 Change in location.
20.63 Adoption of formulas and statement of process.
20.64 Return of permits.

                           Registry of Stills

20.66 Registry of stills.

                  Permanent Discontinuance of Business

20.68 Notice of permanent discontinuance.

Subpart E [Reserved]

              Subpart F_Formulas and Statements of Process

20.91 Formula.
20.92 Samples.
20.93 Changes to formulas.
20.94 Statement of process.
20.95 Developmental samples of articles.

                            Approval Policies

20.100 General.
20.101 Drafting formulas.
20.102 Bay rum, alcoholado, or alcoholado-type toilet waters.
20.103 Articles made with S.D.A. Formula No. 39-C.
20.104 Residual alcohol in spirit vinegar.

                          General-Use Formulas

20.111 General.
20.112 Special industrial solvents general-use formula.
20.113 Proprietary solvents general-use formula.
20.114 Tobacco flavor general-use formula.
20.115 Ink general-use formula.
20.116 Low alcohol general-use formula.
20.117 Reagent alcohol general-use formula.
20.118 Rubbing alcohol general-use formula.
20.119 Toilet preparations containing not less than 10% essential oils 
          general-use formula.

               Subpart G_Requirements Relating to Articles

20.131 Scope of subpart.
20.132 General requirements.
20.133 Registration of persons trafficking in articles.
20.134 Labeling.
20.135 State code numbers.
20.136 Labeling regulations of other agencies.
20.137 Penalties.

         Subpart H_Sale and Use of Completely Denatured Alcohol

20.141 General.
20.142 Records of bulk conveyances.
20.143 Receipt.
20.144 Packages of completely denatured alcohol.
20.145 Encased containers.
20.146 Labels on bulk containers.
20.147 Labels on consumer-size containers.
20.148 Manufacture of articles with completely denatured alcohol.
20.149 Records.

Subpart I_Operations by Dealers and Users of Specially Denatured Spirits

                  Obtaining Specially Denatured Spirits

20.161 Withdrawals under permit.
20.162 Regulation of withdrawals.
20.163 Receipt and storage of specially denatured spirits.

                         Premises and Equipment

20.164 Premises.
20.165 Storage facilities.
20.166 Stills and other equipment.
20.167 Recovered and restored denatured spirits tanks.

                          Inventory and Records

20.170 Physical inventory.
20.171 Record of shipment.
20.172 Records.

                          Operations by Dealers

20.175 Shipment for account of another dealer.
20.176 Packaging by a dealer.
20.177 Encased containers.
20.178 Marks and brands on containers of specially denatured spirits.
20.179 Package identification number or serial number.
20.180 Record of packages filled.
20.181 Limitations on shipments.
20.182 Bulk shipments.

                           Operations by Users

20.189 Use of specially denatured spirits.
20.190 Diversion of articles for internal human use or beverage use.
20.191 Bulk articles.
20.192 Manufacturing record.

                            Subpart J_Losses

20.201 Liability and responsibility of carrier.
20.202 Losses in transit.
20.203 Losses on premises.

[[Page 493]]

20.204 Incomplete shipments.
20.205 Claims.

  Subpart K_Recovery of Denatured Alcohol, Specially Denatured Rum, or 
                                Articles

20.211 General.
20.212 Deposit in receiving tanks.
20.213 Reuse of recovered spirits.
20.214 Shipment for restoration or redenaturation.
20.215 Shipment of articles and spirits residues for redistillation.
20.216 Record of shipment.

                          Subpart L_Destruction

20.221 General.
20.222 Destruction.

 Subpart M_Return, Reconsignment and Disposition of Specially Denatured 
                                 Spirits

20.231 Return.
20.232 Reconsignment in transit.
20.233 Disposition after revocation of permit.
20.234 Disposition on permanent discontinuance of use.
20.235 Disposition to another user.

  Subpart N_Use of Specially Denatured Spirits by the United States or 
                            Government Agency

20.241 General.
20.242 Application and permit, Form 5150.33.
20.243 Procurement of specially denatured spirits.
20.244 Receipt of shipment.
20.245 Discontinuance of use.
20.246 Disposition of specially denatured spirits on discontinuance of 
          use.

            Subpart O_Samples of Specially Denatured Spirits

20.251 General.
20.252 Samples larger than five gallons.
20.253 Labels for samples.

                      Subpart P_Records and Reports

20.261 Records of completely denatured alcohol.
20.262 Dealer's records of specially denatured spirits.
20.263 User's records of specially denatured spirits.
20.264 User's records and report of products and processes.
20.265 Retention of invoices.
20.266 Time for making entries in records.
20.267 Filing and retaining records.
20.268 Photographic copies of records.

    Authority: 26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552, 5555, 
5607, 6065, 7805.

    Source: T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 20 appear by T.D. ATF-
235, 66 FR 5473-5475, Jan. 19, 2001 and T.D. ATF-463 and T.D. ATF-462, 
66 FR 42733, 42736, Aug. 15, 2001.



                             Subpart A_Scope



Sec.  20.1  General.

    The regulations in this part relate to denatured distilled spirits 
and cover the procurement, use, disposition, and recovery of denatured 
alcohol, specially denatured rum, and articles containing denatured 
spirits.



Sec.  20.2  Territorial extent.

    (a) This part applies to the several States of the United States, 
the District of Columbia and to denatured spirits and articles coming 
into the United States from Puerto Rico or the Virgin Islands.
    (b) For the purposes of this part, operations in a foreign-trade 
zone located in any State of the United States or the District of 
Columbia are regulated in the same manner as operations in any other 
part of such State or the District of Columbia, with the exception that 
under this part only domestic denatured spirits may be used in the 
manufacture of articles in a foreign-trade zone.

(48 Stat. 999, as amended (19 U.S.C. 81c))

[T.D. ATF-274, 53 FR 25156, July 5, 1988]



Sec.  20.3  Related regulations.

    Regulations related to this part are listed below:

16 CFR Chapter I--Federal Trade Commission.
16 CFR Chapter II--Consumer Product Safety Commission.
21 CFR Chapter I--Food and Drug Administration, Department of Health and 
Human Services.
27 CFR Part 19--Distilled Spirits Plants.
27 CFR Part 21--Formulas for Denatured Alcohol and Rum.
27 CFR Part 26--Liquors and Articles from Puerto Rico and the Virgin 
Islands.
27 CFR Part 27--Importation of Distilled Spirits, Wines and Beer.
27 CFR Part 29--Stills and Miscellaneous Regulations.

[[Page 494]]

27 CFR Part 71--Rules of Practice in Permit Proceedings.

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-207, 50 
FR 23682, June 5, 1985; T.D. ATF-459, 66 FR 38549, July 25, 2001; T.D. 
ATF-479, 67 FR 30798, May 8, 2002; T.D. ATF-923, 67 FR 17938, Apr. 12, 
2002]



                          Subpart B_Definitions



Sec.  20.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, the 
following terms have the meanings given in this section. Words in the 
plural form include the singular, and vice versa, and words importing 
the masculine gender include the feminine. The terms ``includes'' and 
``including'' do not exclude things not enumerated which are in the same 
general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Alcohol. Those spirits known as ethyl alcohol, ethanol, or spirits 
of wine, from whatever source or by whatever process produced; the term 
does not include such spirits as whisky, brandy, rum, gin, or vodka.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.20, Delegation of the Administrator's Authorities in 27 CFR Part 
20, Distribution and Use of Denatured Alcohol and Rum.
    Article. Any substance or preparation in the manufacture of which 
denatured spirits are used, including the product obtained by further 
manufacture or by combination with other materials, if the article 
subjected to further manufacture or combination contained denatured 
spirits.
    Bulk conveyance. Any tank car, tank truck, tank ship, or tank barge, 
or a compartment of any such conveyance, or any other container approved 
by the appropriate TTB officer for the conveyance of comparable 
quantities of denatured spirits or articles.
    CFR. The Code of Federal Regulations.
    Completely denatured alcohol. Those spirits known as alcohol, as 
defined in this section, denatured under the completely denatured 
alcohol formulas prescribed in subpart C of part 21 of this chapter.
    Dealer. A person required to hold a permit to deal in specially 
denatured spirits for resale to persons authorized to purchase or 
receive specially denatured spirits in accordance with this part. The 
term does not include a person who only buys and sells specially 
denatured spirits which that person never physically receives or intends 
to receive.
    Denaturant. Any one of the materials authorized under part 21 of 
this chapter for addition to spirits in the production of denatured 
spirits.
    Denatured spirits. Alcohol or rum to which denaturants have been 
added as provided in part 21 of this chapter.
    Denaturer. The proprietor of a distilled spirits plant who denatures 
alcohol or rum under part 19 of this chapter.
    Distributor. Any person who sells completely denatured alcohol, 
other than a proprietor of a distilled spirits plant who sells such 
alcohol at the plant premises, and any person who sells articles 
containing completely or specially denatured alcohol or specially 
denatured rum, other than the manufacturer, except where otherwise 
specifically restricted in this part.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the claim, form, or other document or, where no form of 
declaration is prescribed, with the declaration--

    I declare under the penalties of perjury that this -------- (insert 
type of document, such as statement, report, certificate, application, 
claim, or other document), including the documents submitted in support 
thereof, has been examined by me and, to the best of my knowledge and 
belief, is true, correct, and complete.

    Fiduciary. A guardian, trustee, executor, administrator, receiver, 
conservator, or any person acting in any fiduciary capacity for any 
person.
    Gallon. The liquid measure equivalent to the volume of 231 cubic 
inches.
    Liter or litre. A metric unit of capacity equal to 1,000 cubic 
centimeters of alcohol, and equivalent to 33.814 fluid

[[Page 495]]

ounces. A liter is divided into 1,000 milliliters. The symbol for 
milliliter or milliliters is ``ml''.
    Manufacturer or user. A person who holds a permit to use specially 
denatured alcohol or specially denatured rum or to recover completely or 
specially denatured alcohol, specially denatured rum, or articles.
    Permit. The document issued under 26 U.S.C. 5271(a), authorizing a 
person to withdraw and deal in or use specially denatured alcohol or 
specially denatured rum or to recover denatured alcohol, specially 
denatured rum, or articles under specified conditions.
    Permittee. Any person holding a permit, Form 5150.9, issued under 
this part to withdraw and deal in or use (including recover) denatured 
spirits.
    Person. An individual, trust, estate, partnership, association, 
company, or corporation.
    Proof. The ethyl alcohol content of a liquid at 60[deg] Fahrenheit, 
stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A gallon at 60[deg] Fahrenheit which contains 50 
percent by volume of ethyl alcohol having a specific gravity of 0.7939 
at 60[deg] Fahrenheit referred to water at 60[deg] Fahrenheit as unity, 
or the alcoholic equivalent thereof.
    Proprietary solvents. Solvents which are manufactured with specially 
denatured alcohol under the proprietary solvent general-use formula in 
this part.
    Recover. To salvage, after use, specially denatured spirits, 
completely denatured alcohol without all of its original denaturants, or 
any article containing denatured spirits, if (1) the original article 
was made with specially denatured spirits and the salvaged article does 
not contain all of the original ingredients of the article, or (2) the 
original article was made with completely denatured alcohol and the 
salvaged article does not contain all of the original denaturants of the 
completely denatured alcohol.
    Recovered article. An article containing specially denatured spirits 
salvaged without all of its original ingredients, or an article 
containing completely denatured alcohol salvaged without all of the 
original denaturants of the completely denatured alcohol.
    Recovered denatured alcohol. Denatured alcohol (except completely 
denatured alcohol containing all of its original denaturants) which has 
been recovered.
    Recovered denatured rum. Denatured rum which has been recovered.
    Restoration. Restoring to the original state (except that the 
restored material may or may not contain denaturants to the same extent 
as the original material) of recovered denatured alcohol, recovered 
specially denatured rum, or recovered articles containing denatured 
alcohol or specially denatured rum. Restoration includes bringing the 
alcohol content of the recovered product to 190[deg] of proof or more or 
to not less than the original proof if less than 190[deg]. Restoration 
also includes the removal of foreign materials by any suitable means.
    Rum. Any spirits produced from sugar cane products and distilled at 
less than 190[deg] proof in such manner that the spirits possess the 
taste, aroma, and characteristics generally attributed to rum.
    Secretary. The Secretary of the Treasury or his delegate.
    Special industrial solvents. Solvents which are manufactured with 
specially denatured alcohol under special industrial solvent general-use 
formula in this part.
    Specially denatured alcohol or S.D.A. Those spirits known as 
alcohol, as defined in this section, denatured under the specially 
denatured alcohol formulas prescribed in part 21 of this chapter.
    Specially denatured rum or S.D.R. Those spirits known as rum, as 
defined in this section, denatured under the specially denatured rum 
formula prescribed in part 21 of this chapter.
    Specially denatured spirits. Specially denatured alcohol or 
specially denatured rum.
    Spirits or distilled spirits. Alcohol or rum as defined in this 
part.
    Tank truck. A tank-equipped semi-trailer, trailer, or truck, 
conforming to the requirements of this part.
    This chapter. Chapter I, Title 27, Code of Federal Regulations.

[[Page 496]]

    U.S.C. The United States Code.

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985, as 
amended by ATF-332, 57 FR 40849, Sept. 8, 1992; T.D. ATF-435, 66 FR 
5473, Jan. 19, 2001; T.D. TTB-44, 71 FR 16934, Apr. 4, 2006]



                   Subpart C_Administrative Provisions

                               Authorities



Sec.  20.20  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.20, Delegation of the Administrator's 
Authorities in 27 CFR Part 20, Distribution and use of Denatured Alcohol 
and Rum. You may obtain a copy of this order by accessing the TTB Web 
site (http://www.ttb.gov) or by mailing a request to the Alcohol and 
Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, 
Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16934, Apr. 4, 2006]



Sec.  20.21  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part, including applications, notices, claims, reports, 
and records. All of the information called for in each form shall be 
furnished as indicated by the headings on the form and the instructions 
on or pertaining to the form. In addition, information called for in 
each form shall be furnished as required by this part. The form will be 
filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-249, 52 
FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-
435, 66 FR 5474, Jan. 19, 2001; T.D. ATF-476, 67 FR 17938, Apr. 12, 
2002; T.D. TTB-44, 71 FR 16934, Apr. 4, 2006]



Sec.  20.22  Alternate methods or procedures; and emergency variations from requirements.

    (a) Alternate methods or procedures--(1) Application. A permittee, 
after receiving approval from the appropriate TTB officer, may use an 
alternate method or procedure (including alternate construction or 
equipment) in lieu of a method or procedure prescribed by this part. A 
permittee wishing to use an alternate method or procedure may apply to 
the appropriate TTB officer. The permittee shall describe the proposed 
alternate method or procedure and shall set forth the reasons for its 
use.
    (2) Approval by appropriate TTB officer. The appropriate TTB officer 
may approve the use of an alternate method or procedure if:
    (i) The applicant shows good cause for its use;
    (ii) It is consistent with the purpose and effect of the procedure 
prescribed by this part, and provides equal security to the revenue;
    (iii) It is not contrary to law; and
    (iv) It will not cause an increase in cost to the Government and 
will not hinder the effective administration of this part.
    (3) Conditions of approval. A permittee may not employ an alternate 
method or procedure until the appropriate TTB officer has approved its 
use. The permittee shall, during the terms of the authorization of an 
alternate method or procedure, comply with terms of the approved 
application.
    (b) Emergency variations from requirements--(1) Application. When an 
emergency exists, a permittee may apply to the appropriate TTB officer 
for a variation from the requirements of this part relating to 
construction, equipment, and methods of operation. The permittee shall 
describe the proposed variation and set forth the reasons for using it.

[[Page 497]]

    (2) Approval by appropriate TTB officer. The appropriate TTB officer 
may approve an emergency variation from requirements if:
    (i) An emergency exists;
    (ii) The variation from the requirements is necessary;
    (iii) It will afford the same security and protection to the revenue 
as intended by the specific regulations;
    (iv) It will not hinder the effective administration of this part; 
and
    (v) It is not contrary to law.
    (3) Conditions of approval. A permittee may not employ an emergency 
variation from the requirements until the appropriate TTB officer has 
approved its use. Approval of variations from requirements are 
conditioned upon compliance with the conditions and limitations set 
forth in the approval.
    (4) Automatic termination of approval. If the permittee fails to 
comply in good faith with the procedures, conditions or limitations set 
forth in the approval, authority for the variation from requirements is 
automatically terminated and the permittee is required to comply with 
prescribed requirements of regulations from which those variations were 
authorized.
    (c) Withdrawal of approval. The appropriate TTB officer may withdraw 
approval for an alternate method or procedure, may withdraw approval for 
an emergency variation from requirements, approved under paragraph (a) 
or (b) of this section, if the appropriate TTB officer finds that the 
revenue is jeopardized or the effective administration of this part is 
hindered by the approval.

(Approved by the Office of Management and Budget under control number 
1512-0336)

(Act of August 16, 1954, Ch. 736, 68A Stat. 917 (26 U.S.C. 7805); sec. 
201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-235, 66 
FR 5474, Jan. 19, 2001; T.D. ATF-476, 67 FR 17938, Apr. 12, 2002]



Sec.  20.23  Approval of formulas and statements of process.

    The appropriate TTB officer is authorized to approve all formulas 
for articles and statements of process relating to recovery operations 
or other activities required to be submitted on Form 5150.19.



Sec.  20.24  Allowance of claims.

    The appropriate TTB officer is authorized to allow claims for losses 
of specially denatured alcohol or specially denatured rum.



Sec.  20.25  Permits.

    The appropriate TTB officer must issue permits for the United States 
or a Governmental agency as provided in Sec.  20.241 and industrial 
alcohol user permits, Form 5150.9, required under this part.

[T.D. ATF-435, 66 FR 5474, Jan. 19, 2001]



Sec.  20.27  Right of entry and examination.

    An appropriate TTB officer may enter, during business hours or at 
any time operations are being conducted, any premises on which 
operations governed by this part are conducted to inspect the records 
and reports required by this part to be kept on those premises. An 
appropriate TTB officer may also inspect and take samples of distilled 
spirits, denatured alcohol, specially denatured rum or articles 
(including any substance for use in the manufacture of denatured 
alcohol, specially denatured rum or articles) to which those records or 
reports relate.



Sec.  20.28  Detention of containers.

    (a) Summary detention. An appropriate TTB officer may detain any 
container containing, or supposed to contain, spirits (including 
denatured spirits and articles), when the appropriate TTB officer 
believes those spirits, denatured spirits, or articles were produced, 
withdrawn, sold, transported, or used in violation of law or this part. 
The appropriate TTB officer shall hold the container at a safe place 
until it is determined if the detained property is liable by law to 
forfeiture.
    (b) Limitations. Summary detention may not exceed 72 hours without 
process of law or intervention of the appropriate TTB officer. The 
person possessing the container immediately before its detention may 
prepare a waiver of the 72 hours limitation to have the

[[Page 498]]

container kept on his or her premises during detention.

(Sec. 201, Pub. L. 85-859, Stat. 1375, as amended (26 U.S.C. 5311))

                            Liability for Tax



Sec.  20.31  Applicable laws and regulations; persons liable for tax.

    (a) All laws and regulations regarding alcohol or rum that is not 
denatured, including those requiring payment of the distilled spirits 
tax, apply to completely denatured alcohol, specially denatured alcohol, 
specially denatured rum, or articles produced, withdrawn, sold, 
transported, or used in violation of laws or regulations pertaining to 
those substances.
    (b) Any person who produces, withdraws, sells, transports, or uses 
completely denatured alcohol, specially denatured alcohol, specially 
denatured rum, or articles in violation of laws or regulations shall be 
required to pay the distilled spirits tax on those substances.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))

                            Marks and Brands



Sec.  20.33  Time of destruction of marks and brands.

    (a) Any person who empties a package containing denatured alcohol, 
specially denatured rum, or articles made from denatured alcohol or 
specially denatured rum shall immediately destroy or obliterate the 
marks, brands, and labels required by this chapter to be placed on 
packages containing those materials.
    (b) A person may not destroy or obliterate the marks, brands or 
labels until the package or drum has been emptied.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5206))

                          Document Requirements



Sec.  20.36  Execution under penalties of perjury.

    (a) When any form or document prescribed by this part is required to 
be executed under penalties of perjury, the dealer or user or other 
authorized person shall:
    (1) Insert the declaration ``I declare under the penalties of 
perjury that I have examined this -------- (insert the type of document 
such as claim, application, statement, report, certificate), including 
all supporting documents, and to the best of my knowledge and belief, it 
is true, correct, and complete''; and
    (2) Sign the document.
    (b) When the required document already bears a perjury declaration, 
the dealer or user or other authorized person shall sign the document.

(26 U.S.C. 6065)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-332, 57 
FR 40849, Sept. 8, 1992]



Sec.  20.37  Filing of qualifying documents.

    All documents returned to a permittee or other person as evidence of 
compliance with requirements of this part, or as authorization, shall 
except as otherwise provided, be kept readily available for inspection 
by an appropriate TTB officer during business hours.



                 Subpart Ca_Special (Occupational) Taxes

    Source: T.D. ATF-271, 53 FR 17544, May 17, 1988, unless otherwise 
noted.



Sec.  20.38  Liability for special tax.

    (a) Industrial alcohol permittee. Except as otherwise provided in 
this section, every person required to hold a permit under 26 U.S.C. 
5271 to procure, use, sell, and/or recover denatured distilled spirits 
for industrial purposes shall pay a special (occupational) tax at the 
rate of $250 per year. A separate tax shall be paid for each industrial 
alcohol permit which the permittee holds, and permits issued under this 
part shall not be valid unless special tax is paid. The tax shall be 
paid on or before the date of commencing business as an industrial 
alcohol permittee, and thereafter every year on or before July 1. On 
commencing business, the tax shall be computed from the first day of the 
month in which liability is incurred, through the following June 30. 
Thereafter, the tax shall be computed for the entire year (July 1 
through June 30).

[[Page 499]]

    (b) Transition rule. For purposes of paragraph (a) of this section, 
a permittee engaged in denatured distilled spirits operations on January 
1, 1988, shall be treated as having commenced business on that date. The 
special tax imposed by this transition rule shall cover the period 
January 1, 1988, through June 30, 1988, and shall be paid on or before 
April 1, 1988.
    (c) Each place of business taxable. Special (occupational) tax 
liability is incurred at each place of business for which a permit under 
subpart D of this part to procure, use, sell, and/or recover denatured 
distilled spirits has been issued. A place of business means the entire 
office, plant or area of the business in any one location under the same 
proprietorship. Passageways, streets, highways, rail crossings, 
waterways, or partitions dividing the premises are not sufficient 
separation to require additional special tax, if the divisions of the 
premises are otherwise contiguous.
    (d) Exception for United States. Agencies and instrumentalities of 
the United States are not required to pay special tax under this 
subpart.
    (e) Exemption for certain educational institutions (effective July 
1, 1989). (1) On and after July 1, 1989, a scientific university, 
college of learning, or institution of scientific research, which holds 
a permit to procure and use specially denatured spirits under this part, 
is exempt from payment of special tax under this subpart if--
    (i) The university, college, or institution procures less than 25 
gallons of specially denatured spirits per calendar year; and
    (ii) Such spirits are procured for use exclusively for experimental 
or research use and not for consumption (other than organoleptic tests) 
or sale.
    (2) A scientific university, college of learning, or institution of 
scientific research, which holds a permit under this part, and which 
does not operate as described in paragraphs (e)(1)(i) and (ii) of this 
section during any calendar year, shall pay special tax as provided in 
Sec.  20.38(a) for the special tax year (July 1 through June 30) 
commencing during that calendar year.

(26 U.S.C. 5143, 5276)

[T.D. ATF-271, 53 FR 17544, May 17, 1988, as amended by T.D. ATF-285, 54 
FR 12610, Mar. 28, 1989]



Sec.  20.38a  Special tax returns.

    (a) General. Special tax shall be paid by return. The prescribed 
return is TTB Form 5630.5, Special Tax Registration and Return. Special 
tax returns, with payment of tax, shall be filed with TTB in accordance 
with instructions on the form.
    (b) Preparation of TTB Form 5630.5. All of the information called 
for on Form 5630.5 shall be provided, including:
    (1) The true name of the taxpayer.
    (2) The trade name(s) (if any) of the business(es) subject to 
special tax.
    (3) The employer identification number (see Sec.  20.39).
    (4) The exact location of the place of business, by name and number 
of building or street, or if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown shall be the taxpayer's 
principal place of business (or principal office, in the case of a 
corporate taxpayer).
    (5) The class(es) of special tax to which the taxpayer is subject.
    (6) Ownership and control information: That is, the name, position, 
and residence address of every owner of the business and of every person 
having power to control its management and policies with respect to the 
activity subject to special tax. ``Owner of the business'' shall include 
every partner, if the taxpayer is a partnership, and every person owning 
10 percent of more of its stock, if the taxpayer is a corporation. 
However, the ownership and control information required by this 
paragraph need not be stated if the same information has been previously 
provided to TTB in connection with a permit application, and if the 
information previously provided is still current.
    (c) Multiple locations and/or classes of tax. A taxpayer subject to 
special tax for the same period at more than one location or for more 
than one class of tax shall--

[[Page 500]]

    (1) File one special tax return, TTB Form 5630.5, with payment of 
tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on TTB Form 5630.5), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid. The original of the list shall be filed with 
TTB is accordance with instructions on the return, and the copy shall be 
retained at the taxpayer's principal place of business (or principal 
office, in the case of a corporate taxpayer) for the period specified in 
Sec.  20.267.
    (d) Signing of TTB Forms 5630.5--(1) Ordinary returns. The return of 
an individual proprietor shall be signed by the individual. The return 
of a partnership shall be signed by a general partner. The return of a 
corporation shall be signed by any officer. In each case, the person 
signing the return shall designate his or her capacity as ``individual 
owner,'' ``member of firm,'' or, in the case of a corporation, the title 
of the officer.
    (2) Fiduciaries. Receivers, trustees, assignees, executors 
administrators, and other legal representatives who continue the 
business of a bankrupt, insolvent, deceased person, etc., shall indicate 
the fiduciary capacity in which they act.
    (3) Agent or attorney in fact. If a return is signed by an agent or 
attorney in fact, the signature shall be preceded by the name of the 
principal and followed by the title of the agent or attorney in fact. A 
return signed by a person as agent will not be accepted unless there is 
filed, with the TTB office with which the return is required to be 
filed, a power of attorney authorizing the agent to perform the act.
    (4) Perjury statement. TTB Forms 5630.5 shall contain or be verified 
by a written declaration that the return has been executed under the 
penalties of perjury.

(26 U.S.C. 5142, 6061, 6065, 6151, 7011)



Sec.  20.39  Employer identification number.

    (a) Requirement. The employer identification number (defined in 26 
CFR 301.7701-12) of the taxpayer who has been assigned such a number 
shall be shown on each special tax return, including amended returns, 
filed under this subpart. Failure of the taxpayer to include the 
employer identification number may result in the imposition of the 
penalty specified in Sec.  70.105 of this chapter.
    (b) Application for employer indentification number. Each taxpayer 
who files a special tax return, who has not already been assigned an 
employer identification number, shall file IRS Form SS-4 to apply for 
one. The taxpayer shall apply for and be assigned only one employer 
identification number, regardless of the number of places of business 
for which the taxpayer is required to file a special tax return. The 
employer identification number shall be applied for no later than 7 days 
after the filing of the taxpayer's first special tax return. IRS Form 
SS-4 may be obtained from the director of an IRS service center or from 
any IRS district director.
    (c) Preparation and filing of IRS Form SS-4. The taxpayer shall 
prepare and file IRS Form SS-4, together with any supplementary 
statement, in accordance with the instructions on the form or issued in 
respect to it.

(26 U.S.C. 6109)

                           Special Tax Stamps



Sec.  20.40  Issuance, distribution, and examination of special tax stamps.

    (a) Issuance of special tax stamps. Upon filing a properly executed 
return on TTB Form 5630.5 together with the full remittance, the 
taxpayer will be issued an appropriately designated special tax stamp. 
If the return covers multiple locations, the taxpayer will be issued one 
appropriately designated stamp for each location listed on the 
attachment required by Sec.  20.38a(c)(2), but showing, as to name and 
address, only the name of the taxpayer and the address of the taxpayer's 
principal place of business (or principal office in the case of a 
corporate taxpayer).

[[Page 501]]

    (b) Distribution of special tax stamps for multiple locations. On 
receipt of the special tax stamps, the taxpayer shall verify that there 
is one stamp for each location listed on the attachment to TTB Form 
5630.5. The taxpayer shall designate one stamp for each location and 
shall type on each stamp the address of the business conducted at the 
location for which that stamp is designated. The taxpayer shall then 
forward each stamp to the place of business designated on the stamp.
    (c) Examination of special tax stamps. All stamps denoting payment 
of special tax shall be kept available for inspection by TTB officers, 
at the location for which designated, during business hours.

(26 U.S.C. 5143, 5146, 6806)



Sec.  20.40a  Changes in special tax stamps.

    (a) Change in name. If there is a change in the corporate or firm 
name, or in the trade name, as shown on TTB Form 5630.5, the permittee 
shall file an amended special tax return, as soon as practicable after 
the change, covering the new corporate or firm name, or trade names. No 
new special tax is required to be paid. The permittee shall attach the 
special tax stamp for endorsement of the change in name.
    (b) Change in proprietorship--(1) General. If there is a change in 
the proprietorship of an industrial alcohol operation, the successor 
shall pay a new special tax and obtain the required special tax stamps.
    (2) Exemption for certain successors. Persons having the right of 
succession provided for in paragraph (c) of this section may carry on 
the business for the remainder of the period for which the special tax 
was paid, without paying a new special tax, if within 30 days after the 
date on which the successor begins to carry on the business, the 
successor files a special tax return on TTB Form 5630.5 with TTB, which 
shows the basis of succession. A person who is a successor to a business 
for which special tax has been paid and who fails to register the 
succession is liable for special tax computed from the first day of the 
calendar month in which he or she began to carry on the business.
    (c) Persons having right of succession. Under the conditions 
indicated in paragraph (b)(2) of this section, the right of succession 
will pass to certain persons in the following cases:
    (1) Death. The widowed spouse or child, or executor, administrator, 
or other legal representative of the taxpayer;
    (2) Succession of spouse. A husband or wife succeeding to the 
business of his or her spouse (living);
    (3) Insolvency. A receiver or trustee in bankruptcy, or an assignee 
for benefit of creditors;
    (4) Withdrawal from firm. The partner or partners remaining after 
death or withdrawal of a member.
    (d) Change in location. If there is a change in location of a 
taxable place of business, the proprietor shall, within 30 days after 
the change, file with TTB an amended special tax return covering the new 
location. The proprietor shall attach the special tax stamp or stamps, 
for endorsement of the change in location. No new special tax is 
required to be paid. However, if the proprietor does not file the 
amended return within 30 days, the proprietor is required to pay a new 
special tax and obtain a new special tax stamp.

(26 U.S.C. 5143, 7011)



              Subpart D_Qualification of Dealers and Users

                  Application for Permit, Form 5150.22



Sec.  20.41  Application for industrial alcohol user permit.

    (a) Dealers. A person who desires to withdraw and deal in specially 
denatured spirits shall, before commencing business, file an application 
on Form 5150.22 for, and obtain a permit, Form 5150.9.
    (b) Users. A person who desires to withdraw and use or recover 
specially denatured spirits shall, before commencing business, file an 
application on Form 5150.22 for, and obtain a permit, Form 5150.9. The 
provisions of this paragraph also apply to persons desiring to recover 
denatured spirits from articles.
    (c) Filing. All applications and necessary supporting documents, as 
required by this subpart, shall be filed

[[Page 502]]

with the appropriate TTB officer. All data, written statements, 
certifications, affidavits, and other documents submitted in support of 
the application are considered a part of the application.
    (1) Applications filed as provided in this section, shall be 
accompanied by evidence establishing the authority of the officer or 
other person to execute the application.
    (2) A State, political subdivision thereof, or the District of 
Columbia, may specify in the application that it desires a single permit 
authorizing the withdrawal and use of specially denatured spirits in a 
number of institutions under it control. In this instance, the 
application, Form 5150.22, or an attachment, shall clearly show the 
method of distributing and accounting for the specially denatured 
spirits to be withdrawn.
    (d) Exceptions. (1) The proprietor of a distilled spirits plant 
qualified under part 19 of this chapter, who sells specially denatured 
spirits stored at the plant premises is not required to qualify as a 
dealer under this part.
    (2) A permittee who was previously qualified on the effective date 
of this regulation shall not be required to requalify under this part.

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  20.42  Data for application, Form 5150.22.

    (a) Unless waived under Sec.  20.43, each application on Form 
5150.22 shall include as applicable, the following information:
    (1) Serial number and purpose for which filed.
    (2) Name and principal business address.
    (3) Based on the bona fide requirements of the applicant, the 
estimated quantity of all formulations of specially denatured spirits, 
in gallons, which will be procured during a 12-month period.
    (4) Location, or locations where specially denatured spirits will be 
sold or used if different from the business address.
    (5) Statement that specially denatured spirits will be stored in 
accordance with the requirements of this part.
    (6) For user applications, statement as to the intended use (e.g., 
cosmetics, external medicines, solvents, fuels, mouthwashes, laboratory 
uses, inks, etc.) to be made of the specially denatured spirits, and 
whether recovery, restoration, and redenaturation processes will be 
used.
    (7) Statement as to the type of business organization and of the 
persons interested in the business, supported by the items of 
information listed in Sec.  20.45.
    (8) Listing of the principal equipment to be used in recovery 
processes, including processing tanks, storage tanks, and equipment for 
recovery, restoration, and redenaturation of denatured spirits 
(including the serial number, kind, capacity, names and addresses of 
manufacturer and owner of distilling apparatus along with intended use).
    (9) List of trade names under which the applicant will conduct 
operations, and the offices where these names are registered.
    (10) Listing of the titles of offices, the incumbents of which are 
responsible for the specially denatured spirits activities of the 
business and are authorized by the articles of incorporation, the 
bylaws, or the board of directors to act and sign on behalf of the 
applicant.
    (11) Other information and statements as the appropriate TTB officer 
may require to establish that the applicant is entitled to the permit. 
In the case of a corporation or other legal entity, the appropriate TTB 
officer may require information which establishes that the officers, 
directors and principal stockholders whose names are required to be 
furnished under Sec.  20.45 (a)(2) and (c) have not violated or 
conspired to violate any law of the United States relating to 
intoxicating liquor or have been convicted of any offense under Title 
26, U.S.C., punishable as a felony or of any conspiracy to commit such 
offense.
    (b) If any of the information required by paragraphs (a)(4) through 
(a)(10) and any information which may be required under paragraph 
(a)(11) of this section

[[Page 503]]

is on file with any appropriate TTB officer, the applicant may 
incorporate this information by reference by stating that the 
information is made a part of the application.



Sec.  20.43  Exceptions to application requirements.

    (a) The appropriate TTB officer may waive detailed application and 
supporting data requirements, other than the requirements of paragraphs 
(a)(1) through (a)(6) and (a)(9) of Sec.  20.42, and paragraph (a)(8) of 
that section as it relates to recovery, restoration and redistillation, 
in the case of--
    (1) All applications, Form 5150.22, filed by States or political 
subdivisions thereof or the District of Columbia, and
    (2) Applications, Form 5150.22, filed by applicants, where the 
appropriate TTB officer has determined that the waiver of such 
requirements does not pose any jeopardy to the revenue or a hindrance of 
the effective administration of this part.
    (b) The waiver provided for in this section will terminate for a 
permittee, other than States or political subdivisions thereof or the 
District of Columbia, when the appropriate TTB officer determines that 
the conditions justifying the waiver no longer exist. In this case, the 
permittee will furnish the information in respect to the previously 
waived items, as provided in Sec.  20.56(a)(2).

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 
FR 17938, Apr. 12, 2002]



Sec.  20.44  Disapproval of application.

    The appropriate TTB officer may, in accordance with part 71 of this 
chapter, disapprove an application for a permit to withdraw and deal or 
use denatured spirits, if on examination of the application (or 
inquiry), the appropriate TTB officer has reason to believe that:
    (a) The applicant is not authorized by law and regulations to 
withdraw and deal in or use specially denatured spirits;
    (b) The applicant (including, in the case of a corporation, any 
officer, director, or principal stockholder, or, in the case of a 
partnership, a partner) is, by reason of their business experience, 
financial standing, or trade connections, not likely to maintain 
operations in compliance with 26 U.S.C. Chapter 51, or regulations 
issued under this part;
    (c) The applicant has failed to disclose any material information 
required, or has made any false statement as to any material fact, in 
connection with the application; or
    (d) The premises at which the applicant proposes to conduct the 
business are not adequate to protect the revenue.



Sec.  20.45  Organizational documents.

    The supporting information required by Sec.  20.42(a)(7) includes, 
as applicable:
    (a) Corporate documents. (1) Certified true copy of the certificate 
of incorporation, or certified true copy of certificate authorizing the 
corporation to operate in the State where the premises are located (if 
other than that in which incorporated);
    (2) Certified list of names and addresses of officers and directors, 
along with a statement designating which corporate offices, if 
applicable, are directly responsible for the specially denatured spirits 
portion of the business; and
    (3) Statement showing the number of shares of each class of stock or 
other evidence of ownership, authorized and outstanding, the par value, 
and the voting rights of the respective owners or holders.
    (b) Articles of partnership. True copy of the articles of 
partnership or association, if any, or certificate of partnership or 
association where required to be filed by any State, county, or 
municipality.
    (c) Statement of interest. (1) Names and addresses of persons owning 
10% or more of each of the classes of stock in the corporation, or legal 
entity, and the nature and amount of the stockholding or other interest 
of each, whether such interest appears in the name of the interested 
party or in the name of another for him or her. If a corporation is 
wholly owned or controlled by another corporation, persons owning 10% or 
more of each of the classes of stock of the parent corporation are 
considered to be the persons

[[Page 504]]

interested in the business of the subsidiary, and the names and 
addresses of such persons must be submitted to the appropriate TTB 
officer if specifically requested.
    (2) In the case of an individual owner or partnership, name and 
address of every person interested in the business, whether such 
interest appears in the name of the interested party or in the name of 
another for the interested person.

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5474, Jan. 19, 2001]

               Industrial Alcohol User Permit, Form 5150.9



Sec.  20.48  Conditions of permits.

    (a) Permits to withdraw and deal in or use specially denatured 
spirits will designate the acts which are permitted, and include any 
limitations imposed on the performance of these acts. All of the 
provisions of this part relating to the use, recovery, restoration or 
redistillation of denatured spirits or articles are considered to be 
included in the provisions and conditions of the permit, the same as if 
set out in the permit.
    (b) An applicant need not have formulas and statements of processes, 
approved by the appropriate TTB officer, prior to the issuance of a 
permit by the appropriate TTB officer.
    (c) A permittee shall not use specially denatured spirits in the 
manufacture or production of any article unless the appropriate TTB 
officer has approved the formula on Form 5150.19 or the article is 
covered by an approved general-use formula.



Sec.  20.49  Duration of permits.

    Permits to withdraw and deal in or use specially denatured spirits 
are continuing unless automatically terminated by the terms thereof, 
suspended or revoked as provided in Sec.  20.51, or voluntarily 
surrendered. The provisions of Sec.  20.57 are considered part of the 
terms and conditions of all permits.



Sec.  20.50  Correction of permits.

    If an error on a permit is discovered, the permittee shall 
immediately return the permit to the appropriate TTB officer for 
correction.

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  20.51  Suspension or revocation of permits.

    The appropriate TTB officer may institute proceedings under part 71 
of this chapter to suspend or revoke a permit whenever the appropriate 
TTB officer has reason to believe that the permittee:
    (a) Has not in good faith complied with the provisions of 26 U.S.C. 
Chapter 51, or regulations issued under that chapter;
    (b) Has violated the conditions of that permit;
    (c) Has made any false statements as to any material fact in the 
application for the permit;
    (d) Has failed to disclose any material information required to be 
furnished;
    (e) Has violated or conspired to violate any law of the United 
States relating to intoxicating liquor or has been convicted of an 
offense under Title 26, U.S.C., punishable as a felony or of any 
conspiracy to commit such offense;
    (f) Is, by reason of its operations, no longer warranted in 
procuring and dealing in or using specially denatured spirits authorized 
by the permit; or
    (g) Has not engaged in any of the operations authorized by the 
permit for a period of more than 2 years.



Sec.  20.52  Rules of practice in permit proceedings.

    The regulations of part 71 of this chapter apply to the procedure 
and practice in connection with the disapproval of any application for a 
permit and in connection with suspension or revocation of a permit.



Sec.  20.53  Powers of attorney.

    An applicant or permittee shall execute and file a Form 1534, in 
accordance with the instructions on the form, for each person authorized 
to sign or to act on behalf of the applicant or permittee. Form 1534 is 
not required for a person whose authority is furnished in accordance 
with Sec.  20.42(a)(10).

[[Page 505]]



Sec.  20.54  Photocopying of permits.

    A permittee may make photocopies of its permit exclusively for the 
purpose of furnishing proof of authorization to withdraw specially 
denatured spirits from a distilled spirits plant and other persons 
authorized under this part to deal in specially denatured spirits.



Sec.  20.55  Posting of permits.

    Permits issued under this part shall be kept posted and available 
for inspection on the permit premises.

                  Changes After Original Qualification



Sec.  20.56  Changes affecting applications and permits.

    (a) General--(1) Changes affecting application. When there is a 
change relating to any of the information contained in, or considered a 
part of the application on Form 5150.22 for a permit, the permittee 
shall, within 30 days (except as otherwise provided in this subpart) 
file a written notice with the appropriate TTB officer to amend the 
application. However, a change in the information required by Sec.  
20.42(a)(6) caused by approval of a new formula or statement of process 
shall not require filing a new application unless the approval is the 
permittee's first statement of process covering recovery operations.
    (2) Changes affecting waivers. When any waiver under Sec.  20.43 is 
terminated by a change to the application, the permittee shall include 
the current information as to the item previously waived with the 
written notice required in paragraph (a)(1) of this section.
    (3) Changes affecting permit. When the terms of a permit are 
affected by a change, the written notice required by paragraph (a)(1) of 
this section (except as otherwise provided in this subpart) will serve 
as an application to amend the permit.
    (4) Form of notice. A written notice to amend an application on Form 
5150.22 shall--
    (i) Identify the permittee;
    (ii) Contain the permit identification number;
    (iii) Explain the nature of the change and contain any required 
supporting documents;
    (iv) Identify the serial number of the applicable application, Form 
5150.22; and
    (v) Be consecutively numbered and signed by the permittee or any 
person authorized to sign on behalf of the permittee.
    (b) Amended application. The appropriate TTB officer may require a 
permittee to file an amended application on Form 5150.22 when the number 
of changes to the previous application are determined to be excessive, 
or when a permittee has not timely filed the written notice prescribed 
in paragraph (a)(1) of this section. If items on the amended application 
remain unchanged, they will be marked ``No change since Form 5150.22, 
Serial No. ----------.''
    (c) Changes in officers, directors and stockholders--(1) Officers. 
In the case of a change in the officers listed under the provisions of 
Sec.  20.45(a)(2), the notice required by paragraph (a)(1) of this 
section shall only apply (unless otherwise required, in writing, by the 
appropriate TTB officer) to those offices, the incumbents of which are 
responsible for the operations covered by this part.
    (2) Directors. In the case of a change in the directors listed under 
the provisions of Sec.  20.45(a)(2), the notice required by paragraph 
(a)(1) of this section shall reflect the changes.
    (3) Stockholders. In lieu of reporting all changes, within 30 days, 
to the list of stockholders furnished under the provisions of Sec.  
20.45(c)(1), a permittee may, upon filing written notice to the 
appropriate TTB officer and establishing a reporting date, file an 
annual notice of changes. The notice of changes in stockholders does not 
apply if the sale or transfer of capital stock results in a change in 
ownership or control which is required to be reported under Sec.  20.57.

(Approved by the Office of Management and Budget under control number 
1512-0336)



Sec.  20.57  Automatic termination of permits.

    (a) Permit not transferable. Permits issued under this part are not 
transferable. In the event of the lease, sale, or

[[Page 506]]

other transfer of such a permit. or of the operations authorized by the 
permit, the permit shall, except as provided for in this section, 
automatically terminate.
    (b) Corporations. (1) If actual or legal control of any corporation 
holding a permit issued under this part changes, directly or indirectly, 
whether by reason of a change in stock ownership or control (in the 
permittee corporation or any other corporation), by operation of law, or 
in any other manner, the permittee shall, within 10 days of the change, 
give written notice to the appropriate TTB officer. Within 30 days of 
the change, the permittee shall file an application for a new permit, 
Form 5150.22 with supporting documents. If an application for a new 
permit is not filed on Form 5150.22 within 30 days of the change, the 
outstanding permit will automatically terminate.
    (2) If an application for a new permit is filed on Form 5150.22 
within the 30-day period prescribed in paragraph (b)(1) of this section, 
the outstanding permit may remain in effect until final action is taken 
on the application. When final action is taken, the outstanding permit 
will automatically terminate and shall be forwarded to the appropriate 
TTB officer.
    (c) Proprietorships. In the event of a change in proprietorship of a 
business of a permittee (as for instance, by reasons of incorporation, 
the withdrawal or taking in of additional partners, or succession by any 
person who is not a fiduciary), the successor shall file written notice 
and make application on Form 5150.22 for a new permit, under the same 
conditions provided for in paragraph (b) of this section. The successor 
may adopt the formulas and statements of process of the predecessor.

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  20.58  Adoption of documents by a fiduciary.

    If the business covered by a permit issued under this part, is to be 
operated by a fiduciary, the fiduciary may, in lieu of qualifying as a 
new proprietor, file a written notice, and any necessary supporting 
documents, to amend the predecessor's permit. The fiduciary may adopt 
the formulas and statements of process of the predecessor. The effective 
date of the qualifying documents filed by a fiduciary shall coincide 
with the effective date of the court order or the date specified therein 
for the fiduciary to assume control. If the fiduciary was not appointed 
by the court, the date the fiduciary assumed control shall coincide with 
the effective date of the filing of the qualifying documents.

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 
FR 17939, Apr. 12, 2002]



Sec.  20.59  Continuing partnerships.

    (a) General. If, under the laws of a particular State, a partnership 
is not teminated on death or insolvency of a partner, but continues 
until final settlement of the partnership affairs is completed, and the 
surviving partner has the exclusive right to the control and possession 
of the partnership assets for the purpose of liquidation and settlement, 
the surviving partner may continue to withdraw and use specially 
denatured spirits under the prior qualifications of the partnership.
    (b) Requalification. If a surviving partner acquires the business on 
completion of the settlement of the partnership, that partner shall 
qualify as a new proprietor, from the date of acquisition, under the 
same conditions and limitations prescribed in Sec.  20.57(c).
    (c) More than one partner. The rule set forth in this section also 
applies if there is more than one surviving partner.

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985; T.D. 
ATF-476, 67 FR 17939, Apr. 12, 2002]



Sec.  20.60  Change in name of permittee.

    When the only change is a change in the individual, firm, or 
corporation name, a permittee may not conduct operations under the new 
name until a written notice, accompanied by necessary supporting 
documents, to amend the application and permit has been

[[Page 507]]

filed and an amended permit issued by the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  20.61  Change in trade name.

    If there is to be a change in, or addition of, a trade name, the 
permittee may not conduct operations under the new trade name until a 
written notice has been filed and an amended permit has been issued by 
the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 
FR 17939, Apr. 12, 2002]



Sec.  20.62  Change in location.

    When there is to be a change in location, a permittee may not 
conduct operations at the new location until a written notice, 
accompanied by necessary supporting information to amend the application 
and permit has been filed and an amended permit issued by the 
appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0336)

T.D. ATF-199, 50 FR 9162, Mar. 8, 1985, as amended by T.D. ATF- 435, 66 
FR 5474, Jan. 19, 2001; T.D. ATF-476, 67 FR 17939, Apr. 12, 2002]



Sec.  20.63  Adoption of formulas and statements of process.

    (a) The adoption by a successor (proprietorship or fiduciary) of a 
predecessor's formulas and statements of process as provided in Sec.  
20.57(c), and Sec.  20.58, will be in the form of a certificate 
submitted to the appropriate TTB officer.
    (b) The certificate will contain, as applicable, (1) a list of all 
approved formulas or statements of process in which specially denatured 
spirits are used or recovered, (2) the formulas of specially denatured 
spirits used, (3) the TTB laboratory number of the sample (if any), (4) 
the date of approval of Form 1479-A or serial number of Form 5150.19, 
and (5) the applicable code number for the article or process. In 
addition, the certificate will contain the name of the successor 
followed by the phrase ``Formula of ---------------- (Name of 
predecessor) is hereby adopted.''

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985, as 
amended by ATF-332, 57 FR 40849, Sept. 8, 1992]



Sec.  20.64  Return of permits.

    Following the issuance of a new or amended permit, the permittee 
shall (a) obtain and destroy all photocopies of the previous permit from 
its suppliers, and (b) return the original of the previous permit to the 
appropriate TTB officer.

                           Registry of Stills



Sec.  20.66  Registry of stills.

    The provisions of subpart C of part 29 of this chapter are 
applicable to stills or distilling apparatus located on the premises of 
a permittee used for distilling. As provided under Sec.  29.55, the 
listing of a still in the permit application (Form 5150.22), and 
approval of the application, constitutes registration of the still.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179))

[T.D. ATF-207, 50 FR 23682, June 5, 1985]

                  Permanent Discontinuance of Business



Sec.  20.68  Notice of permanent discontinuance.

    (a) Notice. When a permittee permanently discontinues business, a 
written notice shall be filed with the appropriate TTB officer to cover 
the discontinuance. The notice will be accompanied by the permit, and 
contain--
    (1) A request to cancel the permit,
    (2) A statement of the disposition made of all specially denatured 
spirits, as required in Sec.  20.234, and
    (3) The date of discontinuance.
    (b) Final Reports. The written notice required by this paragraph 
will also be accompanied by a report on Form

[[Page 508]]

5150.18 covering the discontinuance and marked ``Final Report.''

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 
FR 17939, Apr. 12, 2002]

Subpart E [Reserved]



              Subpart F_Formulas and Statements of Process



Sec.  20.91  Formula.

    (a) Each article made with specially denatured spirits shall be made 
in accordance with (1) an approved formula, Form 5150.19, or (2) an 
approved general-use formula prescribed in this subpart, approved by the 
appropriate TTB officer as an alternate method, or published as a TTB 
ruling in the TTB Bulletin. The manufacturer shall file Form 5150.19, 
along with the sample(s) required by Sec.  20.92, and obtain an approved 
formula before manufacturing the article.
    (b) An article made in accordance with a formula on Form 1479-A 
approved under previous regulations in part 211 of this chapter will be 
considered to comply with the requirements of this subpart.
    (c) Any person who has approved formulas or statements of process, 
Form 1479-A or Form 5150.19, which have been discontinued or have become 
obsolete, may submit these formulas or statements of process to the 
appropriate TTB officer for cancellation.



Sec.  20.92  Samples.

    (a) For each formula submitted in accordance with Sec.  20.91 
covering a toilet preparation made with S.D.A. Formula No. 39-C and 
containing an essential oil, the manufacturer shall submit a 0.5-ounce 
sample of the essential oil used in the article. The appropriate TTB 
officer may also require the manufacturer to submit a sample of any 
ingredient which is not adequately described in the formula.
    (b) For each formula submitted in accordance with Sec.  20.91, the 
appropriate TTB officer may require the manufacturer to submit a 4-ounce 
sample of the finished article.
    (c) The appropriate TTB officer may, at any time, require submission 
of samples of:
    (1) Any ingredient used in the manufacture of an article, or;
    (2) Any article.

[T.D. ATF- 199, 50 FR 1962, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5474, Jan. 19, 2001]



Sec.  20.93  Changes to formulas.

    (a) General. Except as provided in paragraph (b) of this section, 
any change of ingredients or quantities of ingredients listed in an 
appoved formula shall constitute a different article for which a 
different approved formula is required by Sec.  20.91.
    (b) Exceptions. A different approved formula is not required for the 
following--
    (1) A change from an ingredient identified in the formula by a brand 
name to the same quantity of a chemically identical ingredient acquired 
under a different brand name, or
    (2) A change of an ingredient which is a coloring material.



Sec.  20.94  Statement of process.

    (a) Manufacturers shall submit a statement of process on Form 
5150.19, in accordance with paragraph (b) of this section, covering the 
following activities:
    (1) If specially denatured spirits are used for laboratory or 
mechanical purposes, other than use of S.D.A. Formula No. 3-A, 3-C, or 
30 for laboratory or mechanical purposes not in the development of a 
product;
    (2) If specially denatured spirits are used in a manufacturing 
process in which none of the specially denatured spirits remains in the 
finished product;
    (3) If specially denatured spirits, completely denatured alcohol, or 
articles are used in a manufacturing process and are to be recovered; or
    (4) If recovered denatured spirits are to be redenatured.
    (b) The manufacturer shall submit a separate Form 5150.19 for each 
activity described in paragraph (a) of this section describing the 
process completely.
    (1) If specially denatured spirits are used for laboratory or 
mechanical purposes, other than use of S.D.A. Formula No. 3-A, 3-C, or 
30 for laboratory

[[Page 509]]

or mechanical purposes not in the development of a product, the Form 
5150.19 shall identify the formula number of specially denatured 
spirits, a description of the laboratory or mechanical use, and the 
approximate annual quantity to be used.
    (2) If the Form 5150.19 is submitted covering activities described 
in paragraphs (a)(2), (a)(3), or (a)(4) of this section, the Form 
5150.19 shall also contain the following information:
    (i) Flow diagrams shall be submitted with the Form 5150.19 clearly 
depicting the equipment in its relative operating sequence, with 
essential connecting pipelines and valves. All major equipment shall be 
identified as to its use. The direction of flow through the pipelines 
shall be indicated in the flow diagram. The flow diagram, shall be 
accompanied by a written description of the flow of materials through 
the system.
    (ii) The statement of process shall describe the chemical 
composition of the recovered spirits. The statement of process shall be 
accompanied by a statement of the intended use of the recovered spirits.



Sec.  20.95  Developmental samples of articles.

    (a) A user may use limited quantities of specially denatured spirits 
in the manufacture of samples of articles for submission in accordance 
with Sec.  20.92.
    (b) A user may prepare developmental samples of articles, of limited 
sizes and quantities, for one-time shipment to prospective customers. 
The user shall maintain records showing--
    (1) The types of product samples prepared,
    (2) The size and number of samples sent, on a one-time basis, to 
each prospective customer, and
    (3) The names and addresses of the prospective customers.

(Approved by the Office of Management and Budget under control number 
1512-0337)

[T.D. ATF- 199, 50 FR 1962, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5474, Jan. 19, 2001]

                            Approval Policies



Sec.  20.100  General.

    (a) In addiition to the limitations in this part, and if necessary 
to protect the revenue or public safety, the appropriate TTB officer, 
when approving Form 5150.19 may:
    (1) Specify on the Form 5150.19 the size of containers in which any 
article may be sold;
    (2) Specify the maximum quantity that may be sold to any person at 
one time; or
    (3) Restrict the sale of an article to a specific class of vendee 
and for a specific use.
    (b) Approval by the appropriate TTB officer of formulas, samples, or 
statements of process means only that they meet the standards of the 
Alcohol and Tobacco Tax and Trade Bureau. The approval does not require 
the issuance of a permit under subpart D of this part to withdraw and 
use specially denatured spirits in those formulas, articles, or 
statements of process.

[T.D. ATF- 199, 50 FR 1962, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5474, Jan. 19, 2001]



Sec.  20.101  Drafting formulas.

    (a) In preparing Form 5150.19, the manufacturer shall, for each 
ingredient containing ethyl alcohol, identify--
    (1) The percent alcohol by volume of the ingredient, if known, and
    (2) The supplier's name and serial number or approval date of the 
supplier's approved formula covering the manufacture of the ingredient.
    (b) In preparing Form 5150.19, manufacturers may--
    (1) Identify ingredients by generic names rather than brand names, 
and
    (2) Identify quantities of ingredients used in ranges rather than in 
finite quantities.
    (c) If ranges of ingredients are used, as authorized by paragraph 
(b)(2) of this section--
    (1) The lower range shall not be zero for any ingredient, and
    (2) The range for usage of specially denatured spirits shall not 
exceed 5%.

[[Page 510]]



Sec.  20.102  Bay rum, alcoholado, or alcoholado-type toilet waters.

    All bay rum, alcoholado, or alcoholado-type toilet waters made with 
specially denatured alcohol shall contain:
    (a) 1.10 grains of benzyldiethyl (2:6-xylylcarbamoyl methyl) 
ammonium benzoate (Bitrex (THS-839)) in each gallon of finished product 
in addition to any of this material used as a denaturant in the 
specially denatured alcohol, or
    (b) 32 grains of tartar emetic in each gallon of finished product, 
or
    (c) 0.5 avoirdupois ounce of sucrose octaacetate in each gallon of 
finished product.



Sec.  20.103  Articles made with S.D.A. Formula No. 39-C.

    Each article made with S.D.A. Formula No. 39-C shall contain in each 
gallon of finished product not less than 2 fluid ounces of perfume 
material (essential oils, isolates, aromatic chemicals, etc.) 
satisfactory to the appropriate TTB officer.



Sec.  20.104  Residual alcohol in spirit vinegar.

    Commercial strength (40 grain) vinegar made from specially denatured 
alcohol may contain trace amounts of residual alcohol, not to exceed 0.5 
percent of alcohol by volume, in the finished product.

                          General-Use Formulas



Sec.  20.111  General.

    (a) An approved formula on Form 5150.19 is not required for an 
article made in accordance with any approved general-use formula 
prescribed by Sec. Sec.  20.112 through 20.119, approved by the 
appropriate TTB officer as an alternate method, or published as a TTB 
ruling in the TTB Bulletin.
    (b) Any interested party may petition TTB for approval of a new 
general-use formula by submitting a letter describing the proposed 
general-use formula to the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0336)



Sec.  20.112  Special industrial solvents general-use formula.

    (a) A special industrial solvent is any article made with any other 
ingredients combined with the ingredients in the minimum ratios 
prescribed in this section. A special industrial solvent shall be made 
with S.D.A. Formula No. 1, 3A, or 3C containing, for every 100 parts (by 
volume) of alcohol:
    (1) No less than 1 part (by volume) of one or any combination of the 
following: methyl isobutyl ketone, methyl n-butyl ketone, nitropropane 
(mixed isomers), or ethylene glycol monoethyl ether, and
    (2) No less than 5 parts (by volume) of one or any combination of 
the following: ethyl acetate (equivalent to 85% ester content, as 
defined in Sec.  21.106 of this chapter), isopropyl alcohol, or methyl 
alcohol.
    (b) Special industrial solvents are intended for use as ingredients 
or solvents in manufacturing processes and shall not be distributed 
through retail channels for sale as consumer commodities for personal or 
household use. When a special industrial solvent is used in the 
manufacture of an article for sale, sufficient ingredients shall be 
added to definitely change the composition and character of the special 
industrial solvent. A special industrial solvent shall not be 
reprocessed into another solvent intended for sale if the other solvent 
would contain more than 50% alcohol by volume.
    (c) If this article contains more than 4% by weight of methyl 
alcohol, the label shall have a skull and crossed bones symbol and the 
following words: ``danger,'' ``poison,'' ``vapor harmful,'' ``May be 
fatal or cause blindness if swallowed,'' and ``Cannot be made 
nonpoisonous.''



Sec.  20.113  Proprietary solvents general-use formula.

    (a) A proprietary solvent is any article made with any other 
ingredients combined with the ingredients in the minimum ratios 
prescribed in this section. A proprietary solvent shall be made with 
S.D.A. Formula No. 1 or 3-A containing, for every 100 parts (by volume) 
of alcohol:

[[Page 511]]

    (1) No less than 1 part (by volume) of one or any combination of the 
following: gasoline, unleaded gasoline, heptane, or rubber hydrocarbon 
solvent, and
    (2) No less than 3 parts (by volume) of one or any combination of 
the following: ethyl acetate (equivalent to 85% ester content, as 
defined in Sec.  21.106 of this chapter), methyl isobutyl ketone, methyl 
n-butyl ketone, tert-butyl alcohol, sec-butyl alcohol, nitropropane 
(mixed isomers), ethylene glycol monoethyl ether, or toluene.
    (b) If this article contains more than 4% by weight of methyl 
alcohol, the label shall have a skull and crossed bones symbol and the 
following words: ``danger,'' ``poison,'' ``vapor harmful,'' ``May be 
fatal or cause blindness if swallowed,'' and ``Cannot be made 
nonpoisonous.''



Sec.  20.114  Tobacco flavor general-use formula.

    Tobacco flavor general-use formula is any finished article made with 
S.D.A. Formula No. 4 or S.D.R. Formula No. 4 which--
    (a) Contains sufficient flavors,
    (b) May contain other ingredients, and
    (c) Is packaged, labeled, and sold or used as a tobacco flavor only.



Sec.  20.115  Ink general-use formula.

    Ink general-use formula is any finished article made with S.D.A. 
Formula No. 1, 3-A, 3-C, 13-A, 23-A, 30, 32, or 33 which--
    (a) Contains sufficient pigments, dyes, or dyestuffs,
    (b) May contain other ingredients, and
    (c) Is packaged, labeled and sold or used as an ink.



Sec.  20.116  Low alcohol general-use formula.

    Low alcohol general-use formula is a finished article containing not 
more than 5% alcohol by volume.



Sec.  20.117  Reagent alcohol general-use formula.

    (a) Reagent alcohol is an article (1) made in accordance with 
paragraph (b) of this section, (2) packaged and labeled in accordance 
with paragraph (c) of this section, and (3) distributed in accordance 
with paragraph (d) of this section.
    (b) Reagent alcohol shall be made with 95 parts (by volume) of 
S.D.A. Formula No. 3-A, and 5 part (by volume) of isopropyl alcohol. 
Water may be added at the time of manufacture. Reagent alcohol shall not 
contain any ingredient other than those named in this paragraph.
    (c)(1) Except as provided in paragraph (d) of this section, reagent 
alcohol shall be packaged by the manufacturer in containers not 
exceeding four liters. Each container shall have affixed to it a label 
with the following words, as conspicuously as any other words on the 
labels: ``Reagent Alcohol, Specially Denatured Alcohol Formula 3-A-95 
parts by vol., and Isopropyl Alcohol--5 parts by vol.''
    (2) Because this article contains more than 4% by weight of methyl 
alcohol, the label shall have a skull and crossbones symbol and the 
following words: ``danger,'' ``poison,'' ``vapor harmful,'' ``May be 
fatal or cause blindness if swallowed,'' and ``Cannot be made 
nonpoisonous
    (3) If water is added at the time of manufacture, the label shall 
reflect the composition of the diluted product. If the addition of water 
reduces the methyl alcohol concentration to less than 4% by weight, the 
requirements of paragraph (c)(2) of this section shall not apply.
    (4) A back label shall be attached showing the word ``ANTIDOTE'', 
followed by suitable directions for an antidote.
    (d)(1) Reagent alcohol may be distributed in containers not 
exceeding 4 liters exclusively to laboratories or persons who require 
reagent alcohol for scientific use.
    (2) Reagent alcohol may be distributed in bulk containers to 
proprietors of bona fide laboratory supply houses for packaging and 
resale, and to any other person who was qualified to receive bulk 
shipments of reagent alcohol on the effective date of this part. Reagent 
alcohol may also be distributed in bulk containers to any person who has 
received approval of a letterhead application containing the following:

[[Page 512]]

    (i) The applicant's name, address, and permit number, if any;
    (ii) A description of the security measures which will be taken to 
segregate reagent alcohol from denatured spirits or other alcohol which 
may be on the same premises;
    (iii) A statement that labels required by paragraph (c) of this 
section will be affixed to containers of reagent alcohol filled by the 
applicant;
    (iv) A statement that the applicant will allow appropriate TTB 
officers to inspect the applicant's premises; and
    (v) A statement that the applicant will comply with the requirements 
of Sec.  20.133.

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF- 199, 50 FR 1962, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5474, Jan. 19, 2001]



Sec.  20.118  Rubbing alcohol general-use formula.

    (a) Rubbing alcohol is an article made with S.D.A. Formula No. 23-H 
(1) containing 70% ethyl alcohol by volume (2) made in accordance with 
one of the two formulas prescribed in paragraph (b) of this section, and 
(3) labeled in accordance with Sec.  20.134(e) of this part.
    (b) Either of the following two formulas is approved for 
manufacturing rubbing alcohol:

                                Formula A
 
S.D.A. formula no. 23-H...................  103.3 fl. oz.
Sucrose octa-acetate......................  0.5 av.oz.
Water.....................................  q.s. 1 gallon.
 
  (If desired, ordorous, medicinal and/or colorative ingredients may be
                                 added.)
                                Formula B
 
S.D.A. formula no. 23-H...................  103.3 fl. oz.
Benzyldiethyl (2: 6-xylylcarbamoyl methyl)  0.88 grains.
 ammonium benzoate (Bitrex (THS-839)).
Water.....................................  q.s. 1 gallon.
 
  (If desired, odorous, medicinal and/or colorative ingredients may be
                                 added.)
 



Sec.  20.119  Toilet preparations containing not less than 10% essential oils general-use formula.

    This general-use formula shall consist of an article containing not 
less than 10% essential oils by volume made with a formula of S.D.A. 
authorized for that article on the following list:

------------------------------------------------------------------------
                                       Product
               Article                   code      Formula authorized
                                         No.
------------------------------------------------------------------------
Bath preparations....................      142  1, 3-A, 3-B, 3-C, 23-A,
                                                 30, 36, 38-B, 39-B, 39-
                                                 C, 40, 40-A, 40-B, 40-
                                                 C.
Colognes.............................      122  38-B, 39, 39-A, 39-B, 39-
                                                 C, 40, 40-A, 40-B, 40-
                                                 C.
Deodorants (body)....................      114  23-A, 38-B, 39-B, 39-C,
                                                 40, 40-A, 40-B, 40-C.
Hair and scalp preparations..........      111  3-B, 23-A, 23-F, 23-H,
                                                 37, 38-B, 39, 39-A, 39-
                                                 B, 39-C, 39-D, 40, 40-
                                                 A, 40-B, 40-C.
Lotions and creams (body, face, and        113  23-A, 23-H, 31-A, 37, 38-
 hand).                                          B, 39, 39-B, 39-C, 40,
                                                 40-A, 40-B, 40-C.
Perfume materials (processing).......      121  38-B, 39, 39-B, 39-C,
                                                 40, 40-A, 40-B, 40-C.
Perfumes and perfume tinctures.......      121  38-B, 39, 39-B, 39-C,
                                                 40, 40-A, 40-B, 40-C.
Shampoos.............................      141  1, 3-A, 3-B, 3-C, 23-A,
                                                 27-B, 31-A, 36, 38-B,
                                                 39-A, 39-B, 40, 40-A,
                                                 40-B, 40-C.
Soaps, toilet........................      142  1, 3-A, 3-C, 23-A, 30,
                                                 36, 38-B, 39-B, 39-C,
                                                 40, 40-A, 40-B, 40-C.
Toilet waters........................      122  38-B, 39, 39-A, 39-B, 39-
                                                 C, 40, 40-A, 40-B, 40-
                                                 C.
------------------------------------------------------------------------


[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



               Subpart G_Requirements Relating to Articles



Sec.  20.131  Scope of subpart.

    This subpart prescribes requirements relating to articles which may 
affect persons who are not required to obtain a permit under this part. 
These requirements, described in general terms Sec.  20.132, are imposed 
by law. Criminal penalties imposed for violating these requirements are 
described in Sec.  20.137.

[[Page 513]]

In this subpart, the term ``article'' means any substance or preparation 
in the manufacture of which denatured spirits are used, including the 
product obtained by further manufacture or by combination with other 
materials, if the article subjected to further manufacture or 
combination contained denatured spirits.



Sec.  20.132  General requirements.

    (a) Internal medicinal preparations and flavoring extracts--(1) 
Manufacture. No person shall use denatured spirits in the manufacture of 
medicinal preparations or flavoring extracts for internal human use 
where any of the spirits remain in the finished product.
    (2) Sale. No person shall sell or offer for sale for internal human 
use any medicinal preparations or flavoring extracts manufactured from 
denatured distilled spirits where any of the spirits remain in the 
finished product.
    (3) Labeling and advertising. Labeling and advertising of articles 
shall not imply that the article is intended for or suitable for 
internal human use.
    (b) Beverage use. No person shall sell or offer for sale any article 
containing denatured spirits for beverage purposes. Labeling and 
advertising of articles shall not imply that the article is intended for 
or suitable for use as a beverage.
    (c) Trafficking in articles. The appropriate TTB officer may impose 
the requirements of Sec.  20.133 on any person who reprocesses, 
rebottles, or repackages articles, deals in articles, or receives 
articles in containers exceeding one gallon.



Sec.  20.133  Registration of persons trafficking in articles.

    (a) Upon written notice from the appropriate TTB officer, any person 
who reprocesses, rebottles, or repackages articles, deals in articles, 
or receives articles in containers exceeding one gallon may be required 
to submit any of the following:
    (1) Nature of activities to be conducted;
    (2) Name and address of supplier;
    (3) Size and type of containers in which articles will be received 
and, if applicable, rebottled or repackaged;
    (4) Maximum quantity of each article to be obtained during any 
calendar month;
    (5) Description of the reprocessing operation;
    (6) Samples of the reprocessed article;
    (7) Labels and advertising materials; and,
    (8) Names and addresses of recipients of articles and quantities 
received;
    (b) The appropriate TTB officer shall prohibit any of the activities 
described in paragraph (a) of this section if the activities pose a 
jeopardy to the revenue, or a burden in administering this part.

(Approved by the Office of Management and Budget under control number 
1512-0336)



Sec.  20.134  Labeling.

    (a) General. Except as provided in paragraph (b) or (c) of this 
section, each article shall, before removal from the manufacturer's 
premises, have a label affixed to its immediate container identifying 
(1) the name, trade name or brand name of the article, and (2) the name 
and address (city and State) of the manufacturer or distributor of the 
article.
    (b) Articles for external human use. Except as provided in paragraph 
(c) of this section, an article intended for external human use shall, 
before removal from the manufacturer's premises, have a label affixed to 
its immediate container identifying the name, trade name or brand name 
of the article. If the volume of the article in the container exceeds 8-
fluid ounces, the label shall also show the information required by 
paragraph (b) (1) or (2) of this section.
    (1) If the article was packaged or bottled by the person who 
manufactured it, the label shall identify--
    (i) The manufacturer's name and the address (city and State) of the 
actual place or places where article was manufactured, or
    (ii) The name and principal office address (city and State) of the 
manufacturer, and the permit number or numbers of the place or places of 
manufacture. However, in lieu of such permit number or numbers, the 
place or places where the manufacturing operation occurred may be 
indicated by a coding

[[Page 514]]

system. Prior to using a coding system, the manufacturer shall send a 
notice explaining the coding system to the appropriate TTB officer, or
    (iii) The manufacturer's permit number and the name and address 
(city and State), of the person for whom the article was packaged and 
bottled.
    (2) If the article was packaged or bottled by a person other than 
the manufacturer of the article, the label shall identify--
    (i) The name and address (city and State) of the person by whom or 
for whom the article was packaged or bottled, and
    (ii) The permit number of the manufacturer or distributor.
    (3) If a permit number is required to be shown on the label, it may 
be shown utilizing a State code number, in accordance with Sec.  20.135.
    (c) Shipment of unlabeled articles. A manufacturer may, subject to 
the approval of the appropriate TTB officer and compliance with Sec.  
20.133, remove an unlabeled article from the manufacturer's premises, if 
the outer containers of the article are labeled with the name, trade 
name or brand name of the article and the names and addresses (city and 
State) of the manufacturer and the consignee.
    (d) Use of the words ``denatured alcohol.'' If the words ``denatured 
alcohol'' appear on the label of an article, the label shall also have a 
name, trade name or brand name which appears as conspicuously as the 
words ``denatured alcohol.''
    (e) Use of the words ``rubbing alcohol.'' If the words ``rubbing 
alcohol'' appear on the label of an article, (1) the article shall be 
made in accordance with Sec.  20.118 of this part, and (2) the label (i) 
shall have the words ``rubbing alcohol'' in letters of the same color 
and size, (ii) shall identify the name and address (city and State) of 
the manufacturer or bottler, (iii) shall state the alcohol content as 
70% by volume with no reference to the proof strength, and (iv) shall 
have the warning ``For external use only. If taken internally, will 
cause serious gastric disturbances.'' An alcohol rub made from any other 
material, such as isopropyl alcohol, shall not be labeled ``Rubbing 
Alcohol'' unless the label informs the consumer that the preparation was 
not made with specially denatured alcohol.
    (f) Distributor labeling. Distributors of an article may place 
minimal identifying information (name, address and a phrase such as 
``distributed by'') on the label of that article (or on an additional 
label) without qualifying in any manner under this part; provided:
    (1) The article is produced, packaged and labeled as provided in 
this part; and
    (2) The distributor does not produce, repackage or reprocess the 
article.

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by ATF-332, 57 FR 
40849, Sept. 8, 1992]



Sec.  20.135  State code numbers.

    In showing the permit number on labels as provided in Sec.  
20.134(b)(2)(ii), the permittee who distributes the article may 
substitute the appropriate number shown below for the State 
abbreviation. For example, permit number SDA-CONN-1234 may be shown on 
the labels as SDA-07-1234. The code numbers for the respective State are 
as follows:

01--Alabama
02--Alaska
03--Arizona
04--Arkansas
05--California
06--Colorado
07--Connecticut
08--Delaware
09--DC
10--Florida
11--Georgia
12--Hawaii
13--Idaho
14--Illinois
15--Indiana
16--Iowa
17--Kansas
18--Kentucky
19--Louisiana
20--Maine
21--Maryland
22--Massachusetts
23--Michigan
24--Minnesota
25--Mississippi
26--Missouri
27--Montana
28--Nebraska
29--Nevada
30--New Hampshire
31--New Jersey
32--New Mexico
33--New York
34--North Carolina
35--North Dakota
36--Ohio
37--Oklahoma
38--Oregon
39--Pennsylvania
40--Rhode Island
41--South Carolina
42--South Dakota
43--Tennessee
44--Texas
45--Utah
46--Vermont
47--Virginia
48--Washington
49--West Virginia
50--Wisconsin
51--Wyoming

[[Page 515]]





Sec.  20.136  Labeling regulations of other agencies.

    (a) General. Other Federal agencies have promulgated regulations 
which may affect labeling of articles, as described in this section.
    (b) Consumer Product Safety Commission. The Consumer Product Safety 
Commission has promulgated regulations to administer the Federal 
Hazardous Substances Act. The regulations in 16 CFR Chapter II require 
warning labels for products containing certain specified substances. For 
example, S.D.A. Formula Nos. 3-A and 30 require warning labels because 
they contain methyl alcohol, a hazardous substance at levels of 4% or 
more by weight. Manufacturers, reprocessors, rebottlers, and repackagers 
who convey articles containing strong chemicals should refer to 16 CFR 
Chapter II for warning label requirements.
    (c) Federal Trade Commission. The Federal Trade Commission (F.T.C.) 
has promulgated regulations to administer the Fair Packaging and 
Labeling Act. The regulations in 16 CFR Chapter I affect packaging and 
labeling of ``consumer commodities.'' The term ``consumer commodities'' 
generally means products intended for retail sale to an individual for 
personal or household use. The F.T.C. regulations do not apply to drugs, 
medical devices, or cosmetics for which the Food and Drug Administration 
enforces the Fair Packaging and Labeling Act (see paragraph (d) of this 
section). Manufacturers, reprocessors, rebottlers, and repackagers who 
convey articles which are ``consumer commodities'' should refer to 16 
CFR Chapter I for packaging and labeling requirements.
    (d) Food and Drug Administration, Department of Health and Human 
Services. The Food and Drug Administration has promulgated regualtions 
in 21 CFR Chapter I to administer the Fair Packaging and Labeling Act 
(as it applies to drugs, medical devices, or cosmetics) and the Federal 
Food, Drug and Cosmetic Act. Manufacturers, reprocessors, rebottlers, 
and repackagers who convey articles which are drugs, medical devices, or 
cosmetics should refer to 21 CFR Chapter I for packaging and labeling 
requirements.



Sec.  20.137  Penalties.

    Violation of the requirements prescribed in Sec.  20.132 is 
punishable by a fine of not more than $10,000 and/or imprisonment for 
not more than 5 years for each offense. In addition, persons who 
manufacture (including reprocess), sell, or transport articles in 
violation of this part are liable for payment of a tax on the articles 
at the rate imposed by law on distilled spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1402 (26 U.S.C. 
5001, 5607))



         Subpart H_Sale and Use of Completely Denatured Alcohol



Sec.  20.141  General.

    (a) Each formula of completely denatured alcohol may be sold and 
used for any purpose, subject to the limitations in the formula 
prescribed in part 21 of this chapter. For example, C.D.A. Formula No. 
18 or 19 may be used:
    (1) In the manufacture of definite chemical substances where the 
alcohol is changed into some other chemical substance and does not 
appear in the finished product;
    (2) In the arts and industries, including but not limited to the 
manufacture of cleaning fluids, detergents, proprietary antifreeze 
solutions, thinners, lacquers, and brake fluids; and
    (3) For fuel, light, and power.
    (b) Completely denatured alcohol may not be used in the manufacture 
of preparations or products for internal human use or consumption where 
any of the alcohol or the denaturants used in that alcohol remain in the 
finished product.
    (c) Persons distributing and using (but not recovering for reuse) 
completely denatured alcohol are not required to obtain a permit or file 
a bond under this part.
    (d) Any person recovering completely denatured alcohol for reuse 
shall obtain a permit under subpart D of this part if the recovered 
alcohol does not contain all of the original denaturants of the 
completely denatured alcohol.

[[Page 516]]

    (e) Containers of products manufactured with completely denatured 
alcohol (such as proprietary antifreeze solutions, solvents, thinners, 
and lacquers) may not be branded as completely denatured alcohol. These 
products may not be advertised, shipped, sold, or offered for sale as 
completely denatured alcohol.



Sec.  20.142  Records of bulk conveyances.

    If completely denatured alcohol is to be shipped in a bulk 
conveyance, the shipment shall be accompanied by a record which 
identifies each car, truck, or compartment, the name and location (city 
or town and State) of both the consignor and consignee, the quantity in 
gallons, and the formula number of the completely denatured alcohol.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.143  Receipt.

    Unless completely denatured alcohol received in bulk conveyances or 
by pipeline is to be used immediately, it shall be deposited in storage 
tanks, stored in the tank cars or tank trucks in which received, or 
drawn into packages which shall be marked or labeled as required by this 
subpart.



Sec.  20.144  Packages of completely denatured alcohol.

    Packages containing more than 5 gallons of completely denatured 
alcohol shall be of metal or other equally suitable material approved by 
the appropriate TTB officer. The openings of these packages shall be 
sealed with appropriate seals furnished by the person filling the 
packages.



Sec.  20.145  Encased containers.

    Completely denatured alcohol may be packaged by distributors in 
unlabeled containers which are completely encased in wood, fiberboard, 
or similar material so that the surface (including the opening) of the 
actual container is not exposed. When completely denatured spirits are 
packaged in unlabeled containers, the distributor shall apply the 
required marks or label to an exposed surface of the case. The case 
shall be so constructed that the portion containing the marks will be 
securely attached to the encased container until all of the contents 
have been removed. A statement reading ``Do Not Remove Inner Container 
Until Emptied,'' or words of similar meaning, shall be placed on the 
portion of the case bearing the marks.



Sec.  20.146  Labels on bulk containers.

    (a) Completely denatured alcohol in bulk containers with a capacity 
exceeding 1 gallon shall be labeled on the head or side of the container 
or on the side of the casing, with the following:
    (1) The name and address of the person filling the containers;
    (2) The contents in gallons:
    (3) The words ``Completely Denatured Alcohol''; and
    (4) The formula number.
    (b) Packages of 5 gallons or less shall bear labels required by 
Sec.  20.147, in lieu of the labels required by this section.
    (c) The letters and figures used for marking packages shall be large 
enough to be easily read and, when printed, labeled, or stenciled, shall 
be in permanent ink and shall contrast distinctly with the background to 
which applied.
    (d) Packages may also be marked with the brand name and a statement 
to the type of merchandise contained in the package if these markings do 
not obscure or detract from the required markings. The person filling 
the packages shall maintain the record required by Sec.  20.261.



Sec.  20.147  Labels on consumer-size containers.

    (a) Each consumer-size container with a capacity of 5 gallons or 
less of completely denatured alcohol sold or offered for sale by a 
distributor shall bear a label showing, in plain, legible letters, the 
following:
    (1) The words ``Completely Denatured Alcohol'';
    (2) The statement ``Caution--contains poisonous ingredients''; and
    (3) The name and address of the distributor filling the packages, 
unless shown elsewhere on the package.
    (b) No other information (except that required by State or Federal 
law) may be shown on the label without the appropriate TTB officer's 
approval. The

[[Page 517]]

word ``pure'', qualifying denatured alcohol may not appear on the label 
or the container.
    (c) The requirements of paragraphs (a) and (b) of this section apply 
to any person who sells completely denatured alcohol at wholesale or 
retail.



Sec.  20.148  Manufacture of articles with completely denatured alcohol.

    Articles may be made with completely denatured alcohol for sale 
under brand names. If ingredients are added in sufficient quantities to 
materially change the composition and character of the completely 
denatured alcohol, the article is not classified as completely denatured 
alcohol and may not be marked, branded, or sold as completely denatured 
alcohol.



Sec.  20.149  Records.

    Records of transactions in completely denatured alcohol and articles 
made with completely denatured alcohol shall be maintained as prescribed 
in Sec.  20.261.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Subpart I_Operations by Dealers and Users of Specially Denatured Spirits

                  Obtaining Specially Denatured Spirits



Sec.  20.161  Withdrawals under permit.

    (a) General. The permit, Form 5150.9, issued under subpart D of this 
part, authorizes a person to withdraw specially denatured spirits from 
the bonded premises of a distilled spirits plant or a dealer. If the 
permittee is located in a foreign-trade zone, the permit will be 
qualified so that the permittee may obtain domestic specially denatured 
spirits only. The alcohol in domestic denatured spirits must be produced 
entirely in the United States, including Puerto Rico.
    (b) Photocopying of permit, Form 5150.9. (1) As provided in Sec.  
20.54, a permittee may make photocopies of its permit, or amended 
permit, for the exclusive purpose of furnishing proof of authorization 
to withdraw specially denatured spirits.
    (2) A permittee need only furnish the photocopy of its permit, or 
amended permit, to a distilled spirits plant or dealer for the ``initial 
order'' from that distilled spirits plant or dealer.
    (3) When a permittee makes photocopies of its permit, Form 5150.9, 
each copy must be signed, dated, and contain the word ``COPY'' across 
the face.
    (4) A permittee is responsible for obtaining and, as applicable, 
destroying all photocopies of its permit from distilled spirits plants 
and dealers when: (i) An amended or corrected permit is issued which 
supersedes the copy on file, (ii) the permit is canceled by reason of 
requalification as a new permittee, (iii) the permit is revoked or 
suspended, or (iv) upon permanent discontinuance of dealing in or using 
specially denatured spirits.
    (c) Withdrawals. (1) When a permittee places an initial order for 
specially denatured spirits the permittee will forward a signed copy of 
its permit, for retention by the distilled spirits plant or dealer, 
along with the purchase request.
    (2) When the permittee places a subsequent order for specially 
denatured spirits, the purchase request, in addition to any other 
information, will contain the permit identification number along with a 
statement that the permittee possesses a valid permit to withdraw 
specially denatured spirits, a copy of which is on file with the 
supplier.
    (3) Shipments will not be made by a proprietor of a distilled 
spirits plant or dealer until it is in possession of a signed copy of a 
valid permit, Form 5150.9, unless the appropriate TTB officer authorizes 
the shipment.

(19 U.S.C. 81c; Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended, 
1395, as amended (26 U.S.C. 5271, 5555))

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985, as 
amended by T.D. ATF-274, 53 FR 25156, July 5, 1988]



Sec.  20.162  Regulation of withdrawals.

    (a) Each permittee shall regulate its withdrawals of specially 
denatured spirits to ensure that (1) the quantity on hand and 
unaccounted for does not

[[Page 518]]

exceed the capacity of the storage facilities, and (2) the cumulative 
quantity withdrawn or received in any calendar year does not exceed the 
quantity authorized by the permit, Form 5150.9. Recovered alcohol will 
be taken into account in determining the total quantity of alcohol on 
hand.
    (b) For the purpose of this section, specially denatured spirits and 
recovered alcohol will be considered as unaccounted for if lost under 
circumstances where a claim for allowance is required by this part and 
the claim has not been allowed, or if used or disposed of in any manner 
not provided for in this part.



Sec.  20.163  Receipt and storage of specially denatured spirits.

    (a) Receipt of bulk conveyances or by pipeline. A permittee who 
receives specially denatured spirits in bulk conveyances or by pipeline 
shall: (1) Deposit the specially denatured spirits into storage tanks as 
provided by Sec.  20.165; (2) draw the specially denatured spirits into 
packages marked and labeled as required by paragraph (b) of this 
section; (3) store the specially denatured spirits in the tank truck or 
tank car in which received if the conveyance is effectively immobilized 
within an enclosure secured to prevent unauthorized access; or (4) use 
the specially denatured spirits immediately in accordance with an 
approved formula or statement of process.
    (b) Marks on portable containers. (1) A user who receives specially 
denatured spirits in bulk conveyances or by pipeline and who transfers 
the spirits to drums shall plainly label them to show (i) the words 
``Specially Denatured Alcohol'' or ``Specially Denatured Rum'', and (ii) 
the formula number.
    (2) A dealer who fills packages of specially denatured spirits shall 
label them in accordance with Sec.  20.178.
    (c) Receipt of portable containers. A permittee who receives 
specially denatured spirits in portable containers such as drums or 
barrels shall transfer the specially denatured spirits to storage tanks 
or deposit the specially denatured spirits in a storeroom as provided in 
Sec.  20.165, or use the spirits in accordance with an approved formula 
or statement of process. A user may not transfer the spirits to other 
portable containers for storage except in the following circumstances:
    (1) Contents of damaged packages may be transferred to new packages 
to prevent loss or waste; or
    (2) Contents of portable containers may be transferred to ``safety'' 
containers to comply with city or State fire code regulations, or on 
filing notice with the appropriate TTB officer to comply with the safety 
practices of the user. The user shall label the new containers with the 
information marked on the original containers and shall also identify 
the new containers as ``repackaged.''
    (d) Record of receipt. Records of receipt will consist of the 
consignor's invoice of bill or lading which identifies the quantities, 
formula number(s), and serial numbers of containers of specially 
denatured spirits, and which has been annotated by the consignee with 
the date of receipt of the shipment.
    (e) Losses. On receipt of specially denatured spirits, the user 
shall determine and account for any losses in transit in accordance with 
subpart J of this part.

(Approved by the Office of Management and Budget under control number 
1512-0337)

                         Premises and Equipment



Sec.  20.164  Premises.

    (a) A permittee shall have premises suitable for the business being 
conducted and adequate for protecting the revenue.
    (b) Storage facilities shall be provided on the premises for 
specially denatured spirits received or recovered. Except as provided in 
paragraph (c) of this section, storage facilities shall consist of 
storerooms, compartments, or stationary storage tanks (not necessarily 
in a room or building).
    (c) A permittee receiving and storing specially denatured spirits in 
tank cars or tank trucks, as provided in Sec.  20.163, need not provide 
stationary storage tanks.
    (d) If specially denatured spirits are received at or removed from a 
permittee's premises in bulk conveyances, suitable facilities for those 
operations shall be provided.

[[Page 519]]

    (e) The appropriate TTB officer may require the storage facilities 
or distilling equipment to be secured with Government locks or seals, or 
both.



Sec.  20.165  Storage facilities.

    (a) Storerooms shall be constructed and secured to prevent 
unauthorized access and the entrance doors shall be equipped for 
locking.
    (b) Each stationary tank used for the storage of specially denatured 
spirits shall be equipped for locking to control access to the denatured 
spirits. An accurate means of measuring its contents shall be provided 
for each tank.
    (c) Storerooms and storage tanks shall be kept locked when 
unattended. A storage cabinet or locker kept inside a room which is 
locked when unattended is considered to be adequately secured.



Sec.  20.166  Stills and other equipment.

    If recovered denatured spirits or articles are to be restored on the 
permittee's premises, all equipment to be used in the restoration 
process shall be located on the permit premises. Distilling apparatus or 
other equipment, including pipelines, for restoration or for recovery, 
shall be constructed and secured in such a manner as to prevent 
unauthorized access to the denatured spirits and so arranged as to be 
readily inspected by appropriate TTB officers.



Sec.  20.167  Recovered and restored denatured spirits tanks.

    Suitable storage tanks shall be provided for recovered and restored 
denatured spirits. Each storage tank for recovered and restored 
denatured spirits shall be--
    (a) Durably marked to show its capacity and use,
    (b) Equipped for locking to control access to the contents, and
    (c) Provided with an accurate means of measuring its contents.

                          Inventory and Records



Sec.  20.170  Physical inventory.

    Once in each calendar year and when requested by an appropriate TTB 
officer, each permittee shall perform and record a physical inventory of 
each formula of new and recovered specially denatured spirits.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.171  Record of shipment.

    (a) Dealer. When a dealer transfers new or recovered specially 
denatured spirits to a distilled spirits plant or permittee in the 
normal course of business or in accordance with Sec.  20.216 or Sec.  
20.231 of this part, the dealer shall prepare a record of shipment in 
accordance with paragraph (c) of this section. Dealers shall 
consistently use the same record series for the record of shipment. A 
dealer's record of shipment shall show a serial number or other unique 
number.
    (b) User. When a user transfers new or recovered specially denatured 
spirits to a distilled spirits plant or permittee in accordance with 
Sec.  20.216, 20.231, or 20.235 of this part, the user shall prepare a 
record of shipment in accordance with paragraph (c) of this section.
    (c) Record. The record of shipment shall consist of an invoice, bill 
of lading or similar document which shows the following information:
    (1) Date of shipment;
    (2) Consignor's name and address;
    (3) Consignee's name, address, and permit number or distilled 
spirits plant registry number;
    (4) For each formula of specially denatured spirits--
    (i) The formula number,
    (ii) The number and sizes of containers, and
    (iii) The total quantity; and,
    (5) If the specially denatured spirits are recovered, the word 
``recovered'' shall appear on the record.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.172  Records.

    In addition to the records required by this subpart, permittees 
shall maintain records required in subpart P of this part.

(Approved by the Office of Management and Budget under control number 
1512-0337)

[[Page 520]]

                          Operations by Dealers



Sec.  20.175  Shipment for account of another dealer.

    (a) A dealer may order specially denatured spirits shipped directly 
from a denaturer or another dealer to a customer (dealer or user).
    (b) The dealer who ordered the shipment of specially denatured 
spirits shall forward a copy of his or her permit, Form 5150.9, and the 
consignee's permit, Form 5150.9, to the person actually shipping the 
specially denatured spirits.
    (c) The dealer who ordered the shipment shall be liable for the tax 
while the specially denatured spirits are in transit and the person 
actually shipping the specially denatured spirits shall not be liable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 
FR 17939, Apr. 12, 2002; 67 FR 20868, Apr. 26, 2002]



Sec.  20.176  Packaging by a dealer.

    A dealer may package specially denatured spirits in containers of 
any size necessary for the conduct of business. After filling packages, 
the dealer shall accurately determine the contents of each package. 
After filling drums, the dealer shall seal all the drum openings with 
the dealer's own seals. Packages of specially denatured spirits shall be 
marked or labeled in accordance with Sec.  20.178.



Sec.  20.177  Encased containers.

    (a) A dealer may package specially denatured spirits in unlabeled 
containers which are completely encased in wood, fiberboard, or similar 
material. The total surface (including the opening) of the actual 
container of the spirits must be enclosed.
    (b) When specially denatured spirits are packaged in unlabeled 
containers, the dealer shall apply the required marks to an exposed 
surface of the case. The case shall be constructed so that the portion 
bearing the marks will remain securely attached to the encased container 
until all the spirits have been removed. A statement reading ``Do not 
remove inner container until emptied,'' or of similar meaning, shall be 
placed on the portion of the case bearing the marks.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 
FR 17939, Apr. 12, 2002]



Sec.  20.178  Marks and brands on containers of specially denatured spirits.

    (a) Required marks. Each dealer who fills packages of specially 
denatured spirits shall mark or label each package with the following 
information:
    (1) Quantity, in gallons, or in liters and gallons;
    (2) Package identification number or serial number (see Sec.  
20.179);
    (3) Name and permit number of the dealer;
    (4) The words ``Specially Denatured Alcohol'' or ``Specially 
Denatured Rum,'' or an appropriate abbreviation;
    (5) Formula number;
    (6) Proof, if the spirits were denatured at other than 190[deg] 
proof;
    (7) Denaturants used, if alcohol was denatured under an approved 
formula authorizing a choice of denaturants; and
    (8) Quantity of denaturants used, if the approved formula authorizes 
a choice of quantities of denaturants.
    (b) Location of marks. The dealer shall place the required marks on 
the head of the package or on the side of the case.
    (c) Other marks. Other marks authorized by this paragraph may not 
interfere with or detract from the marks required by this subpart. The 
dealer may place marks other than the required marks on the Government 
head or Government side of the package if the other marks--
    (1) Are authorized by the appropriate TTB officer, or
    (2) Consist of a brand name, or consist of caution notices, or 
consist of other material required by Federal or State law or 
regulations.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))

[[Page 521]]



Sec.  20.179  Package identification number or serial number.

    (a) Requirement. A dealer who fills packages with specially 
denatured spirits shall mark each package with a package identification 
number, in accordance with paragraph (b) of this section, or a serial 
number, in accordance with paragraph (c) of this section.
    (b) Package identification number. A package identification number 
shall apply to all of the packages filled at the same time on which all 
of the marks required by Sec.  20.178 (a)(1) and (a)(3) through (a)(8) 
are identical. All of the packages in one lot shall be the same type, 
have the same rated capacity, and be uniformly filled with the same 
quantity. A package identification number shall be derived from the date 
on which the package is filled, and shall consist of the following 
elements, in the order shown--
    (1) The last two digits of the calendar year;
    (2) An alphabetical designation from ``A'' through ``L,'' 
representing January through December, in that order;
    (3) The digits corresponding to the day of the month; and
    (4) A letter suffix when more than one identical lot is filled into 
packages during the same day. For successive lots after the first lot, a 
letter suffix shall be added in alphabetical order, with ``A'' 
representing the second lot of the day, ``B'' representing the third lot 
of the day, etc. (e.g., the first three lots filled into packages on 
November 19, 1983, would be identified as ``83K19,'' ``83K19A,'' and 
``83K19B'').
    (c) Serial number. A consecutive serial number shall be marked on 
each package, beginning with the number ``1'' and continuing in regular 
sequence. The dealer shall use a separate but similar number series for 
packages containing specially denatured rum. When any numbering series 
reaches ``1,000,000'', the dealer may recommence the series by providing 
an alphabetical prefix or suffix for each number in the new series.
    (d) Continuation of numbering series. If a change in proprietorship, 
name, or trade name occurs, the numbering system in use at the time of 
the change may be continued. If serial numbers are used at the time of a 
change, the numbering series in use at the time of the change may be 
continued.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended (26 U.S.C. 5206))



Sec.  20.180  Record of packages filled.

    (a) Requirement to keep record. A dealer shall keep a record when 
filling packages with specially denatured spirits. The dealer shall keep 
a separate record of packages for each formula of specially denatured 
alcohol and specially denatured rum.
    (b) Information to be shown. The dealer shall show the following 
information on the record of packages filled--
    (1) Date packages filled;
    (2) Package identification number and number of packages in each 
identical lot filled, or the serial numbers;
    (3) Kinds of packages;
    (4) Wine gallons or liters;
    (5) Kind of specially denatured spirits and formula number; and
    (6) Proof, if the spirits were denatured at other than 190[deg] 
proof.
    (c) Filing. The dealer shall retain the record at the premises and 
shall file it according to the serial numbers or package identification 
numbers of the packages.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.181  Limitations on shipments.

    (a) Shipments made under permit. A dealer may ship specially 
denatured spirits to users and other dealers under the consignee's 
permit, Form 5150.9. The dealer may not ship specially denatured spirits 
before receiving the consignee's permit, Form 5150.9, unless the 
shipment has been authorized by the appropriate TTB officer.
    (b) Shipments of samples. A dealer may ship samples of specially 
denatured spirits to the persons authorized to receive them, and in the 
quantities permitted by subpart O of this part.



Sec.  20.182  Bulk shipments.

    (a) Use. Dealers may ship specially denatured spirits in bulk 
conveyances. The dealer shall seal the bulk conveyances at the time of 
filling with railroad or other appropriate serially numbered seals 
dissimilar in marking from

[[Page 522]]

cap seals used by the Alcohol and Tobacco Tax and Trade Bureau. 
Specially denatured alcohol or specially denatured rum from only one 
consignor may be placed in any one compartment of a bulk conveyance. Not 
less than the entire contents of any one compartment may be delivered to 
any one consignee at any one premises.
    (b) Construction of bulk conveyances. Bulk conveyances shall be 
constructed to conform to the following requirements:
    (1) All openings (including valves) shall be constructed so that 
they may be sealed to prevent unauthorized access to the contents of the 
conveyance. Outlets, valves or other openings to or from tank cars may 
be constructed in such a manner that they may be closed and securely 
fastened on the inside.
    (2) If the conveyance has two or more compartments, the outlets of 
each shall be so equipped that delivery of any compartment will not 
afford access to the contents of any other compartment.
    (3) Each compartment shall be arranged so that it can be completely 
drained.
    (4) Each tank car or tank truck shall be permanently and legibly 
marked with its number, capacity in gallons or liters, and the name or 
symbol of its owner. If the tank car or truck consists of two or more 
compartments, each compartment shall be identified and the capacity of 
each shall be marked thereon.
    (5) Permanent facilities must be provided on tank trucks to permit 
ready examination of manholes or other openings.
    (6) Calibrated charts, prepared or certified by recognized 
authorities or engineers, showing the capacity of each compartment in 
gallons or liters for each inch of depth, must accompany each tank 
truck, tank ship, or tank barge.

                           Operations by Users



Sec.  20.189  Use of specially denatured spirits.

    (a) Specially denatured spirits shall not be used for any purpose 
not authorized in this section.
    (b) Specially denatured spirits shall be used (1) in the manufacture 
of articles in accordance with the formula requirements of subpart F of 
this part, (2) for other purposes in accordance with approved statements 
of process (Sec.  20.94), or (3) in the case of S.D.A. Formula No. 3-A, 
3-C, or 30, for mechanical or laboratory purposes not involving the 
development of a product.
    (c) Each formula of specially denatured spirits may be used only for 
the purposes authorized under part 21 of this chapter.
    (d) By the use of essential oils and chemicals used in the 
manufacture of each liquid article, the user shall ensure that the 
finished article cannot be reclaimed or diverted to beverage use or 
internal human use.
    (e) Each finished article shall conform to the sample, if any, and 
formula for that article approved in accordance with subpart F of this 
part.

[T.D. ATF- 199, 50 FR 1962, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5475, Jan. 19, 2001]



Sec.  20.190  Diversion of articles for internal human use or beverage use.

    An appropriate TTB officer who has reason to believe that the 
spirits in any article are being reclaimed or diverted to beverage or 
internal human use may direct the permittee to modify an approved 
formula to prevent the reclamation or diversion. The appropriate TTB 
officer may require the permittee to discontinue the use of the formula 
until it has been modified and again approved.

[T.D. ATF- 435, 66 FR 5475, Jan. 19, 2001]



Sec.  20.191  Bulk articles.

    Users who convey articles in containers exceeding one gallon may 
provide the recipient with a photocopy of subpart G of this part to 
ensure compliance with requirements relating to articles. Copies of 
subpart G are printed as TTB Publication 5150.5 and are available as 
provided in Sec.  20.21(b).

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-249, 52 
FR 5961, Feb. 27, 1987]

[[Page 523]]



Sec.  20.192  Manufacturing record.

    For each manufacturing process in which specially denatured spirits 
are used, the user shall record:
    (a) Quantity and formula number of new or recovered specially 
denatured spirits used;
    (b) Names and quantities of ingredients used; and
    (c) Name, trade name or brand name and alcoholic content of each 
article or intermediate product manufactured, as applicable.

(Approved by the Office of Management and Budget under control number 
1512-0337)



                            Subpart J_Losses



Sec.  20.201  Liability and responsibility of carrier.

    (a) A person or carrier transporting specially denatured spirits to 
a consignee or returning it to the consignor is responsible for the safe 
delivery and is accountable for any specially denatured spirits not 
delivered.
    (b) A person or carrier transporting specially denatured spirits in 
violation of any law or regulation pertaining thereto, is subject to all 
provisions of law relating to alcohol and the payment of tax thereon, 
and shall be required to pay the tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))



Sec.  20.202  Losses in transit.

    (a) Reporting losses. Upon discovering any loss of specially 
denatured spirits while in transit, the carrier shall immediately inform 
the consignee, in writing, of the facts and circumstances relating to 
the loss. In the case of theft, the carrier shall also immediately 
notify the consignee's appropriate TTB officer of the facts and 
circumstances relating to the loss.
    (b) Recording losses. At the time the shipment or report of loss is 
received, the consignee shall determine the quantity of specially 
denatured spirits lost. The consignee shall note the quantity lost on 
the receiving document and attach all relevant information to the record 
of receipt, prescribed in Sec.  20.163. For the purpose of maintaining 
the records prescribed in subpart P of this part, receipts of specially 
denatured spirits will only include the quantity actually received.
    (c) Claims. A claim for allowances of losses of specially denatured 
spirits will, as prescribed in Sec.  20.205, be filed:
    (1) If the quantity lost in transit exceeds one percent of the total 
quantity shipped and is more than 10 gallons, the consignee shall file a 
claim for allowance of the entire quantity lost; or
    (2) If the loss was due to theft or other unlawful removal, the 
consignee shall file a claim for allowance of the entire quantity lost, 
regardless of the quantity or percentage involved.

(Reporting approved by the Office of Management and Budget under control 
number 1512-0336; recordkeeping approved by the Office of Management and 
Budget under control number 1512-0337)



Sec.  20.203  Losses on premises.

    (a) Recording of losses. A permittee shall determine and record, in 
the records prescribed by subpart P of this part, the quantity of 
specially denatured spirits or recovered alcohol lost on premises:
    (1) When an inventory is taken,
    (2) At the time a container is emptied, or
    (3) Immediately upon the discovery of any loss due to casualty, 
theft or other unusual causes.
    (b) Claims. A claim for allowance of specially denatured spirits 
will be filed as prescribed in Sec.  20.205, in the following 
circumstances:
    (1) If the quantity lost during the annual accounting period (Sec.  
20.263(c)) exceeds one percent of the quantity to be accounted for 
during that period, and is more than 50 gallons; or,
    (2) If the loss was due to theft or unlawful use or removal, the 
permittee shall file a claim for allowance of losses regardless of the 
quantity involved.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.204  Incomplete shipments.

    (a) Subject to the provisions of this part (and Part 19 of this 
chapter for shipments made by a distilled spirits plant), when 
containers of specially denatured spirits have sustained losses in 
transit other than by theft, and the shipment will not be delivered to 
the

[[Page 524]]

consignee, the carrier may return the shipment to the shipper.
    (b) When specially denatured spirits are returned to the shipper in 
accordance with this section, the carrier shall inform the shipper, in 
writing, of the facts and circumstances relating to the loss. In the 
case of theft, the carrier shall also immediately notify the shipper's 
appropriate TTB officer of the facts and circumstances relating to the 
loss.
    (c) Subject to the limitations for loss prescribed in Sec.  20.202, 
the dealer or proprietor shall file a claim for allowance of the entire 
quantity lost, in the same manner provided in that section. The claim 
shall include the applicable data required by Sec.  20.205.



Sec.  20.205  Claims.

    Claims for allowance of losses of specially denatured spirits or 
recovered alcohol will be filed, on Form 2635 (5620.8), within 30 days 
from the date the loss is ascertained, and will contain the following 
information:
    (a) Name, address, and permit number of claimant;
    (b) Identification and location of the container(s) from which the 
specially denatured spirits or recovered alcohol was lost, and the 
quantity lost from each container;
    (c) Total quantity of specially denatured spirits or recovered 
alcohol covered by the claim and the aggregate quantity involved;
    (d) Date of loss or discovery, the cause or nature of loss, and all 
relevant facts, including facts establishing whether the loss occurred 
as a result of negligence, connivance, collusion, or fraud on the part 
of any person, employee or agent participating in or responsible for the 
loss;
    (e) Name of carrier where a loss in transit is involved. The 
carrier's statement regarding the loss, prescribed by Sec.  20.202 or 
Sec.  20.204, will accompany the claim; and,
    (f) Any additional evidence which the appropriate TTB officer may 
require to be submitted in support of the claim.



  Subpart K_Recovery of Denatured Alcohol, Specially Denatured Rum, or 
                                Articles



Sec.  20.211  General.

    (a) Upon filing the appropriate qualifying documents under the 
applicable provisions of subparts D and F of this part and receiving 
approval, a manufacturer using denatured alcohol, specially denatured 
rum, or articles in an approved process may recover the denatured 
alcohol, specially denatured rum, or articles. However, a person who 
recovers (1) completely denatured alcohol with all its original 
ingredients, (2) an article made with specially denatured spirits with 
all its original ingredients (or practically so, to the extent that the 
presence of the original denaturants and other ingredients in the 
recovered article make it as nonpotable as the original article), or (3) 
an article made with completely denatured alcohol with all the 
denaturants of the completely denatured alcohol, shall not be required 
to obtain a permit under this part.
    (b) For a determination as to whether obtaining a permit under this 
part is necessary, each person who intends to conduct the recovery 
operations outlined in paragraph (a) of this section shall forward Form 
5150.19 with a sample of the recovered article, to the appropriate TTB 
officer, in accordance with subpart F of this part.
    (c) Restoration and redenaturation may be done by a permittee or by 
the proprietor of a distilled spirits plant.



Sec.  20.212  Deposit in receiving tanks.

    All recovered denatured alcohol, specially denatured rum, or 
articles shall be accumulated (after recovery or restoration is 
completed) in a receiving tank equipped for locking. If the recovered 
product is to be shipped under Sec.  20.214, it may be accumulated in 
appropriately marked packages. All denatured alcohol or specially 
denatured rum recovered shall be measured and a record of the 
measurement shall be made before being redenatured or reused. Recovered 
denatured alcohol or specially denatured rum and new denatured alcohol 
or specially denatured rum shall be kept in separate storage

[[Page 525]]

containers properly marked for identification.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.213  Reuse of recovered spirits.

    (a) If the denatured alcohol or specially denatured rum is recovered 
in its original denatured state, or practically so, or contains 
substantial quantities of the original denaturants and other ingredients 
which make it unfit for beverage or other internal human medicinal use, 
it may be reused in any approved process without further redenaturation. 
In these cases, the appropriate TTB officer will require samples of the 
recovered product to be taken from time to time to determine if the 
product requires redenaturation.
    (b) If the denatured alcohol or specially denatured rum is not 
recovered in its original denatured state, or practically so, it shall 
be redenatured at the premises of the manufacturer or a denaturer before 
being used. The appropriate TTB officer may require supervision of the 
redenaturation of the recovered spirits by an appropriate TTB officer.



Sec.  20.214  Shipment for restoration or redenaturation.

    Recovered denatured alcohol, recovered specially denatured rum, or 
recovered articles requiring restoration or redenaturation (or both, 
unless the restoration or redenaturation is to be done on the 
manufacturer's premises) shall be shipped to a distilled spirits plant 
or to a permittee. Packages shall be numbered with a package 
identification number or serial number in accordance with Sec.  20.179 
(b) or (c). Packages shall be labeled with the name, address, and permit 
number of the manufacturer, the quantity (in gallons) of spirits 
contained in the package, and the applicable words ``Recovered denatured 
alcohol formula No. ----'' or ``Recovered specially denatured rum 
formula No. ----.'' If the restoration or redenaturation is performed by 
a user or dealer permittee (not a distilled spirits plant), the 
permittee shall return the same materials to the same manufacturer and 
shall not intermingle them with materials received from other sources.



Sec.  20.215  Shipment of articles and spirits residues for redistillation.

    (a) The proprietor of a distilled spirits plant authorized to 
produce distilled spirits may receive for redistillation (1) articles 
manufactured under this part which contain denatured spirits, and (2) 
spirits residues of manufacturing processes related to the manufacture 
of these articles.
    (b) Any person shipping these articles or spirits residues to a 
distilled spirits plant for redistillation shall--
    (1) Identify each package or articles or spirits residues as to 
contents, and
    (2) Mark and serially number each package as provided in Sec.  
20.214.



Sec.  20.216  Record of shipment.

    A consignor shipping recovered denatured alcohol, recovered 
specially denatured rum, or recovered articles to a distilled spirits 
plant or a permittee shall prepare and forward a record of shipment to 
the consignee, in accordance with Sec.  20.171.

(Approved by the Office of Management and Budget under control number 
1512-0337)



                          Subpart L_Destruction



Sec.  20.221  General.

    A permittee may terminate liability for payment of tax, prescribed 
by law, when specially denatured spirits or recovered alcohol are 
destroyed in accordance with this subpart.



Sec.  20.222  Destruction.

    (a) A permittee who destroys specially denatured spirits or 
recovered alcohol shall prepare a record which identifies--
    (1) The reason for destruction,
    (2) The date, time, location and manner of destruction,
    (3) The quantity involved and, if applicable, identification of 
containers, and
    (4) The name of the individual who accomplished or supervised the 
destruction.
    (b) This record of destruction shall be maintained with the records 
required by subpart P of this part.

(Approved by the Office of Management and Budget under control number 
1512-0337)

[[Page 526]]



 Subpart M_Return, Reconsignment and Disposition of Specially Denatured 
                                 Spirits



Sec.  20.231  Return.

    A permittee may, following the receipt of specially denatured 
spirits and for any legitimate reason, return the specially denatured 
spirits to any distilled spirits plant or dealer if the consignee 
consents to the shipment. The consignor shall prepare a record of 
shipment in accordance with Sec.  20.171.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.232  Reconsignment in transit.

    (a) Reconsignment. Specially denatured spirits may be reconsigned to 
another permittee or returned to the consignor if, prior to or on 
arrival at the premises of the consignee, the alcohol is determined to 
be unsuitable for the intended purpose, was shipped in error, or, for 
any bona fide reason, is not accepted by the consignee or carrier.
    (b) Records of reconsignment. In the case of reconsignment, the 
consignor shall cancel the initial record of shipment and prepare a new 
record of shipment, if the shipment is to another permittee. The new 
record of shipment will be annotated ``Reconsignment.''

(Approved by the Office of Management and Budget under control number 
1512-0337)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended at T.D. ATF-476, 67 
FR 17939, Apr. 12, 2002]



Sec.  20.233  Disposition after revocation of permit.

    When any permit issued on Form 5150.9 is revoked, all specially 
denatured spirits in transit and all specially denatured spirits on the 
former permit premises, may be lawfully possessed by the former 
permittee for the exclusive purpose of disposing of the specially 
denatured spirits, for a period of 60 days following the date of 
revocation. Any specially denatured spirits or recovered alcohol not 
disposed of within the specific 60-day period, is subject to seizure and 
forfeiture.



Sec.  20.234  Disposition on permanent discontinuance of use.

    (a) Specially denatured spirits. Specially denatured spirits on hand 
at the time of discontinuance of use, may be disposed of by
    (1) Returning the specially denatured spirits to a distilled spirits 
plant or dealer, as provided in Sec.  20.231,
    (2) Destruction, as provided in Sec.  20.222, or
    (3) Shipped to another user, as provided in Sec.  20.235.
    (b) Recovered denatured alcohol, recovered specially denatured rum, 
or recovered articles. Upon permanent discontinuance of use, a permittee 
may dispose of recovered denatured alcohol, recovered specially 
denatured rum, or recovered articles by
    (1) Shipment to a distilled spirits plant, as provided in Sec.  
20.215 for articles and spirits residues,
    (2) Destruction, as provided in Sec.  20.222, or
    (3) Upon the filing of an application with the appropriate TTB 
officer, any other approved method.

(Approved by the Office of Management and Budget under control number 
1512-0336)



Sec.  20.235  Disposition to another user.

    (a) A user may dispose of specially denatured spirits to another 
permittee or Government agency.
    (b) The user shall prepare a record of shipment in accordance with 
Sec.  20.171. The packages to be shipped shall bear the name and permit 
number of the user and the marks and labels required under Sec.  20.178. 
The user's copy of the record of shipment shall include an explanation 
of the reason for the disposition.
    (c) The appropriate TTB officer may require a user to apply for and 
obtain a dealer's permit, if shipments under this section are excessive.

(Approved by the Office of Management and Budget under control number 
1512-0337)

[T.D ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by ATF-332, 57 FR 
40849, Sept. 8, 1992]

[[Page 527]]



  Subpart N_Use of Specially Denatured Spirits by the United States or 
                            Government Agency



Sec.  20.241  General.

    The United States or any of its Government agencies may withdraw 
specially denatured spirits from a distilled spirits plant or dealer 
under this part, as authorized by 26 U.S.C. 5214(a)(2) and 5271. Before 
any specially denatured spirits may be withdrawn, a permit to procure 
the spirits shall be obtained as provided in Sec.  20.25. Payment of 
special (occupational) tax is not required for any Governmental agency 
of the United States to procure specially denatured spirits.

(26 U.S.C. 5214, 5271, 5272, 5276)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985, as amended by T.D. ATF-285, 54 
FR 12610, Mar. 28, 1989; T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. 
ATF-476, 67 FR 17939, Apr. 12, 2002]



Sec.  20.242  Application and permit, Form 5150.33.

    (a) All permits previously issued to the United States or any of its 
Government agencies on Form 1444 shall remain valid and will be 
regulated by the same provisions of this subpart as it refers to permits 
on Form 5150.33.
    (b) A Government agency shall apply for a permit to obtain specially 
denatured spirits on Form 5150.33. Upon approval, Form 5150.33 will be 
returned to the Government agency, and will serve as authority to 
procure specially denatured spirits.
    (c) A Government agency may specify on its application for a permit 
to procure specially denatured spirits, Form 5150.33, that it desires a 
single permit authorizing all sub-agencies under its control to procure 
specially denatured spirits; or each Government location (agency, 
department, bureau, etc.) desiring to procure specially denatured 
spirits may individually submit an application for a permit on Form 
5150.33.
    (d) An application for a permit shall be signed by the head of the 
agency or sub-agency or the incumbent of an office which is authorized 
by the head of the agency or sub-agency, to sign. Evidence of 
authorization to sign for the head of the agency or sub-agency shall be 
furnished with the application.
    (e) Specially denatured spirits obtained by Government agencies may 
not be used for non-Government purposes.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1370, as amended (26 U.S.C. 5271))



Sec.  20.243  Procurement of specially denatured spirits.

    Government agencies shall retain the original permit, Form 5150.33, 
on file. When placing an initial order with a vendor, the agency shall 
forward a photocopy of its permit with the purchase order for specially 
denatured spirits. In the case of an agency holding a single permit for 
use of other sub-agencies, the photocopy of the permit will contain an 
attachment listing all other locations authorized to procure specially 
denatured spirits. Any subsequent purchases from the same vendor need 
only contain the permit number on the purchase order.



Sec.  20.244  Receipt of shipment.

    On receipt of a shipment of specially denatured spirits, a 
representative of the Government agency shall inspect the shipment for 
any loss or deficiency. In the case of loss or deficiency, the agency 
shall annotate the receiving document and forward a copy to the 
appropriate TTB officer from which the shipment was consigned.



Sec.  20.245  Discontinuance of use.

    When a Government agency, holding a permit issued under this 
subpart, no longer intends to procure and use specially denatured 
spirits, the permit shall be returned to the appropriate TTB officer for 
cancellation. All photocopies of the permit furnished to vendors shall 
be returned to the agency for destruction.



Sec.  20.246  Disposition of specially denatured spirits on discontinuance of use.

    At the time of discontinuance of use of specially denatured spirits, 
a Government agency may dispose of any excess specially denatured 
spirits (a) to another Government agency holding a permit, (b) by 
returning the specially denatured spirits to a vendor, or (c) in

[[Page 528]]

any manner authorized by the appropriate TTB officer. Specially 
denatured spirits may not be disposed of to the general public.



            Subpart O_Samples of Specially Denatured Spirits



Sec.  20.251  General.

    (a) Applicants and prospective applicants for permits to use 
specially denatured spirits may obtain samples of specially denatured 
spirits for experimental purposes or for preparing samples of finished 
articles as required by Sec.  20.92. Samples of specially denatured 
spirits may only be obtained from distilled spirits plants or dealers.
    (b) Samples not larger than five gallons per calendar year may be 
obtained without a permit. Dealers shall maintain records to ensure that 
samples of specially denatured spirits dispensed to nonpermittee do not 
exceed five gallons per calendar year.
    (c) Samples larger than five gallons per calendar year may be 
obtained without a permit as described in Sec.  20.252.
    (d) Samples of specially denatured spirits shall not be used to 
manufacture articles for commercial sale.

(Approved by the Office of Management and Budget under control number 
1512-0337)

[T.D. ATF-199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985, as 
amended by T.D. ATF-435, 66 FR 5475, Jan. 19, 2001]



Sec.  20.252  Samples larger than five gallons.

    (a) General. The appropriate TTB officer may waive the requirement 
to obtain a permit under subpart D of this part if a nonpermittee can 
demonstrate that more than five gallons is necessary to determine if an 
Industrial Use Permit is desired.
    (b) Application. A nonpermittee who wishes to obtain more than five 
galllons of specially denatured spirits to determine if an Industrial 
Use Permit is desired, shall file a letterhead application with the 
appropriate TTB officer in which the nonpermittee's premises are 
located. The letter shall describe why the requested quantity is 
necessary.
    (c) Approval. If the letterhead application is approved, the 
nonpermittee shall submit it to the proprietor of a distilled spirits 
plant or a dealer with the order for the sample of specially denatured 
spirits.

(Approved by the Office of Management and Budget under control number 
1512-0336)



Sec.  20.253  Labels for samples.

    When a sample of specially denatured spirits is withdrawn from a 
dealer's premises, that dealer shall attach a label to the sample which 
shows the following information:
    (a) The word ``Sample'';
    (b) The dealer's name, address, and permit number;
    (c) The words ``Specially Denatured Alcohol'' or ``Specially 
Denatured Rum'';
    (d) The quantity; and
    (e) The formula number.



                      Subpart P_Records and Reports



Sec.  20.261  Records of completely denatured alcohol.

    When requested by the appropriate TTB officer, any person who 
receives, packages, stores, disposes of, or uses completely denatured 
alcohol shall keep records of all transactions in completely denatured 
alcohol which will enable appropriate TTB officers to verify and trace 
receipt, packaging, storage, usage, and disposal of the spirits, and to 
determine whether there has been compliance with law and regulations. 
However, on sales in quantities of less than 5 gallons, only the total 
quantity disposed of daily need be recorded.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.262  Dealer's records of specially denatured spirits.

    (a) Each dealer shall maintain separate records of each formula of 
new specially denatured spirits--
    (1) Received, as required by Sec.  20.163,
    (2) Packaged, as required by Sec.  20.180,
    (3) Destroyed, as required by Sec.  20.222,
    (4) Lost, as required by Sec. Sec.  20.202-20.204, and

[[Page 529]]

    (5) Transferred to another permittee or a distilled spirits plant, 
as required by Sec. Sec.  20.171, 20.216, and 20.231.
    (b) Each dealer shall maintain separate records of each formula of 
recovered specially denatured spirits for each of the transactions 
listed in paragraphs (a)(1) through (a)(5) of this section.
    (c) Once in each calendar year, and when requested by an appropriate 
TTB officer, each dealer shall perform and record a balanced accounting 
of each formula of new and recovered specially denatured spirits using 
the records required by Sec.  20.170 and this section.
    (d) When requested, the dealer shall submit the accounting required 
by paragraph (c) of this section to the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.263  User's records of specially denatured spirits.

    (a) Each user shall maintain separate records of each formula of new 
specially denatured spirits--
    (1) Received, as required by Sec.  20.163,
    (2) Recovered, as required by Sec.  20.212,
    (3) Used, as required by Sec.  20.192,
    (4) Destroyed, as required by Sec.  20.222,
    (5) Lost, as required by Sec. Sec.  20.202-20.203, and
    (6) Transferred to another permittee or a distilled spirits plant, 
as required by Sec. Sec.  20.216, 20.231, and 20.235.
    (b) Each user shall maintain separate records of each formula of 
recovered specially denatured spirits for each of the transactions 
listed in paragraphs (a)(1) through (a)(6) of this section.
    (c) Once in each calendar year, and when requested by an appropriate 
TTB officer, each user shall perform and record a balanced accounting of 
each formula of new and recovered specially denatured spirits using the 
records required by Sec.  20.170 and this section.
    (d) When requested, the user shall submit the accounting required by 
paragraph (c) of this section to the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.264  User's records and report of products and processes.

    (a) Records. (1) Each user shall maintain separate accountings of--
    (i) The number of gallons of each formula of new specially denatured 
spirits used for each product or process, recorded by the code number 
prescribed by Sec.  21.141 of this chapter.
    (ii) The number of gallons of each formula of recovered specially 
denatured spirits used for each product or process, recorded by the code 
number prescribed by Sec.  21.141 of this chapter.
    (2) Each user who recovers specially denatured spirits shall 
maintain separate accountings of the number of gallons of each formula 
of specially denatured spirits recovered from each product or process, 
recorded by the code number prescribed by Sec.  21.141 of this chapter.
    (3) Product or process code numbers are shown on approved formula 
and statement of process forms. For an article made in accordance with a 
general-use formula, the user will refer to Sec.  21.141 of this chapter 
and record the applicable product or process code number.
    (b) Report. Each user shall submit an annual report, Form 5150.18, 
for the period from July 1 through June 30, summarized from the records 
required by this section. The report shall be filed no later than July 
15 following the end of the accounting period.

(Approved by the Office of Management and Budget under control number 
1512-0337)



Sec.  20.265  Retention of invoices.

    (a) Any person required to keep records under this part shall retain 
copies of invoices which will enable appropriate TTB officers to readily 
obtain the details regarding:
    (1) Purchases of all essential oils, chemicals, and other materials 
used in manufacturing articles, including the name and address of the 
vendor, and the quantity;
    (2) Purchases of articles containing specially denatured spirits for 
reprocessing, or purchases of those articles for bottling, repackaging, 
and/or resale, including the name and address of the vendor and the 
quantity; and

[[Page 530]]

    (3) Dispositions of all articles manufactured or received, including 
in each case the name and address of the person to whom sold or 
otherwise disposed of.
    (b) The appropriate TTB officer may, on application filed by the 
permittee, waive the requirements for retaining invoices if the quantity 
sold to any person during a calendar month does not exceed 25 gallons, 
and if a waiver will not hinder the effective administration of this 
part and will not pose a jeopardy to the revenue.

(Approved by the Office of Management and Budget under control number 
1512-0336)



Sec.  20.266  Time for making entries in records.

    Any person who conducts an operation which is required to be 
recorded under this part, shall enter that operation in the records on 
the same day on which the operation occurred. However, the daily posting 
of records may be deferred to conform to the permittee's normal 
accounting cycle if (a) supporting or supplemental records are prepared 
at the time of the operation, and these supporting or supplemental 
records are to be used to post the daily record, and (b) the deferral of 
posting does not pose a jeopardy to the revenue.



Sec.  20.267  Filing and retaining records.

    Any person who is required to maintain records of operations under 
this part shall file and retain records and copies of reports in the 
following manner:
    (a) Keep on file for a period of not less than 3 years after the 
date of the report covering the operation, in such a way as to allow 
inspection by TTB officers, all those records of operations, all 
supporting or supplemental records, and copies of all reports as 
required by this part. However, the appropriate TTB officer may require 
that the records and copies of reports be kept for an additional period, 
not to exceed 3 years.
    (b) File all records and copies of reports at the premises where the 
operations are conducted.
    (c) Make the files of records and copies of reports available to TTB 
officers during regular business hours for examination.

[T.D. ATF- 199, 50 FR 1962, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5475, Jan. 19, 2001]



Sec.  20.268  Photographic copies of records.

    (a) General. Permittees may record, copy, or reproduce required 
records. Any process may be used which accurately reproduces the 
original record, and which forms a durable medium for reproducing and 
preserving the original record.
    (b) Copies of records treated as original records. Whenever records 
are reproduced under this section, the reproduced records will be 
preserved in conveniently accessible files, and provisions will be made 
for examining, viewing, and using the reproduced records the same as if 
they were the original record, and they will be treated and considered 
for all purposes as though they were the original record. All provisions 
of law and regulations applicable to the original are applicable to the 
reproduced record. As used in this section, ``original record'' means 
the record required by this part to be maintained or preserved by the 
permittee, even though it may be an executed duplicate or other copy of 
the document.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))



PART 21_FORMULAS FOR DENATURED ALCOHOL AND RUM--Table of Contents




                      Subpart A_General Provisions

Sec.
21.1 Scope of regulations.
21.2 Forms prescribed.
21.3 Stocks of discontinued formulas.
21.4 Related regulations.
21.5 Denatured spirits for export.
21.6 Incorporations by reference.
21.7 Delegations of the Administrator.

                          Subpart B_Definitions

21.11 Meaning of terms.

             Subpart C_Completely Denatured Alcohol Formulas

21.21 General.
21.22 Formula No. 18.

[[Page 531]]

21.23 Formula No. 19.
21.24 Formula No. 20.

   Subpart D_Specially Denatured Spirits Formulas and Authorized Uses

21.31 General.
21.32 Formula No. 1.
21.33 Formula No. 2-B.
21.34 Formula No. 2-C.
21.35 Formula No. 3-A.
21.36 Formula No. 3-B.
21.37 Formula No. 3-C.
21.38 Formula No. 4.
21.39 Formula No. 6-B.
21.40 Formula No. 12-A.
21.41 Formula No. 13-A.
21.42 Formula No. 17.
21.43 Formula No. 18.
21.44 Formula No. 19.
21.45 Formula No. 20.
21.46 Formula No. 22.
21.47 Formula No. 23-A.
21.48 Formula No. 23-F.
21.49 Formula No. 23-H.
21.50 Formula No. 25.
21.51 Formula No. 25-A.
21.52 Formula No. 27.
21.53 Formula No. 27-A.
21.54 Formula No. 27-B.
21.55 Formula No. 28-A.
21.56 Formula No. 29.
21.57 Formula No. 30.
21.58 Formula No. 31-A.
21.59 Formula No. 32.
21.60 Formula No. 33.
21.61 Formula No. 35.
21.62 Formula No. 35-A.
21.63 Formula No. 36.
21.64 Formula No. 37.
21.65 Formula No. 38-B.
21.66 Formula No. 38-C.
21.67 Formula No. 38-D.
21.68 Formula No. 38-F.
21.69 Formula No. 39.
21.70 Formula No. 39-A.
21.71 Formula No. 39-B.
21.72 Formula No. 39-C.
21.73 Formula No. 39-D.
21.74 Formula No. 40.
21.75 Formula No. 40-A.
21.76 Formula No. 40-B.
21.77 Formula No. 40-C.
21.78 Formula No. 42.
21.79 Formula No. 44.
21.80 Formula No. 45.
21.81 Formula No. 46.

                Subpart E_Specifications for Denaturants

21.91 General.
21.92 Denaturants listed as U.S.P. or N.F.
21.93 Acetaldehyde.
21.94 Acetaldol.
21.95 Alpha terpineol.
21.96 Ammonia, aqueous.
21.97 Benzene.
21.98 Bone oil (Dipple's oil).
21.99 Brucine alkaloid.
21.100 n-Butyl alcohol.
21.101 tert-Butyl alcohol.
21.102 Caustic soda, liquid.
21.103 Chloroform.
21.104 Cinchonidine.
21.105 Citronella oil, natural.
21.106 Diethyl phthalate.
21.107 Ethyl acetate.
21.108 Ethyl ether.
21.109 Gasoline.
21.110 Gasoline, unleaded.
21.111 Gentian violet.
21.112 Heptane.
21.113 Isopropyl alcohol.
21.114 Kerosene.
21.115 Kerosene (deodorized).
21.116 Methyl alcohol.
21.117 Methyl isobutyl ketone.
21.118 Methyl n-butyl ketone.
21.119 Nicotine solution.
21.120 Nitropropane, mixed isomers of.
21.121 Phenyl mercuric benzoate.
21.122 Pyridine bases.
21.123 Pyronate.
21.124 Quassin.
21.125 Rubber hydrocarbon solvent.
21.126 Safrole.
21.127 Shellac (refined).
21.128 Sodium (metallic).
21.129 Spearmint oil, terpeneless.
21.130 Spike lavender oil, natural.
21.131 Sucrose octaacetate.
21.132 Toluene.
21.133 Vinegar.

 Subpart F_Uses of Specially Denatured Alcohol and Specially Denatured 
                                   Rum

21.141 List of products and processes using specially denatured alcohol 
          and rum, and formulas authorized therefor.

         Subpart G_Denaturants Authorized for Denatured Spirits

21.151 List of denaturants authorized for denatured spirits.

 Subpart H_Weights and Specific Gravities of Specially Denatured Alcohol

21.161 Weights and specific gravities of specially denatured alcohol.

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5242, 7805.

    Source: T.D. ATF-133, 48 FR 24673, June 2, 1983, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 21 appear by T.D. ATF-
435, 66 FR 5475, Jan. 19, 2001.

[[Page 532]]



                      Subpart A_General Provisions



Sec.  21.1  Scope of regulations.

    The regulations in this part relate to the formulation of completely 
denatured alcohol, specially denatured alcohol, and specially denatured 
rum; to the specifications for denaturants; and to the uses of denatured 
spirits.



Sec.  21.2  Forms prescribed.

    (a) General. The appropriate TTB officer is authorized to prescribe 
all forms required by this part. All of the information called for in 
each form shall be furnished as indicated by the headings on the form 
and the instructions on or pertaining to the form. In addition, 
information called for in each form shall be furnished as required by 
this part. The form will be filed in accordance with the instructions 
for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-249, 52 
FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-
435, 66 FR 5475, Jan. 19, 2001; T.D. TTB-44, 71 FR 16934, Apr. 4, 2006]



Sec.  21.3  Stocks of discontinued formulas.

    Denaturers, or specially denatured spirits dealers or users, having 
on hand stocks of denaturants or formulas of specially denatured spirits 
no longer authorized by this part may--
    (a) Continue to supply or use those stocks in accordance with 
existing permits until the stocks are exhausted;
    (b) Use up those stocks in any manufacturing process approved by the 
appropriate TTB officer, pursuant to an application filed with him on 
TTB Form 5150.19, Formula for Articles made with Specially Denatured 
Alcohol and Rum;
    (c) On approval of an application, filed with the appropriate TTB 
officer and approved by such officer, destroy those stocks under 
whatever supervision the appropriate TTB officer requires; or
    (d) Otherwise dispose of those stocks in a manner satisfactory to 
the appropriate TTB officer, pursuant to approval of an application.

[T.D. ATF-133, 487 FR 24673, June 2, 1983, as amended by T.D. ATF-435, 
66 FR 5475, Jan. 19, 2001]



Sec.  21.4  Related regulations.

    The procedural and substantive requirements relative to the 
production of denatured alcohol and specially denatured rum are 
prescribed in Part 19 of this chapter, and those relative to the 
distribution and use of denatured alcohol and specially denatured rum 
are prescribed in Part 20 of this chapter.

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 
FR 9183 Mar. 6, 1985]



Sec.  21.5  Denatured spirits for export.

    Spirits may be denatured in accordance with formulas prescribed by 
the government of a foreign country to which the denatured spirits will 
be exported. However, the denaturer must first apply for and obtain 
written permission from the appropriate TTB officer. The application 
shall be submitted to the appropriate TTB officer and shall contain the 
following information:
    (a) A complete list of ingredients for the spirits to be denatured.
    (b) The exact amount of each ingredient to be used in denaturing the 
spirits.
    (c) A copy (accompanied by an English translation as necessary) of 
the law or regulations of the foreign country to which the denatured 
spirits will be exported, specifying the denatured spirits formulation 
prescribed by that country.



Sec.  21.6  Incorporations by reference.

    (a) ``The United States Pharmacopoeia (Twentieth Revision, Official 
from July, 1980) and the National Formulary (Fifteenth Edition, Official 
from July 1, 1980)'' published together as ``The USP and NF Compendia,'' 
are incorporated by reference in this part. This incorporation by 
reference was approved by the Director of the Federal Register. The 
publication is available from the United States Pharmacopoeia 
Convention, Inc., 12601 Twinbrook

[[Page 533]]

Parkway, Rockville, Maryland 20852, or may be inspected at the National 
Archives and Records Administration (NARA). For information on the 
availability of this material at NARA, call 202-741-6030, or go to: 
http://www.archives.gov/federal--register/code--of--federal--
regulations/ibr--locations.html.
    (b) Material from Parts 23, 25, and 29 of the 1980 Annual Book of 
ASTM Standards is incorporated by reference in this part. This 
incorporation by reference was approved by the Director of the Federal 
Register. These publications are available from the American Society for 
Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 
19103, or may be inspected at the National Archives and Records 
Administration (NARA). For information on the availability of this 
material at NARA, call 202-741-6030, or go to: http://www.archives.gov/
federal--register/code--of--federal--regulations/ibr--locations.html.
    (c) Material from the ``Official Methods of Analysis of the 
Association of Official Analytical Chemists (13th Edition 1980)'' (AOAC) 
is incorporated by reference in this part. This incorporation by 
reference was approved by the Director of the Federal Register. This 
publication is available from the Association of Official Analytical 
Chemists, 11 North 19th Street, Suite 210, Arlington, Virginia 22209, or 
may be inspected at the National Archives and Records Administration 
(NARA). For information on the availability of this material at NARA, 
call 202-741-6030, or go to: http://www.archives.gov/federal--register/
code--of--federal--regulations/ibr--locations.html.

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended at 69 FR 18803, 
Apr. 9, 2004]

(Pub. L. 89-554, 80 Stat. 383 as amended (5 U.S.C. 552(a)))



Sec.  21.7  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.21, Delegation of the Administrator's 
Authorities in 27 CFR Part 21, Formulas for Denatured Alcohol and Rum. 
You may obtain a copy of this order by accessing the TTB Web site 
(http://www.ttb.gov) or by mailing a request to the Alcohol and Tobacco 
Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 
1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16936, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  21.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
unless the context otherwise requires, terms have the meanings given in 
this section. Words in the plural form include the singular, and vice 
versa, and words indicating the masculine gender include the feminine. 
The terms ``includes'' and ``including'' do not exclude things not 
mentioned which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Alcohol. The spirits known as ethyl alcohol, ethanol, or spirits of 
wine, from whatever source or by whatever process produced. The term 
does not include such spirits as whisky, brandy, rum, gin, or vodka.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.21, Delegation of the Administrator's Authorities in 27 CFR Part 
21, Formulas For Denatured Alcohol and Rum.
    CFR. The Code of Federal Regulations.
    C.D.A. Completly denatured alcohol.
    Completely denatured alcohol. The spirits known as alcohol, as 
defined in this section, denatured pursuant to completely denatured 
alcohol formulas prescribed in subpart C of this part.
    Denaturant. A material authorized by this part to be added to 
spirits in order to make those spirits unfit for beverage or internal 
human medicinal use.
    Denatured spirits. Alcohol or rum to which denaturants have been 
added as provided in this part.

[[Page 534]]

    Essential oil. Any of the volatile odoriferous natural oils found in 
plants, which impart to such plants odor, and often other characteristic 
properties; also, imitations of such natural oils, as well as aromatic 
substances, and synthetic oils, which possess the denaturing 
characteristics of such natural oils.
    Gallon. The liquid measure equivalent to the volume of 231 cubic 
inches.
    Manufacturer or user. A person who holds a permit, issued under part 
20 of this chapter, to withdraw and use specially denatured alcohol or 
specially denatured rum, or to recover completely or specially denatured 
alcohol, or specially denatured rum, or articles manufactured with 
denatured spirits, or a distilled spirits plant proprietor qualified 
under Part 19 of this chapter as a processor.
    N.F. The National Formulary. The lastest edition is intended unless 
otherwise specified. The designations ``U.S.P.'' and ``N.F.'' are 
considered interchangeable when preparations are transferred from one 
publication to the other. (For incorporation by reference, see Sec.  
21.6(a).)
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Rum. Any spirits produced from sugar cane products and distilled at 
less than 190 proof in such manner that the spirits possess the taste, 
aroma, and characteristics generally attributed to rum.
    S.D.A. Specially denatured alcohol.
    Specially denatured alcohol. Those spirits known as alcohol, as 
defined in this section, denatured pursuant to the specially denatured 
alcohol formulas authorized under subpart D of this part.
    Specially denatured rum. Those spirits known as rum, as defined in 
this section, denatured pursuant to the specially denatured rum formula 
authorized under subpart D of this part.
    Spirits or distilled spirits. Alcohol or rum as defined in this 
part.
    U.S.C. The United States Code.
    U.S.P. The United States Pharmacopoeia. The latest edition is 
intended unless otherwise specified. The designations ``U.S.P.'' and 
``N.F.'' are considered interchangeable when preparations are 
transferred from one publication to the other. (For incorporation by 
reference, see Sec.  21.6(a).)

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 
FR 9183, Mar. 6, 1985; T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. 
TTB-44, 71 FR 16936, Apr. 4, 2006]



             Subpart C_Completely Denatured Alcohol Formulas



Sec.  21.21  General.

    (a) Alcohol shall be completely denatured only in accordance with 
formulas prescribed in this subpart (or in accordance with Sec.  21.5).
    (b) Denaturers may be authorized to add a small quantity of an 
odorant, rust inhibitor, or dye to completely denatured alcohol. Any 
such addition shall be made only on approval by the appropriate TTB 
officer. Request for such approval shall be submitted to the appropriate 
TTB officer.
    (c) Odorants or perfume materials may be added to denaturants 
authorized for completely denatured alcohol in amounts not greater than 
1 part to 250, by weight. However, such addition shall not decrease the 
denaturing value nor change the chemical or physical constants beyond 
the limits of the specifications for these denaturants as prescribed in 
subpart E, except as to odor. Proprietors of distilled spirits plants 
using denaturants to which such odorants or perfume materials have been 
added shall inform the appropriate TTB officer, in writing, of the names 
and properties of the odorants or perfume materials so used.



Sec.  21.22  Formula No. 18.

    To every 100 gallons of ethyl alcohol of not less than 160 proof 
add:

2.50 gallons of either methyl isobutyl ketone, mixed isomers of 
nitropropane, or methyl n- butyl ketone;
0.125 gallon of pyronate or a similar compound;
0.50 gallon acetaldol (beta-hydroxybutyraldehyde); and
1.00 gallon of either kerosene, deodorized kerosene, gasoline, unleaded 
gasoline, rubber hydrocarbon solvent, or heptane.



Sec.  21.23  Formula No. 19.

    To every 100 gallons of ethyl alcohol of not less than 160 proof 
add:


[[Page 535]]


4.0 gallons of either methyl isobutyl ketone, mixed isomers of 
nitropropane, or methyl n- butyl ketone; and
1.0 gallon of either kerosene, deodorized kerosene, gasoline, unleaded 
gasoline, rubber hydrocarbon solvent, or heptane.



Sec.  21.24  Formula No. 20.

    (a) Formula. To every 100 gallons of ethyl alcohol of not less than 
195 proof add:

A total of 2.0 gallons of either unleaded gasoline, rubber hydrocarbon 
solvent, kerosene, or deodorized kerosene; or any combination of these.

    (b) Authorized use. Restricted to fuel use, comparable to specially 
denatured alcohol ``Use Code No.'' 611, 612, 613, 620, and 630.



   Subpart D_Specially Denatured Spirits Formulas and Authorized Uses



Sec.  21.31  General.

    (a) Formulas for specially denatured spirits. Alcohol and rum shall 
be specially denatured only in accordance with formulas prescribed in 
this subpart (or in accordance with Sec.  21.5).
    (b) Proof of spirits for denaturation. Alcohol of not less than 185 
proof shall be used in the manufacture of all formulas of specially 
denatured alcohol, unless otherwise specifically stated or unless 
otherwise authorized by the appropriate TTB officer. Rum for 
denaturation shall be of not less than 150 proof and may be denatured 
only in accordance with Formula No. 4.
    (c) Use of Denatured Spirits. Users and manufacturers holding 
approved Forms 5150.19 (formerly 1479-A) covering use in processes or 
manufacture of products no longer authorized for a particular formula 
may continue that use. Pursuant to written application and subject to 
the provisions of 26 U.S.C. Chapter 51, Part 20 of this chapter, and 
this part, the appropriate TTB officer, may authorize the use of any 
formula of specially denatured alcohol or specially denatured rum for 
uses not specifically authorized in this part. The code number before 
each item under ``authorized uses'' shall be used in reporting the use 
of specially denatured alcohol or specially denatured rum.

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 
FR 9183, Mar. 6, 1985]



Sec.  21.32  Formula No. 1.

    (a) Formula. To every 100 gallons of alcohol add:

Four gallons of methyl alcohol and either \1/8\ avoirdupois ounce of 
denatonium benzoate, N.F.; 1 gallon of methyl isobutyl ketone; 1 gallon 
of mixed isomers of nitropropane; or 1 gallon of methyl n- butyl ketone.

    (b) Authorized uses. (1) As a solvent:

011. Cellulose coatings.
012. Synthetic resin coatings.
013. Shellac coatings.
014. Other natural resin coatings.
016. Other coatings.
021. Cellulose plastics.
022. Non-cellulose plastics, including resins.
031. Photographic film and emulsions.
032. Transparent sheeting.
033. Explosives.
034. Cellulose intermediates and industrial collodions.
035. Soldering flux.
036. Adhesives and binders.
041. Proprietary solvents.
042. Solvents and thinners (other than proprietary solvents or special 
industrial solvents).
043. Solvents, special (restricted sale).
051. Polishes.
052. Inks (not including meat branding inks).
053. Stains (wood, etc.).
141. Shampoos.
142. Soap and bath preparations.
311. Cellulose compounds (dehydration).
312. Sodium hydrosulfite (dehydration).
315. Other dehydration products.
320. Petroleum products.
331. Processing pectin.
332. Processing other food products.
341. Processing crude drugs.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
345. Processing blood and blood products.
349. Miscellaneous drug processing (including manufacture of pills).
351. Processing dyes and intermediates.
352. Processing perfume materials and fixatives.
353. Processing photographic chemicals.
354. Processing rosin.
355. Processing rubber (latex).
358. Processing other chemicals.
359. Processing miscellaneous products.

[[Page 536]]

410. Disinfectants, insecticides, fungicides, and other biocides.
420. Embalming fluids and related products.
430. Sterilizing and preserving solutions.
440. Industrial detergents and soaps.
450. Cleaning solutions (including household detergents).
481. Photoengraving and rotogravure dyes and solutions.
482. Other dye solutions.
485. Miscellaneous solutions (including duplicating fluids).

    (2) As a raw material:

521. Ethyl acetate.
522. Ethyl chloride.
523. Other ethyl esters.
530. Ethylamines.
540. Dyes and intermediates.
551. Acetaldehyde.
552. Other aldehydes.
561. Ethyl ether.
562. Other ethers.
571. Ethylene dibromide.
572. Ethylene gas.
573. Xanthates.
574. Fulminate of mercury and other detonators.
575. Drugs and medicinal chemicals.
579. Other chemicals.

    (3) As a fuel:

611. Automobile and supplementary fuels.
612. Airplane and supplementary fuels.
613. Rocket and jet fuels.
620. Proprietary heating fuels.
630. Other fuel uses.

    (4) As a fluid:

710. Scientific instruments.
720. Brake fluids.
730. Cutting oil.
740. Refrigerating uses.
750. Other fluid uses.
760. Proprietary anti-freeze.

    (5) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).
900. Specialized uses (unclassified).

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 
FR 9183, Mar. 6, 1985; T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]



Sec.  21.33  Formula No. 2-B.

    (a) Formula. To every 100 gallons of alcohol add:

One-half gallon of benzene, \1/2\ gallon of rubber hydrocarbon solvent, 
\1/2\ gallon of toluene, or \1/2\ gallon of heptane.

    (b) Authorized uses. (1) As a solvent:

021. Cellulose plastics.
022. Non-cellulose plastics, including resins.
031. Photographic film and emulsions.
032. Transparent sheeting.
033. Explosives.
311. Cellulose compounds (dehydration).
312. Sodium hydrosulfite (dehydration).
315. Other dehydration products.
320. Petroleum products.
331. Processing pectin.
332. Processing other food products.
341. Processing crude drugs.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
349. Miscellaneous drug processing (including manufacture of pills).
351. Processing dyes and intermediates.
352. Processing perfume materials and fixatives.
353. Processing photographic chemicals.
358. Processing other chemicals.
359. Processing miscellaneous products.

    (2) As a raw material:

521. Ethyl acetate.
522. Ethyl chloride.
523. Other ethyl esters.
524. Sodium ethylate, anhydrous.
530. Ethylamines.
540. Dyes and intermediates.
551. Acetaldehyde.
552. Other aldehydes.
561. Ethyl ether.
562. Other ethers.
571. Ethylene dibromide.
572. Ethylene gas.
573. Xanthates.
575. Drugs and medicinal chemicals.
576. Organo-silicone products.
579. Other chemicals.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

    (c) Conditions governing use. This formula shall be used in a closed 
and continuous system unless otherwise authorized by the appropriate TTB 
officer.

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 
FR 12854, Mar. 1, 2001]



Sec.  21.34  Formula No. 2-C.

    (a) Formula. To every 100 gallons of alcohol add:

Thirty-three pounds or more of metallic sodium and either \1/2\ gallon 
of benzene, \1/2\ gallon of toluene, or \1/2\ gallon of rubber 
hydrocarbon solvent.

    (b) Authorized uses. (1) As a solvent:


[[Page 537]]


344. Processing medicinal chemicals (including alkaloids).
358. Processing other chemicals.
359. Processing miscellaneous products.

    (2) As a raw material:

523. Miscellaneous ethyl esters.
530. Ethylamines.
540. Dyes and intermediates.
575. Drugs and medicinal chemicals.
579. Other chemicals.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

    (c) Conditions governing use. This formula shall be used in a closed 
and continuous system unless otherwise authorized by the appropriate TTB 
officer.



Sec.  21.35  Formula No. 3-A.

    (a) Formula. To every 100 gallons of alcohol add:

Five gallons of methyl alcohol.

    (b) Authorized uses. (1) As a solvent:

011. Cellulose coatings.
012. Synthetic resin coatings.
016. Other coatings.
021. Cellulose plastics.
022. Non-cellulose plastics, including resins.
031. Photographic film and emulsions.
032. Transparent sheeting.
033. Explosives.
034. Cellulose intermediates and industrial collodions.
035. Soldering flux.
036. Adhesives and binders.
041. Proprietary solvents.
043. Solvents, special (restricted sale).
051. Polishes.
052. Inks (including meat branding inks).
053. Stains (wood, etc.).
141. Shampoos.
142. Soap and bath preparations.
311. Cellulose compounds (dehydration).
312. Sodium hydrosulfite (dehydration).
315. Other dehydration products.
320. Petroleum products.
331. Processing pectin.
332. Processing other food products.
341. Processing crude drugs.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
345. Processing blood and blood products.
349. Miscellaneous drug processing (including manufacture of pills).
351. Processing dyes and intermediates.
352. Processing perfume materials and fixatives.
353. Processing photographic chemicals.
354. Processing rosin.
355. Processing rubber (latex).
358. Processing other chemicals.
359. Processing miscellaneous products.
410. Disinfectants, insecticides, fungicides, and other biocides.
420. Embalming fluids and related products.
430. Sterilizing and preserving solutions.
440. Industrial detergents and soaps.
450. Cleaning solutions (including household detergents).
470. Theater sprays, incense, and room deodorants.
481. Photoengraving and rotogravure dyes and solutions.
482. Other dye solutions.
485. Miscellaneous solutions (including duplicating fluids).

    (2) As a raw material:

530. Ethylamines.
540. Dyes and intermediates.
575. Drugs and medicinal chemicals.
576. Organo-silicone products.
579. Other chemicals.
590. Synthetic resins.

    (3) As a fuel:

611. Automobile and supplementary fuels.
612. Airplane and supplementary fuels.
613. Rocket and jet fuels.
620. Proprietary heating fuels.
630. Other fuel uses.

    (4) As a fluid:

710. Scientific instruments.
720. Brake fluids.
730. Cutting oils.
740. Refrigerating uses.
750. Other fluid uses.

    (5) Miscellaneous uses:

810. General laboratory and experimental use (own use only).
811. Laboratory reagents for sale.
812. Product development and pilot plant uses (own use only).
900. Specialized uses (unclassified).

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 
FR 9183, Mar. 6, 1985]



Sec.  21.36  Formula No. 3-B.

    (a) Formula. To every 100 gallons of alcohol add:

One gallon of pine tar, U.S.P.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
141. Shampoos.
142. Soap and bath preparations.
410. Disinfectants, insecticides, fungicides, and other biocides.


[[Page 538]]


    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.37  Formula No. 3-C.

    (a) Formula. To every 100 gallons of alcohol add:

Five gallons of isopropyl alcohol.

    (b) Authorized uses. (1) As a solvent:

011. Cellulose coatings.
012. Synthetic resin coatings.
016. Other coatings.
021. Cellulose plastics.
022. Non-cellulose plastics, including resins.
031. Photographic film and emulsions.
032. Transparent sheeting.
033. Explosives.
034. Cellulose intermediates and industrial collodions.
035. Soldering flux.
036. Adhesives and binders.
043. Solvents, special (restricted sale).
051. Polishes.
052. Inks (including meat branding inks).
053. Stains (wood, etc.).
141. Shampoos.
142. Soaps and bath preparations.
311. Cellulose compounds (dehydration).
312. Sodium hydrosulfite (dehydration).
315. Other dehydration products.
320. Petroleum products.
331. Processing pectin.
332. Processing other food products.
341. Processing crude drugs.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
345. Processing blood and blood products.
349. Miscellaneous drug processing (including manufacture of pills).
351. Processing dyes and intermediates.
352. Processing perfume materials and fixatives.
353. Processing photographic chemicals.
354. Processing rosin.
355. Processing rubber (latex).
358. Processing other chemicals.
359. Processing miscellaneous products.
410. Disinfectants, insecticides, fungicides, and other biocides.
420. Embalming fluids and related products.
430. Sterilizing and preserving solutions.
440. Industrial detergents and soaps.
450. Cleaning solutions (including household detergents).
470. Theater sprays, incense, and room deodorants.
481. Photoengraving and rotogravure dyes and solutions.
482. Other dye solutions.
485. Miscellaneous solutions (including duplicating fluids).

    (2) As a raw material:

530. Ethylamines.
540. Dyes and intermediates.
575. Drugs and medicinal chemicals.
576. Organo-silicone products.
579. Other chemicals.
590. Synthetic resins.

    (3) As a fuel:

611. Automobile and supplementary fuels.
612. Airplane and supplementary fuels.
613. Rocket and jet fuels.
620. Proprietary heating fuels.
630. Other fuel uses.

    (4) As a fluid:

710. Scientific instruments.
720. Brake fluids.
730. Cutting oils.
740. Refrigerating uses.
750. Other fluid uses.

    (5) Miscellaneous uses:

810. General laboratory and experimental use (own use only).
811. Laboratory reagents for sale.
812. Product development and pilot plant uses (own use only).
900. Specialized uses (unclassified).

    (c) Conditions governing use. This formula shall not be used in 
manufacturing Reagent alcohol general-use formula under Sec.  20.117 of 
this chapter.

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 
FR 9183, Mar. 6, 1985]



Sec.  21.38  Formula No. 4.

    (a) Formula. To every 100 gallons of alcohol, or to every 100 
gallons of rum of not less than 150 proof, add:

One gallon of the following solution: Five gallons of an aqueous 
solution containing 40 percent nicotine; 3.6 avoirdupois ounces of 
methylene blue, U.S.P.; and water sufficient to make 100 gallons.

    (b) Authorized uses. (1) As a solvent:

460. Tobacco sprays and flavors.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.39  Formula No. 6-B.

    (a) Formula. To every 100 gallons of alcohol add:

One-half gallon of pyridine bases.

    (b) Authorized uses. (1) As a raw material:


[[Page 539]]


523. Miscellaneous ethyl esters.
574. Fulminate of mercury and other detonators.
575. Drugs and medicinal chemicals.
579. Other chemicals.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.40  Formula No. 12-A.

    (a) Formula. To every 100 gallons of alcohol add:

Five gallons of benzene, or 5 gallons of toluene.

    (b) Authorized uses. (1) as a solvent:

021. Cellulose plastics.
022. Non-cellulose plastics, including resins.
036. Adhesives and binders.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
345. Processing blood and blood products.
351. Processing dyes and intermediates.
352. Processing perfume materials and fixatives.
354. Processing rosin.
358. Processing other chemicals.
359. Processing miscellaneous products.
430. Sterilizing and preserving solutions.

    (2) As a raw material:

523. Miscellaneous ethyl esters.
530. Ethylamines.
540. Dyes and intermediates.
575. Drugs and medicinal chemicals.
579. Other chemicals.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.41  Formula No. 13-A.

    (a) Formula. To every 100 gallons of alcohol add:

Ten gallons of ethyl ether.

    (b) Authorized uses. (1) As a solvent:

015. Candy glazes.
021. Cellulose plastics.
022. Non-cellulose plastics, including resins.
031. Photographic film and emulsions.
032. Transparent sheeting.
034. Cellulose intermediates and industrial collodions.
052. Inks (not including meat branding inks).
241. Collodion, U.S.P.
331. Processing pectin.
332. Processing other food products.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
345. Processing blood and blood products.
349. Miscellaneous drug processing (including manufacture of pills).
352. Processing perfume materials and fixatives.
353. Processing photographic chemicals.
358. Processing other chemicals.
359. Processing miscellaneous products.
430. Sterilizing and preserving solutions.
481. Photoengraving and rotogravure solutions and dyes.

    (2) As a raw material:

523. Miscellaneous ethyl esters.
561. Ethyl ether.
562. Other ethers.
575. Drugs and medicinal chemicals.
579. Other chemicals.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.42  Formula No. 17.

    (a) Formula. To every 100 gallons of alcohol add:

Five-hundredths (0.05) gallon (6.4 fluid ounces) of bone oil (Dipple's 
oil).

    (b) Authorized uses. (1) As a solvent:

344. Processing medicinal chemicals (including alkaloids).
358. Processing other chemicals.
359. Processing miscellaneous products.

    (2) As a raw material:

575. Drugs and medicinal chemicals.
579. Other chemicals.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.43  Formula No. 18.

    (a) Formula. To every 100 gallons of alcohol of not less than 160 
proof add:

One hundred gallons of vinegar of not less than 90-grain strength or 150 
gallons of vinegar of not less than 60-grain strength.

    (b) Authorized uses. (1) As a raw material:

511. Vinegar.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

[[Page 540]]



Sec.  21.44  Formula No. 19.

    (a) Formula. To every 100 gallons of alcohol add:

One hundred gallons of ethyl ether.

    (b) Authorized uses. (1) As a solvent:

031. Photographic film and emulsions.
034. Cellulose intermediates and industrial collodions.
241. Collodion, U.S.P.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.45  Formula No. 20.

    (a) Formula. To every 100 gallons of alcohol add:

Five gallons of chloroform.

    (b) Authorized uses. (1) As a raw material:

579. Miscellaneous chemicals (chloroform).

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.46  Formula No. 22.

    (a) Formula. To every 100 gallons of alcohol add:

Ten gallons of formaldehyde solution, U.S.P.

    (b) Authorized uses. (1) As a solvent:

420. Embalming fluids and related products.
430. Sterilizing and preserving solutions.
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.47  Formula No. 23-A.

    (a) Formula. To every 100 gallons of alcohol add:

Eight gallons of acetone, U.S.P.

    (b) Authorized uses. (1) As a solvent:

011. Cellulose coatings.
012. Synthetic resin coatings.
013. Shellac coatings.
014. Other natural resin coatings.
015. Candy glazes.
016. Other coatings.
032. Transparent sheeting.
034. Cellulose intermediates and industrial collodions.
035. Soldering flux.
036. Adhesives and binders.
042. Solvents and thinners (other than proprietary solvents or special 
industrial solvents).
052. Inks (including meat branding inks).
053. Stains (wood, etc.).
111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
114. Body deodorants and deodorant creams.
141. Shampoos.
142. Soaps and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.
244. Antiseptic solutions, U.S.P. or N.F.
249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.
331. Processing pectin.
332. Processing other food products.
341. Processing crude drugs.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
345. Processing blood and blood products.
349. Miscellaneous drug processing (including manufacture of pills).
358. Processing other chemicals.
359. Processing miscellaneous products.
410. Disinfectants, insecticides, fungicides, and other biocides.
420. Embalming fluids and related products.
430. Sterilizing and preserving solutions.
440. Industrial detergents and soaps.
450. Cleaning solutions (including household detergents).
482. Miscellaneous dye solutions.
485. Miscellaneous solutions.

    (2) As a fluid:

740. Refrigerating uses.
750. Miscellaneous fluid uses.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.48  Formula No. 23-F.

    (a) Formula. To every 100 gallons of alcohol add:

Three pounds of salicylic acid, U.S.P., 1 pound of resorcinol 
(resorcin), U.S.P., and 1 gallon of bergamot oil, N.F. XI, or bay oil 
(myrcia oil), N.F. XI.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
210. External pharmaceuticals, not U.S.P. or N.F.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

[[Page 541]]



Sec.  21.49  Formula No. 23-H.

    (a) Formula. To every 100 gallons of alcohol add:

Eight gallons of acetone, U.S.P., and 1.5 gallons of methyl isobutyl 
ketone.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
113. Lotions and creams (hand, face, and body).
210. External pharmaceuticals, not U.S.P. or N.F.
220. Rubbing alcohols.
410. Disinfectants, insectides, fungicides, and other biocides.
450. Cleaning solutions (including household detergents).

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.50  Formula No. 25.

    (a) Formula. To every 100 gallons of alcohol add:

Twenty pounds of iodine, U.S.P., and 15 pounds of either potassium 
iodide, U.S.P., or sodium iodide, U.S.P.

    (b) Authorized uses. (1) As a solvent:

230. Tinctures of iodine.
249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.51  Formula No. 25-A.

    (a) Formula. To every 100 gallons of alcohol add:

A solution composed of 20 pounds of iodine, U.S.P.; 15 pounds of either 
potassium iodide, U.S.P., or sodium iodide, U.S.P.; and 15 pounds of 
water.

    (b) Authorized uses. (1) As a solvent:

230. Tinctures of iodine.
249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.52  Formula No. 27.

    (a) Formula. To every 100 gallons of alcohol add:

One gallon of rosemary oil, N.F. XII, and 30 pounds of camphor, U.S.P.

    (b) Authorized uses. (1) As a solvent:

210. External pharmaceuticals, not U.S.P. or N.F.
243. Liniments, U.S.P. or N.F.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.53  Formula No. 27-A.

    (a) Formula. To every 100 gallons of alcohol add:

Thirty-five pounds of camphor, U.S.P., and 1 gallon of clove oil, N.F.

    (b) Authorized uses. (1) As a solvent:

210. External pharmaceuticals, not U.S.P. or N.F.
410. Disinfectants, insecticides, fungicides, and other biocides.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.54  Formula No. 27-B.

    (a) Formula. To every 100 gallons of alcohol add:

One gallon of lavender oil, N.F., and 100 pounds of green soap, U.S.P.

    Note. The requirements of this formula may be met by adding 1 gallon 
of lavender oil, N.F., and 66.5 pounds of U.S.P. quality soap 
concentrate containing 25 percent water to 100 gallons of alcohol and, 
after mixing, by adding thereto 33.5 pounds of water and again mixing.

    (b) Authorized uses. (1) As a solvent:

141. Shampoos.
210. External pharmaceuticals, not U.S.P. or N.F.
243. Liniments, U.S.P. or N.F.
410. Disinfectants insecticides, fungicides, and other biocides.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.55  Formula No. 28-A.

    (a) Formula. To every 100 gallons of alcohol add:

One gallon or any combination totaling 1 gallon of either gasoline, 
unleaded gasoline, heptane, or rubber hydrocarbon solvent.

    (b) Authorized uses. (1) As a fuel:

611. Automobile and supplementary fuels.

[[Page 542]]

612. Airplane and supplementary fuels.
613. Rocket and jet fuels.
620. Proprietary heating fuels.
630. Other fuel uses.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.56  Formula No. 29.

    (a) Formula. To every 100 gallons of alcohol add:

One gallon of 100 percent acetaldehyde or 5 gallons of an alcohol 
solution of acetaldehyde containing not less than 20 percent 
acetaldehyde, or 1 gallon of ethyl acetate having an ester content of 
100 percent, or, where approved by the appropriate TTB officer, as to 
material and quantity, not less than 6.8 pounds if solid, or 1 gallon if 
liquid, of any chemical. When material other than acetaldehyde or ethyl 
acetate is proposed to be used, the user shall submit an application for 
such use to the appropriate TTB officer. The application shall include 
specifications, assay methods, and an 8-ounce sample of the substitute 
material for analysis.

    (b) Authorized uses. (1) As a raw material:

511. Vinegar.
512. Acetic acid.
521. Ethyl acetate.
522. Ethyl chloride.
523. Other ethyl esters.
530. Ethylamines.
540. Dyes and intermediates.
551. Acetaldehyde.
552. Other aldehydes.
561. Ethyl ether.
562. Other ethers.
571. Ethylene dibromide.
572. Ethylene gas.
573. Xanthates.
575. Drugs and medicinal chemicals.
579. Other chemicals.
580. Synthetic rubber.
590. Synthetic resins.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

    (c) Conditions governing use. This formula is restricted to 
processes in which the alcohol loses its identity by being converted 
into other chemicals.



Sec.  21.57  Formula No. 30.

    (a) Formula. To every 100 gallons of alcohol add:

Ten gallons of methyl alcohol.

    (b) Authorized uses. (1) As a solvent:

011. Cellulose coatings.
012. Synthetic resin coatings.
021. Cellulose plastics.
022. Non-cellulose plastics, including resins.
031. Photographic film and emulsions.
035. Soldering flux.
036. Adhesives and binders.
042. Solvents and thinners (other than proprietary solvents or special 
industrial solvents).
051. Polishes.
052. Inks (not including meat branding inks).
053. Stains.
142. Soap and bath preparations.
331. Processing pectin.
332. Processing other food products.
341. Processing crude drugs.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
345. Processing blood and blood products.
349. Miscellaneous drug processing (including manufacture of pills).
352. Processing perfume materials and fixatives.
353. Processing photographic chemicals.
358. Processing other chemicals.
359. Processing miscellaneous products.
410. Disinfectants, insecticides, fungicides, and other biocides.
430. Sterilizing and preserving solutions.
440. Industrial detergents and soaps.
450. Cleaning solutions (including household detergents).
481. Photoengraving and rotogravure solutions and dyes.
482. Other dye solutions.
485. Miscellaneous solutions (including duplicating fluids).

    (2) As a raw material:

575. Drugs and medicinal chemicals.
576. Organo-silicone products.
579. Other chemicals.
590. Synthetic resins.

    (3) As a fluid in:

740. Refrigerating uses.
750. Other fluid uses:

    (4) Miscellaneous uses:

810. General laboratory and experimental use (own use only).
811. Laboratory reagents for sale.
812. Product development and pilot plant uses (own use only).



Sec.  21.58  Formula No. 31-A.

    (a) Formula. To every 100 gallons of alcohol add:


[[Page 543]]


One hundred pounds of glycerin (glycerol), U.S.P., and 20 pounds of hard 
soap, N.F. XI.

    (b) Authorized uses. (1) As a solvent:

113. Lotions and creams (hands, face, and body).
131. Tooth paste and tooth powder.
141. Shampoos.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.59  Formula No. 32.

    (a) Formula. To every 100 gallons of alcohol add:

Five gallons of ethyl ether.

    (b) Authorized uses. (1) As a solvent:

031. Photographic film and emulsions.
034. Cellulose intermediates and industrial collodions.
052. Inks (not including meat branding inks).
241. Collodion, U.S.P.
311. Ethyl cellulose compounds (dehydration).
332. Processing miscellaneous food products.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
430. Sterilizing and preserving solutions.
481. Photoengraving and rotogravure solutions and dyes.

    (2) As a raw material:

522. Ethyl chloride.
523. Other ethyl esters.
561. Ethyl ether.
562. Other ethers.
571. Ethylene dibromide.
572. Ethylene gas.
575. Drugs and medicinal chemicals.
579. Other chemicals.
580. Synthetic rubber.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.60  Formula No. 33.

    (a) Formula. To every 100 gallons of alcohol add:

Thirty pounds of gentian violet or gentian violet, U.S.P.

    (b) Authorized uses. (1) As a solvent:

052. Inks (not including meat branding inks).
210. External pharmaceuticals, not U.S.P. or N.F.
249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

    (c) Conditions governing use. Meat branding inks made with Formula 
No. 33 do not meet U.S. Department of Agriculture meat inspection 
specifications for use in Federally inspected establishments. Specially 
denatured alcohol Formulas No. 3-A, 3-C, and 23-A are authorized for 
this purpose.



Sec.  21.61  Formula No. 35.

    (a) Formula. To every 100 gallons of alcohol add:

29.75 gallons of ethyl acetate having an ester content of 100 percent by 
weight or the equivalent thereof not to exceed 35 gallons of ethyl 
acetate with an ester content of not less than 85 percent by weight.

    (b) Authorized uses. (1) As a solvent:

015. Candy glazes.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.62  Formula No. 35-A.

    (a) Formula. To every 100 gallons of alcohol add:

4.25 gallons of ethyl acetate having an ester content of 100 percent by 
weight or the equivalent thereof not to exceed 5 gallons of ethyl 
acetate with an ester content of not less than 85 percent by weight.

    (b) Authorized uses. (1) As a solvent:

015. Candy glazes.
331. Processing pectin.
332. Processing other food products.
342. Processing glandular products, vitamins, hormones, and yeasts.
343. Processing antibiotics and vaccines.
344. Processing medicinal chemicals (including alkaloids).
349. Miscellaneous drug processing (including manufacture of pills).
358. Processing miscellaneous chemicals.
359. Processing miscellaneous products.

    (2) As a raw material:

511. Vinegar.
512. Acetic acid.
521. Ethyl acetate.
523. Other ethyl esters.
590. Synthetic resins.

[[Page 544]]

910. Animal feed supplements.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.63  Formula No. 36.

    (a) Formula. To every 100 gallons of alcohol add:

Three gallons of ammonia, aqueous, 27 to 30 percent by weight; 3 gallons 
of strong ammonia solution, N.F.: 17.5 pounds of caustic soda, liquid 
grade, containing 50 percent sodium hydroxide by weight; or 12.0 pounds 
of caustic soda, liquid grade, containing 73 percent sodium hydroxide by 
weight.

    (b) Authorized uses. (1) As a solvent:

141. Shampoos.
142. Soap and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.
450. Cleaning solutions (including household detergents).

    (2) As a raw material:

530. Ethylamines.
540. Dyes and intermediates.
579. Other chemicals.

    (3) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.64  Formula No. 37.

    (a) Formula. To every 100 gallons of alcohol add:

Forty-five fluid onces of eucalyptol, N.F. XII, 30 avoirdupois ounces of 
thymol, N.F., and 20 avoirdupois ounces of menthol, U.S.P.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
131. Dentifrices.
132. Mouth washes.
210. External pharmaceuticals, not U.S.P. or N.F.
244. Antispetic solutions, U.S.P. or N.F.
410. Disinfectants, insecticides, fungicides, and other biocides.
430. Sterilizing and preserving solutions.
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.65  Formula No. 38-B.

    (a) Formula. To every 100 gallons of alcohol add:

Ten pounds of any one, or a total of 10 pounds of two or more, of the 
          oils and substances listed below:

Alpha terpineol
Anethole, N.F.
Anise oil, N.F.
Bay oil (myrcia oil), N.F. XI.
Benzaldehyde, N.F.
Bergamot oil, N.F. XI.
Bitter almond oil, N.F. X.
Camphor, U.S.P.
Cedar leaf oil, U.S.P. XIII.
Chlorothymol, N.F. XII.
Cinnamic aldehyde, N.F. IX.
Cinnamon oil, N.F.
Citronella oil, natural.
Clove oil, N.F.
Coal tar, U.S.P.
Eucalyptol, N.F. XII.
Eucalyptus oil, N.F.
Eugenol, U.S.P.
Guaiacol, N.F. X.
Lavender oil, N.F.
Menthol, U.S.P.
Methyl salicylate, N.F.
Mustard oil, volatile (allyl isothiocyanate), U.S.P. XII.
Peppermint oil, N.F.
Phenol, U.S.P.
Phenyl salicylate (salol), N.F. XI.
Pine oil, N.F. XII.
Pine needle oil, dwarf, N.F.
Rosemary oil, N.F. XII.
Safrole.
Sassafras oil, N.F. XI.
Spearmint oil, N.F.
Spearmint oil, terpeneless.
Spike lavender oil, natural.
Storax, U.S.P.
Thyme oil, N.F. XII.
Thymol, N.F.
Tolu balsam, U.S.P.
Turpentine oil, N.F. XI.

    If it is shown that none of the above single denaturants or 
combinations can be used in the manufacture of a particular product, the 
user may submit an application to the appropriate TTB officer, 
requesting permission to use another essential oil or substance having 
denaturing properties satisfactory to the appropriate TTB officer. In 
such a case the user shall furnish the appropriate TTB officer, with 
specifications, assay methods, the name and address of the manufacturer, 
and an 8-ounce sample of the denaturant for analysis.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.

[[Page 545]]

112. Bay rum.
113. Lotions and creams (hand, face, and body).
114. Deodorants (body).
121. Perfumes and perfume tinctures.
122. Toilet waters and colognes.
131. Dentifrices.
132. Mouth washes.
141. Shampoos.
142. Soap and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.
243. Liniments, U.S.P. or N.F.
244. Antiseptic solutions, U.S.P. or N.F.
249. Miscellaneous external pharmaceuticals, U.S.P. or N.F.
349. Miscellaneous drug processing (including manufacture of pills).
410. Disinfectants, insecticides, fungicides, and other biocides.
430. Sterlizing and preserving solutions.
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 
FR 12854, Mar. 1, 2001]



Sec.  21.66  Formula No. 38-C.

    (a) Formula. To every 100 gallons of alcohol add:

Ten pounds of menthol, U.S.P., and 1.25 gallons of formaldehyde 
solution, U.S.P.

    (b) Authorized uses. (1) As a solvent:

131. Dentifrices.
132. Mouth washes.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.67  Formula No. 38-D.

    (a) Formula. To every 100 gallons of alcohol add:

Two and one-half pounds of menthol, U.S.P., and 2.5 gallons of 
formaldehyde solution, U.S.P.

    (b) Authorized uses. (1) As a solvent:

131. Dentifrices.
132. Mouth washes.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.68  Formula No. 38-F.

    (a) Formula. To every 100 gallons of alcohol add:

(1) Six pounds of either boric acid, N.F., or Polysorbate 80, N.F.; 1\1/
3\ pounds of thymol, N.F.; 1\1/3\ pounds of chlorothymol, N.F. XII; and 
1\1/3\ pounds of menthol, U.S.P.; or
(2) A total of at least 3 pounds of any two or more denaturing materials 
listed under Formula No. 38-B, plus sufficient boric acid, N.F., or 
Polysorbate 80, N.F., to total 10 pounds of denaturant; or
(3) Seven pounds of zinc chloride, U.S.P., 2.6 fluid ounces of 
hydrochloric acid, N.F., and a total of 3 pounds of any two or more of 
the denaturing materials listed under Formula No. 38-B.

    (b) Authorized uses. (1) As a solvent:

132. Mouth washes.
210. External pharmaceuticals, not U.S.P. or N.F.
244. Antiseptic solutions, U.S.P. or N.F.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.69  Formula No. 39.

    (a) Formula. To every 100 gallons of alcohol add:

Nine pounds of sodium salicylate, U.S.P., or salicylic acid, U.S.P.; 
1.25 gallons of fluid extract of quassia, N.F. VII; and \1/8\ gallon of 
tert-butyl alcohol.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
121. Perfume and perfume tinctures.
122. Toilet waters and colognes.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.70  Formula No. 39-A.

    (a) Formula. To every 100 gallons of alcohol add:

Sixty avoirdupois ounces of any one of the following alkaloids or salts 
          together with \1/8\ gallon of tert- butyl alcohol:
Quinine, N.F. X.
Quinine bisulfate, N.F. XI.
Quinine dihydrochloride, N.F. XI.
Cinchonidine.
Cinchonidine sulfate, N.F. IX.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.

[[Page 546]]

122. Toilet waters and colognes.
141. Shampoos.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.71  Formula No. 39-B.

    (a) Formula. To every 100 gallons of alcohol add:

Two and one-half gallons of diethyl phthalate and \1/8\ gallon of tert-
butyl alcohol.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
114. Deodorants (body).
121. Perfumes and perfume tinctures.
122. Toilet waters and colognes.
141. Shampoos.
142. Soap and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.
410. Disinfectants, insecticides, fungicides, and other biocides.
450. Cleaning solutions (including household detergents).
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.72  Formula No. 39-C.

    (a) Formula. To every 100 gallons of alcohol add:

One gallon of diethyl phthalate.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
113. Lotions and creams (hand, face, and body).
114. Deodorants (body).
121. Perfumes and perfume tinctures.
122. Toilet waters and colognes.
142. Soaps and bath preparations.
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.73  Formula No. 39-D.

    (a) Formula. To every 100 gallons of alcohol add:

One gallon of bay oil (myrcia oil), N.F. XI, and either 50 avoirdupois 
ounces of quinine sulfate, U.S.P., 50 avoirdupois ounces of sodium 
salicylate, U.S.P.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.74  Formula No. 40.

    (a) Formula. To every 100 gallons of alcohol add \1/8\ gallon of 
tert-butyl alcohol, and:

One and one-half avoirdupois ounces of either (1) brucine alkaloid, (2) 
brucine sulfate, N.F. IX, (3) quassin, or (4) any combination of two or 
of three of those denaturants.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
114. Deodorants (body).
121. Perfumes and perfume tinctures.
122. Toilet waters and colognes.
141. Shampoos.
142. Soaps and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.
410. Disinfectants, insecticides, fungicides, and other biocides.
450. Cleaning solutions (including household detergents).
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.75  Formula No. 40-A.

    (a) Formula. To every 100 gallons of alcohol add:

One pound of sucrose octaacetate and \1/8\ gallon of tert-butyl alcohol.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
114. Deodorants (body).
121. Perfumes and perfume tinctures.
122. Toilet waters and colognes.
141. Shampoos.
142. Soaps and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.

[[Page 547]]

410. Disinfectants, insecticides, fungicides, and other biocides.
450. Cleaning solutions (including household detergents).
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.76  Formula No. 40-B.

    (a) Formula. To every 100 gallons of alcohol add:

One-sixteenth avoirdupois ounce of denatonium benzoate, N.F., and \1/8\ 
gallon of tert-butyl alcohol.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
114. Deodorants (body).
121. Perfumes and perfume tinctures.
122. Toilet waters and colognes.
141. Shampoos.
142. Soaps and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.
410. Disinfectants, insecticides, fungicides, and other biocides.
450. Cleaning solutions (including household detergents).
470. Theater sprays, incense, and room deodorants.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 
FR 12854, Mar. 1, 2001]



Sec.  21.77  Formula No. 40-C.

    (a) Formula. To every 100 gallons of alcohol add:

Three gallons of tert-butyl alcohol.

    (b) Authorized uses. (1) As a solvent:

111. Hair and scalp preparations.
112. Bay rum.
113. Lotions and creams (hand, face, and body).
114. Deodorants (body).
121. Perfumes and perfume tinctures.
122. Toilet waters and colognes.
141. Shampoos.
142. Soaps and bath preparations.
210. External pharmaceuticals, not U.S.P. or N.F.
410. Disinfectants, insecticides, fungicides, and other biocides.
450. Cleaning solutions (including household detergents).
470. Theater sprays, incense, and room deodorants.
485. Miscellaneous solutions.

    (2) Miscellaneous uses.

812. Product development and pilot plant uses (own use only).

    (c) Conditions governing use. This formula shall be used only in the 
manufacture of products which will be packaged in pressurized containers 
in which the liquid contents are in intimate contact with the propellant 
and from which the contents are not easily removable in liquid form.



Sec.  21.78  Formula No. 42.

    (a) Formula. To every 100 gallons of alcohol add:

(1) Eighty grams of potassium iodide, U.S.P., and 109 grams of red 
mercuric iodide, N.F. XI; or
(2) Ninety-five grams of thimerosal, U.S.P.; or
(3) Seventy-six grams of any of the following: phenyl mercuric nitrate, 
N.F.; phenyl mercuric chloride, N.F. IX; or phenyl mercuric benzoate.

    (b) Authorized uses. (1) As a solvent:

430. Sterilizing and preserving solutions.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.79  Formula No. 44.

    (a) Formula. To every 100 gallons of alcohol add:

Ten gallons of n-butyl alcohol

    (b) Authorized uses. (1) As a solvent:

430. Sterilizing and preserving solutions.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).



Sec.  21.80  Formula No. 45.

    (a) Formula. To every 100 gallons of alcohol add:

Three hundred pounds of refined white or orange shellac.

    (b) Authorized uses. (1) As a solvent:

015. Candy glazes.

    (2) Miscellaneous uses:


[[Page 548]]


812 Product development and pilot plant uses (own use only).



Sec.  21.81  Formula No. 46.

    (a) Formula. To every 100 gallons of alcohol add:

Twenty-five fluid ounces of phenol, U.S.P., and 4 fluid ounces of methyl 
salicylate, N.F.

    (b) Authorized uses. (1) As a solvent:

220. An antiseptic, sterilizing, and bathing solution having restricted 
use.

    (2) Miscellaneous uses:

812. Product development and pilot plant uses (own use only).

    (c) Conditions governing use. This formula may be used only by 
institutions and organizations which are of a semipublic character and 
engaged in charitable work.



                Subpart E_Specifications for Denaturants



Sec.  21.91  General.

    Denaturants prescribed in this part shall comply with the 
specifications set forth in this subpart. However, in order to meet 
requirements of national defense or for other valid reasons, the 
appropriate TTB officer may, pursuant to written application filed by 
the denaturer, authorize variations from such specifications or 
authorize the use of substitute denaturants if such variation or 
substitution will not jeopardize the revenue. Each such application 
shall identify the applicant by name, address, and permit number; state 
the number of each formula of specially denatured alcohol involved; 
explain why the use of the substitute denaturant, or the variation from 
specifications, as the case may be, is necessary; and include, as 
applicable, either the identity of the approved denaturant for which 
substitution is desired and the identity of the substitute denaturant 
(including the name of the manufacturer) or the identity of the 
prescribed specifications and the proposed variation from those 
specifications. The application shall be accompanied by an 8-ounce 
sample of the proposed denaturing material for analysis.

[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 
FR 12854, Mar. 1, 2001]



Sec.  21.92  Denaturants listed as U.S.P. or N.F.

    Denaturing materials and products listed in this part as ``U.S.P.'' 
or ``N.F.'' shall meet the specifications set forth in the current 
United States Pharmacopoeia or National Formulary, or the latest volume 
of these publications in which the denaturants appeared as official 
preparations.



Sec.  21.93  Acetaldehyde.

    (a) Aldehyde content (as acetaldehyde). Not less than 95.0 percent 
by weight.
    (b) Color. Colorless.
    (c) Odor. Characteristic pungent, fruity odor.
    (d) Specific gravity at 15.56 [deg]/15.56 [deg]C. Not less than 
0.7800.



Sec.  21.94  Acetaldol.

    (a) Purity. Not less than 90 percent by weight acetaldol as 
determined by the following method:

    Dissolve 15 grams of the acetaldol in distilled water and dilute to 
1 liter in a volumetric flask. Transfer 5 ml of this solution to a 250 
ml glass-stoppered flask containing 25 ml distilled water. Add 25 ml of 
a freshly prepared 1 percent sodium bisulfite solution. Prepare a blank 
omitting the acetaldol solution. Place the flasks in a dark place away 
from excessive heat or cold and allow to stand six hours. Remove flasks 
and titrate free bisulfite with 0.1 N iodine solution using starch 
indicator.

Percent acetaldol by weight=(ml blank-ml test)x200x0.44/weight of sample

    Titrations in excess of 100 percent may be obtained if the sample 
contains appreciable amounts of acetaldehyde.

    (b) Specific gravity at 20 [deg]C. 1.098 to 1.105.



Sec.  21.95  Alpha terpineol.

    (a) Boiling point at 752mm 218.8-219.4 [deg]C.
    (b) Density at 15[deg] 0.9386.
    (c) Refractive index at 20[deg] 1.4831.

[T.D. ATF-442, 66 FR 12854, Mar. 1, 2001]

[[Page 549]]



Sec.  21.96  Ammonia, aqueous.

    (a) Alkalinity. Strongly alkaline to litmus.
    (b) Ammonia content. 27 to 30 percent by weight. Accurately weigh a 
glass-stoppered flask containing 25 ml of water, add about 2 ml of the 
sample, stopper, and weigh again. Add methyl red indicator, and titrate 
with 1 N sulfuric acid. Each ml of 1 N sulfuric acid is equivalent to 
17.03 mg of NH3
    (c) Color. Colorless liquid.
    (d) Non-volatile residue. 2 mg maximum. Dilute a portion of the 
sample with 1\1/2\ times its volume of distilled water. Evaporate 10 ml 
of this product to dryness in a tared platinum or porcelain dish. Dry 
residue at 105 [deg]C. for 1 hour, cool and weigh.
    (e) Odor. Characteristic (exceedingly pungent).
    (f) Specific gravity at 20 [deg]/4 [deg]C. 0.8920 to 0.9010.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.97  Benzene.

    (a) Distillation range. (For applicable ASTM method, see 1980 Annual 
Book of ASTM Standards, Part 29, page 573, Standard No. D 836-77; for 
incorporation by reference, see Sec.  21.6(b).) When 100 ml of benzene 
are distilled by this method, not more than 1 ml should distill below 77 
[deg]C., and not less than 95 ml below 85 [deg]C.
    (b) Odor. Characteristic odor.
    (c) Specific gravity at 15.6 [deg]/15.6 [deg]C. 0.875 to 0.886.
    (d) Water solubility. When 10 ml of benzene are shaken with an equal 
volume of water in a glass-stoppered bottle, graduated to 0.1 ml, and 
allowed to stand 5 minutes to separate, the upper layer of liquid shall 
measure not less than 9.5 ml.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.98  Bone oil (Dipple's oil).

    (a) Color. The color shall be a deep brown.
    (b) Distillation range. When 100 ml are distilled in the manner 
described for pyridine bases, not more than 5.0 ml should distill below 
90 [deg]C.
    (c) Pyrrol reaction. Prepare a 1.0 percent solution of bone oil in 
95 percent alcohol. Prepare a second solution containing 0.025 percent 
bone oil by diluting 2.50 ml of the first solution to 100 ml with 95 
percent alcohol. Dip a splinter of pine, previously moistened with 
concentrated hydrochloric acid, into 10 ml of the 0.025 percent bone oil 
solution. After a few minutes the splinter should show a distinct red 
coloration.
    (d) Reaction with mercuric chloride. Add 5 ml of the 1.0 percent 
bone oil solution above to 5 ml of a 2 percent alcoholic solution of 
mercuric chloride. A turbidity is formed at once which separates into a 
flocculent precipitate on standing several minutes. Add 5.0 ml of the 
0.025 percent bone oil solution to 5.0 ml of a 2.0 percent alcoholic 
solution of mercuric chloride. A faint turbidity appears after several 
minutes.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.99  Brucine alkaloid.

    (a) Identification test. Add a few drops of concentrated nitric acid 
to about 10 mg of brucine alkaloid. A vivid red color is produced. 
Dilute the red solution with a few drops of water and add a few drops of 
freshly made dilute stannous chloride solution. A reddish purple 
(violet) color is produced.
    (b) Melting point. 178 [deg]1 [deg]C. Dry the 
alkaloid in an oven for one hour at 100 [deg]C., increase the 
temperature to 110[deg] and dry to a constant weight before taking 
melting point.

    Note. Brucine alkaloid tetrahydrate melts at 105 [deg]C. while the 
anhydrous form melts at 178 [deg]C.

    (c) Strychnine test. Brucine alkaloid shall be free of strychnine 
when tested by the method listed under Brucine Sulfate, N.F. IX.

    Note. If the brucine contains as much as 0.05 percent strychnine, a 
clear distinctive violet color, characteristic of strychnine, will be 
obtained.

    (d) Sulfate test. No white precipitate is formed that is not 
dissolved by hydrochloric acid when several drops of a

[[Page 550]]

1 N barium chloride solution are added to 10 ml of a solution of the 
alkaloid.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.100  n-Butyl alcohol.

    (a) Acidity (as acetic acid). 0.03 percent by weight maximum.
    (b) Color. Colorless.
    (c) Dryness at 20 [deg]C. Miscible without turbidity with 10 volumes 
of 60[deg] B[eacute]1. gasoline.
    (d) Odor. Characteristic odor.
    (e) Specific gravity at 20 [deg]/20 [deg]C. 0.810 to 0.815.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.101  tert-Butyl alcohol.

    (a) Acidity (as acetic acid). 0.003 percent by weight maximum.
    (b) Color. Colorless.
    (c) Distillation range. When 100 ml of tertiary butyl alcohol are 
distilled, none should distill below 78 [deg]C. and none above 85 
[deg]C. More than 95 percent should distill between 81 [deg]-83 [deg]C.
    (d) Dryness at 20 [deg]C. Miscible without turbidity with 19 volumes 
of 60[deg] B[eacute]1. gasoline.
    (e) Freezing point (first needle). Above 20 [deg]C.
    (f) Identification test. Place five drops of a solution containing 
approximately 0.1 percent tertiary butyl alcohol in ethyl alcohol in a 
test tube. Add 2 ml of Denige's reagent (dissolve 5 grams of red 
mercuric oxide in 20 ml of concentrated sulfuric acid; add this solution 
to 80 ml of distilled water, and filter when cool). Heat the mixture 
just to the boiling point and remove from the flame. A yellow 
precipitate forms within a few seconds.
    (g) Nonvolatile matter. Less than 0.005 percent by weight.
    (h) Odor. Characteristic odor.
    (i) Residual odor after evaporation. None.
    (j) Specific gravity at 25 [deg]/25 [deg]C. 0.780 to 0.786.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.102  Caustic soda, liquid.

    (a) The liquid caustic soda may consist of either 50 percent or 73 
percent by weight sodium hydroxide in aqueous solution. The amount of 
caustic soda used shall be such that each 100 gallons of alcohol will 
contain not less than 8.76 pounds of sodium hyroxide, anhydrous basis.
    (b) Color. A 2 percent solution of the sodium hydroxide in water 
shall be water-white.
    (c) Assay. The sodium hydroxide content of the caustic soda solution 
shall be determined by the following procedure:

    Accurately weigh 2 grams of liquid caustic soda into a 100 ml 
volumetric flask, dissolve, and dilute to the mark with distilled water 
at room temperature. Transfer a 25 ml aliquot of the solution to a 
titration flask, add 10 ml of 1 percent barium chloride solution, 0.2 ml 
of 1 percent phenolphthalein indicator, and 50 ml of distilled water. 
Titrate with 0.25 N hydrochloric acid to the disappearance of the pink 
color. Not less than 25 ml of the hydrochloric acid shall be required to 
neutralize the sample of diluted 50 percent caustic soda, and not less 
than 36.5 ml of the hydrochloric acid shall be required to neutralize 
the sample of diluted 73 percent caustic soda.
    One ml of 0.25 N hydrochloric acid equals 0.01 gram of sodium 
hydroxide (anhydrous).

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.103  Chloroform.

    (a) Odor. Characteristic odor.
    (b) Specific gravity at 25 [deg]/25 [deg]C. Not less than 1.400.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.104  Cinchonidine.

    (a) Melting point. 208[deg] to 210 [deg]C.
    (b) Color. White powder.
    (c) Taste. Bitter.
    (d) Test. A solution of cinchonidine in dilute sulfuric acid shall 
not have more than a faint blue fluorescence (to distinguish from 
quinine and quinoidine).

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]

[[Page 551]]



Sec.  21.105  Citronella oil, natural.

    (a) Java type:
    (1) Alcohol content (as Geraniol). Not less than 85 percent by 
weight.
    (2) Aldehyde content (as Citronellal). Not less than 30 percent by 
weight.
    (3) Refractive index at 20 [deg]C. 1.4660 to 1.4745.
    (4) Specific gravity at 25 [deg]/25 [deg]C. 0.875 to 0.893.
    (5) Odor. Characteristic odor.
    (b) Ceylon type:
    (1) Alcohol content (as Geraniol). Not less than 55 percent by 
weight.
    (2) Aldehyde content (as Citronellal). Not less than 7 percent by 
weight.
    (3) Refractive index at 20 [deg]C. 1.4790 to 1.4850.
    (4) Specific gravity at 25 [deg]/25 [deg]C. 0.891 to 0.904.
    (5) Odor. Characteristic odor.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.106  Diethyl phthalate.

    (a) Refractive index at 25 [deg]C. 1.497 to 1.502.
    (b) Color. Colorless.
    (c) Odor. Practically odorless.
    (d) Solubility. Soluble in 20 parts of 60 percent alcohol.
    (e) Specific gravity at 25 [deg]/25 [deg]C. 1.115 to 1.118.
    (f) Ester content (as diethyl phthalate). Not less than 99 percent 
by weight.

    Note. The sample taken for ester determination should be 
approximately 0.8 gram. The number of ml of 0.5 N potassium hydroxide 
used in saponification multiplied by 0.05555 indicates the number of 
grams of ester in the sample taken for assay.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.107  Ethyl acetate.

    (a) 85 percent ester:
    (1) Acidity (as acetic acid). Not more than 0.015 percent by weight.
    (2) Color. Colorless.
    (3) Odor. Characteristic odor.
    (4) Ester content. Not less than 85 percent by weight.
    (5) Specific gravity at 20 [deg]/20 [deg]C. Not less than 0.882.
    (6) Distillation range. (For applicable ASTM method, see 1980 Annual 
Book of ASTM Standards, Part 29, page 70, Standard No. D 302-58 (1975); 
for incorporation by reference, see Sec.  21.6(b).) When 100 ml of ethyl 
acetate are distilled by this method, none shall distill below 70 
[deg]C., not more than 10 ml shall distill below 72 [deg]C., and none 
above 80 [deg]C.
    (b) 100 percent ester:
    (1) Acidity (as acetic acid). Not more than 0.010 percent by weight.
    (2) Color. Colorless.
    (3) Odor. Characteristic odor.
    (4) Ester content. Not less than 99 percent by weight.
    (5) Specific gravity at 20 [deg]/20 [deg]C. Not less than 0.899.
    (6) Distillation range. (For applicable ASTM method, see 1980 Annual 
Book of ASTM Standards, Part 29, page 433, Standard No. D 3127-77; for 
incorporation by reference, see Sec.  21.6(b).) When 100 ml of ethyl 
acetate are distilled by this method, not more than 2 ml shall distill 
below 75 [deg]C., and none above 80 [deg]C. (760 mm).

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.108  Ethyl ether.

    (a) Odor. Characteristic odor.
    (b) Specific gravity at 15.56 [deg]/15.56 [deg]C. Not more than 
0.728.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.109  Gasoline.

    (a) Distillation range. When 100 ml of gasoline are distilled, none 
shall distill below 90 [deg]F. Not more than 5 ml shall be collected 
below 140 [deg]F., and not less than 50 ml shall distill below 230 
[deg]F.
    (b) Odor. Characteristic odor.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.110  Gasoline, unleaded.

    Conforms to specifications as established by the American Society 
for Testing and Materials (ASTM) in the 1980 Annual Book of ASTM 
Standards, Part 23, page 229, Standard No. D 439-79. Any of the 
``seasonal and geographical'' volatility classes for unleaded gasoline 
are considered suitable

[[Page 552]]

as a denaturant. (For incorporation by reference, see Sec.  21.6(b).)

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.111  Gentian violet.

    (a) Gentian violet (methyl violet, methylrosaniline chloride) occurs 
as a dark green powder or crystals having metallic luster.
    (b) Arsenic content. Not more than 15 ppm. (as 
As2O3) as determined by the applicable U.S.P. 
method.
    (c) Identification test. Sprinkle about 1 mg of sample on 1 ml of 
sulfuric acid; it dissolves in the acid with an orange or brown-red 
color. When this solution is diluted cautiously with water, the color 
changes to brown, then to green, and finally to blue.
    (d) Insoluble matter. Not to exceed 0.25 percent when tested by the 
following method:
    Transfer 1.0 gram of sample to a 150 ml beaker containing 50 ml of 
alcohol. Stir to complete solution and filter through a weighed Whatman 
No. 4 filter paper. Wash residue with small amounts of alcohol totaling 
about 50 ml. Dry paper in oven for 30 minutes at 80 [deg]C. and weigh. 
Calculate insoluble material.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.112  Heptane.

    (a) Distillation range. No distillate should come over below 200 
[deg]F. and none above 211 [deg]F.
    (b) Odor. Characteristic odor.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.113  Isopropyl alcohol.

    Specific gravity at 15.56 [deg]/15.56 [deg]C. 0.810 maximum.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.114  Kerosene.

    (a) Distillation range. (For applicable ASTM method, see 1980 Annual 
Book of ASTM Standards, Part 25, page 395, Standard No. D 3699-78 for 
burner fuel; see Part 23, page 849, Standard Nos. D 1655-80a for 
aviation turbine fuels and D 86-78 for distillation of petroleum 
products; for incorporation by reference, see Sec.  21.6(b).) No 
distillate should come over below 340 [deg]F. and none above 570 [deg]F.
    (b) Flash point. 115 [deg]F. minimum.
    (c) Odor. Characteristic odor.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.115  Kerosene (deodorized).

    (a) Distillation range. No distillate should come over below 340 
[deg]F. and none above 570 [deg]F.
    (b) Flash point. 155 [deg]F. minimum.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.116  Methyl alcohol.

    Specific gravity at 15.56 [deg]/15.56 [deg]C. 0.810 maximum.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.117  Methyl isobutyl ketone.

    (a) Acidity (as acetic acid). 0.02 percent by weight, maximum.
    (b) Color. Colorless.
    (c) Distillation range. (For applicable ASTM method, see 1980 Annual 
Book of ASTM Standards, Part 29, page 147, Standard No. D 1153-77; for 
incorporation by reference, see Sec.  21.6(b).) No distillate should 
come over below 111 [deg]C. and none above 117 [deg]C.
    (d) Odor. Characteristic odor.
    (e) Specific gravity at 20 [deg]/20 [deg]C. 0.799 to 0.804.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.118  Methyl n-butyl ketone.

    (a) Acidity (as acetic acid). 0.02 percent by weight, maximum.
    (b) Color. Colorless.
    (c) Odor. Characteristic odor.
    (d) Refractive index at 20 [deg]C. 1.396 to 1.404.
    (e) Specific gravity at 20 [deg]/20 [deg]C. 0.800 to 0.835.

[[Page 553]]

    (f) Distillation range. No distillate should come over below 123 
[deg]C. and none above 129 [deg]C.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.119  Nicotine solution.

    (a) Composition. Five gallons of an aqueous solution containing 40 
percent nicotine; 3.6 avoirdupois ounces of methylene blue, U.S.P.; 
water sufficient to make 100 gallons.
    (b) Color. One ml of the nicotine solution (previously agitated in 
the presence of air) is measured into 100 ml of water and thoroughly 
mixed. Fifty ml of this colored solution is compared, using Nessler 
tubes, with 50 ml of a standard color solution containing 5 grams of 
CuSO4[middot]5H2 O, C.P. in 100 ml of water. The 
color intensity of the solution tested should be equal to or greater 
than that of the standard solution.
    (c) Nicotine content. The above solution must contain not less than 
1.88 percent of nicotine determined by the following process: 20 ml of 
the solution are measured into a 500 ml Kjeldahl flask provided with a 
suitable bulb tube, 50 ml of 0.1 N NaOH added and the mixture distilled 
in a current of steam until the distillate is no longer alkaline (about 
500 ml). The distillate is then titrated with 0.1 N 
H2SO4 using rosolic acid or methyl red as 
indicator. Not less than 23.2 ml should be required for neutralization.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.120  Nitropropane, mixed isomers of.

    (a) Nitropropane content. A minimum of 94 percent by weight.
    (b) Total nitroparaffin content. A minimum of 99 percent by weight.
    (c) Distillation range. 119[deg] to 113 [deg]C.
    (d) Specific gravity at 20[deg]/20 [deg]C. 0.992 to 1.003.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.121  Phenyl mercuric benzoate.

    (a) Assay (as phenyl mercuric benzoate). Not less than 99.0 percent 
by weight.
    (b) Melting point. Not less than 94 [deg]C.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.122  Pyridine bases.

    (a) Alkalinity. One ml of pyridine bases dissolved in 10 ml of water 
is titrated with 1 N H2SO4 until a drop of the 
mixture placed upon Congo paper shows a distinct blue border, which soon 
disappears. A minimum of 9.5 ml of the acid must be required for the end 
point. (Congo paper: filter paper treated with 0.1 percent aqueous 
solution of Congo red and dried.)
    (b) Distillation range. One hundred ml of the denaturant are 
distilled in the following manner: The sample is placed in a short-
necked glass flask of about 200 ml capacity which is rested on an 
asbestos plate having a circular opening of 30 mm in diameter. The neck 
of this flask is fitted with a fractionating tube 12 mm in diameter and 
170 mm long and having a bulb just 1 cm below the side tube which is 
connected with a Liebig condenser having a water jacket not less than 
400 mm in length. A standardized thermometer is placed in the 
fractionating tube so that the mercury bulb is suspended in the center 
of the fractionating bulb. Heat is applied slowly and in such manner 
that 5 ml of distillate is collected per minute in a graduated cylinder. 
At least 50 ml must distill at or below 140 [deg]C. and at least 90 ml 
below 160 [deg]C.
    (c) Reactions. Dissolve 1 ml of pyridine bases in 100 ml of water.
    (1) Ten ml of this solution are treated with 5 ml of 5 percent 
aqueous solution of anhydrous fused CaCl2 and the mixture 
vigorously shaken. An abundant crystalline separation should occur 
within 10 minutes.
    (2) Ten ml of the pyridine solution mixed with 50 ml of Nessler's 
reagent must give a white precipitate.
    (d) Water content. Twenty ml of pyridine bases are shaken with 20 ml 
of a caustic soda solution having a specific gravity of 1.40 (15.56 
[deg]/15.56 [deg]C.) and the

[[Page 554]]

mixture allowed to stand until completely separated into two layers. The 
amount of pyridine base layer should be 18.5 ml, minimum.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.123  Pyronate.

    Pyronate is a product of the destructive distillation of hardwood 
meeting the following requirements:
    (a) Acidity (as acetic acid). Not more than 0.1 percent by weight, 
determined as follows:
    Add 5.0 ml sample to 100 ml distilled water in an Erlenmeyer flask 
and titrate with 0.1 N NaOH to a bromthymol blue endpoint.
    (b) Color. The color shall be no darker than the color produced by 
2.0 grams of potassium dichromate in 1 liter of water. The comparision 
shall be made in 4-ounce oil sample bottles viewed crosswise.
    (c) Distillation range. When 100 ml are distilled not more than 5 ml 
shall distill below 70 [deg]C., not less than 50 ml below 160 [deg]C., 
and not less than 90 ml below 205 [deg]C.
    Note. Any material submitted as pyronate must agree in color, odor, 
taste and denaturing value with a standard sample furnished by the 
Alcohol and Tobacco Tax and Trade Bureau to chemists authorized to 
examine samples of denaturants.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.124  Quassin.

    (a) Quassin is the bitter principle of quassia wood (occurring as a 
mixture of two isomeric forms). It shall be a good commercial grade of 
purified amorphous quassin, standardized as to bitterness.
    (b) Bitterness. An aqueous solution of quassin shall be distinctly 
bitter at a 1 to 250,000 dilution. To test: Dissolve 0.1 gram of quassin 
in 100 ml of 95 percent alcohol, then dilute 4 ml of the solution to 
1,000 ml with distilled water, mix well and taste.
    (c) Identification test. Dissolve about 0.5 gram of quassin in 10 ml 
of 95 percent alcohol and filter. To 5 ml of the filtrate, add 5 ml of 
concentrated hydrochloric acid and 1 mg of phloroglucinol and mix well. 
A red color develops.
    (d) Optical assay. When 1 gram of quassin (in solution in a small 
amount of 95 percent alcohol) is dissolved in 10,000 ml of water, the 
absorbance of the solution in a 1 cm cell at a wavelength of 258 
millimicrons shall not be less than 0.400.
    (e) Solubility. When 0.5 gram of quassin is added to 25 ml of 190 
proof alcohol, it shall dissolve completely.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.125  Rubber hydrocarbon solvent.

    (a) Rubber hydrocarbon solvent is a petroleum derivative.
    (b) Distillation range. When 10 percent of the sample has been 
distilled into a graduated receiver, the themometer shall not read more 
than 170 [deg]F. nor less than 90 [deg]F. When 90 percent has been 
recovered in the receiver the thermometer shall not read more than 250 
[deg]F.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.126  Safrole.

    (a) Congealing point. 10.0[deg] to 11.2 [deg]C.
    (b) Refractive index at 20 [deg]C. 1.5363 to 1.5385.
    (c) Specific gravity at 15 [deg]/15 [deg]C. 1.100 to 1.107.
    (d) Odor. Characteristic odor.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.127  Shellac (refined).

    (a) Arsenic content. Not more than 1.4 parts per million as 
determined by the Gutzeit Method (AOAC method 25.020; for incorporation 
by reference, see Sec.  21.6(c)).
    (b) Color. White or orange.
    (c) Rosin content. None when tested by the following method: Add 20 
ml of absolute alcohol or glacial acetic acid (m. p. 13[deg] to 15 
[deg]C.) to 2 grams of the shellac and thoroughly dissolve. Add 100 ml 
of petroleum ether and mix thoroughly. Add approximately 2 liters of 
water and separate a portion of the ether layer (at least 50 ml) and 
filter if

[[Page 555]]

cloudy. Evaporate the petroleum ether and test as follows: Solution A--5 
ml of phenol dissolved in 10 ml of carbon tetrachloride. Solution B--1 
ml of bromine dissolved in 4 ml of carbon tetrachloride. To the residue 
obtained above add 2 ml of Solution A and transfer the mixture to a 
porcelain spot plate, filling one cavity. Immediately fill an adjacent 
cavity with solution B. Cover the plate with a watch glass and observe 
any color formation in Solution A. A decided purple or deep indigo blue 
color is an indication of the presence of rosin.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.128  Sodium (metallic).

    (a) Color. Silvery-white (metallic luster) when freshly cut.
    (b) Identification test. Clean a platinum wire by dipping it in 
concentrated hydrochloric acid and holding it over a Bunsen burner until 
the flame is no longer colored. Moisten the wire loop with hydrochloric 
acid and dip it into the sample. Hold the wire in the Bunsen flame and 
note the color. Sodium produces a golden yellow flame; not observed when 
viewed through a cobalt glass.
    (c) Purity. Technical grade or better.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.129  Spearmint oil, terpeneless.

    (a) Carvone content. Not less than 85 percent by weight.
    (b) Refractive index at 20 [deg]C. 1.4930 to 1.4980.
    (c) Specific gravity at 25 [deg]/25 [deg]C. 0.949 to 0.956.
    (d) Odor. Characteristic odor.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.130  Spike lavender oil, natural.

    (a) Alcohol content (as borneol). Not less than 30 percent by 
weight.
    (b) Esters (as bornyl acetate). Not less than 1.5 percent by weight.
    (c) Refractive index at 20 [deg]C. 1.4630 to 1.4680.
    (d) Specific gravity at 25 [deg]/25 [deg]C. 0.893 to 0.909.
    (e) Odor. Characteristic odor.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.131  Sucrose octaacetate.

    (a) Sucrose octaacetate is an organic acetylation product occurring 
as a white or cream-colored powder having an intensely bitter taste.
    (b) Free acid (as acetic acid). Maximum percentage 0.15 by weight 
when determined by the following procedure: Dissolve 1.0 gram of sample 
in 50 ml of neutralized ethyl alcohol (or S.D.A. No. 3-A, No. 3-C, or 
No. 30) and titrate with 0.1 N sodium hydroxide using phenolphthalein 
indicator.

Percent acid as acetic acid=ml NaOH usedx0.6/ weight of sample

    (c) Insoluble matter. 0.30 percent by weight maximum.
    (d) Melting point. Not less than 78.0 [deg]C.
    (e) Purity. Sucrose octaacetate 98 percent minimum by weight when 
determined by the following procedure: Transfer a weighed 1.50 grams 
sample to a 500 ml Erlenmeyer flask containing 100 ml of neutral ethyl 
alcohol (or S.D.A. No. 3-A, No. 3-C, or No. 30) and exactly 50.0 ml of 
0.5 N sodium hydroxide. Reflux for 1 hour on a steam bath, cool and 
titrate the excess sodium hydroxide with 0.5 N sulfuric acid using 
phenolphthalein indicator.

Percent sucrose octaacetate=(ml NaOH-ml 
H2SO4)x4.2412/weight of sample

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.132  Toluene.

    (a) Distillation range. (For applicable ASTM method, see 1980 Annual 
Book of ASTM Standards, Part 29, page 569, Standard No. D 362-75 for 
industrial grade toluene; for incorporation by reference, see Sec.  
21.6(b).) When 100 ml of toluene are distilled by this method, not more 
than 1 ml should distill below 109 [deg]C., and not less than 99 ml 
below 112 [deg]C.
    (b) Boiling point. 110.6 [deg]1 [deg]C.
    (c) Odor. Characteristic odor.

[[Page 556]]

    (d) Specific gravity at 15.56 [deg]/15.56 [deg]C. 0.869 to 0.873.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



Sec.  21.133  Vinegar.

    (a) Vinegar, 90-grain:
    Acidity (as acetic acid). 9.0 percent by weight, minimum.
    (b) Vinegar, 60-grain:
    Acidity (as acetic acid). 6.0 percent by weight, minimum.

[T.D. ATF-133, 48 FR 24673, June 2, 1983. Redesignated by T.D. ATF-442, 
66 FR 12854, Mar. 1, 2001]



 Subpart F_Uses of Specially Denatured Alcohol and Specially Denatured 
                                   Rum



Sec.  21.141  List of products and processes using specially denatured alcohol and rum, and formulas authorized therefor.

    This section lists, alphabetically by product or process, formulas 
of specially denatured alcohol authorized for use in those products or 
processes, and lists the code numbers assigned thereto. Specially 
denatured rum, as well as specially denatured alcohol, may be used in 
tobacco sprays and flavors, Code No. 460, under Formula No. 4.

                 Uses of Specially Denatured Alcohol \1\
------------------------------------------------------------------------
                                    Code
        Product or process           No.        Formulas authorized
------------------------------------------------------------------------
Acetaldehyde.....................     551  1, 2-B, 29.
Acetic acid......................     512  29, 35-A.
Adhesives and binders............     036  1, 3-A, 3-C, 12-A, 23-A, 30.
Aldehydes, miscellaneous.........     552  1, 2-B, 29.
Alkaloids (processing)...........     344  1, 2-B, 2-C, 3-A, 3-C, 12-A,
                                            13-A, 17, 23-A, 30, 32, 35-
                                            A.
Animal feed supplements..........     910  35-A.
Antibiotics (processing).........     343  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            23-A, 30, 32, 35-A.
Antifreeze, proprietary..........     760  1.
Antiseptic, bathing solution          220  46.
 (restricted).
Antiseptic solutions, U.S.P. or       244  23-A, 37, 38-B, 38-F.
 N.F.
Bath preparations................     142  1, 3-A, 3-B, 3-C, 23-A, 30,
                                            36, 38-B, 39-B, 39-C, 40, 40-
                                            A, 40-B, 40-C.
Bay rum..........................     112  23-A, 37, 38-B, 39, 39-B, 39-
                                            D, 40, 40-A, 40-B, 40-C.
Biocides, miscellaneous..........     410  1, 3-A, 3-B, 3-C, 23-A, 23-H,
                                            27-A, 27-B, 30, 37, 38-B, 39-
                                            B, 40, 40-A, 40-B, 40-C.
Blood and blood products              345  1, 3-A, 3-C, 12-A, 13-A, 23-
 (processing).                              A, 30.
Brake fluids.....................     720  1, 3-A, 3-C.
Candy glazes.....................     015  13-A, 23-A, 35, 35-A, 45.
Cellulose coatings...............     011  1, 3-A, 3-C, 23-A, 30.
Cellulose compounds (dehydration)     311  1, 2-B, 3-A, 3-C, 32.
Cellulose intermediates..........     034  1, 3-A, 3-C, 13-A, 19, 23-A,
                                            32.
Chemicals (miscellaneous)........     579  1, 2-B, 2-C, 3-A, 3-C, 6-B,
                                            12-A, 13-A, 17, 20, 29, 30,
                                            32, 36.
Cleaning solutions...............     450  1, 3-A, 3-C, 23-A, 23-H, 30,
                                            36, 39-B, 40, 40-A, 40-B, 40-
                                            C.
Coatings, miscellaneous..........     016  1, 3-A, 3-C, 23-A.
Collodions, industrial...........     034  1, 3-A, 3-C, 13-A, 19, 23-A,
                                            32.
Collodion, U.S.P.................     241  13-A, 19, 32.
Colognes.........................     122  38-B, 39, 39-A, 39-B, 39-C,
                                            40, 40-A, 40-B, 40-C.
Crude drugs (processing).........     341  1, 2-B, 3-A, 3-C, 23-A, 30.
Cutting oils.....................     730  1, 3-A, 3-C.
Dehydration products,                 315  1, 2-B, 3-A, 3-C.
 miscellaneous.
Dentifrices......................     131  31-A, 37, 38-B, 38-C, 38-D.
Deodorants (body)................     114  23-A, 38-B, 39-B, 39-C, 40,
                                            40-A, 40-B, 40-C.
Detergents, household............     450  1, 3-A, 3-C, 23-A, 23-H, 30,
                                            36, 39-B, 40, 40-A, 40-B, 40-
                                            C.
Detergents, industrial...........     440  1, 3-A, 3-C, 23-A, 30.
Detonators.......................     574  1, 6-B.
Disinfectants....................     410  1, 3-A, 3-B, 3-C, 23-A, 23-H,
                                            27-A, 27-B, 30, 37, 38-B, 39-
                                            B, 40, 40-A, 40-B, 40-C.
Drugs and medicinal chemicals....     575  1, 2-B, 2-C, 3-A, 3-C, 6-B,
                                            12-A, 13-A, 17, 29, 30, 32.
Drugs, miscellaneous (processing)     349  1, 2-B, 3-A, 3-C, 13-A, 23-A,
                                            30, 35-A, 38-B.
Duplicating fluids...............     485  1, 3-A, 3-C, 30.
Dyes and intermediates...........     540  1, 2-B, 2-C, 3-A, 3-C, 12-A,
                                            29, 36.
Dyes and intermediates                351  1, 2-B, 3-A, 3-C, 12-A.
 (processing).
Dye solutions, miscellaneous.....     482  1, 3-A, 3-C, 23-A, 30.
Embalming fluids, etc............     420  1, 3-A, 3-C, 22, 23-A.
Esters, ethyl (miscellaneous)....     523  1, 2-B, 2-C, 6-B, 12-A, 13-A,
                                            29, 32, 35-A.
Ether, ethyl.....................     561  1, 2-B, 13-A, 29, 32.
Ethers, miscellaneous............     562  1, 2-B, 13-A, 29, 32.
Ethyl acetate....................     521  1, 2-B, 29, 35-A.
Ethylamines......................     530  1, 2-B, 2-C, 3-A, 3-C, 12-A,
                                            29, 36.
Ethyl chloride...................     522  1, 2-B, 29, 32.
Ethylene dibromide...............     571  1, 2-B, 29, 32.
Ethylene gas.....................     572  1, 2-B, 29, 32.
Explosives.......................     033  1, 2-B, 3-A, 3-C.

[[Page 557]]

 
External pharmaceuticals, not         210  23-A, 23-F, 23-H, 27, 27-A,
 U.S.P. or N.F.                             27-B, 33, 36, 37, 38-B, 38-
                                            F, 39-B, 40, 40-A, 40-B, 40-
                                            C.
External pharmaceuticals,             249  23-A, 25, 25-A, 33, 38-B, 40-
 miscellaneous, U.S.P. or N.F.              B.
Fluid uses, miscellaneous........     750  1, 3-A, 3-C, 23-A, 30.
Food products, miscellaneous          332  1, 2-B, 3-A, 3-C, 13-A, 23-A,
 (processing).                              30, 32, 35-A.
Fuel uses, miscellaneous.........     630  1, 3-A, 3-C, 28-A.
Fuels, airplane and supplementary     612  1, 3-A, 3-C, 28-A.
Fuels, automobile and                 611  1, 3-A, 3-C, 28-A.
 supplementary.
Fuels, proprietary heating.......     620  1, 3-A, 3-C, 28-A.
Fuels, rocket and jet............     613  1, 3-A, 3-C, 28-A.
Fungicides.......................     410  1, 3-A, 3-B, 3-C, 23-A, 23-H,
                                            27-A, 27-B, 30, 37, 38-B, 39-
                                            B, 40, 40-A, 40-B, 40-C.
Glandular products (processing)..     342  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            23-A, 30, 32, 35-A.
Hair and scalp preparations......     111  3-B, 23-A, 23-F, 23-H, 37, 38-
                                            B, 39, 39-A, 39-B, 39-C, 39-
                                            D, 40, 40-A, 40-B, 40-C.
Hormones (processing)............     342  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            23-A, 30, 32, 35-A.
Incense..........................     470  3-A, 3-C, 22, 37, 38-B, 39-B,
                                            39-C, 40, 40-A, 40-B, 40-C.
Inks.............................     052  1, 3-A, 3-C, 13-A, 23-A, 30,
                                            32, 33.
Insecticides.....................     410  1, 3-A, 3-B, 3-C, 23-A, 23-H,
                                            27-A, 27-B, 30, 37, 38-B, 39-
                                            B, 40, 40-A, 40-B, 40-C.
Iodine solutions (including           230  25, 25-A.
 U.S.P. and N.F. tinctures).
Laboratory reagents (for sale)...     811  3-A, 3-C, 30.
Laboratory uses, general (own use     810  3-A, 3-C, 30.
 only).
Lacquer thinners.................     042  1, 23-A.
Liniments, U.S.P. or N.F.........     243  27, 27-B, 38-B.
Lotions and creams (body, face,       113  23-A, 23-H, 31-A, 37, 38-B,
 and hand).                                 39, 39-B, 39-C, 40, 40-A, 40-
                                            B, 40-C.
Medicinal chemicals (processing).     344  1, 2-B, 2-C, 3-A, 3-C, 12-A,
                                            13-A, 17, 23-A, 30, 32, 35-
                                            A.
Miscellaneous chemicals               358  1, 2-B, 2-C, 3-A, 3-C, 12-A,
 (processing).                              13-A, 17, 23-A, 30, 35-A.
Miscellaneous products                359  1, 2-B, 2-C, 3-A, 3-C, 12-A,
 (processing).                              13-A, 17, 23-A, 30, 35-A.
Mouth washes.....................     132  37, 38-B, 38-C, 38-D, 38-F.
Organo-silicone products.........     576  2-B, 3-A, 3-C, 30.
Pectin (processing)..............     331  1, 2-B, 3-A, 3-C, 13-A, 23-A,
                                            30, 35-A.
Perfume materials (processing)...     352  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            30.
Perfumes and perfume tinctures...     121  38-B, 39, 39-B, 39-C, 40, 40-
                                            A, 40-B, 40-C.
Petroleum products...............     320  1, 2-B, 3-A, 3-C.
Photoengraving dyes and solutions     481  1, 3-A, 3-C, 13-A, 30, 32.
Photographic chemicals                353  1, 2-B, 3-A, 3-C, 13-A, 30.
 (processing).
Photographic film and emulsions..     031  1, 2-B, 3-A, 3-C, 13-A, 19,
                                            30, 32.
Pill and tablet manufacture......     349  1, 2-B, 3-A, 3-C, 13-A, 23-A,
                                            30, 35-A, 38-B.
Plastics, cellulose..............     021  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            30.
Plastics, non-cellulose               022  1, 2-B, 3-A, 3-C, 12-A, 13-A,
 (including resins).                        30.
Polishes.........................     051  1, 3-A, 3-C, 30.
Preserving solutions.............     430  1, 3-A, 3-C, 12-A, 13-A, 22,
                                            23-A, 30, 32, 37, 38-B, 42,
                                            44.
Product development and pilot         812  All formulas.
 plant (own use only).
Proprietary solvents.............     041  1, 3-A.
Refrigerating uses...............     740  1, 3-A, 3-C, 23-A, 30.
Resin coatings, natural..........     014  1, 23-A.
Resin coatings, synthetic........     012  1, 3-A, 3-C, 23-A, 30.
Resins, synthetic................     590  3-A, 3-C, 29, 30, 35-A.
Room deodorants..................     470  3-A, 3-C, 22, 37, 38-B, 39-B,
                                            39-C, 40, 40-A, 40-B, 40-C.
Rosin (processing)...............     354  1, 3-A, 3-C, 12-A.
Rotogravure dyes and solutions...     481  1, 3-A, 3-C, 13-A, 30, 32.
Rubber (latex) (processing)......     355  1, 3-A, 3-C.
Rubber, synthetic................     580  29, 32.
Rubbing alcohol..................     220  23-H.
Scientific instruments...........     710  1, 3-A, 3-C.
Shampoos.........................     141  1, 3-A, 3-B, 3-C, 23-A, 27-B,
                                            31-A, 36, 38-B, 39-A, 39-B,
                                            40, 40-A, 40-B, 40-C.
Shellac coatings.................     013  1, 23-A.
Soaps, industrial................     440  1, 3-A, 3-C, 23-A, 30.
Soaps, toilet....................     142  1, 3-A, 3-C, 23-A, 30, 36, 38-
                                            B, 39-B, 39-C, 40, 40-A, 40-
                                            B, 40-C.
Sodium ethylate, anhydrous            524  2-B.
 (restricted).
Sodium hydrosulfite (dehydration)     312  1, 2-B, 3-A, 3-C.
Soldering flux...................     035  1, 3-A, 3-C, 23-A, 30.
Solutions, miscellaneous.........     485  1, 3-A, 3-C, 23-A, 30, 40-C.
Solvents and thinners (other than     042  1, 23-A, 30.
 proprietary solvents or special
 industrial solvents).
Solvents, special (restricted         043  1, 3-A, 3-C.
 sale).
Stains (wood)....................     053  1, 3-A, 3-C, 23-A, 30.
Sterilizing solutions............     430  1, 3-A, 3-C, 12-A, 13-A, 22,
                                            23-A, 30, 32, 37, 38-B, 42,
                                            44.

[[Page 558]]

 
Theater sprays...................     470  3-A, 3-C, 22, 37, 38-B, 39-B,
                                            39-C, 40, 40-A, 40-B, 40-C.
Tobacco sprays and flavors.......     460  4.
Toilet waters....................     122  38-B, 39, 39-A, 39-B, 39-C,
                                            40, 40-A, 40-B, 40-C.
Transparent sheetings............     032  1, 2-B, 3-A, 3-C, 13-A, 23-A.
Unclassified uses \2\............     900  1, 3-A, 3-C.
Vaccine (processing).............     343  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            23-A, 30, 32, 35-A.
Vinegar..........................     511  18, 29, 35-A.
Vitamins (processing)............     342  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            23-A, 30, 32, 35-A.
Xanthates........................     573  1, 2-B, 29.
Yeast (processing)...............     342  1, 2-B, 3-A, 3-C, 12-A, 13-A,
                                            23-A, 30, 32, 35-A.
------------------------------------------------------------------------
\1\ Other products or processes may be authorized under Sec.   21.31(c).
\2\ Persons desiring other formulas for this use should indicate the
  fact in the space provided for this purpose on TTB Form 5150.19.


[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-199, 50 
FR 9183, Mar. 6, 1985; T.D. ATF-435, 66 FR 5475, Jan. 19, 2001; T.D. 
ATF-442, 66 FR 11854, Mar. 1, 2001]



         Subpart G_Denaturants Authorized for Denatured Spirits



Sec.  21.151  List of denaturants authorized for denatured spirits.

    Following is an alphabetical listing of denaturants authorized for 
use in denatured spirits:

    Denaturants Authorized for Completely Denatured Alcohol (C.D.A),
    Specially Denatured Alcohol (S.D.A.), and Specially Denatured Rum
                                (S.D.R.)
Acetaldehyde.........................  S.D.A. 29.
Acetone, U.S.P.......................  S.D.A. 23-A, 23-H.
Acetaldol............................  C.D.A. 18.
Almond oil, bitter, N.F.X............  S.D.A. 38-B.
Alpha Terpineol......................  S.D.A. 38-B.
Ammonia, aqueous.....................  S.D.A. 36.
Ammonia solution, strong, N.F........  S.D.A. 36.
Anethole, N.F........................  S.D.A. 38-B.
Anise oil, N.F.......................  S.D.A. 38-B.
Bay oil (myrcia oil), N.F.XI.........  S.D.A. 23-F, 38-B, 39-D.
Benzaldehyde, N.F....................  S.D.A. 38-B.
Benzene..............................  S.D.A. 2-B, 2-C, 12-A.
Bergamot oil, N.F.XI.................  S.D.A. 23-F. 38-B.
Bone oil (Dipple's oil)..............  S.D.A. 17.
Boric acid, N.F......................  S.D.A. 38-F.
Brucine alkaloid.....................  S.D.A. 40.
Brucine sulfate, N.F.IX..............  S.D.A. 40.
n-Butyl alcohol......................  S.D.A. 44.
tert-Butyl alcohol...................  S.D.A. 39, 39-A, 39-B, 40, 40-A,
                                        40-B, 40-C.
Camphor, U.S.P.......................  S.D.A. 27, 27-A, 38-B.
Caustic soda, liquid.................  S.D.A. 36.
Cedar leaf oil, U.S.P.XIII...........  S.D.A. 38-B.
Chloroform...........................  S.D.A. 20.
Chlorothymol, N.F.XII................  S.D.A. 38-B, 38-F.
Cinchonidine.........................  S.D.A. 39-A.
Cinchonidine sulfate, N.F.IX.........  S.D.A. 39-A.
Cinnamic aldehyde (cinnamaldehyde),    S.D.A. 38-B.
 N.F.IX.
Cinnamon oil, N.F....................  S.D.A. 38-B.
Citronella oil, natural..............  S.D.A. 38-B.
Clove oil, N.F.......................  S.D.A. 27-A, 38-B.
Coal tar, U.S.P......................  S.D.A. 38-B.
Denatonium benzoate, N.F.............  S.D.A. 1, 40-B.
Diethyl phthalate....................  S.D.A. 39-B, 39-C.
Ethyl acetate........................  S.D.A. 29, 35, 35-A.
Ethyl ether..........................  S.D.A. 13-A, 19, 32.
Eucalyptol, N.F.XII..................  S.D.A. 37, 38-B.
Eucalyptus oil, N.F..................  S.D.A. 38-B.
Eugenol, U.S.P.......................  S.D.A. 38-B.
Formaldehyde solution, U.S.P.........  S.D.A. 22, 38-C, 38-D.
Gasoline.............................  C.D.A. 18, 19; S.D.A. 28-A.
Gasoline, unleaded...................  C.D.A. 18, 19, 20; S.D.A 28-A.
Gentian violet.......................  S.D.A. 33.
Gentian violet, U.S.P................  S.D.A. 33.
Glycerin (Glycerol), U.S.P...........  S.D.A. 31-A.
Green soap, U.S.P....................  S.D.A. 27-B.
Guaiacol, N.F.X......................  S.D.A. 38-B.
Heptane..............................  C.D.A. 18, 19; S.D.A. 2-B, 28-A.
Hydrochloric acid, N.F...............  S.D.A. 38-F.
Iodine, U.S.P........................  S.D.A. 25, 25-A.
Isopropyl alcohol....................  S.D.A. 3-C.
Kerosene.............................  C.D.A. 18, 19, 20.
Kerosene (deodorized)................  C.D.A. 18, 19, 20.
Lavender oil, N.F....................  S.D.A. 27-B, 38-B.
Menthol, U.S.P.......................  S.D.A. 37, 38-B, 38-C, 38-D, 38-
                                        F.
Mercuric iodide, red, N.F.XI.........  S.D.A. 42.
Methyl alcohol.......................  S.D.A. 1, 3-A, 30.
Methylene blue, U.S.P................  S.D.A. 4; S.D.R. 4.
Methyl isobutyl ketone...............  C.D.A. 18, 19; S.D.A. 1, 23-H.
Methyl n-butyl ketone................  C.D.A. 18, 19; S.D.A. 1.
Methyl salicylate, N.F...............  S.D.A. 38-B, 46.
Mustard oil, volatile (allyl           S.D.A. 38-B.
 isothiocyanate), U.S.P.XII.
Nicotine solution....................  S.D.A. 4; S.D.R. 4.
Nitropropane, mixed isomers of.......  C.D.A. 18, 19; S.D.A. 1.
Peppermint oil, N.F..................  S.D.A. 38-B.
Phenol, U.S.P........................  S.D.A. 38-B, 46.
Phenyl mercuric benzoate.............  S.D.A. 42.
Phenyl mercuric chloride, N.F.IX.....  S.D.A. 42.
Phenyl mercuric nitrate, N.F.........  S.D.A. 42.
Phenyl salicylate (salol), N.F.XI....  S.D.A. 38-B.
Pine needle oil, dwarf, N.F..........  S.D.A. 38-B.
Pine oil, N.F........................  S.D.A. 38-B.
Pine tar, U.S.P......................  S.D.A. 3-B.
Polysorbate 80, N.F..................  S.D.A. 38-F.
Potassium iodide, U.S.P..............  S.D.A. 25, 25-A, 42.
Pyridine bases.......................  S.D.A. 6-B.
Pyronate.............................  C.D.A. 18.
Quassia, fluid extract, N.F.VII......  S.D.A. 39.
Quassin..............................  S.D.A. 40.
Quinine, N.F.X.......................  S.D.A. 39-A.
Quinine bisulfate, N.F.XI............  S.D.A. 39-A, 39-D.

[[Page 559]]

 
Quinine dihydrochloride, N.F.XI......  S.D.A. 39-A.
Quinine sulfate, U.S.P...............  S.D.A. 39-D.
Resorcinol (Resorcin), U.S.P.........  S.D.A. 23-F.
Rosemary oil, N.F. XII...............  S.D.A. 27, 38-B.
Rubber hydrocarbon solvent...........  C.D.A. 18, 19, 20; S.D.A. 2-B, 2-
                                        C, 28-A.
Safrole..............................  S.D.A. 38-B.
Salicylic acid, U.S.P................  S.D.A. 23-F, 39.
Sassafras oil, N.F.XI................  S.D.A. 38-B.
Shellac (refined)....................  S.D.A. 45.
Soap, hard, N.F.XI...................  S.D.A. 31-A.
Sodium iodide, U.S.P.................  S.D.A. 25, 25-A.
Sodium, metallic.....................  S.D.A. 2-C.
Sodium salicylate, U.S.P.............  S.D.A. 39, 39-D.
Spearmint oil, N.F...................  S.D.A. 38-B.
Spearmint oil, terpeneless...........  S.D.A. 38-B.
Spike lavender oil, natural..........  S.D.A. 38-B.
Storax, U.S.P........................  S.D.A. 38-B.
Sucrose octaacetate..................  S.D.A. 40-A.
Thimerosal, U.S.P....................  S.D.A. 42.
Thyme oil, N.F.XII...................  S.D.A. 38-B.
Thymol, N.F..........................  S.D.A. 37, 38-B, 38-F.
Tolu balsam, U.S.P...................  S.D.A. 38-B.
Toluene..............................  S.D.A. 2-B, 2-C, 12-A.
Turpentine oil, N.F.XI...............  S.D.A. 38-B.
Vinegar..............................  S.D.A. 18.
Zinc chloride, U.S.P.................  S.D.A. 38-F.
 


[T.D. ATF-133, 48 FR 24673, June 2, 1983, as amended by T.D. ATF-442, 66 
FR 12854, Mar. 1, 2001]



 Subpart H_Weights and Specific Gravities of Specially Denatured Alcohol



Sec.  21.161  Weights and specific gravities of specially denatured alcohol.

    The weight of one gallon of each formula of specially denatured 
alcohol at 15.56 [deg]C. (60 [deg]F.) is as listed in this section. The 
specific gravity of each formula of specially denatured alcohol at 15.56 
[deg]C./15.56 [deg]C. (60 [deg]F./60 [deg]F.) in air is as listed in 
this section. (Weight of 1 gallon of water at 15.56 [deg]C. (60 [deg]F.) 
is 8.32823 pounds in air.)

                        Weights and Specific Gravities of Specially Denatured Alcohol \1\
 [Slight deviations from this table may occur due to variations in specific gravities of authorized denaturants.
      Values for 190 proof determined experimentally in air. Other values calculated from these gravities.]
----------------------------------------------------------------------------------------------------------------
                                                 190 proof               192 proof               200 proof
                               Finished  -----------------------------------------------------------------------
     S.D.A. Formula No.         formula    Wt./gal.                Wt./gal.                Wt./gal.
                                (gals)      in air    Sp. gr. in    in air    Sp. gr. in    in air    Sp. gr. in
                                             (lbs)        air        (lbs)        air        (lbs)        air
----------------------------------------------------------------------------------------------------------------
1...........................      104.0        6.788      0.8151       6.756      0.8112      6.611       0.7938
2-B.........................      100.5        6.795       .8159       6.762       .8119      6.612        .7939
2-C.........................       99.5   ..........  ..........  ..........  ..........      6.959        .8356
3-A.........................      105.0        6.787       .8149       6.755       .8111      6.611        .7938
3-B.........................      101.0        6.810       .8177       6.777       .8137      6.627        .7957
3-C.........................      105.0        6.784       .8146       6.752       .8107      6.608        .7935
4...........................      100.8        6.823       .8193       6.791       .8154      6.640        .7973
6-B.........................      100.5        6.801       .8166       6.768       .8127      6.618        .7947
12-A........................      105.0        6.820       .8189       6.789       .8152      6.645        .7979
13-A........................      109.7        6.740       .8093       6.710       .8057      6.572        .7891
17..........................      100.05       6.795       .8159       6.762       .8119      6.611        .7938
18..........................      195.4        7.802       .9368       7.785       .9348      7.708        .9255
19..........................      197.9        6.468       .7766       6.452       .7747      6.375        .7655
20..........................      104.9        7.062       .8480       7.030       .8441      6.886        .8268
22..........................      109.5        7.037       .8450       7.007       .8414      6.868        .8247
23-A........................      107.9        6.788       .8151       6.758       .8115      6.619        .7948
23-F........................      101.5        6.808       .8175       6.776       .8136      6.627        .7957
23-H........................      109.45       6.785       .8147       6.755       .8111      6.617        .7945
25..........................      100.9        7.080       .8501       7.047       .8462      6.897        .8282
25 \2\......................      100.9        7.083       .8505       7.050       .8465      6.900        .8285
25-A........................      102.5        7.119       .8548       7.087       .8510      6.939        .8332
25-A \2\....................      102.5        7.117       .8546       7.085       .8507      6.938        .8331
27..........................      104.7        6.846       .8220       6.814       .8182      6.670        .8009
27-A........................      105.2        6.867       .8245       6.835       .8207      6.692        .8035
27-B........................      112.0        7.027       .8438       6.998       .8403      6.862        .8239
28-A........................      101.0        6.786       .8148       6.753       .8109      6.603        .7929
29..........................      100.76       6.808       .8175       6.775       .8135      6.624        .7954
30..........................      110.0        6.785       .8147       6.755       .8111      6.617        .7945
31-A........................      111.5        7.167       .8606       7.138       .8571      7.002        .8408
32..........................      104.8        6.769       .8128       6.737       .8089      6.593        .7916
33..........................      102.9        6.893       .8277       6.861       .8238      6.714        .8062
35 \3\......................      135.0        6.956       .8352       6.933       .8325      6.820        .8189
35 \4\......................      129.75       6.963       .8361       6.937       .8330      6.820        .8189
35-A \3\....................      105.0        6.817       .8185       6.785       .8147      6.641        .7974

[[Page 560]]

 
35-A \4\....................      104.25       6.826       .8196       6.794       .8158      6.649        .7984
36..........................      102.7        6.837       .8209       6.804       .8170      6.657        .7993
37..........................      100.9        6.794       .8158       6.762       .8119      6.612        .7939
38-B........................      101.3        6.804       .8170       6.772       .8131      6.622        .7951
38-C........................      102.6        6.832       .8203       6.800       .8165      6.652        .7987
38-D........................      102.7        6.863       .8241       6.830       .8201      6.682        .8023
38-F........................      100.9        6.828       .8199       6.796       .8160      6.646        .7980
39..........................      102.0        6.867       .8245       6.834       .8206      6.686        .8028
39-A........................      100.5        6.810       .8177       6.777       .8137      6.627        .7957
39-B........................      102.7        6.857       .8233       6.825       .8195      6.677        .8017
39-C........................      101.0        6.819       .8188       6.792       .8155      6.642        .7975
39-D........................      101.3        6.819       .8188       6.787       .8149      6.637        .7969
40..........................      100.1        6.795       .8159       6.762       .8119      6.611        .7938
40-A........................      100.2        6.798       .8163       6.765       .8123      6.613        .7941
40-B........................      100.1        6.794       .8158       6.761       .8118      6.610        .7937
40-C........................      103.0        6.788       .8151       6.756       .8112      6.609        .7936
42..........................      100.0        6.797       .8161       6.764       .8122      6.613        .7941
44..........................      110.0        6.790       .8153       6.760       .8117      6.622        .7951
45..........................      129.8        7.545       .9060       7.520       .9030      7.403        .8889
46..........................      100.1        6.805       .8171       6.772       .8131      6.621        .7950
----------------------------------------------------------------------------------------------------------------
\1\ Where alternate denaturants are permitted, the above weights are based on the first denaturant or
  combination listed in the formula.
\2\ With sodium iodide.
\3\ Calculated on the basis of 85 percent ethyl acetate.
\4\ Calculated on the basis of 100 percent ethyl acetate.



PART 22_DISTRIBUTION AND USE OF TAX-FREE ALCOHOL--Table of Contents




                             Subpart A_Scope

Sec.
22.1 General.
22.2 Territorial extent.
22.3 Related regulations.

                          Subpart B_Definitions

22.11 Meaning of terms.

                   Subpart C_Administrative Provisions

                               Authorities

22.20 Delegations of the Administrator.
22.21 Forms prescribed.
22.22 Alternate methods or procedures; and emergency variations from 
          requirements.
22.23 Allowance of claims.
22.24 Permits.
22.25 Right of entry and examination.
22.26 Detention of containers.

                            Liability for Tax

22.31 Persons liable for tax.

                     Destruction of Marks and Brands

22.33 Time of destruction of marks and brands.

                          Document Requirements

22.35 Execution under penalties of perjury.
22.36 Filing of qualifying documents.

                 Subpart Ca_Special (Occupational) Taxes

22.37 Liability for special tax.
22.38 Special tax returns.
22.38a Employer identification number.

                           Special Tax Stamps

22.39 Issuance, distribution, and examination of special tax stamps.
22.40 Changes in special tax stamps.

                         Subpart D_Qualification

                  Application for Permit, Form 5150.22

22.41 Application for industrial alcohol user permit.
22.42 Data for application, Form 5150.22.
22.43 Exceptions to application requirements.
22.44 Disapproval of application.
22.45 Organizational documents.

               Industrial Alcohol User Permit, Form 5150.9

22.48 Conditions of permits.
22.49 Duration of permits.
22.50 Correction of permits.
22.51 Suspension or revocation of permits.
22.52 Rules of practice in permit proceedings.

[[Page 561]]

22.53 Powers of attorney.
22.54 Photocopying of permits.
22.55 Posting of permits.

                  Changes After Original Qualification

22.57 Changes affecting applications and permits.
22.58 Automatic termination of permits.
22.59 Adoption of documents by a fiduciary.
22.60 Continuing partnerships.
22.61 Change in name of permittee.
22.62 Change in trade name.
22.63 Change in location.
22.64 Return of permits.

                           Registry of Stills

22.66 Registry of stills.

           Permanent Discontinuance of Use of Tax-Free Alcohol

22.68 Notice of permanent discontinuance.

Subpart E [Reserved]

                    Subpart F_Premises and Equipment

22.91 Premises.
22.92 Storage facilities.
22.93 Equipment for recovery and restoration of tax-free alcohol.

                    Subpart G_Use of Tax-Free Alcohol

22.101 Authorized uses.
22.102 Prohibited uses.
22.103 States and the District of Columbia.
22.104 Educational organizations, colleges of learning, and scientific 
          universities.
22.105 Hospitals, blood banks, and sanitariums.
22.106 Clinics.
22.107 Pathological laboratories.
22.108 Other laboratories.

          Subpart H_Withdrawal and Receipt of Tax-Free Alcohol

22.111 Withdrawals under permit.
22.112 Regulation of withdrawals.
22.113 Receipt of tax-free alcohol.
22.114 Alcohol received from the General Services Administration.

                            Subpart I_Losses

22.121 Liability and responsibility of carriers.
22.122 Losses in transit.
22.123 Losses on premises.
22.124 Incomplete shipments.
22.125 Claims.

                 Subpart J_Recovery of Tax-Free Alcohol

22.131 General.
22.132 Deposit in storage tanks.
22.133 Shipment for redistillation.
22.134 Records of shipment.

                          Subpart K_Destruction

22.141 General.
22.142 Destruction.

Subpart L_Return, Reconsignment and Disposition of Tax-Free or Recovered 
                                 Alcohol

22.151 Return.
22.152 Reconsignment in transit.
22.153 Disposition after revocation of permit.
22.154 Disposition on permanent discontinuance of use.
22.155 Emergency disposition to another permittee.

                    Subpart M_Records of Transactions

22.161 Records.
22.162 Inventories.
22.163 Time for making entries.
22.164 Filing and retention of records.
22.165 Photographic copies of records.

  Subpart N_Use of Tax-Free Spirits by the United States or Government 
                                 Agency

22.171 General.
22.172 Application and permit, Form 5150.33.
22.173 Procurement of tax-free spirits.
22.174 Receipt of shipment.
22.175 Discontinuance of use.
22.176 Disposition of excess spirits.

    Authority: 26 U.S.C. 5001, 5121, 5142, 5143, 5146, 5206, 5214, 5271-
5276, 5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806, 7011, 7805; 
31 U.S.C. 9304, 9306.

    Source: T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 22 appear by T.D. ATF-
435, 66 FR 5476, Jan. 19, 2001 and T.D. ATF-463 and T.D. ATF-462, 66 FR 
42733, 42736, Aug. 15, 2001.



                             Subpart A_Scope



Sec.  22.1  General.

    The regulations in this part relate to tax-free alcohol and cover 
the procurement, storage, use, and recovery of tax-free alcohol.



Sec.  22.2  Territorial extent.

    This part applies to the several States of the United States and the 
District of Columbia.

[[Page 562]]



Sec.  22.3  Related regulations.

    Regulations related to this part are listed below:

27 CFR Part 19--Distilled Spirits Plants.
27 CFR Part 26--Liquors and Articles from Puerto Rico and the Virgin 
Islands.
27 CFR Part 27--Importation of Distilled Spirits, Wines and Beer.
27 CFR Part 29--Stills and Miscellaneous Regulations.
27 CFR Part 30--Gauging Manual.
27 CFR Part 71--Rules of Practice in Permit Proceedings.
31 CFR Part 225--Acceptance of Bonds, Notes, or Other Obligations Issued 
or Guaranteed by the United States as Security in Lieu of Surety or 
Sureties on Penal Bonds.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-207, 50 
FR 23682, June 5, 1985; T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. 
ATF-479, 67 FR 30798, May 8, 2002]



                          Subpart B_Definitions



Sec.  22.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, the 
following terms have the meanings given in this section. Words in the 
plural form include the singular, and vice versa, and words importing 
the masculine gender include the feminine. The terms ``includes'' and 
``including'' do not exclude things not enumerated which are in the same 
general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Alcohol. Spirits having a proof of 190[deg] or more when withdrawn 
from bond, including all subsequent dilutions and mixtures thereof, from 
whatever source or by whatever process produced.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.22, Delegation of the Administrator's Authorities in 27 CFR Part 
22, Distribution and Use of Tax-Free Alcohol.
    CFR. The Code of Federal Regulations.
    Clinic. When used in this part the term includes veterinary clinics.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the claim, form, or other document or, where no form of 
declaration is prescribed, with the declaration ``I declare under the 
penalities of perjury that this ---------- (insert type of document, 
such as statement, report, certificate, application, claim, or other 
document), including the documents submitted in support thereof, has 
been examined by me and, to the best of my knowledge and belief, is 
true, correct, and complete.''
    Fiduciary. A guardian, trustee, executor, administrator, receiver, 
conservator, or any person acting in any fiduciary capacity for any 
person.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    Hospital. When used in this part the term includes veterinary 
hospitals.
    Initial order. The first order of tax-free alcohol placed by a 
permittee or Governmental agency with a distilled spirits plant or 
vendor, and, the first order placed following the issuance of an amended 
or corrected permit.
    Liter or litre. A metric unit of capacity equal to 1,000 cubic 
centimeters of alcohol, and equivalent to 33.814 fluid ounces. A liter 
is divided into 1,000 milliliters (ml). The symbol for milliliter or 
milliliters is ``ml''.
    Permit. The document issued under 26 U.S.C. 5271(a), authorizing a 
person to withdraw tax-free alcohol from the premises of a distilled 
spirits plant and use such alcohol under specified conditions.
    Permittee. Any person holding a permit, on Form 5150.9, issued under 
this part to withdraw and use tax-free alcohol.
    Person. An individual, trust, estate, partnership, association, 
company, or corporation.
    Proof. The ethyl alcohol content of a liquid at 60[deg] Fahrenheit, 
stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A gallon at 60[deg] Fahrenheit which contains 50 
percent of volume of ethyl alcohol having a specific gravity of 0.7939 
at 60[deg] Fahrenheit referred to water at 60[deg] Fahrenheit as unity, 
or the alcoholic equivalent thereof.

[[Page 563]]

    Restoration. Restoring to the original state of recovered tax-free 
alcohol, including redistillation of the recovered alcohol to 190[deg] 
or more of proof and the removal of foreign materials by redistillation, 
filtration, or other suitable means.
    Secretary. The Secretary of the Treasury or his delegate.
    Spirits or distilled spirits. The substance known as ethyl alcohol, 
ethanol, or spirits of wine, having a proof of 190[deg] or more when 
withdrawn from bond, including all subsequent dilutions and mixtures 
thereof, from whatever source or by whatever process produced.
    This chapter. Title 27, Code of Federal Regulations, Chapter I (27 
CFR Chapter I).
    U.S.C. The United States Code.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5475, Jan. 19, 2001; T.D. TTB-44, 71 FR 16937, Apr. 4, 2006]



                   Subpart C_Administrative Provisions

                               Authorities



Sec.  22.20  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.22, Delegation of the Administrator's 
Authorities in 27 CFR Part 22, Distribution and Use of Tax-Free Alcohol. 
You may obtain a copy of this order by accessing the TTB Web site 
(http://www.ttb.gov) or by mailing a request to the Alcohol and Tobacco 
Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 
1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16937, Apr. 4, 2006]



Sec.  22.21  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part, including applications, notices, claims, reports, 
and records. All of the information called for in each form shall be 
furnished as indicated by the headings on the form and the instructions 
on or pertaining to the form. In addition, information called for in 
each form shall be furnished as required by this part. The form will be 
filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-249, 52 
FR 5961, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-
435, 66 FR 5476, Jan. 19, 2001; T.D. ATF-443, 66 FR 13015, Mar. 2, 2001; 
T.D. TTB-44, 71 FR 16937, Apr. 4, 2006]



Sec.  22.22  Alternate methods or procedures; and emergency variations from requirements.

    (a) Alternate methods or procedures--(1) Application. A permittee, 
after receiving approval from the appropriate TTB officer, may use an 
alternate method or procedure (including alternate construction or 
equipment) in lieu of a method or procedure prescribed by this part. A 
permittee wishing to use an alternate method or procedure may apply to 
the appropriate TTB officer. The permittee shall describe the proposed 
alternate method or procedure and shall set forth the reasons for its 
use.
    (2) Approval by appropriate TTB officer. The appropriate TTB officer 
may approve the use of an alternate method or procedure if:
    (i) The applicant shows good cause for its use;
    (ii) It is consistent with the purpose and effect of the procedure 
prescribed by this part, and provides equal security to the revenue;
    (iii) It is not contrary to law; and
    (iv) It will not cause an increase in cost to the Government and 
will not hinder the effective administration of this part.
    (3) Exceptions. The appropriate TTB officer will not authorize an 
alternate method or procedure relating to the giving of a bond.
    (4) Conditions of approval. A permittee may not employ an alternate 
method or procedure until the appropriate TTB

[[Page 564]]

officer has approved its use. The permittee shall, during the terms of 
the authorization of an alternate method or procedure, comply with the 
terms of the approved application.
    (b) Emergency variations from requirements--(1) Application. When an 
emergency exists, a permittee may apply to the appropriate TTB officer 
for a variation from the requirements of this part relating to 
construction, equipment, and methods of operation. The permittee shall 
describe the proposed variation and set forth the reasons for using it.
    (2) Approval by appropriate TTB officer. The appropriate TTB officer 
may approve an emergency variation from requirements if:
    (i) An emergency exists;
    (ii) The variation from the requirements is necessary;
    (iii) It will afford the same security and protection to the revenue 
as intended by the specific regulations;
    (iv) It will not hinder the effective administration of this part; 
and
    (v) It is not contrary to law.
    (3) Conditions of approval. A permittee may not employ an emergency 
variation from the requirements until the appropriate TTB officer has 
approved its use. Approval of variations from requirements are 
conditioned upon compliance with the conditions and limitations set 
forth in the approval.
    (4) Automatic termination of approval. If the permittee fails to 
comply in good faith with the procedures, conditions or limitations set 
forth in the approval, authority for the variation from requirements is 
automatically terminated and the permittee is required to comply with 
prescribed requirements of regulations from which those variations were 
authorized.
    (c) Withdrawal of approval. The appropriate TTB officer may withdraw 
approval for an alternate method or procedure or an emergency variation 
from requirements, approved under paragraph (a) or (b) of this section, 
if the appropriate TTB officer finds that the revenue is jeopardized or 
the effective administration of this part is hindered by the approval.

(Approved by the Office of Management and Budget under control number 
1512-0335)

(Act of August 16, 1954, Chapter 736, 68A Stat. 917 (26 U.S.C. 7805); 
sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5476, Jan. 19, 2001]



Sec.  22.23  Allowance of claims.

    The appropriate TTB officer is authorized to allow claims for losses 
of tax-free alcohol.



Sec.  22.24  Permits.

    (a) The appropriate TTB officer shall issue permits on Form 5150.33 
covering the withdrawal of tax-free alcohol by the United States or a 
Governmental agency as provided in Sec.  22.172.
    (b) The appropriate TTB officer shall issue the permit to withdraw 
and use tax-free alcohol, Form 5150.9 required under this part.



Sec.  22.25  Right of entry and examination.

    An appropriate TTB officer may enter, during business hours or at 
any time operations are being conducted, any premises on which 
operations governed by this part are conducted to inspect the records 
required by this part to be kept on those premises. An appropriate TTB 
officer may also inspect and take samples of tax-free alcohol to which 
those records relate.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985. Redesignated by T.D. ATF-443, 
66 FR 13015, Mar. 2, 2001]



Sec.  22.26  Detention of containers.

    (a) Summary detention. An appropriate TTB officer may detain any 
container containing, or supposed to contain, alcohol when the 
appropriate TTB officer believes the alcohol was withdrawn, sold, 
transported, or used in violation of law of this part. The appropriate 
TTB officer shall hold the container at a safe place until it is 
determined if the detained property is liable by law to forfeiture.

[[Page 565]]

    (b) Limitations. Summary detention may not exceed 72 hours without 
process of law or intervention of the appropriate TTB officer. The 
person possessing the container immediately before its detention may 
prepare a waiver of the 72 hours limitation to have the container kept 
on its premises during detention.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5311))

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985. Redesignated by T.D. ATF-443, 
66 FR 13015, Mar. 2, 2001]

                            Liability for Tax



Sec.  22.31  Persons liable for tax.

    All tax-free alcohol removed, sold, transported, or used in 
violation of law or regulations in this part, is subject to all 
provisions of law relating to taxable alcohol, including the requirement 
for payment of tax on the alcohol. The person removing, selling, 
transporting, or using tax-free alcohol in violation of law or 
regulations pertaining to tax-free alcohol shall be required to pay the 
distilled spirits tax on the alcohol.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001))

                     Destruction of Marks and Brands



Sec.  22.33  Time of destruction of marks and brands.

    (a) Any person who empties a package containing tax-free alcohol 
shall immediately destroy or obliterate the marks, brand, and labels 
required by this chapter to be placed on packages of tax-free alcohol.
    (b) A person may not destroy or obliterate the marks, brands or 
labels until the package or drum has been emptied.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5206))

                          Document Requirements



Sec.  22.35  Execution under penalties of perjury.

    (a) When any form or document prescribed by this part is required to 
be executed under penalties of perjury, the permittee or other 
authorized person shall:
    (1) Insert the declaration ``I declare under the penalties of 
perjury that I have examined this ----------(insert the type of document 
such as claim, application, statement, report, certificate), including 
all supporting documents, and to the best of my knowledge and belief, it 
is true, correct, and complete''; and
    (2) Sign the document.
    (b) When the required document already bears a perjury declaration, 
the permittee or other authorized person shall sign the document.

(Act of August 16, 1954, 68A Stat. 745 (26 U.S.C. 6056))



Sec.  22.36  Filing of qualifying documents.

    All documents returned to a permittee or other person as evidence of 
compliance with requirements of this part, or as authorization, shall 
except as otherwise provided, be kept readily available for inspection 
by an appropriate TTB officer during business hours.



                 Subpart Ca_Special (Occupational) Taxes

    Source: T.D. ATF-271, 53 FR 17545, May 17, 1988, unless otherwise 
noted.



Sec.  22.37  Liability for special tax.

    (a) Tax-free alcohol permittee. Except as otherwise provided in this 
section, every person who is required to hold a permit under 26 U.S.C. 
5271 to procure, use, sell, and/or recover alcohol free of tax for 
nonbeverage purposes shall pay a special (occupational) tax at the rate 
of $250 per year. A separate tax shall be paid for each tax-free alcohol 
permit which the permittee holds, and permits issued under this part 
shall not be valid unless special tax is paid. The tax shall be paid on 
or before the date of commencing the business of a tax-free alcohol 
permittee, and thereafter every year on or before July 1. On commencing 
business, the tax shall be computed from the first day of the month in 
which liability is incurred, through the following June 30. Thereafter, 
the tax shall be computed for the entire year (July 1 through June 30).

[[Page 566]]

    (b) Transition rule. For purposes of paragraph (a) of this section, 
a permittee engaged in nonbeverage tax-free distilled spirits operations 
on January 1, 1988, shall be treated as having commenced business on 
that date. The special tax imposed by this transition rule shall cover 
the period January 1, 1988, through June 30, 1988, and shall be paid on 
or before April 1, 1988.
    (c) Each place of business taxable. Special (occupational) tax 
liability is incurred at each place of business for which a permit under 
subpart D of this part to procure, use, and/or recover distilled spirits 
free of tax has been issued. A place of business means the entire 
office, plant or area of the business in any one location under the same 
proprietorship. Passageways, streets, highways, rail crossings, 
waterways, or partitions dividing the premises are not sufficient 
separation to require additional special tax, if the divisions of the 
premises are otherwise contiguous.
    (d) Exception for United States. Agencies and instrumentalities of 
the United States are not required to pay special tax under this 
subpart.
    (e) Exception for certain educational institutions. (1) On and after 
July 1, 1989, a scientific university, college of learning, or 
institution of scientific research as specified in Sec.  22.104, which 
holds a permit to procure and use distilled spirits free of tax under 
this part, is not required to pay special tax under this subpart if--
    (i) The university, college, or institution procures less than 25 
gallons of tax free spirits per calendar year; and
    (ii) Such spirits are procured for use exclusively for experimental 
or research use and not for consumption (other than organoleptic tests) 
or sale.
    (2) A scientific university, college of learning, or institution of 
scientific research, which holds a permit under this part, and which 
does not operate as described in paragraphs (e)(1) (i) and (ii) of this 
section during any calendar year, shall pay special tax as provided in 
paragraph (a) of this section for the special tax year (July 1 through 
June 30) commencing during that calendar year.

(26 U.S.C. 5143, 5276)

[T.D. ATF-271, 53 FR 17545, May 17, 1988, as amended by T.D. ATF-285, 53 
FR 12610, Mar. 28, 1989; T.D. ATF-337, 58 FR 19061, Apr. 12, 1993]



Sec.  22.38  Special tax returns.

    (a) General. Special tax shall be paid by return. The prescribed 
return is TTB Form 5630.5, Special Tax Registration and Return. Special 
tax returns, with payment of tax, shall be filed with TTB in accordance 
with instructions on the form.
    (b) Preparation of TTB Form 5630.5. All of the information called 
for on Form 5630.5 shall be provided, including:
    (1) The true name of the taxpayer.
    (2) The trade name(s) (if any) of the business(es) subject to 
special tax.
    (3) The employer identification number (see Sec.  22.38a).
    (4) The exact location of the place of business, by name and number 
of building or street, of if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown shall be the taxpayer's 
principal place of business (or principal office, in the case of a 
corporate taxpayer).
    (5) The class(es) of special tax to which the taxpayer is subject.
    (6) Ownership and control information: That is, the name, position, 
and residence address of every owner of the business and of every person 
having power to control its management and policies with respect to the 
activity subject to special tax. ``Owner of the business'' shall include 
every partner, if the taxpayer is a partnership, and every person owning 
10% or more of its stock, if the taxpayer is a corporation. However, the 
ownership and control information required by this paragraph need not be 
stated if the same information has been previously provided to TTB in 
connection with a permit application, and if the information previously 
provided is still current.
    (c) Multiple locations and/or classes of tax. A taxpayer subject to 
special tax for the same period at more than one location or for more 
than one class of tax shall--

[[Page 567]]

    (1) File one special tax return, TTB Form 5630.5, with payment of 
tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on TTB Form 5630.5), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid. The original of the list shall be filed with 
TTB in accordance with instructions on the return, and the copy shall be 
retained at the taxpayer's principal place of business (or principal 
office, in the case of corporate taxpayer) for the period specified on 
Sec.  22.164.
    (d) Signing of TTB Forms 5630.5--(1) Ordinary returns. The return of 
an individual proprietor shall be signed by the individual. The return 
of a partnership shall be signed by a general partner. The return of a 
corporation shall be signed by any officer. In each case, the person 
signing the return shall designate his or her capacity as ``individual 
owner,'' ``member of firm,'' or, in the case of a corporation, the title 
of the officer.
    (2) Fiduciaries. Receivers, trustees, assignees, executors, 
administrators, and other legal representatives who continue the 
business of a bankrupt, insolvent, deceased person, etc., shall indicate 
the fiduciary capacity in which they act.
    (3) Agent or attorney in fact. If a return is signed by an agent or 
attorney in fact, the signature shall be preceded by the name of the 
principal and followed by the title of the agent or attorney in fact. A 
return signed by a person as agent will not be accepted unless there is 
filed, with the TTB office with which the return is required to be 
filed, a power of attorney authorizing the agent to perform the act.
    (4) Perjury statement. TTB Forms 5630.5 shall contain or be verified 
by a written declaration that the return has been executed under the 
penalties of perjury.

(26 U.S.C. 5142, 6061, 6065, 6151, 7100)



Sec.  22.38a  Employer identification number.

    (a) Requirement. The employer identification number (defined in 26 
CFR 301.7701-12) of the taxpayer who has been assigned such a number 
shall be shown on each special tax return, including amended returns, 
filed under this subpart. Failure of the taxpayer to include the 
employer identification number may result in the imposition of the 
penalty specified in Sec.  70.105 of this chapter.
    (b) Application for employer identification number. Each taxpayer 
who files a special tax return, who has not already been assigned an 
employer identification number, shall file IRS Form SS-4 to apply for 
one. The taxpayer shall apply for and be assigned only one employer 
identification number, regardless of the number of places of business 
for which the taxpayer is required to file a special tax return. The 
employer identification number shall be applied for no later than 7 days 
after the filing of the taxpayer's first special tax return. IRS Form 
SS-4 may be obtained from the director of an IRS service center or from 
any IRS district director.
    (c) Preparation and filing of IRS Form SS-4. The taxpayer shall 
prepare and file IRS Form SS-4, together with any supplementary 
statement, in accordance with the instructions on the form or issued in 
respect to it.

(26 U.S.C. 6109)

                           Special Tax Stamps



Sec.  22.39  Issuance, distribution, and examination of special tax stamps.

    (a) Issuance of special tax stamps. Upon filing a properly executed 
return on TTB Form 5630.5 together with the full remittance, the 
taxpayer will be issued an appropriately designated special tax stamp. 
If the return covers multiple locations, the taxpayer will be issued one 
appropriately designated stamp for each location listed on the 
attachment required by Sec.  22.38(c), but showing, as to name and 
address, only the name of the taxpayer and the address of the taxpayer's 
principal place of business (or principal office in the case of a 
corporate taxpayer).

[[Page 568]]

    (b) Distribution of special tax stamps for multiple locations. On 
receipt of the special tax stamps, the taxpayer shall verify that there 
is one stamp for each location listed on the attachment to TTB Form 
5630.5. The taxpayer shall designate one stamp for each location and 
type on each stamp the address of the business conducted at the location 
for which that stamp is designated. The taxpayer shall then forward each 
stamp to the place of business designated on the stamp.
    (c) Examination of special tax stamps. All stamps denoting payment 
of special tax shall be kept available for inspection by appropriate TTB 
officers, at the location for which designated, during business hours.

(26 U.S.C. 5143, 5146, 6806)



Sec.  22.40  Changes in special tax stamps.

    (a) Change in name. If there is a change in the corporate or firm 
name, or in the trade name, as shown on TTB Form 5630.5, the permittee 
shall file an amended special tax return, as soon as practicable after 
the change, covering the new corporate or firm name, or trade names. No 
new special tax is required to be paid. The permittee shall attach the 
special tax stamp for endorsement of the change in name.
    (b) Change in proprietorship--(1) General. If there is a change in 
the proprietorship of a tax-free alcohol operation, the successor shall 
pay a new special tax and obtain the required special tax stamps.
    (2) Exemption for certain successors. Persons having the right of 
succession provided for in paragraph (c) of this section may carry on 
the business for the remainder of the period for which the special tax 
was paid, without paying a new special tax, if within 30 days after the 
date on which the successor begins to carry on the business, the 
successor files a special tax return on TTB Form 5630.5 with TTB, which 
shows the basis of succession. A person who is a successor to a business 
for which special tax has been paid and who fails to register the 
succession is liable for special tax computed from the first day of the 
calendar month in which he or she began to carry on the business.
    (c) Persons having right of succession. Under the conditions 
indicated in paragraph (b)(2) of this section, the right of succession 
will pass to certain persons in the following cases:
    (1) Death. The widowed spouse or child, or executor, administrator, 
or other legal representative of the taxpayer;
    (2) Succession of spouse. A husband or wife succeeding to the 
business of his or her spouse (living);
    (3) Insolvency. A receiver or trustee in bankruptcy, or an assignee 
for benefit of creditors;
    (4) Withdrawal from firm. The partner or partners remaining after 
death or withdrawal of a member.
    (d) Change in location. If there is a change in location of a 
taxable place of business, the permittee shall, within 30 days after the 
change, file with TTB an amended special tax return covering the new 
location. The permittee shall attach the special tax stamp or stamps, 
for endorsement of the change in location. No new special tax is 
required to be paid. However, if the permittee does not file the amended 
return within 30 days, he or she is required to pay a new special tax 
and obtain a new special tax stamp.

(26 U.S.C. 5143, 7011)



                         Subpart D_Qualification

                  Application for Permit, Form 5150.22



Sec.  22.41  Application for industrial alcohol user permit.

    (a) Users. Each person desiring to withdraw and use tax-free alcohol 
shall, before commencing business, file an application on Form 5150.22 
for, and obtain a permit, Form 5150.9, except permittees who were 
previously qualified to withdraw and use tax-free alcohol on the 
effective date of this regulation.
    (b) Filing. All applications and necessary supporting documents, as 
required by this subpart, shall be filed with the appropriate TTB 
officer. All data, written statements, affidavits, and other documents 
submitted in support of the application are considered a part of the 
application.
    (1) Applications filed as provided in this section, shall be 
accompanied by

[[Page 569]]

evidence establishing the authority of the officer or other person to 
execute the application.
    (2) A State, political subdivision thereof, or the District of 
Columbia, may specify in the application that it desires a single permit 
authorizing the withdrawal and use of tax-free alcohol in a number of 
institutions under its control. In this instance, the application, Form 
5150.22, or an attachment, shall clearly show the method of distributing 
and accounting for the tax-free alcohol to be withdrawn.



Sec.  22.42  Data for application, Form 5150.22.

    (a) Unless waived under Sec.  22.43, each application on Form 
5150.22 shall include as applicable, the following information:
    (1) Serial number and purpose for which filed.
    (2) Name and principal business address.
    (3) Based on the bona fide requirements of the applicant, the 
estimated quantity of tax-free alcohol in proof gallons, which will be 
procured during a 12-month period (one calendar year).
    (4) Location, or locations where tax-free alcohol is to be used, if 
different from the business address.
    (5) Statement showing the specific manner in which, or purposes for 
which, tax-free alcohol will be withdrawn and used.
    (6) Statement that tax-free alcohol will be stored in accordance 
with the requirements of this part.
    (7) Statement as to the type of business organization and of the 
persons interested in the business, supported by the items of 
information listed in Sec.  22.45.
    (8) Listing of the principal equipment for the recovery and 
restoration of alcohol (including the serial number, kind, capacity, 
name and address of manufacturer, and name and address of owner if 
different from applicant).
    (9) List of any trade name(s) under which the applicant will conduct 
operations, and the offices where these names are registered.
    (10) Listing of the titles of offices, the incumbents of which are 
responsible for the tax-free alcohol activities of the business and are 
authorized by the articles of incorporation, the bylaws, or the board of 
directors to act and sign on behalf of the applicant.
    (11) Other information and statements as the appropriate TTB officer 
may require to establish that the applicant is entitled to the permit. 
In the case of a corporation or other legal entity the appropriate TTB 
officer may require information which establishes that the officers, 
directors and principal stockholders whose names are required to be 
furnished under Sec.  22.45 (a)(2) and (c) have not violated or 
conspired to violate any law of the United States relating to 
intoxicating liquor or have been convicted of any offense under Title 
26, U.S.C., punishable as a felony or of any conspiracy to commit such 
offense.
    (b) If any of the information required by paragraphs (a)(4) through 
(a)(10) of this section is on file with any appropriate TTB officer, the 
applicant may incorporate this information by reference by stating that 
the information is made a part of the application.



Sec.  22.43  Exceptions to application requirements.

    (a) The appropriate TTB officer may waive detailed application and 
supporting data requirements, other than the requirements of paragraphs 
(a)(1) through (a)(6) of Sec.  22.42, and of paragraph (a)(8) of that 
section as it relates to recovery, in the case of--
    (1) All applications, Form 5150.22 filed by States or political 
subdivisions thereof or the District of Columbia, and
    (2) Applications, Form 5150.22, filed by applicants, where the 
appropriate TTB officer has determined that the waiver of such 
requirements does not pose any jeopardy to the revenue or a hindrance of 
the effective administration of this part.
    (b) The waiver provided for in this section will terminate for a 
permittee, other than States or political subdivisions thereof or the 
District of Columbia, when the permittee files an application to amend 
the permit and the appropriate TTB officer determines that the 
conditions justifying the waiver no longer exist. In this case, the 
permittee will furnish the information in respect

[[Page 570]]

to the previously waived items, as provided in Sec.  22.57(a)(2).

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 
FR 13015, Mar. 2, 2001]



Sec.  22.44  Disapproval of application.

    The appropriate TTB officer may, in accordance with part 71 of this 
chapter, disapprove an application for a permit to withdraw and use tax-
free alcohol, if on examination of the application (or inquiry), the 
appropriate TTB officer has reason to believe that:
    (a) The applicant is not authorized by law and regulations to 
withdraw and use alcohol free of tax;
    (b) The applicant (including, in the case of a corporation, any 
officer, director, or principal stockholder, and, in the case of a 
partnership, a partner) is, by reason of their business experience, 
financial standing, or trade connections, not likely to maintain 
operations in compliance with 26 U.S.C. Chapter 51, or regulations 
issued under this part;
    (c) The applicant has failed to disclose any material information 
required, or has made any false statement as to any material fact, in 
connection with their application; or
    (d) The premises at which the applicant proposes to conduct the 
business are not adequate to protect the revenue.



Sec.  22.45  Organizational documents.

    The supporting information required by Sec.  22.42(a)(7) includes, 
as applicable:
    (a) Corporate documents. (1) Certified true copy of the certificate 
of incorporation, or certified true copy of certificate authorizing the 
corporation to operate in the State where the premises are located (if 
other than that in which incorporated).
    (2) Certified list of names and addresses of officers and directors, 
along with a statement designating which corporate officers, if 
applicable, are directly responsible for the tax-free alcohol activities 
of the business.
    (3) Statement showing the number of shares of each class of stock or 
other evidence of ownership, authorized and outstanding, the par value 
thereof, and the voting rights of the respective owners or holders.
    (b) Articles of partnership. True copy of the articles of 
partnership or association, if any, or certificate of partnership or 
association where required to be filed by any State, county, or 
municipality.
    (c) Statement of interest. (1) Names and addresses of persons owning 
10% or more of each of the classes of stock in the corporation, or legal 
entity, and the nature and amount of the stockholding or other interest 
of each, whether such interest appears in the name of the interested 
party or in the name of another for him or her. If a corporation is 
wholly owned or controlled by another corporation, persons owning 10% or 
more of each of the classes of stock of the parent corporation are 
considered to be the persons interested in the business of the 
subsidiary, and the names and addresses of such persons must be 
submitted to the appropriate TTB officer if specifically requested.
    (2) In the case of an individual owner or partnership, name and 
address of every person interested in the business, whether such 
interest appears in the name of the interested party or in the name of 
another for the interested person.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5476, Jan. 19, 2001]

               Industrial Alcohol User Permit, Form 5150.9



Sec.  22.48  Conditions of permits.

    Permits to withdraw and use tax-free alcohol will designate the acts 
which are permitted, and include any limitations imposed on the 
performance of these acts. All of the provisions of this part relating 
to the use or recovery of tax-free alcohol are considered to be included 
in the provisions and conditions of the permit, the same as if set out 
in the permit.



Sec.  22.49  Duration of permits.

    Permits to withdraw and use tax-free alcohol are continuing unless 
automatically terminated by the terms

[[Page 571]]

thereof, suspended or revoked as provided in Sec.  22.51, or voluntarily 
surrendered. The provisions of Sec.  22.58 are considered part of the 
terms and conditions of all permits.



Sec.  22.50  Correction of permits.

    If an error on a permit is discovered, the permittee shall 
immediately return the permit to the appropriate TTB officer for 
correction.



Sec.  22.51  Suspension or revocation of permits.

    The appropriate TTB officer may institute proceedings under part 71 
of this chapter to suspend or revoke a permit whenever there is reason 
to believe that the permittee--
    (a) Has not in good faith complied with the provisions of 26 U.S.C. 
Chapter 51, or regulations issued under that chapter;
    (b) Has violated the conditions of that permit;
    (c) Has made any false statements as to any material fact in the 
application for the permit;
    (d) Has failed to disclose any material information required to be 
furnished;
    (e) Has violated or conspired to violate any law of the United 
States relating to intoxicating liquor or has been convicted of an 
offense under Title 26, U.S.C., punishable as a felony or of any 
conspiracy to commit such offense;
    (f) Is, by reason of its operations, no longer warranted in 
procuring and using tax-free alcohol authorized by the permit; or
    (g) Has not engaged in any of the operations authorized by the 
permit for a period exceeding two years.



Sec.  22.52  Rules of practice in permit proceedings.

    The regulations of part 71 of this chapter apply to the procedure 
and practice in connection with the disapproval of any application for a 
permit and in connection with suspension or revocation of a permit.



Sec.  22.53  Powers of attorney.

    An applicant or permittee shall execute and file a Form 1534, in 
accordance with the instructions on the form, for each person authorized 
to sign or to act in its behalf. Form 1534 is not required for persons 
whose authority is furnished in accordance with Sec.  22.42(a)(10).



Sec.  22.54  Photocopying of permits.

    A permittee may make photocopies of its permit exclusively for the 
purpose of furnishing proof of authorization to withdraw tax-free 
alcohol from a distilled spirits plant.



Sec.  22.55  Posting of permits.

    Permits issued under this part will be kept posted and available for 
inspection on the permit premises.

                  Changes After Original Qualification



Sec.  22.57  Changes affecting applications and permits.

    (a) General--(1) Changes affecting application. When there is a 
change relating to any of the information contained in, or considered a 
part of the application on Form 5150.22 for a permit, the permittee 
shall, within 30 days (except as otherwise provided in this subpart) 
file a written notice with the appropriate TTB officer to amend the 
application.
    (2) Changes affecting waivers. When any waiver under Sec.  22.43 is 
terminated by a change to the application, the permittee shall include 
the current information as to the item previously waived with the 
written notice required in paragraph (a)(1) of this section.
    (3) Changes affecting permit. When the terms of a permit are 
affected by a change, the written notice required by paragraph (a)(1) of 
this section (except as otherwise provided in this subpart) will serve 
as an application to amend the permit.
    (4) Form of notice. All written notices to amend an application on 
Form 5150.22 will--
    (i) Identify the permittee;
    (ii) Contain the permit identification number;
    (iii) Explain the nature of the change and contain any required 
supporting documents;
    (iv) Identify the serial number of the applicable application, Form 
5150.22; and

[[Page 572]]

    (v) Be consecutively numbered and signed by the permittee or any 
person authorized to sign on behalf of the permittee.
    (b) Amended application. The appropriate TTB officer may require a 
permittee to file an amended application on Form 5150.22 when the number 
of changes to the previous application are determined to be excessive, 
or when a permittee has not timely filed the written notice prescribed 
in paragraph (a)(1) of this section. If items on the amended application 
remain unchanged, they will be marked ``No change since Form 5150.22, 
Serial No. ----------.''
    (c) Changes in officers, directors and stockholders--(1) Officers. 
In the case of a change in the officers listed under the provisions of 
Sec.  22.45(a)(2), the notice required by paragraph (a)(1) of this 
section shall only apply (unless otherwise required, in writing, by the 
appropriate TTB officer) to those offices, the incumbents of which are 
responsible for the operations covered by the permit.
    (2) Directors. In the case of a change in the directors listed under 
the provisions of Sec.  22.45(a)(2), the notice required by paragraph 
(a)(1) of this section shall reflect the changes.
    (3) Stockholders. In lieu of reporting all changes, within 30 days, 
to the list of stockholders furnished under the provisions of Sec.  
22.45(c)(1), a permittee may, upon filing written notice to the 
appropriate TTB officer and establishing a reporting date, file an 
annual notice of changes. The notice of changes in stockholders does not 
apply if the sale or transfer of capital stock results in a change in 
ownership or control which is required to be reported under Sec.  22.58.

(Approved by the Office of Management and Budget under control number 
1512-0335)

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  22.58  Automatic termination of permits.

    (a) Permit not transferable. Permits issued under this part are not 
transferable. In the event of the lease, sale, or other transfer of such 
a permit, or of the operations authorized by the permit, the permit 
shall, except as provided for in this section, automatically terminate.
    (b) Corporations. (1) If actual or legal control of any corporation 
holding a permit issued under this part changes, directly or indirectly, 
whether by reason of a change in stock ownership or control (in the 
permittee corporation or any other corporation), by operation of law, or 
in any other manner, the permittee shall within 10 days of the change, 
give written notice to the appropriate TTB officer. The written notice 
shall be accompanied by (or within 30 days of the change) an application 
and supporting documents on Form 5150.22 for a new permit. If an 
application on Form 5150.22 for a new permit is not filed within 30 days 
of the change, the outstanding permit will automatically terminate.
    (2) If an application on Form 5150.22 for a new permit is filed 
within the 30-day period prescribed in paragraph (b)(1) of this section, 
the outstanding permit will remain in effect until final action is taken 
on the application. When final action is taken, the outstanding permit 
will automatically terminate and the permittee shall forward it to the 
appropriate TTB officer for cancellation.
    (c) Proprietorships. In the event of a change in proprietorship of a 
business of a permittee (as for instance, by reason of incorporation, 
the withdrawal or taking in of additional partners, or succession by any 
person who is not a fiduciary), the successor shall file written notice 
and make application on Form 5150.22 for a new permit under the same 
conditions provided for in paragraph (b) of this section.

(Approved by the Office of Management and Budget under control number 
1512-0335)



Sec.  22.59  Adoption of documents by a fiduciary.

    If the business covered by a permit issued under this part, is to be 
operated by a fiduciary, the fiduciary may, in lieu of qualifying as a 
new proprietor, file a written notice, and any necessary supporting 
documents, to amend the predecessor's permit. The effective date of the 
qualifying documents filed by a fiduciary shall coincide with the 
effective date of the court order or the date specified therein for the 
fiduciary

[[Page 573]]

to assume control. If the fiduciary was not appointed by the court, the 
date the fiduciary assumed control shall coincide with the effective 
date of the filing of the qualifying documents.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 
FR 13015, Mar. 2, 2001]



Sec.  22.60  Continuing partnerships.

    (a) Continuing partnerships. If, under the laws of a particular 
State, a partnership is not terminated on death or insolvency of a 
partner, but continues until final settlement of the partnership affairs 
is completed, and the surviving partner has the exclusive right to the 
control and possession of the partnership assets for the purpose of 
liquidation and settlement, the surviving partner may continue to 
withdraw and use tax-free alcohol under the prior qualifications of the 
partnership.
    (b) Requalification. If a surviving partner acquires the business on 
completion of the settlement of the partnership, that partner shall 
qualify as a new proprietor, from the date of acquisition, under the 
same conditions and limitations prescribed in Sec.  22.58(b).
    (c) More than one partner. The rule set forth in this section also 
applies if there is more than one surviving partner.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 
FR 13015, Mar. 2, 2001]



Sec.  22.61  Change in name of permittee.

    When the only change is a change in the individual, firm, or 
corporation name, a permittee may not conduct operations under the new 
name until a written notice, accompanied by necessary supporting 
documents, to amend the application and permit has been filed and an 
amended permit has been issued by the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0335)

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  22.62  Change in trade name.

    Where there is to be a change in, or addition of, a trade name, the 
permittee may not conduct operations under the new trade name until a 
written notice has been filed and an amended permit has been issued by 
the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0335)

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 
FR 13015, Mar. 2, 2001]



Sec.  22.63  Change in location.

    When there is to be a change in location, a permittee may not 
conduct operations at the new location until a written notice, 
accompanied by necessary supporting information, to amend the 
application and permit has been filed and an amended permit has been 
issued by the appropriate TTB officer.

(Approved by the Office of Management and Budget under control number 
1512-0335)

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-435, 66 
FR 5476, Jan. 19, 2001; T.D. ATF-443, 66 FR 13015, Mar. 2, 2001]



Sec.  22.64  Return of permits.

    Following the termination, surrender or revocation of a permit, or 
the issuance of a new or amended permit, caused by a change, the 
permittee shall
    (a) Obtain and destroy all photocopies of the previous permit from 
its suppliers, and
    (b) Return the original of the permit or obsolete permit to the 
appropriate TTB officer for cancellation.

                           Registry of Stills



Sec.  22.66  Registry of stills.

    The provisions of subpart C of part 29 of this chapter are 
applicable to stills on the premises of a permittee used for distilling. 
As provided in Sec.  29.55, the listing of a still in the permit 
application (Form 5150.22), and approval of the application, constitutes 
registration of the still.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179))

[T.D. ATF-207, 50 FR 23682, June 5, 1985]

[[Page 574]]

           Permanent Discontinuance of Use of Tax-Free Alcohol



Sec.  22.68  Notice of permanent discontinuance.

    A permittee who permanently discontinues the use of tax-free alcohol 
shall file a written notice with the appropriate TTB officer to cover 
the discontinuance. The notice will be accompanied by the permit, and 
contain--
    (1) A request to cancel the permit,
    (2) A statement of the disposition made, as provided in Sec.  
22.154, of all tax-free and recovered alcohol, and
    (3) The date of discontinuance.

(Approved by the Office of Management and Budget under control number 
1512-0335)

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 
FR 13015, Mar. 2, 2001]

Subpart E [Reserved]



                    Subpart F_Premises and Equipment



Sec.  22.91  Premises.

    All persons qualified to withdraw and use tax-free alcohol shall 
have premises suitable for the business being conducted and adequate for 
the protection of the revenue. Storage facilities shall be provided on 
the premises for tax-free alcohol received or recovered. The storage 
facilities may consist of a combination of storerooms, compartments, or 
stationary storage tanks.



Sec.  22.92  Storage facilities.

    (a) Storerooms or compartments shall be so constructed and secured 
as to prevent unauthorized access and will be equipped for locking. 
These storage facilities shall be of sufficient capacity to hold the 
maximum quantity of tax-free alcohol which will be on hand at one time.
    (b) Each stationary storage tank used to hold tax-free alcohol shall 
be equipped for locking in such a manner as to control access to the 
spirits. All stationary storage tanks shall be equipped with an accurate 
means of measuring the spirits.
    (c) Storerooms and storage tanks shall be kept locked when 
unattended. A storage cabinet or locker kept inside a room which is 
locked when unattended is considered to be adequately secured.



Sec.  22.93  Equipment for recovery and restoration of tax-free alcohol.

    (a) Location. All equipment used to recover and restore tax-free 
alcohol for reuse shall be located on the permit premises.
    (b) Construction. (1) Distilling apparatus, pipelines and other 
equipment used for recovery and restoration of tax-free alchohol shall 
be constructed and secured in such a manner as to prevent unauthorized 
access and so arranged as to be readily inspected.
    (2) Storage tanks shall be provided for the collection of recovered 
tax-free alcohol. Each storage tank shall--
    (i) Be durably marked as to use and capacity;
    (ii) Be equipped with, or for, an accurate means of measuring the 
spirits; and
    (iii) Be equipped for locking to control unauthorized access to the 
spirits.



                    Subpart G_Use of Tax-Free Alcohol



Sec.  22.101  Authorized uses.

    Alcohol may be withdrawn free of tax from the bonded premises of a 
distilled spirits plant for the use of any State or political 
subdivision of a State, or the District of Columbia, for nonbeverage 
purposes. Alcohol may also be withdrawn by persons eligible to use tax-
free alcohol, for nonbeverage purposes and not for resale or use in the 
manufacture of any product for sale. Tax-free alcohol shall be withdrawn 
and used only as provided by law and this part, as follows:
    (a) For the use of any educational organization described in 26 
U.S.C. 170(b)(1)(A) which is exempt from income tax under 26 U.S.C. 
501(a), or for the use of any scientific university or college of 
learning;
    (b) For any laboratory for use exclusively in scientific research;
    (c) For use at any hospital, blood bank, or sanitarium (including 
use in making any analysis or test at a hospital, blood bank, or 
sanitarium), or at

[[Page 575]]

any pathological laboratory exclusively engage in making analyses, or 
test, for hospitals or sanitariums; or
    (d) For the use of any clinic operated for charity and not for 
profit (including use in the compounding of bona fide medicines for 
treatment of patients outside of the clinic).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, (26 U.S.C. 5214))



Sec.  22.102  Prohibited uses.

    (a) Usage. Under no circumstances may tax-free alcohol withdrawn 
under this part be used for beverage purposes, food products, or in any 
preparation used in preparing beverage or food products.
    (b) Selling. Persons qualified under this part are prohibited from 
selling tax-free alcohol, using tax-free alcohol in the manufacture of 
any product for sale, or selling any products resulting from the use of 
tax-free alcohol. A separate charge may be made by a hospital, 
sanitarium or clinic for medicines compounded with tax-free alcohol and 
dispensed to patients for use on the premises, as provided in Sec. Sec.  
22.105 and 22.106. Hospitals may not furnish tax-free alcohol for use of 
physicians in their private practice.
    (c) Removal from premises. Persons qualified under this part may not 
remove tax-free alcohol or products resulting from the use of tax-free 
alcohol from the permit premises unless specifically authorized by the 
terms of their permit, or permission is obtained from the appropriate 
TTB officer, except that:
    (1) Products made through the use of tax-free alcohol which contain 
no alcohol may be removed to other premises for the sole purpose of 
further research; or
    (2) Under the provisions of Sec. Sec.  22.105 and 22.106, clinics 
operated for charity and not for profit may compound bona fide medicines 
with tax-free alcohol, and dispense the medicine from the premises for 
use by its patients outside of the clinic, if the furnishing of the 
medicine is not conditioned upon payment.
    (d) Liability for tax. Permittees who use tax-free alcohol in any 
manner prohibited by this section become liable for the tax on the 
alcohol. Any permittee who sells tax-free alcohol also becomes liable 
for special (occupational) tax as a liquor dealer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1343, as amended, 
1362, as amended (26 U.S.C. 5001, 5121, 5214))



Sec.  22.103  States and the District of Columbia.

    Except as otherwise provided in this section, tax-free alcohol 
withdrawn by a State or political subdivision of a State, or the 
District of Columbia shall be used solely for mechanical and scientific 
purposes, and except on approval of the appropriate TTB officer, the use 
of tax-free alcohol or the use of any resulting product will be confined 
to the premises under the control of the State or political subdivision 
of a State, or the District of Columbia. Tax-free alcohol withdrawn for 
use in hospitals, clinics, and other establishments specified in 
Sec. Sec.  22.104 through 22.108, operated by a State, political 
subdivision of a State, or the District of Columbia, shall be used in 
the manner prescribed for those establishments.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))



Sec.  22.104  Educational organizations, colleges of learning, and scientific universities.

    (a) Educational organizations. Educational organizations authorized 
to withdraw and use tax-free alcohol under Sec.  22.101 are those 
organizations which normally maintain a regular faculty and curriculum 
and which normally have a regularly enrolled body of students in 
attendance at the place where their educational activities are regularly 
carried on and which are exempt from Federal income tax under 26 U.S.C. 
501(a).
    (b) Colleges of learning. Colleges of learning, for the purposes of 
this subpart, have a recognized curriculum and confer degrees after 
specified periods of attendance at classes or research work.
    (c) Scientific universities. Scientific universities include any 
university incorporated or organized under any Federal or State law 
which provides training in the sciences.
    (d) Uses. Tax-free alcohol withdrawn by educational organizations, 
scientific

[[Page 576]]

universities, and colleges of learning shall be used only for 
scientific, medicinal, and mechanical purposes. Use of tax-free alcohol 
and resulting products are limited by the provisions of Sec.  22.102.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))



Sec.  22.105  Hospitals, blood banks, and sanitariums.

    (a) Tax-free alcohol withdrawn for use by hospitals, blood banks, 
and sanitariums shall be used exclusively for medicinal, mechanical 
(analysis or test) and scientific purposes and in the treatment of 
patients. The use of tax-free alcohol and of products resulting from the 
use of tax-free alcohol shall be confined to the permit premises, except 
as provided in this section and Sec.  22.102. Medicines compounded with 
tax-free alcohol on the premises of a hospital or sanitarium, for use of 
patients on the premises, may not be sold, but a separate charge may be 
made for the medicine.
    (b) A hospital, operating a clinic on premises, may withdraw tax-
free alcohol for use in the clinic, if the clinic is operated for 
charity and not for profit. Medicines compounded with tax-free alcohol 
may be dispensed to patients at a clinic for use outside of the clinic, 
if the furnishing of the medicine is not conditioned upon payment.
    (c) A hospital or sanitarium, operating a pathological or other 
laboratory on premises, may withdraw tax-free alcohol for authorized use 
in the laboratory.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))



Sec.  22.106  Clinics.

    Tax-free alcohol withdrawn by clinics operated for charity and not 
for profit shall be used only for medicinal, scientific, and mechanical 
purposes and in the treatment of patients. Medicine compounded with tax-
free alcohol may be dispensed to patients for use off the premises, if 
the furnishing of the medicine is not conditioned upon payment. A 
separate charge may be made for medicine coumpounded on the clinic 
premises with tax-free alcohol for use of patients on the premises. 
Except as provided in this section and in Sec.  22.102, the use of tax-
free alcohol shall be confined strictly to the premises of the clinic.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))



Sec.  22.107  Pathological laboratories.

    (a) Pathological laboratories, not operated by a hospital or 
sanitarium, may withdraw and use tax-free alcohol if exclusively engaged 
in making analyses or tests for hospitals or sanitariums. If a 
pathological laboratory does not exclusively conduct analyses or tests 
for hospitals or sanitariums, it does not qualify for the permit issued 
under this part.
    (b) A pathological laboratory which uses tax-free alcohol for any 
other purpose, except as provided in this section, shall become liable 
for the tax on the alcohol.
    (c) Except as provided in Sec.  22.102, the use of tax-free alcohol 
and of products resulting from the use of tax-free alcohol shall be 
confined strictly to the permit premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1362, as amended 
(26 U.S.C. 5001, 5214))



Sec.  22.108  Other laboratories.

    Laboratories, other than pathological laboratories specified in 
Sec.  22.107, may withdraw and use tax-free alcohol exclusively in 
scientific research. The use of tax-free alcohol or of products 
resulting from the use of tax-free alcohol shall be confined strictly to 
the laboratory premises, except as provided in Sec.  22.102.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))



          Subpart H_Withdrawal and Receipt of Tax-Free Alcohol



Sec.  22.111  Withdrawals under permit.

    (a) General. The permit, Form 5150.9, issued under subpart D of this 
part, authorizes a person to withdraw tax-free alcohol from the bonded 
premises of a distilled spirits plant or, under the provisions of 26 
U.S.C. 5688(a)(2)(B), receive alcohol from the General Services 
Administration.
    (b) Photocopying of permit, Form 5150.9. (1) As provided in Sec.  
22.54, a permittee

[[Page 577]]

may make photocopies of its permit, or amended permit, for the exclusive 
purpose of furnishing proof of authorization to withdraw tax-free 
alcohol.
    (2) A permittee need only furnish the photocopy of its permit, or 
amended permit, to a distilled spirits plant for the ``initial order'' 
from that distilled spirits plant.
    (3) When a permittee makes photocopies of its permit, Form 5150.9, 
each copy shall be signed, dated, and contain the word ``COPY'' across 
the face.
    (4) A permittee is responsible for obtaining and, as applicable, 
destroying all photocopies of its permit from distilled spirits plants 
when (i) an amended or corrected permit is issued which supersedes the 
copy on file, (ii) the permit is canceled by reason of requalification 
as a new permittee, (iii) the permit is revoked or suspended, or (iv) 
upon permanent discontinuance of use of tax-free alcohol.
    (c) Withdrawals under permit. (1) When a permittee places an initial 
order for tax-free alcohol it shall forward a signed copy of the permit, 
for retention by the distilled spirits plant, along with the purchase 
request.
    (2) When the permittee places a subsequent order for tax-free 
alcohol, the purchase request, in addition to any other information, 
shall contain the permit identification number along with a statement 
that the permittee possesses a valid permit to withdraw tax-free 
alcohol, a copy of which is on file.
    (3) Shipments shall not be made by a proprietor of a distilled 
spirits plant until it is in possession of a signed copy of a valid 
permit, Form 5150.9, unless the appropriate TTB officer authorizes the 
shipment.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  22.112  Regulation of withdrawals.

    (a) Each permittee shall regulate its withdrawals of tax-free 
alcohol to ensure that (1) the quantity on hand and unaccounted for does 
not exceed the capacity of the storage facilities, and (2) the 
cumulative quantity withdrawn or received in any calendar year does not 
exceed the quantity authorized by the permit, Form 5150.9. Recovered 
alcohol and alcohol received from the General Services Administration 
shall be taken into account in determining the total quantity of alcohol 
on hand.
    (b) For the purpose of this section, tax-free alcohol and recovered 
alcohol shall be considered as unaccounted for if lost under 
circumstances where a claim for allowance is required by this part and 
the claim has not been allowed, or if used or disposed of in any manner 
not provided for in this part.



Sec.  22.113  Receipt of tax-free alcohol.

    (a) When tax-free alcohol is received, it shall be placed in the 
storage facilities prescribed by Sec.  22.91 and kept there under lock 
until withdrawn for use. Unless required by city or State fire code 
regulations or authorized by the appropriate TTB officer or the terms of 
the permit, the permittee may not remove tax-free alcohol from the 
original packages or containers in which received until the alcohol is 
withdrawn for use. If the tax-free alcohol is transferred to ``safety'' 
containers in accordance with fire code regulations, the containers to 
which they are transferred shall be appropriately marked to identify the 
package from which transferred, the quantity transferred, the date of 
transfer, and the name and address of the vendor.
    (b) When tax-free alcohol is received, the permittee shall ascertain 
and account for any losses in transit in accordance with subpart I of 
this part. The permittee shall note any loss or deficiency in the 
shipment on the record of receipt.
    (c) Records of receipt shall consist of the consignors invoice or 
bill. Records of receipt may be filed in accordance with the permittee's 
own filing system as long as it does not cause inconvenience to 
appropriate TTB officers desiring to examine the records. The filing 
system shall systematically and accurately account for the receipt of 
all tax-free alcohol.



Sec.  22.114  Alcohol received from the General Services Administration.

    Any nonprofit charitable institution holding a permit on Form 
5150.9, and receiving alcohol from the General

[[Page 578]]

Services Administration under the provisions of 26 U.S.C. 5688(a)(2)(B), 
shall include any quantity of alcohol received in computing the quantity 
of tax-free alcohol that may be procured under its permit during the 
calendar year. The alcohol, on receipt, shall be placed in the storage 
facilities prescribed in Sec.  22.91 and kept there under lock until 
withdrawn for use.



                            Subpart I_Losses



Sec.  22.121  Liability and responsibility of carriers.

    (a) A person or carrier transporting tax-free alcohol to a consignee 
or returning the alcohol to the consignor is responsible for the safe 
delivery and is accountable for any tax-free alcohol not delivered.
    (b) A person or carrier transporting tax-free alcohol in violation 
of any law or regulation pertaining thereto, is subject to all 
provisions of law relating to alcohol subject to and the payment of tax 
thereon, and shall be required to pay the tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C 5001))



Sec.  22.122  Losses in transit.

    (a) Reporting losses. Upon discovering any loss of tax-free alcohol 
while in transit, the carrier shall immediately inform the consignee, in 
writing, of the facts and circumstances relating to the loss. In the 
case of theft, the carrier shall also immediately notify the consignee's 
appropriate TTB officer of the facts and circumstances relating to the 
loss.
    (b) Recording losses. At the time the shipment or report of loss is 
received, the consignee shall determine the quantity of tax-free alcohol 
lost. The consignee shall note the quantity lost on the receiving 
document and attach all relevant information to the record of receipt, 
prescribed in Sec.  22.113. For the purpose of maintaining the records 
prescribed in subpart M of this part, receipts of tax-free alcohol shall 
only include the quantity actually received.
    (c) Claims. A claim for allowances of losses of tax-free alcohol 
shall, as prescribed in Sec.  22.125, be filed:
    (1) If the quantity lost in transit exceeds 1 percent of the total 
quantity shipped and is more than 5 proof gallons, the consignee shall 
file a claim for allowance of the entire quantity lost; or
    (2) If the loss was due to theft or other unlawful removal, the 
consignee shall file a claim for allowances of the entire quantity lost, 
regardless of the quantity or percentage involved.

(Reporting approved by the Office of Management and Budget under control 
number 1512-0335; recordkeeping approved by the Office of Management and 
Budget under control number 1512-0334)



Sec.  22.123  Losses on premises.

    (a) Recording of losses. A permittee shall determine and record, in 
the records prescribed by subpart M of this part, the quantity of tax-
free or recovered alcohol lost on premises--
    (1) At the end of each semi-annual period when the inventory 
required by Sec.  22.162 is taken, or
    (2) Immediately upon the discovery of any loss due to casualty, 
theft or other unusual causes.
    (b) Claims. A claim for allowances of losses of tax-free alcohol 
shall be filed as prescribed in Sec.  22.125, in the following 
circumstances--
    (1) if the quantity lost during any semi-annual inventory period 
exceeds 1 percent of the quantity to be accounted for during that 
period, and is more than 10 proof gallons, or
    (2) if the loss was due to theft or unlawful use or removal, the 
permittee shall file a claim for allowances of losses regardless of the 
quantity involved.

(Approved by the Office of Management and Budget under control number 
1512-0334)



Sec.  22.124  Incomplete shipments.

    (a) Subject to the provisions of this part and Part 19 of this 
chapter, when containers of tax-free alcohol have sustained losses in 
transit other than by theft, and the shipment will not be delivered to 
the consignee, the carrier may return the shipment to the distilled 
spirits plant.
    (b) When tax-free alcohol is returned to the distilled spirits 
plant, in accordance with this section, the carrier shall inform the 
proprietor, in writing, of the facts and circumstances relating to

[[Page 579]]

the loss. In the case of theft, the carrier shall also immediately 
notify the shipper's appropriate TTB officer of the facts and 
circumstances relating to the loss.
    (c) Subject to the limitations for loss prescribed in Sec.  22.122, 
the proprietor of the distilled spirits plant shall file a claim for 
allowance of the entire quantity lost, in the same manner provided in 
that section. The claim shall include the applicable date required by 
Sec.  22.125.



Sec.  22.125  Claims.

    (a) Claims for allowances of losses of tax-free or recovered alcohol 
shall be filed, on Form 2635 (5620.8), within 30 days from the date the 
loss is ascertained, and shall contain the following information:
    (1) Name, address, and permit number of claimant;
    (2) Identification and location of the container(s) from which the 
tax-free or recovered alcohol was lost, and the quantity lost from each 
container;
    (3) Total quantity of tax-free or recovered alcohol covered by the 
claim and the aggregate quantity involved;
    (4) Date of loss or discovery, the cause or nature of loss, and all 
relevant facts, including facts establishing whether the loss occurred 
as a result of negligence, connivance, collusion, or fraud on the part 
of any person, employee or agent participating in or responsible for the 
loss; and
    (5) Name of carrier where a loss in transit is involved.
    (b) The carriers statement regarding a loss in transit, prescribed 
by Sec.  22.122 or 22.124, shall accompany the claim.
    (c) The appropriate TTB officer may require additional evidence to 
be submitted in support of the claim.



                 Subpart J_Recovery of Tax-Free Alcohol



Sec.  22.131  General.

    Any person or permittee conducting recovery operations of tax-free 
alcohol shall be qualified by the terms of their permit to do so, under 
the provision of subpart D of this part. Restoration of recovered tax-
free alcohol may only be accomplished on the permit premises or by the 
proprietor of a distilled spirits plant.



Sec.  22.132  Deposit in storage tanks.

    (a) Recovered alcohol shall be accumulated and kept in separate 
storage tanks conforming to Sec.  22.93. Recovered alcohol shall be 
measured before being redistilled or reused.
    (b) Recovered alcohol may be removed from storage tanks for 
packaging and shipment to a distilled spirits plant for redistillation.



Sec.  22.133  Shipment for redistillation.

    (a) Unless a permittee intends to redistill recovered alcohol to its 
original state, the recovered alcohol shall be shipped in containers to 
a distilled spirits plant for restoration.
    (b) Containers shall be labeled with--
    (1) The name, address, and permit number of permittee,
    (2) The quantity of recovered alcohol in gallons,
    (3) The words ``Recovered tax-free alcohol'', and
    (4) A package identification number or serial number in accordance 
with paragraph (c)(1) or (c)(2) of this section.
    (c)(1) A package identification number shall apply to all of the 
packages filled at the same time. All of the packages in one lot shall 
be the same type, have the same rated capacity, and be uniformly filled 
with the same quantity. A package identification number shall be derived 
from the date on which the package is filled, and shall consist of the 
following elements, in the order shown--
    (i) The last two digits of the calendar year;
    (ii) An alphabetical designation from ``A'' through ``L'', 
representing January through December, in that order;
    (iii) The digits corresponding to the day of the month; and
    (iv) A letter suffix when more than one identical lot is filled into 
packages during the same day. For successive lots after the first lot, a 
letter suffix shall be added in alphabetical order, with ``A'' 
representing the second lot of the day, ``B'' representing the third lot 
of the day, etc. (e.g., the first three lots filled into packages on 
November 19, 1983, would be identified as ``83K19,'' ``83K19A,'' and 
``83K19B.''
    (2) A consecutive serial number shall be marked on each package, 
beginning with the number ``1'' and continuing in

[[Page 580]]

regular sequence. When any numbering series reaches ``1,000,000,'' the 
user may recommence the series by providing an alphabetical prefix or 
suffix for each number in the new series.



Sec.  22.134  Records of shipment.

    A consignor shipping recovered alcohol or tax-free alcohol to a 
distilled spirits plant shall prepare and forward a record of shipment 
to the consignee. The record of shipment may consist of a shipping 
invoice, bill, or bill of lading, or another document intended for the 
same purpose. The record of shipment shall accurately identify and 
account for the tax-free or recovered alcohol being shipped. A permittee 
shall file one copy of the record of shipment with the records required 
by Sec.  22.161.

(Approved by the Office of Management and Budget under control number 
1512-0334)



                          Subpart K_Destruction



Sec.  22.141  General.

    A permittee may terminate liability for payment of tax, prescribed 
by law, when tax-free or recovered alcohol is destroyed in accordance 
with this subpart.



Sec.  22.142  Destruction.

    (a) A permittee may destroy tax-free or recovered alcohol upon
    (1) The filing of a notice of intention to destroy with the 
appropriate TTB officer at least 7 days prior to the proposed date of 
destruction, or
    (2) Furnishing the notice to an appropriate TTB officer at the 
premises who may supervise the destruction or transmit the notice to the 
appropriate TTB officer.
    (b) The notice of intention to destroy shall contain--
    (1) The reason for destruction,
    (2) The date, time, location and manner of destruction, and
    (3) The quantity involved and, if applicable, the package 
identification numbers of containers.
    (c) If, by the date and time specified in the notice, an appropriate 
TTB officer has not supervised the destruction, or the appropriate TTB 
officer has not advised the permittee to the contrary, the spirits may 
be destroyed in the manner stated in the notice.
    (d) Following the destruction, if unsupervised by an TTB officer, 
the permittee shall annotate a copy of the notice with the name of the 
individual who accomplished or supervised the destruction. This notice 
shall serve as a record of destruction and shall be maintained with the 
records required by Sec.  22.161.

(Approved by the Office of Management and Budget under control number 
1512-0335)



Subpart L_Return, Reconsignment and Disposition of Tax-Free or Recovered 
                                 Alcohol



Sec.  22.151  Return.

    A permittee may, following the receipt of tax-free alcohol and for 
any legitimate reason, return the spirits to any distilled spirits plant 
if the consignee consents to the shipment. The consignor shall prepare a 
record of shipment in the same manner prescribed in Sec.  22.134 for 
shipment of recovered alcohol.

(Approved by the Office of Management and Budget under control number 
1512-0334)



Sec.  22.152  Reconsignment in transit.

    (a) Reconsignment. Tax-free alcohol may be reconsigned to another 
permittee or returned to the consignor if, prior to, or on arrival at 
the premises of the consignee, the alcohol is determined to be 
unsuitable for the intended purpose, was shipped in error, or, for any 
bona fide reason, is not accepted by the consignee or carrier.
    (b) Records of reconsignment. In the case of reconsignment, the 
consignor shall cancel the initial record of shipment and prepare a new 
record of shipment, if the shipment is to another permittee. The new 
record of shipment shall be annotated ``Reconsignment.''

(Approved by the Office of Management and Budget under control number 
1512-0334)

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-443, 66 
FR 13015, Mar. 2, 2001]

[[Page 581]]



Sec.  22.153  Disposition after revocation of permit.

    When any permit issued on Form 5150.9 is revoked, all tax-free 
alcohol in transit and all alcohol on the former permit premises, may be 
lawfully possessed by the former permittee for the exclusive purpose of 
disposing of the alcohol, for a period of 60 days following the date of 
revocation. Any tax-free or recovered alcohol not disposed of within the 
specified 60-day period, is subject to seizure and forfeiture.



Sec.  22.154  Disposition on permanent discontinuance of use.

    (a) Tax-free alcohol. Tax-free alcohol on hand at the time of 
discontinuance of use, may be disposed of by
    (1) Returning the spirits to a distilled spirits plant, as provided 
in Sec.  22.151,
    (2) Destruction, as provided in Sec.  22.142, or
    (3) Shipping to another permittee, in accordance with Sec.  22.155.
    (b) Recovered tax-free alcohol. Upon permanent discontinuance of 
use, a permittee may dispose of recovered tax-free alcohol by
    (1) Shipment to a distilled spirits plant, as provided in Sec.  
22.133,
    (2) Destruction, as provided in Sec.  22.142, or
    (3) Upon the filing of an application with the appropriate TTB 
officer, any other approved method.

(Approved by the Office of Management and Budget under control number 
1512-0335)



Sec.  22.155  Emergency disposition to another permittee.

    (a) In the case of an emergency, a permittee may, upon the filing of 
a notice with the appropriate TTB officer, dispose of tax-free alcohol 
to another permittee, when the quantity involved does not exceed 10 
proof gallons. In the case of a medical emergency or disaster, the 
appropriate TTB officer is authorized to verbally approve, with the 
required notice to follow, disposals of tax-free alcohol to another 
permittee or Government agency in excess of 10 proof gallons. The tax-
free alcohol disposed of shall be in original unopened containers. The 
consignor shall prepare a record of shipment in the same manner 
prescribed in Sec.  22.134.
    (b) The notice required by this section shall (1) explain the nature 
of the emergency, (2) identify the consignee by name, address and permit 
number, and (3) list the quantity of alcohol and package identification 
number of the container(s) involved.
    (c) The consignor permittee may not receive remuneration for tax-
free alcohol given to another permittee in case of an emergency, as 
authorized by this section.

(Notice approved by the Office of Management and Budget under control 
number 1512-0335; recordkeeping approved by the Office of Management and 
Budget under control number 1512-0334)



                    Subpart M_Records of Transactions



Sec.  22.161  Records.

    (a) General. All persons qualified under this part shall keep 
accurate records of all receipts, shipments, usage, destructions and 
claims pertaining to the withdrawal and use of tax-free alcohol. These 
records shall be in sufficient detail to enable the permittee to 
reconcile any losses or gains for the semi-annual inventory, and to 
enable appropriate TTB officers to verify all transactions and to 
ascertain whether there has been compliance with law and regulations. 
All records required by this section shall identify tax-free alcohol by 
proof, date of transaction, and quantity involved, and shall include 
alcohol received from the General Services Administration and the 
recovery of alcohol and its disposition. Records shall be kept current 
at all times.
    (b) Records of receipt and shipment. Records of receipt and shipment 
shall consist of the consignor's or consignee's (as the case may be) 
invoice, bill or bill of lading, or another document used for the 
intended purpose. Records of receipt shall record only the quantity of 
tax-free alcohol actually received. Losses in transit shall not be 
considered as received, but may be the subject of a claim for allowances 
of losses, as prescribed in Subpart I of this part.
    (c) Records of usage. For the purpose of this subpart, tax-free or 
recovered alcohol shall be considered as ``used''

[[Page 582]]

when permanently removed from a permittee's supply storeroom, 
compartment, or tank for any authorized use. Records of usage shall 
identify the tax-free alcohol by quantity, proof, and purpose of removal 
(office, department or location to which dispensed). This record shall 
list separately, the usage of tax-free alcohol from recovered alcohol or 
alcohol received from the General Services Administration.
    (d) Records of destruction. Records of destruction shall consist of 
a copy of the notice of intention to destroy, prescribed in Sec.  
22.141, signed by an appropriate TTB officer or employee witnessing the 
destruction.
    (e) Claims. Claims for allowance of losses of tax-free alcohol, 
required to be filed under Subpart I of this part, shall consist of 
Forms 2635 (5620.8) and supporting data.

(Approved by the Office of Management and Budget under control number 
1512-0334)



Sec.  22.162  Inventories.

    Each permittee shall take a physical inventory of the tax-free and 
recovered alcohol in its possession semi-annually for the periods ending 
June 30 and December 31 of each year; or other inventory periods which 
are approximately 6 months apart, upon filing written notice with the 
appropriate TTB officer establishing other inventory periods. These 
inventories may be recorded separately or as an entry in the record of 
usage with any necessary adjustments (losses or gains). If an inventory 
results in a loss in excess of the quantities prescribed by Subpart I of 
this part, the permittee shall file a claim for allowance of loss.

(Notice approved by the Office of Management and Budget under control 
number 1512-0335; recordkeeping approved by the Office of Management and 
Budget under control number 1512-0334)



Sec.  22.163  Time for making entries.

    Any person who conducts an operation which is required to be 
recorded under this part, shall enter that operation in the records on 
the same day the operation occurred. However, the daily posting of 
records may be deferred to conform to the permittee's normal accounting 
cycle if (a) supporting or supplemental records are prepared at the time 
of the operation, and these supporting or supplemental records are to be 
used to post the daily record, and (b) the deferral of posting does not 
pose a jeopardy to the revenue.



Sec.  22.164  Filing and retention of records.

    Each person required to maintain records of operations and 
transactions under this part shall:
    (a) Keep on file all records and copies of claims for a period of 
not less than 3 years following the date of transaction or, at the 
discretion of the appropriate TTB officer, an additional 3-year period; 
and
    (b) Maintain all records at the permit premises, except that the 
records may be kept at a central location by a State or political 
subdivision of a State, or the District of Columbia which distributes 
tax-free alcohol to multiple dependent agencies, institutions, or 
departments.



Sec.  22.165  Photographic copies of records.

    (a) General. Permittees may record, copy, or reproduce required 
records. Any process may be used which accurately reproduces the 
original record, and which forms a durable medium for reproducing and 
preserving the original record.
    (b) Copies of records treated as original records. Whenever records 
are reproduced under this section, the reproduced records shall be 
preserved in conveniently accessible files, and provisions shall be made 
for examining, viewing, and using the reproduced records the same as if 
they were the original record, and they shall be treated and considered 
for all purposes as though they were the original record. All provisions 
of law and regulations applicable to the original are applicable to the 
reproduced record. As used in this section, ``original record'' means 
the record required by this part to be maintained or preserved by the 
permittee, even though it may be an executed duplicate or other copy of 
the document.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))

[[Page 583]]



  Subpart N_Use of Tax-Free Spirits by the United States or Government 
                                 Agency



Sec.  22.171  General.

    (a) The United States or any of its Government agencies may withdraw 
tax-free spirits for nonbeverage purposes from a distilled spirits plant 
under this part, as authorized by 26 U.S.C. 5214(a)(2). Before any tax-
free spirits may be withdrawn, a permit to procure the spirits shall be 
obtained from the appropriate TTB officer. Payment of special 
(occupational) tax and filing of a bond are not required for any 
Governmental agency of the United States to procure tax-free spirits.
    (b) The provisions of subpart M of 27 CFR part 27 cover the 
withdrawal of imported spirits, free of tax, for use of the United 
States or any of its Government agencies.

(26 U.S.C. 5214, 5271, 5272, 5276)

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985, as amended by T.D. ATF-285, 54 
FR 12610, Mar. 28, 1989; T.D. ATF-479, 67 FR 30798, May 8, 2002]



Sec.  22.172  Application and permit, Form 5150.33.

    (a) All permits previously issued to the United States or any of its 
Government agencies on Form 1444 shall remain valid and shall be 
regulated by the same provisions of this subpart as it refers to permits 
on Forms 5150.33.
    (b) A Government agency shall apply for a permit to obtain tax-free 
spirits on Form 5150.33. Upon approval, Form 5150.33 will be returned to 
the Government agency, and shall serve as authority to procure spirits 
free of tax.
    (c) A Government agency may specify on its application for a permit 
to procure tax-free spirits, Form 5150.33, that it desires a single 
permit authorizing all sub-agencies under its control to procure tax-
free spirits; or each Government location (agency, department, bureau, 
and etc.) desiring to procure tax-free spirits for nonbeverage purposes 
may individually submit an application for a permit on Form 5150.33.
    (d) An application for a permit shall be signed by the head of the 
agency or sub-agency, or the incumbent of an office which is authorized 
by the head of the agency or sub-agency, to sign. Evidence of 
authorization to sign for the head of the agency or sub-agency shall be 
furnished with the application.
    (e) Tax-free spirits obtained by Government agencies may not be used 
for non-Government purposes.

[T.D. ATF-199, 50 FR 9183, Mar. 6, 1985; 50 FR 20099, May 14, 1985]



Sec.  22.173  Procurement of tax-free spirits.

    Each Government agency shall retain the original of its permit, Form 
5150.33, on file. When placing an initial order with a vendor, the 
agency shall forward a photocopy of its permit with the purchase order 
for tax-free spirits. In the case of an agency holding a single permit 
for use of other sub-agencies, the photocopy of the permit shall contain 
an attachment listing all other locations authorized to procure tax-free 
spirits. Any subsequent purchases from the same vendor need only contain 
the permit number on the purchase order.



Sec.  22.174  Receipt of shipment.

    On receipt of a shipment of tax-free spirits, a representative of 
the Government agency shall inspect the shipment for any loss or 
deficiency. In the case of loss or deficiency, the agency shall annotate 
the receiving document and forward a copy to the appropriate TTB 
officer.



Sec.  22.175  Discontinuance of use.

    When a Government agency, holding a permit issued under this 
subpart, no longer intends to procure and use tax-free spirits, the 
permit shall be returned to the appropriate TTB officer for 
cancellation. All photocopies of the permit furnished to vendors shall 
be returned to the agency for destruction.



Sec.  22.176  Disposition of excess spirits.

    At the time of discontinuance of use of tax-free spirits, a 
Government agency may dispose of any excess tax-free spirits (a) by 
transferring the spirits to another Government agency holding a permit, 
(b) by returning the spirits to a vendor, or (c) in any manner 
authorized by the appropriate TTB officer. Tax-free spirits may not be 
disposed of to the general public.

[[Page 584]]



PART 24_WINE--Table of Contents




                             Subpart A_Scope

Sec.
24.1 General.
24.2 Territorial extent.
24.4 Related regulations.

                          Subpart B_Definitions

24.10 Meaning of terms.

          Subpart C_Administrative and Miscellaneous Provisions

                               Authorities

24.19 Delegations of the Administrator.
24.20 Forms prescribed.
24.21 Modified forms.
24.22 Alternate method or procedure.
24.25 Emergency variations from requirements.
24.26 Authority to approve.
24.27 Segregation of operations.
24.28 Installation of meters, tanks, and other apparatus.
24.29 Claims.
24.30 Supervision.
24.31 Submission of forms and reports.
24.32 Records.
24.35 Right of entry and examination.
24.36 Instruments and measuring devices.
24.37 Samples for the United States.

                        Facilities and Assistance

24.40 Gauging and measuring.
24.41 Office facilities.

                     Employer Identification Number

24.45 Use on returns.
24.46 Application.
24.47 Execution of IRS Form SS-4.

                      Special (Occupational) Taxes

24.50 Payment of special (occupational) tax.
24.51 Rates of special (occupational) tax.
24.52 Exemption from special (occupational) tax.
24.53 Special (occupational) tax returns.
24.54 Special (occupational) tax stamps.
24.55 Changes in special (occupational) tax stamps.

                               Assessments

24.60 General.
24.61 Assessment of tax.
24.62 Notice.

                                 Claims

24.65 Claims for wine or spirits lost or destroyed in bond.
24.66 Claims on wine returned to bond.
24.67 Other claims.
24.68 Insurance coverage.
24.69 Filing of claims.
24.70 Claims for credit of tax.

                             Tax Exempt Wine

24.75 Wine for personal or family use.
24.76 Tax exempt cider.
24.77 Experimental wine.

                                Formulas

24.80 General.
24.81 Filing of formulas.
24.82 Samples.

                                Essences

24.85 Essences.
24.86 Essences produced on wine premises.
24.87 Essences made elsewhere.

             Conveyance of Wine or Spirits on Wine Premises

24.90 Taxpaid products.
24.91 Conveyance of untaxpaid wine or spirits.
24.92 Products in customs custody.

                                 Samples

24.95 General.
24.96 Use off premises.
24.97 Use on premises.

                 Subpart D_Establishment and Operations

24.100 General.

                         Premises and Operations

24.101 Bonded wine premises.
24.102 Premises established for taxpaid wine operations.
24.103 Other operations.

                               Application

24.105 General.
24.106 Basic permit requirements.
24.107 Designation as a bonded winery.
24.108 Bonded wine warehouse application.
24.109 Data for application.
24.110 Organizational documents.
24.111 Description of premises.
24.112 Name of proprietor and trade names.
24.113 Description of volatile fruit-flavor concentrate operations.
24.114 Registry of stills.
24.115 Registry number.
24.116 Powers of attorney.
24.117 Maintenance of application file.

              Changes Subsequent to Original Establishment

24.120 Amended application.
24.121 Changes affecting permits.
24.122 Change in name of proprietor or trade name.
24.123 Change in stockholders.
24.124 Change in corporate officers.
24.125 Change in proprietorship.

[[Page 585]]

24.126 Change in proprietorship involving a bonded wine warehouse.
24.127 Adoption of formulas.
24.128 Continuing partnerships.
24.129 Change in location.
24.130 Change in volatile fruit-flavor concentrate operations.
24.131 Change in building construction and use of premises.

                               Alternation

24.135 Wine premises alternation.
24.136 Procedure for alternating proprietors.
24.137 Alternate use of the wine premises for customs purposes.

                 Permanent Discontinuance of Operations

24.140 Notice.
24.141 Bonded wine warehouse.

                      Bonds and Consents of Surety

24.145 General requirements.
24.146 Bonds.
24.147 Operations bond or unit bond.
24.148 Penal sums of bonds.
24.149 Corporate surety.
24.150 Powers of attorney.
24.151 Deposit of collateral security.
24.152 Consents of surety.
24.153 Strengthening bonds.
24.154 New or superseding bonds.
24.155 Disapproval and appeal from disapproval.
24.156 Termination of bonds.
24.157 Application by surety for relief from bond.
24.158 Extent of relief.
24.159 Release of collateral security.

                  Subpart E_Construction and Equipment

24.165 Premises.
24.166 Buildings or rooms.
24.167 Tanks.
24.168 Identification of tanks.
24.169 Pipelines.
24.170 Measuring devices and testing instruments.

                      Subpart F_Production of Wine

24.175 General.
24.176 Crushing and fermentation.
24.177 Chaptalization (Brix adjustment).
24.178 Amelioration.
24.179 Sweetening.
24.180 Use of concentrated and unconcentrated fruit juice.
24.181 Use of sugar.
24.182 Use of acid to correct natural deficiencies.
24.183 Use of distillates containing aldehydes.
24.184 Use of volatile fruit-flavor concentrate.

                Subpart G_Production of Effervescent Wine

24.190 General.
24.191 Segregation of operations.
24.192 Process and materials.
24.193 Conversion into still wine.

              Subpart H_Production of Special Natural Wine

24.195 General.
24.196 Formula required.
24.197 Production by fermentation.
24.198 Blending.

                Subpart I_Production of Agricultural Wine

24.200 General.
24.201 Formula required.
24.202 Dried fruit.
24.203 Honey wine.
24.204 Other agricultural products.

            Subpart J_Production of Other Than Standard Wine

24.210 Classes of wine other than standard wine.
24.211 Formula required.
24.212 High fermentation wine.
24.213 Heavy bodied blending wine.
24.214 Spanish type blending sherry.
24.215 Wine or wine products not for beverage use.
24.216 Distilling material.
24.217 Vinegar stock.
24.218 Other wine.

                            Subpart K_Spirits

24.225 General.
24.226 Receipt or transfer of spirits.
24.227 Transfer of spirits by pipeline for immediate use.
24.228 Transfer of spirits by pipeline to a spirits storage tank.
24.229 Tank car and tank truck requirements.
24.230 Examination of tank car or tank truck.
24.231 Receipt of spirits in sealed bulk containers.
24.232 Gauge of spirits.
24.233 Addition of spirits to wine.
24.234 Other use of spirits.
24.235 Taxpayment or destruction of spirits.
24.236 Losses of spirits.
24.237 Spirits added to juice or concentrated fruit juice.

           Subpart L_Storage, Treatment and Finishing of Wine

24.240 General.
24.241 Decolorizing juice or wine.
24.242 Authority to use greater quantities of decolorizing material in 
          juice or wine.

[[Page 586]]

24.243 Filtering aids.
24.244 Use of acid to stabilize standard wine.
24.245 Use of carbon dioxide in still wine.
24.246 Materials authorized for the treatment of wine and juice.
24.247 Materials authorized for the treatment of distilling material.
24.248 Processes authorized for the treatment of wine, juice, and 
          distilling material.
24.249 Experimentation with new treating material or process.
24.250 Application for use of new treating material or process.

                 Bottling, Packing, and Labeling of Wine

24.255 Bottling or packing wine.
24.256 Bottle aging wine.
24.257 Labeling wine containers.
24.258 Certificates of approval or exemption.
24.259 Marks.
24.260 Serial numbers or filling date.

                        Subpart M_Losses of Wine

24.265 Losses by theft.
24.266 Inventory losses.
24.267 Losses in transit.
24.268 Losses by fire or other casualty.

              Subpart N_Removal, Return and Receipt of Wine

                            Taxpaid Removals

24.270 Determination of tax.
24.271 Payment of tax by return with remittance.
24.272 Payment of tax by electronic fund transfer.
24.273 Exception to filing semimonthly or quarterly tax returns.
24.274 Failure to timely pay tax or file a return.
24.275 Prepayment of tax.
24.276 Prepayment of tax; proprietor in default.
24.277 Date of mailing or delivering of returns.
24.278 Tax credit for certain small domestic producers.
24.279 Tax adjustments related to wine credit.

                        Transfer of Wine in Bond

24.280 General.
24.281 Consignor premises.
24.282 Multiple transfers.
24.283 Reconsignment.
24.284 Consignee premises.

                     Removals Without Payment of Tax

24.290 Removal of wine as distilling material.
24.291 Removal of wine for vinegar production.
24.292 Exported wine.
24.293 Wine for Government use.
24.294 Destruction of wine.

                  Return of Unmerchantable Wine to Bond

24.295 Return of unmerchantable wine to bond.

                         Taxpaid Wine Operations

24.296 Taxpaid wine operations.

                      Subpart O_Records and Reports

24.300 General.
24.301 Bulk still wine record.
24.302 Effervescent wine record.
24.303 Formula wine record.
24.304 Chaptalization (Brix adjustment) and amelioration record.
24.305 Sweetening record.
24.306 Distilling material or vinegar stock record.
24.307 Nonbeverage wine record.
24.308 Bottled or packed wine record.
24.309 Transfer in bond record.
24.310 Taxpaid removals from bond record.
24.311 Taxpaid wine records.
24.312 Unmerchantable wine returned to bond record.
24.313 Inventory record.
24.314 Label information record.
24.315 Materials received and used record.
24.316 Spirits record.
24.317 Sugar record.
24.318 Acid record.
24.319 Carbon dioxide record.
24.320 Chemical record.
24.321 Decolorizing material record.
24.322 Allied products record.
24.323 Excise Tax Return form.

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 
5061, 5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5148, 5173, 5206, 
5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-
5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 
6301, 6302, 6311, 6651, 6676, 7011, 7302, 7342, 7502, 7503, 7606, 7805, 
7851; 31 U.S.C. 9301, 9303, 9304, 9306.

    Source: T.D. ATF-299, 55 FR 24989, June 19, 1990, unless otherwise 
noted.



                             Subpart A_Scope



Sec.  24.1  General.

    The regulations in this part relate to the establishment and 
operation (including incidental activities) of wine premises and to the 
treatment and classification of wine.



Sec.  24.2  Territorial extent.

    This part applies to the several States of the United States and the 
District of Columbia. (Sec. 201, Pub. L.

[[Page 587]]

85-859, 72 Stat. 1337, as amended (26 U.S.C. 5065))



Sec.  24.4  Related regulations.

    Regulations related to this part are listed below:
26 CFR Part 301--Procedure and Administration.
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act.
27 CFR Part 2--Nonindustrial Use of Distilled Spirits and Wine.
27 CFR Part 4--Labeling and Advertising of Wine.
27 CFR Part 9--American Viticultural Areas.
27 CFR Part 16--Alcoholic Beverage Health Warning Statement
27 CFR Part 18--Production of Volatile Fruit-Flavor Concentrates.
27 CFR Part 19--Distilled Spirits Plants.
27 CFR Part 26--Liquors and Articles from Puerto Rico and the Virgin 
Islands.
27 CFR Part 27--Importation of Distilled Spirits, Wines and Beer.
27 CFR Part 28--Exportation of Alcohol.
27 CFR Part 29--Stills and Miscellaneous Regulations.
27 CFR Part 30--Gauging Manual.
27 CFR Part 31--Alcohol Beverage Dealers.
27 CFR Part 71--Rules of Practice in Permit Proceedings.
31 CFR Part 225--Acceptance of Bonds, Notes, or Other Obligations Issued 
or Guaranteed by the United States as Security in Lieu of Surety or 
Sureties on Penal Bonds.

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-459, 
66 FR 38550, July 25, 2001; T.D. ATF-463, 66 FR 42734, Aug. 15, 2001; 
T.D. ATF-462, 66 FR 42736, Aug. 15, 2001; T.D. ATF-470, 66 FR 58944, 
Nov. 26, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-8, 69 FR 
3830, Jan. 27, 2004; T.D. TTB-25, 70 FR 19882, Apr. 15, 2005]



                          Subpart B_Definitions



Sec.  24.10  Meaning of terms.

    When used in this part and in the forms prescribed under this part, 
terms will have the meanings ascribed in this section. Words in the 
plural form also include the singular, and vice versa, and words 
indicating the masculine gender also include the feminine. The terms 
``includes'' and ``including'' do not exclude items not enumerated which 
are in the same general class. The definitions in this section do not 
supersede or affect the requirements of part 4 of this chapter, relative 
to the labeling of wine under the provisions of the Federal Alcohol 
Administration Act (49 Stat. 981; 27 U.S.C. 205).
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Affiliated persons or firms. When used in connection with ``own 
production'', one or more bonded wine premises proprietors associated as 
members of the same farm cooperative, or any one or more bonded wine 
premises proprietors affiliated within the meaning of section 117(a)(5) 
of the Federal Alcohol Administration Act, as amended (49 Stat. 989; 27 
U.S.C. 211).
    Agricultural wine. Wine made from suitable agricultural products 
other than the juice of grapes, berries, or other fruits.
    Allied products. Commercial fruit products and by-products 
(including volatile fruit-flavor concentrate) not taxable as wine.
    Amelioration. The addition to juice or natural wine before, during, 
or after fermentation, of either water or pure dry sugar, or a 
combination of water and sugar to adjust the acid level.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.24, Delegation of the Administrator's Authorities in 27 CFR Part 
24, Wine.
    Artificially carbonated wine. Effervescent wine artificially charged 
with carbon dioxide and containing more than 0.392 grams of carbon 
dioxide per 100 milliliters.
    Bonded wine cellar. Premises established under the provisions of 
this part. For the purposes of this part a wine premises designated a 
bonded winery is also a bonded wine cellar.
    Bonded wine premises. Premises established under the provisions of 
this part on which operations in untaxpaid wine are authorized to be 
conducted.
    Bonded wine warehouse. Bonded warehouse facilities established under 
the provisions of this part on wine premises by a warehouse company or 
other person for the storage of wine and allied products for credit 
purposes.
    Bonded winery. Premises established under the provisions of this 
part on

[[Page 588]]

which wine production operations are conducted and other authorized 
operations may be conducted.
    Bottle. A container four liters or less in capacity, regardless of 
the material from which it is made, used to store wine or to remove wine 
from the wine premises.
    Bottler. A proprietor of wine premises established under the 
provisions of this part who fills wine into a bottle.
    Brix. The quantity of dissolved solids expressed as grams of sucrose 
in 100 grams of solution at 60 degrees F. (20 degrees C.) (Percent by 
weight of sugar).
    Bulk container. Any container larger than 60 liters.
    Business day. Any day, other than Saturday, Sunday, or a legal 
holiday. (The term ``legal holiday'' includes all holidays in the 
District of Columbia and statewide holidays in a particular State in 
which a claim, report, or return, as the case may be, is required to be 
filed, or the act is required to be performed.)
    Calendar quarter and quarterly. These terms refer to the three-month 
period ending on March 31, June 30, September 30, or December 31.
    Calendar year. The period which begins January 1 and ends on the 
following December 31.
    Case. Two or more bottles, or one or more containers larger than 
four liters, enclosed in a box or fastened together by some other 
method.
    Chaptalization (Brix adjustment). The addition of sugar or 
concentrated juice of the same kind of fruit to juice before or during 
fermentation to develop alcohol by fermentation.
    Cider. See definitions for hard cider and tax exempt cider. For a 
description of an additional product which may be called cider, see 
Sec.  4.21(e)(5) of this chapter.
    Concentrate plant. An establishment qualified under part 18 of this 
chapter for the production of volatile fruit-flavor concentrate.
    Container. A receptacle, regardless of the material from which it is 
made, used to store wine or to remove wine from wine premises. (Also see 
the definition of bulk container for containers larger than 60 liters).
    Director of the service center. A director of an internal revenue 
service center.
    Distilled spirits plant. An establishment qualified under part 19 of 
this chapter (excluding alcohol fuel plants) for producing, warehousing, 
or processing of distilled spirits (including denatured spirits), or 
manufacturing of articles.
    Distilling material. Any fermented or other alcoholic substance 
capable of, or intended for use in, the original distillation or other 
original processing of spirits.
    District director. A district director of internal revenue.
    Effervescent wine. A wine containing more than 0.392 grams of carbon 
dioxide per 100 milliliters.
    Electronic fund transfer (EFT). Any transfer of funds effected by a 
proprietor's financial institution, either directly or through a 
correspondent banking relationship, via the Federal Reserve 
Communications System (FRCS) or Fedwire to the Treasury Account at the 
Federal Reserve Bank.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return, claim, form, or other document or, where no form 
of declaration is prescribed, with the declaration: ``I declare under 
the penalties of perjury that this ---------- (insert type of document 
such as statement, report, certificate, application, claim, or other 
document), including the documents submitted in support thereof, has 
been examined by me and, to the best of my knowledge and belief, is 
true, correct, and complete.''
    Export or exportation. A severance of goods from the mass of things 
belonging to the United States with the intention of uniting them to the 
mass of things belonging to some foreign country and will include 
shipments to any possession of the United States. For the purposes of 
this part, shipments to the Commonwealth of Puerto Rico and to the 
territories of the Virgin Islands, American Samoa, and Guam will also be 
treated as exportations.

[[Page 589]]

    Fiduciary. A guardian, trustee, executor, receiver, administrator, 
conservator, or any person acting in any fiduciary capacity for any 
person.
    Financial institution. A bank or other financial institution, 
whether or not a member of the Federal Reserve System, which has access 
to the Federal Reserve Communications System (FRCS) or Fedwire. The 
``FRCS'' or ``Fedwire'' is a communications network that allows Federal 
Reserve System member financial institutions to effect a transfer of 
funds for their customers (or other financial institutions) to the 
Treasury account at the Federal Reserve Bank.
    Fold. The ratio of the volume of the fruit must or juice to the 
volume of the volatile fruit-flavor concentrate produced from the fruit 
must or juice; for example, one gallon of volatile fruit-flavor 
concentrate of 100-fold would be the product from 100 gallons of fruit 
must or juice.
    Foreign wine. Wine produced outside the United States.
    Formula wine. Special natural wine, agricultural wine, and other 
than standard wine (except for distilling material and vinegar stock) 
produced on bonded wine premises under an approved formula.
    Fruit wine. Wine made from the juice of sound, ripe fruit (other 
than grapes). Fruit wine also includes wine made from berries or wine 
made from a combination of grapes and other fruit (including berries).
    Gallon or wine gallon. A United States gallon of liquid measure 
equivalent to the volume of 231 cubic inches.
    Grams per liter. For the purposes of this part, the unit of measure 
equivalent to the ``parts per thousand'' unit of measure prescribed in 
the Internal Revenue Code of 1986, as amended.
    Grape wine. Wine made from the juice of sound, ripe grapes.
    Hard cider. Still wine derived primarily from apples or apple 
concentrate and water (apple juice, or the equivalent amount of 
concentrate reconstituted to the original brix of the juice prior to 
concentration, must represent more than 50 percent of the volume of the 
finished product) containing no other fruit product nor any artificial 
product which imparts a fruit flavor other than apple; containing at 
least one-half of 1 percent and less than 7 percent alcohol by volume; 
having the taste, aroma, and characteristics generally attributed to 
hard cider; and sold or offered for sale as hard cider.
    Heavy bodied blending wine. Wine made from fruit without added 
sugar, with or without added wine spirits, and conforming to the 
definition of natural wine in all respects except as to maximum total 
solids content.
    High-proof concentrate. A volatile fruit-flavor concentrate 
(essence) that has an alcohol content of more than 24 percent by volume 
and is unfit for beverage use (nonpotable) because of its natural 
constituents, i.e., without the addition of other substances.
    In bond. When used with respect to wine or spirits, ``in bond'' 
refers to wine or spirits possessed under bond to secure the payment of 
the taxes imposed by 26 U.S.C. Chapter 51, and on which such taxes have 
not been determined. The term includes any wine or spirits on the bonded 
wine premises or a distilled spirits plant, or in transit between bonded 
premises (including in the case of wine, bonded wine premises). 
Additionally, the term refers to wine withdrawn without payment of tax 
under 26 U.S.C. 5362 and to spirits withdrawn without payment of tax 
under 26 U.S.C. 5214 (a)(5) or (a)(13) with respect to which relief from 
liability has not yet occurred.
    Invert sugar syrup. A substantially colorless solution of invert 
sugar which has been prepared by recognized methods of inversion from 
pure dry sugar and contains not less than 60 percent sugar by weight (60 
degrees Brix).
    Juice. The unfermented juice (concentrated or unconcentrated) of 
grapes, other fruit (including berries) and authorized agricultural 
products exclusive of pulp, skins, or seeds.
    Kind. Kind means the class and type of wine prescribed in this part 
and in 27 CFR part 4.
    Lees. The settlings of wine.
    Liquid sugar. A substantially colorless refined sugar and water 
solution containing not less than the equivalent of 60 percent pure dry 
sugar by weight (60 degrees Brix).
    Liter. A metric unit of capacity equal to 1,000 cubic centimeters at 
20 degrees

[[Page 590]]

C. or 33.814 United States fluid ounces at 68 degrees F. of alcoholic 
beverage.
    Lot. Wine of the same type. When used with reference to a ``lot of 
wine bottled'', lot means the same type of wine bottled or packed on the 
same date into containers.
    Must. Unfermented juice or any mixture of juice, pulp, skins, and 
seeds prepared from grapes or other fruit (including berries).
    Natural wine. The product of the juice or must of sound, ripe grapes 
or other sound, ripe fruit (including berries) made with any cellar 
treatment authorized by subparts F and L of this part and containing not 
more than 21 percent by weight (21 degrees Brix dealcoholized wine) of 
total solids.
    Nonbeverage wine. Wine, or wine products made from wine, rendered 
unfit for beverage use in accordance with Sec.  24.215.
    Own production. When used with reference to wine in a bonded winery, 
the term means wine produced by fermentation in the same bonded winery, 
whether or not produced by a predecessor in interest at the bonded 
winery. The term includes wine produced by fermentation in bonded 
wineries owned or controlled by the same or affiliated persons or firms 
when located within the same State.
    Packer. A proprietor of wine premises established under the 
provisions of this part who fills wine into a container larger than four 
liters.
    Person. An individual, trust, estate, partnership, association, 
company, or corporation. When used in connection with penalties, 
seizures, and forfeitures, the term includes an officer or employee of a 
corporation or a member or employee of a partnership, who as an officer, 
employee or member, is under a duty to perform the act in respect of 
which the violation occurs.
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A United States gallon of liquid at 60 degrees 
Fahrenheit which contains 50 percent by volume of ethyl alcohol having a 
specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 
60 degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
    Proprietor. The person qualified under this part to operate a wine 
premises, and includes the term ``winemaker'' when the context so 
requires.
    Pure dry sugar. Refined sugar 95 percent or more by weight dry, 
having a dextrose equivalent of not less than 95 percent on a dry basis, 
and produced from cane, beets, or fruit, or from grain or other sources 
of starch.
    Reconditioning. The conduct of operations, after original bottling 
or packing, to restore wine to a merchantable condition. The term 
includes relabeling or recasing operations.
    Same kind of fruit. In the case of grapes, all of the species and 
varieties of grapes. In the case of fruits other than grapes, this term 
includes all of the several species and varieties of any given kind; 
except that this will not preclude a more precise identification of the 
composition of the product for the purpose of its designation.
    Secretary. The Secretary of the Treasury or the Secretary's 
designated delegate.
    Sparkling wine or champagne. An effervescent wine containing more 
than 0.392 gram of carbon dioxide per 100 milliliters of wine resulting 
solely from the secondary fermentation of the wine within a closed 
container.
    Special natural wine. A product produced from a base of natural wine 
(including heavy bodied blending wine) to which natural flavorings are 
added, and made pursuant to an approved formula in accordance with 
subpart H of this part.
    Specially sweetened natural wine. A product made with a base of 
natural wine and having a total solids content in excess of 17 percent 
by weight (17 degrees Brix dealcoholized wine) and an alcohol content of 
not more than 14 percent by volume.
    Spirits. That substance known as ethyl alcohol, ethanol, or spirits 
of wine in any form (including all dilutions or mixtures thereof, from 
whatever source or by whatever process produced), but not denatured 
spirits unless specifically stated.
    Standard wine. Natural wine, specially sweetened natural wine, 
special

[[Page 591]]

natural wine, and standard agricultural wine, produced in accordance 
with subparts F, H, and I of this part.
    Still wine. Wine containing not more than 0.392 gram of carbon 
dioxide per 100 milliliters.
    Sugar. Pure dry sugar, liquid sugar, and invert sugar syrup.
    Sweetening. The addition of juice, concentrated juice or sugar to 
wine after the completion of fermentation and before taxpayment.
    Tax exempt cider. Cider produced in accordance with Sec.  24.76
    Tax year. The period from July 1 of one calendar year through June 
30 of the following year.
    Taxpaid wine. Wine on which the tax imposed by law has been 
determined, regardless of whether the tax has actually been paid or the 
payment of tax has been deferred.
    Taxpaid wine bottling house. Premises established under the 
provisions of this part primarily for bottling or packing taxpaid wine.
    Taxpaid wine premises. Premises established under the provisions of 
this part on which taxpaid wine operations other than bottling are 
authorized to be conducted.
    This chapter. Title 27, Code of Federal Regulations, chapter I (27 
CFR chapter I).
    Total solids. The degrees Brix of unfermented juice or dealcoholized 
wine.
    Treasury Account. The Department of Treasury's General Account at 
the Federal Reserve Bank of New York.
    U.S.C. The United States Code.
    United States wine. Wine produced on bonded wine premises in the 
United States.
    Unmerchantable wine. Wine which has been taxpaid, removed from 
bonded wine premises, and subsequently returned to a bonded wine 
premises under the provisions of Sec.  24.295 for the purpose of 
reconditioning, reformulation or destruction.
    Vinegar. A wine or wine product not for beverage use produced in 
accordance with the provisions of this part and having not less than 4.0 
grams (4.0 percent) of volatile acidity (calculated as acetic acid and 
exclusive of sulfur dioxide) per 100 milliliters of wine.
    Volatile fruit-flavor concentrate. Any concentrate produced by any 
process which includes evaporations from any fruit mash or juice.
    Wine. When used without qualification, the term includes every kind 
(class and type) of product produced on bonded wine premises from 
grapes, other fruit (including berries), or other suitable agricultural 
products and containing not more than 24 percent of alcohol by volume. 
The term includes all imitation, other than standard, or artificial wine 
and compounds sold as wine. A wine product containing less than one-half 
of one percent alcohol by volume is not taxable as wine when removed 
from the bonded wine premises.
    Wine premises. Premises established under the provisions of this 
part on which wine operations or other operations are authorized to be 
conducted.
    Wine spirits. Brandy or wine spirits authorized under 26 U.S.C. 5373 
for use in wine production.

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31077, July 9, 1991; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; 
T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-41, 71 FR 5602, Feb. 
2, 2006; T.D. TTB-44, 71 FR 16938, Apr. 4, 2006]



          Subpart C_Administrative and Miscellaneous Provisions

                               Authorities



Sec.  24.19  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.24, Delegation of the Administrator's 
Authorities in 27 CFR Part 24, Wine. You may obtain a copy of this order 
by accessing the TTB Web site (http://www.ttb.gov) or by mailing a 
request to the Alcohol and Tobacco Tax and Trade Bureau, National 
Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16938, Apr. 4, 2006]



Sec.  24.20  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information

[[Page 592]]

called for in each form will be furnished as indicated by the headings 
on the form and the instructions on or pertaining to the form and as 
required by this part. The form will be filed in accordance with the 
instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. 372, 61 FR 
20724, May 8, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-
44, 71 FR 16938, Apr. 4, 2006]



Sec.  24.21  Modified forms.

    (a) General. The appropriate TTB officer may approve the use of a 
modified form in lieu of the prescribed form required by this part, when 
in the judgment of the appropriate TTB officer:
    (1) Good cause has been shown for the use of the modified form and
    (2) The use of the modified form will not result in a net increase 
in cost to the Government or hinder the effective administration of this 
part.

Except to adapt tax returns for use with data processing equipment, no 
proposal for modification of a prescribed form relating to 
qualification, to the giving of any bond, or to the assessment, payment, 
or collection of tax will be approved under this section.
    (b) Application. The proprietor who desires to modify a prescribed 
form shall submit a written application to the appropriate TTB officer. 
The application will state the reasons a modified form is necessary and 
be accompanied by a copy of the proposed form with typical entries.
    (c) Conditions. A modified form may not be used until the 
application has been approved by the appropriate TTB officer. 
Authorization for the use of a modified form is conditioned on 
compliance with the procedures, conditions, and limitations specified in 
the approval of the application. The use of a modified form does not 
relieve the proprietor from any requirement of this part. Authority for 
use of a modified form may be withdrawn whenever in the judgment of the 
appropriate TTB officer the effective administration of this part is 
hindered by the continuation of the authority. (Sec. 201, Pub. L. 85-
859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555))

(Approved by the Office of Management and Budget under control number 
1512-0292)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.22  Alternate method or procedure.

    (a) General. The proprietor, on specific approval of the appropriate 
TTB officer as provided in this section, may use an alternate method or 
procedure in lieu of a method or procedure specifically prescribed in 
this part. As used in this section, an alternate method or procedure 
also includes alternate construction or equipment. No alternate method 
or procedure relating to the giving of any bond or to the assessment, 
payment, or collection of tax, will be authorized under this section. 
The appropriate TTB officer may approve an alternate method or 
procedure, subject to stated conditions, when in the judgment of the 
appropriate TTB officer:
    (1) Good cause has been shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure, and affords equivalent security to the revenue; and
    (3) The alternate method or procedure will not be contrary to any 
provision of law, will not result in an increase in cost to the 
Government, and will not hinder the effective administration of this 
part.
    (b) Application. The proprietor who desires to employ an alternate 
method or procedure shall submit a written application to the 
appropriate TTB officer. The application will specifically describe the 
proposed alternate method or procedure, and will set forth the reasons 
therefor. Alternate methods or procedures will not be employed until the 
application is approved by the appropriate TTB officer.
    (c) Conditions. The proprietor shall, during the period of 
authorization for

[[Page 593]]

an alternate method or procedure, comply with the terms of the approved 
application. Authorization for any alternate method or procedure may be 
withdrawn whenever in the judgment of the appropriate TTB officer the 
revenue is jeopardized or the effective administration of this part is 
hindered by the continuation of the authorization. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1395, as amended (26 U.S.C. 5556))

(Approved by the Office of Management and Budget under control number 
1512-0292)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13684, Mar. 22, 1999]



Sec.  24.25  Emergency variations from requirements.

    (a) General. The appropriate TTB officer may approve construction, 
equipment, and methods of operation other than as specified in this 
part, when in the judgment of such officer an emergency exists, the 
proposed variations from the specified requirements are necessary, and 
the proposed variations:
    (1) Will afford the security and protection to the revenue intended 
by the prescribed specifications;
    (2) Will not hinder the effective administration of this part; and
    (3) Will not be contrary to any provisions of law.
    (b) Application. The proprietor must submit a written application to 
the appropriate TTB officer within 24 hours of any temporary approval 
granted under paragraph (c) of this section, which describes the 
proposed variation, and sets forth the reasons therefor.
    (c) Temporary approval. The proprietor who desires to employ an 
emergency variation from requirements must contact the appropriate TTB 
officer and request temporary approval until the written application, 
required by paragraph (b) of this section, is acted upon. The 
appropriate TTB officer will be a subordinate of the TTB officer 
designated in paragraph (a) of this section. Where the emergency 
threatens life or property, the proprietor may take immediate action to 
correct the situation without prior notification; however, the 
proprietor must promptly contact the appropriate TTB officer and file 
with that officer a report concerning the emergency and the action taken 
to correct the situation.
    (d) Conditions. The proprietor must, during the period of variation 
from requirements granted under this section, comply with the terms of 
the approved application. A failure to comply in good faith with any 
procedures, conditions, and limitations will automatically terminate the 
authority for a variation. Upon termination of the variation, the 
proprietor must fully comply with requirements of regulations for which 
the variation was authorized. Authority for any variation may be 
withdrawn whenever in the judgment of the appropriate TTB officer the 
revenue is jeopardized or the effective administration of this part is 
hindered by the continuation of the variation.

[T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]



Sec.  24.26  Authority to approve.

    The appropriate TTB officer is authorized to approve, except as 
otherwise provided in this part, all applications, bonds, consents of 
surety, qualifying documents, claims, and any other documents required 
by or filed under this part, whether for original establishment, for 
changes subsequent to establishment, for discontinuance of business, for 
remission, abatement, credit, or refund of tax, or for any other 
purpose. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 
5351))

(Approved by the Office of Management and Budget under control number 
1512-0292)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.27  Segregation of operations.

    The appropriate TTB officer may require the proprietor to segregate 
operations within any wine premises established under this part, by 
partitions or otherwise, to the extent deemed necessary to prevent 
jeopardy to the revenue, to prevent confusion between operations, to 
prevent substitution with respect to the several methods of producing 
effervescent wine, and to prevent the commingling of standard wine with 
other than standard wine. (Sec.

[[Page 594]]

201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.28  Installation of meters, tanks, and other apparatus.

    The appropriate TTB officer may require the proprietor to install 
meters, tanks, pipes, or any other apparatus for the purpose of 
protecting the revenue. Any proprietor refusing or neglecting to install 
a required apparatus will not be permitted to conduct business. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.29  Claims.

    The appropriate TTB officer may require the proprietor or other 
person liable for the tax on wine or spirits to file a claim and to 
submit evidence of loss in any case where wine or spirits are lost or 
destroyed.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended 
(26 U.S.C. 5008, 5043, 5370))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.30  Supervision.

    The appropriate TTB officer may require that operations on wine 
premises be supervised by any number of appropriate TTB officers 
necessary for the protection of the revenue or for the enforcement of 26 
U.S.C. chapter 51 and applicable regulations. (Sec. 201, Pub. L. 85-859, 
72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5366, 5553))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13684, Mar. 22, 1999]



Sec.  24.31  Submission of forms and reports.

    The appropriate TTB officer may require the proprietor to submit to 
an appropriate TTB officer copies of prescribed transaction forms, 
records, reports, or source records used to prepare records, reports or 
tax returns. (Sec. 201, Pub. L. 85-859, 72 Stat. 1396, as amended (26 
U.S.C. 5555))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13684, Mar. 22, 1999]



Sec.  24.32  Records.

    The appropriate TTB officer may require the proprietor to maintain 
any record required by this part in a prescribed format or arrangement 
or otherwise change the method of recordkeeping in any case where the 
required information is not clearly or accurately reflected. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 
5367, 5555))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.35  Right of entry and examination.

    Under 26 U.S.C. 7601, 7602, and 7606, appropriate TTB officers have 
authority to inspect during normal business hours the records, stocks, 
and wine premises (including any portion designated as a bonded wine 
warehouse) of the proprietor to determine compliance with all provisions 
of the internal revenue laws and regulations. In addition, for the 
purposes prescribed in 27 CFR 70.22, appropriate TTB officers may 
examine financial records, books of account, and any other books, 
papers, records, and data relevant to an inquiry. Any denial or 
interference with any inspection by the proprietor, or by agents or 
employees of the proprietor, is a violation of 26 U.S.C. 7342 and may be 
subject to an appropriate penalty. (August 16, 1954, Ch. 736, 68A Stat. 
872, as amended, 901, as amended, 903, as amended (26 U.S.C. 5560, 7342, 
7601, 7602, 7606))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]

[[Page 595]]



Sec.  24.36  Instruments and measuring devices.

    All instruments and measuring devices required by this part to be 
furnished by the proprietor for the purpose of testing and measuring 
wine, spirits, volatile fruit-flavor concentrate, and materials will be 
maintained by the proprietor in accurate and readily usable condition. 
The appropriate TTB officer may disapprove the use of any equipment or 
means of measurement found to be unsuitable for the intended purpose, 
inaccurate, or not in accordance with regulations. In this case, the 
proprietor shall promptly provide suitable and accurate equipment or 
measuring devices. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 
1381, as amended (26 U.S.C. 5357, 5366, 5368, 5552))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]



Sec.  24.37  Samples for the United States.

    Appropriate TTB officers are authorized to take samples of wine, 
spirits, volatile fruit-flavor concentrate, or any other material which 
may be added to wine products, for analysis, testing, etc., free of tax 
to determine compliance with the provisions of law and regulation. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as amended, 1392, 
as amended, 1396, as amended (26 U.S.C. 5362, 5373, 5511, 7510))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]

                        Facilities and Assistance



Sec.  24.40  Gauging and measuring.

    Appropriate TTB officers may require the proprietor to furnish the 
necessary facilities and assistance to gauge or measure wine or spirits 
in any container or to examine any apparatus, equipment, container, or 
material on wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as 
amended, 1381, as amended, 1395, as amended, 1396, as amended (26 U.S.C. 
5357, 5366, 5368, 5555))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]



Sec.  24.41  Office facilities.

    The appropriate TTB officer may require the proprietor to furnish 
temporarily a suitable work area, desk and equipment necessary for the 
use of appropriate TTB officers in performing Government duties whether 
or not such office space is located at the specific premises where 
regulated operations occur or at corporate business offices where no 
regulated activity occurs. Such office facilities will be subject to 
approval by the appropriate TTB officer.

[T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]

                     Employer Identification Number



Sec.  24.45  Use on returns.

    The employer identification number (as defined at 26 CFR 301.7701-
12) of the taxpayer who has been assigned such a number will be shown on 
each return filed pursuant to the provisions of this part, including 
amended returns. Failure of the taxpayer to include the employer 
identification number on any return filed pursuant to the provisions of 
this part may result in the assertion and collection of the penalty 
prescribed in 27 CFR 70.113 of this chapter. (Pub. L. 87-397, 75 Stat. 
828, as amended (26 U.S.C. 6109, 6676))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-301, 55 
FR 47605, Nov. 14, 1990]



Sec.  24.46  Application.

    (a) An employer identification number will be assigned pursuant to 
application on Internal Revenue Service (IRS) Form SS-4 filed by the 
taxpayer. IRS Form SS-4 may be obtained from the director of the service 
center or from any district director.
    (b) An application on IRS Form SS-4 will be made by the taxpayer 
who, prior to filing the first return, has neither secured nor made 
application for an employer identification number. An application on IRS 
Form SS-4 will be filed on or before the seventh day after the date on 
which the first return is filed.

[[Page 596]]

    (c) Each taxpayer shall make application for and be assigned only 
one employer identification number, regardless of the number of places 
of business for which the taxpayer is required to file a tax return 
under the provisions of this part. (Pub. L. 87-397, 75 Stat. 828, as 
amended (26 U.S.C. 6109))

(Approved by the Office of Management and Budget under control number 
1512-0492)



Sec.  24.47  Execution of IRS Form SS-4.

    (a) Preparation. The application on IRS Form SS-4, together with any 
supplementary statement, will be prepared in accordance with the form 
instructions and applicable regulations. The application will be filed 
with the director of the internal revenue service center as instructed 
on the Form SS-4.
    (b) Signature. The application will be signed by:
    (1) The individual, if the taxpayer is an individual; or,
    (2) The president, vice president, other principal officer, or other 
person authorized to sign, if the taxpayer is a corporation; or,
    (3) A responsible and duly authorized member or officer having 
knowledge of its affairs, if the taxpayer is a partnership or other 
unincorporated organization; or,
    (4) The fiduciary, if the taxpayer is a trust or estate. (Pub. L. 
87-397, 75 Stat. 828, as amended (26 U.S.C. 6109))

(Approved by the Office of Management and Budget under control number 
1512-0492)

                      Special (Occupational) Taxes



Sec.  24.50  Payment of special (occupational) tax.

    (a) General. Except as otherwise provided in paragraph (c) of this 
section, every proprietor of a bonded wine premises or a taxpaid wine 
bottling house shall pay a special (occupational) tax at the rate 
specified by Sec.  24.51. The tax will be paid on or before the date of 
commencing business as a bonded wine premises or taxpaid wine bottling 
house, and thereafter every year on or before July 1. On commencing 
business, the tax will be computed from the first day of the month in 
which the liability is incurred, through the following June 30. 
Thereafter, the tax will be computed for the entire year (July 1 through 
June 30).
    (b) Each place of business taxable. Subject to paragraph (c) of this 
section, proprietors of a bonded wine premises or a taxpaid wine 
bottling house incur special (occupational) tax at each place of 
business in which an occupation subject to special (occupational) tax is 
conducted. A place of business means the entire office, plant or area of 
the business in any one location under the same proprietorship. 
Passageways, streets, highways, rail crossings, waterways, or partitions 
dividing the premises are not sufficient separation to require 
additional special (occupational) tax, if the divisions of the premises 
are otherwise contiguous. A proprietor of a bonded wine premises or a 
taxpaid wine bottling house does not incur additional special 
(occupational) tax liability for sales of wine made at a location other 
than on wine premises described in the application, TTB F 5120.25, if 
the location where the sales are made is contiguous to the bonded wine 
premises or the taxpaid wine bottling house in the manner described in 
this paragraph. (26 U.S.C. 5081, 5142, 5143)
    (c) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, the proprietor must register by filing the 
special tax return on Form 5630.5 during the suspension period even 
though the amount of tax due is zero. During the suspension period, as 
at other times, the special tax return is due on or before commencement 
of business and on or before July 1 of each year thereafter.

(26 U.S.C. 5081, 5142, 5143)

(Approved by the Office of Management and Budget under control numbers 
1513-0088 and 1513-0113)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-36, 70 
FR 62244, Oct. 31, 2005]



Sec.  24.51  Rates of special (occupational) tax.

    (a) General. Title 26 U.S.C. 5081(a) (2), (3), and (4) impose a 
special (occupational) tax of $1,000 per year on every proprietor of a 
bonded wine premises or

[[Page 597]]

a taxpaid wine bottling house. However, under 26 U.S.C. 5148(a), the tax 
rate is zero during the suspension period described in Sec.  24.50(c).
    (b) Reduced rate for small proprietors. Except during the suspension 
period described in Sec.  24.50(c) when the tax rate is zero, title 26 
U.S.C. 5081(b) provides for a reduced rate of $500 per year with respect 
to any proprietor of a bonded wine premises or a taxpaid wine bottling 
house whose gross receipts (for the most recent taxable year ending 
before the first day of the taxable period to which the special 
(occupational) tax imposed by Sec.  24.50 relates) are less than 
$500,000. The ``taxable year'' to be used for determining gross receipts 
is the taxpayer's income tax year. All gross receipts of the taxpayer 
will be included, not just the gross receipts of the business subject to 
special (occupational) tax. Proprietors of new businesses that have not 
yet begun a taxable year, as well as proprietors of existing businesses 
that have not yet ended a taxable year, who commence a new activity 
subject to special (occupational) tax, qualify for the reduced special 
(occupational) tax rate, unless the business is a member of a 
``controlled group''; in that case, the rules of paragraph (c) of this 
section apply.
    (c) Controlled group. All persons treated as one taxpayer under 26 
U.S.C. 5061(e)(3) shall be treated as one taxpayer for the purpose of 
determining gross receipts under paragraph (b) of this section. 
``Controlled group'' means a controlled group of corporations, as 
defined in 26 U.S.C. 1563 and implementing regulations in 26 CFR 1.1563-
1 through 1.1563-4, except that the words ``at least 80 percent'' is 
replaced by the words ``more than 50 percent'' in each place they appear 
in subsection (a) of 26 U.S.C. 1563, as well as in the implementing 
regulations. Also, the rules for a ``controlled group of corporations'' 
apply in similar fashion to groups which include partnerships and/or 
sole proprietorships. If one entity maintains more than 50% control over 
a group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of this section.
    (d) Short taxable year. Gross receipts for any taxable year of less 
than 12 months will be annualized by multiplying the gross receipts for 
the short period by 12 and dividing the result by the number of months 
in the short period, as required by 26 U.S.C. 448(c)(3).
    (e) Returns and allowances. Gross receipts for any taxable year will 
be reduced by returns and allowances made during such year under 26 
U.S.C. 448(c)(3). (26 U.S.C. 448, 5061, 5081)

(Approved by the Office of Management and Budget under control numbers 
1512-0472 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-36, 70 
FR 62244, Oct. 31, 2005]



Sec.  24.52  Exemption from special (occupational) tax.

    (a) General. The proprietor of a bonded wine premises or a taxpaid 
wine bottling house will not be required to pay special (occupational) 
tax or to register during the suspension period described in Sec.  
24.50(c), as a wholesale dealer or retail dealer on account of the sale, 
at the bonded wine premises or the taxpaid wine bottling house, or at 
the principal business office as designated in writing to the 
appropriate TTB officer, of wine which, at the time of sale, is stored 
at the bonded wine premises or taxpaid wine bottling house, or has been 
removed from the bonded wine premises to a taxpaid wine premises, the 
operations of which are integrated with the operations of the bonded 
wine premises and which is adjacent to or in the immediate vicinity of 
the bonded wine premises. The proprietor may not have more than one 
place of sale, as to each bonded wine premises or taxpaid wine bottling 
house, that will be exempt from special (occupational) tax or 
registration under this section.
    (b) Place of exemption. Unless the proprietor has claimed the 
exemption elsewhere, it will be presumed that the exemption is claimed 
at the bonded wine premises or taxpaid wine bottling house where the 
wine or spirits are stored. If exemption from payment of special 
(occupational) tax or from registration is to be claimed for sales at 
the principal business office rather

[[Page 598]]

than for sales at the bonded wine premises or taxpaid wine bottling 
house, the proprietor shall state such intention in the approved 
application or file a notice in letter form of this intention with the 
appropriate TTB officer. Where the exemption is claimed for a place 
other than the bonded wine premises or taxpaid wine bottling house, the 
special (occupational) tax will be paid or registration will be made 
during the suspension period described in Sec.  24.50(c), for any sales 
made at the bonded wine premises or taxpaid wine bottling house.
    (c) Exception. Where the proprietor of a bonded wine premises or a 
taxpaid wine bottling house has not paid special (occupational) tax or 
has not registered during the suspension period described in Sec.  
24.50(c), as a wholesale dealer and consummates sales of wine to another 
dealer at the purchaser's place of business through a delivery route 
sales personnel or otherwise, the proprietor of the bonded wine premises 
or taxpaid wine bottling house shall be required to pay special 
(occupational) tax or to register during that suspension period, as a 
wholesale dealer.
    (d) Wholesaler's special (occupational) tax. A wholesale dealer in 
liquors who has paid the appropriate special (occupational) tax or who 
has registered during the suspension period described in Sec.  24.50(c), 
as provided in part 31 of this chapter will not again be required to pay 
special (occupational) tax or register as a wholesale dealer because of 
sales of wine to wholesale or retail dealers in liquors, or to limited 
retail dealers, at the purchaser's place of business. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1340, as amended (26 U.S.C. 5111, 5113, 5142))

(Approved by the Office of Management and Budget under control numbers 
1512-0472 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13684, Mar. 22, 1999; T.D. TTB-25, 70 FR 19882, Apr. 15, 
2005; T.D. TTB-36, 70 FR 62244, Oct. 31, 2005]



Sec.  24.53  Special (occupational) tax returns.

    (a) General. Special (occupational) tax is paid by filing TTB F 
5630.5, Special Tax Registration and Return, with payment of tax, in 
accordance with the instructions on the form. During the suspension 
period described in Sec.  24.50(c), an annual return is required even 
though no tax is due.
    (b) Preparation of TTB F 5630.5. Unless correctly preprinted on a 
renewal form, all of the information called for on F 5630.5 shall be 
provided, including:
    (1) The true name of the taxpayer.
    (2) The trade name(s) (if any) of the business(es) subject to 
special (occupational) tax.
    (3) The employer identification number (see Sec.  24.45).
    (4) The exact location of the place of business, by name and number 
of building or street, or if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown will be the taxpayer's 
principal place of business (or principal office, in case of a corporate 
taxpayer).
    (5) The class(es) of special (occupational) tax to which the 
taxpayer is subject or to which the return relates during the suspension 
period described in Sec.  24.50(c).
    (6) Ownership and control information: that is, the name, position, 
and residence address of every owner of the business and of every person 
having power to control its management and policies with respect to the 
activity subject to special (occupational) tax. ``Owner of the 
business'' includes every partner, if the taxpayer is a partnership, and 
every person owning 10% or more of its stock, if the taxpayer is a 
corporation. However, the ownership and control information required by 
this paragraph need not be stated if the same information has been 
previously provided to TTB in connection with a permit application, and 
if the information previously provided is still current.
    (c) Multiple locations and/or classes of tax. A taxpayer subject to 
special (occupational) tax (or required to register during the 
suspension period described in Sec.  24.50(c))for the same period at 
more than one location or for more than one class of tax shall:
    (1) File one special (occupational) tax return, TTB F 5630.5, with 
payment of

[[Page 599]]

applicable tax, to cover all such locations and classes of tax; and
    (2) Unless correctly printed on a renewal form, prepare, in 
duplicate, a list identified with the taxpayer's name, address (as shown 
on TTB F 5630.5), employer identification number, and period covered by 
the return. The list will show, by States, the name, address, and tax 
class of each location for which special (occupational) tax is being 
paid or for which registration is being made during the suspension 
period described in Sec.  24.50(c). The original of the list will be 
filed with TTB in accordance with instructions on the return, and the 
copy will be retained at the taxpayer's principal place of business (or 
principal office, in case of a corporate taxpayer) for the period 
specified in Sec.  24.300(d).
    (d) Signing of TTB F 5630.5--(1) Ordinary returns. The return of an 
individual proprietor shall be signed by the individual. The return of a 
partnership shall be signed by a general partner. The return of a 
corporation shall be signed by any corporate officer. In each case, the 
person signing the return shall designate his or her capacity as 
``individual owner,'' ``member of firm,'' or, in the case of a 
corporation, the title of the officer.
    (2) Fiduciaries. Receivers, trustees, assignees, executors, 
administrators, and other legal representatives who continue the 
business of a bankrupt, insolvent, deceased person, etc., shall indicate 
the fiduciary capacity in which they act.
    (3) Agent or attorney-in-fact. If a return is signed by an agent or 
attorney-in-fact, the signature shall be preceded by the name of the 
principal and followed by the title of the agent or attorney-in-fact. A 
return signed by a person as agent will not be accepted unless there is 
filed, with the TTB office where the return is required to be filed, a 
power of attorney authorizing the agent to perform the act.
    (4) Perjury statement. TTB F 5630.5 will contain or be verified by a 
written declaration that the return has been executed under the 
penalties of perjury. (26 U.S.C. 5142, 6061, 6065, 6151, 7011)

(Approved by the Office of Management and Budget under control numbers 
1512-0472 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-36, 70 
FR 62244, Oct. 31, 2005]



Sec.  24.54  Special (occupational) tax stamps.

    (a) Issuance of special (occupational) tax stamps--(1) General. 
Except as otherwise provided in paragraph (a)(2) of this section, upon 
filing a properly executed return on Form 5630.5, together with the 
applicable full remittance, the taxpayer will be issued an appropriately 
designated special (occupational) tax stamp. If the return covers 
multiple locations, the taxpayer will be issued one appropriately 
designated stamp for each location listed on the attachment required by 
Sec.  24.53(c), but showing, as to name and address, only the name of 
the taxpayer and the address of the taxpayer's principal place of 
business (or principal office in case of a corporate taxpayer).
    (2) Exception for suspension period. During the suspension period 
described in Sec.  24.50(c) when registration is required but no tax is 
due, a special tax stamp will not be issued.
    (b) Distribution of special (occupational) tax stamps for multiple 
locations. On receipt of the special (occupational) tax stamps, the 
taxpayer shall verify that there is one stamp for each location listed 
on the attachment to TTB F 5630.5. Unless correctly printed on the 
renewal stamp, the taxpayer shall designate one stamp for each location 
and shall type or print on each stamp the address of the business 
conducted at the location for which that stamp is designated. The 
taxpayer shall then forward each stamp to the place of business 
designated on the stamp.
    (c) Examination of special (occupational) tax stamps. All stamps 
denoting payment of special (occupational) tax will be kept available 
for inspection by

[[Page 600]]

appropriate TTB officers, at the location for which designated, during 
business hours. (26 U.S.C. 5146, 6806)

(Approved by the Office of Management and Budget under control numbers 
1512-0472 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999; T.D. TTB-36, 70 FR 62244, Oct. 31, 2005]



Sec.  24.55  Changes in special (occupational) tax stamps.

    (a) Change in name. If there is a change in the corporate or firm 
name, or in the trade name, as shown on TTB F 5630.5, the proprietor 
shall file an amended special (occupational) tax return as soon as 
practicable after the change covering the new corporate or firm name, or 
trade name. No new special (occupational) tax is required to be paid. 
The proprietor shall attach the special (occupational) tax stamp for 
endorsement of the change in name, except if the change occurs during 
the suspension period described in Sec.  24.50(c).
    (b) Change in proprietorship--(1) General. If there is a change in 
the proprietorship of a bonded wine premises or taxpaid wine bottling 
house, the successor shall file a new special tax return, pay a new 
special (occupational) tax, and obtain the required special 
(occupational) tax stamps. However, if the change in proprietorship 
occurs during the suspension period described in Sec.  24.50(c) when no 
tax is due and no stamp is issued, only the filing of a new special tax 
return is required.
    (2) Exemption for certain successors. Persons having the right of 
succession provided for in paragraph (c) of this section may carry on 
the business for the remainder of the period for which the special 
(occupational) tax was paid (or for which registration was made during 
the suspension period described in Sec.  24.50(c)), without paying a new 
special (occupational) tax, if within 30 days after the date on which 
the successor begins to carry on the business, the successor files a 
special (occupational) tax return on Form 5630.5, which shows the basis 
of succession. Except during the suspension period described in Sec.  
24.50(c), a person who is a successor to a business for which special 
(occupational) tax has been paid and who fails to register the 
succession is liable for special (occupational) tax computed from the 
first day of the calendar month in which he or she began to carry on the 
business. During the suspension period, a failure to register the 
succession may result in a penalty under 26 U.S.C. 5603(b).
    (c) Persons having right of succession. Under the conditions 
indicated in paragraph (b)(2) of this section, the right of succession 
will pass to certain persons in the following cases:
    (1) Death. The widowed spouse or child, or executor, administrator, 
or other legal representative of the taxpayer;
    (2) Succession of spouse. A husband or wife succeeding to the 
business of his or her spouse (living);
    (3) Insolvency. A receiver or trustee in bankruptcy, or an assignee 
for benefit of creditors; and
    (4) Withdrawal from firm. The partner or partners remaining after 
death or withdrawal of a member;
    (d) Change in location. (1) Subject to paragraph (d)(2) of this 
section, if there is a change in location of a taxable place of 
business, the proprietor shall, within 30 days after the change, file an 
amended special (occupational) tax return covering the new location. The 
proprietor shall attach the special (occupational) tax stamp or stamps 
for endorsement of the change in location. No new special (occupational) 
tax is required to be paid. However, if the proprietor does not file the 
amended return within 30 days, the proprietor is required to file a new 
special (occupational) tax return, pay a new special (occupational) tax, 
and obtain a new special (occupational) tax stamp.
    (2) If the change in location occurs during the suspension period 
described in Sec.  24.50(c) when no tax is due and no special 
(occupational) tax stamp is issued, the requirements of paragraph (d)(1) 
of this section still apply, except with regard to attachment of a 
special (occupational) tax stamp and payment of a new special 
(occupational) tax. During the suspension period, a failure to comply 
with paragraph (d)(1) of this

[[Page 601]]

section may result in a penalty under 26 U.S.C. 5603(b).

(26 U.S.C. 5143, 7011)

(Approved by the Office of Management and Budget under control numbers 
1513-0088 and 1513-0113)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-36, 70 
FR 62244, Oct. 31, 2005]

                               Assessments



Sec.  24.60  General.

    Where the appropriate TTB officer determines by examination of 
records, inventories, or otherwise that the proprietor has incurred 
liability for the tax on wine, distilled spirits, or special 
(occupational) tax, and the proprietor does not pay the tax upon 
notification of the liability, the tax will be assessed. (August 16, 
1954, Ch. 736, 68A Stat. 767, as amended (26 U.S.C. 6201))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.61  Assessment of tax.

    When wine or spirits in bond are lost or destroyed (except wine or 
spirits on which the tax is not collectible by reason of the provisions 
of 26 U.S.C. 5008 or 26 U.S.C. 5370, as applicable) and the proprietor 
or other person liable for the tax on the wine or spirits fails to file 
a claim when required pursuant to Sec.  24.29 or when the claim is 
denied, the tax will be assessed. In any case where wine is produced, 
imported, or received otherwise than as authorized by law, or where wine 
or spirits are removed, possessed, or knowingly used in violation of 
applicable law, or volatile fruit-flavor concentrate is sold, 
transported, or used in violation of law, the tax will be assessed. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1323, as amended, 
1332, as amended, 1335, as amended, 1381, as amended, 1387, as amended, 
1392, as amended (26 U.S.C. 5001, 5008, 5043, 5061, 5370, 5391, 5512))

(Approved by the Office of Management and Budget under control number 
1512-0492)



Sec.  24.62  Notice.

    If an investigation or an examination of records discloses that 
liability for the tax on wine or distilled spirits, or special 
(occupational) tax has been incurred by the proprietor, the appropriate 
TTB officer will notify the proprietor by letter of the basis and the 
amount of the proposed assessment in order to afford the proprietor an 
opportunity to submit a protest, with supporting evidence, within 45 
days, or to request a conference with regard to the tax liability. 
However, if collection of the tax liability may be jeopardized by a 
delay, the appropriate TTB officer may take immediate jeopardy 
assessment action pursuant to 26 U.S.C. 6861. (Sec. 201, Pub. L. 85-859, 
72 Stat. 1323, as amended, 1381, as amended (26 U.S.C. 5008, 5370, 
6862))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]

                                 Claims



Sec.  24.65  Claims for wine or spirits lost or destroyed in bond.

    (a) Claim for remission of tax on spirits. All claims for remission 
of tax required by this part, relating to the loss or destruction of 
spirits in bond, will be filed with the appropriate TTB officer within 
30 days of discovery of the loss. A claim filed under this paragraph 
will set forth the following information:
    (1) The name, registry number, and location of the distilled spirits 
plant which produced the spirits;
    (2) The serial numbers of the containers from which the spirits were 
lost, the quantity lost from each, and the total quantity of spirits 
covered by the claim;
    (3) The total amount of tax for which claim is filed;
    (4) The date of the loss or destruction (or, if not known, the date 
of discovery);
    (5) The nature and cause (if known) of the loss will be stated 
specifically and in sufficient detail to disclose all material facts and 
circumstances surrounding the loss;

[[Page 602]]

    (6) If lost in transit, the name of the carrier and the points 
between which shipped; and
    (7) If lost by theft, evidence establishing that the loss did not 
occur as the result of negligence, connivance, collusion, or fraud on 
the part of the proprietor, owner, consignor, consignee, bailee or 
carrier, or the agents or employees of any of them.
    (b) Claim for allowance of loss on wine. A claim for allowance of 
loss required by this part, relating to the loss or destruction of wine 
in bond, will be filed with the appropriate TTB officer. A claim for 
allowance of loss for wine lost in transit, by fire or other casualty, 
or any other extraordinary or unusual losses, including a loss by theft, 
will be filed immediately. Any other claim for allowance of loss will be 
attached to and submitted with the TTB F 5120.17, Report of Bonded Wine 
Premises Operations, for the reporting period in which the inventory 
required by Sec.  24.313 is taken or, in the case of discontinuance of 
the premises or change in proprietorship, to the final report filed. A 
claim filed under this paragraph will set forth the information required 
by paragraphs (a)(5) to (a)(7) of this section and, in addition, will 
set forth the following information:
    (1) The original volume of wine which sustained the loss, the tax 
class, the quantity of wine lost, and the percentage of wine lost;
    (2) Where the claim covers losses sustained at bonded wine premises 
during the tax year, the claimant shall state:
    (i) The quantities of wine on hand at the beginning of the tax year, 
received in bond during the tax year, and produced during the tax year;
    (ii) Where the percentage of loss is calculated separately by tax 
class, the volume of wine by tax class; and
    (iii) If effervescent wine is produced, the volume of wine produced 
by fermentation in bottles, by artificial carbonation, and by bulk 
processing; and
    (3) Claims covering losses of wine during transit in bond will show 
the volume lost from each container, the serial number, if any, and the 
volume shipped.
    (c) Claim for abatement, credit or refund. A claim for an abatement 
of an assessment under Sec.  24.61, or credit or refund of tax which has 
been paid or determined, will be filed with the appropriate TTB officer 
in accordance with the provisions of this paragraph and the provisions 
of 27 CFR part 70, subpart F. A claim filed under this paragraph with 
respect to spirits, wine, or volatile fruit-flavor concentrate, will set 
forth the applicable information required by paragraphs (a) and (b) of 
this section. In addition, any claim filed under this paragraph will set 
forth the following information:
    (1) The date of the assessment for which abatement is claimed; and
    (2) The name, registry number, and address of the premises where the 
tax was assessed (or name, address, and title of any other person who 
was assessed the tax, if the tax was not assessed against the 
proprietor).
    (d) Indemnification or recompense. A claim filed under paragraph (a) 
or (b) of this section will specify whether the claimant has been or 
will be indemnified or recompensed for the spirits or wine lost and, if 
so, the amount and nature of indemnity or recompense and the actual 
value of the spirits or wine, less the tax.
    (e) Supporting documents. A claim filed under paragraph (a), (b), or 
(c) of this section will be supported by affidavits of persons having 
personal knowledge of the loss or destruction. In addition, if filed for 
tax on wine or spirits lost in transit, the claim will be supported by a 
copy of the carrier's bill of lading. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1323, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 
5008, 5370, 5373))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1991, as amended by T.D. ATF-338, 
58 FR 19063, Apr. 12, 1993; T.D. ATF-376, 61 FR 31030, June 19, 1996; 
T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]



Sec.  24.66  Claims on wine returned to bond.

    (a) General. A claim for credit or refund, or relief from liability, 
of tax on unmerchantable United States wine returned to bonded wine 
premises will be

[[Page 603]]

filed with the appropriate TTB officer within six months after the date 
of the return of the wine to bond. A single claim may not be filed under 
this section for a quantity on which credit or refund of tax would be in 
an amount less than $25. This limitation does not apply with respect to 
any returned wine on which the six month period for filing a claim will 
expire.
    (b) Filing. A claim filed under this section will set forth the 
following information:
    (1) The kind, volume, and tax class of the wine;
    (2) As to each tax class, the amount of tax previously paid or 
determined; and
    (3) The date the wine was returned to bond.
    (c) Indemnification or recompense. A claim filed under this section 
will specify whether the claimant has been or will be indemnified or 
recompensed for the wine returned to bond and if so, the amount and 
nature of indemnity or recompense and the actual value of the wine, less 
the tax. (Sec. 201., Pub. L. 85-859, 72 Stat. 1332, as amended, 1380, as 
amended (26 U.S.C. 5044, 5361, 5371))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.67  Other claims.

    The requirements with respect to a claim for:
    (a) Remission of tax on wine withdrawn without payment of tax under 
the provisions of Sec.  24.292, and lost in transit to the port of 
export, vessel or aircraft, foreign-trade zone, customs bonded 
warehouse, or manufacturing bonded warehouse, as applicable, are 
contained in 27 CFR part 28.
    (b) Refund or credit of any tax imposed on wine or other liquors by 
26 U.S.C. chapter 51, part I, subchapter A, on the grounds that an 
amount of tax was assessed or collected erroneously, illegally, without 
authority, or in any manner wrongfully, or on the grounds that the 
amount was excessive, are contained in 27 CFR part 70 subpart F.
    (c) Payment of an amount equal to the internal revenue tax paid or 
determined and customs duties paid on wines or other liquors previously 
withdrawn, which are lost, rendered unmarketable, or condemned by a duly 
authorized official as a result of
    (1) A major disaster,
    (2) Fire, flood, casualty, or other disaster, or
    (3) Breakage, destruction, or damage (excluding theft) resulting 
from vandalism or malicious mischief, are found in 27 CFR part 70, 
subpart G.

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-376, 
61 FR 31030, June 19, 1996; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]



Sec.  24.68  Insurance coverage.

    The remission, abatement, refund, credit, or other relief, of taxes 
on wine or spirits provided for under this part will be allowed only to 
the extent that the claimant is not indemnified or recompensed for such 
tax by any valid claim of insurance or otherwise. (Sec. 201, Pub. L. 85-
859, 72 Stat. 1382, as amended (26 U.S.C. 5064, 5371))



Sec.  24.69  Filing of claims.

    (a) Claims. All claims filed under this part for abatement, refund, 
credit, or remission of tax will be filed on TTB F 5620.8 (2635). Each 
claim filed under this part will:
    (1) Show the name, address, and title of the claimant;
    (2) Be signed by the claimant or the duly authorized agent of the 
claimant; and
    (3) Be executed under the penalties of perjury.
    (b) Supporting documents. Forms, supporting statements, and any 
other documents required by this part to be submitted with a claim will 
be attached to the claim and be considered a part of the claim. The 
appropriate TTB officer may require the submission of additional 
evidence in support of any claim filed under this part. (Sec. 201, Pub. 
L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5064, 5370))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]

[[Page 604]]



Sec.  24.70  Claims for credit of tax.

    Claims for credit of tax, as provided in this part, may be filed 
after determination of the tax whether or not the tax has been paid. 
Where a claim for credit of tax is filed, the claimant shall, upon 
receipt of notification of allowance of credit from the appropriate TTB 
officer, make an adjusting entry on the next tax return (or returns) to 
the extent necessary to exhaust the credit. The claimant shall also make 
an explanatory statement on each tax return specifically identifying the 
notification of allowance of credit. The claimant may not anticipate 
allowance of a credit or make an adjusting entry in a tax return until 
TTB has acted on the claim. (Sec. 201, Pub. L. 85-859, 72 Stat. 1332, as 
amended, 1335, as amended, 1381, as amended, 1395, as amended (26 U.S.C. 
5043, 5044, 5061, 5370, 5555))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]

                             Tax Exempt Wine



Sec.  24.75  Wine for personal or family use.

    (a) General. Any adult may, without payment of tax, produce wine for 
personal or family use and not for sale.
    (b) Quantity. The aggregate amount of wine that may be produced 
exempt from tax with respect to any household may not exceed:
    (1) 200 gallons per calendar year for a household in which two or 
more adults reside, or
    (2) 100 gallons per calendar year if there is only one adult 
residing in the household.
    (c) Definition of an adult. For the purposes of this section, an 
adult is any individual who is 18 years of age or older. However, if the 
locality in which the household is located has established by law a 
greater minimum age at which wine may be sold to individuals, the term 
``adult'' will mean an individual who has attained that age.
    (d) Proprietors of bonded wine premises. Any adult, defined in Sec.  
24.75(c), who operates a bonded wine premises as an individual owner or 
in partnership with others, may produce wine and remove it from the 
bonded wine premises free of tax for personal or family use, subject to 
the limitations in Sec.  24.75(b).
    (e) Limitation. This exemption should not in any manner be construed 
as authorizing the production of wine in violation of applicable State 
or local law. Except as provided in Sec.  24.75(d), this exemption does 
not otherwise apply to partnerships, corporations, or associations.
    (f) Removal. Wine produced under this section may be removed from 
the premises where made for personal or family use including use at 
organized affairs, exhibitions or competitions, such as home winemaker's 
contests, tastings or judgings, but may not under any circumstances be 
sold or offered for sale. The proprietor of a bonded wine premises shall 
pay the tax on any wine removed for personal or family use in excess of 
the limitations provided in this section and shall also enter all 
quantities removed for personal or family use on TTB F 5120.17, Report 
of Bonded Wine Premises Operations. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1331, as amended (26 U.S.C. 5042))

(Approved by the Office of Management and Budget under control number 
1512-0216)

[T.D. ATF-299, 55 FR 24989, June 19, 1991, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993; T.D. ATF-344, 58 FR 40354, July 28, 1993]



Sec.  24.76  Tax exempt cider.

    Cider, when produced solely from the noneffervescent fermentation of 
apple juice without the use of any preservative method or material, and 
when produced at a place other than a bonded wine premises and sold or 
offered for sale as cider, and not as wine or as a substitute for wine, 
is not subject to the tax on wine, or to the provisions of this part. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042))



Sec.  24.77  Experimental wine.

    (a) General. Any scientific university, college of learning, or 
institution of scientific research may, without payment of tax, produce, 
receive, blend, treat, and store wine for experimental or research use, 
but not for consumption (other than organoleptic tests) or sale, and may 
receive wine spirits without payment of tax in quantities as

[[Page 605]]

may be necessary for the production of wine.
    (b) Qualification. An institution that wants to conduct experimental 
wine operations must apply in letter form to the appropriate TTB 
officer. The application will show the name and address of the 
institution, the nature, extent, and purpose of the operations to be 
conducted, describe the operations and equipment and the location at 
which operations will be conducted (including identification of the 
building or buildings, or portions thereof, to be used), and the 
security measures to be provided. If wine spirits are to be used, that 
fact will be stated together with the estimated annual requirements in 
proof gallons. A secure place of storage under lock will be provided for 
such spirits and will be described in the application. The applicant 
must, when required by the appropriate TTB officer, furnish as part of 
the application, additional information that may be necessary to 
determine whether the application should be approved. Operations may not 
begin until authorized by the appropriate TTB officer.
    (c) Procurement of spirits. Where the approved application provides 
for the use of wine spirits in experimental wine operations, such 
spirits may be procured to the extent stated in the approved qualifying 
application. However, an application will be filed with the appropriate 
TTB officer and authorization obtained for each wine spirits 
procurement.
    (d) Records. All approved qualifying documents and applications will 
be retained in the files of the institution and will be exhibited on 
request to appropriate TTB officers. No reports concerning wine or wine 
spirits need be filed unless required by appropriate TTB officer, but 
records appropriate to the experiments to be conducted and records 
documenting the disposition of the wine and wine spirits will be 
retained and will be made available for inspection by appropriate TTB 
officers. If wine spirits are used, the records will show the quantities 
of spirits received and used each day.
    (e) Discontinuance. When an institution discontinues experimental 
wine operations, all remaining wine or wine spirits will be disposed of 
either by destruction or shipment to premises authorized to receive wine 
or wine spirits. A letter application will be filed with the appropriate 
TTB officer and authorization obtained prior to the destruction or 
shipment of the wine or wine spirits. When the authorized destruction or 
shipment has been completed, a letter notification will be sent to the 
appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as 
amended (26 U.S.C. 5042))

(Approved by the Office of Management and Budget under control numbers 
1512-0292 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13684, Mar. 22, 1999]

                                Formulas



Sec.  24.80  General.

    The proprietor shall, before production, obtain approval of the 
formula and process by which special natural wine, agricultural wine, 
and other than standard wine (except distilling material or vinegar 
stock) are to be made. The formula must be prepared and filed on TTB F 
5120.29, Formula and Process for Wine, in accordance with the 
instructions on the form. A nonbeverage wine formula will show the 
intended use of the finished wine or wine product. Any formula approved 
under this section will remain in effect until revoked, superseded, or 
voluntarily surrendered. Except for research, development, and testing, 
no special natural wine, agricultural wine, or, if required to be 
covered by an approved formula, wine other than standard wine may be 
produced prior to approval by the appropriate TTB officer of a formula 
covering each ingredient and process (if the process requires approval) 
used in the production of the product. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1380, as amended, 1381, as amended, 1386, as amended, 1395, as 
amended (26 U.S.C. 5361, 5367, 5386, 5387, 5555))

(Approved by the Office of Management and Budget under control number 
1512-0059)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]

[[Page 606]]



Sec.  24.81  Filing of formulas.

    The proprietor shall on each formula filed designate all ingredients 
and, if required, describe each process used to produce the wine. The 
addition or elimination of ingredients, changes in quantities used, and 
changes in the process of production, or any other change in an approved 
formula, will require the filing of a new TTB F 5120.29. After a change 
in formula is approved, the original formula must be surrendered to the 
appropriate TTB officer. The proprietor shall serially number each 
formula, commencing with ``1'' and continuing thereafter in numerical 
sequence. Nonbeverage wine formulas will be prefixed with the symbol 
``NB.'' The appropriate TTB officer may at any time require the 
proprietor to file a statement of process in addition to that required 
by the TTB F 5120.29 or any other data to determine whether the formula 
should be approved or the approval continued. (Sec. 201, Pub. L. 85-859, 
72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555))

(Approved by the Office of Management and Budget under control number 
1512-0059)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]



Sec.  24.82  Samples.

    Except for vinegar and salted wine as defined in Sec.  24.215, the 
proprietor shall submit under separate cover at the time of filing any 
nonbeverage wine formula a 750 mL sample of the base wine used and a 750 
mL sample of the finished wine or wine product. The latter sample will 
be considered representative of the finished product. Any material 
change in the flavor or other characteristics of the finished product 
from that of the approved sample will require the filing of a new 
formula even though the ingredients may be the same. In addition, the 
appropriate TTB officer may, at any time, require the proprietor to 
submit samples of any wine or wine product made in accordance with an 
approved formula or of any materials used in production. (Sec. 201, Pub. 
L 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))

(Approved by the Office of Management and Budget under control number 
1512-0059)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]

                                Essences



Sec.  24.85  Essences.

    Essences or extracts (preparations of natural constituents extracted 
from fruit, herbs, berries, etc.) may be used in the production of any 
formula wine except agricultural wine. The essences may be produced on 
wine premises or elsewhere. Where an essence contains spirits, use of 
the essence may not increase the volume of the wine more than 10 percent 
nor its alcohol content more than four percent by volume. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))



Sec.  24.86  Essences produced on wine premises.

    Wine, taxpaid spirits, or spirits withdrawn tax-free may be used in 
the production of essences on wine premises. The description of the 
process for producing the essence may be included as part of a formula 
for the production of a formula wine or a separate formula may be filed 
on TTB F5120.29. If a separate formula is filed for the essence, the 
serial number of the formula by which it is produced will be shown in 
the TTB F 5120.29 covering the formula wine in which it is to be used. 
If an essence is to be made in quantities greater than required for 
individual lots of formula wine, and stored on the premises, a separate 
formula will be filed for the essence. Essences made on wine premises 
with wine spirits withdrawn free of tax pursuant to 26 U.S.C. 5214(a)(5) 
may only be used in the production of a formula wine, and may not be 
removed from the premises where made. Essences made on wine premises 
with the use of tax-free spirits withdrawn free of tax pursuant to 26 
U.S.C. 5214(a)(13) may only be used in the production of a nonbeverage 
wine or wine product and may not be removed from the premises where 
made. The TTB F 5120.29 for the production of an essence

[[Page 607]]

is filed in the same manner as for the production of formula wine and a 
sample of the essence produced will be at least four fluid ounces. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386))

(Approved by the Office of Management and Budget under control number 
1512-0059)



Sec.  24.87  Essences made elsewhere.

    Before an essence not made on wine premises may be used in the 
production of formula wine, the manufacturer of the essence shall obtain 
approval from the appropriate TTB officer. The request for approval will 
identify the essence by name or number and by the name of the 
manufacturer, and a sample of at least four fluid ounces of the essence 
will be submitted. However, a request for approval and submission of a 
sample is not required if the essence is made pursuant to approval of a 
formula on TTB F 5530.5, Formula and Process for Nonbeverage Product. 
Essences made under an approved formula on TTB F 5530.5 will be 
described on TTB F 5120.29 by showing the name of the manufacturer, the 
manufacturer's nonbeverage drawback formula number, and the date of 
approval by the appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1386, as amended (26 U.S.C. 5386))

(Approved by the Office of Management and Budget under control number 
1512-0059)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]

             Conveyance of Wine or Spirits on Wine Premises



Sec.  24.90  Taxpaid products.

    Taxpaid wine or other taxpaid products may be conveyed across bonded 
wine premises, but may neither be stored nor allowed to remain on bonded 
wine premises and will be kept separate from untaxpaid wine or spirits. 
However, upon payment or determination of the tax, bulk wine may remain 
on bonded wine premises until the close of the business day following 
the day the tax was paid or determined, respectively, or the bonded wine 
premises on which the tank is located may be alternated as taxpaid wine 
premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 
U.S.C. 5365))



Sec.  24.91  Conveyance of untaxpaid wine or spirits.

    Untaxpaid wine or spirits may be conveyed between different portions 
of the same bonded wine premises. Untaxpaid wine or spirits may also be 
conveyed by uninterrupted transportation over any public thoroughfare, 
or over a private roadway if the owner or lessee of the roadway agrees, 
in writing, to allow appropriate TTB officers access to the roadway to 
perform their official duty. The conveyance of wine or spirits as 
authorized in this section is subject to the following conditions:
    (a) The untaxpaid wine or spirits are not stored or allowed to 
remain on any premises other than bonded wine premises;
    (b) The untaxpaid wine or spirits are kept completely separate from 
taxpaid wine or spirits; and
    (c) A description of the means and route of conveyance and of the 
portions of the bonded wine premises between which wine or spirits will 
be conveyed, as well as a copy of any agreement furnished by the owner 
or lessee of a private roadway, have been submitted to and approved by 
the appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, 
as amended, 1381, as amended (26 U.S.C 5357, 5365))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13684, Mar. 22, 1999]



Sec.  24.92  Products in customs custody.

    Products in customs custody may be conveyed across bonded wine 
premises subject to the following conditions:
    (a) The products are not stored or allowed to remain on bonded wine 
premises beyond the close of the business day; and
    (b) The products in customs custody are kept separate from wine and 
spirits on bonded wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C 5357, 
5361, 5365))

[[Page 608]]

                                 Samples



Sec.  24.95  General.

    Wine or wine spirits may be withdrawn free of tax from a bonded wine 
premises for use by or for the account of the proprietor or the agents 
of the proprietor, for analysis or testing, organoleptically or 
otherwise. Wine or wine spirits may be used for testing purposes, and 
wine may be used for tasting or sampling on bonded wine premises free of 
tax. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as 
amended (26 U.S.C. 5362, 5372, 5373))



Sec.  24.96  Use off premises.

    The proprietor may remove samples of wine or wine spirits free of 
tax for analysis or testing purposes.
    (a) Size. The size of each sample may not be more than one liter for 
each lot of wine or wine spirits to be analyzed or tested unless the 
appropriate TTB officer authorizes a larger quantity.
    (b) Disposition of samples. Remnants or residues of samples 
remaining after analysis or testing, and which are not retained as 
specimens, will be destroyed or returned to bonded wine premises. Free 
of tax samples or residues may not be consumed or sold.
    (c) Records. The proprietor shall maintain records of all samples 
taken for analysis or testing, showing the size of each sample, the kind 
of wine or wine spirits, date of removal, and the name and address to 
where sent.
    (d) Labeling of samples. Each sample taken for analysis or testing 
will be labeled ``Sample for Analysis Only''. The label will show the 
name, address, and registry number of the bonded wine premises, date, 
and the kind of wine or wine spirits.
    (e) Limitation. The tax will be collected on any wine or wine 
spirits withdrawn under this section which are used or disposed of for 
purposes other than as authorized. When the quantity of wine or wine 
spirits withdrawn under this section exceeds the amount necessary for 
the purpose intended the tax will be collected on such excess. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1382, 
as amended (26 U.S.C. 5362, 5367, 5368, 5373))

(Approved by the Office of Management and Budget under control numbers 
1512-0298 and 1512-0503)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.97  Use on premises.

    (a) Analysis or testing. The proprietor may take samples of wine or 
wine spirits free of tax for analysis or testing on bonded wine 
premises. The proprietor shall maintain records showing the size, kind 
of wine or wine spirits, date, and disposition of each sample retained 
as a laboratory specimen. The label of each sample retained as a 
laboratory specimen will be marked ``Sample for Analysis Only'' and will 
show the kind of wine or wine spirits.
    (b) Tasting. The proprietor may take samples of wine free of tax for 
organoleptic tasting on bonded wine premises. If a room or area is set 
aside for public tasting purposes, a record will be maintained showing 
the date, quantity and kind of wine transferred to the room or area for 
tasting.
    (c) Limitation. The tax will be collected on any wine or wine 
spirits withdrawn under this section which are used or disposed of for 
purposes other than as authorized. When the quantity of wine or wine 
spirits withdrawn under this section exceeds the amount necessary for 
the purpose intended the tax will be collected on such excess. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5362, 5372))

(Approved by the Office of Management and Budget under control numbers 
1512-0298 and 1512-0503)



                 Subpart D_Establishment and Operations



Sec.  24.100  General.

    Each person desiring to conduct operations in wine production, as 
specified in Sec.  24.101(b), (other than the production of wine free of 
tax as provided in Sec. Sec.  24.75 through 24.77) shall, prior to 
commencing operations, establish wine premises, make application as 
provided in Sec.  24.105, file bond, and receive permission to operate 
wine premises as

[[Page 609]]

provided in this part. After approval, the wine premises will be 
designated a bonded winery, bonded wine cellar or taxpaid wine bottling 
house. As provided in Sec.  24.107, the designated bonded winery will be 
used if production operations are to be conducted. In addition, wine 
premises may be used, in accordance with the provisions of this part, 
for the conduct of certain other operations. (Sec. 201, Pub. L. 85-859, 
72 Stat. 1378, as amended (26 U.S.C. 5351, 5352))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]

                         Premises and Operations



Sec.  24.101  Bonded wine premises.

    (a) General. A person desiring to conduct operations involving 
untaxpaid wine, including the use of spirits in wine production, shall 
file an application and bond as provided in Sec.  24.105. Further, a 
warehouse company or other person may, upon obtaining the consent of the 
proprietor and the surety on the bond and upon filing an application, as 
provided in Sec.  24.108, and receiving approval, establish at the wine 
premises a bonded wine warehouse for the storage of wine and allied 
products for credit purposes.
    (b) Authorized operations. Except as provided in this part, no 
operation may be conducted on bonded wine premises other than those 
authorized. The following operations are authorized:
    (1) The receipt, production, blending, cellar treatment, storage, 
and bottling or packing of untaxpaid wine;
    (2) The use of wine spirits in beverage wine production and the use 
of spirits in nonbeverage wine production;
    (3) The receipt, preparation, use, or removal of fruit, concentrated 
or unconcentrated fruit juice, or other materials to be used in the 
production or cellar treatment of wine; and
    (4) The preparation, storage, or removal of commercial fruit 
products and by-products (including volatile fruit-flavor concentrate) 
not taxable as wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as 
amended, 1379, as amended, 1380, as amended (26 U.S.C. 5351, 5353, 
5361))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]



Sec.  24.102  Premises established for taxpaid wine operations.

    A person desiring to bottle or pack taxpaid United States or foreign 
wine shall file an application as provided in Sec.  24.105 to establish 
a taxpaid wine bottling house premises. A person desiring to conduct 
taxpaid United States or foreign wine operations, other than bottling or 
packing taxpaid wine, at bonded wine premises shall include in their 
application, as provided in Sec.  24.109, the establishment of taxpaid 
wine premises.
    (a) Taxpaid wine premises. Premises on which taxpaid United States 
or foreign wine may be received and stored, or blended with wine of the 
same kind and tax class, or reconditioned, and removed.
    (b) Taxpaid wine bottling house premises. Premises on which taxpaid 
United States or foreign wine may be received, stored, mixed with wine 
of the same kind, tax class and country of origin to facilitate 
handling, reconditioned, bottled or packed, and removed. (Sec. 201, Pub. 
L. 85-859, 72 Stat. 1378, as amended, 1381, as amended (26 U.S.C. 5352, 
5363))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.103  Other operations.

    Upon the specific approval of the appropriate TTB officer, other 
operations not provided for in this part may be conducted on wine 
premises. Authority to conduct other operations may be obtained by 
submitting an application to the appropriate TTB officer. The 
application must specifically describe the operation to be conducted and 
the wine premises and equipment to be used. An appropriate TTB officer 
may make any inquiry necessary to determine whether the conduct of other 
operations on wine premises would jeopardize the revenue, conflict with 
wine operations, or be contrary to law. Other operations

[[Page 610]]

authorized under this section will be conducted in accordance with the 
conditions, limitations, procedures, and terms stated in the approved 
application. Authority to conduct other operations may be withdrawn 
whenever the appropriate TTB officer determines the conduct of the other 
operations on wine premises jeopardizes the revenue, conflicts with wine 
operations, or is contrary to law.

[T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]

                               Application



Sec.  24.105  General.

    A person desiring to establish a bonded winery, bonded wine cellar 
or taxpaid wine bottling house shall file an application on TTB F 
5120.25, Application to Establish and Operate Wine Premises. Approval of 
TTB F 5120.25 will constitute authorization for the proprietor to 
operate. The premises may not be used for the conduct of operations 
under this part unless the proprietor has a valid approved application 
for the operations. The application will be executed under the penalties 
of perjury and all written statements, affidavits, and any document 
incorporated by reference will be considered a part of the application. 
In any instance where a bond is required to be given or a permit 
obtained to engage in an operation, the currently approved application 
will not be valid with respect to that operation if the bond or permit 
is no longer in effect. In this case, the proprietor shall again file an 
application and obtain approval before engaging in operations at the 
wine premises. A new application is not required when a strengthening 
bond is filed pursuant to Sec.  24.153 or a new bond or superseding bond 
is filed pursuant to Sec.  24.154. The appropriate TTB officer may 
require the filing of a new or an amended application in any instance 
where the currently approved application is inadequate or incorrect in 
any respect. (August 16, 1954, Ch. 736, 68A Stat. 749, as amended (26 
U.S.C. 6065); sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1392, 
as amended (26 U.S.C. 5356, 5511))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.106  Basic permit requirements.

    Any person intending to engage in the business of producing or 
blending wine or purchasing wine for resale at wholesale is required 
under the Federal Alcohol Administration Act, as amended (49 Stat. 978; 
27 U.S.C. 203) to obtain a basic permit. A State, a political 
subdivision of a State, or officers or employees of a State or political 
subdivision acting in their official capacity are exempted from this 
requirement. The issuance of a basic permit under the Act is governed by 
regulations in 27 CFR part 1. Where a basic permit is required to engage 
in an operation, an application for a basic permit will be filed at the 
time of filing an original or amended application on TTB F 5120.25. 
Operations requiring a basic permit may not be conducted until the basic 
permit application is approved. No Wine Producer's and Blender's Basic 
Permit or Wine Blender's Basic Permit is required for a bonded wine 
cellar established only for the purpose of storing untaxpaid wine even 
though an approved application, TTB F 5120.25, and bond are required. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13685, Mar. 22, 1999]



Sec.  24.107  Designation as a bonded winery.

    Bonded wine premises which will be used for the production of wine 
or for production processes involving the use of wine will be designated 
a bonded winery unless the proprietor applies for a bonded wine cellar 
designation. If the proprietor of a bonded wine premises designated as a 
bonded winery does not engage in wine production operations, the 
appropriate TTB officer may notify the proprietor that the designation 
of

[[Page 611]]

the premises is changed from a bonded winery to a bonded wine cellar. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.108  Bonded wine warehouse application.

    A warehouse company or other person desiring to establish a bonded 
wine warehouse on bonded wine premises for storing wine or allied 
products for credit purposes shall file an application, in letter form, 
with the appropriate TTB officer. The name and address of the applicant 
and of the bonded wine premises, and the approximate area and storage 
capacity (in gallons) of the bonded wine warehouse, will be stated in 
the application. The application will be accompanied by a signed 
statement from the proprietor of the bonded wine premises requesting the 
establishment of the warehouse, and the consent of the surety of the 
bond for the bonded wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1379, as amended (26 U.S.C. 5353))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.109  Data for application.

    The TTB F 5120.25 is prepared in accordance with the instructions on 
the form and will include the following, as applicable:
    (a) Serial number;
    (b) Name and principal business address of the applicant and the 
address of the wine premises if different from the business address;
    (c) Statement of the type of business organization and of each 
person having an interest in the business, supported by the items of 
information listed in Sec.  24.110;
    (d) Indicate whether the application is for the purpose of 
establishing a bonded winery, bonded wine cellar, or taxpaid wine 
bottling house. Also, indicate whether a taxpaid wine premises is to be 
established if the application is for a bonded winery or bonded wine 
cellar;
    (e) List of the offices, the incumbents of which are authorized by 
the articles of incorporation or the board of directors to act on behalf 
of the proprietor or to sign the applicant's name;
    (f) Description of the premises (see Sec.  24.111);
    (g) Trade names (see Sec.  24.112);
    (h) Description of spirits operations;
    (i) With respect to wine premises to which the application relates, 
a list of the applicant's basic permits and bonds (including those filed 
with the application) showing the name of the surety for each bond;
    (j) Description of volatile fruit-flavor concentrate operations (see 
Sec.  24.113); and
    (k) If other operations not specifically authorized by this part are 
to be conducted on wine premises, a description of the operations, a 
list of the premises, and a statement as to the relationship, if any, of 
the operation to wine operations on wine premises. If any of the 
information required by paragraph (c) of this section is on file with 
the appropriate TTB officer in connection with any other premises 
operated by the applicant, that information, if accurate and complete, 
may be incorporated by reference and made a part of the application. In 
this case, the name, address, and if any, registry number of the 
premises where the information is filed will be stated in the 
application. The applicant shall, when required by the appropriate TTB 
officer, furnish as part of the application, additional information as 
may be necessary to determine whether the application should be 
approved. If any of the submitted information changes during the pending 
application, the applicant shall immediately notify the appropriate TTB 
officer of the revised information. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1379, as amended, 1392, as amended (26 U.S.C. 5356, 5361, 5511))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13685, Mar. 22, 1999]

[[Page 612]]



Sec.  24.110  Organizational documents.

    The supporting information required by paragraph (c) of Sec.  
24.109, includes, as applicable, copies of:
    (a) Corporate documents. (1) Corporate charter or a certificate of 
corporate existence or incorporation.
    (2) List of the directors and officers, showing their names and 
addresses.
    (3) Certified extracts or digests of minutes of meetings of the 
board of directors, authorizing certain individuals to sign for the 
corporation.
    (4) Statement showing the number of shares of each class of stock or 
other evidence of ownership, authorized and outstanding, and the voting 
rights of the respective owners or holders of stock.
    (b) Articles of partnership. True copies of the articles of 
partnership, if any, and of the certificate of partnership or 
association.
    (c) Statement of interest. (1) Names and addresses of the 10 persons 
having the largest ownership or other interest in each of the classes of 
stock in the corporation, or other legal entity, and the nature and 
amount of the stockholding or other interest of each, whether the 
interest appears in the name of the interested party or in the name of 
another party. If a corporation is wholly-owned or controlled by another 
corporation, those persons of the parent corporation who meet the above 
standards are considered to be the persons interested in the business of 
the subsidiary, and the names thereof need to be furnished only upon the 
request of the appropriate TTB officer.
    (2) In the case of an individual owner or partnership, the name and 
address of each person interested in the wine premises, whether the 
interest appears in the name of the interested party or in the name of 
another for that person.
    (d) Availability of additional corporate documents. The originals of 
documents required to be submitted under this section and additional 
documents that may be required by the appropriate TTB officer (such as 
articles of incorporation, bylaws, and any certificate issued by a State 
authorizing operations) must be made available to any appropriate TTB 
officer upon request. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as 
amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13685, Mar. 22, 1999]



Sec.  24.111  Description of premises.

    The application will include a description of each tract of land 
comprising wine premises. The description will be by directions and 
distances, in feet and inches (or hundredths of feet), with sufficient 
particularity to enable ready determination of the bounds of the wine 
premises. When required by the appropriate TTB officer, a diagram of the 
wine premises, drawn to scale, will be furnished. The description will 
clearly indicate any area of the wine premises to be used as bonded wine 
premises, used as taxpaid wine premises, or alternated for use as bonded 
wine premises and taxpaid wine premises. The means employed to afford 
security and protect the revenue will be described. If required by the 
appropriate TTB officer to segregate operations within the premises, the 
manner by which the operations are segregated will be described. Each 
building on wine premises will be described as to size, construction, 
and use. Buildings on wine premises which will not be used for wine 
operations will be described only as to size and use. If the wine 
premises consist of a part of a building, the rooms or floors will be 
separately described. The activities conducted in the adjoining portions 
of the building and the means of ingress and egress from the wine 
premises will be described. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as 
amended, 1381, as amended (26 U.S.C. 5356, 5357, 5365))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.112  Name of proprietor and trade names.

    The applicant shall list on the application, TTB F 5120.25, the 
proprietor's name or the operating trade name, if different than the 
proprietor's name,

[[Page 613]]

and any bottling or packing trade names. However, if a bottling or 
packing trade name is listed on a basic permit issued to the proprietor 
under the Federal Alcohol Administration Act (49 Stat 978; 27 U.S.C. 
204), that trade name is not required to be listed again on the 
application. If State or local law requires the registration of a trade 
name, the applicant shall certify that each trade name listed on the 
application is so registered. A trade name may not be used prior to 
approval of the application or issuance of a basic permit covering the 
use of the name. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended 
(26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.113  Description of volatile fruit-flavor concentrate operations.

    Each applicant intending to produce volatile fruit-flavor 
concentrate shall include on the TTB F 5120.25 application a step-by-
step description of the production procedure to be employed. The 
description will commence with the obtaining of juice from the fruit and 
continue through each step of the process to removal of volatile fruit-
flavor concentrate from the system. If volatile fruit-flavor concentrate 
containing more than 24 percent alcohol (high-proof concentrates 
(essences)) is to be produced, the proprietor shall indicate any step in 
the production procedure at which any spirits may be fit for beverage 
purposes. The maximum quantity in gallons of fruit most used and 
volatile fruit-flavor concentrate produced in 24 hours, the maximum and 
minimum fold, and the maximum percent of alcohol in the volatile fruit-
flavor concentrate will be stated for each kind of fruit used. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1392, 
as amended (26 U.S.C. 5356, 5361, 5511))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.114  Registry of stills.

    Any still intended for use in the production of volatile fruit-
flavor concentrate will be set up on bonded wine premises. Each still is 
subject to the provisions of subpart C of part 29 of this chapter and 
will be registered. The listing of a still in the application, and the 
approval of the application, will, as provided in 27 CFR 29.55, 
constitute registration. (Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as 
amended, 1379, as amended, 1392, as amended (26 U.S.C. 5179, 5356, 
5511))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13685, Mar. 22, 1999; T.D. ATF-462, 66 FR 42737, Aug. 15, 2001]



Sec.  24.115  Registry number.

    Upon approval of the application, the appropriate TTB officer will 
assign a registry number to the bonded winery, bonded wine cellar, or 
taxpaid wine bottling house. The registry number will be used in all 
correspondence and on all documents filed subsequently in connection 
with the operation of the premises and will be shown where required on 
labels and markings of containers or cases filled at the wine premises.

(Approved by the Office of Management and Budget under control numbers 
1512-0058 and 1512-0503)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.116  Powers of attorney.

    The proprietor shall file with the appropriate TTB officer a power 
of attorney for each person authorized to sign or to act on behalf of 
the proprietor as an attorney-in-fact. A power of attorney is not 
required for any person whose authority has been furnished in the 
application. If not limited in duration, the power of attorney will 
continue in effect until written notice of revocation is received by the 
appropriate TTB officer or operations are terminated.

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13685, Mar. 22, 1999]

[[Page 614]]



Sec.  24.117  Maintenance of application file.

    The proprietor shall maintain an application file with the 
information required by Sec.  24.109 in complete and current condition, 
readily available at the wine premises for inspection by appropriate TTB 
officers. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 
U.S.C. 5356, 5367))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]

              Changes Subsequent to Original Establishment



Sec.  24.120  Amended application.

    Where there is a change in any of the information included in the 
current approved application, the proprietor shall, within 30 days of 
the change (except as otherwise provided in this part), submit an 
amended application to the appropriate TTB officer and set forth the 
information necessary to make the application file accurate and current. 
Where the change affects only pages or parts of pages of the current 
application, as many complete pages as will enable the replacement of 
the pages affected and maintenance of the file as provided in Sec.  
24.117 will be submitted. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as 
amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.121  Changes affecting permits.

    The proprietor shall follow the provisions of 27 CFR part 1 to 
effect any change pertaining to a permit issued under the Federal 
Alcohol Administration Act. (49 Stat. 978; 27 U.S.C. 203).



Sec.  24.122  Change in name of proprietor or trade name.

    Where there is to be a change in the name of the proprietor or 
operating trade name, the proprietor shall file an amended application 
and, if a basic permit has been issued under the Federal Alcohol 
Administration Act (49 Stat. 978; 27 U.S.C. 203), an application for 
amendment of the basic permit. Where there is a change in or addition of 
a trade name, the proprietor shall file an amended application or, if a 
basic permit has been issued under the Federal Alcohol Administration 
Act (49 Stat. 978; 27 U.S.C. 203), an application for amendment of the 
basic permit. Operations under a new name may not be conducted before 
approval of the amended application or issuance of an amended permit, as 
the case may be. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended 
(26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.123  Change in stockholders.

    If there is a change in the list of stockholders furnished under the 
provisions of Sec.  24.110(c)(1), the proprietor may, in lieu of 
submission within 30 days of the change under the provisions of Sec.  
24.120, submit a new list of stockholders annually on May 1, or any 
other approved date, to the appropriate TTB officer which has on file 
the list of stockholders, provided the sale or transfer of capital stock 
does not result in a change in the control or management of the 
business. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 
U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.124  Change in corporate officers.

    Where there is any change in the list of corporate officers 
furnished under the provisions of Sec.  24.110(a)(2), the proprietor 
shall submit, within 30 days of the change, an amended application 
supported by a new list of corporate officers and a statement of the 
changes reflected in the new list. Where the proprietor has shown that 
certain corporate officers listed on the original application have no 
responsibilities in connection with the operations covered by the 
application, the appropriate TTB officer may waive the requirement for 
submitting an amended application to cover a change in those corporate 
officers. (Sec. 201, Pub. L. 85-859,

[[Page 615]]

72 Stat. 1379, as amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.125  Change in proprietorship.

    (a) General. If there is a change in the proprietorship of wine 
premises qualified to operate under this part, the outgoing proprietor 
shall comply with the requirements of Sec.  24.140, and the successor 
shall, before commencing operations, apply for and obtain any required 
permits, file any required bonds, and file an application for and 
receive permission to operate in the same manner as a person qualifying 
a new wine premises; however, the successor may, in the manner provided 
in Sec.  24.127, adopt the approved formulas of the outgoing proprietor. 
Wine, spirits, and winemaking materials may be transferred from an 
outgoing proprietor to a successor in the manner provided in Sec.  
24.140.
    (b) Fiduciary. A successor to the proprietorship of wine premises 
who is an administrator, executor, receiver, trustee, assignee, or other 
fiduciary shall, except as otherwise provided in this section, comply 
with the provisions of paragraph (a) of this section. However, in lieu 
of filing a new bond, if a bond is required, the fiduciary may furnish a 
consent of surety extending the terms of any bonds of the predecessor, 
and any pertinent information contained in the predecessor's application 
may be incorporated by reference. In addition, the fiduciary shall 
furnish a certified copy of the order of the court or other pertinent 
document showing the appointment as such fiduciary. The effective date 
of the qualifying documents filed by a fiduciary will be the effective 
date of the court order, or the date specified for the fiduciary to 
assume control. If the fiduciary was not appointed by a court, the date 
of assuming control will coincide with the effective date of the 
qualifying documents filed by the fiduciary.
    (c) Exception. A fiduciary intending to liquidate the business 
conducted on wine premises, i.e., disposition of any wine and spirits on 
hand, including use of any cellar treatment necessary to put the wine in 
merchantable condition, who does not intend to produce wine, or use 
spirits, or receive wine in bond may be exempted from qualifying as the 
proprietor of the wine premises upon filing with the appropriate TTB 
officer a statement to that effect, a copy of a foreclosure action, or a 
copy of the court order directing the liquidation of the business, and, 
if the wine premises is covered by a bond, a consent of surety wherein 
the surety and the fiduciary agree to remain liable on the bond. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]



Sec.  24.126  Change in proprietorship involving a bonded wine warehouse.

    Where a bonded wine warehouse has been established on wine premises 
and it is desired to continue the operation of the bonded wine warehouse 
subsequent to a change in the proprietorship of the bonded winery or 
bonded wine cellar, the proprietor of the bonded wine warehouse shall 
file a letter application, accompanied by an affirming statement from 
the new proprietor of the bonded winery or bonded wine cellar, 
requesting the continuation of the bonded wine warehouse and also file 
evidence of sufficient bond coverage. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1379, as amended (26 U.S.C. 5353))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.127  Adoption of formulas.

    The adoption of approved formulas by a successor proprietor will be 
in the form of an application, filed with the appropriate TTB officer. 
The application will list the formulas for adoption by formula number, 
name of product, and date of approval. The application will clearly show 
that the outgoing proprietor has authorized the successor

[[Page 616]]

proprietor's use of the approved formulas. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1379, as amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.128  Continuing partnerships.

    If, under the laws of the particular State, the partnership is not 
terminated upon the death or insolvency of a partner but continues until 
the dissolution of the partnership is completed, and the surviving 
partner has the exclusive right to the control and possession of the 
partnership assets for the purpose of liquidation and settlement, the 
surviving partner may continue to operate the wine premises under the 
prior qualification of the partnership, provided a consent of surety is 
filed wherein the surety and the surviving partner agree to remain 
liable on any bond covering the bonded wine premises. A surviving 
partner who acquires the business on completion of the dissolution of 
the partnership shall qualify from the date of acquisition, as provided 
in Sec.  24.125(a). The rule set forth in this section will also apply 
where there is more than one surviving partner. (Sec. 201, Pub. L. 85-
859, 72 Stat. 1379, as amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.129  Change in location.

    Where there is a change in the location of wine premises, the 
proprietor shall file an amended application and an application for 
amendment of the basic permit, if any, and if a bond has been filed, 
either a new bond or a consent of surety. Operation of wine premises may 
not be commenced at the new location prior to approval of the amended 
application and issuance of any amended permit. (Sec. 201, Pub. L. 85-
859, 72 Stat. 1379, as amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.130  Change in volatile fruit-flavor concentrate operations.

    If the proprietor desires to make any change in the process employed 
to produce volatile fruit-flavor concentrate and the change affects the 
accuracy of the description of process included in the application, the 
proprietor shall file an amended application to include the amended or 
new process. The new or changed process may not be used prior to 
approval of the amended application. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1379, as amended, 1392, as amended (26 U.S.C. 5356, 5511))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.131  Change in building construction and use of premises.

    Where a change is to be made to buildings located on wine premises, 
or in the use of any portion of the wine premises, which affects the 
accuracy of the application, the proprietor shall, before making such 
change in construction or use, submit a notice to the appropriate TTB 
officer. The notice will describe the proposed change in detail. The 
proprietor shall include the change covered by the notice in the next 
amended TTB F 5120.25 required to be filed, unless the appropriate TTB 
officer requires immediate amendment. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1379, as amended (26 U.S.C. 5356))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]

                               Alternation



Sec.  24.135  Wine premises alternation.

    (a) General. The proprietor of a bonded winery or bonded wine cellar 
may alternate all or a portion of wine premises for use as a taxpaid 
wine bottling house or use as taxpaid wine premises. The proprietor may 
also alternate the use of adjacent or contiguous premises qualified 
under 26 U.S.C. chapter 51 (distilled spirits plant, brewery, etc.) for 
use as wine premises or vice versa. If a proprietor of a bonded wine 
cellar or winery wishes to use all or a portion of

[[Page 617]]

such premises alternately as a volatile fruit-flavor concentrate plant 
or vice-a-versa, the proprietor must comply with the requirements of 
Sec. Sec.  18.40 through 18.43 of this title.
    (b) Qualifying documents. Where the proprietor desires to alternate 
bonded wine premises as taxpaid wine bottling house premises or taxpaid 
wine premises, or other premises qualified under 26 U.S.C. chapter 51, 
the following qualifying documents will be filed:
    (1) A statement on the application TTB F 5120.25 that an alternation 
of wine premises will occur;
    (2) Evidence of existing bond, consent of surety, or a new bond 
covering the alternation;
    (3) A description of how taxpaid wine or spirits, or untaxpaid wine 
or spirits will be identified and segregated; and
    (4) Any other document or additional information the appropriate TTB 
officer may require.
    (c) Alternation. After the necessary qualifying documents have been 
approved by the appropriate TTB officer, the proprietor may alternate 
wine premises as described in the application. Any portion of wine 
premises on which taxpaid wine is located will be considered taxpaid 
wine premises or taxpaid wine bottling house premises and any portion of 
the premises on which wine not identified as taxpaid is located will be 
considered bonded wine premises. The proprietor shall, prior to the 
initial alternation of the premises, identify by portable signs or tags, 
or by any other method or manner satisfactory to the appropriate TTB 
officer, either all taxpaid wine on taxpaid wine premises or taxpaid 
wine bottling house premises or all untaxpaid wine on bonded wine 
premises.
    (d) Segregation. The proprietor shall keep untaxpaid wine or spirits 
physically separated from taxpaid wine or spirits and on the designated 
premises. This separation will be by use of tanks, rooms, buildings, 
partitions, pallet stacks, or complete physical separation, or by any 
other method or manner which will clearly and readily distinguish 
untaxpaid wine or spirits from taxpaid wine or spirits and is 
satisfactory to the appropriate TTB officer. Where necessary for the 
protection of the revenue or enforcement of 26 U.S.C. chapter 51, the 
appropriate TTB officer may require that the portions of wine premises 
alternated under this section be separated by partitions or otherwise.
    (e) Conditions. Authority for the alternation of bonded wine 
premises, taxpaid wine bottling house premises, taxpaid wine premises, 
or other premises qualified under 26 U.S.C chapter 51 is conditioned on 
compliance by the proprietor with the provisions of this section. 
Authority for the alternation of bonded wine premises, taxpaid wine 
bottling house premises, taxpaid wine premises, or other premises 
qualified under 26 U.S.C. chapter 51 may be withdrawn whenever in the 
judgment of the appropriate TTB officer the revenue is jeopardized or 
the effective administration of this part is hindered by the 
continuation of the authorization.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 
1381, as amended (26 U.S.C. 5356, 5357, 5361, 5363, 5365, 5367))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13685, Mar. 22, 1999; T.D. ATF-455, 66 FR 29483, May 31, 
2001]



Sec.  24.136  Procedure for alternating proprietors.

    (a) General. Wine premises, or parts thereof, may be operated 
alternately by proprietors who have each filed and received approval of 
the necessary applications and bonds and have qualified under the 
provisions of this part. Where operations by alternating proprietors are 
limited to parts of the wine premises, the application will describe 
areas, buildings, floors, or rooms which will be alternated and will be 
accompanied by a diagram delineating the parts of the wine premises to 
be alternated. A separate diagram will be submitted to depict each 
arrangement under which the wine premises will be operated. Once the 
qualifying documents have been approved, and operations initiated, the 
wine premises, or parts thereof, may be alternated. Any transfer of 
wine, spirits, or other accountable materials from one proprietor to the 
other proprietor will be indicated in the records and reports of each 
proprietor. Operation of a bonded

[[Page 618]]

winery engaged in the production of wine by an alternate proprietor will 
be at least one calendar day in length.
    (b) Alternation. All operations in any area, building, floor, or 
room to be alternated will be completely finished and all wine, spirits, 
and other accountable materials will be removed from the alternated wine 
premises or transferred to the incoming proprietor. However, wine, 
spirits, and other accountable materials may be retained in locked tanks 
at wine premises to be alternated and remain in the custody of the 
outgoing proprietor.
    (c) Bonds. The outgoing proprietor who has filed bond and intends to 
resume operation of the alternated areas, buildings, floors, or rooms 
following suspension of operations by an alternating proprietor shall 
execute a consent of surety to continue in effect all bonds. Where wine, 
spirits, or other accountable materials subject to tax under 26 U.S.C. 
chapter 51 are to be retained in tanks on the wine premises to be 
alternated, the outgoing proprietor shall also execute a consent of 
surety to continue the liability of all bonds for the tax on the 
materials, notwithstanding the change in proprietorship.
    (d) Records. Each proprietor shall maintain separate records and 
submit a separate TTB F 5120.17, Report of Bonded Wine Premises 
Operations. All transfers of wine, spirits, and other accountable 
materials will be reflected in the records of each proprietor. Each 
proprietor shall maintain a record showing the name and registry number 
of the incoming or outgoing proprietor, the effective date and hour of 
alternation, and the quantity in gallons and the percent alcohol by 
volume or proof of any wine, spirits, or other accountable materials 
transferred or received. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as 
amended, 1379, as amended, 1380, as amended, 1381, as amended, 1382, as 
amended (26 U.S.C. 5351, 5352, 5354, 5356, 5361, 5362, 5363, 5367, 
5373))

(Approved by the Office of Management and Budget under control numbers 
1512-0058, 1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993]



Sec.  24.137  Alternate use of the wine premises for customs purposes.

    (a) General. The wine premises may be alternated as a Customs Bonded 
Warehouse under applicable customs laws and regulations, for the purpose 
of measuring, gauging, and bottling or packing wine. The use of the 
portion of the wine premises alternated as a Customs Bonded Warehouse is 
subject to the approval of the district director of customs and the 
appropriate TTB officer. When it is necessary to convey wine in customs 
custody across bonded wine premises, the proprietor shall comply with 
the provisions of Sec.  24.92.
    (b) Qualifying documents. Where the proprietor desires to alternate 
a portion of wine premises for customs use, the following qualifying 
documents will be filed:
    (1) TTB F 5120.25 to cover the alternation;
    (2) A diagram clearly depicting any area, building, floor, room or 
major equipment in use during the alternation; and
    (3) Any other documents or additional information the appropriate 
TTB officer may require.
    (c) Alternation. After approval of the qualifying documents by the 
appropriate TTB officer, the proprietor may alternate the wine premises. 
Portions of the wine premises to be excluded by curtailment or included 
by extension may not be used for purposes other than those authorized. 
Prior to the effective date and hour of the alternation, the proprietor 
shall remove all wine and spirits from the portion of the wine premises 
to be alternated for customs purposes. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C. 
5356, 5357, 5361, 5365, 5367))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-344, 
58 FR 40354, July 28, 1993; T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 
1999]

                 Permanent Discontinuance of Operations



Sec.  24.140  Notice.

    (a) General. Where all or part of the operations at a wine premises 
are to be

[[Page 619]]

permanently discontinued, the proprietor shall file with the appropriate 
TTB officer a notice in letter form to cover the discontinuance. The 
proprietor shall state in the notice the date on which operations will 
be discontinued and, if the wine premises are to be transferred to a 
successor proprietor, the name of the successor proprietor. Any basic 
permit issued to the proprietor under the Federal Alcohol Administration 
Act (49 Stat. 978; 27 U.S.C. 203) for the operation discontinued will be 
submitted to the appropriate TTB officer with a written request for 
cancellation.
    (b) Bonded wine premises. The proprietor shall certify in the 
notice, as applicable, that:
    (1) All wine, spirits, or volatile fruit-flavor concentrate have 
been lawfully removed from bonded wine premises, destroyed, or 
transferred to a successor as of the effective date of discontinuance,
    (2) No wine, spirits, or volatile fruit-flavor concentrate are in 
transit to bonded wine premises, and
    (3) All approved applications covering the transfer of spirits to 
bonded wine premises have been returned to the appropriate TTB officer.

The proprietor shall submit a report marked ``Final'' on the TTB F 
5120.17, Report of Bonded Wine Premises Operations. Any wine, spirits, 
or volatile fruit-flavor concentrate transferred to a successor will be 
identified as ``Transferred to successor'' on the report and identified 
as ``Received from predecessor'' on the initial report filed by the 
successor.
    (c) Taxpaid wine bottling house premises or Taxpaid wine premises. 
The proprietor shall certify in the notice that all taxpaid United 
States or foreign wine on hand have been disposed of, or if not yet 
disposed of, the manner of disposition and the time period in which the 
disposition will occur. The proprietor shall include taxpaid United 
States wine on the TTB F 5120.17 report marked ``Final.'' Any United 
States taxpaid wine transferred to a successor will be identified as 
``Transferred to successor'' on the report and identified as ``Received 
from predecessor'' on the initial report filed by the successor. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control numbers 
1512-0058 and 1512-0216)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]



Sec.  24.141  Bonded wine warehouse.

    Where all operations at a bonded wine warehouse are to be 
permanently discontinued, the warehouse proprietor shall file with the 
appropriate TTB officer a notice in letter form to cover the 
discontinuance. The warehouse proprietor shall state in the notice the 
name, registry number, and address of the wine premises on which the 
warehouse facilities are located and the date on which operations of the 
bonded wine warehouse will be discontinued. (Sec. 201, Pub. L. 85-859, 
72 Stat. 1379, as amended (26 U.S.C. 5353))

(Approved by the Office of Management and Budget under control number 
1512-0292)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]

                      Bonds and Consents of Surety



Sec.  24.145  General requirements.

    Each person required to file a bond or consent of surety under this 
part must prepare, execute and submit the bond or consent of surety on 
the prescribed form in accordance with this part and the instructions 
printed on the form. A person may not commence or continue any business 
or operation relating to wine until all bonds and consents of surety 
required under this part with respect to the business or operation have 
been approved by the appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 
72 Stat. 1394, as amended (26 U.S.C. 5551))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13685, Mar. 22, 1999]



Sec.  24.146  Bonds.

    (a) Wine bond. The proprietor shall give bond on TTB F 5120.36, Wine 
Bond, to cover the liability for excise taxes

[[Page 620]]

imposed by the Internal Revenue Code of 1986, on wines produced or 
received by the proprietor. This includes liability for special 
occupational taxes and penalties and interest. The bond will apply to 
wine, spirits, and volatile fruit-flavor concentrate, or other 
commodities subject to tax under 26 U.S.C. chapter 51, in transit to or 
on bonded wine premises, and to the operations of the bonded wine 
premises, whether the transaction or operation on which the proprietor's 
liability is based occurred on or off the proprietor's premises. The 
bond will provide that the proprietor shall faithfully comply with all 
provisions of law and regulation relating to activities covered by the 
bond. This bond has a tax obligation limit of $500 for wine removed from 
bonded wine premises on which the tax has been determined, but not paid, 
unless the total penal sum of the operations bond is $2,000 or more and 
the proprietor and the surety designate $1,000 of this amount as the 
obligation limit for wine on which the tax has been determined, but not 
paid.
    (b) Tax deferral bond. Where the proprietor removes wine from bonded 
wine premises for consumption or sale, after determination and before 
payment of tax, and the tax unpaid at any one time amounts to more than 
$500, the proprietor shall, in addition to any other bond required by 
this part, furnish a tax deferral bond on TTB F 5120.36, Wine Bond, to 
ensure payment of the tax on the wine. Under the conditions provided in 
paragraph (a) of this section, this amount may be changed to $1,000 by 
the terms of the bond or through a consent of surety between the 
proprietor and the surety. The tax deferral bond and the wine bond may 
be submitted on the same TTB F 5120.36.
    (c) Wine vinegar plant bond. The proprietor of a wine vinegar plant 
who withdraws wine from a bonded wine premises without payment of tax 
for use in the manufacture of vinegar shall file a bond on TTB F 5510.2, 
Bond Covering Removal to and Use of Wine at Vinegar Plant, to ensure the 
payment of the tax on the wine until such wine becomes vinegar. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 
U.S.C. 5354, 5362))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993]



Sec.  24.147  Operations bond or unit bond.

    Notwithstanding the provisions of Sec.  24.146, each person 
intending to commence or to continue business as the proprietor of a 
bonded wine premises with an adjacent or contiguous distilled spirits 
plant qualified under 27 CFR part 19 for the production of distilled 
spirits shall, in lieu of a winery bond and the bonds required under the 
provisions of 26 U.S.C. 5173, as amended, give an operations bond or 
unit bond in accordance with the applicable provisions of 27 CFR part 
19. (Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.148  Penal sums of bonds.

    The penal sums of bonds prescribed in this part are as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                Penal sum
                     Bond                                        Basis                 -------------------------
                                                                                          Minimum      Maximum
----------------------------------------------------------------------------------------------------------------
(a) Wine Bond, TTB F 5120.36..................  (1) Wine operations coverage. (i) Not        $1,000      $50,000
                                                 less than the tax on all wine or
                                                 spirits possessed, in transit, or
                                                 unaccounted for at any one time,
                                                 taking into account the appropriate
                                                 small producer wine tax credit.
                                                (ii) Where the liability exceeds        ...........      100,000
                                                 $250,000.

[[Page 621]]

 
                                                (2) Tax deferral coverage. Where the            500      250,000
                                                 unpaid tax amounts to more than $500,
                                                 not less than the amount of tax
                                                 which, at any one time, has been
                                                 determined but not paid. Exception:
                                                 $1,000 of the wine operations
                                                 coverage may be allocated to cover
                                                 the amount of tax which, at any one
                                                 time, has been determined but not
                                                 paid, if the total operations
                                                 coverage is $2,000 or more.
(b) Wine Vinegar Plant Bond, TTB F 5510.2.....  Not less than the tax on all wine on          1,000     100,000
                                                 hand, in transit, or unaccounted for
                                                 at any one time.
----------------------------------------------------------------------------------------------------------------
\*\ The proprietor of bonded wine premises who operates an adjacent or contiguous wine vinegar plant with a wine
  bond that does not cover the operation may file a consent of surety to extend the terms of the wine bond in
  lieu of filing a wine vinegar plant bond.


(26 U.S.C. 5354, 5362)

(Approved by the Office of Management and Budget under control number 
1513-0009)

[T.D. TTB-64, 72 FR 65454, Nov. 21, 2007]



Sec.  24.149  Corporate surety.

    (a) Surety bonds required by this part may be obtained only from 
corporate sureties which hold certificates of authority from and are 
subject to the limitations prescribed by the Secretary as set forth in 
the current revision of Treasury Department Circular No. 570 (Companies 
Holding Certificates of Authority as Acceptable Sureties on Federal 
bonds and as Acceptable Reinsuring Companies).
    (b) Treasury Department Circular No. 570 is published in the Federal 
Register yearly on the first working day in July. As revisions of the 
circular occur, the revisions are published in the Federal Register. 
Copies may be obtained from the Audit Staff, Financial Management 
Service, Department of the Treasury, Washington, DC 20226. (July 30, 
1947, Ch. 390, Pub. L. 80-280, 61 Stat. 648, as amended (6 U.S.C. 6, 7))



Sec.  24.150  Powers of attorney.

    Each bond, and each consent to changes in the terms of a bond, will 
be accompanied by a power of attorney whereby the surety authorizes the 
agent or officer who executed the bond or consent to act on behalf of 
the surety. The appropriate TTB officer may require additional evidence 
of the authority of the agent or officer of the surety to execute the 
bond or consent. The power of attorney will be prepared on a form 
provided by the surety and executed under the corporate seal of the 
surety. If the power of attorney is other than a manually signed 
original, the appropriate TTB officer may require a certification of 
validity. (July 30, 1947, Ch. 390, Pub. L. 80-280, 61 Stat. 648, as 
amended (26 U.S.C. 6, 7))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.151  Deposit of collateral security.

    (a) Bonds or notes of the United States, or other obligations which 
are unconditionally guaranteed as to both interest and principal by the 
United States, may be pledged and deposited as collateral security in 
lieu of corporate sureties in accordance with the provisions of Treasury 
Department Circular No. 154 (31 CFR part 225, Acceptance of Bonds, Notes 
or Other Obligations Issued or Guaranteed by the United States as 
Security in Lieu of Surety or Sureties on Penal Bonds). Cash, postal 
money orders, certified checks, cashiers' checks, or treasurers' checks 
may also be furnished as collateral security in lieu of corporate 
sureties.
    (b) Treasury Department Circular No. 154 is periodically revised and 
contains the provisions of 31 CFR part 225 and the forms prescribed in 
31 CFR part 225. Copies of the circular may be obtained from the Surety 
Bond Branch, Financial Management Service, Department of the Treasury, 
Washington, DC 20226. (July 30, 1947, Ch. 390, 61 Stat. 650 (6 U.S.C. 
15); August 16, 1954, Ch. 736, 68A Stat. 847, as amended (26 U.S.C. 
7101))

[[Page 622]]



Sec.  24.152  Consents of surety.

    Consents of surety to changes in the terms of bonds will be executed 
on Form 1533 by the principal and by the surety with the same formality 
and evidence of authority as is required for the execution of bonds.

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.153  Strengthening bonds.

    In any instance where the penal sum of the bond on file becomes 
insufficient, the principal shall either give a strengthening bond with 
the same surety to attain a sufficient penal sum or give a new bond 
covering the entire liability. Strengthening bonds will not be approved 
where any notation is made thereon which is intended, or which may be 
construed, as a release of any former bond, or as limiting the amount of 
either bond to less than its full penal sum. Strengthening bonds will 
show the current date of execution and the effective date. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.154  New or superseding bonds.

    When, in the opinion of the appropriate TTB officer, the interests 
of the Government demand it, or in any case where the validity of the 
bond becomes impaired in whole or in part for any reason, the principal 
will be required to give a new bond. A new bond will be required 
immediately in the case of the insolvency of a corporate surety. 
Executors, administrators, assignees, receivers, trustees, or other 
persons acting in a fiduciary capacity, to continue or to liquidate the 
business of the principal, will execute and file a new bond or obtain 
the consent of the surety or sureties on the existing bond or bonds. 
When under the provisions of Sec.  24.157 the surety has filed an 
application to be relieved of liability under any bond given under this 
part and the principal desires or intends to continue business or 
operations to which the bond relates, the principal shall file a valid 
superseding bond to be effective on or before the date specified in the 
surety's notice. New or superseding bonds will show the current date of 
execution and the effective date. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1379, as amended, 1380, as amended, 1394, as amended (26 U.S.C. 5354, 
5362, 5551))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.155  Disapproval and appeal from disapproval.

    (a) Disapproval. The appropriate TTB officer may disapprove any 
bonded wine premises bond or consent of surety if the individual, firm, 
partnership, corporation, or association giving the bond, or owning, 
controlling, or actively participating in the management of the bonded 
wine premises of the individual, firm, partnership, corporation, or 
association giving the bond, has been previously convicted in a court of 
competent jurisdiction of:
    (1) Any fraudulent noncompliance with any provision of any law of 
the United States, if such provision relates to internal revenue or 
customs taxation of distilled spirits, wine, or beer, or if such offense 
has been compromised with the person on payment of penalties or 
otherwise, or
    (2) Any felony under a law of any State, or of the District of 
Columbia, or of the United States, prohibiting the manufacture, sale, 
importation, or transportation of distilled spirits, wine, beer, or 
other intoxicating liquor.
    (b) Appeal from disapproval. Where a bond or consent of surety is 
disapproved by the appropriate TTB officer, the person giving the bond 
may appeal the disapproval to the Administrator. The decision of the 
Administrator will be final. (Sec. 201, Pub. L. 85-859, 72 Stat. 1394, 
as amended (26 U.S.C. 5551))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]

[[Page 623]]



Sec.  24.156  Termination of bonds.

    A bond prescribed in Sec.  24.146 may be terminated as to future 
liability pursuant to application by the surety as provided in Sec.  
24.157; pursuant to approval of a superseding bond; upon receipt of 
notification from the principal that the business has been discontinued 
and all wine and spirits have been removed from the bonded wine premises 
as provided in Sec.  24.140(b); or in the case of a tax deferral bond, 
the termination will be issued upon receipt of written notification from 
the principal that removals of wine requiring a tax deferral bond have 
been discontinued. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended 
(26 U.S.C. 5354))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.157  Application by surety for relief from bond.

    A surety on any bond required by this part may at any time, in 
writing, notify the principal and the appropriate TTB officer in whose 
office the bond is on file, that it desires after a specified date, to 
be relieved of liability under the bond. The date may not be less than 
10 days after the date notice is received by the appropriate TTB officer 
in the case of a tax deferral bond, and not less than 90 days after the 
date the notice is received in the case of a bonded wine premises bond 
or wine vinegar plant bond. The surety will also file with the 
appropriate TTB officer an acknowledgment, or other evidence of service, 
of a notice on the principal. The 10 day or 90 day period does not 
commence until both the acknowledgment or other evidence of service and 
the notice are filed. If a notice is not thereafter withdrawn in 
writing, the rights of the principal as supported by the bond will be 
terminated on the date specified in the notice, and the surety will be 
relieved from liability to the extent set forth in Sec.  24.158. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 
U.S.C. 5354, 5362))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.158  Extent of relief.

    (a) General. The surety on any bond required by this part who has 
filed a notice for relief from liability as provided in Sec.  24.157 
will be relieved from liability under bond as set forth in this section.
    (b) Wine bond. Where a new or superseding bond is filed, the surety 
of the existing bond will be relieved of future liability with respect 
to wine, spirits, volatile fruit-flavor concentrate, or any other 
commodities subject to tax under 26 U.S.C. chapter 51 on hand or in 
transit to bonded wine premises on or after the effective date of the 
new or superseding bond. Notwithstanding such relief, the surety will 
remain liable for the tax on all wine or volatile fruit-flavor 
concentrate produced at, and for wine, spirits, and volatile fruit-
flavor concentrate consigned to, the bonded wine premises, and for all 
other liabilities incurred, during the term of the bond. Where a new or 
superseding bond is not filed the surety will, in addition to the 
continuing liabilities specified above, remain liable for all wine, 
spirits, volatile fruit-flavor concentrate, or other commodities subject 
to tax under 26 U.S.C. chapter 51 on hand or in transit to bonded wine 
premises on the date specified in the notice, until all the wine, 
spirits, volatile fruit-flavor concentrate, or commodities subject to 
tax under 26 U.S.C. chapter 51 have been lawfully disposed of, or a new 
bond has been filed covering the liability.
    (c) Tax deferral bond. The surety will be relieved of liability for 
the tax on any wine removed from the bonded wine premises after the date 
specified in the notice. The surety will continue to be liable for the 
tax on wine removed for consumption or sale on or before the date 
specified in the notice, until all tax is fully paid.
    (d) Wine vinegar plant bond. The surety will be relieved of 
liability for tax on wine withdrawn for the manufacture of vinegar after 
the date specified in the notice. The surety will continue to be liable 
for the tax on wine withdrawn on or before the date specified in the 
notice, until all wine is fully accounted for. (Sec. 201, Pub. L. 85-
859, 72

[[Page 624]]

Stat. 1379, as amended, 1380, as amended (26 U.S.C. 5354, 5362))

(Approved by the Office of Management and Budget under control number 
1512-0058)



Sec.  24.159  Release of collateral security.

    Collateral security pledged and deposited will be released only in 
accordance with the provisions of 31 CFR part 225. The collateral 
security will not be released by the appropriate TTB officer until 
liability under the bond for which it was pledged has been terminated. 
If satisfied that the interests of the Government will not be 
jeopardized, the appropriate TTB officer will fix the date or dates on 
which a part or all of the collateral security may be released. At any 
time prior to the release of the collateral security, the appropriate 
TTB officer may, for proper cause, extend the date of release of the 
security for such additional length of time as deemed appropriate. (July 
30, 1947, Ch. 390, Pub. L. 80-280, 61 Stat. 650 (31 U.S.C. 9301, 9303))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



                  Subpart E_Construction and Equipment



Sec.  24.165  Premises.

    Wine premises will be located, constructed, and equipped, subject to 
approval by the appropriate TTB officer, in a manner suitable for the 
operations to be conducted and to afford adequate protection to the 
revenue. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as 
amended, 1380, as amended, 1381, as amended (26 U.S.C. 5351, 5352, 5357, 
5361, 5363))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.166  Buildings or rooms.

    All buildings or rooms on wine premises in which wine operations or 
other operations as are authorized in this part are conducted will be 
located, constructed, and equipped in a manner suitable for the intended 
purpose and to afford adequate protection to the revenue. Each building 
or room will be constructed of substantial materials and separated from 
adjacent or contiguous buildings, rooms, or designated areas in a manner 
satisfactory to the appropriate TTB officer. Where spirits are to be 
received and stored in packages, a storage room equipped for locking 
will be provided. The proprietor shall make provisions to assure TTB 
officers have ready ingress to and egress from any building or room on 
wine premises, and shall furnish at the request of the appropriate TTB 
officer evidence that the means of ingress and egress by TTB officers 
are assured. Where the appropriate TTB officer finds that any building 
or room on wine premises is located, constructed, or equipped as to 
afford inadequate protection to the revenue, the proprietor will be 
required to make changes in location, construction, or equipment to the 
extent necessary to afford adequate protection to the revenue. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended (26 
U.S.C. 5352, 5357))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.167  Tanks.

    (a) General. All tanks on wine premises used for wine operations or 
for other operations as are authorized in this part will be suitable for 
the intended purpose. Each tank used for wine operations will be 
located, constructed, and equipped as to permit ready examination and a 
means of accurately determining the contents. Any tank used for wine 
operations not enclosed within a building or room will be enclosed 
within a secure fence unless the premises where the tank is located are 
enclosed by a fence or wall, or all tank openings are equipped for 
locking and are locked when used for wine operations and there is no 
proprietor's representative on the wine premises, or the appropriate TTB 
officer has approved some other adequate means of revenue protection. 
All open tanks will be under a roof or other suitable covering.

[[Page 625]]

    (b) Other requirements. Each tank used for the taxpayment of wine, 
storage of spirits, or spirits additions will be constructed and 
equipped as follows:
    (1) An accurate means of measuring the contents of each tank will be 
provided by the proprietor. When a means of measuring is not a permanent 
fixture of the tank, the tank will be equipped with a fixed device to 
allow the approximate contents to be determined readily;
    (2) Safe access to all parts of a tank will be provided by the 
proprietor;
    (3) Tanks may not be used until they are accurately calibrated and a 
statement of certification of accurate calibration is on file at the 
premises;
    (4) If a tank or its means of measuring is changed as to location or 
position subsequent to original calibration, the tank may not be used 
until recalibrated; and
    (5) All openings in tanks used for the storage, weighing, or 
measuring of spirits, or for the addition of spirits to wine, will be 
equipped for locking or have a similar means of revenue protection. Any 
vents, flame arrestors, foam devices, or other safety devices affixed to 
a spirits tank will be constructed to prevent extraction of the contents 
of the tank. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, 
as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5552))

(Approved by the Office of Management and Budget under control number 
1512-0058)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31078, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]



Sec.  24.168  Identification of tanks.

    (a) General. Each tank, barrel, puncheon, or similar bulk container, 
used to ferment wine or used to process or store wine, spirits, or wine 
making materials will have the contents marked and will be marked as 
required by this section.
    (b) Tank markings. (1) Each tank will have a unique serial number;
    (2) Each tank will be marked to show its current use, either by 
permanent markings or by removable signs of durable material; and
    (3) If used to store wine made in accordance with a formula, the 
formula number will be marked or otherwise indicated on the tank.
    (c) Puncheon and barrel markings. Puncheons and barrels, or similar 
bulk containers over 100 gallons capacity, will be marked in the same 
manner as tanks. A permanent serial number need not be marked on 
puncheons and barrels, or similar bulk containers of less than 100 
gallons capacity, used for storage, but the capacity will be permanently 
marked. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as 
amended (26 U.S.C. 5352, 5357))

(Approved by the Office of Management and Budget under control number 
1512-0503)



Sec.  24.169  Pipelines.

    Pipelines, including flexible hoses, used to convey wine, spirits, 
or volatile fruit-flavor concentrate will be constructed, connected, 
arranged, and secured so as to afford adequate protection to the revenue 
and to permit ready examination. The appropriate TTB officer may approve 
pipelines which cannot be readily examined if no jeopardy to the revenue 
is created. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, 
as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5552))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.170  Measuring devices and testing instruments.

    (a) Measuring devices. The appropriate TTB officer may at any time 
require proprietors to provide at their own expense equipment for 
ascertaining the capacity and contents of tanks and other storage 
containers, and scales and measuring devices for weighing and measuring 
wine, spirits, volatile fruit-flavor concentrate, or materials received 
and used in the production or treatment of wine. Where winemaking 
materials or other materials used in the treatment of wine are used 
immediately upon receipt on wine premises, or received and stored on 
bonded wine premises in original sealed shipping containers with a 
stated capacity, the quantity shown on the commercial invoice or other 
document covering the shipment may be accepted by the proprietor and 
entered into records in lieu

[[Page 626]]

of measuring the materials upon receipt.
    (b) Testing instruments. The proprietor shall have ready access to 
equipment for determining the alcohol content unless the proprietor only 
receives and stores on wine premises bottled or packed wine with 
evidence showing the alcohol content has been determined. The proprietor 
who bottles or packs wine shall have ready access to equipment for 
determining the net contents of bottled or packed wine. The appropriate 
TTB officer may require other testing instruments based upon the 
proprietor's operations. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as 
amended, 1395, as amended (26 U.S.C. 5357, 5552))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



                      Subpart F_Production of Wine



Sec.  24.175  General.

    The kinds of wine which may be produced on bonded wine premises are 
as follows:
    (a) Natural wine produced in accordance with subparts F and G of 
this part;
    (b) Special natural wine produced in accordance with subpart H of 
this part;
    (c) Agricultural wine produced in accordance with subpart I of this 
part; and
    (d) Other than standard wine produced in accordance with subpart J 
of this part. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 
1383, as amended, 1384, as amended, 1385, as amended, 1386, as amended 
(26 U.S.C. 5361, 5382, 5384, 5385, 5386, 5387))



Sec.  24.176  Crushing and fermentation.

    (a) Natural wine production. Water may be used to flush equipment 
during the crushing process or to facilitate fermentation but the 
density of the juice may not be reduced below 22 degrees Brix. However, 
if the juice is already less than 23 degrees Brix, the use of water to 
flush equipment or facilitate fermentation is limited to a juice density 
reduction of no more than one degree Brix. At the start of fermentation 
no material may be added except water, sugar, concentrated fruit juice 
from the same kind of fruit, malo-lactic bacteria, yeast or yeast 
cultures grown in juice of the same kind of fruit, and yeast foods, 
sterilizing agents, precipitating agents or other approved fermentation 
adjuncts. Water may be used to rehydrate yeast to a maximum to two 
gallons of water for each pound of yeast; however, except for an 
operation involving the preparation of a yeast culture starter and must 
mixture for later use in initiating fermentation, the maximum volume 
increase of the juice after the addition of rehydrated yeast is limited 
to 0.5 percent. After fermentation natural wines may be blended with 
each other only if produced from the same kind of fruit.
    (b) Determination of wine produced. Upon completion of fermentation 
or removal from the fermenter, the volume of wine will be accurately 
determined, recorded and reported on TTB F 5120.17, Report of Bonded 
Wine Premises Operations, as wine produced. Any wine or juice remaining 
in fermentation tanks at the end of the reporting period will be 
recorded and reported on TTB F 5120.17.

[T.D. ATF-312, 56 FR 31078, July 9, 1990, as amended by ATF-338, 58 FR 
19064, Apr. 12, 1993]



Sec.  24.177  Chaptalization (Brix adjustment).

    In producing natural grape wine from juice having a low sugar 
content, pure dry sugar or concentrated grape juice may be added before 
or during fermentation to develop alcohol. In producing natural fruit 
wine from juice having a low sugar content, sugar, or concentrated juice 
of the same kind of fruit may be added before or during fermentation to 
develop alcohol. The quantity of sugar or concentrated juice added may 
not raise the original density of the juice above 25 degrees Brix. If 
grape juice or grape wine is ameliorated after chaptalization, the 
quantity of pure dry sugar added to juice for chaptalization will be 
included as ameliorating material. If fruit juice or fruit wine is 
ameliorated after chaptalization, pure dry sugar added under this 
section is not considered as

[[Page 627]]

ameliorating material. However, if fruit juice or fruit wine is 
ameliorated after chaptalization and liquid sugar or invert sugar syrup 
is used to chaptalize the fruit juice, the volume of water contained in 
the liquid sugar or invert sugar syrup will be included as ameliorating 
material. (Sec. 201, Pub. L. 85-859, 72 Stat. 1385, as amended (26 
U.S.C. 5382, 5384))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31078, July 9, 1991; T.D. ATF-413, 64 FR 46844, Aug. 27, 1999]



Sec.  24.178  Amelioration.

    (a) General. In producing natural wine from juice having a fixed 
acid level exceeding 5.0 grams per liter, the winemaker may adjust the 
fixed acid level by adding ameliorating material (water, sugar, or a 
combination of both) before, during and after fermentation. The fixed 
acid level of the juice is determined prior to fermentation and is 
calculated as tartaric acid for grapes, malic acid for apples, and 
citric acid for other fruit. Each 20 gallons of ameliorating material 
added to 1,000 gallons of juice or wine will reduce the fixed acid level 
of the juice or wine by 0.1 gram per liter (the fixed acid level of the 
juice or wine may not be less than 5.0 gram per liter after the addition 
of ameliorating material).
    (b) Limitations. (1) Amelioration is permitted only at the bonded 
wine premises where the natural wine is produced.
    (2) The ameliorating material added to juice or wine may not reduce 
the fixed acid level of the ameliorated juice or wine to less than 5.0 
grams per liter.
    (3) For all wine, except for wine described in paragraph (b)(4) of 
this section, the volume of ameliorating material added to juice or wine 
may not exceed 35 percent of the total volume of ameliorated juice or 
wine (calculated exclusive of pulp). Where the starting fixed acid level 
is or exceeds 7.69 grams per liter, a maximum of 538.4 gallons of 
ameliorating material may be added to each 1,000 gallons of wine or 
juice.
    (4) For wine produced from any fruit (excluding grapes) or berry 
with a natural fixed acid of 20 parts per thousand or more (before any 
correction of such fruit or berry), the volume of ameliorating material 
added to juice or wine may not exceed 60 percent of the total volume of 
ameliorated juice or wine (calculated exclusive of pulp). If the 
starting fixed acid level is or exceeds 12.5 grams per liter, a maximum 
of 1,500 gallons of ameliorating material may be added to each 1,000 
gallons of wine or juice. (26 U.S.C. 5383, 5384).

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-403, 
64 FR 50253, Sept. 16, 1999; T.D. ATF-458, 66 FR 37578, July 19, 2001]



Sec.  24.179  Sweetening.

    (a) General. In producing natural wine, sugar, juice or concentrated 
fruit juice of the same kind of fruit may be added after fermentation to 
sweeten wine. When juice or concentrated fruit juice is added, the 
solids content of the finished wine may not exceed 21 percent by weight. 
When liquid sugar or invert sugar syrup is used, the resulting volume 
may not exceed the volume which would result from the maximum use of 
pure dry sugar only.
    (b) Grape wine. Any natural grape wine of a winemaker's own 
production may have sugar added after amelioration and fermentation 
provided the finished wine does not exceed 17 percent total solids by 
weight if the alcohol content is more than 14 percent by volume or 21 
percent total solids by weight if the alcohol content is not more than 
14 percent by volume.
    (c) Fruit wine. Any natural fruit wine of a winemaker's own 
production may have sugar added after amelioration and fermentation 
provided the finished wine does not exceed 21 percent total solids by 
weight and the alcohol content is not more than 14 percent by volume.
    (d) Specially sweetened natural wine. Specially sweetened natural 
wine is produced by adding to natural wine of the winemaker's own 
production sufficient pure dry sugar, juice or concentrated fruit juice 
of the same kind of fruit, separately or in combination, so that the 
finished product has a total solids content between 17 percent and 35 
percent by weight, and an alcohol content of not more than 14 percent by 
volume. Natural wine containing added wine spirits may be used in the 
production of specially sweetened natural

[[Page 628]]

wine; however, wine spirits may not be added to specially sweetened 
natural wine. Specially sweetened natural wines may be blended with each 
other, or with natural wine or heavy bodied blending wine (including 
juice or concentrated fruit juice to which wine spirits have been 
added), in the further production of specially sweetened natural wine 
only if the wines (or juice) so blended are made from the same kind of 
fruit. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended, 1384, as 
amended, 1385, as amended, 1386, as amended (26 U.S.C. 5382, 5383, 5384, 
5385))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31078, July 9, 1991]



Sec.  24.180  Use of concentrated and unconcentrated fruit juice.

    Concentrated fruit juice reduced with water to its original density, 
or to 22 degrees Brix, or to any degree of Brix between its original 
density and 22 degrees Brix, and unconcentrated fruit juice reduced with 
water to not less than 22 degrees Brix, is considered juice for the 
purpose of standard wine production. Concentrated fruit juice reduced 
with water to any degree of Brix greater than 22 degrees Brix may be 
further reduced with water to any degree of Brix between its original 
density and 22 degrees Brix. The proprietor, prior to using concentrated 
fruit juice in wine production, shall obtain a statement in which the 
producer certifies the kind of fruit from which it was produced and the 
total solids content of the juice before and after concentration. 
Concentrated or unconcentrated fruit juice may be used in juice or wine 
made from the same kind of fruit for the purposes of chaptalizing or 
sweetening, as provided in this part. Concentrated fruit juice, or juice 
which has been concentrated and reconstituted, may not be used in 
standard wine production if at any time it was concentrated to more than 
80 degrees Brix. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended 
(26 U.S.C. 5382))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-413, 
64 FR 46845, Aug. 27, 1999]



Sec.  24.181  Use of sugar.

    Only sugar, as defined in Sec.  24.10, may be used in the production 
of standard wine. The quantity of sugar used will be determined either 
by measuring the increase in volume or by considering that each 13.5 
pounds of pure dry sugar results in a volumetric increase of one gallon. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended, 1384, as amended, 
1385, as amended, 1387, as amended (26 U.S.C. 5382, 5383, 5384, 5392))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31078, July 9, 1991]



Sec.  24.182  Use of acid to correct natural deficiencies.

    (a) General. Acids of the kinds occurring in grapes or other fruit 
(including berries) may be added within the limitations of Sec.  24.246 
to juice or wine in order to correct natural deficiencies; however, no 
acid may be added to juice or wine which is ameliorated to correct 
natural deficiencies except that in the production of grape wine, 
tartaric acid may be used to reduce the pH of the juice or wine. If 
tartaric acid is used to correct the pH of grape juice or wine, the 
fixed acid level of the juice shall be measured prior to the addition of 
any tartaric acid to determine the maximum quantity of ameliorating 
material allowed. In addition, when using tartaric acid to reduce the pH 
of ameliorated grape juice or wine, the pH cannot be reduced below 3.0.
    (b) Grape wine. Tartaric acid or malic acid, or a combination of 
tartaric acid and malic acid, may be added prior to or during 
fermentation, to grapes or juice from grapes. In addition, after 
fermentation is completed, citric acid, fumaric acid, malic acid, lactic 
acid or tartaric acid, or a combination of two or more of these acids, 
may be added to correct natural deficiencies. However, the use of these 
acids, either prior to, during or after fermentation, may not increase 
the fixed acid level of the finished wine (calculated as tartaric acid) 
above 9.0 grams per liter. In cases where the wine contains 8.0 or more 
grams of total solids per 100 milliliters of wine, acids may be added to 
the extent that the finished wine does not contain more than 11.0 grams 
per liter

[[Page 629]]

of fixed acid (calculated as tartaric acid).
    (c) Fruit wine. Only citric acid may be added to citrus fruit, juice 
or wine, only malic acid may be added to apples, apple juice or wine, 
and only citric acid or malic acid may be added to other fruit 
(including berries) or to juice or wine derived from other fruit 
(including berries) to correct natural deficiencies to 9.0 grams per 
liter of finished wine; however, if the wine contains 8.0 or more grams 
of total solids per 100 milliliters of wine, acids may be added to 
correct natural deficiencies to the extent that the finished wine does 
not contain more than 11.0 grams per liter of fixed acid (calculated as 
malic acid for apples and citric acid for other fruit (including 
berries).
    (d) Other use of acid. A winemaker desiring to use an acid other 
than the acids allowed in paragraphs (a) and (b) of this section to 
correct natural deficiencies shall follow the procedure prescribed in 
Sec.  24.250. A winemaker desiring to use acid to stabilize standard 
wine shall follow the requirements prescribed by Sec.  24.244. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31078, July 9, 1991; T.D. ATF-350, 58 FR 52230, Oct. 7, 1993]



Sec.  24.183  Use of distillates containing aldehydes.

    Distillates containing aldehydes may be received on wine premises 
for use in the fermentation of wine and then returned to the distilled 
spirits plant from which distillates were withdrawn as distilling 
material. Distillates produced from one kind of fruit may not be used in 
the fermentation of wine made from a different kind of fruit. 
Distillates containing aldehydes which are received at bonded wine 
premises and not immediately used will be placed in a locked room or 
tank on bonded wine premises. Distillates containing aldehydes may not 
be mingled with wine spirits. If the distillates contain less than 0.1 
percent of aldehydes, the proprietor shall comply with any additional 
condition relating to the receipt, storage, and use which the 
appropriate TTB officer may require to assure that the distillates are 
properly used and accounted for. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1381, as amended, 1382, as amended (26 U.S.C. 5367, 5373))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.184  Use of volatile fruit-flavor concentrate.

    (a) General. In the cellar treatment of natural wine of the 
winemaker's own production there may be added volatile fruit-flavor 
concentrate produced from the same kind of fruit or from the same 
variety of berry or grape so long as the proportion of volatile fruit-
flavor concentrate added to the wine does not exceed the equivalent 
proportion of volatile fruit-flavor concentrate of the original juice or 
must from which the wine was produced.
    (b) Use of juice or must from which volatile fruit-flavor has been 
removed. Juice, concentrated fruit juice, or must processed at a 
concentrate plant is considered to be pure juice, concentrated fruit 
juice, or must even though volatile fruit-flavor has been removed if, at 
a concentrate plant or at bonded wine premises, there is added to the 
juice, concentrated fruit juice, or must (or in the case of bonded wine 
premises, to wine of the winemaker's own production made therefrom), 
either the identical volatile fruit-flavor removed or an equivalent 
quantity of volatile fruit-flavor concentrate derived from the same kind 
of fruit or from the same variety of berry or grape.
    (c) Certificate required. The proprietor, prior to the use of 
volatile fruit flavor concentrate in wine production, shall obtain a 
certificate from the producer stating the kind of fruit or the variety 
of berry or grape from which it was produced and the total solids 
content of the juice before and after concentration. (Sec. 201. Pub. L. 
85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[[Page 630]]



                Subpart G_Production of Effervescent Wine



Sec.  24.190  General.

    Effervescent wine may be made on bonded wine premises. Where the 
effervescence results from fermentation of the wine within a closed 
container, the wine is classed and taxed as sparkling wine. The use of 
carbon dioxide, nitrogen gas, or a combination of both, is permitted to 
maintain counterpressure during the transfer and bottling of sparkling 
wine. Wine carbonated by injection of carbon dioxide is classed and 
taxed as artificially carbonated wine. Sparkling wine, artificially 
carbonated wine, and any wine used as a base in the production of 
sparkling wine or artificially carbonated wine, may not have an alcohol 
content in excess of 14 percent by volume. However, wine containing more 
than 14 percent of alcohol by volume may be used in preparing a dosage 
for finishing sparkling wine or artificially carbonated wine. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)).

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31078, July 9, 1991]



Sec.  24.191  Segregation of operations.

    Where more than one process of producing sparkling wine or 
artificially carbonated wine is used, the appropriate TTB officer may 
require the portion of the premises used for the production and storage 
of wine made by each process (bottle fermented, bulk fermented or 
artificially carbonated) to be segregated as provided by Sec.  24.27. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.192  Process and materials.

    In preparing still wine for the production of sparkling wine or 
artificially carbonated wine, sugar and acid of the kinds and within the 
limitations prescribed in Sec.  24.182 may be added with yeast or yeast 
culture to acclimate the yeast and to facilitate the process of 
secondary fermentation or to correct the wine. Fruit syrup, sugar, wine, 
wine spirits, and acid may be used in preparing a finishing dosage for 
sparkling wine or artificially carbonated wine provided the dosage does 
not exceed 10 percent by volume of the finished product. Where the 
proprietor desires to use more than 10 percent by volume finishing 
dosage, the proprietor shall file for a formula approval under Sec.  
24.80. The fruit syrup, wine spirits and wine used will come from the 
same kind of fruit as the wine from which the sparkling wine or 
artificially carbonated wine is made. In the production of sparkling 
wine or artificially carbonated wine, taxpaid wine spirits or wine 
spirits withdrawn tax-free may be used. Tax-free wine spirits may only 
be used in the production of sparkling wine or artificially carbonated 
wine which is a natural wine. In the refermentation and finishing of a 
sparkling wine, the acids and materials specifically authorized in Sec.  
24.246 may be used. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended 
(26 U.S.C. 5382))

(Approved by the Office of Management and Budget under control number 
1512-0059)



Sec.  24.193  Conversion into still wine.

    Sparkling wine or artificially carbonated wine may be dumped for use 
as still wine. The dumping process will allow the loss of carbon dioxide 
remaining in the wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as 
amended (26 U.S.C. 5041, 5361))



              Subpart H_Production of Special Natural Wine



Sec.  24.195  General.

    Special natural wine is a flavored wine made on bonded wine premises 
from a base of natural wine. The flavoring added may include natural 
herbs, spices, fruit juices, natural aromatics, natural essences or 
other natural flavoring, in quantities or proportions such that the 
resulting product derives character and flavor distinctive from the base 
wine and distinguishable from other natural wine. Fruit juices may not 
be used to give to one natural wine the flavor of another but may be 
used with herbs or spices to produce a

[[Page 631]]

wine having a distinctive flavor. Caramel and sugar may be used in a 
special natural wine. However, the minimum 60 degrees Brix limitations 
prescribed in the definition of ``Liquid pure sugar'' and ``Invert sugar 
syrup'' in Sec.  24.10 do not apply to materials used in the manufacture 
of vermouth. Finished vermouth will contain a minimum of 80 percent by 
volume natural wine. Heavy bodied blending wine and juice or 
concentrated fruit juice to which wine spirits have been added may be 
used in the production of special natural wine pursuant to formula 
approval. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 
U.S.C. 5386))

(Approved by the Office of Management and Budget under control number 
1512-0059)



Sec.  24.196  Formula required.

    Before producing any special natural wine, the proprietor shall 
receive approval of the formula by which it is to be made as provided by 
Sec.  24.80. Any change in a formula will be approved in advance as 
provided by Sec.  24.81. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as 
amended (26 U.S.C. 5386))

(Approved by the Office of Management and Budget under control number 
1512-0059)



Sec.  24.197  Production by fermentation.

    In producing special natural wine by fermentation, flavoring 
materials may be added before or during fermentation. Special natural 
wine produced by fermentation may be ameliorated in the same manner and 
to the same extent as natural wine made from the same fruit. Spirits may 
not be added to special natural wine with the exception of spirits 
contained in the natural wine used as a base or in authorized essences 
made on bonded wine premises as provided in Sec.  24.86 or in approved 
essences made elsewhere. Upon removal of the wine from fermenters, the 
volume of liquid will be determined accurately and recorded as wine 
produced. The quantity of liquid in fermenters at the close of each 
reporting period will be reported on the TTB F 5120.17, Report of Bonded 
Wine Premises Operations. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as 
amended (26 U.S.C. 5386))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by ATF-338, 58 FR 
19064, Apr. 12, 1993]



Sec.  24.198  Blending.

    Special natural wine may be blended with other special natural wine 
of the same class and kind, and with heavy bodied blending wine, or 
natural wine of the same kind of fruit, in the further production of 
special natural wine. The blending of special natural wines produced 
under different formulas requires the filing and approval of a formula 
authorizing a blending; however, where two or more formulas have been 
approved for the production of special natural wine of the same type, 
e.g., producing a sweet vermouth by blending sweet vermouths produced 
under two or more approved formulas, the submission and approval of an 
additional formula is not required. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1386, as amended (26 U.S.C. 5386))

(Approved by the Office of Management and Budget under control number 
1512-0059)



                Subpart I_Production of Agricultural Wine



Sec.  24.200  General.

    Agricultural wine may be produced on bonded wine premises from 
suitable agricultural products other than the juice of fruit. Water or 
sugar, or both, may be used within the limitations of this subpart in 
the production of agricultural wine. Agricultural wine may not be 
flavored or colored; however, hops may be used in the production of 
honey wine. Spirits may not be used in the production of the wine and a 
wine made from one agricultural product may not be blended with a wine 
made from another agricultural product. Agricultural wine made with 
sugar in excess of the limitations of this subpart is other than 
standard wine and will be segregated and clearly identified. Since 
grain, cereal, malt, or molasses are not suitable materials for the 
production of agricultural wine, these materials may

[[Page 632]]

not be received on bonded wine premises. Beverage alcohol products made 
with these materials are not classed as wine and may not be produced or 
stored on bonded wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1386, as amended (26 U.S.C. 5387))



Sec.  24.201  Formula required.

    Before producing any agricultural wine, the proprietor shall obtain 
an approval of the formula and process by which it is to be made 
pursuant to the provisions of Sec.  24.80. Any change in a formula will 
be approved in advance as provided by Sec.  24.81. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1386, as amended (26 U.S.C. 5387))

(Approved by the Office of Management and Budget under control number 
1512-0059)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13685, Mar. 22, 1999]



Sec.  24.202  Dried fruit.

    In the production of wine from dried fruit, a quantity of water 
sufficient to restore the moisture content to that of the fresh fruit 
may be added. If it is desired not to restore the moisture content of 
the dried fruit to that of the fresh fruit, or if the moisture content 
is not known, sufficient water may be added to reduce the density to 22 
degrees Brix. If the dried fruit liquid after restoration is found to be 
deficient in sugar, sufficient pure dry sugar may be added to increase 
the total solids content to 25 degrees Brix. After addition of water to 
the dried fruit, the resulting liquid may be ameliorated with either 
water or sugar, or both, in such total volume as may be necessary to 
reduce the natural fixed acid level of the mixture to a minimum of 5.0 
grams per liter; however, in no event may the volume of the ameliorating 
material exceed 35 percent of the total volume of the ameliorated juice 
or wine (calculated exclusive of pulp). Pure dry sugar may be used for 
sweetening. After complete fermentation or complete fermentation and 
sweetening, the finished product may not have a total solids content 
that exceeds 35 degrees Brix. (26 U.S.C. 5387)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-23, 70 
FR 2801, Jan. 18, 2005]



Sec.  24.203  Honey wine.

    (a) Subject to paragraph (b) of this section, a winemaker, in the 
production of wine from honey, may add the following:
    (1) Water to facilitate fermentation, provided the density of the 
honey and water mixture is not reduced below 13 degrees Brix;
    (2) Hops in quantities not to exceed one pound for each 1,000 pounds 
of honey; and
    (3) Pure, dry sugar or honey for sweetening. Sugar may be added only 
after fermentation is completed.
    (b) After complete fermentation or complete fermentation and 
sweetening, the wine may not have an alcohol content of more than 14 
percent by volume or a total solids content that exceeds 35 degrees 
Brix. (26 U.S.C. 5387)

[T.D. TTB-23, 70 FR 2801, Jan. 18, 2005]



Sec.  24.204  Other agricultural products.

    In the production of wine from agricultural products, other than 
dried fruit and honey, water and sugar may be added to the extent 
necessary to facilitate fermentation; Provided, That the total weight of 
pure dry sugar used for fermentation is less than the weight of the 
primary winemaking material and the density of the mixture prior to 
fermentation is not less than 22 degrees Brix, if water, or liquid 
sugar, or invert sugar syrup is used. Additional pure dry sugar may be 
used for sweetening, provided the alcohol content of the finished wine 
after complete fermentation or after complete fermentation and 
sweetening, is not more than 14 percent by volume and the total solids 
content is not more than 35 degrees Brix. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1386, as amended, 1387, as amended (26 U.S.C. 5387))

[[Page 633]]



            Subpart J_Production of Other Than Standard Wine



Sec.  24.210  Classes of wine other than standard wine.

    The following classes of wine are not standard wine:
    (a) High fermentation wine, produced as provided in Sec.  24.212;
    (b) Heavy bodied blending wine, produced as provided in Sec.  
24.213;
    (c) Spanish type blending sherry, produced as provided in Sec.  
24.214;
    (d) Wine products not for beverage use, produced as provided in 
Sec.  24.215;
    (e) Distilling material, produced as provided in Sec.  24.216;
    (f) Vinegar stock, produced as provided in Sec.  24.217; and
    (g) Wines other than those in classes listed in paragraphs (a), (b), 
(c), (d), (e), and (f), of this section produced as provided in Sec.  
24.218. (Sec. 201, Pub. L. 85-859, 72 Stat. 1387, as amended (26 U.S.C. 
5388))



Sec.  24.211  Formula required.

    The proprietor who desires to produce wine other than standard wine 
shall first obtain approval of the formula by which it is to be made, 
except that no formula is required for distilling material or vinegar 
stock. The formula is filed as provided by Sec.  24.80. Any change in 
the formula will be approved in advance as provided by Sec.  24.81. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1387, as amended (26 U.S.C. 5388))

(Approved by the Office of Management and Budget under control number 
1512-0059)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13685, Mar. 22, 1999]



Sec.  24.212  High fermentation wine.

    High fermentation wine is wine made with the addition of sugar 
within the limitations prescribed for natural wine except that the 
alcohol content after complete fermentation or complete fermentation and 
sweetening is more than 14 percent and wine spirits have not been added. 
Although high fermentation wine is not a standard wine, it is produced, 
stored, and handled on bonded wine premises subject to the same marking 
or labeling requirements. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as 
amended, 1387, as amended (26 U.S.C. 5365, 5388))



Sec.  24.213  Heavy bodied blending wine.

    Heavy bodied blending wine is wine made for blending purposes from 
grapes or other fruit without added sugar, and with or without added 
wine spirits, and having a total solids content in excess of 21 percent. 
Heavy bodied blending wine may be used in blending with other wine made 
from the same kind of fruit or for removal upon payment of tax, not for 
sale or consumption as beverage wine. Upon removal, the shipping 
containers and shipping records will be marked ``Heavy Bodied Blending 
Wine--Not for Sale or Consumption as Beverage Wine.'' (Sec. 201, Pub. L. 
85-859, 72 Stat. 1380, as amended, 1387, as amended (26 U.S.C. 5361, 
5388))

(Approved by the Office of Management and Budget under control numbers 
1512-0298 and 1512- 0503)



Sec.  24.214  Spanish type blending sherry.

    Blending wine made with partially caramelized grape concentrate may 
be produced, stored, and handled on, or transferred in bond between, 
bonded wine premises, or removed upon payment of tax, not for sale or 
consumption as beverage wine. Wine of a high solids content and dark in 
color, produced under this section, is designated ``Spanish Type 
Blending Sherry.'' Upon removal, the shipping containers will be marked 
with the applicable designation and the legend ``Not for Sale or 
Consumption as Beverage Wine.'' Spanish type blending sherry is not 
standard wine and may not be blended with standard wine except pursuant 
to an approved formula or in the further production of this type of 
wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as 
amended, 1387, as amended (26 U.S.C. 5361, 5388))

(Approved by the Office of Management and Budget under control numbers 
1512-0059 and 1512-0503)



Sec.  24.215  Wine or wine products not for beverage use.

    (a) General. Wine, or wine products made from wine, may be treated 
with methods or materials which render the wine or wine products unfit 
for beverage use. No wine or wine products so

[[Page 634]]

treated may contain more than 21 percent of alcohol by volume at the 
time of withdrawal free of tax from bonded wine premises; nor may any 
wine or wine product so withdrawn be used in the compounding of 
distilled spirits or wine for beverage use or in the manufacture of any 
product intended to be used in the compounding. Wine or wine products 
produced under this section will be clearly identified and segregated 
from beverage wine products while stored on bonded wine premises and may 
be transferred in bond between bonded wine premises. The shipping 
records for transfers in bond of nonbeverage wine or wine products will 
be marked ``Not for Sale or Consumption as Beverage Wine.'' Upon removal 
from bonded wine premises free of tax, containers of nonbeverage wine or 
wine products will be marked to clearly indicate such products are not 
for sale or consumption as beverage wine, e.g., salted wine, vinegar, 
nonbeverage cooking wine.
    (b) Salted wine. Salted wine is a wine or wine product not for 
beverage use produced in accordance with the provisions of this section 
and having not less than 1.5 grams of salt per 100 milliliter of wine. 
(12.5 pounds of salt/100 gallons of wine.)
    (c) Vinegar. Vinegar is a wine or wine product not for beverage use 
produced in accordance with the provisions of this section and having 
not less than 4.0 grams (4.0 percent) of volatile acidity (calculated as 
acetic acid and exclusive of sulfur dioxide) per 100 milliliters of 
wine. (Sec. 201, Pub. L. 85-859 and Sec. 455, Pub. L. 98-369, 72 Stat. 
1380, as amended (26 U.S.C. 5361, 5362))

(Approved by the Office of Management and Budget under control number 
1512-0503)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31079, July 9, 1991]



Sec.  24.216  Distilling material.

    Wine may be produced on bonded wine premises from grapes and other 
fruit, natural fruit products, or fruit residues, for use as distilling 
material, using any quantity of water desired to facilitate fermentation 
or distillation. No sugar may be added in the production of distilling 
material. Distillates containing aldehydes may be used in the 
fermentation of wine to be used as distilling material. Lees, filter 
wash, and other wine residues may also be accumulated on bonded wine 
premises for use as distilling material. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1380, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 
5361, 5373))



Sec.  24.217  Vinegar stock.

    Vinegar stock may be produced on bonded wine premises with the 
addition of any quantity of water desired to meet commercial standards 
for the production of vinegar. Vinegar stock may be made only by the 
addition of water to wine or by the direct fermentation of the juice of 
grapes or other fruit with added water. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1380, as amended, 1381, as amended (26 U.S.C. 5361))



Sec.  24.218  Other wine.

    (a) General. Other than standard wine not included in other sections 
in this subpart are considered other wine. Those wines considered to be 
other wine include:
    (1) Wine made with sugar, water, or sugar and water beyond the 
limitations prescribed for standard wine.
    (2) Wine made by blending wines produced from different kinds of 
fruit.
    (3) Wine made with sugar other than pure dry sugar, liquid pure 
sugar, and invert sugar syrup.
    (4) Wine made with materials not authorized for use in standard 
wine.
    (b) Production of other wine. Other wine may be made on bonded wine 
premises but will remain segregated from standard wine. Other wine will 
have a basic character derived from the primary winemaking material. If 
sugar is used to make other wine, the aggregate weight of the sugar used 
before and during fermentation will be less than the weight of the 
primary wine producing material. Wine spirits may be added to other 
wine. Upon removal, other wine will be marked or labeled with a 
designation which will adequately disclose the nature and composition of 
the wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1387, as 
amended (26 U.S.C. 5365, 5388))

(Approved by the Office of Management and Budget under control number 
1512-0503)

[[Page 635]]



                            Subpart K_Spirits



Sec.  24.225  General.

    The proprietor of a bonded wine premises may withdraw and receive 
spirits without payment of tax from the bonded premises of a distilled 
spirits plant for uses as are authorized in this part. Wine spirits 
produced in the United States may be added to natural wine on bonded 
wine premises if both the wine and the spirits are produced from the 
same kind of fruit. In the case of natural still wine, wine spirits may 
be added in any State only to wine produced by fermentation on bonded 
wine premises located within the same State. If wine has been 
ameliorated, wine spirits may be added (whether or not wine spirits were 
previously added) only if the wine contains not more than 14 percent of 
alcohol by volume derived from fermentation. Spirits other than wine 
spirits may be received, stored and used on bonded wine premises only 
for the production of nonbeverage wine and nonbeverage wine products. 
Wooden storage tanks used for the addition of spirits may be used for 
the baking of wine. (Sec. 201, Pub. L. 85-859 and Sec. 455, Pub. L. 98-
369, 72 Stat. 1381 as amended, 1382, as amended, 1383, as amended, 1384, 
as amended (26 U.S.C. 5366, 5373, 5382, 5383)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31079, July 9, 1991]



Sec.  24.226  Receipt or transfer of spirits.

    When spirits are received at the bonded wine premises, the 
proprietor shall determine that the spirits are the same as described on 
the transfer record and follow the procedures prescribed by 27 CFR 
19.510. A copy of the transfer record, annotated to show any difference 
between the description of spirits and quantity received, will be 
maintained by the proprietor as a record of receipt. If spirits are to 
be transferred to a distilled spirits plant or to bonded wine premises, 
the proprietor shall use the transfer record and procedures prescribed 
by 27 CFR 19.508. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended 
(26 U.S.C. 5373))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.227  Transfer of spirits by pipeline for immediate use.

    Spirits transferred by pipeline for immediate use are gauged either 
by weight or by volume on the bonded premises of the distilled spirits 
plant. Where the spirits are gauged on the bonded premises of the 
distilled spirits plant, the pipelines will be directly connected with 
the spirits addition tanks. The valves in the pipeline will be closed 
and locked with a lock at all times except when necessary to be opened 
for the transfer of spirits. Where the proprietor has placed wine in a 
spirits addition tank and has determined the quantity of spirits to be 
added, the spirits may be transferred. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1382, as amended (26 U.S.C. 5373))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31079, July 9, 1991]



Sec.  24.228  Transfer of spirits by pipeline to a spirits storage tank.

    Where it is desired to transfer spirits by pipeline to bonded wine 
premises and store the spirits prior to use, there will be provided a 
suitable tank for storing the spirits. The spirits to be transferred, if 
not gauged on the bonded premises of the distilled spirits plant, will 
be gauged by weight or volume on bonded wine premises. (Sec. 201, Pub. 
L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31079, July 9, 1991]



Sec.  24.229  Tank car and tank truck requirements.

    Railroad tank cars and tank trucks used to transport spirits for use 
in wine production will be constructed, marked, filled, labeled, and 
inspected in the manner required by regulations in 27 CFR part 19. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended (26 
U.S.C. 5206, 5214))



Sec.  24.230  Examination of tank car or tank truck.

    Upon arrival of a tank car or tank truck at the bonded wine 
premises, the proprietor shall carefully examine the car or truck to see 
whether the seals

[[Page 636]]

are intact and whether there is any evidence of tampering or loss by 
leaking or otherwise. Any evidence of loss will be reported to the 
appropriate TTB officer. The contents of the tank car or tank truck will 
be gauged by weight or volume at the time of receipt by the proprietor. 
If the tank car or tank truck has been accurately calibrated and the 
calibration chart is available at the bonded wine premises, the spirits 
may be gauged by volume in the tank car or tank truck. In any case where 
a volume gauge is made, the actual measurements of the spirits in the 
gauging tank, tank car, or tank truck, and the temperature of the 
spirits will be recorded on the copy of the transfer record accompanying 
the shipment. (Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 
1362, as amended, 1381, as amended (26 U.S.C. 5206, 5214, 5366))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]



Sec.  24.231  Receipt of spirits in sealed bulk containers.

    The proprietor shall examine sealed bulk containers (packages) of 
spirits received at the bonded wine premises to verify that the 
containers are the same as those described on the transfer record 
accompanying the shipment. Any container which appears to have been 
tampered with or from which spirits appear to have been removed or lost 
will be gauged by the proprietor and the proprietor shall prepare and 
submit to the appropriate TTB officer a statement setting forth fully 
the circumstances and apparent cause of any loss. (Sec. 201, Pub. L. 85-
859, 72 Stat. 1381, as amended, 1382, as amended (26 U.S.C. 5366, 5367, 
5368, 5373))

(Approved by the Office of Management and Budget under control numbers 
1512-0292 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.232  Gauge of spirits.

    (a) If the spirits to be used are in a spirits storage tank on 
bonded wine premises, or are received immediately prior to use from a 
distilled spirits plant not adjacent or contiguous to bonded wine 
premises, the proprietor shall determine the proof of the spirits and 
the quantity used by volume gauge or by weight. Upon completion of the 
transfer of spirit from the spirits storage tank to the spirits addition 
tank, the proprietor shall lock the spirits storage tank.
    (b) If the spirits are received from the adjacent or contiguous 
bonded premises of a distilled spirits plant and are transferred 
directly into a spirits addition tank, the gauge of the spirits made on 
the distilled spirits plant premises will be used. The proprietor at the 
distilled spirits plant premises shall deliver a transfer record to the 
proprietor of bonded wine premises who shall acknowledge receipt of the 
spirits on the transfer record.
    (c) If the spirits are received in packages and the quantity of 
spirits needed for the addition is not equal to the contents of full 
packages, a portion of one package may be used and the remnant package 
returned to the spirits storage room. The proprietor shall gauge the 
remnant package and attach to it a label showing the date of gauge, the 
weight of the remnant package, and the proof. The remnant package will 
be used at the first opportunity. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1381, as amended, 1382, as amended (26 U.S.C. 5367, 5368, 5373))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.233  Addition of spirits to wine.

    (a) Prior to the addition of spirits. Wine will be placed in tanks 
approved for the addition of spirits. The proprietor shall accurately 
measure the wine, determine its alcohol content, determine the proof of 
the spirits to be added, calculate the quantity of spirits required, and 
enter the details in the record of spirits added to wine.
    (b) After the addition of spirits. The proprietor shall thoroughly 
agitate the contents of the tank to assure a complete mixture of the 
wine and spirits. The proprietor shall then measure the volume of wine 
in the tank, take a representative sample of the wine, and test for 
alcohol content. The result of the measurement and test and the

[[Page 637]]

quantity of spirits added will be entered in the record of spirits added 
to wine. The volume of wine used and the volume of wine resulting from 
the addition of spirits will be entered in the bulk wine record. The 
alcohol content of wine after the addition of spirits may not exceed 24 
percent by volume. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 
1382, as amended, 1383, as amended (26 U.S.C. 5367, 5373, 5382))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.234  Other use of spirits.

    The proprietor producing sparkling wine, artificially carbonated 
wine, formula wine, or essences for which spirits are required may use 
tax-free wine spirits or brandy. For nonbeverage wine, tax-free spirits 
other than wine spirits or brandy may also be used. The spirits received 
by the proprietor will be locked in a secure room or locker on bonded 
wine premises. The spirits will remain in the original container in the 
storeroom until withdrawn for use. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1382, as amended, 1383, as amended (26 U.S.C. 5373, 5382))



Sec.  24.235  Taxpayment or destruction of spirits.

    (a) Taxpayment of spirits. The proprietor who wants to taxpay 
spirits shall follow the prepayment of tax procedures of 27 CFR 
19.522(c).
    (b) Destruction of spirits. The proprietor who wants to destroy 
spirits shall file an application with the appropriate TTB officer 
stating the quantity of spirits, the proposed date and method of 
destruction, and the reason for destruction. Spirits may not be 
destroyed prior to approval by the appropriate TTB officer. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373))

(Approved by the Office of Management and Budget under control number 
1512-0292)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]



Sec.  24.236  Losses of spirits.

    Losses by theft or any other cause of spirits while on bonded wine 
premises or in transit are to be determined and reported at the time the 
losses are discovered. A physical inventory of the spirits storage tanks 
will be taken at the close of any month during which spirits were used 
in wine production, or upon completion of spirits use for the month or 
at any other time required by the appropriate TTB officer. Any loss 
which has not previously been reported will be determined by the 
inventory. (Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 
U.S.C. 5008, 5373))

(Approved by the Office of Management and Budget under control number 
1512-0292)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.237  Spirits added to juice or concentrated fruit juice.

    Juice or concentrated fruit juice to which spirits have been added 
may not have an alcohol content exceeding 24 percent by volume. Although 
not considered to be wine, juice or concentrated fruit juice to which 
spirits have been added will be included in the appropriate tax class of 
any wine inventory and will be properly identified. Juice or 
concentrated juice to which wine spirits are added will be reported on 
the TTB F 5120.17, Report of Bonded Wine Premises Operations, as wine, 
but a separate record will be maintained. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1383, as amended (26 U.S.C. 5382))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993]



           Subpart L_Storage, Treatment and Finishing of Wine



Sec.  24.240  General.

    Wine will be stored on bonded wine premises in buildings or tanks 
constructed and secured in accordance with the provisions of Sec. Sec.  
24.166 and 24.167. Wine will be stored in tanks, casks, barrels, cased 
or uncased bottles, or in any other suitable container, which will not 
contaminate the wine. Specifically authorized materials and processes 
for the treatment and finishing of wine are listed in Sec. Sec.  24.246 
and 24.248 of this subpart. (Sec. 201, Pub. L.

[[Page 638]]

85-859, 72 Stat. 1378, as amended, 1379, as amended, 1383, as amended, 
1395, as amended (26 U.S.C. 5352, 5357, 5382, 5552))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31079, July 9, 1991]



Sec.  24.241  Decolorizing juice or wine.

    (a) Conditions and limitations. If the proprietor wishes to use 
activated carbon or other decolorizing material to remove color from 
juice or wine, the following conditions and limitations will be met:
    (1) The wine will retain a vinous character after being treated with 
activated carbon or other decolorizing material;
    (2) The quantity of activated carbon used to treat the wine, 
including the juice from which the wine was produced, may not exceed 
twenty-five pounds per 1,000 gallons (3.0 grams per liter) (see 
paragraph (b) of this section); and
    (3) The wine treated with decolorizing material will have a color of 
not less than 0.6 Lovibond in a one-half inch cell or not more than 95 
percent transmittance per AOAC Method 11.003-11.004 (see paragraph (c) 
of this section). However, the proprietor may produce a wine having a 
color of less than 0.6 Lovibond or more than 95 percent transmittance 
per AOAC Method 11.003-11.004 by using normal methods and without the 
use of decolorizing material.
    (b) Transfer in bond. When a consignor proprietor transfers wine 
treated with activated carbon or other decolorizing material to a 
consignee proprietor, the consignor proprietor shall record on the 
shipping record:
    (1) The amount of wine which has been treated under the provisions 
of this section; and
    (2) The quantity of decolorizing material used in treating the wine, 
including the juice from which the wine was produced, before its 
transfer. The consignee proprietor may further treat the wine with 
decolorizing material as long as the consignee proprietor has a copy of 
the shipping record and complies with the requirements of this section.
    (c) Incorporation by reference. The ``Official Methods of Analysis 
of the Association of Official Analytical Chemists'' (AOAC Method 
11.003-11.004; 13th Edition 1980) is incorporated by reference in this 
part. This incorporation by reference was approved by the Director of 
the Federal Register, and is available for inspection or at the National 
Archives and Records Administration (NARA). For information on the 
availability of this material at NARA, call 202-741-6030, or go to: 
http://www.archives.gov/federal--register/code--of--federal--
regulations/ibr--locations.html. The publication is available from the 
Association of Official Analytical Chemists, 11 North 19th Street, Suite 
210, Arlington, Virginia 22209. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1383, as amended (26 U.S.C. 5382))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended at 69 FR 18803, 
Apr. 9, 2004]



Sec.  24.242  Authority to use greater quantities of decolorizing material in juice or wine.

    (a) Proprietor's notice. If the proprietor desires to remove color 
from juice prior to fermentation or if color in excess of that normally 
present in wine develops during the production or storage of a 
particular lot or lots, and if the proprietor desires to use activated 
carbon in excess of twenty-five pounds per 1,000 gallons (3.0 grams per 
liter) of juice or wine to remove this color, the proprietor, prior to 
starting the treatment, shall submit to the appropriate TTB officer a 
written notice for each lot of juice or wine to be treated for 
decolorization. The written notice will state
    (1) The reason for the treatment;
    (2) The volume, kind, and type of juice or wine to be treated;
    (3) The kind and quantity of decolorizing material to be used; and,
    (4) The length of time the decolorizing material is in contact with 
the juice or wine.
    (b) Action by the appropriate TTB officer on proprietor's notice. 
Upon receipt of the proprietor's notice, the appropriate TTB officer may 
require the proprietor to submit samples representative of the lot of 
juice or wine for examination by the TTB laboratory.

[[Page 639]]

    (c) Samples and chemical analysis--(1) Samples. If the appropriate 
TTB officer requires samples under paragraph (b) of this section, the 
proprietor shall prepare samples representative of the lot of juice or 
wine for examination. The samples will consist of:
    (i) The juice or wine before treatment with decolorizing material,
    (ii) The juice or wine after treatment with decolorizing material, 
and
    (iii) The decolorizing material used.
    (2) Chemical analysis. If the TTB chemical analyses of the samples 
shows that the proposed treatment would remove only color and will not 
remove the vinous characteristics of the wine, the appropriate TTB 
officer will return an approved copy of the proprietor's written notice. 
If the TTB chemical analysis shows that the proposed treatment is not 
acceptable, the appropriate TTB officer will send the proprietor a 
letter stating the reason(s) for disallowing the proposed treatment. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))

(Approved by the Office of Management and Budget under control numbers 
1512-0292 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.243  Filtering aids.

    Inert fibers, pulps, earths, or similar materials, may be used as 
filtering aids in the cellar treatment and finishing of wine. Agar-agar, 
carrageenan, cellulose, and diatomaceous earth are commonly employed 
inert filtering and clarifying aids. In general, there is no limitation 
on the use of inert materials and no records need be maintained 
concerning their use. However, if the inert material is dissolved in 
water prior to addition to wine, then the records required by Sec.  
24.301 will be maintained. Filtering aids which contain active chemical 
ingredients or which may alter the character of wine, may be used only 
in accordance with the provisions of Sec.  24.246. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.244  Use of acid to stabilize standard wine.

    Standard wine other than citrus wine, regardless of the fixed acid 
level, may be stabilized as a part of the finishing process by the 
addition of citric acid within the limitations of Sec.  24.246. Standard 
wine (including citrus wine) may be stabilized by the addition of 
fumaric acid within the limitations of Sec.  24.246. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382))



Sec.  24.245  Use of carbon dioxide in still wine.

    The addition of carbon dioxide to (and retention in) still wine is 
permitted if at the time of removal for consumption or sale the still 
wine does not contain more than 0.392 grams of carbon dioxide per 100 
milliliters of wine. However, a tolerance of not more than 0.009 grams 
per 100 milliliters to the maximum limitation of carbon dioxide in still 
wine will be allowed where the amount of carbon dioxide in excess of 
0.392 grams per 100 milliliters is due to mechanical variations which 
can not be completely controlled under good commercial practice. A 
tolerance will not be allowed where it is found that the proprietor 
continuously or intentionally exceeds 0.392 grams of carbon dioxide per 
100 milliliters of wine or where the variation results from the use of 
methods or equipment determined by the appropriate TTB officer not in 
accordance with good commercial practice. The proprietor shall determine 
the amount of carbon dioxide added to wine using authorized test 
procedures. Penalties are provided in 26 U.S.C. 5662 for any person who, 
whether by manner of packaging or advertising or by any other form of 
representation, misrepresents any still wine to be effervescent wine or 
a substitute for effervescent wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1331, as amended, 1381, as amended, 1407, as amended (26 U.S.C. 5041, 
5367, 5662))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.246  Materials authorized for the treatment of wine and juice.

    (a) Wine. Materials used in the process of filtering, clarifying, or 
purifying

[[Page 640]]

wine may remove cloudiness, precipitation, and undesirable odors and 
flavors, but the addition of any substance foreign to wine which changes 
the character of the wine, or the abstraction of ingredients which will 
change its character, to the extent inconsistent with good commercial 
practice, is not permitted on bonded wine premises. The materials listed 
in this section are approved, as being consistent with good commercial 
practice in the production, cellar treatment, or finishing of wine, and 
where applicable in the treatment of juice, within the general 
limitations of this section: Provided, That:
    (1) When the specified use or limitation of any material on this 
list is determined to be unacceptable by the U.S. Food and Drug 
Administration, the appropriate TTB officer may cancel or amend the 
approval for use of the material in the production, cellar treatment, or 
finishing of wine; and
    (2) Where water is added to facilitate the solution or dispersal of 
a material, the volume of water added, whether the material is used 
singly or in combination with other water based treating materials, may 
not total more than one percent of the volume of the treated wine, 
juice, or both wine and juice, from which such wine is produced.
    (b) Formula wine. In addition to the material listed in this 
section, other material may be used in formula wine if approved for such 
use.

          Materials Authorized for Treatment of Wine and Juice
------------------------------------------------------------------------
         Materials and use                 Reference or limitation
------------------------------------------------------------------------
Acacia (gum arabic): To clarify and  The amount used shall not exceed 2
 to stabilize wine.                   lbs/1000 gals. (0.24 g/L of wine.
                                      21 CFR 184.1330 (GRAS) *See
                                      footnote below.
Acetaldehyde: For color              The amount used must not exceed 300
 stabilization of juice prior to      ppm, and the finished concentrate
 concentration.                       must have no detectable level of
                                      the material. 21 CFR 182.60
                                      (GRAS).
Activated carbon:
    To assist precipitation during   27 CFR 24.176. GRAS per FDA
     fermentation.                    advisory opinion dated 1/26/79.
    To clarify and to purify wine..  The amount used to clarify and
                                      purify wine shall be included in
                                      the total amount of activated
                                      carbon used to remove excessive
                                      color in wine. 27 CFR 24.241 and
                                      24.242 (GRAS).
    To remove color in wine and/or   The amount used to treat the wine,
     juice from which the wine was    including the juice from which the
     produced.                        wine was produced, shall not
                                      exceed 25 lbs/1000 gal. (3.0 g/L).
                                      If the amount necessary exceeds
                                      this limit, a notice is required
                                      pursuant to 27 CFR 24.242 (GRAS).
Albumen (egg white): Fining agent    May be prepared in a light brine 1
 for wine.                            oz. (28.35 grams) potassium
                                      chloride, 2 lbs (907.2 grams) egg
                                      white, 1 gal. (3.785 L) of water.
                                      Usage not to exceed 1.5 gals. of
                                      solution per 1,000 gals. of wine.
                                      (GRAS).
Alumino-silicates (hydrated) e.g.,   21 CFR Sec.  Sec.   182.2727,
 Bentonite (Wyoming clay) and         182.2729, 184.1155 (GRAS) and
 Kaolin: To clarify and to            186.1256. GRAS per FDA advisory
 stabilize wine or juice.             opinion dated July 26, 1985.
Ammonium phosphate (mono- and di     The amount used shall not exceed 8
 basic): Yeast nutrient in wine       lbs. per 1000 gals. (0.96 g/L) of
 production and to start secondary    wine. 21 CFR 184.1141 (GRAS).
 fermentation in the production of
 sparkling wines.
Ascorbic acid iso-ascorbic acid      May be added to grapes, other fruit
 (erythorbic acid): To prevent        (including berries), and other
 oxidation of color and flavor        primary wine making materials, or
 components of juice and wine.        to the juice of such materials, or
                                      to the wine, within limitations
                                      which do not alter the class or
                                      type of the wine. 21 CFR 182.3013
                                      and 182.3041 (GRAS).
Calcium carbonate (with or without
 calcium salts of tartaric and
 malic acids):
    To reduce the excess natural     The natural or fixed acids shall
     acids in high acid wine, and     not be reduced below 5 g/L. 21 CFR
     in juice prior to or during      184.1069 and 184.1099, and
     fermentation..                   184.1191 (GRAS).
     A fining agent for cold         The amount used shall not exceed 30
     stabilization..                  lbs/1000 gals. (3.59 g/L) of wine.
Calcium pantothenate: Yeast          The amount used must not exceed 0.1
 nutrient to facilitate               lb. per 25,000 gallons. 21 CFR
 fermentation of apple wine.          184.1212 (GRAS).
Calcium sulfate (gypsum): To lower   The sulfate content of the finished
 pH in sherry wine..                  wine shall not exceed 2.0g/L,
                                      expressed as potassium sulfate. 27
                                      CFR 24.214. 21 CFR 184.1230
                                      (GRAS).
Carbon dioxide (including food       27 CFR 24.245.
 grade dry ice): To stabilize * * *  21 CFR 184.1240 (GRAS).
 and to preserve wine.
Casein, potassium salt of casein:    GRAS per FDA opinions of 02/23/60
 To clarify wine.                     and 08/25/61. 27 CFR 24.243.

[[Page 641]]

 
Citric acid:
    To correct natural acid          27 CFR 24.182 and 24.192.
     deficiencies in wine.           21 CFR 182.1033 (GRAS).
    To stabilize wine other than     The amount of citric acid shall not
     citrus wine.                     exceed 5.8 lbs/1000 gals. (0.7 g/
                                      L). 27 CFR 24.244. 21 CFR 182.1033
                                      (GRAS).
Copper sulfate: To remove hydrogen   The quantity of copper sulfate
 sulfide and/or mercaptans from       added (calculated as copper) must
 wine.                                not exceed 6 parts copper per
                                      million parts of wine (6.0 mg/L).
                                      The residual level of copper in
                                      the finished wine must not exceed
                                      0.5 parts per million (0.5 mg/L).
                                      21 CFR 184.1261 (GRAS).
Defoaming agents (polyoxyethylene    Defoaming agents which are 100%
 40 monostearate, silicon dioxide,    active may be used in amounts not
 dimethylpoly-siloxane, sorbitan      exceeding 0.15 lbs/1000 gals.
 monostearate, glyceryl mono-oleate   (0.018 g/L of wine. Defoaming
 and glyceryl dioleate): To control   agents which are 30% active may be
 foaming, fermentation adjunct.       used in amounts not exceeding 0.5
                                      lbs/1000 gals. (0.06 g/L) of wine.
                                      Silicon dioxide shall be
                                      completely removed by filtration.
                                      The amount of silicon remaining in
                                      the wine shall not exceed 10 parts
                                      per million. 21 CFR 173.340 and
                                      184.1505.
Dimethyl dicarbonate:
    To sterilize and to stabilize    Must meet the conditions prescribed
     wine, dealcoholized wine, and    by FDA in 21 CFR 172.133. DMDC may
     low alcohol wine.                be added to wine, dealcoholized
                                      wine, and low alcohol wine in a
                                      cumulative amount not to exceed
                                      200 parts per million (ppm).
Enzymatic activity: Various uses as  The enzyme preparation used shall
 shown below.                         be prepared from nontoxic and
                                      nonpathogenic microorganisms in
                                      accordance with good manufacturing
                                      practice and be approved for use
                                      in food by either FDA regulation
                                      or by FDA advisory opinion.
    Carbohydrase (alpha-Amylase):    The amylase enzyme activity shall
     To convert starches to           be derived from Aspergillus niger,
     fermentable carbohydrates.       Aspergillus oryzae, Bacillus
                                      subtilis, or barley malt per FDA
                                      advisory opinion of 8/18/83 or
                                      from Rhizopus oryzae per 21 CFR
                                      173.130 or from Bacillus
                                      licheniformis per 21 CFR 184.1027.
    Carbohydrase (beta-Amylase): To  The amylase enzyme activity shall
     convert starches to              be derived from barley malt per
     fermentable carbohydrates.       FDA advisory opinion dated 8/18/
                                      83.
    Carbohydrase (Glucoamylase,      The amylase enzyme activity shall
     Amylogluco-sidase): To convert   be derived from Aspergillus niger
     starches to fermentable          or Aspergillus oryzae per FDA
     carbohydrates.                   advisory opinion dated 8/18/83 or
                                      from Rhizopus oryzae per 21 CFR
                                      173.130 or from Rhizopus niveus
                                      per 21 CFR 173.110.
    Carbohydrase (pectinase,         The enzyme activity used must be
     cellulase, hemicellulase): To    derived from Aspergillus
     facilitate separation of juice   aculeatus. FDA advisory opinion
     from the fruit.                  dated12/19/1996.
    Catalase: To clarify and to      The enzyme activity used shall be
     stabilize wine.                  derived from Aspergillus niger or
                                      bovine liver per FDA advisory
                                      opinion dated 8/18/83 (GRAS).
    Cellulase: To clarify and to     The enzyme activity used shall be
     stabilize wine and to            derived from Aspergillus niger per
     facilitate separation of the     FDA advisory opinion dated 8/18/83
     juice from the fruit.            (GRAS).
    Cellulase (beta-glucanase): To   The enzyme activity must be derived
     clarify and filter wine.         from Tricoderma longibrachiatum.
                                      The amount used must not exceed 3
                                      g/hl. 21 CFR 184.1250 (GRAS).
    Glucose oxidase: To clarify and  The enzyme activity used shall be
     to stabilize wine.               derived from Aspergillus niger per
                                      FDA advisory opinion of 8/18/83
                                      (GRAS).
    Lysozyme: To stabilize wines     The amount used must not exceed 500
     from malolactic acid bacterial   mg/L. FDA advisory opinion dated
     degradation..                    12/15/93.
    Pectinase: To clarify and to     The enzyme activity used shall be
     stabilize wine and to            derived from Aspergillus niger per
     facilitate separation of juice   FDA advisory opinion dated 8/18/83
     from the fruit.                  (GRAS).
    Protease (general): To reduce    The enzyne activity used shall be
     or to remove heat labile         derived from Aspergillus niger or
     proteins.                        Bacillus subtilis per FDA advisory
                                      opinion dated 08/18/83 or from
                                      Bacillus licheniformis per 21 CFR
                                      184.1027 (GRAS).
    Protease (Bromelin): To reduce   The enzyme activity used shall be
     or to remove heat labile         derived from Ananus comosus or
     proteins.                        Ananus bracteatus (L) per FDA
                                      advisory opinion dated 08/18/83
                                      (GRAS).
    Protease (Ficin): To reduce or   The enzyme activity used shall be
     to remove heat labile proteins.  derived from Ficus spp. per FDA
                                      advisory opinion dated 08/18/83
                                      (GRAS).
    Protease (Papain): To reduce or  The enzyme activity used shall be
     to remove heat labile proteins.  deived from Carica papaya (L) per
                                      21 CFR 184.1585 (GRAS).
    Protease (Pepsin): To reduce or  The enzyme actvity used shall be
     to remove heat labile proteins.  derived from porcine or bovine
                                      stomachs per FDA advisory opinion
                                      dated 08/18/83 (GRAS).
    Protease (Trypsin): To reduce    The enzyme activity used shall be
     or to remove heat labile         derived from porcine or bovine
     proteins.                        pancreas per FDA advisory opinion
                                      dated 08/18/83 (GRAS).

[[Page 642]]

 
    Urease: To reduce levels of      The urease enzyme activity shall be
     naturally occurring urea in      derived from Lactobacillus
     wine to help prevent the         fermentum per 21 CFR 184.1924. Use
     formation of ethyl carbamate.    is limited to not more than 200 mg/
                                      L and must be filtered prior to
                                      final packaging of the wine.
Ethyl maltol: To stabilize wine....  Use authorized at a maximum level
                                      of 100mg/L in all standard wines
                                      except natural wine produced from
                                      Vitis vinifera grapes. FDA
                                      advisory opinion dated 12/1/86.
Ferrocyanide compounds (sequestered  No insoluble or soluble residue in
 complexes): To remove trace metal    excess of 1 part per million shall
 from wine and to remove              remain in the finished wine and
 objectionable levels of sulfide      the basic character of the wine
 and mercaptans from wine.            shall not be changed by such
                                      treatment. GRAS per FDA advisory
                                      opinion of 06/22/82.
Ferrous sulfate: To clarify and to   The amount used shall not exeed 3
 stabilize wine.                      ozs./1000 gals. (0.022 g/L) of
                                      wine. 21 CFR 184.1315 (GRAS).
Fumaric acid:
    To correct natural acid          The fumaric acid content of the
     deficiencies in grape wine.      finished wine shall not exceed 25
                                      lbs/1000 gals (3.0 g/L). 27 CFR
                                      24.182 and 24.192. 21 CFR 172.350.
    To stabilize wine..............  The fumaric acid content of the
                                      finished wine shall not exceed 25
                                      lbs/1000 gals (3.0 g/L). 27 CFR
                                      24.244. 21 CFR 172.350.
Gelatin (food grade): To clarify     (GRAS).
 juice or wine.
Granular cork: To smooth wine......  The amount used shall not exceed 10
                                      lbs/1000 gals. of wine (1.2 g/L).
                                      GRAS per FDA advisory opinion
                                      dated 02/25/85.
Isinglass: To clarify wine.........  GRAS per FDA advisory opinion dated
                                      02/25/85.
Lactic acid: To correct natural      27 CFR 24.182 and 24.192.
 acid deficiencies in grape wine.    21 CFR 184.1061 (GRAS).
Malic acid: To correct natural acid  27 CFR 24.182 and 24.192. 21 CFR
 deficiencies in juice or wine.       184.1069 (GRAS).
Malo-lactic bacteria: To stabilize   Malo-lactic bacteria of the type
 grape wine.                          Leuconostoc oenos may be used in
                                      treating wine. GRAS per FDA
                                      advisory opinion dated 02/25/85.
Maltol: To stabilize wine..........  Use authorized at a maximum level
                                      of 250 mg/L in all standard wine
                                      except natural wine produced from
                                      Vitis vinifera grapes. FDA
                                      advisory opinion dated 12/1/86.
Milk products (pasteurized whole,
 skim, or half-and-half):
    Fining agent for grape wine or   The amount used must not exceed 2.0
     sherry.                          liters of pasteurized milk product
                                      per 1,000 liters (0.2 percent V/V)
                                      of wine.
    To remove off flavors in wine..  The amount used must not exceed 10
                                      liters of pasteurized milk product
                                      per 1,000 liters (1 percent V/V)
                                      of wine.
Nitrogen gas: To maintain pressure   21 CFR 184.1540 (GRAS).
 during filtering and bottling or
 canning of wine and to prevent
 oxidation of wine.
Oak chips or particles, uncharred    21 CFR 172.510.
 and untreated: To smooth wine.
Oxygen and compressed air:
    May be used in juice and wine..  None.
Polyvinyl-polypyr-rolidone (PVPP):
    To clarify and to stabilize      The amount used to treat the wine,
     wine and to remove color from    including the juice from which the
     red or black wine or juice.      wine was produced, shall not
                                      exceed 60 lbs/1,000 gals. (7.19 g/
                                      L) and shall be removed during
                                      filtration. PVPP may be used in a
                                      continuous or batch process. The
                                      finished wine shall retain vinous
                                      character and shall have color of
                                      not less than 0.6 Lovibond in a
                                      one-half inch cell or not more
                                      than 95 percent transmittance per
                                      **AOAC Method 11.003-11.004 (14th
                                      Ed.). 21 CFR 173.50.
Potassium bitartrate: To stabilize   The amount used shall not exceed 35
 grape wine.                          lbs/1000 gals. (4.19 g/L) of grape
                                      wine. 21 CFR 184.1077 (GRAS).
Potassium carbonate and/or
 potassium bicarbonate
    To reduce excess natural         The natural or fixed acids shall
     acidity in wine, and in juice    not be reduced below 5 parts per
     prior to or during               thousand (5 g/L). 21 CFR 184.1619
     fermentation.                    and 184.1613 (GRAS).
Potassium citrate: pH control agent  The amount of potassium citrate
 and sequestrant in treatment of      shall not exceed 25 lbs/1000 gals.
 citrus wines.                        (3.0 g/L) of finished wine. 27 CFR
                                      24.182. 21 CFR 182.1625 and
                                      182.6625 (GRAS).
Potassium meta-bisulfite: To         The sulfur dioxide content of the
 sterilize and to preserve wine.      finished wine shall not exceed the
                                      limitations prescribed in 27 CFR
                                      4.22. 21 CFR 182.3637 (GRAS).
Silica gel (colloidal silicon        Use must not exceed the equivalent
 dioxide): To clarify wine or juice.  of 20 lbs. colloidal silicon
                                      dioxide at a 30% concentration per
                                      1000 gals. of wine. (2.4 g/L).
                                      Silicon dioxide must be completely
                                      removed by filtration. 21 CFR
                                      172.480.
Sorbic acid and potassium salt of    The finished wine shall contain not
 sorbic acid: To sterilize and to     more than 300 milligrams of sorbic
 preserve wine; to inhibit mold       acid per liter of wine. 21 CFR
 growth and secondary fermentation.   182.3089 and 182.3640 (GRAS).

[[Page 643]]

 
Soy flour (defatted): Yeast          The amount used shall not exceed 2
 nutrient to facilitate               lbs/1000 gals. (0.24 g/L) of wine.
 fermentation of wine.                (GRAS).
Sulfur dioxide: To sterilize and to  The sulfur dioxide content of the
 preserve wine.                       finished wine shall not exceed the
                                      limitations prescribed in 27 CFR
                                      4.22(b)(1). 21 CFR 182.3862
                                      (GRAS).
Tannin:
    To adjust tannin content in      The residual amount of tannin shall
     apple juice or in apple wine.    not exceed 3.0 g/L, calculated as
                                      gallic acid equivalents (GAE).
                                      GRAS per FDA advisory opinions
                                      dated 4/6/59 and 3/29/60. Total
                                      tannin shall not be increased by
                                      more than 150 milligrams/liter by
                                      the addition of tannic acid
                                      (polygalloylglucose).
    To clarify or to adjust tannin   The residual amount of tannin,
     content of juice or wine         calculated in gallic acid
     (other than apple).              equivalents, shall not exceed 0.8
                                      g/L in white wine and 3.0 g/L in
                                      red wine. Only tannin which does
                                      not impart color may be used in
                                      the cellar treatment of juice or
                                      wine. GRAS per FDA advisory
                                      opinions dated 4/6/59 and 3/29/60.
                                      Total tannin shall not be
                                      increased by more than 150
                                      milligrams/liter by the addition
                                      of tannic acid (poly-
                                      galloylglucose).
Tartaric acid:
    To correct natural acid          Use as prescribed in 27 CFR 24.182
     deficiencies in grape juice/     and 24.192. 21 CFR 184.1099
     wine and to reduce the pH of     (GRAS).
     grape juice/wine where
     ameliorating material is used
     in the production of grape
     wine.
Thiamine hydrochloride: Yeast        The amount used shall not exceed
 nutrient to facilitate               0.005 lb/1000 gals. (0.6 mg/L) of
 fermentation of wine.                wine or juice. 21 CFR 184.1875
                                      (GRAS).
Yeast, autolyzed: Yeast nutrient to  21 CFR 172.896 and 184.1983. GRAS
 facilitate fermentation in the       per FDA advisory opinion of 10/06/
 production of grape or fruit wine.   59.
Yeast, cell wall/membranes of        The amount used shall not exceed 3
 autolyzed yeast: To facilitate       lbs/1000 gals. (0.36 g/L) of wine
 fermentation of juice/wine.          or juice. (GRAS).
------------------------------------------------------------------------
* GRAS--An acronym for ``generally recognized as safe.'' The term means
  that the treating material has an FDA listing in Title 21, Code of
  Federal Regulations, Part 182 or Part 184, or is considered to be
  generally recognized as safe by advisory opinion issued by the U.S.
  Food and Drug Administration.
** AOAC--Association of Official Analytical Chemists.
*** To stabilize--To prevent or to retard unwanted alteration of
  chemical and/or physical properties.


(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5381, 
5382, 5385, 5386, and 5387))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31079, July 9, 1991; T.D. ATF-350, 58 FR 52231, Oct. 7, 1993; T.D. 
ATF-350, 60 FR 38959, July 31, 1995; T.D. ATF-371, 61 FR 21079, May 9, 
1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-17, 69 FR 
67643, Nov. 19, 2004; 72 FR 51709, Sept. 11, 2007]



Sec.  24.247  Materials authorized for the treatment of distilling material.

    The materials listed in this section as well as the materials listed 
in Sec.  24.246 are approved as being acceptable in good commercial 
practice for use by proprietors in the treatment of distilling material 
within the limitations specified in this section: Provided, That when 
the specified use or limitation of any material on this list is 
determined to be unacceptable by the U.S. Food and Drug Administration, 
the appropriate TTB officer may cancel or amend the approval for use of 
the material in the treatment of distilling material.

------------------------------------------------------------------------
                                                        Reference or
           Materials                   Use               limitation
------------------------------------------------------------------------
Ammonium phosphate (mono- and   Yeast nutrient in  The amount used shall
 di basic.                       distilling         not exceed 10 lbs/
                                 material.          1000 gals. (1.2 g/
                                                    L). 21 CFR 184.1141
                                                    (GRAS).\1\ See
                                                    footnote below.
Benzoic acid, potassium and     To prevent         The amount used shall
 sodium salts of benzoic acid.   fermentation of    not exceed 0.1% (w/
                                 the sugar in       v) as benzoic acid.
                                 wine being         GRAS per FDA
                                 accumulated as     advisory opinions
                                 distilling         dated 9/22/82 and 9/
                                 material.          8/83. 21 CFR
                                                    184.1021 and
                                                    184.1733 (GRAS).
Enzyme activity...............  .................  The enzyme
                                                    preparation used
                                                    shall be prepared
                                                    from nontoxic and
                                                    nonpathogenic
                                                    microorganisms in
                                                    accordance with good
                                                    manufacturing
                                                    practice and be
                                                    approved for use in
                                                    food by either FDA
                                                    regulation or by FDA
                                                    advisory opinion.

[[Page 644]]

 
Carbohydrase (alpha- Amylase).  To convert         The amylase enzyme
                                 starches to        activity shall be
                                 fermentable        derived from
                                 carbohydrates.     Aspergillus niger,
                                                    Aspergillus oryzae,
                                                    Bacillus subtilis,
                                                    or barley malt per
                                                    FDA advisory opinion
                                                    of 8/18/83 or from
                                                    Rhizopus oryzae per
                                                    21 CFR 173.130 or
                                                    from Bacillus
                                                    licheniformis per 21
                                                    CFR 184.1027.
Carbohydrase (beta- Amylase)..  To convent         The amylase enzyme
                                 starches to        activity shall be
                                 fermentable        derived from barley
                                 carbohydrates.     malt per FDA
                                                    advisory opinion
                                                    dated 8/18/83.
Carbohydrase (Glucoamylase,     To convent         The amylase enzyme
 Amylogluco-sidase).             starches to        actvity shall be
                                 fermentable        derived from
                                 carbohydrates.     Aspergillus niger or
                                                    Aspergillus oryzae
                                                    per FDA advisory
                                                    opinion dated 8/18/
                                                    83 or from Rhizopus
                                                    oryzae per 21 CFR
                                                    173.130 or from
                                                    Rhizopus niveus per
                                                    21 CFR 173.110.
Copper sulfate................  To eliminate       The finished brandy
                                 hydrogen sulfide   or wine spirits
                                 and mercaptans.    produced from
                                                    distilling material
                                                    to which copper
                                                    sulfate has been
                                                    added shall not
                                                    contain more than 2
                                                    parts per million (2
                                                    mg/L) residual
                                                    copper. GRAS per FDA
                                                    advisory opinion of
                                                    7/23/69.
Hydrogen peroxide.............  To reduce the      The amount used shall
                                 bisulfite          not exceed 200 parts
                                 aldehyde complex   per million. 21 CFR
                                 in distilling      184.1366 (GRAS).
                                 material.
Potassium permanganate........  Oxidizing agent..  The finished brandy
                                                    or wine spirits
                                                    produced from
                                                    distilling material
                                                    to which potassium
                                                    permanganate has
                                                    been added must be
                                                    free of chemical
                                                    residue resulting
                                                    from such treatment.
                                                    (GRAS)
Sodium hydroxide..............  Acid neutralizing  The finished brandy
                                 agent.             or wine spirits
                                                    produced from
                                                    distilling material
                                                    to which sodium
                                                    hydroxide has been
                                                    added must be free
                                                    of chemical residue
                                                    resulting from such
                                                    treatment. 21 CFR
                                                    184.1763 (GRAS).
Sulfuric acid.................  To effect          27 CFR 24.216 (GRAS),
                                 favorable yeast    21 CFR 184.1095
                                 development in     (GRAS).
                                 distilling
                                 material; to
                                 prevent
                                 fermentation of
                                 the sugar in
                                 wine being
                                 accumulated as
                                 distilling
                                 material; to
                                 lower pH to 2.5
                                 in order to
                                 prevent
                                 putrefaction and/
                                 or ethyl acetate
                                 development.
------------------------------------------------------------------------
\1\ GRAS--An acronym for ``generally recognized as safe.'' The term
  means that the treating material has an FDA listing in title 21, Code
  of Federal Regulations, part 182 or part 184, or is considered to be
  generally recognized as safe by the U.S. Food and Drug Administration.


(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.C.S. 5381, 
5382, 5385, 5386, and 5387)).

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



Sec.  24.248  Processes authorized for the treatment of wine, juice, and distilling material.

    Any process which changes the character of the wine to the extent 
inconsistent with good commercial practice is not permitted on bonded 
wine premises. The processes listed in this section are approved as 
being consistent with good commercial practice for use by proprietors in 
the production, cellar treatment, or finishing of wine, juice, and 
distilling material, within the general limitations of this section: 
Provided, That when the specified use or limitation of any process on 
this list is determined to be unacceptable for use in foods and 
beverages by the U.S. Food and Drug Administration, the appropriate TTB 
officer may cancel or amend the approval for use of the process in the 
production, cellar treatment, or finishing of wine, juice, and 
distilling material.

  Processes Authorized for the Treatment of Wine, Juice, and Distilling
                                Material
------------------------------------------------------------------------
                                                        Reference or
           Processes                   Use               limitation
------------------------------------------------------------------------
Electrodialysis...............  To aid in the      This process must not
                                 removal of         alter the vinous
                                 tartrates.         character of the
                                                    wine.
Elimination of sulfur dioxide   To reduce the      Use of a physical
 by physical process.            sulfur dioxide     process to remove
                                 content of juice.  sulfur dioxide from
                                                    juice must not alter
                                                    the basic character
                                                    of the juice so
                                                    treated

[[Page 645]]

 
Ion exchange..................  Various            Anion, cation, and
                                 applications in    non-ionic resins,
                                 the treatment of   except those anionic
                                 juice or wine:     resins in the
                                                    mineral acid state,
                                                    may be used in batch
                                                    or continuous column
                                                    processes as total
                                                    or partial treatment
                                                    of wine, provided
                                                    that with regard to
                                                    juice or finished
                                                    wine;
                                                   1. Such treatment
                                                    does not alter the
                                                    fruit character of
                                                    the juice or wine.
                                                   2. The treatment does
                                                    not reduce the color
                                                    of the juice or wine
                                                    to less than that
                                                    normally contained
                                                    in such juice or
                                                    wine.
                                                   3. Treatment does not
                                                    increase inorganic
                                                    anions in the juice
                                                    or wine by more than
                                                    10 mg/L.
                                                   4. The treatment does
                                                    not reduce the
                                                    metallic cation
                                                    concentration in the
                                                    juice or wine to
                                                    less than 300 mg/L.
                                                   5. The treatment does
                                                    not reduce natural
                                                    or fixed acid in
                                                    grape wine below 4 g/
                                                    L for red table
                                                    wines, 3 g/L for
                                                    white table wines,
                                                    2.5 g/L for all
                                                    other grape wines, 4
                                                    g/L for wine other
                                                    than grape wine.
                                                   6. Treatment does not
                                                    reduce the pH of the
                                                    juice or wine to
                                                    less than pH 2.8 nor
                                                    increase the pH to
                                                    more than pH 4.5.
                                                   7. The resins used
                                                    have not imparted to
                                                    the juice or wine
                                                    any material or
                                                    characteristic
                                                    (incidental to the
                                                    resin treatment)
                                                    which may be
                                                    prohibited under any
                                                    other section of the
                                                    regulations in this
                                                    part. The winemaker
                                                    may employ
                                                    conditioning and/or
                                                    regenerating agents
                                                    consisting of water,
                                                    fruit acids common
                                                    to the wine or juice
                                                    being treated, and
                                                    inorganic acids,
                                                    salts and/or bases
                                                    provided the
                                                    conditioned or
                                                    regenerated resin is
                                                    rinsed with water
                                                    until the resin and
                                                    container are
                                                    essentially free
                                                    from unreacted
                                                    (excess)
                                                    conditioning or
                                                    regenerating agents
                                                    prior to the
                                                    introduction of the
                                                    juice or wine. 21
                                                    CFR 173.25.
Metal reducing matrix sheet     To reduce the      (1) The active
 processing.                     level of metals    ingredient,
                                 such as copper     polyvinylimidazol,
                                 and iron in wine.  must not constitute
                                                    more than 40% by
                                                    weight of the sheet.
                                                   (2) Use of the sheet
                                                    must not
                                                    significantly alter
                                                    the color of the
                                                    wine.
Nanofiltration................  To reduce the      This process must use
                                 level of           permeable membranes
                                 volatile acidity   which are selective
                                 in wine (used      for molecules not
                                 with ion           greater than 150
                                 exchange).         molecular weight
                                                    with transmembrane
                                                    pressures of 250 psi
                                                    or less.
Osmotic transport \1\.........  For alcohol        (1) Use must not
                                 reduction.         alter the vinous
                                                    character of the
                                                    wine
                                                   (2) None of the
                                                    stripping solution
                                                    may migrate into the
                                                    wine.
Reverse osmosis \1\...........  To reduce the      Permeable membranes
                                 ethyl alcohol      which are selective
                                 content of wine    for molecules not
                                 and to remove      greater than 500
                                 off flavors in     molecular weight
                                 wine.              with transmembrane
                                                    pressures of 200 psi
                                                    and greater. The
                                                    addition of water
                                                    other than that
                                                    originally present
                                                    prior to processing
                                                    will render standard
                                                    wine ``other than
                                                    standard.'' Use
                                                    shall not alter
                                                    vinous character.
Spinning cone column \1\......  To reduce the      Use shall not alter
                                 ethyl alcohol      vinous character.
                                 content of wine    For standard wine,
                                 and to remove      the same amount of
                                 off flavors in     essense must be
                                 wine.              added back to any
                                                    lot of wine as was
                                                    originally removed.
Sulfide reducing matrix sheet   To reduce the      (1) The active
 processing.                     level of           ingredient,
                                 sulfides in wine.  polyvinylimidazol,
                                                    must not constitute
                                                    more than 40% by
                                                    weight of the sheet.
                                                   (2) Use of the sheet
                                                    must not
                                                    significantly alter
                                                    the color of the
                                                    wine.
Thermal gradient processing...  To separate wine   The fractions derived
                                 into low alcohol   from such processing
                                 and high alcohol   shall retain vinous
                                 wine fractions.    character. Such
                                                    treatment shall not
                                                    increase the alcohol
                                                    content of the high
                                                    alcohol fraction to
                                                    more than 24 percent
                                                    by volume. The
                                                    addition of water
                                                    other than that
                                                    originally present
                                                    in the wine prior to
                                                    processing will
                                                    render standard wine
                                                    ``other than
                                                    standard.''
                                To separate juice  The low Brix fraction
                                 into low Brix      derived from such
                                 and high Brix      processing may be
                                 juice fractions.   used in wine
                                                    production. The high
                                                    Brix fraction
                                                    derived from such
                                                    processing shall not
                                                    be diluted with
                                                    water for use in
                                                    wine production.

[[Page 646]]

 
Thin-film evaporation under     To separate wine   Use shall not alter
 reduced pressure \1\.           into a low         vinous character.
                                 alcohol wine       Water separated with
                                 fraction and       alcohol during
                                 into a higher      processing may be
                                 alcohol            recovered by
                                 distillate.        refluxing in a
                                                    closed continuous
                                                    system and returned
                                                    to the wine. The
                                                    addition of water
                                                    other than that
                                                    originally present
                                                    in the wine prior to
                                                    processing, will
                                                    render standard wine
                                                    ``other than
                                                    standard.''
Ultrafiltration...............  To remove          Permeable membranes
                                 proteinaceous      which are selective
                                 material from      for molecules
                                 wine; to reduce    greater than 500 and
                                 harsh tannic       less than 25,000
                                 material from      molecular weight
                                 white wine         with transmembrane
                                 produced from      pressures less than
                                 white skinned      200 psi. Use shall
                                 grapes; to         not alter vinous
                                 remove pink        character. 21 CFR
                                 color from blanc   175.300, 177.1520,
                                 de noir wine; to   177.1550, 177.1630,
                                 separate red       177.2440, 177.2600,
                                 wine into low      and 177.2910.
                                 color and high
                                 color wine
                                 fractions for
                                 blending
                                 purposes.
------------------------------------------------------------------------
\1\ This process must be done on distilled spirits plant premises.
  However, reverse osmosis, under certain limited conditions, may be
  used on bonded winery premises if ethyl alcohol is only temporarily
  created within a closed system.


(Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5381, 
5382, 5385, 5386, and 5387)).

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31081, July 9, 1991; T.D. ATF-350, 58 FR 52232, Oct. 7, 1993; T.D. 
ATF-371, 61 FR 21079, May 9, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 
1999; T.D. TTB-17, 69 FR 67644, Nov. 19, 2004]



Sec.  24.249  Experimentation with new treating material or process.

    (a) General. The proprietor may, under the provisions of this 
section, conduct on bonded wine premises such experimentation with a 
treating material or process as the appropriate TTB officer finds may be 
conducted in a manner that will not jeopardize the revenue, conflict 
with wine operations, or be contrary to law.
    (b) Application. The proprietor who wants to conduct experimentation 
must file an application with the appropriate TTB officer setting forth 
in detail the experimentation to be conducted and the facilities and 
equipment to be used. The proposed experimentation must not be conducted 
until the appropriate TTB officer has determined that the conduct of 
such experimentation must not jeopardize the revenue, conflict with wine 
operations, or be contrary to law, and has approved the application.
    (c) Segregation of operations. Experimentation authorized under this 
section will be conducted with the degree of segregation from wine 
operations as may be required by the appropriate TTB officer under the 
provisions of Sec.  24.27.
    (d) Records. The proprietor shall, with respect to each experiment 
authorized by this section, keep records of the kind and quantity of 
materials received and used and the volume of wine treated and the 
manner by which disposed.
    (e) Disposition of the wine. The disposition of the wine subjected 
to experimental treatment will conform to the conditions stated in the 
authorization to conduct the experimentation. (Sec. 201, Pub. L. 85-859 
(72 Stat. 1383, as amended (26 U.S.C. 5361, 5382))

(Approved by the Office of Management and Budget under control numbers 
1512-0292 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13685, Mar. 22, 1999]



Sec.  24.250  Application for use of new treating material or process.

    (a) General. If the proprietor desires to use a material or process 
which is not specifically authorized in Sec. Sec.  24.246, 24.247, 
24.248, or elsewhere in this part, an application shall be filed with 
the appropriate TTB officer to show that the proposed material or 
process is a cellar treatment consistent with good commercial practice.
    (b) Data required. The application will include the following:
    (1) The name and description of the material or process;
    (2) The purpose, the manner, and the extent to which the material or 
process

[[Page 647]]

is to be used together with any technical bulletin or other pertinent 
information relative to the material or process;
    (3) A sample, if a proposed material;
    (4) Documentary evidence of the U.S. Food and Drug Administration's 
approval of the material for its intended purpose in the amounts 
proposed for the particular treatment contemplated;
    (5) The test results of any laboratory-scale pilot study conducted 
by the winemaker in testing the material and an evaluation of the 
product and of the treatment including the results of tests of the shelf 
life of the treated wine;
    (6) A tabulation of pertinent information derived from the testing 
program conducted by the chemical manufacturer demonstrating the 
function of the material or process;
    (7) A list of all chemicals used in compounding the treating 
material and the quantity of each component;
    (8) The recommended maximum and minimum amounts, if any, of the 
material proposed to be used in the treatment and a statement as to the 
volume of water required, if any, to facilitate the addition of the 
material or operation of the process; and
    (9) Two 750-milliliter samples representative of the wine before and 
after treatment. Information of a confidential or proprietary nature to 
the manufacturer or supplier of the treating material or process may be 
forwarded by the manufacturer or supplier to the appropriate TTB officer 
with a reference to the application filed by the winemaker. Information 
contained within the winemaker's application can be disclosed to the 
public, subject to the limitations of 26 U.S.C. 6103 and 7213.
    (c) Use of cellar treatment. The proprietor may not use the proposed 
treating material or process until a determination has been made by the 
appropriate TTB officer that the intended use of the material or process 
is acceptable in good commercial practice.
    (d) Processing of application. After evaluation of the data 
submitted with the application, the appropriate TTB officer will make a 
decision regarding the acceptability of the proposed treatment in good 
commercial practice. The appropriate TTB officer will notify the 
proprietor of the approval or disapproval of the application. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5381, 5382, 5385, 
5386, and 5387))

(Approved by the Office of Management and Budget under control numbers 
1512-0292 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13685, Mar. 22, 1999]

                 Bottling, Packing, and Labeling of Wine



Sec.  24.255  Bottling or packing wine.

    (a) General. Proprietors of a bonded wine premises and a taxpaid 
wine bottling house premises shall be held strictly responsible for the 
correct determination of the quantity and alcohol content of wine 
removed. As required by Sec.  24.170, appropriate and accurate measures 
and instruments for measuring and testing the wine will be provided at 
each wine premises.
    (b) Bottle or other container fill. Proprietors of bonded wine 
premises and taxpaid wine bottling house premises shall fill bottles or 
other containers as nearly as possible to conform to the amount shown on 
the label or blown in the bottle or marked on any container other than a 
bottle; but in no event may the amount of wine contained in any 
individual bottle, due to lack of uniformity of the bottles, vary from 
the amount stated more than 1.0 percent for 15.0 liters and above, 1.5 
percent for 1.0 liter to 14.9 liters, 2.0 percent for 750 mL, 3.0 
percent for 375 mL, 4.5 percent for 187 mL and 100 mL, and 9.0 percent 
for 50 mL; and in such case, there will be substantially as many bottles 
overfilled as there are bottles underfilled for each lot of wine 
bottled. Short-filled bottles or other containers of wine which are sold 
or otherwise disposed of by the proprietor to employees for personal 
consumption need not be labeled, but, if labeled, need not show an 
accurate statement of net contents.
    (c) Tax tolerance. The net contents of bottles or other containers 
of untaxpaid wine in the same tax class filled during six consecutive 
tax return periods, as determined from the bonded wine premises 
proprietor's fill test records, shall not vary by more than 0.5

[[Page 648]]

percent from the net contents as stated on the bottles or other 
containers. The bonded wine premises proprietor is liable for the tax on 
the entire amount of wine in the same tax class when that wine is 
removed from bond, without benefit of tolerance, when the fill of 
bottles or other containers exceeds a 0.5 percent average of a period 
which consists of six consecutive tax returns, or when filling is not 
conducted in compliance with good commercial practice.
    (d) Fill tests. The proprietor shall test at representative 
intervals wine bottled or packed during the bottling or packing 
operation of each bottling or packing line to determine if the wine 
contained in the bottle or other container is in agreement with that 
stated on the label, bottle, or other container.
    (e) Alcohol tests. The proprietor shall test the alcohol content by 
volume to determine the tax class of the wine and to ensure the alcohol 
content to be stated on the label is in agreement with the requirement 
of Sec.  24.257. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended 
(26 U.S.C. 5368))

(Approved by the Office of Management and Budget under control numbers 
1512-0298 and 1512-0503)



Sec.  24.256  Bottle aging wine.

    Wine bottled or packed and stored for the purpose of aging need not 
have labels affixed until the wine is removed for consumption or sale. 
However, the bins, pallets, stacks, cases or containers of unlabeled 
wine will be marked in some manner to show the kind (class and type) and 
alcohol content of the wine. If the unlabeled wine is stored at a 
location other than the bottling or packing winery, the registry number 
of the bottling or packing winery will also be shown. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1381, as amended, 1407, as amended (26 U.S.C. 5368, 
5662))

(Approved by the Office of Management and Budget under control number 
1512-0503)



Sec.  24.257  Labeling wine containers.

    (a) The proprietor must label each bottle or other container of 
beverage wine prior to removal for consumption or sale. The minimum type 
size for information required by this section is: 2 millimeters for 
containers of more than 187 milliliters and 1 millimeter for containers 
of 187 milliliters or less. The maximum type size for alcohol content 
statements is 3 millimeters unless the container is larger than 5 
liters. The label must be securely affixed and show:
    (1) The name and address of the wine premises where bottled or 
packed;
    (2) The brand name, if different from above;
    (3) The alcohol content as percent by volume or the alcohol content 
stated in accordance with 27 CFR part 4. For wine with less than 7 
percent alcohol by volume stated on the label there is allowed an 
alcohol content tolerance of plus or minus .75 percent by volume; and
    (4) The kind of wine, shown as follows:
    (i) If the wine contains 7 percent or more alcohol by volume and 
must have label approval under 27 CFR part 4, the kind of wine is the 
class, type, or other designation provided in that part.
    (ii) If the wine has an exemption from label approval, an adequate 
statement of composition may be used instead of the class and type in 27 
CFR part 4.
    (iii) If the wine contains less than 7 percent alcohol by volume, an 
adequate statement of composition may be used instead of the class and 
type in 27 CFR part 4. The rules in 27 CFR part 4 pertaining to label 
approval and standards of fill do not apply to wine under 7 percent 
alcohol by volume. The rules in 27 CFR part 16 requiring a Health 
Warning Statement do apply to all wines over 1/2 percent alcohol. Except 
for the rules noted in this section, labeling of wines under 7 percent 
alcohol is under the jurisdiction of the Food and Drug Administration.
    (iv) The statement of composition must include enough information to 
identify the tax class when viewed with the alcohol content. First, the 
wine should be identified by the word ``wine,'' ``mead,'' ``cider'' or 
``perry,'' as applicable. If the wine contains more than 0.392 grams of 
carbon dioxide per 100 milliliters, the word ``sparkling'' or 
``carbonated,'' as applicable, must be

[[Page 649]]

included in the statement of composition. If the statement of 
composition leaves doubt as to the tax class of the wine, the wine must 
be marked ``tax class 5041(b)(1) IRC'' or an equivalent phrase. For 
example, a still wine marked ``wine'' and ``16 percent alcohol by 
volume'' is adequately marked to identify its tax class as 5041(b)(2). A 
still wine marked ``hard cider'' and ``9 percent alcohol by volume'' is 
adequately marked to identify its tax class as 5041(b)(1). A still wine 
marked ``raspberry hard cider'' and ``9 percent alcohol by volume'' is 
adequately marked to identify its tax class as 5041(b)(1). A still wine 
eligible for the hard cider tax rate marked ``cider'' or ``hard cider'' 
and ``6 percent alcohol by volume'' is adequately marked to identify its 
tax class as 5041(b)(6). However, if a still wine that is not eligible 
for the hard cider tax rate is marked ``cider'' or ``hard cider'' and 
``6 percent alcohol by volume'' it is not adequately marked to identify 
its tax class as 5041(b)(1), so the tax class must be shown.
    (5) The net content of the container unless the net content is 
permanently marked on the container as provided in 27 CFR part 4.
    (b) The information shown on any label applied to bottled or packed 
wine is subject to the recordkeeping requirements of Sec.  24.314. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1407, as amended (26 
U.S.C. 5368, 5388, 5662))
    (c) Use of semi-generic designations--(1) In general. Semi-generic 
designations may be used to designate wines of an origin other than that 
indicated by such name only if--
    (i) There appears in direct conjunction therewith an appropriate 
appellation of origin, as defined in part 4 of this chapter, disclosing 
the true place of origin of the wine, and
    (ii) The wine so designated conforms to the standard of identity, if 
any, for such wine contained in part 4 of this chapter or, if there is 
no such standard, to the trade understanding of such class or type.
    (2) Determination of whether a name is semi-generic--(i) In general. 
Except as provided in paragraph (c)(2)(ii) of this section, a name of 
geographic significance, which is also the designation of a class or 
type of wine, shall be deemed to have become semi-generic only if so 
found by the Administrator.
    (ii) Certain names treated as semi-generic. The following names 
shall be treated as semi-generic: Angelica, Burgundy, Claret, Chablis, 
Champagne, Chianti, Malaga, Marsala, Madeira, Moselle, Port, Rhine Wine 
or Hock, Sauterne, Haut Sauterne, Sherry, Tokay. (See: 26 U.S.C. 5368, 
5388, 5662)

(Approved by the Office of Management and Budget under control number 
1512-0503)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. ATF-350, 58 FR 52232, Oct. 7, 1993; T.D. 
ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. ATF-470, 66 FR 58944, Nov. 26, 
2001]



Sec.  24.258  Certificates of approval or exemption.

    The proprietor shall obtain a certificate of label approval or a 
certificate of exemption from label approval as required by 27 CFR part 
4. (August 29, 1935, ch. 814, Sec. 5, 49 Stat. 981, as amended (27 
U.S.C. 205))



Sec.  24.259  Marks.

    (a) Required marks. Each container larger than four liters or each 
case used to remove wine for consumption or sale will be durably marked 
to show the following information:
    (1) The serial number or filling date as provided in Sec.  24.260;
    (2) The name (or trade name) and the registry number of the bottlers 
wine premises;
    (3) The kind (class and type) and the alcohol content of the wine. 
The kind of wine and alcohol content will be stated in accordance with 
Sec.  24.257. The formula number will be marked on bulk containers of 
special natural wine or other wine produced under Sec.  24.218;
    (4) The net contents of each container larger than four liters or 
each case in wine gallons, or for containers larger than four liters or 
cases filled according to metric measure, the contents in liters. If 
wine is removed in cases, the cases may be marked to show the number and 
size of bottles or other containers in each case in lieu of the net 
contents of the case; and
    (5) Except for cases, the date of removal or shipment.

[[Page 650]]

    (b) Application of marks. Required marks may be cut, printed, or 
otherwise legibly and durably marked upon the container larger than four 
liters or the case or placed on a label or tag securely affixed to the 
case or container larger than four liters.
    (c) Location of marks. Required marks will be placed on a container 
larger than four liters or on the side of a case for ready examination 
by appropriate TTB officers. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 
as amended, 1387, as amended, 1407, as amended (26 U.S.C. 5368, 5388, 
5662))

(Approved by the Office of Management and Budget under control number 
1512-0503)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]



Sec.  24.260  Serial numbers or filling date.

    Each container larger than four liters or each case used for 
removing wine for consumption or sale will be marked with a serial 
number or filling date at the time of filling or when such containers or 
cases are prepared for removal. Serial numbers will commence with ``1'' 
and continue until the numeral ``1,000,000'' is reached, whereupon the 
series may recommence with the numeral ``1.'' However, the proprietor 
may initiate a new series after the numeral ``1,000,000'' has been 
reached provided no numeral will be used more than once during a 12-
month period. If desired, a separate series of numbers with letter 
prefixes may be used for containers larger than four liters and for 
cases, or for cases filled on different bottling lines, or for removals 
from different loading docks. The proprietor may mark containers larger 
than four liters or the cases with the filling date in lieu of using a 
serial number or use both a serial number and the filling date. However, 
if the proprietor desires to change from the use of a serial number to 
use of a filling date, or vice versa, a notice will be sent to the 
appropriate TTB officer before making the change. Where United States or 
foreign wine is recased, the cases will be marked with the date of 
recasing, preceded by the letter ``R'', in lieu of serial number or 
filling date. (72 Stat. 1381; 26 U.S.C. 5367, 5368)

(Approved by the Office of Management and Budget under control number 
1512-0503)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]



                        Subpart M_Losses of Wine



Sec.  24.265  Losses by theft.

    The proprietor shall be liable for and pay the tax on wine 
unlawfully removed while on bonded wine premises, or while in transit 
thereto or therefrom in bond, unless the proprietor or other person 
responsible for the tax, establishes to the satisfaction of the 
appropriate TTB officer that the theft did not occur as the result of 
connivance, collusion, fraud or negligence on the part of the proprietor 
or other person responsible for the tax or the owner, consignor, 
consignee, bailee, or carrier, or their agents or employees. (Sec. 201, 
Pub. L. 85-859, 72 Stat, 1381, as amended (26 U.S.C. 5370))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999; T.D. ATF-432, 65 FR 69253, Nov. 16, 2000]



Sec.  24.266  Inventory losses.

    (a) General. The proprietor shall take a physical inventory of all 
untaxpaid wine on-hand on bonded wine premises as of the close of 
business each tax year, or where a cycle different from the tax year has 
been established as provided in Sec.  24.313, the inventory will be 
taken annually at the end of that cycle, or at any time required by an 
appropriate TTB officer. The physical inventory of bulk and bottled or 
packed wine will be recorded and reported as required by Sec.  24.313.
    (b) Bulk wine losses. The physical inventory of bulk wine will 
determine losses due to spillage, leakage, soakage, evaporation, and 
other losses normally occurring from racking and filtering since the 
previous physical inventory required by this section. A claim for 
allowance of loss, under the provisions of Sec.  24.65, is required for 
inventory losses in production or storage:

[[Page 651]]

    (1) Where there are circumstances indicating that all or a part of 
the wine reported lost was unlawfully removed, or
    (2) Where the loss on bonded wine premises during the annual period 
exceeds three percent of the aggregate volume of wine on-hand at the 
beginning of the annual period and the volume of wine received in bond 
during the annual period; or the loss exceeds six percent of the still 
wine produced by fermentation; or the loss exceeds six percent of the 
sparkling wine produced by fermentation in bottles; or the loss exceeds 
three percent of the special natural wine produced under Sec.  24.195 or 
other wine produced under Sec.  24.218; or the loss exceeds three 
percent of the artificially carbonated wine produced; or the loss 
exceeds three percent of the bulk process sparkling wine produced.

The percentage applicable to each tax class of wine will be calculated 
separately, unless the calculation is impracticable because of the 
mixture of different tax classes by addition of wine spirits or blending 
during the annual period, in which case the percentage will be 
calculated on the aggregate volume. Wine removed immediately after 
production for use as distilling material and on which the usual 
racking, clarifying, and filtering losses are not sustained, will not be 
included in the calculations.
    (c) Bottle and other container wine losses. Wine filled into a 
bottle or other similar containers are not subject to losses due to 
spillage, leakage, soakage, evaporation, and other losses normally 
occurring from racking and filtering. In addition, wine that has been 
filled into a bottle or other similar containers can be accurately 
accounted for and any unexplained shortage is considered evidence of an 
unreported removal. Therefore, the proprietor shall pay the tax on any 
unexplained loss of untaxpaid bottled or packed wine disclosed by 
inventory or otherwise. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as 
amended (26 U.S.C. 5367, 5369, 5370))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991]



Sec.  24.267  Losses in transit.

    Where the loss in transit of bulk wine shipped in bond or the total 
daily bulk wine in bond shipments received in bond from the same winery 
exceeds one percent (two percent on transcontinental shipments) of the 
volume shipped, the proprietor of the receiving bonded wine premises 
shall immediately notify the appropriate TTB officer and file a claim 
under the provisions of Sec.  24.65. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1381, as amended (26 U.S.C. 5370))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13685, Mar. 22, 1999]



Sec.  24.268  Losses by fire or other casualty.

    The proprietor must immediately report any loss by theft, fire or 
other casualty, or any other extraordinary or unusual loss to the 
appropriate TTB officer. If required by the appropriate TTB officer, the 
proprietor must file a claim under the provisions of Sec.  24.65. The 
volume of wine loss must be reported on TTB F 5120.17 for the reporting 
period during which the loss occurred. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1381, as amended (26 U.S.C. 5370))

(Approved by the Office of Management and Budget under control number 
1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993; T.D. ATF-409, 64 FR 13685, Mar. 22, 1999]



              Subpart N_Removal, Return and Receipt of Wine

                            Taxpaid Removals



Sec.  24.270  Determination of tax.

    The tax on wine is determined at the time of removal from a bonded 
wine premises for consumption or sale. Section 5041 of title 26, United 
States Code, imposes an excise tax, at the rates prescribed, on all wine 
(including imitation, substandard, or artificial wine, and compounds 
sold as wine, which contain 24 percent or less of alcohol by volume) 
produced in or imported into the United States. Wine

[[Page 652]]

containing more that 24 percent of alcohol by volume is classed as 
distilled spirits and taxed accordingly. The tax is determined and paid 
on the volume of wine:
    (a) In bottles or other containers filled according to United States 
measure recorded to the nearest 10th gallon; or,
    (b) In bottles or other containers filled according to metric 
measure, on the volume of wine in United States wine gallons to the 
nearest 10th gallon; or
    (c) In the case of pipeline removals, on the volume of bulk wine 
removed recorded to the nearest whole gallon, five-tenths gallon being 
converted to the next full gallon. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1331, as amended (26 U.S.C. 5041))

See Sec. Sec.  24.278 and 24.279 of this part for regulations concerning 
credit against the wine tax for certain bonded wine premises 
proprietors.

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 
55 FR 52737, Dec. 21, 1990]



Sec.  24.271  Payment of tax by return with remittance.

    (a) General. The tax on wine is paid by an Excise Tax Return, Form 
5000.24, which is filed with remittance (check, cash, or money order) 
for the full amount of tax due. Prepayments of tax on wine during the 
period covered by the return are shown separately on the Excise Tax 
Return form. If no tax is due for the return period, the filing of a 
return is not required.
    (b) Return periods and due dates--(1) Return periods. (i) 
Definitions. For purposes of this section, the following terms have the 
meanings indicated:
    Reasonably expects. When used with reference to a taxpayer, 
reasonably expects means the taxpayer was not liable for more than 
$50,000 in taxes the previous year and there is no other existing or 
anticipated circumstance known to the taxpayer (such as an increase in 
production capacity) that would cause the taxpayer's liability to 
increase beyond that limit.
    Taxpayer. A taxpayer is a person who is liable for excise tax 
imposed with respect to wine by 26 U.S.C. 5041 and 7652 under the same 
Employer Identification Number as defined in 26 CFR 301.7701-12.
    (ii) Semimonthly return period. Except in the case of a taxpayer who 
qualifies for, and chooses to use, the annual return period as provided 
in Sec.  24.273 or the quarterly return period as provided in paragraph 
(b)(1)(iii) of this section, all taxpayers who have filed a bond for 
deferred payment of taxes must use semimonthly return periods. The 
semimonthly return periods shall run from the 1st day through the 15th 
day of each month, and from the 16th day through the last day of each 
month, except as otherwise provided in paragraph (c) of this section.
    (iii) Quarterly return period. Effective January 1, 2006, a taxpayer 
who has filed a bond for deferred payment of taxes, who reasonably 
expects to be liable for not more than $50,000 in taxes with respect to 
wine imposed by 26 U.S.C. 5041 and 7652 for the current calendar year, 
and who was liable for not more than $50,000 in such taxes in the 
preceding calendar year, may choose to use a quarterly return period. In 
such a case the last day for payment of tax and filing the return will 
be the 14th day after the last day of the calendar quarter. However, the 
taxpayer may not use the quarterly return period procedure for any 
portion of the calendar year following the first date on which the 
aggregate amount of tax due from the taxpayer during the calendar year 
exceeds $50,000, and any tax which has not been paid on that date will 
be due on the 14th day after the last day of the semimonthly period in 
which that date occurs.
    (2) Semimonthly and quarterly tax return due dates. The taxpayer 
shall file the semimonthly or quarterly return, with remittance, for 
each return period not later than the 14th day after the last day of the 
return period. If the due date falls on a Saturday, Sunday, or legal 
holiday, the return and remittance shall be due on the immediately 
preceding day which is not a Saturday, Sunday, or legal holiday, except 
as otherwise provided in paragraph (c)(3) of this section.
    (c) Special September rule for taxes due by semimonthly return(1) 
Division of second semimonthly period--(i) General. Except as provided 
in paragraph (c)(1)(ii)

[[Page 653]]

of this section, the second semimonthly period for the month of 
September shall be divided into two payment periods, from the 16th day 
through the 26th day, and from the 27th day through the 30th day. The 
proprietor shall file a return on Form 5000.24, and make remittance, for 
the period September 16-26, no later than September 29. The proprietor 
shall file a return on Form 5000.24, and make remittance, for the period 
September 27-30, no later than October 14.
    (ii) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec.  24.272, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through the 
25th day, and the 26th day through the 30th day. The proprietor shall 
file a return on Form 5000.24, and make remittance, for the period 
September 16-25, no later than September 28. The proprietor shall file a 
return on Form 5000.24, and make remittance, for the period September 
26-30, no later than October 14.
    (2) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (c)(1)(i) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (c)(1)(ii) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax liability 
incurred for the semimonthly period beginning on September 1 and ending 
on September 15, and if any underpayment of tax is paid by October 14.
    (3) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (4) Example. Payment of tax for the month of September. (i) Facts. 
X, a proprietor required to pay taxes by electronic fund transfer, 
incurred tax liability in the amount of $30,000 for the first 
semimonthly period of September. For the period September 16-26, X 
incurred tax liability in the amount of $45,000, and for the period 
September 27-30, X incurred tax liability in the amount of $2,000.
    (ii) Payment requirement. X's payment of tax in the amount of 
$30,000 for the first semimonthly period of September is due no later 
than September 29 (Sec.  24.271(b)). X's payment of tax for the period 
September 16-26 is also due no later than September 29 (Sec.  
24.271(c)(1)(i)). X may use the safe harbor rule to determine the amount 
of payment due for the period of September 16-26 (Sec.  24.271(c)(2)). 
Under the safe harbor rule, X's payment of tax must equal $21,990.00, 
11/15ths of the tax liability incurred during the first semimonthly 
period of September. Additionally, X's payment of tax in the amount of 
$2,000 for the period September 27-30 must be paid no later than October 
14 (Sec.  24.271(c)(1)(i)). X must also pay the underpayment of tax, 
$23,010.00, for the period September 16-26, no later than October 14 
(Sec.  24.271(c)(2)).

(Approved by the Office of Management and Budget under control numbers 
1512-0467 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-365, 
60 FR 33668, June 28, 1995; T.D. TTB-41, 71 FR 5602, Feb. 2, 2006]



Sec.  24.272  Payment of tax by electronic fund transfer.

    (a) General. (1) During a calendar year any proprietor who is liable 
for a gross amount of wine excise tax equal to or exceeding $5 million 
combining tax liabilities incurred under this part and parts 26 and 27 
of this chapter, shall during the succeeding calendar year use a 
financial institution in making payment by electronic fund transfer 
(EFT) of wine taxes for that year. A proprietor who is required by this 
section to make remittance by EFT may not effect payment of wine taxes 
by cash, check, or money order as described in Sec.  24.271.

[[Page 654]]

    (2) For the purposes of this section, the dollar amount of tax 
liability is defined as the gross tax liability on all taxable 
withdrawals and importations (including wines brought into the United 
States from Puerto Rico or the Virgin Islands) during the calendar year, 
without regard to any drawback, credit, or refund, for all premises from 
which the activities are conducted by the proprietor.
    (3) For the purposes of this section, a proprietor includes a 
controlled group of corporations, as defined in 26 U.S.C. 5061 (e)(3). 
Also, the rules for a ``controlled group of corporations'' apply in a 
similar fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50 percent control 
over a group consisting of corporations and one, or more, partnerships 
and/or sole proprietorships, all of the members of the controlled group 
are one taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (4) A proprietor who is required by this section to make remittances 
by EFT shall, for each bonded wine premises from which wine is withdrawn 
upon determination of tax, make a separate EFT remittance and file a 
separate tax return.
    (b) Requirements. (1) On or before January 10 of each calendar year, 
except for a proprietor already remitting the tax by EFT, each 
proprietor who was liable during the previous calendar year for a gross 
amount of wine excise tax equal to or exceeding $5 million, combining 
tax liabilities incurred under this part and parts 26 and 27 of this 
chapter, shall give written notice to the appropriate TTB officer 
agreeing to make remittances by EFT.
    (2) For each return filed in accordance with this subpart, the 
proprietor shall direct the proprietor's financial institution to make 
an electronic fund transfer in the amount of the taxpayment to the 
Treasury Account as provided in paragraph (e) of this section. The 
request will be made to the financial institution early enough for the 
transfer of funds to be made to the Treasury Account by no later than 
the close of business on the last day for filing the return as 
prescribed in Sec.  24.271. The request will take into account any time 
limit established by the financial institution.
    (3) If the proprietor was liable during the preceding calendar year 
for less than $5 million in wine excise taxes, combining tax liabilities 
incurred under this part and parts 26 and 27 of this chapter, the 
proprietor may choose either to continue remitting the tax as provided 
in this section or to remit the tax with return as prescribed by Sec.  
24.271. Upon filing the first return on which the proprietor chooses to 
discontinue remittance of the tax by EFT and to begin remittance of the 
tax with the tax return, the proprietor shall notify the appropriate TTB 
officer by attaching a written notification to the tax form stating that 
no wine excise tax is due by EFT because the tax liability during the 
preceding calendar year was less than $5 million, and that the 
remittance will be filed with the tax return.
    (c) Remittance. (1) The proprietor shall show on the tax return 
information about remitting the tax for that return by EFT and shall 
file the return with TTB in accordance with the instructions on the tax 
form.
    (2) Remittances will be considered as made when the taxpayment by 
electronic fund transfer is received by the Treasury Account. For 
purposes of this section, a taxpayment by electronic fund transfer will 
be considered as received by the Treasury Account when it is paid to a 
Federal Reserve Bank.
    (3) When the proprietor directs the financial institution to effect 
an electronic fund transfer message as required by paragraph (b) (2) of 
this section, the transfer data record furnished to the proprietor 
through normal banking procedures will serve as the record of payment, 
and will be retained as part of the required records.
    (d) Failure to make a taxpayment by EFT. The proprietor is subject 
to a penalty imposed by 26 U.S.C. 5684, 6651, and 6656, as applicable, 
for failure to make a taxpayment by EFT on or before the close of 
business on the prescribed last day for filing.
    (e) Procedure. Upon the notification required under paragraph (b)(1) 
of this section, the appropriate TTB officer will issue to the 
proprietor an TTB Procedure entitled, Payment of Tax by

[[Page 655]]

Electronic Fund Transfer. This publication outlines the procedure a 
proprietor follows when preparing returns and EFT remittances in 
accordance with this subpart. The United States Customs Service will 
provide the proprietor with instructions for preparing EFT remittances 
for payments to be made to the United States Customs Service for payment 
of excise tax on imported wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1335, as amended (26 U.S.C. 5061))

(Approved by the Office of Management and Budget under control numbers 
1512-0467 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, 13685, Mar. 22, 1999; T.D. ATF-459, 66 FR 38550, July 25, 
2001; T.D. ATF-479, 67 FR 30798, May 8, 2002]



Sec.  24.273  Exception to filing semimonthly or quarterly tax returns.

    (a) Eligibility for annual filing. A proprietor may file the Excise 
Tax Return, Form 5000.24, and remittance, within 30 days after the end 
of the calendar year instead of semimonthly or quarterly as provided in 
Sec.  24.271, if the proprietor has not given a bond for deferred 
payment of wine excise tax and if the proprietor:
    (1) Paid wine excise taxes in an amount less than $1,000 during the 
previous calendar year, or
    (2) Is the proprietor of a newly established bonded wine premises 
and expects to pay less than $1,000 in wine excise taxes before the end 
of the calendar year.
    (b) Loss of eligibility for annual filing. (1) If before the close 
of the current calendar year the wine excise tax owed will exceed the 
amount of the coverage under the proprietor's operations bond for wine 
removed from bonded wine premises on which tax has been determined but 
not paid, the proprietor will file an Excise Tax Return with the total 
remittance on the date the wine excise tax owed will exceed such amount 
and file an aggregate Excise Tax Return within 30 days after the close 
of the calendar year showing the total wine tax liability for such 
calendar year. If before the close of the current calendar year the wine 
excise tax liability (including any amounts paid or owed) equals $1,000 
or more, the proprietor will commence semimonthly or quarterly filing of 
the wine Excise Tax Returns and making of payments as required by Sec.  
24.271.
    (2) If there is a jeopardy to the revenue, the appropriate TTB 
officer may deny the exceptions to filing tax returns provided in this 
section at any time.
    (c) Other rules apply. A proprietor who files under this section is 
subject to the failure to pay or file provisions of Sec.  24.274.

[T.D. TTB-41, 71 FR 5602, Feb. 2, 2006]



Sec.  24.274  Failure to timely pay tax or file a return.

    Penalties for failure to pay tax at the time required, for willful 
refusal to pay the tax and for fraudulent nonpayment of tax are provided 
for in 26 U.S.C. 5661 and 6656. In addition to these penalties, there is 
a penalty for the delinquent filing of a tax return, imposed as an 
addition to the tax shown on the return, amounting to five percent for 
each month or fraction thereof of the delinquency, not exceeding 25 
percent in the aggregate, unless it is shown that the delinquency is due 
to reasonable cause and not to willful neglect. (Sec. 201, Pub. L. 85-
859, 72 Stat. 1407, as amended, 1410, as amended (26 U.S.C. 5661, 5684, 
6651, 6656))



Sec.  24.275  Prepayment of tax.

    (a) General. The proprietor shall, before removal of wine for 
consumption or sale, file Excise Tax Return, TTB F 5000.24, with 
remittance, where:
    (1) Required to prepay tax under Sec.  24.276; or,
    (2) The tax deferral bond is not in the maximum penal sum and the 
tax determined and unpaid at any one time exceeds the penal sum of the 
bond by more than the amount of such tax covered by the wine operations 
coverage of the wine bond; or,
    (3) There is no approved tax deferral bond and the total amount of 
tax unpaid at any one time exceeds the amount of the wine operations 
coverage of the wine bond designated for wine removed from bonded wine 
premises on which tax has been determined but not paid.

[[Page 656]]


The return with remittance is forwarded pursuant to the instructions 
printed on the return. For the purpose of complying with this section, 
the term ``forwarding'' means deposit in the United States mail properly 
addressed to TTB.
    (b) Electronic fund transfer. When the proprietor is required by 
Sec.  24.272 to deliver payment of tax by electronic fund transfer, the 
proprietor shall prepay the tax before any wine can be removed for 
consumption or sale by:
    (1) Completing the Excise Tax Return and by mailing it, as 
instructed on the form, to TTB and
    (2) Directing the proprietor's financial institution to effect an 
electronic fund transfer. (August 16, 1954, ch. 736, 68A Stat. 775, as 
amended, 777, as amended, 391, as amended (26 U.S.C. 6301, 6311, 6302))

(Approved by the Office of Management and Budget under control numbers 
1512-0467 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19064, Apr. 12, 1993]



Sec.  24.276  Prepayment of tax; proprietor in default.

    When the proprietor fails to forward a payment for wine excise tax 
due by presentment of a check or money order, or when the proprietor is 
otherwise in default of payment of the tax, no wine may be removed for 
consumption or sale until the tax has been paid for the period of the 
default and until the appropriate TTB officer finds the revenue will not 
be jeopardized by the late payment of the tax. Any remittance made 
during the period of the default will be in cash, or will be in the form 
of a certified, cashier's, or treasurer's check drawn on any financial 
institution incorporated under the laws of the United States, or under 
the laws of any State, Territory, or possession of the United States, or 
in the form of a money order, as provided in 27 CFR 70.61 (payment by 
check or money order) or in the form of an electronic fund transfer. 
(August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 
391 as amended (26 U.S.C. 6301, 6311, 6302))

(Approved by the Office of Management and Budget under control numbers 
1512-0467 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-301, 
55 FR 47605, Nov. 14, 1990; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999]



Sec.  24.277  Date of mailing or delivering of returns.

    (a) When the proprietor sends the Excise Tax Return, TTB F 5000.24, 
with or without remittance, by United States mail, the official postmark 
of the United States Postal Service stamped on the cover of the envelope 
in which the return was mailed is considered the date of delivery of the 
tax return and, if accompanied, the date of delivery of the remittance. 
When the postmark on the cover is illegible, it is the proprietor's 
responsibility to prove when the postmark was made.
    (b) When the proprietor sends the tax return by registered mail or 
by certified mail, the date of registry or the date of the postmark on 
the sender's receipt of certified mail, as the case may be, is treated 
at the date of delivery of the tax return and, if accompanied, the date 
of delivery of the remittance. (August 16, 1954, ch. 736, 68A Stat. 775, 
as amended, 777, as amended, 391, as amended (26 U.S.C. 6301, 6311, 
6302))

(Approved by the Office of Management and Budget under control numbers 
1512-0467 and 1512-0492)



Sec.  24.278  Tax credit for certain small domestic producers.

    (a) General. A person who produces not more than 250,000 gallons of 
wine during the calendar year may take a credit against any tax imposed 
by Title 26 of the United States Code (other than Chapters 2, 21, and 
22), in an amount computed in accordance with paragraph (d) of this 
section, on the first 100,000 gallons of wine (other than champagne and 
other sparkling wine) removed during that year for consumption or sale. 
This credit applies only to wine that has been produced at a qualified 
bonded wine premises in the United States. The small domestic wine 
producer tax credit is available

[[Page 657]]

only to eligible proprietors engaged in the business of producing wine. 
A proprietor who has a basic permit to produce wine but does not produce 
wine during a calendar year may not take the small producer wine tax 
credit on wine removed during that calendar year. A proprietor who has 
obtained a new wine producer basic permit may not take the small 
producer wine tax credit on wine removed until the proprietor has 
produced wine. ``Production'' of wine includes those activities 
described in paragraph (e)(1) of this section.
    (b) Special rules relating to eligibility for wine credit--(1) 
Controlled groups. For purposes of this section and Sec.  24.279, the 
term ``person'' includes a controlled group of corporations, as defined 
in 26 U.S.C. 1563(a), except that the phrase ``more than 50 percent'' 
must be substituted for the phrase ``at least 80 percent'' wherever it 
appears. Also, the rules for a ``controlled group of corporations'' 
apply in a similar fashion to groups that include partnerships and/or 
sole proprietorships. Production and removals of all members of a 
controlled group are treated as if they were the production and removals 
of a single taxpayer for the purpose of determining what credit a person 
may use.
    (2) Credit for transferees in bond. A person other than the eligible 
small producer (hereafter in this paragraph referred to as the 
``transferee'') may take the credit under paragraph (a) of this section 
that would be allowed to that producer if the wine removed by the 
transferee had been removed by the producer on that date, under the 
following conditions:
    (i) Wine produced by any person would be eligible for any credit 
under this section if removed by that person during the calendar year;
    (ii) Wine produced by that person is removed during that calendar 
year by the transferee to whom that wine was transferred in bond and who 
is liable for the tax imposed by 26 U.S.C. 5041 with respect to that 
wine;
    (iii) That producer holds title to that wine at the time of its 
removal and provides to the transferee such information as is necessary 
to properly determine the transferee's credit under this paragraph; and
    (iv) At the time of taxable removal, the producer provides to the 
transferee, in writing (each retaining a copy with the record of taxpaid 
removal from bond pursuant to Sec.  24.310), the following information:
    (A) The names of the producer and transferee;
    (B) The quantity and tax class of the wines to be shipped;
    (C) The date of removal from bond for consumption or sale;
    (D) A confirmation that the producer is eligible for credit, with 
the credit rate to which the wines are entitled; and
    (E) A confirmation that the subject shipment is within the first 
100,000 gallons of eligible wine removed by (or on behalf of) the 
producer for the calendar year.
    (c) Time for determining and allowing credit. The credit referred to 
in paragraph (a) of this section will be determined at the same time as 
the tax is determined under 26 U.S.C. 5041(a), and will be allowable at 
the time any tax described in paragraph (a) of this section is payable. 
The credit allowable by this section is treated as if it constitutes a 
reduction in the rate of the tax.
    (d) Computation of credit. The credit which may be taken on the 
first 100,000 gallons of wine (other than champagne and other sparkling 
wine) removed for consumption or sale by an eligible person during a 
calendar year is computed as follows:
    (1) For persons who produce 150,000 gallons or less of wine during 
the calendar year, the credit is $0.90 per gallon for wine ($0.056 for 
hard cider);
    (2) For persons who produce more than 150,000 gallons but not more 
than 250,000 gallons during the calendar year, the credit is reduced by 
1 percent for every 1,000 gallons produced in excess of 150,000 gallons. 
For example, the credit that would be taken by a person who produced 
160,500 gallons of wine and hard cider during a calendar year would be 
reduced by 10 percent, for a net credit against the tax of $0.81 per 
gallon for wine or $0.0504 for hard cider, as long as the wine or hard 
cider was among the first 100,000 gallons removed

[[Page 658]]

for consumption or sale during the calendar year.
    (e) Definitions--(1) Production. For purposes of determining if a 
person's production of wine is within the 250,000 gallon limit, 
production includes, in addition to wine produced by fermentation, any 
increase in the volume of wine due to the winery operations of 
amelioration, wine spirits addition, sweetening, or production of 
formula wine. Production of champagne and other sparkling wines is 
included for purposes of determining whether total production of a 
winery exceeds 250,000 gallons. Production includes all wine produced at 
qualified bonded wine premises within the United States and wine 
produced outside the United States by the same person.
    (2) Removals. For purposes of determining if a person's removals are 
within the 100,000 gallon limit, removals include wine that the person 
removed from all qualified bonded wine premises within the United 
States. Wine removed by a transferee in bond under paragraph (b)(2) of 
this section must be counted against the 100,000 gallon limit of the 
small producer who owns that wine, and not against the limit of the 
transferee in bond if the transferee is also a small producer. Champagne 
and other sparkling wines, which are not eligible for credit, do not 
count as removals against the 100,000 gallon limit.
    (f) Preparation of tax return. A person who is eligible for the 
credit must show the amount of wine tax before credit on the Excise Tax 
Return, TTB F 5000.24, and must enter the quantity of wine subject to 
the credit and the applicable credit rate as the explanation for an 
adjusting entry in Schedule B of the return for each tax period. Where a 
person does not use the credit authorized by this section to directly 
reduce the rate of Federal excise tax on wine, that person must report 
on TTB F 5000.24 where the credit will be, or has been, applied. Where a 
transferee in bond takes credit on behalf of one or more small 
producers, the transferee must show in Schedule B of the return the name 
of each producer, each producer's credit rate, and the total credit 
taken on behalf of each producer during the tax return period.
    (g) Denial of deduction. Pursuant to 26 U.S.C. 5041(c)(5), any 
deduction under 26 U.S.C. subtitle A with respect to any tax against 
which the credit is allowed under paragraph (a) of this section must 
only be for the amount of the tax as reduced by the credit.
    (h) Exception to credit. The appropriate TTB officer will deny any 
tax credit taken under paragraph (a) of this section where it is 
determined that the allowance of the credit would benefit a person who 
would otherwise fail to qualify for the use of the credit.

(26 U.S.C. 5041(c).)

(Approved by the Office of Management and Budget under control number 
1513-0104)

[T.D. TTB-64, 72 FR 65454, Nov. 21, 2007]



Sec.  24.279  Tax adjustments related to wine credit.

    (a) Increasing adjustments. Persons who produce more wine than the 
amount used in computation of the credit, or who lose eligibility by not 
producing during a calendar year, must make increasing tax adjustments. 
Where an increasing adjustment to a person's tax return is necessary as 
a result of an incorrect credit rate claimed pursuant to Sec.  24.278, 
that person must make the adjustment on the Excise Tax Return, TTB F 
5000.24, no later than the return period in which production (or the 
production of the controlled group of which the person is a member) 
exceeds the amount used in computation of the credit. If the adjustment 
is due to failure to produce, the person must make the adjustment no 
later than the last return period of the calendar year. The adjustment 
is the difference between the credit taken for prior return periods in 
that year and the appropriate credit for those return periods. The 
person must make tax adjustments for all bonded wine premises where 
excess credits were taken against tax that year, and must include 
interest payable. In the case of a person who continued to deduct credit 
after reaching the 100,000 gallon maximum during the calendar year, that 
person must make an adjustment in the full amount of excess credit taken 
and must include interest payable under 26 U.S.C. 6601 from the date on 
which the excess credit was taken.

[[Page 659]]

In addition, the person must include the penalty payable under 26 U.S.C. 
6662 if the appropriate TTB officer determines that the underpayment was 
due to negligence or disregard of rules or regulations and advises the 
person to include the penalty as part of the adjustment. The appropriate 
TTB officer will provide information, when requested, regarding interest 
rates applicable to specific time periods and regarding any applicable 
penalties. In the case of a controlled group of bonded wine premises 
that took excess credits, all member proprietors who took incorrect 
credits must make tax adjustments as determined in this section. In the 
case of a small producer who instructed a transferee in bond to take 
credit as authorized by Sec.  24.278(b)(2), and subsequently determines 
that the credit was less or not applicable, that producer must 
immediately inform the transferee in bond, in writing, of the correct 
credit information. The transferee must make any increasing adjustment 
on its next tax return based on revised credit information given by the 
producer or a TTB officer.
    (b) Decreasing adjustments. Where a person fails to deduct the 
credit or deducts less than the appropriate credit provided for by Sec.  
24.278 during the calendar year, the person may file a claim for refund 
of excess tax paid. The claim must be filed in accordance with Sec.  
24.69. In the case of wine removed on behalf of a small producer by a 
transferee in bond, if the transferee in bond was instructed to deduct 
credit and failed to deduct credit or deducted less than the appropriate 
credit and was later reimbursed for the tax by that producer, the 
transferee may file the claim. The provisions of 26 U.S.C. 6423 and 27 
CFR part 70, subpart F, will apply, and the producer and transferee in 
bond must show that the conditions of Sec.  24.278(b)(2) were met.

(26 U.S.C. 5041(c))

(Approved by the Office of Management and Budget under control number 
1513-0088)

[T.D. TTB-64, 72 FR 65455, Nov. 21, 2007]

                        Transfer of Wine in Bond



Sec.  24.280  General.

    Wine may be removed for transfer in bond, from one bonded wine 
premises to another bonded wine premises or to a distilled spirits 
plant. For bulk wine transferred in bond between adjacent or contiguous 
bonded wine premises or to an adjacent or contiguous distilled spirits 
plant, an accurately calibrated tank for measuring the wine is required 
on at least one of the premises. The volume of wine transferred will be 
recorded to the nearest whole gallon, five-tenths gallon being converted 
to the next full gallon. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as 
amended (26 U.S.C. 5362))



Sec.  24.281  Consignor premises.

    Prior to transferring wine in bond, the proprietor shall prepare a 
transfer record prescribed by Sec.  24.309. Except for multiple 
transfers as provided in Sec.  24.282, a transfer record will be 
prepared for each shipment. On completion of lading (or completion of 
transfer by pipeline), the proprietor shall retain one copy of the 
transfer record for the files and forward the original to the consignee 
(by the close of the next business day). (Sec. 201, Pub. L. 85-859, 72 
Stat. 1380, as amended (26 U.S.C. 5362)

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991]



Sec.  24.282  Multiple transfers.

    (a) Truck. The proprietor may use one transfer record for all wine 
shipped by truck on the same day to other premises. The proprietor shall 
prepare a shipment or delivery order for each shipment showing date of 
transfer, name and address of the proprietor and consignee, number of 
cases or containers, serial numbers of cases (if any) or container 
identification marks, and quantity shipped in gallons or liters. A copy 
of the shipping or delivery order will be retained by the proprietor and 
a copy sent with the shipment. On completion of lading the last truck 
for the day, the proprietor shall prepare and

[[Page 660]]

process a transfer record as provided in Sec.  24.281.
    (b) Pipeline. The proprietor may use one transfer record for all 
wine (including distilling material and vinegar stock) transferred by 
pipeline to adjacent premises during a month. At the end of the month, 
the proprietor shall prepare and process a transfer record as provided 
in Sec.  24.281. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended 
(26 U.S.C 5362))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.283  Reconsignment.

    Prior to or on arrival at the premises of a consignee, wine 
transferred in bond may be reconsigned by the consignor. The bond of the 
proprietor to whom the wine is reconsigned will cover the wine while in 
transit after reconsignment. Notice of cancellation of the shipment will 
be made to the other proprietors involved by the proprietor who 
reconsigned the wine. Where reconsignment is to other than the shipping 
proprietor, a new transfer record prominently marked ``Reconsignment'' 
will be prepared and processed as provided by Sec.  24.281. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C 5362))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.284  Consignee premises.

    When wine is received by transfer in bond, the consignee shall check 
the shipment against the transfer record and determine by volumetric 
measure or weight the quantity received. The date received and, if 
different from the quantity shipped, the quantity received will be 
recorded on the transfer record. See Sec.  24.267 for provisions 
applicable to losses in transit. Sealed containers or cases received 
without apparent loss need not be measured or weighed. The consignee 
will retain the original of the transfer record and any accompanying 
documents. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 
U.S.C. 5362))

(Approved by the Office of Management and Budget under control number 
1512-0298)

                     Removals Without Payment of Tax



Sec.  24.290  Removal of wine as distilling material.

    (a) General. Still wine may be removed without payment of tax to the 
production facilities of a distilled spirits plant for use as distilling 
material. The volume of distilling material may be determined at either 
the bonded wine premises or the distilled spirits plant.
    (b) Special natural wine. Unmarketable special natural wine may be 
removed to a distilled spirits plant for use as distilling material in 
the production of wine spirits (but not brandy). Where sugar has been 
used in the production of special natural wine, the wine may not be 
removed for use as distilling material if the unfermented sugars therein 
have been fermented prior to the removal. If wine spirits produced from 
special natural wine contain any flavor characteristics of the special 
natural wine, the wine spirits may be used only in the production of a 
special natural wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as 
amended, 1382, as amended, 1395, as amended (26 U.S.C. 5362, 5373, 
5552))



Sec.  24.291  Removal of wine for vinegar production.

    (a) General. Still wine may be removed from bonded wine premises, 
without payment of tax, for use in the manufacture of vinegar. Where the 
proprietor is also the proprietor of a vinegar plant located adjacent or 
contiguous to the bonded wine premises, wine may be removed without 
payment of tax upon filing a consent of surety extending the terms of 
the wine bond to cover the removal and use of wine in the manufacture of 
vinegar. Where the proprietor of a vinegar plant is not the proprietor 
of an adjacent or contiguous bonded wine premises, the proprietor of the 
vinegar plant may receive wine, without payment of tax, for use in the 
manufacture of vinegar by filing a bond under the provisions of Sec.  
24.146(c) to cover the removal to and use of wine at the vinegar plant.
    (b) Vinegar plant records. Each proprietor of a vinegar plant to 
which wine is shipped, without payment of tax, for use in the 
manufacture of vinegar shall

[[Page 661]]

keep a record of all wine received and used for the manufacture of 
vinegar and of all vinegar produced and disposed of. The record will 
show the following information:
    (1) The volume and alcohol content of all wine received, the date of 
receipt, and the name, registry number, and address of the bonded wine 
premises from which received;
    (2) The volume and alcohol content of all wine used in the 
manufacture of vinegar, and the date of use;
    (3) The volume and grain strength of the vinegar produced, and the 
date of production. (This volume will be reported on a 100-grain 
strength basis and will be determined by multiplying the wine gallons of 
vinegar produced by the grain strength thereof and dividing the result 
by 100); and
    (4) The names and addresses of all persons to whom vinegar is 
shipped, the volume and grain strength shipped to each, and the date of 
shipment. (Grain strength is a measure of the acetic acid content of 
vinegar, expressed as 10 times the grams of acetic acid per 100 mL).
    (c) Inspection of vinegar plants. The proprietor of a vinegar plant 
receiving wine, without payment of tax, for use in the manufacture of 
vinegar shall make the premises and records available for inspection by 
appropriate TTB officers during regular business hours. (August 16, 
1954, ch. 736, 68A Stat. 903, as amended (26 U.S.C. 7606); Sec. 201, 
Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))

(Approved by the Office of Management and Budget under control numbers 
1512-0058, 1512-0292 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13684, Mar. 22, 1999]



Sec.  24.292  Exported wine.

    (a) General. Wine may be removed from a bonded wine premises without 
payment of tax for exportation, for use on vessels and aircraft, for 
transportation to and deposit in a ``Class 6'' manufacturing bonded 
warehouse, for transfer to and deposit in a customs bonded warehouse, 
and for transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation. Removals of wine for export will be 
in accordance with the procedures in part 28 of this chapter.
    (b) Return of wine to bonded storage. Wines which have been lawfully 
withdrawn, without payment of tax, under the provisions of part 28 of 
this chapter may be returned to bonded wine premises from which 
withdrawn for storage pending subsequent removal for lawful purposes. On 
return of wine to bonded wine premises, the proprietor shall record the 
receipt showing the gallonage of each tax class received and returned to 
storage on bonded wine premises and shall report the return on the TTB F 
5120.17, Report of Bonded Wine Premises Operations for the reporting 
period with an explanatory notation. All provisions of this part 
applicable to wine in bond at bonded wine premises and to removals from 
bond are applicable to returned wine. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1380, as amended (26 U.S.C. 5362))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19065, Apr. 12, 1993; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]



Sec.  24.293  Wine for Government use.

    (a) General. Wine may be removed from bonded wine premises, free of 
tax, for use of the Government of the United States, or any agency 
thereof, upon receipt of a proper Government order signed by the officer 
in charge of the department, institution, station, or similar 
establishment, to which the wine is to be shipped or other officer duly 
authorized to sign the order. The governmental order will show the kind, 
quantity and alcohol content of the wine desired; and the purpose for 
which the wine is to be used. Wine may also be removed for use by the 
governments of the several states and the District of Columbia, or of 
any subdivision thereof, or by any agency of the governments, free of 
tax, from bonded wine premises for analysis, testing, research or 
experimentation.
    (b) Bill of lading and report of shipment. Where wine is shipped by 
common carrier, the proprietor shall retain a copy of the bill of 
lading, covering the shipment, with the TTB F 5120.17,

[[Page 662]]

Report of Bonded Wine Premises Operations for the reporting period in 
which the shipment is made. The bill of lading will show the name and 
address of the agency to which the wine is shipped, identifying marks on 
containers or cases, and alcohol content of the wine. The governmental 
order, or a copy of the order, will be filed at the bonded wine premises 
available for inspection by appropriate TTB officers. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1380, as amended, 1381, as amended (26 U.S.C. 5362, 
5367, 7510))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; 
T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]



Sec.  24.294  Destruction of wine.

    (a) General. Wine on bonded wine premises may be destroyed on or off 
wine premises by the proprietor without payment of tax. A proprietor who 
wants to destroy wine on or off wine premises must file with the 
appropriate TTB officer an application stating the kind, alcohol 
content, and approximate volume of wine to be destroyed, where the wine 
is to be destroyed, and the reason for destruction. Wine to be destroyed 
must be inspected, and the destruction supervised, by an appropriate TTB 
officer unless the appropriate TTB officer authorizes the proprietor to 
destroy the wine without inspection and supervision. The wine must not 
be destroyed until the proprietor has received authority from the 
appropriate TTB officer.
    (b) Record of destruction. The proprietor shall maintain a record of 
the volume destroyed and include the quantity on the TTB F 5120.17, 
Report of Bonded Wine Premises Operations. If part of the volume of the 
material destroyed is not wine, the volume destroyed will be reported on 
the basis of actual wine content of the material, excluding any dilution 
by water or other substance. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 
as amended (26 U.S.C. 5367, 5370))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13686, Mar. 22, 1999]

                  Return of Unmerchantable Wine to Bond



Sec.  24.295  Return of unmerchantable wine to bond.

    (a) General. Wine produced in the United States which has been 
taxpaid, removed from bonded wine premises, and subsequently determined 
to be unmerchantable may be returned to bonded wine premises for 
reconditioning, reformulation or destruction. The tax paid on United 
States wine may, when such wine is returned to bond, be refunded or 
credited, without interest, to the proprietor of the bonded wine 
premises to which such wine is delivered. However, no tax paid on any 
United States wine for which a claim has been or will be made under the 
provisions of 27 CFR Part 70, subpart G will be refunded or credited. If 
the tax on the United States wine has been determined but not paid, the 
person liable for the tax may, when such wine is returned to bond, be 
relieved of the liability. Claims for refund or credit, or relief from 
tax paid or determined on United States wine returned to bond are filed 
in accordance with Sec.  24.66.
    (b) Receipt. The quantity of unmerchantable taxpaid United States 
wine returned to bond is determined upon receipt on bonded wine 
premises. The quantity determined will be entered on the TTB F 5120.17, 
Report of Bonded Wine Premises Operations for the reporting period 
during which the United States wine is returned.
    (c) Records. The proprietor shall maintain records covering each lot 
of unmerchantable taxpaid wine returned to bond in accordance with Sec.  
24.312. (Sec. 201, Pub. L. 85-859, 72 Stat. 1332,

[[Page 663]]

as amended, 1382, as amended (26 U.S.C. 5044, 5371))

(Approved by the Office of Management and Budget under control numbers 
1512-0216, 1512-0298 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; 
T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-376, 61 FR 31030, 
June 19, 1996]

                         Taxpaid Wine Operations



Sec.  24.296  Taxpaid wine operations.

    (a) General. The proprietor may conduct taxpaid wine operations 
authorized by Sec.  24.102 in an area designated as a taxpaid wine 
premises at a bonded wine premises or at a taxpaid wine bottling house. 
Taxpaid foreign wine may be received on the taxpaid wine premises for 
reconditioning and removal without retaxpayment or for destruction 
without credit of tax. Any taxpaid wine operations will be separate from 
all nontaxpaid wine operations and taxpaid wine will be clearly 
identified as provided in Sec.  24.135. The appropriate TTB officer may 
require any additional segregation and identification of taxpaid wine 
operations as deemed necessary to protect the revenue.
    (b) Treatment and blending. Taxpaid wine may be treated with sulfur 
dioxide compounds, refrigeration or pasteurization and may also be 
preserved, filtered or clarified by the use of methods or materials 
which will not change the basic character of the wine. Water may not be 
added to taxpaid wine. The proprietor who desires to treat wine in any 
manner (other than by simple filtration or the use of sulfur compounds, 
refrigeration or pasteurization) shall first file with the appropriate 
TTB officer an application giving the details of the proposed treatment. 
The proprietor may not use the treatment prior to approval. The 
proprietor may incur civil or criminal liability for using an 
unauthorized treatment of untaxpaid wine. Wine of the same kind (class 
and type), national origin and tax class may only be mixed to facilitate 
handling at a taxpaid wine bottling house; otherwise, the blending of 
taxpaid wine on such premises is prohibited. Taxpaid wine of different 
national origins, but of the same kind and tax class, may only be 
blended on taxpaid wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1407 (26 U.S.C. 5352, 5661))

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 
64 FR 13683, Mar. 22, 1999]



                      Subpart O_Records and Reports



Sec.  24.300  General.

    (a) Records and reports. A proprietor who conducts wine operations 
shall maintain wine transaction records and submit reports as required 
by this part. Transaction records may be recorded in wine gallons or in 
liters. However, required reports will show wine volumes in wine 
gallons. The equivalent wine gallons of wine bottled or packed and 
labeled according to metric measure will be determined using the 
following conversion factors:
    (1) Per case. Equivalent gallonage may be determined using the 
following conversion factors for cases of metric bottles:

------------------------------------------------------------------------
 Bottles                                                      Equivalent
per case                Net content each bottle                gallonage
------------------------------------------------------------------------
     120  50 mL.............................................     1.58502
      60  100 mL............................................     1.58502
      48  187 mL............................................     2.37119
      24  375 mL............................................     2.37753
      12  750 mL............................................     2.37753
      12  1 liter...........................................     3.17004
       6  1.5 liter.........................................     2.37753
       4  3 liter...........................................     3.17004
------------------------------------------------------------------------

    (2) Per liter. Equivalent gallonage may be determined by multiplying 
total liters by a conversion factor of 0.26417 gallons per liter.
    (b) Time of making entries. Any operation or transaction is to be 
entered in records or commercial papers at the time the operation or 
transaction occurs, except that where records are posted from source 
records or from supplemental auxiliary records prepared at the time the 
operation or transaction occurs, entries in another record may be 
deferred to not later than the close of business of the third business 
day succeeding the day on which the operation or transaction occurs. The 
proprietor shall retain all source records and all supplemental or 
auxiliary records which support entries in other records or commercial 
papers in

[[Page 664]]

order to facilitate verification of operations by appropriate TTB 
officers. Source records and supplemental or auxiliary records may be 
used as a record of an operation or transaction and to prepare the TTB F 
5120.17, Report of Bonded Wine Premises Operations, provided the record 
will readily allow for verification of an operation or transaction by 
appropriate TTB officers.
    (c) Prescribed forms. All reports required by this part must be 
submitted on forms prescribed by Sec.  24.20. Entries will be made as 
indicated by the headings of the columns and lines, and as required by 
the instructions for the form. Report forms are furnished free of cost.
    (d) Period of retention. All prescribed returns, reports and records 
(including source records) will be retained by the proprietor for a 
period of not less than three years from the record date or the date of 
the last entry required to be made in the record, whichever is later. 
However, the appropriate TTB officer may require records to be kept an 
additional period not exceeding three years in any case where retention 
is determined to be necessary.
    (e) Data processing. (1) Notwithstanding any other provision of this 
section, data maintained on data processing equipment may be kept at a 
location other than the wine premises if the original operation or 
transaction source records required by this subpart are kept available 
for inspection at the wine premises.
    (2) Data which has been accumulated on cards, tapes, discs, or other 
accepted recording media will be retrievable within five business days.
    (3) The applicable data processing program will be made available 
for examination if requested by an appropriate TTB officer.
    (f) Photographic copies of records. The proprietor may record, copy, 
or reproduce records required by this part and may use any process which 
accurately reproduces the original record and which forms a durable 
medium for reproducing and preserving the original record. Whenever 
records are reproduced under this section, the reproduced records will 
be preserved in conveniently accessible files, and provisions will be 
made for examining, viewing and using the reproduced record the same as 
if it were the original record, and it will be treated and considered 
for all purposes as though it were the original record. All provisions 
of law and regulations applicable to the original are applicable to the 
reproduced record. As used in this paragraph, ``original record'' means 
the record required to be maintained or preserved by the proprietor, 
even though it may be an executed duplicate or other copy of the 
document.
    (g) F 5120.17, Report of Bonded Wine Premises Operations. A 
proprietor who conducts bonded wine premises operations must complete 
and submit a F 5120.17 in accordance with the instructions on the form.
    (1) Monthly report. The proprietor must submit F 5120.17 on a 
monthly basis, except as otherwise provided in paragraph (g)(2) or 
(g)(3) of this section.
    (2) Quarterly or annual report. (i) General. A proprietor may file a 
completed F 5120.17 on a quarterly or annual basis if the proprietor 
meets the criteria in paragraph (g)(2)(ii) or (g)(2)(iii) of this 
section. To begin the quarterly or annual filing of a report of bonded 
wine premises operations, a proprietor must state the intent to do so in 
the ``Remarks'' section when filing the prior month's F 5120.17. A 
proprietor who is commencing operations during a calendar year and 
expects to meet these criteria may use a letter notice to the 
appropriate TTB officer and file F 5120.17 quarterly or annually for the 
remaining portion of the calendar year. If a proprietor becomes 
ineligible for quarterly or annual filing by exceeding the applicable 
tax liability or activity limit, the proprietor must file F 5120.17 for 
that month and for all subsequent months of the calendar year. If there 
is a jeopardy to the revenue, the appropriate TTB officer may at any 
time require any proprietor otherwise eligible for quarterly or annual 
filing of a report of bonded wine premises operations to file such 
report monthly.
    (ii) Eligibility for quarterly report filing. In order to be 
eligible to file F 5120.17 on a quarterly basis, the proprietor must be 
filing quarterly tax returns under Sec.  24.271, and the proprietor

[[Page 665]]

must not expect the sum of the bulk and bottled wine to be accounted for 
in all tax classes to exceed 60,000 gallons for any one quarter during 
the calendar year when adding up the bulk and bottled wine on hand at 
the beginning of the month, bulk wine produced by fermentation, 
sweetening, blending, amelioration or addition of wine spirits, bulk 
wine bottled, bulk and bottled wine received in bond, taxpaid wine 
returned to bond, bottled wine dumped to bulk, inventory gains, and any 
activity written in the untitled lines of the report form which 
increases the amount of wine to be accounted for.
    (iii) Eligibility for annual report filing. In order to be eligible 
to file F 5120.17 on an annual basis, the proprietor must be filing 
annual tax returns under Sec.  24.273, and the proprietor must not 
expect the sum of the bulk and bottled wine to be accounted for in all 
tax classes to exceed 20,000 gallons for any one month during the 
calendar year when adding up the bulk and bottled wine on hand at the 
beginning of the month, bulk wine produced by fermentation, sweetening, 
blending, amelioration or addition of wine spirits, bulk wine bottled, 
bulk and bottled wine received in bond, taxpaid wine returned to bond, 
bottled wine dumped to bulk, inventory gains, and any activity written 
in the untitled lines of the report form which increases the amount of 
wine to be accounted for.
    (3) No reportable activity. A proprietor who files a monthly F 
5120.17 and does not expect an inventory change or any reportable 
operations to be conducted in a subsequent month or months may attach to 
the filed F 5120.17 a statement that, until a change in the inventory or 
a reportable operation occurs, a F 5120.17 will not be filed.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 
5555))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, 13684 and 13686, 
Mar. 22, 1999; T.D. TTB-41, 71 FR 5603, Feb. 2, 2006]



Sec.  24.301  Bulk still wine record.

    A proprietor who produces or receives still wine in bond, (including 
wine intended for use as distilling material or vinegar stock to which 
water has not yet been added) shall maintain records of transactions for 
bulk still wine. Records will be maintained for each tax class of still 
wine including the date the transaction occurred. The bulk still wine 
record will contain the following:
    (a) The volume produced by fermentation in wine gallons determined 
by actual measurement;
    (b) The volume received, shipped taxpaid, removed (e.g., taxpaid, in 
bond, export, family use, samples) and used in sparkling wine 
production; if a tax credit under 26 U.S.C. 5041(c) may be claimed, the 
record will be maintained in sufficient detail to insure that such a tax 
credit is properly claimed;
    (c) The specific type of production method used, e.g., natural 
fermentation, amelioration, sweetening, addition of spirits, blending;
    (d) The volume of wine used and produced by amelioration, addition 
of spirits or sweetening, as determined by measurements of the wine 
before and after production.
    (e) The volume of wine used for and produced by blending, if wines 
of different tax classes are blended together;
    (f) The volume of wine used to produce formula wine, vinegar stock 
and distilling material;
    (g) The volume of wine removed to fermenters for refermentation or 
removed directly to the production facilities of a distilled spirits 
plant or vinegar plant;
    (h) Where a process authorized under Sec.  24.248 is employed, 
records will be maintained to allow for verification of any limitation 
specified for the process employed and to ensure that the use of the 
process is consistent with good commercial practice;
    (i) Where a treating material is dissolved or dispersed in water as 
authorized in this part, the volume of water added to the wine;
    (j) An explanation of any unusual transaction. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)); and

[[Page 666]]

    (k) If the proprietor is an importer of wine to which the provisions 
of Sec.  27.140 of this chapter apply, any certification or other 
records required at the time of release from customs custody under that 
section.

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 
55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31082, July 9, 1991; 
T.D. TTB-31, 70 FR 49483, Aug. 24, 2005]



Sec.  24.302  Effervescent wine record.

    A proprietor who produces or receives sparkling wine or artificially 
carbonated wine in bond shall maintain records showing the transaction 
date and details of production, receipt, storage, removal, and any loss 
incurred. Records will be maintained for each specific process used 
(bulk or bottle fermented, artificially carbonated) and by the specific 
kind of wine, e.g., grape, pear, cherry. The record will contain the 
following:
    (a) The volume of still wine filled into bottles or pressurized 
tanks prior to secondary fermentation or prior to the addition of carbon 
dioxide;
    (b) The quantity of any first dosage used;
    (c) Any in-process bottling losses, e.g., refilling, spillage, 
breakage;
    (d) The volume of bottle fermented sparkling wine in process, 
transferred and received;
    (e) The volume returned to still wine;
    (f) The quantity of any finishing dosage used (See Sec.  24.192);
    (g) The volume of finished sparkling wine or artificially carbonated 
wine bottled or packed (amount produced);
    (h) The quantity of each item used in the production of dosages, 
e.g., wine, sugar, spirits;
    (i) An explanation of any unusual transaction. (Sec. 201, Pub. L. 
85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)); and
    (j) If the proprietor is an importer of wine to which the provisions 
of Sec.  27.140 of this chapter apply, any certification or other 
records required at the time of release from customs custody under that 
section.

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. TTB-31, 70 FR 49483, Aug. 24, 2005]



Sec.  24.303  Formula wine record.

    A proprietor who produces beverage formula wine shall maintain 
records showing by transaction date the details of production. The 
formula wine record will contain the following:
    (a) A number for each lot produced;
    (b) The approved formula number for each lot;
    (c) The volume of wine used in the production;
    (d) The volume produced and the gain or loss resulting from the 
production of each lot as determined by comparing the volume finished 
with the volume used (report the total loss or gain on the TTB F 5120.17 
for the period in question);
    (e) An explanation of any unusual loss or gain;
    (f) The production of essences showing the formula number, 
quantities of spirits and herbs used, and the amount produced;
    (g) The quantity of essences purchased, and the use, transfer or 
other disposition of essences produced or purchased; and
    (h) A record of the receipt and use or other disposition of all 
herbs, aromatics, essences, extracts, or other flavoring materials used 
in the production of formula wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 
1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control numbers 
1512-0059, 1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19065, Apr. 12, 1993]



Sec.  24.304  Chaptalization (Brix adjustment) and amelioration record.

    (a) General. A proprietor who chaptalizes juice or ameliorates juice 
or wine, or both, shall maintain a record of the operation and the 
transaction date. Records will be maintained for each kind of wine 
produced

[[Page 667]]

(grape, apple, strawberry, etc.). No form of record is prescribed, but 
the record maintained will contain the information necessary to enable 
appropriate TTB officers to readily determine compliance with 
chaptalization and amelioration limitations. All quantities will be 
recorded in wine gallons, and, where sugar is used, the quantity will be 
determined either by measuring the increase in volume or, for pure dry 
sugar by considering that each 13.5 pounds results in a volumetric 
increase of one gallon. If grape juice is chaptalized and subsequently 
this juice or wine is ameliorated, the quantity of pure dry sugar added 
to juice will be included as ameliorating material. If fruit juice other 
than grape is chaptalized and this juice or wine is ameliorated, the 
quantity of pure dry sugar added for chaptalization is not considered 
ameliorating material; however, if liquid sugar or invert sugar syrup is 
used, the quantity of water in such sugar is included as ameliorating 
material. The record will include the following:
    (1) The volume of juice (exclusive of pulp) deposited in fermenters;
    (2) The maximum volume of ameliorating material to which the juice 
is entitled, as provided in Sec.  24.178;
    (3) The volume of ameliorating or chaptalizing material used; and
    (4) The volume of material authorized but not yet used.
    (b) Supporting records. The amelioration record will show the basis 
for entries and calculations, including determination of the natural 
fixed acid level and total solids content of juice, as applicable. The 
records are maintained on the basis of annual accounting periods, with 
each period commencing on July 1 of a year and ending on the following 
June 30, except the record for an accounting period may be continued 
after June 30, where the juice or wine included therein is to be held 
after that date for completion. When the amelioration of wine included 
in the record for one accounting period is complete, the record is 
closed and any unused ameliorating material may not be used. The 
proprietor may mix wines before amelioration of the wine is completed; 
however, the proprietor shall additionally maintain records necessary to 
establish the quantity of unused authorized material to which the 
resultant mixture would be entitled so that appropriate TTB officers may 
readily ascertain compliance with amelioration limitations. (Sec. 201, 
Pub. L. 85-859, 72 Stat. 1381, as amended 1385, as amended (26 U.S.C. 
5367, 5384))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999]



Sec.  24.305  Sweetening record.

    A proprietor who sweetens natural wine with sugar or juice 
(unconcentrated or concentrated) under the provisions of this part shall 
maintain a record of sweetening by transaction date. The record will 
contain the following:
    (a) The gallons and degrees Brix of the wine before sweetening;
    (b) If concentrate is used, the degrees Brix of the concentrate;
    (c) If sugar or juice, or both, are used, the gallon equivalent that 
would be required to sweeten the volume of wine to its maximum 
authorized total solids content;
    (d) The quantity of sugar or juice used for sweetening; and
    (e) The gallons and degrees Brix of the wine produced by sweetening. 
(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.306  Distilling material or vinegar stock record.

    A proprietor who produces or receives wine containing excess water 
which will be used expressly as distilling material or vinegar stock 
shall maintain a record by transaction date showing the amount and kind 
produced, received, from whom received, removed, and to whom sent. The 
proprietor shall keep a record of each type of material from which the 
distilling material or vinegar stock was fermented (e.g., grape, apple, 
strawberry). The volume of distilling material or vinegar stock 
produced, including wine lees refermented for use as distilling

[[Page 668]]

material, will be recorded upon removal from fermenting tanks. However, 
the provisions of this section do not apply to standard wine or 
unwatered wine lees recorded on the proprietor's record of bulk still 
wine and removed for use as distilling material or vinegar stock. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31083, July 9, 1991]



Sec.  24.307  Nonbeverage wine record.

    A proprietor who produces nonbeverage wine or wine products shall 
maintain a record by transaction date of such wine produced, received 
and withdrawn as follows:
    (a) The kind, volume, and percent alcohol by volume of wine or wine 
products made from wine, which was rendered unfit for beverage use;
    (b) The kind and quantity of materials received and used to render 
wine, or wine products made from wine, unfit for beverage use;
    (c) The name, volume, percent alcohol by volume, and formula number, 
if produced under a formula, of each nonbeverage wine or wine product 
produced;
    (d) The volume, percent alcohol by volume, and formula number, if 
applicable, of the nonbeverage wine or wine products received;
    (e) The volume, percent alcohol by volume, and formula number, if 
applicable, of the nonbeverage wine or wine products removed;
    (f) The name and address of the person to whom removed; however, on 
any individual sale of less than 80 liters the name and address of the 
purchaser need not be recorded; and
    (g) In the case of vinegar production, the acetic acid and ethyl 
alcohol content of the vinegar.


When the proprietor sends nonbeverage wine or wine products free of tax 
to an adjacent or contiguous premises operated by the proprietor, 
records required by paragraphs (e) and (g) of this section will be 
maintained at each location.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.308  Bottled or packed wine record.

    A proprietor who bottles, packs, or receives bottled or packed 
beverage wine in bond shall maintain a record, by tax class, as follows:
    (a) The date, kind of wine, the number and size of bottle or other 
container filled (if not available in another record), and volume of 
wine bottled or packed, received in bond, returned to bond, and removed, 
e.g., taxpaid removals, in bond removals, dumped to bulk or destroyed, 
breakage, used for tasting. The volume recorded as bottled for bottle 
fermented sparkling wine is determined after the disgorging and 
refilling process.
    (b) The label used on bottles or other containers will be shown in 
the record by using the ``Applicant's Serial No.'' which appears as item 
2 on the label approval form, TTB F 5100.31 or a similar system which 
will allow for verification of labels used on bottles or containers.
    (c) The fill tests and alcohol tests required by Sec.  24.255 for 
each lot of wine bottled or packed, or for each bottling or packing line 
operated each day, showing the date, type of test, item tested and the 
test results.
    (d) If a tax credit under 26 U.S.C. 5041(c) may be claimed, the 
record will be maintained in sufficient detail to insure that such a tax 
credit is properly claimed.

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 
55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31083, July 9, 1991]



Sec.  24.309  Transfer in bond record.

    A proprietor who transfers wine in bond shall prepare a transfer 
record. The transfer record will show:
    (a) The name, address and registry number of the proprietor;

[[Page 669]]

    (b) The name, address and registry number of the consignee;
    (c) The shipping date;
    (d) The kind of wine (class and type);
    (e) The alcohol content or the tax class;
    (f) The number containers larger than four liters and cases;
    (g) The serial numbers of cases (if any) or containers larger than 
four liters;
    (h) Any bulk container identification marks;
    (i) The volume shipped in gallons or liters; (if a tax credit under 
26 U.S.C. 5041(c) may be claimed, the record will be maintained in 
sufficient detail to insure that such a tax credit is properly claimed);
    (j) The serial number of any seal used;
    (k) For unlabeled bottled or packed wine, the registry number of the 
bottler or packer;
    (l) Information necessary for compliance with Sec.  24.315, e.g., 
the varietal, vintage, appellation of origin designation of the wine or 
any other information that may be stated on the label; and
    (m) Information as to any added substance or cellar treatment for 
which a label declaration is required for the finished product, or any 
other cellar treatment for which limitations are prescribed in this 
part, e.g., amount of decolorizing material used and kind and quantity 
of acid used. (Sec 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 
U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 
55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31083, July 9, 1991]



Sec.  24.310  Taxpaid removals from bond record.

    A proprietor removing wine from bond for consumption or sale on 
determination of tax shall maintain a record of wine removed at the time 
of removal either to taxpaid wine premises, taxpaid wine bottling house 
premises, or for direct shipment. The record will show the date of 
removal, the name and address of the person to whom shipped, and the 
volume, kind (class and type), and alcohol content of the wine. However, 
on any individual sale of less than 80 liters, the name and address of 
the purchaser need not be recorded. The proprietor who removes taxpaid 
bulk wine to another wine premises shall prepare the shipping record and 
follow the procedures prescribed by Sec.  24.281. The volume of wine 
removed taxpaid will be summarized daily by tax class in wine gallons to 
the nearest tenth gallon. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as 
amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31083, July 9, 1991]



Sec.  24.311  Taxpaid wine record.

    A proprietor who has taxpaid United States or foreign wine on 
taxpaid wine premises or on taxpaid wine bottling house premises shall 
maintain records as follows:
    (a) Record of receipts. (1) The name and address of the person or 
wine premises from whom received;
    (2) The registry number (if any) of the wine premises from which 
received;
    (3) The date of receipt;
    (4) The kind of wine (class, type and, in the case of foreign wine, 
country of origin);
    (5) Alcohol content or tax class of the wine; and,
    (6) The volume of wine received in liters and gallons.
    (b) Record of removals. (1) The name and address of the person to 
whom removed; however, on any individual sale of less than 80 liters, 
the name and address of the purchaser need not be recorded;
    (2) The date of removal;
    (3) The kind of wine (class, type and, in the case of foreign wine 
or a blend of United States and foreign wine, country of origin); and
    (4) The volume of wine shipped in liters or gallons.
    (c) Record of cases or containers filled. (1) The date the cases or 
containers were filled;
    (2) The kind (class, type, and in the case of foreign wine or a 
blend of United States and foreign wine, country of origin) of wine 
bottled or packed;

[[Page 670]]

    (3) The number of the tank used to fill the bottles or other 
containers;
    (4) The size of bottles or other containers and the number of cases 
or containers filled;
    (5) The serial number or date of fill marked on the cases or 
containers filled; and
    (6) The total volume of wine bottled or packed in liters or wine 
gallons. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 
5367)).

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31083, July 9, 1991]



Sec.  24.312  Unmerchantable wine returned to bond record.

    A proprietor shall maintain a record of any unmerchantable taxpaid 
wine returned to bond as follows:
    (a) The kind, volume, and tax class of the wine;
    (b) With regard to each tax class, the amount of tax previously paid 
or determined;
    (c) The location of the wine premises at which the wine was bottled 
or packed and, if known, the identity of the bonded wine premises from 
which removed on determination of tax;
    (d) The date the wine was returned to bond;
    (e) The serial numbers or other identifying marks on the cases or 
containers in which the wine was received; and
    (f) The final disposition of the wine. (Sec. 201, Pub. L. 85-859, 72 
Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31083, July 9, 1991]



Sec.  24.313  Inventory record.

    A proprietor who files monthly or quarterly reports shall prepare a 
record of the physical inventory of all wine and spirits in storage at 
the close of business for each tax year, or where a different cycle has 
been established, the inventory will be taken at the end of that annual 
period. Such proprietors may use an annual inventory period different 
from the period beginning July 1 and ending June 30 by submitting a 
notice to the appropriate TTB officer. However, proprietors who file 
quarterly reports must select an annual inventory period that begins on 
the first day of a calendar quarter. Proprietors who file reports on a 
calendar year basis under the provisions of Sec.  24.300(g) of this part 
shall take the physical inventory at the close of the calendar year. The 
inventory record will be retained on file with the proprietor's TTB F 
5120.17, Report of Bonded Wine Premises Operations, for the reporting 
period when the inventory was taken. If a proprietor who files monthly 
reports takes a complete inventory at other times during the year, 
losses disclosed will be reported on the TTB F 5120.17 and the inventory 
record will be maintained on file with the report for each month when an 
inventory was taken. The proprietor's inventory record will include:
    (a) Description of wine. (1) State the generic name (e.g., port, 
claret) or designate as a white, rose or red table or dessert wine; or
    (2) Wine intended to be marketed with a vintage date, varietal name, 
or geographical designation will be appropriately identified, e.g., 1977 
Napa Valley Pinot Noir; and
    (3) If the wine is other than grape wine, state the type, e.g., 
orange, honey.
    (b) Bulk containers. Tanks containing wine will be listed by tank 
number. Bulk containers which are barrels or puncheons containing the 
same kind of wine may be summarized, e.g., 10 barrels--red table wine 
500 gals.;
    (c) Cases, bottles and other similar containers. The total volume of 
one kind of wine in cases, bottles and similar containers may be entered 
as one item and appropriately identified;
    (d) Inventory summary. The volume of bulk and bottled or packed wine 
will be totaled separately in wine gallons or in liters, by tax class, 
and reported on the TTB F 5120.17. Spirits will also be totaled and 
reported on the TTB F 5120.17; and
    (e) Inventory record. All inventory pages will be numbered 
consecutively and the last inventory page will be dated and signed after 
the statement,

[[Page 671]]

``Under penalties of perjury, I declare that I have examined this 
inventory record and to the best of my knowledge and belief, it is a 
true, correct and complete record of all wine and spirits required to be 
inventoried.'' (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 
U.S.C. 5367, 5369))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; 
T.D. TTB-41, 71 FR 5603, Feb. 2, 2006]



Sec.  24.314  Label information record.

    A proprietor who removes bottled or packed wine with information 
stated on the label (e.g., varietal, vintage, appellation of origin, 
analytical data, date of harvest) shall have complete records so that 
the information appearing on the label may be verified by an TTB audit. 
A wine is not entitled to have information stated on the label unless 
the information can be readily verified by a complete and accurate 
record trail from the beginning source material to removal of the wine 
for consumption or sale. All records necessary to verify wine label 
information are subject to the record retention requirements of Sec.  
24.300(d). (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 
U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.315  Materials received and used record.

    (a) General. A proprietor who produces wine shall maintain a record 
showing the receipt and use or other disposition of basic winemaking 
materials received on wine premises. The record will show the date of 
receipt, the quantity received, the name and address from whom received, 
and the date of use or other disposition of the materials. For any 
material stored off wine premises, invoices or other commercial papers 
covering the purchase will also be kept available for inspection. Where 
grapes (or other fruit) received on wine premises are used in producing 
juice to be stored for future use or for removal, the record will show 
the quantity used and juice produced.
    (b) Concentrated fruit juice. When concentrated fruit juice or must 
is produced or received, the record will show the degrees Brix of the 
juice before and after concentration, the volume of juice before and 
after reconstitution, the volume of reconstitution water used for each 
dilution of the concentrate, and, if volatile fruit flavor was added, 
the kind and volume. Where fruit or juice is used to produce 
concentrated juice, the record will also show the quantity of fruit or 
volume of juice used. If the concentrated fruit juice is removed for use 
by another proprietor, a copy of the certificate required by Sec.  
24.180 will be retained. The record of concentrated fruit juice will 
contain the information necessary to determine compliance with the 
limitations prescribed in Sec.  24.180. Incomplete or inaccurate records 
of concentrated fruit juice may result in the wine produced from the 
concentrated fruit juice to be designated substandard.
    (c) Volatile fruit-flavor concentrate. If volatile fruit-flavor 
concentrate is received, the record will show the volume received, the 
fold, the percent of alcohol by volume, any loss in transit, and the use 
or other disposition of the volatile fruit-flavor concentrate. (Sec. 
201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.316  Spirits record.

    A proprietor who receives, stores, or uses spirits shall maintain a 
record of receipt and use. The record will show the date of receipt, 
from whom received, and the kind and proof gallons. The spirits record 
will also show by date and proof gallons the spirits used or removed 
from bonded wine premises and to whom. The proof gallons of spirits 
received, used, removed from bonded wine premises, and on hand will be 
summarized and the account balanced at the end of each reporting period 
and reported on the TTB F 5120.17. (Sec. 201,

[[Page 672]]

Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended, 1383, as 
amended (26 U.S.C. 5367, 5373))

(Approved by the Office of Management and Budget under control numbers 
1512-0216 and 1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31083, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993]



Sec.  24.317  Sugar record.

    A proprietor who receives, stores, or uses sugar shall maintain a 
record of receipt and use. The record will show the date of receipt, 
from whom received, and the kind and quantity. Invoices covering 
purchases will be retained. When sugar is used for chaptalization (Brix 
adjustment), amelioration or sweetening, the record will show the date, 
kind, and quantity used. The sugar record will also show sugar used in 
the production of allied products and any sugar removed from the wine 
premises. At the close of each reporting period, the account will be 
balanced and the quantity of each kind of sugar remaining on hand will 
be shown. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 
U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 
58 FR 19065, Apr. 12, 1993]



Sec.  24.318  Acid record.

    A proprietor who adds acid to correct a natural deficiency in juice 
or wine or to stabilize wine shall maintain a record showing date of 
use, the kind and quantity of acid used, the kinds and volume of juice 
or wine in which used, and, when used to correct natural deficiency, the 
fixed acid level of juice or of wine before and after the addition of 
acid. The record will account for all acids received and be supported by 
purchase invoices. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended 
(26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.319  Carbon dioxide record.

    A proprietor who uses carbon dioxide in still wine shall maintain a 
record of the laboratory tests conducted to establish compliance with 
the limitations prescribed in Sec.  24.245. (Sec. 201, Pub. L. 85-859, 
72 Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.320  Chemical record.

    A proprietor who uses chemicals, preservatives, or other such 
materials shall maintain a record of the purchase, receipt and 
disposition of these materials. The record will show the kinds and 
quantities received, the date of receipt, and the names and addresses 
from whom purchased. A record of use in juice or wine of any of these 
materials, except for filtering aids, inert fining agents, sulfur 
dioxide, carbon dioxide (except as provided in Sec.  24.319), nitrogen 
and oxygen, will be maintained, showing the kind, quantity, and date of 
use, and kind and volume of juice or wine in which used. (Sec. 201, Pub. 
L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31083, July 9, 1991]



Sec.  24.321  Decolorizing material record.

    A proprietor who treats juice or wine to remove excess color with 
activated carbon or any other decolorizing material shall maintain a 
record to show:
    (a) The date the decolorizing material is added to the juice or 
wine;
    (b) The type (e.g. grape variety or kind of wine) and volume of 
juice or wine treated with decolorizing material; and
    (c) The kind and quantity of decolorizing material used to treat the 
juice or wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 
U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.322  Allied products record.

    A proprietor who uses fruit, fruit juice or concentrated fruit juice 
in the production of allied products shall maintain a record of these 
materials in accordance with Sec.  24.315. The record

[[Page 673]]

will also show the production and disposition of other allied products. 
If sugar, acids, or chemicals are used in allied products, the receipt 
and use will also be recorded. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 
as amended (26 U.S.C. 5367))

(Approved by the Office of Management and Budget under control number 
1512-0298)



Sec.  24.323  Excise Tax Return form.

    A proprietor who removes wine subject to tax shall prepare an TTB F 
5000.24, Excise Tax Return, unless exempted under the provisions of 
Sec.  24.273. Any increase or decrease in tax due to previous return 
errors or for authorized credits will be shown on the return. The TTB F 
5000.24 will be prepared and filed by the proprietor in accordance with 
the instructions printed on the form. (August 16, 1954, ch. 736, 68A 
Stat. 775, as amended, 777, as amended, 391, as amended, 917, as amended 
(26 U.S.C. 5061, 7805))

(Approved by the Office of Management and Budget under control numbers 
1512-0467 and 1512-0492)



PART 25_BEER--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
25.1 Production and removal of beer.
25.2 Territorial extent.
25.3 Forms prescribed.
25.4 Related regulations.
25.5 OMB control numbers assigned under the Paperwork Reduction Act.
25.6 Delegations of the Administrator.

                          Subpart B_Definitions

25.11 Meaning of terms.

                           Standards for Beer

25.15 Materials for the production of beer.

                  Subpart C_Location and Use of Brewery

25.21 Restrictions on location.
25.22 Continuity of brewery.
25.23 Restrictions on use.
25.24 Storage of beer.
25.25 Operation of a tavern on brewery premises.

                  Subpart D_Construction and Equipment

                              Construction

25.31 Brewery buildings.

                                Equipment

25.35 Tanks.
25.36 Empty container storage.

                      Subpart E_Measurement of Beer

25.41 Measuring system required.
25.42 Testing of measuring devices.

                   Subpart F_Miscellaneous Provisions

25.51 Right of Entry and Examination.
25.52 Variations from requirements.

                                 Samples

25.53 Submissions of samples of fermented products.

                                Formulas

25.55 Formulas for fermented products.
25.56 Filing of formulas.
25.57 Formula information.
25.55 New and superseding formulas.

                  Subpart G_Qualification of a Brewery

                         Original Qualification

25.61 General requirements for notice.
25.62 Data for notice.
25.63 Notice of registration.
25.64 Maintenance of notice file.
25.65 Power of attorney.
25.66 Organizational documents.
25.67 [Reserved]
25.68 Description of brewery.

                  Changes After Original Qualification

25.71 Amended or superseding notices.
25.72 Change in proprietorship.
25.73 Change in partnership.
25.74 Change in stockholders.
25.75 Change in officers and directors.
25.76 [Reserved]
25.77 Change in location.
25.78 Change in premises.

                        Alternation of Operations

25.81 Alternation of brewery and bonded or taxpaid wine premises.

                       Discontinuance of Business

25.85 Notice of permanent discontinuance.

                 Subpart H_Bonds and Consents of Surety

25.91 Requirement for bond.
25.92 Consent of surety.
25.93 Penal sum of bond.
25.94 Strengthening bonds.
25.95 New bond.
25.96 Superseding bond.
25.97 Continuation certificate.
25.98 Surety or security.
25.99 Filing powers of attorney.

[[Page 674]]

        Disapproval or Termination of Bonds or Consents of Surety

25.101 Disapproval of bonds or consents of surety.
25.102 Termination of surety's liability.
25.103 Notice by surety for relief from liability under bond.
25.104 Termination of bonds.
25.105 Release of collateral security.

                         Subpart I_Special Taxes

                        Liability for Special Tax

25.111 Brewer's special tax.
25.111a Special tax rates.
25.111b Reduced rate of tax for small brewers.
25.112 Wholesaler's special tax.
25.113 Each place of business taxable.
25.114 Exemptions from dealer's special taxes.

                    Execution of Special Tax Returns

25.117 Special tax returns.
25.118 Preparation of TTB Form 5630.5.
25.119 Multiple locations and/or classes of tax.
25.120 Signing of TTB Forms 5630.5.

                     Employer Identification Numbers

25.121 Employer identification number.
25.122 Application for employer identification number.
25.123 Preparation and filing of IRS Form SS-4.

                           Special Tax Stamps

25.125 Issuance of special tax stamps.
25.126 Distribution of stamps for multiple locations.
25.127 Examination of special tax stamps.

                      Changes in Special Tax Stamps

25.131 Change in name.
25.132 Change in proprietorship.
25.133 Persons having right of succession.
25.134 Change in location.

                   Subpart J_Marks, Brands, and Labels

25.141 Barrels and kegs.
25.142 Bottles.
25.143 Cases.
25.144 Rebranding barrels and kegs.
25.145 Tanks, vehicles, and vessels.

                          Subpart K_Tax on Beer

                            Liability for Tax

25.151 Rate of tax.
25.152 Reduced rate of tax for certain brewers.
25.153 Persons liable for tax.

                          Determination of Tax

25.155 Types of containers.
25.156 Determination of tax on keg beer.
25.157 Determination of tax on bottled beer.
25.158 Tax computation for bottled beer.
25.159 Time of tax determination and payment; offsets.
25.160 Tax adjustment for brewers who produce more than 2,000,000 
          barrels of beer.

                Preparation and Remittance of Tax Returns

25.163 Method of tax payment.
25.164 Quarterly and semimonthly returns.
25.164a Special September rule for taxes due by semimonthly return.
25.165 Payment of tax by electronic fund transfer.
25.166 Payment of reduced rate of tax.
25.167 Notice of brewer to pay reduced rate of tax.
25.168 Employer identification number.

                            Prepayment of Tax

25.173 Brewer in default.
25.174 Bond not sufficient.
25.175 Prepayment of tax.

                           Failure To Pay Tax

25.177 Evasion of or failure to pay tax; failure to file a tax return.

                Subpart L_Removals Without Payment of Tax

              Transfer to Another Brewery of Same Ownership

25.181 Eligibility.
25.182 Kinds of containers.
25.183 Determination of quantity transferred.
25.184 Losses in transit.
25.185 Mingling.
25.186 Record of beer transferred.

                 Removal of Beer Unfit for Beverage Use

25.191 General.
25.192 Removal of sour or damaged beer.

         Removals for Analysis, Research, Development or Testing

25.195 Removals for analysis.
25.196 Removals for research, development or testing.

         Removal of Beer to a Contiguous Distilled Spirits Plant

25.201 Removal by pipeline.

                               Exportation

25.203 Exportation without payment of tax.

[[Page 675]]

                     Beer for Personal or Family Use

25.205 Production.
25.206 Removal of beer.
25.207 Removal from brewery for personal or family use.

                   Subpart M_Beer Returned to Brewery

25.211 Beer returned to brewery.
25.212 Beer returned to brewery from which removed.
25.213 Beer returned to brewery other than that from which removed.

                     Subpart N_Voluntary Destruction

25.221 Voluntary destruction of beer.
25.222 Notice of brewer.
25.223 Destruction of beer off brewery premises.
25.224 Refund or adjustment of tax.
25.225 Destruction of taxpaid beer which was never removed from brewery 
          premises.

              Subpart O_Beer Purchased From Another Brewer

25.231 Finished beer.
25.232 Basic permit.

                        Subpart P_Cereal Beverage

25.241 Production.
25.242 Markings.

         Subpart Q_Removal of Brewer's Yeast and Other Articles

25.251 Authorized removals.
25.252 Records.

                       Subpart R_Beer Concentrate

25.261 General.
25.262 Restrictions and conditions on processes of concentration and 
          reconstitution.
25.263 Production of concentrate and reconstitution of beer.
25.264 Transfer between breweries.

                     Subpart S_Pilot Brewing Plants

25.271 General.
25.272 Application.
25.273 Action on application.
25.274 Bond.
25.275 Special tax.
25.276 Operations and records.
25.277 Discontinuance of operations.

     Subpart T_Refund or Adjustment of Tax or Relief From Liability

25.281 General.
25.282 Beer lost by fire, theft, casualty, or act of God.
25.283 Claims for refund of tax.
25.284 Adjustment of tax.
25.285 Refund of beer tax excessively paid.
25.286 Claims for remission of tax on beer lost in transit between 
          breweries.

                      Subpart U_Records and Reports

25.291 Records.
25.292 Daily records of operations.
25.293 Record of ballings and alcohol content.
25.294 Inventories.
25.295 Record of unsalable beer.
25.296 Record of beer concentrate.
25.297 Brewer's Report of Operations, Form 5130.9.
25.298 Excise tax return, Form 5000.24.
25.299 Execution under penalties of perjury.
25.300 Retention and preservation of records.
25.301 Photographic copies of records.

    Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061, 
5091, 5111, 5113, 5142, 5143, 5146, 5148, 5222, 5401-5403, 5411-5417, 
5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091, 6109, 
6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806, 7011, 7342, 
7606, 7805; 31 U.S.C. 9301, 9303-9308.

    Source: T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 25 appear by T.D. ATF-
437, 66 FR 5478, 5479, Jan. 19, 2001.



                     Subpart A_Scope of Regulations



Sec.  25.1  Production and removal of beer.

    The regulations in this part relate to beer and cereal beverages and 
cover the location, construction, equipment, operations and 
qualifications of breweries and pilot brewing plants.



Sec.  25.2  Territorial extent.

    This part applies to the several States of the United States and the 
District of Columbia.



Sec.  25.3  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part, including bonds, applications, notices, reports, 
returns, and records. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part. The

[[Page 676]]

form will be filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986, as 
amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-437, 66 FR 5478, 
Jan. 19, 2001; T.D. TTB-44, 71 FR 16941, Apr. 4, 2006]



Sec.  25.4  Related regulations.

    Regulations relating to this part are listed below:

27 CFR Part 7--Labeling and Advertising of Malt Beverages.
27 CFR Part 28--Exportation of Alcohol.
27 CFR Part 29--Stills and Miscellaneous Regulations.
31 CFR Part 225--Acceptance of Bonds, Notes, or Other Obligations Issued 
or Guaranteed by the United States as Security in Lieu of Surety or 
Sureties on Penal Bonds.

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-462, 66 
FR 42737, Aug. 15, 2001; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004]



Sec.  25.5  OMB control numbers assigned under the Paperwork Reduction Act.

    (a) Purpose. This section collects and displays the control numbers 
assigned to information collection requirements by the Office of 
Management and Budget contained in 27 CFR Part 25 under the Paperwork 
Reduction Act of 1980, Pub. L. 96-511.
    (b) Display, OMB control number 1512-0045. OMB control number 1512-
0045 is assigned to the following sections in 27 CFR Part 25: Sec. Sec.  
25.23, 25.25, 25.52, 25.61, 25.62, 25.64, 25.66, 25.67, 25.68, 25.71, 
25.72, 25.73, 25.74, 25.75, 25.76, 25.77, 25.78, 25.81, 25.85, 25.103, 
25.114, 25.141, 25.142, 25.144, 25.158, 25.167, 25.184, 25.213, 25.222, 
25.225, 25.272, 25.273, 25.277, 25.282, 25.299.
    (c) Display, OMB control number 1512-0052. OMB control number 1512-
0052 is assigned to the following sections in 27 CFR Part 25: Sec. Sec.  
25.296(b), 25.297.
    (d) Display, OMB control number 1512-0079. OMB control number 1512-
0079 is assigned to the following section in 27 CFR Part 25: Sec.  
25.65.
    (e) Display, OMB control number 1512-0141. OMB control number 1512-
0141 is assigned to the following sections in 27 CFR Part 25: Sec. Sec.  
25.281, 25.282, 25.286.
    (f) Display, OMB control number 1512-0333. OMB control number 1512-
0333 is assigned to the following sections in 27 CFR Part 25: Sec. Sec.  
25.42, 25.142, 25.186, 25.192, 25.195, 25.196, 25.211, 25.252, 25.264, 
25.276, 25.284, 25.291, 25.292, 25.293, 25.294, 25.295, 25.296(a), 
25.300, 25.301.
    (g) Display, OMB control number 1512-0457. OMB control number 1512-
0457 is assigned to the following section in 27 CFR Part 25: Sec.  
25.165.
    (h) Display, OMB control number 1512-0467. OMB control number 1512-
0467 is assigned to the following sections in 27 CFR Part 25: Sec. Sec.  
25.122, 25.160, 25.163, 25.164, 25.165, 25.166, 25.167, 25.168, 25.175, 
25.224, 25.284, 25.285, 25.298.
    (i) Display, OMB control number 1512-0472. OMB control number 1512-
0472 is assigned to the following sections in 27 CFR Part 25: Sec. Sec.  
25.111, 25.112, 25.113, 25.114, 25.117, 25.118, 25.119, 25.121, 25.126, 
25.127, 25.131, 25.132, 25.133, 25.134.
    (j) Display, OMB control number 1512-0478. OMB control number 1512-
0478 is assigned to the following sections in 27 CFR Part 25: Sec. Sec.  
25.24, 25.35, 25.141, 25.142, 25.143, 25.145, 25.192, 25.196, 25.231, 
25.242, 25.251, 25.263.

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986; 
T.D. ATF-268, 53 FR 8628, Mar 16, 1988]



Sec.  25.6  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.25, Delegation of the Administrator's 
Authorities in 27 CFR Part 25, Beer. You may obtain a copy of this order 
by accessing the TTB Web site (http://www.ttb.gov) or by mailing a 
request to the Alcohol and Tobacco Tax and Trade Bureau, National 
Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16941, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  25.11  Meaning of terms.

    When used in this part, where not otherwise distinctly expressed or 
manifestly incompatible with the intent

[[Page 677]]

thereof, terms have the meanings given in this section.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.25, Delegation of the Administrator's Authorities in 27 CFR Part 
25, Beer.
    Balling. The percent by weight of dissolved solids at 60 [deg]F. 
present in wort and beer, usually determined by a balling saccharometer.
    Bank. Any commercial bank.
    Banking day. Any day during which a bank is open to the public for 
carrying on substantially all its banking functions.
    Barrel. When used as a unit of measure, the quantity equal to 31 
U.S. gallons. When used as a container, a consumer package or keg 
containing a quantity of beer listed in Sec.  25.156, or other size 
authorized by the appropriate TTB officer.
    Beer. Beer, ale, porter, stout, and other similar fermented 
beverages (including sak[eacute] and similar products) of any name or 
description containing one-half of one percent or more of alcohol by 
volume, brewed or produced from malt, wholly or in part, or from any 
substitute for malt. Standards for the production of beer appear in 
Sec.  25.15.
    Bottle. A bottle, can or similar container.
    Bottling. The filling of bottles, cans, and similar containers.
    Brewer. Any person who brews beer (except a person who produces only 
beer exempt from tax under 26 U.S.C. 5053(e)) and any person who 
produces beer for sale.
    Brewery. The land and buildings described in the Brewer's Notice, 
Form 5130.10, where beer is to be produced and packaged.
    Brewing. The production of beer for sale.
    Business day. The 24-hour cycle of operations in effect at the 
brewery and described on the Brewer's Notice, Form 5130.10.
    Calendar quarter. A 3-month period during the year as follows: 
January 1 through March 31; April 1 through June 30; July 1 through 
September 30; and October 1 through December 31.
    Cereal beverage. A beverage, produced either wholly or in part from 
malt (or a substitute for malt), and either fermented or unfermented, 
which contains, when ready for consumption, less than one-half of 1 
percent of alcohol by volume.
    Commercial bank. A bank, whether or not a member of the Federal 
Reserve System, which has access to the Federal Reserve Communications 
System (FRCS) or Fedwire. The ``FRCS'' or ``Fedwire'' is a 
communications network that allows Federal Reserve System member banks 
to effect a transfer of funds for their customers (or other commercial 
banks) to the Treasury Account at the Federal Reserve Bank of New York.
    Concentrate. Concentrate produced from beer by the removal of water 
under the provisions of subpart R of this part. The processes of 
concentration of beer and reconstitution of beer are considered 
authorized processes in the production of beer.
    Director of the service center. A Director of an Internal Revenue 
Service Center.
    District Director. A district director of internal revenue.
    Electronic fund transfer or EFT. Any transfer of funds made by a 
brewer's commercial bank, either directly or through a correspondent 
banking relationship, via the Federal Reserve Communications System 
(FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of 
New York.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return, claim, form, or other document or, when no form 
of declaration is prescribed, with the declaration: ``I declare under 
the penalties of perjury that this ------------ (insert type of document 
such as statement, report, certificate, application, claim, or other 
document), including the documents submitted in support thereof, has 
been examined by men and, to the best of

[[Page 678]]

my knowledge and belief, is true, correct and complete.''
    Fiscal year. The period which begins October 1 and ends on the 
following September 30.
    Gallon. The liquid measure containing 231 cubic inches.
    Losses. Known quantities of beer lost due to breakage, casualty, or 
other unusual cause.
    Package. A bottle, can, keg, barrel, or other original consumer 
container.
    Packaging. The filling of any package.
    Person. An individual, trust, estate, partnership, association, 
company, or corporation.
    Racking. The filling of kegs or barrels.
    Removed for consumption or sale. Except when used with respect to 
beer removed without payment of tax as authorized by law, (a) the sale 
and transfer of possession of beer for consumption at the brewery, or 
(b) any removal of beer from the brewery.
    Secretary. The Secretary of the Treasury or his or her delegate.
    Service center. An Internal Revenue Service Center in any of the 
Internal Revenue regions.
    Shortage. An unaccounted for discrepancy (missing quantity) of beer 
disclosed by physical inventory.
    This chapter. Title 27, Code of Federal Regulations, Chapter I (27 
CFR Chapter I).
    Treasury account. The Department of the Treasury's General Account 
at the Federal Reserve Bank of New York.
    U.S.C. The United States Code.
    Wort. The product of brewing before fermentation which results in 
beer.

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40357, July 28, 1993; T.D. ATF-437, 66 FR 5478, Jan. 19, 2001; TTB 
T.D.-21, 70 FR 235, Jan. 3, 2005; T.D. TTB-44, 71 FR 16941, Apr. 4, 
2006]

                           Standards for Beer



Sec.  25.15  Materials for the production of beer.

    (a) Beer must be brewed from malt or from substitutes for malt. Only 
rice, grain of any kind, bran, glucose, sugar, and molasses are 
substitutes for malt. In addition, you may also use the following 
materials as adjuncts in fermenting beer: honey, fruit, fruit juice, 
fruit concentrate, herbs, spices, and other food materials.
    (b) You may use flavors and other nonbeverage ingredients containing 
alcohol in producing beer. Flavors and other nonbeverage ingredients 
containing alcohol may contribute no more than 49% of the overall 
alcohol content of the finished beer. For example, a finished beer that 
contains 5.0% alcohol by volume must derive a minimum of 2.55% alcohol 
by volume from the fermentation of ingredients at the brewery and may 
derive not more than 2.45% alcohol by volume from the addition of 
flavors and other nonbeverage ingredients containing alcohol. In the 
case of beer with an alcohol content of more than 6% by volume, no more 
than 1.5% of the volume of the beer may consist of alcohol derived from 
added flavors and other nonbeverage ingredients containing alcohol.

[T.D. TTB-21, 70 FR 235, Jan. 3, 2005]



                  Subpart C_Location and Use of Brewery



Sec.  25.21  Restrictions on location.

    A brewery may not be established or operated in any dwelling house 
or on board any vessel or boat, or in any building or on any premises 
where the revenue will be jeopardized or the effective administration of 
this part will be hindered.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402))



Sec.  25.22  Continuity of brewery.

    Brewery premises will be unbroken except that they may be separated 
by public passageways, streets, highways, waterways, carrier rights-of-
way, or partitions. If the brewery premises are separated, the parts 
will abut on the dividing medium and be adjacent to each other. if the 
brewer has facilities for loading, or for case packing or storage which 
are located within reasonable proximity to the brewery, the appropriate 
TTB officer may approve these facilities as part of the brewery if the 
revenue will not be jeopardized.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402))

[[Page 679]]



Sec.  25.23  Restrictions on use.

    (a) Use of brewery in production of beer or cereal beverage. A 
brewery may be used only for the following purposes involving the 
production of beer or cereal beverages:
    (1) For producing, packaging and storing beer, cereal beverages, 
vitamins, ice, malt, malt syrup, and other by-products of the brewing 
process, or soft drinks and other nonalcoholic beverages;
    (2) For processing spent grain, carbon dioxide, and yeast; and
    (3) For storing packages and supplies necessary or connected to 
brewery operations.
    (b) Other authorized uses. A brewer may use a brewery for other 
purposes, not involving the production of beer or cereal beverage, upon 
approval from the appropriate TTB officer, if the purposes:
    (1) Require the use of by-products or waste from the production of 
beer;
    (2) Utilize buildings, rooms, areas, or equipment not fully employed 
in the production or packaging of beer;
    (3) Are reasonably necessary to realize the maximum benefit from the 
premises and equipment and reduce the overhead of the brewery;
    (4) Are in the public interest because of emergency conditions;
    (5) Involve experiments or research projects related to equipment, 
materials, processes, products, by-products, or waste of the brewery; or
    (6) Involve operation of a tavern on brewery premises in accordance 
with Sec.  25.25.
    (c) Application. Except as provided in Sec.  25.25 for operation of 
a tavern on brewery premises, a brewer desiring to use a brewery for 
other purposes shall submit to the appropriate TTB officer , an 
application listing the purposes. The appropriate TTB officer will 
approve the application if the use for other purposes will not 
jeopardize the revenue or impede the effective administration of this 
part and is not contrary to specific provisions of law.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-268, 53 
FR 8628, Mar 16, 1988]



Sec.  25.24  Storage of beer.

    (a) Taxpaid beer. Beer of a brewer's own production on which the tax 
has been paid or determined may not be stored in the brewery, except as 
provided in Sec.  25.25 or Sec.  25.213. Beer produced by other brewers 
may be stored at the brewery under the following conditions:
    (1) Taxpaid beer will be segregated in such a manner as to preclude 
mixing with nontaxpaid beer;
    (2) If required by Part 1 of this chapter, the brewer shall have a 
wholesalers or importers basic permit under the Federal Alcohol 
Administration Act, and keep records of the taxpaid beer as a wholesaler 
or importer under part 31 of this chapter.
    (3) Taxpaid beer may be stored in packages;
    (4) Taxpaid beer may not be relabeled;
    (5) Taxpaid beer may not be shown on required brewery records;
    (6) The brewer shall purchase a special tax stamp as a wholesaler, 
if required by part 31 of this chapter; and
    (7) The appropriate TTB officer may require physical segregation of 
taxpaid beer, or marking to show the status of taxpaid beer, if 
necessary to protect the revenue.
    (b) Untaxpaid beer. Packaged beer on which tax has not been paid or 
determined may be stored in any suitable location in the brewery.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-268, 53 
FR 8628, Mar 16, 1988; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]



Sec.  25.25  Operation of a tavern on brewery premises.

    (a) General. A brewer desiring to operate a tavern as an alternate 
use of brewery premises, shall submit a Brewer's Notice, Form 5130.10 
containing the information required by paragraph (b) of this section. If 
the appropriate TTB officer finds that the operation of the tavern on 
brewery premises will not jeopardize the revenue or impede the effective 
administration of this part and is not contrary to specific provisions 
of law, the approval of the Brewer's Notice, Form 5130.10 shall

[[Page 680]]

constitute approval of the alternate use of brewery premises, in lieu of 
the application required by Sec.  25.23. As used in this section, 
``tavern'' means a portion of brewery premises where beer is sold to 
consumers. Food, and/or taxpaid wine, and/or taxpaid distilled spirits 
may also be sold at a tavern operated on brewery premises. Taxpaid beer 
produced by other brewers may be received, stored and sold on brewery 
premises in accordance with Sec.  25.24.
    (b) Brewer's Notice. In preparing the Brewer's Notice, Form 5130.10, 
the applicant shall show the following information, in addition to the 
information required by the form:
    (1) The applicant shall identify the portion of the brewery which 
will be operated as a tavern by providing a diagram or narrative 
description of the boundaries of the tavern. The diagram or description 
shall identify areas of the brewery which are accessible to the public 
and areas which are not. The applicant shall describe security measures 
to be used to segregate public areas from non-public areas.
    (2) The applicant shall describe in detail the method to be used for 
measuring beer for the purposes of tax determination.
    (3) The applicant shall identify the tanks which will periodically 
contain tax-determined beer, and any other areas where tax-determined 
beer will be stored.
    (c) Procedures. The following procedures shall apply to operation of 
a tavern on brewery premises:
    (1) The brewery shall have a suitable method for measurement of the 
beer, such as a meter or gauge glass. Tax determination shall consist of 
the measurement of the beer and the preparation of the brewer's record 
of tax determination, required by Sec.  25.292(a)(8). The taxes shall be 
determined prior to the time that the beer is dispensed into a container 
for consumption.
    (2) If the brewer uses one or more tanks for tax determination, the 
following procedures shall apply:
    (i) Each such tank shall be durably marked with the words ``tax-
determination tank'';
    (ii) The taxes shall be determined each time beer is added to a tax-
determination tank; and
    (iii) The brewer may never simultaneously pump into and out of a 
tax-determination tank.
    (3) A brewer qualified under this section may store, on brewery 
premises, tax-determined beer which is intended for sale at a tavern 
operated on brewery premises, in accordance with this section. The 
prohibition of Sec.  25.24 shall not apply to such tax-determined beer.
    (4) Beer consumed by employees and visitors in the brewery's tavern 
shall be beer on which the tax has been paid or determined.

[T.D. ATF-268, 53 FR 8628, Mar 16, 1988]



                  Subpart D_Construction and Equipment

                              Construction



Sec.  25.31  Brewery buildings.

    Brewery buildings shall be arranged and constructed to afford 
adequate protection to the revenue and to facilitate inspection by 
appropriate TTB officers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402))

                                Equipment



Sec.  25.35  Tanks.

    Each stationary tank, vat, cask or other container used, or intended 
for use, as a receptacle for wort, beer or concentrate produced from 
beer shall:
    (a) Be durably marked with a serial number and capacity; and
    (b) Be equipped with a suitable measuring device. The brewer may 
provide meters or other suitable portable devices for measuring contents 
of tanks or containers in lieu of providing each tank or container with 
a measuring device.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))



Sec.  25.36  Empty container storage.

    Empty barrels, kegs, bottles, other containers, or other supplies 
stored in the brewery will be segregated from filled containers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))

[[Page 681]]



                      Subpart E_Measurement of Beer



Sec.  25.41  Measuring system required.

    The brewer shall accurately and reliably measure the quantity of 
beer transferred from the brewery cellars for bottling and for racking. 
The brewer may use a measuring device, such as a meter or gauge glass, 
or any other suitable method.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))



Sec.  25.42  Testing of measuring devices.

    (a) General requirements. If a measuring device such as a meter or 
gauge glass is used to measure beer, the brewer shall periodically test 
the measuring device and adjust or repair it, if necessary. The brewer 
shall keep records of tests available for inspection by appropriate TTB 
officers. Records of tests will include:
    (1) Date of test;
    (2) Identity of meter or measuring device;
    (3) Result of test; and
    (4) Corrective action taken, if necessary.
    (b) Requirements for beer meters. The allowable variation for beer 
meters as established by testing may not exceed 0.5 percent. If a meter test discloses an error in 
excess of the allowable variation, the brewer shall immediately adjust 
or repair the meter. Adjustments will reduce the error to as near zero 
as practicable.
    (c) Authority to require tests. If the appropriate TTB officer has 
reason to believe that the accuracy or reliability of a measuring device 
is not being properly maintained, he or she may require the brewer to 
test the measuring device and, if necessary, adjust or repair the 
measuring device.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))



                   Subpart F_Miscellaneous Provisions



Sec.  25.51  Right of Entry and Examination.

    An appropriate TTB officer may enter, during normal business hours, 
a brewery or other place where beer is stored and may, when the premises 
are open at other times, enter those premises in the performance of 
official duties. Appropriate TTB officers may make inspections as the 
appropriate TTB officer deems necessary to determine that operations are 
conducted in compliance with the law and this part. The owner of any 
building or place where beer is produced, made, or kept, or person 
having charge over such premises, who refuses to admit an appropriate 
TTB officer acting under 26 U.S.C. 7606, or who refuses to permit an 
appropriate TTB officer to examine beer must, for each refusal, forfeit 
$500.

[T.D. ATF-437, 66 FR 5478, Jan. 19, 2001]



Sec.  25.52  Variations from requirements.

    (a) Exceptions to construction, equipment and methods of 
operations--(1) General. The appropriate TTB officer may approve details 
of construction, equipment or methods of operations, in lieu of those 
specified in this part. The brewer shall show that it is impracticable 
to conform to the prescribed specification, and that the proposed 
variance:
    (i) Will afford the protection to the revenue intended by the 
specifications in this part;
    (ii) Will not hinder the effective administration of this part, and
    (iii) Is not contrary to any provision of law.
    (2) Application. A brewer who proposes to employ methods of 
operations or construction or equipment other than as provided in this 
part shall submit an application to the appropriate TTB officer. The 
application will describe the proposed variation and state the need for 
it. The brewer shall submit drawings or photographs if necessary to 
describe the proposed variation.
    (3) Approval by appropriate TTB officer. The appropriate TTB officer 
may approve the use of an alternate method or procedure if:
    (i) The brewer shows good cause for its use;
    (ii) It is consistent with the purpose and effect of the procedure 
prescribed by this part and provides equal security to the revenue;
    (iii) It is not contrary to law; and
    (iv) It will not cause an increase in cost to the Government and 
will not

[[Page 682]]

hinder the effective administration of this part.
    (4) Exceptions. The appropriate TTB officer may not authorize an 
alternate method or procedure relating to the giving of any bond, or to 
the assessment, payment, or collection of tax.
    (5) Conditions of approval. A brewer may not employ an alternate 
method or procedure until the appropriate TTB officer has approved its 
use. The brewer shall, during the terms of the authorization of an 
alternate method or procedure, comply with the terms of the approved 
application.
    (b) Emergency variations from requirements--(1) Application. When an 
emergency exists, a brewer may apply to the appropriate TTB officer for 
a variation from the requirements of this part relating to construction, 
equipment, and methods of operation. The brewer shall describe the 
proposed variation and set forth the reasons for using it.
    (2) Approval. The appropriate TTB officer may approve an emergency 
variation from requirements if:
    (i) An emergency exists;
    (ii) The variation from the requirements is necessary;
    (iii) It will afford the same security and protection to the revenue 
as intended by the specific regulations;
    (iv) It will not hinder the effective administration of this part; 
and
    (v) It is not contrary to law.
    (3) Conditions of approval. A brewer may not employ an emergency 
variation from the requirements until the appropriate TTB officer has 
approved its use. Approval of variations from requirements are 
conditioned upon compliance with the conditions and limitations set 
forth in the approval.
    (c) Automatic termination of approval. If the brewer fails to comply 
in good faith with the procedures, conditions or limitations set forth 
in the approval, authority for the variation from requirements is 
automatically terminated and the brewer is required to comply with 
prescribed requirements of regulations.
    (d) Withdrawal of approval. The appropriate TTB officer may withdraw 
approval of an alternate method or procedure, approved under paragraph 
(a) or (b) of this section, if the appropriate TTB officer finds that 
the revenue is jeopardized or the effective administration of this part 
is hindered by the approval.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended, 1396, as amended 
(26 U.S.C. 5552, 5556))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]

                                 Samples

    Source: Sections 25.53 and 25.55 through 25.58 appear at 70 FR 235, 
Jan. 3, 2005, unless otherwise noted.



Sec.  25.53  Submissions of samples of fermented products.

    The appropriate TTB officer may, at any time, require you to submit 
samples of:
    (a) Cereal beverage, sak[eacute], or any fermented product produced 
at the brewery,
    (b) Materials used in the production of cereal beverage, 
sak[eacute], or any fermented product; and
    (c) Cereal beverage, sak[eacute], or any fermented product, in 
conjunction with the filing of a formula.

(26 U.S.C. 5415, 5555, 7805(a))

                                Formulas



Sec.  25.55  Formulas for fermented products.

    (a) For what fermented products must a formula be filed? You must 
file a formula for approval by TTB if you intend to produce:
    (1) Any fermented product that will be treated by any processing, 
filtration, or other method of manufacture that is not generally 
recognized as a traditional process in the production of a fermented 
beverage designated as ``beer,'' ``ale,'' ``porter,'' ``stout,'' 
``lager,'' or ``malt liquor.'' For purposes of this paragraph:
    (i) Removal of any volume of water from beer, filtration of beer to 
substantially change the color, flavor, or character, separation of beer 
into different components, reverse osmosis, concentration of beer, and 
ion exchange treatments are examples of non-traditional processes for 
which you must file a formula.

[[Page 683]]

    (ii) Pasteurization, filtration prior to bottling, filtration in 
lieu of pasteurization, centrifuging for clarity, lagering, carbonation, 
and blending are examples of traditional processes for which you do not 
need to file a formula.
    (iii) If you have questions about whether or not use of a particular 
process not listed in this section requires the filing of a formula, you 
may request a determination from TTB in accordance with paragraph (f) of 
this section.
    (2) Any fermented product to which flavors or other nonbeverage 
ingredients (other than hop extract) containing alcohol will be added.
    (3) Subject to paragraph (f) of this section, any fermented product 
to which coloring or natural or artificial flavors will be added.
    (4) Subject to paragraph (f) of this section, any fermented product 
to which fruit, fruit juice, fruit concentrate, herbs, spices, honey, 
maple syrup, or other food materials will be added.
    (5) Sak[eacute], including flavored sak[eacute] and sparkling 
sak[eacute].
    (b) Are separate formulas required for different products? (1) You 
must file a separate formula for approval for each different fermented 
product for which a formula is required.
    (2) You may file a formula for a beer base to be used in the 
production of one or more other fermented products. The beer base must 
conform to the standards set forth in Sec.  25.15.
    (c) When must I file a formula? (1) Except as provided in paragraph 
(c)(2) of this section, you may not produce a fermented product for 
which a formula is required until you have filed and received approval 
of a formula for that product.
    (2) You may, for research and development purposes (including 
consumer taste testing), produce a fermented product without an approved 
formula, but you may not sell or market this product until you receive 
approval of the formula for it.
    (d) How long is my formula approval valid? Your formula approved 
under this section remains in effect until: you supersede it with a new 
formula; you voluntarily surrender the formula; TTB cancels or revokes 
the formula; or the formula is revoked by operation of law or 
regulation.
    (e) Are my previously approved statements of process valid? Your 
statements of process approved before January 3, 2006 are considered 
approved formulas under this section, provided that any finished product 
that could be made under the statement of process would be in compliance 
with the provisions of this part. You do not need to submit a formula 
for approval if a statement of process that remains valid covers the 
product.
    (f) Determinations by TTB regarding specific processes and 
ingredients. (1) The appropriate TTB officer may determine whether or 
not use of a process not listed in paragraph (a)(1) of this section 
requires you to file a formula for approval. The appropriate TTB officer 
may also exempt the use of a particular coloring, flavoring, or food 
material from the formula filing requirement of paragraph (a)(3) or 
paragraph (a)(4) of this section upon a finding that the coloring, 
flavoring, or food material in question is generally recognized as a 
traditional ingredient in the production of a fermented beverage 
designated as ``beer,'' ``ale,'' ``porter,'' ``stout,'' ``lager,'' or 
``malt liquor.''
    (2) You may request a determination from TTB on whether or not the 
use of a process not listed in paragraph (a)(1) of this section will 
require the filing of a formula or whether the use of a particular 
coloring, flavoring or food material may be exempted from the formula 
filing requirement of paragraph (a)(3) or paragraph (a)(4) of this 
section. You should mail your request to the Assistant Chief, 
Advertising, Labeling and Formulation Division, Alcohol and Tobacco Tax 
and Trade Bureau, 1310 G Street, NW., Washington, DC 20220.
    (i) When requesting a determination as to whether a process is 
subject to the formula filing and approval requirement, the request must 
include:
    (A) A detailed description of the proposed process;
    (B) Evidence establishing that the proposed process is generally 
recognized as a traditional process in the production of a fermented 
beverage

[[Page 684]]

designated as ``beer,'' ``ale,'' ``porter,'' ``stout,'' ``lager,'' or 
``malt liquor''; and
    (C) An explanation of the effect of the proposed process on the 
production of a fermented product.
    (ii) When requesting an exemption from the formula filing 
requirement in paragraph (a)(3) or paragraph (a)(4) of this section 
regarding coloring, flavoring, or food material ingredients, the request 
must include the following information:
    (A) A description of the proposed ingredient;
    (B) Evidence establishing that the proposed ingredient is generally 
recognized as a traditional ingredient in the production of a fermented 
beverage designated as ``beer,'' ``ale,'' ``porter,'' ``stout,'' 
``lager,'' or ``malt liquor''; and
    (C) An explanation of the effect of the proposed ingredient in the 
production of a fermented product.



Sec.  25.56  Filing of formulas.

    (a) What are the general requirements for filing a formula? (1) You 
must file your formula in writing. Your formula must identify each 
brewery where the formula applies by including each brewery name, 
address, and registry number.
    (2) You must serially number each formula, commencing with ``1'' and 
continuing in numerical sequence.
    (3) You must date and sign each formula.
    (4) You must file two copies of each formula with TTB.
    (b) Where do I file a formula? File your formula with the Assistant 
Chief, Advertising, Labeling and Formulation Division, Alcohol and 
Tobacco Tax and Trade Bureau, 1310 G Street, NW., Washington, DC 20220.

(26 U.S.C. 5401, 7805)



Sec.  25.57  Formula information.

    (a) Ingredient information. (1) For each formula you must list each 
separate ingredient and the specific quantity used, or a range of 
quantities used. You may include optional ingredients in a formula if 
they do not impact the labeling or identity of the finished product.
    (2) For fermented products containing flavorings you must list for 
each formula: The name of the flavor; the product number or TTB drawback 
number and approval date of the flavor; the name and location (city and 
State) of the flavor manufacturer; the alcohol content of the flavor; 
and the point of production at which the flavor was added (that is, 
before, during, or after fermentation).
    (3) For formulas that include the use of flavors and other 
nonbeverage ingredients containing alcohol, you must explicitly 
indicate:
    (i) The volume and alcohol content of the beer base;
    (ii) The maximum volumes of the flavors and other nonbeverage 
ingredients containing alcohol to be used;
    (iii) The alcoholic strength of the flavors and other nonbeverage 
ingredients containing alcohol;
    (iv) The overall alcohol contribution to the finished product 
provided by the addition of any flavors or other nonbeverage ingredients 
containing alcohol. You are not required to list the alcohol 
contribution of individual flavors and other nonbeverage ingredients 
containing alcohol. You may state the total alcohol contribution from 
these ingredients to the finished product; and
    (v) The final volume and alcohol content of the finished product.
    (b) Process information. For each formula you must describe in 
detail each process used to produce a fermented beverage.
    (c) Alcohol content. For each formula you must state the alcohol 
content of the fermented product after fermentation and the alcohol 
content of the finished product.
    (d) Beer base formulas. You must refer in your formula to any 
approved formula number that covers the production of any beer base used 
in producing the formula product. If the beer base was produced by 
another brewery of the same ownership, you must also provide the name 
and address or name and registry number of that brewery.
    (e) Additional information. The appropriate TTB officer may at any 
time require you to file additional information concerning a fermented 
product, ingredients, or processes, in order to determine whether a 
formula should be approved or disapproved or whether the approval of a 
formula should be continued.

(26 U.S.C. 5415, 5555, 7805(a))

[[Page 685]]



Sec.  25.58  New and superseding formulas.

    (a) New formulas. Except as otherwise provided in paragraph (b) of 
this section, you must file a new formula (with a new formula number) 
for approval by TTB if you--
    (1) Create an entirely new fermented product that requires a 
formula;
    (2) Add new ingredients to an existing formulation;
    (3) Delete ingredients from an existing formulation;
    (4) Change the quantity of an ingredient used from the quantity or 
range of usage in an approved formula;
    (5) Change an approved processing, filtration, or other special 
method of manufacture that requires the filing of a formula; or
    (6) Change the contribution of alcohol from flavors or ingredients 
that contain alcohol.
    (b) Superseding formulas. You may file a superseding formula, 
instead of a new formula, if you have made any change listed in 
paragraphs (a)(2) through (a)(6) of this section and that change is not 
of a type that would require a holder of a certificate of label approval 
to file a new application for label approval on TTB Form 5100.31.
    (1) A superseding formula replaces an existing formula, and you 
should file one only if you do not intend to use the existing formula 
any more. A superseding formula must be filed with TTB for approval. 
When TTB approves a superseding formula, TTB will cancel your previous 
formula.
    (2) You may use the same formula number for a superseding formula 
that you used for the formula the superseding formula replaces, but you 
must annotate the formula number to indicate it is a superseding formula 
number. (For example, ``Formula 2, superseding.'')
    (c) When you file a new or superseding formula with TTB, you must 
follow the procedures and other requirements of Sec. Sec.  25.56 and 
25.57.



                  Subpart G_Qualification of a Brewery

                         Original Qualification



Sec.  25.61  General requirements for notice.

    (a) Establishment. Operations as a brewer may be conducted only by a 
person who has given notice as a brewer under this subpart. A person may 
not commence the business of a brewer until the appropriate TTB officer 
approves the brewery and the brewer's notice, including all documents 
made part of that notice.
    (b) Brewer's Notice, Form 5130.10. Each person must, before 
commencing business as a brewer, give notice on Form 5130.10. Each 
person continuing business as a brewer as provided in Sec.  25.71 must 
give notice on Form 5130.10. Each notice will be executed under 
penalties of perjury, and all written statements, affidavits, and other 
documents submitted in support of the notice will be made part of the 
notice.
    (c) Additional information. The appropriate TTB officer may at any 
time require the brewer to furnish, as part of the notice, additional 
information which is necessary to protect and insure collection of the 
revenue.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]



Sec.  25.62  Data for notice.

    (a) Required information. The brewer shall prepare the notice on 
Form 5130.10 and shall include the following information:
    (1) Serial number.
    (2) Purpose for which filed.
    (3) Name and principal business address of the brewer and the 
location of the brewery if different from the business address.
    (4) Statement of the type of business organization and of the 
persons interested in the business, supported by the information listed 
in Sec.  25.66.
    (5) Description of brewery, as specified in Sec.  25.68.
    (6) A list of trade names which the brewer intends to use in doing 
business or in packaging beer.

[[Page 686]]

    (7) [Reserved]
    (8) The name and address of the owner of the land or buildings 
comprising the brewery, and of any mortgagee or other encumbrancer of 
the land or buildings comprising the brewery.
    (9) The 24-hour cycle of operations at the brewery which is to be 
the brewer's business day.
    (10) The process by which the brewer intends to render beer unfit 
for beverage use when beer is to be removed for use in manufacturing 
under Sec. Sec.  25.191-25.192.
    (11) Statement showing ownership or controlling interests in other 
breweries which will establish eligibility for the transfer of beer 
without payment of tax between breweries of the same ownership, as 
authorized in Sec.  25.181.
    (12) The date of the notice and the name and signature of the brewer 
or person authorized to sign on behalf of the brewer.
    (b) Incorporation by reference. If any of the information required 
by paragraph (a)(4) of this section is on file with an TTB office in 
connection with the qualification of any other premises operated by the 
brewer, that information, if accurate and complete, may be incorporated 
into the brewer's notice by reference.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-21, 70 
FR 237, Jan. 3, 2005]



Sec.  25.63  Notice of registration.

    The Brewer's Notice, Form 5130.10, when approved by the appropriate 
TTB officer, will constitute the notice of registration of the brewery. 
The appropriate TTB officer will not approve the notice until the notice 
and all incorporated documents are complete, accurate, and in compliance 
with the requirements of this part. A person may not operate a brewery 
until the notice required by this subpart has been approved by the 
appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.64  Maintenance of notice file.

    The brewer shall maintain the approved Brewer's Notice, Form 
5130.10, and all incorporated documents at the brewery premises, in 
complete and current condition, readily available for inspection by an 
appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.65  Power of attorney.

    The brewer shall execute and file a Form 1534 (5000.8) for each 
person authorized to sign or act on behalf of the brewer. The Form 1534 
(5000.8) is not required for persons whose authority is furnished in the 
Brewer's Notice, Form 5130.10.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.66  Organizational documents.

    The supporting information required by paragraph (a)(4) of Sec.  
25.62 includes, as applicable, the following:
    (a) Corporate documents. (1) Corporate charter or a certificate of 
corporate existence or incorporation;
    (2) List of directors and officers, showing their names and 
addresses;
    (3) Extracts or digests of minutes of meetings of board of 
directors, authorizing certain individuals to sign for the corporation; 
and
    (4) Statement showing the number of shares of stock or other 
evidence of ownership, authorized and outstanding, and the voting rights 
of the respective owners or holders.
    (b) Articles of partnership. Copy of the articles of partnership or 
association, if any, or certificate of partnership or association if 
required to be filed by any State, county, or municipality.
    (c) Statement of interest. (1) Names and addresses of all persons 
having 10 percent or more stock in the corporation, or other legal 
entity, and the nature and amount of the stockholding or other interest 
of each, whether the interest appears in the name of the interested 
party or in the name of another person. If a corporation is wholly owned 
or controlled by another corporation, those persons of the parent 
corporation who meet the above standards are considered to be the 
persons

[[Page 687]]

interested in the business of the subsidiary, and the names thereof need 
be furnished only upon request of the appropriate TTB officer; or
    (2) In the case of an individual owner or partnership, the name and 
address of each person holding an interest in the brewery, whether the 
interest appears in the name of the interested party or in the name of 
another for that person.
    (d) Availability of additional corporate documents. The originals of 
documents required to be submitted under this section, and additional 
documents such as the articles of incorporation, bylaws, and State 
certificates authorizing the brewer to operate in the State where 
located (if other than the State in which the brewery is incorporated) 
shall be made available to any appropriate TTB officer upon request. In 
the case of multiplant brewers, these documents may be made available at 
the brewer's home brewery. Each brewer's notice filed by multiplant 
brewers will state the location where these corporate documents may be 
inspected.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.67   [Reserved]



Sec.  25.68  Description of brewery.

    (a) The Brewer's Notice, Form 5130.10, will include a description of 
(1) each tract of land comprising the brewery, and (2) a listing of each 
brewery building by its designated letter or number, giving the 
approximate ground dimensions and the purpose for which ordinarily used.
    (b) The description of the land will be in sufficient detail to 
enable appropriate TTB officers to determine the boundaries of the 
brewery.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

                  Changes After Original Qualification



Sec.  25.71  Amended or superseding notices.

    (a) Requirement for amended notice. (1) When there is a change with 
respect to the information shown in the Brewer's Notice, Form 5130.10, 
the brewer shall within 30 days of the change (except as otherwise 
provided in this subpart) submit an amended notice setting forth the new 
information. Changed notices will be submitted in skeleton form, with 
unchanged items marked ``No change since Form 5130.10, Serial No. ----
--.''
    (2) The appropriate TTB officer may require immediate filing of an 
amended Form 5130.10 if the accuracy of existing documents has been 
affected by any change.
    (b) Requirement for superseding notice. (1) The appropriate TTB 
officer may require a brewer to file a new and complete notice, 
superseding those previously filed, in conjunction with the filing of a 
new bond. This superseding notice will become effective on the date of 
the brewer's bond or on the date of the brewer's bond continuation 
certificate.
    (2) If the information required by Sec.  25.62(a) (4), (5), (6), 
(7), (9), and (10) is on file as part of an approved Form 5130.10 and is 
current, the brewer may incorporate by reference those documents as part 
of any superseding notice.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.72  Change in proprietorship.

    (a) General. If there is a change in the proprietorship of a 
brewery, the outgoing brewer shall comply with the requirements of Sec.  
25.85. The successor brewer shall, before beginning operations, qualify 
in the same manner as the proprietor of a new brewery. The successor 
brewer shall file a new notice and bond in his or her own name. Beer on 
hand may be transferred without payment of tax to the successor brewer 
and will be accounted for by that brewer.
    (b) Fiduciary. (1) If the successor to the brewer is an 
administrator, executor, receiver, trustee, assignee or other fiduciary, 
the fiduciary may in lieu of filing a new notice and bond, file an 
amended notice and furnish a consent of surety extending the terms of 
the predecessor's bond or continuation certificate.
    (2) The fiduciary shall furnish the appropriate TTB officer a 
certified copy of the court order or other document showing 
qualification as fiduciary. The

[[Page 688]]

effective date of the qualifying documents filed by a fiduciary will be 
the same as the date of the order, or the date therein specified for the 
fiduciary to assume control. If the fiduciary was not appointed by the 
court, the date of the appointment will be the effective date of the 
qualifying documents filed by the fiduciary.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.73  Change in partnership.

    (a) New notice required. The withdrawal of one or more members of a 
partnership or the taking in of a new partner, whether active or silent, 
constitutes a change in proprietorship. Unless exempted by paragraph (b) 
of this section, the death, bankruptcy or adjudicated insolvency of one 
or more partners results in a dissolution of the partnership and a 
change in proprietorship. The successor shall qualify the brewery in the 
same manner as the proprietor of a new brewery.
    (b) Continuing partnership. A surviving partner or partners may 
continue to operate the brewery for purposes of liquidation and 
settlement under the following conditions:
    (1) Under the laws of the State where the partnership was formed, 
the partnership is not terminated on death or insolvency of a 
partner(s); and
    (2) Under the laws of the State where the partnership was formed, 
the surviving partner(s) has the exclusive right to control and 
possession of the partnership assets for the purpose of liquidation and 
settlement; and
    (3) A consent of surety is filed in which the surety and the 
surviving partner(s) agree to remain liable on the bond.
    (c) Settlement of partnership. If the surviving partner(s) acquires 
the business on completion of the settlement of the partnership, that 
partner(s) shall qualify in his or her own name from the date of 
acquisition and give a new brewer's notice on Form 5130.10 and a new 
bond on Form 5130.22.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986]



Sec.  25.74  Change in stockholders.

    Changes in the list of stockholders furnished under the provisions 
of Sec.  25.66(c)(1) shall be submitted annually by the brewer on July 1 
or on any other date approved by the appropriate TTB officer. When the 
sale or transfer of capital stock results in a change in the control or 
management of the business, notification of the change will be made 
within 30 days in accordance with Sec.  25.71.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.75  Change in officers and directors.

    When there is any change in the list of officers or directors 
furnished under the provisions of Sec.  25.66(a)(4), the brewer shall 
submit, within 30 days of the change, an amended notice on Form 5130.10. 
If the brewer has shown to the satisfaction of the appropriate TTB 
officer that certain corporate officers listed on the original notice 
have no responsibilities in connection with the operations covered by 
the notice, the appropriate TTB officer may waive the requirements for 
submitting applications for amended notice to cover changes of those 
corporate officers. In the case of multiplant brewers, new brewers 
notices need not be filed for those breweries in which the lists of 
officers and directors are incorporated by reference in their brewer's 
notices under Sec.  25.62(b).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.76  [Reserved]



Sec.  25.77  Change in location.

    When there is a change in the location of the brewery, the brewer 
shall file an amended Form 5130.10, and a new bond, Form 5130.22, or a 
consent of surety, Form 1533 (5000.18), in accordance with Sec.  25.91, 
extending the terms of the bond or continuation certificate to cover 
operations at the new location. The brewer may not begin operations at 
the new location until the appropriate TTB officer approves the required 
documents.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

[[Page 689]]



Sec.  25.78  Change in premises.

    Except as authorized in Sec.  25.81, when the brewery is to be 
extended or curtailed, the brewer shall file an amended Form 5130.10. 
The additional facilities covered by the extension may not be used for 
the proposed purposes, and the portion to be curtailed may not be used 
for other than the previously approved purposes, prior to approval of 
Form 5130.10

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

                        Alternation of Operations



Sec.  25.81  Alternation of brewery and bonded or taxpaid wine premises.

    (a) General. A brewer operating a contiguous bonded winery or 
taxpaid wine bottling house may, as provided in this section, alternate 
the use of each premises by extension or curtailment.
    (b) Qualifying documents. The brewer shall file and receive approval 
of the following qualifying documents:
    (1) Form 5120.25 and Form 5130.10 to cover the curtailment and 
extension of the premises to be alternated.
    (2) Special diagrams, in duplicate, delineating the brewery premises 
and the bonded or taxpaid wine premises as they will exist both during 
extension and curtailment. The diagrams will clearly depict all areas, 
buildings, floors, rooms, equipment and pipelines which are to be 
subject to alternation in their relative operating sequence.
    (3) Evidence of existing bond, consent of surety, continuation 
certificate, or a new bond to cover the proposed alternation of 
premises.
    (c) Brewer's responsibility. After approval of qualifying documents, 
the brewer may alternate the designated premises pursuant to a 
letterhead notice submitted to the appropriate TTB officer. The notice 
will contain the information required by paragraph (d) of this section. 
Prior to the effective date and hour of the alternation, the brewer 
shall
    (1) Remove all beer on brewery premises to be alternated to bonded 
or taxpaid wine premises, or
    (2) Remove all wine from bonded to taxpaid wine premises to be 
alternated to brewery premises.
    (d) Information for notice. The notice required by paragraph (c) of 
this section will contain the following information:
    (1) Plant name and address;
    (2) Serial number;
    (3) Effective date and hour of proposed change;
    (4) Whether premises are to be curtailed or extended;
    (5) Purpose of curtailment or extension;
    (6) Identification of the special diagram depicting the premises as 
they exist when curtailed or extended; and
    (7) Date of execution and signature of brewer.
    (e) Separation of premises. The appropriate TTB officer may require 
that the portion of brewery or bonded or taxpaid wine premises extended 
or curtailed under this section be separated, in a manner satisfactory 
to the appropriate TTB officer, from the remaining portion of the 
brewery or bonded or taxpaid premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended, 1389, as amended, 
1390, as amended (26 U.S.C. 5401, 5411, 5415))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; as 
amended by T.D. ATF-299, 55 FR 24989, June 19, 1990]

                       Discontinuance of Business



Sec.  25.85  Notice of permanent discontinuance.

    When a brewer desires to discontinue business permanently, he or she 
must file a notice on Form 5130.10. The brewer must state the purpose of 
the notice as ``Discontinuance of business'' and give the date of the 
discontinuance. When all beer has been lawfully disposed of, appropriate 
TTB officer will approve the Form 5130.10 and return a copy to the 
brewer. The brewer shall file a report on Form 5130.9 showing no beer or 
cereal beverage on hand and marked ``Final Report.''

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]

[[Page 690]]



                 Subpart H_Bonds and Consents of Surety



Sec.  25.91  Requirement for bond.

    (a) General. Every person intending to commence the business of a 
brewer shall file a bond, Form 5130.22, as prescribed in this subpart, 
covering operations at the brewery, at the time of filing the original 
Brewer's Notice, Form 5130.10. Every brewer intending to continue the 
business of a brewer shall, once every 4 years, or as provided in Sec.  
25.95, execute and file a new bond, or continuation certificate as 
provided in Sec.  25.97.
    (b) Conditions of the bond. The Brewer's Bond, Form 5130.22, will be 
conditioned upon the brewer faithfully complying with all provisions of 
law and regulations relating to the activities covered by the bond, and 
upon paying all taxes imposed by 26 U.S.C. Chapter 51 and all interest 
and penalties incurred or fines imposed for violations of those 
provisions.
    (c) Additional information. The appropriate TTB officer shall 
require, in connection with any brewer's bond, a statement executed 
under the penalties of perjury, as to whether the principal or any 
person owning, controlling, or actively participating in the management 
of the business of the principal has been convicted of or has 
compromised any offense set forth in Sec.  25.101(a)(1), or has been 
convicted of any offense set forth in Sec.  25.101(a)(2). In the event 
the above statement contains an affirmative answer, the applicant shall 
submit a statement describing in detail the circumstances surrounding 
the conviction or compromise.
    (d) Bond required before beginning business. A person may not begin 
business or continue business as a brewer until first receiving notice 
that the appropriate TTB officer has approved the bond, continuation 
certificate, or consent of surety, as required by this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401); 
sec. 4(a), Pub. L. 91-673, 84 Stat. 2057 (26 U.S.C. 5417))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]



Sec.  25.92  Consent of surety.

    A brewer may change the terms of any bond filed under this part by 
filing a consent of surety. Consents of surety will be executed on Form 
1533 (5000.18) by the brewer and the surety on the bond, with the same 
formality and proof of authorization as required for the execution of a 
bond.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.93  Penal sum of bond.

    (a)(1) Brewers filing semimonthly tax returns. For brewers filing 
tax returns and remitting taxes semimonthly under Sec.  25.164(c)(2), 
the penal sum of the brewers bond must be equal to 10 percent of the 
maximum amount of tax calculated at the rates prescribed by law which 
the brewer will become liable to pay during a calendar year during the 
period of the bond on beer:
    (i) Removed for transfer to the brewery from other breweries owned 
by the same brewer;
    (ii) Removed without payment of tax for export or for use as 
supplies on vessels and aircraft;
    (iii) Removed without payment of tax for use in research, 
development, or testing; and
    (iv) Removed for consumption or sale.
    (2) Brewers filing quarterly tax returns. For brewers filing tax 
returns and remitting taxes quarterly under Sec.  25.164(c)(3), the 
penal sum of the brewers bond must be equal to 29 percent of the maximum 
amount of tax calculated at the rates prescribed by law which the brewer 
will become liable to pay during a calendar year during the period of 
the bond on beer:
    (i) Removed for transfer to the brewery from other breweries owned 
by the same brewer;
    (ii) Removed without payment of tax for export or for use as 
supplies on vessels and aircraft;
    (iii) Removed without payment of tax for use in research, 
development, or testing; and
    (iv) Removed for consumption or sale.
    (b) Concentrate. A brewer who concentrates beer under subpart R of 
this part shall calculate the penal sum of

[[Page 691]]

the bond by computing 10 percent of the amount of tax at the rates 
prescribed by law, on the maximum quantity of beer used in the 
production of concentrate during a calendar year. The brewer shall add 
this amount to the penal sum calculated under paragraph (a) of this 
section to determine the total penal sum of the brewer's bond.
    (c) Maximum and minimum penal sums. The maximum penal sum of the 
bond (or total penal sum if original and strengthening bonds are filed) 
is not to exceed $150,000 when the tax on beer is to be prepaid, or 
$500,000 when the tax is to be deferred as provided in Sec.  25.164. The 
minimum penal sum of a bond is $1,000.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-41, 71 
FR 5603, Feb. 2, 2006]



Sec.  25.94  Strengthening bonds.

    (a) Requirement. When the penal sum of the brewer's bond (calculated 
as provided in Sec.  25.93) in effect is not sufficient, the principal 
may prepay the tax on beer as provided in subpart K of this part, or 
give a strengthening bond in sufficient penal sum if the surety is the 
same as on the bond in effect. If the surety is not the same, a new bond 
covering the entire liability is required.
    (b) Restrictions. A strengthening bond may not in any way release a 
former bond or limit a bond to less than the full penal sum.
    (c) Date of execution. Strengthening bonds will show the current 
date of execution and their effective date.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.95  New bond.

    The appropriate TTB officer may at any time, at his or her 
discretion, require a new bond. A new bond is required immediately in 
the case of insolvency of a surety. Executors, administrators, 
assignees, receivers, trustees, or other persons acting in a fiduciary 
capacity shall execute a new bond or obtain a consent of surety on all 
bonds in effect. When the interests of the Government so demand, or in 
any case when the security of the bond becomes impaired for any reason, 
the principal will be required to give a new bond. When a bond is found 
to be not acceptable by the appropriate TTB officer, the principal will 
be required immediately to obtain a new and satisfactory bond or 
discontinue business.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.96  Superseding bond.

    When the principal submits a new bond to supersede a bond or bonds 
in effect, the appropriate TTB officer, after approving the superseding 
bond, will issue a notice of termination for the superseded bond under 
the provisions of this subpart. Superseding bonds will show the current 
date of execution and their effective date.



Sec.  25.97  Continuation certificate.

    If the contract of surety between the brewer and the surety on an 
expiring bond or continuation certificate is continued in force for a 
succeeding period of not less than 4 years from the expiration date of 
the bond or continuation certificate, the brewer may submit, in lieu of 
a new bond, a Brewer's Bond Continuation Certificate on Form 5130.23, 
executed under the penalties of perjury, by the brewer and the surety 
attesting to continuation of the bond. Each continuation certificate 
will constitute a bond and all provisions of law and regulations 
applicable to bonds on Form 5130.22 given under this part, including the 
disapproval of bonds, are applicable to continuation certificates.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.98  Surety or security.

    (a) Bond coverage. Bonds required by this part will be given with 
corporate surety or collateral security.
    (b) Corporate surety. Surety bonds may be given only with surety 
companies holding certificates of authority from the Secretary as 
acceptable sureties on Federal bonds, subject to the limitations set 
forth in the current revision of Treasury Department Circular No. 570, 
Companies Holding Certificates of Authority as Acceptable Reinsuring 
Companies.

[[Page 692]]

    (c) Revisions of Circular No. 570. Treasury Department Circular No. 
570 is published in the Federal Register annually as of the first 
workday in July. As they occur, interim revisions of the circular are 
published in the Federal Register. Copies may be obtained from the 
Surety Bond Branch, Financial Management Service, Department of the 
Treasury, Washington, DC 20226.
    (d) More than one corporate surety. A bond may be executed by two or 
more corporate sureties. Each corporate surety may limit its liability 
in terms on the face of the bond in a specified amount. This amount may 
not exceed the limitations set forth for corporate security by the 
Secretary which are set forth in the current revision of Treasury 
Department Circular No. 570. The sum of the liabilities for the sureties 
will equal the required penal sum of the bond.
    (e) Deposit of collateral securities in lieu of corporate surety. 
Bonds or notes of the United States, or other obligations which are 
unconditionally guaranteed as to both interest and principal by the 
United States, may be pledged and deposited by principals as collateral 
security in lieu of corporate surety in accordance with 31 CFR Part 225.

(96 Stat. 1068, 1085 (31 U.S.C. 9304-9308); sec. 201, Pub. L. 85-859, 72 
Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.99  Filing powers of attorney.

    Each bond, continuation certificate, and each consent of surety will 
be accompanied by a power of attorney authorizing the agent or officer 
to execute the document. The power of attorney will be prepared on a 
form provided by the surety company and executed under the corporate 
seal of the company. If the power of attorney submitted is other than a 
manually signed original, it will be accompanied by a certificate of its 
validity.

(96 Stat. 1068, 1085 (31 U.S.C. 9304-9308))

        Disapproval or Termination of Bonds or Consents of Surety



Sec.  25.101  Disapproval of bonds or consents of surety.

    (a) Reasons for disapproval. The appropriate TTB officer may 
disapprove a bond or consent of surety if the individual, firm, 
partnership, corporation, or association giving the bond or consent of 
surety, or if any of the above entities owning, controlling or actively 
participating in the management of a business giving a bond as a brewer, 
has been previously convicted in a court of competent jurisdiction of:
    (1) Any fraudulent noncompliance with any provision of law of the 
United States if it related to internal revenue or customs taxation of 
distilled spirits, wines or beer, or if the offense shall have been 
compromised with the individual, firm, partnership, corporation, or 
association on payment of penalties or otherwise; or
    (2) Any felony under a law of any State or the District of Columbia, 
or the United States, prohibiting the manufacture, sale, importation, or 
transportation of distilled spirits, wines, beer, or other intoxicating 
liquor.
    (b) Appeal of disapproval. If the bond or consent of surety is 
disapproved, the person giving the bond or consent of surety may appeal 
the disapproval to the appropriate TTB officer, who will grant a hearing 
in the matter if requested by the applicant or brewer, and whose 
decision will be final.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]



Sec.  25.102  Termination of surety's liability.

    The liability of a surety on a bond required by this part will be 
terminated only as to liability arising on or after: (a) the effective 
date of a superseding bond; (b) the date of approval of the 
discontinuance of business of the brewer; or (c) following the giving of 
notice by the surety as provided in Sec.  25.103.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.103  Notice by surety for relief from liability under bond.

    A surety may, at any time, in writing, notify the principal and the 
appropriate TTB officer that the surety desires after a specified date 
(not less than 60 days after the date of service

[[Page 693]]

on the principal) to be relieved of any liability under the bond which 
is incurred by the principal after the date named in the notice. The 
surety shall include proof of service of the notice on the principal 
with the notice filed with the appropriate TTB officer. The notice will 
become effective on the date named, unless the surety withdraws the 
notice, in writing. The surety on the bond remains liable under the bond 
with respect to any liability incurred by the principal while the bond 
is in effect.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))



Sec.  25.104  Termination of bonds.

    Brewer's bonds may be terminated as to liability for future removals 
or receipts (a) pursuant to application of the surety as provided in 
Sec.  25.103, (b) on approval of a superseding bond, or (c) on 
notification by the principal that the business has been discontinued. 
On termination of the surety's liability under a bond, the appropriate 
TTB officer will notify the principal and sureties.

(31 U.S.C. 9301, 9303)



Sec.  25.105  Release of collateral security.

    Bonds, notes, and other obligations of the United States, pledged 
and deposited as security in connection with bonds required by this part 
will be released in accordance with 31 CFR Part 225. When the 
appropriate TTB officer determines there is no outstanding liability 
against the bond and that it is no longer necessary to hold the 
security, he or she shall fix the date or dates on which a part or all 
of the security will be released. At any time prior to the release of 
the security, the appropriate TTB officer may, for proper cause, extend 
the date of release of the security for an additional length of time as 
may be appropriate.

(31 U.S.C. 9301, 9303)



                         Subpart I_Special Taxes

                        Liability for Special Tax



Sec.  25.111  Brewer's special tax.

    (a) General. Except as otherwise provided in paragraph (c) of this 
section, every brewer shall pay a special (occupational) tax at the rate 
specified by Sec.  25.111a or Sec.  25.111b, whichever is applicable. 
The tax shall be paid on or before the date of commencing business as a 
brewer, and thereafter every year on or before July 1. On commencing 
business, the tax shall be computed from the first day of the month in 
which liability is incurred, through the following June 30. Thereafter, 
the tax shall be computed for the entire year (July 1 through June 30).
    (b) Transition rule. A brewer who was engaged in business on January 
1, 1988, and paid a special (occupational) tax for a taxable period 
which began before January 1, 1988, and included that date, shall pay an 
increased special tax for the period January 1, 1988, through June 30, 
1988. The increased special tax shall not exceed one-half the excess (if 
any) of (1) the rate of special tax in effect on January 1, 1988, over 
(2) the rate of such tax in effect on December 31, 1987. The increased 
special tax shall be paid on or before April 1, 1988.
    (c) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, the proprietor must register by filing the 
special tax return on Form 5630.5 during the suspension period even 
though the amount of tax due is zero. During the suspension period, as 
at other times, the special tax return is due on or before commencement 
of business and on or before July 1 of each year thereafter.

(26 U.S.C. 5091, 5142)

[T.D. ATF-271, 53 FR 17547, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.111a  Special tax rates.

    (a) Prior rates. The special (occupational) tax imposed on brewers 
prior to January 1, 1988, was $110 a year, except that the special tax 
for any brewer of less than 500 barrels a year was $55 a year.
    (b) Rate effective January 1, 1988. The special tax rate imposed on 
brewers (other than small brewers as defined in Sec.  25.111b) is $1000 
a year, except that the

[[Page 694]]

tax rate is zero during the suspension period described in Sec.  
25.111(c).

(26 U.S.C. 5091)

[T.D. ATF-271, 53 FR 17547, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.111b  Reduced rate of tax for small brewers.

    (a) General. Effective January 1, 1988, 26 U.S.C. 5091(b) provides 
for a reduced rate of tax with respect to any brewer whose gross 
receipts (for the most recent taxable year ending before the first day 
of the taxable period to which the tax imposed by Sec.  25.111 relates) 
are less than $500,000. The rate of tax for such a brewer is $500 a 
year, except that the tax rate is zero during the suspension period 
described in Sec.  25.111(c). The ``taxable year'' to be used for 
determining gross receipts is the taxpayer's income tax year. All gross 
receipts of the taxpayer shall be included, not just the gross receipts 
of the business subject to special tax. Proprietors of new businesses 
that have not yet begun a taxable year, as well as proprietors of 
existing businesses that have not yet ended a taxable year, who commence 
a new activity subject to special tax, qualify for the reduced special 
(occupational) tax rate, unless the business is a member of a 
``controlled group''; in that case, the rules of paragraph (b) of this 
section shall apply.
    (b) Controlled group. In determining gross receipts, all persons 
treated as one taxpayer under 26 U.S.C. 5061(e)(3) shall be treated as 
one taxpayer for purposes of paragraph (a) of this section. ``Controlled 
group'' means a controlled group of corporations, as defined in 26 
U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 
1.1563-4, except that the words ``at least 80 percent'' shall be 
replaced by the words ``more than 50 percent'' in each place they appear 
in subsection (a) of 26 U.S.C. 1563, as well as in the implementing 
regulations. Also, the rules for a ``controlled group of corporations'' 
apply in a similar fashion to groups which include partnerships and/or 
sole proprietorships. If one entity maintains more than 50% control over 
a group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of this section.
    (c) Short taxable year. Gross receipts for any taxable year of less 
than 12 months shall be annualized by multiplying the gross receipts for 
the short period by 12 and dividing the result by the number of months 
in the short period as required by 26 U.S.C. 448(c)(3).
    (d) Returns and allowances. Gross receipts for any taxable year 
shall be reduced by returns and allowances made during that year under 
26 U.S.C. 448(c)(3).

(26 U.S.C. 448, 5061, 5091)

[T.D. ATF-271, 53 FR 17547, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.112  Wholesaler's special tax.

    A brewer shall be subject to or exempt from a wholesaler's special 
(occupational) tax as provided in part 31 of this chapter.

(26 U.S.C. 5111, 5142)

[T.D. ATF-271, 53 FR 17548, May 17, 1988, as amended by T.D. TTB-25, 70 
FR 19883, Apr. 15, 2005]



Sec.  25.113  Each place of business taxable.

    (a) General. A brewer incurs special tax liability , or must 
register by filing the special tax return during the suspension period 
described in Sec.  25.111(c), for each place of business in which an 
occupation subject to special tax is conducted. A place of business 
means the entire office, plant or area of the business in any one 
location under the same proprietorship. Passageways, streets, highways, 
rail crossings, waterways, or partitions dividing the premises are not 
sufficient separation to require additional special tax, if the 
divisions of the premises are otherwise contiguous.
    (b) Exception for contiguous areas. A brewer will not incur 
additional special tax liability (or will not have to register during 
the suspension period described in Sec.  25.111(c)) for sales of beer 
made at a location other than on brewery premises described on the 
brewer's notice, Form 5130.10, if the location

[[Page 695]]

where such sales are made is contiguous to the brewery premises in the 
manner described in paragraph (a) of this section.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1347, as amended (26 U.S.C. 5143))

[T.D. ATF-271, 53 FR 17547, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.114  Exemptions from dealer's special taxes.

    (a) Brewer. A brewer is not required to pay special tax or to 
register during the suspension period described in Sec.  25.111(c), as a 
wholesale or retail dealer in beer because of sales, at the principal 
place of business or at the brewery, of beer which at the time of sale 
is stored at the brewery or which had been removed and stored in a 
taxpaid storeroom operated in connection with the brewery. Each brewer 
shall have only one exemption from dealer's special tax or registration 
for each brewery. The brewer may designate, in writing to the 
appropriate TTB officer, that the principal place of business will be 
exempt from dealer's special tax or registration; otherwise, the 
exemption will apply to the brewery.
    (b) Wholesale dealer. A wholesale dealer in beer who has paid the 
appropriate special tax, or who has registered during the suspension 
period described in Sec.  25.111(c), will not again be required to pay 
special tax or register as a wholesale dealer in beer because of sales 
of beer to wholesale or retail dealers in liquors or beer or to limited 
retail dealers, at the purchaser's place of business.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340, as amended (26 U.S.C. 5113))

[T.D. ATF-271, 53 FR 17547, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]

                    Execution of Special Tax Returns



Sec.  25.117  Special tax returns.

    Special tax shall be paid by return, and a return is required during 
the suspension period described in Sec.  25.111(c) even though no tax is 
due. The prescribed return is TTB Form 5630.5, Special Tax Registration 
and Return. Special tax returns, with payment of applicable tax, shall 
be filed with TTB in accordance with instructions on the form.

[T.D. ATF-271, 53 FR 17548, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.118  Preparation of TTB Form 5630.5.

    All of the information called for on Form 5630.5 shall be provided, 
including:
    (a) The true name of the taxpayer.
    (b) The trade name(s) (if any) of the business(es) subject to 
special tax.
    (c) The employer identification number (see Sec.  25.121).
    (d) The exact location of the place of business, by name and number 
of building or street, or if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown shall be the taxpayer's 
principal place of business (or principal office, in the case of a 
corporate taxpayer).
    (e) The class(es) of special tax to which the taxpayer is subject or 
to which the return relates during the suspension period described in 
Sec.  25.111(c).
    (f) Ownership and control information: that is, the name, position, 
and residence address of every owner of the business and of every person 
having power to control its management and policies with respect to the 
activity subject to special tax. ``Owner of the business'' shall include 
every partner, if the taxpayer is a partnership, and every person owning 
10% or more of its stock, if the taxpayer is a corporation. However, the 
ownership and control information required by this paragraph need not be 
stated if the same information has been previously provided to TTB in 
connection with the Brewer's Notice, and if the information previously 
provided is still current.

[T.D. ATF-271, 53 FR 17548, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.119  Multiple locations and/or classes of tax.

    A taxpayer subject to special tax (or required to register during 
the suspension period described in Sec.  25.111(c)) for

[[Page 696]]

the same period at more than one location or for more than one class of 
tax shall--
    (a) File one special tax return, TTB Form 5630.5, with payment of 
applicable tax, to cover all such locations and classes of tax; and
    (b) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on TTB Form 5630.5), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid or for which registration is being made during 
the suspension period described in Sec.  25.111(c). The original of the 
list shall be filed with TTB in accordance with instructions on the 
return, and the copy shall be retained at the taxpayer's principal place 
of business (or principal office, in the case of a corporate taxpayer) 
for the period specified in Sec.  25.300(c).

[T.D. ATF-271, 53 FR 17548, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.120  Signing of TTB Forms 5630.5.

    (a) Ordinary returns. The return of an individual proprietor shall 
be signed by the individual. The return of a partnership shall be signed 
by a general partner. The return of a corporation shall be signed by any 
officer. In each case, the person signing the return shall designate his 
or her capacity as ``individual owner,'' ``member of firm,'' or, in the 
case of a corporation, the title of the officer.
    (b) Fiduciaries. Receivers, trustees, assignees, executors, 
administrators, and other legal representatives who continue the 
business of a bankrupt, insolvent, deceased person, etc., shall indicate 
the fiduciary capacity in which they act.
    (c) Agent or attorney in fact. If a return is signed by an agent or 
attorney in fact, the signature shall be preceded by the name of the 
principal and followed by the title of the agent or attorney in fact. A 
return signed by a person as agent will not be accepted unless there is 
filed, with the TTB office with which the return is required to be 
filed, a power of attorney authorizing the agent to perform the act.
    (d) Perjury statement. TTB Forms 5630.5 shall contain or be verified 
by a written declaration that the return has been executed under the 
penalties of perjury.

(26 U.S.C. 5142, 6061, 6065, 6151, 7011)

[T.D. ATF-271, 53 FR 17548, May 17, 1988]

                     Employer Identification Numbers



Sec.  25.121  Employer identification number.

    The employer identification number (defined in 26 CFR 301.7701-12) 
of the taxpayer who has been assigned such a number shall be shown on 
each special tax return, including amended returns, filed under this 
subpart. Failure of the taxpayer to include the employer identification 
number may result in the imposition of the penalty specified in Sec.  
70.113 of this chapter.

(26 U.S.C. 6109, 6676)

[T.D. ATF-271, 53 FR 17548, May 17, 1988, as amended by T.D. ATF-301, 55 
FR 47605, Nov. 14, 1990]



Sec.  25.122  Application for employer identification number.

    Each taxpayer who files a special tax return, who has not already 
been assigned an employer identification number, shall file IRS Form SS-
4 to apply for one. The taxpayer shall apply for and be assigned only 
one employer identification number, regardless of the number of places 
of business for which the taxpayer is required to file a special tax 
return. The employer identification number shall be applied for no later 
than 7 days after the filing of the taxpayer's first special tax return. 
IRS Form SS-4 may be obtained from the director of an IRS service center 
or from any IRS district director.

(26 U.S.C. 6109)

[T.D. ATF-271, 53 FR 17548, May 17, 1988]



Sec.  25.123  Preparation and filing of IRS Form SS-4.

    The taxpayer shall prepare and file IRS Form SS-4, together with any 
supplementary statement, in accordance with the instructions on the form 
or issued in respect to it.

(26 U.S.C. 6109)

[T.D. ATF-271, 53 FR 17549, May 17, 1988]

[[Page 697]]

                           Special Tax Stamps



Sec.  25.125  Issuance of special tax stamps.

    (a) Except as otherwise provided in paragraph (b) of this section, 
upon filing a properly executed return on TTB Form 5630.5, together with 
the applicable full remittance, the taxpayer will be issued an 
appropriately designated special tax stamp. If the return covers 
multiple locations, the taxpayer will be issued one appropriately 
designated stamp for each location listed on the attachment required by 
Sec.  25.119, but showing, as to name and address, only the name of the 
taxpayer and the address of the taxpayer's principal place of business 
(or principal office in the case of a corporate taxpayer).
    (b) During the suspension period described in Sec.  25.111(c) when 
registration is required but no tax is due, a special tax stamp will not 
be issued.

(26 U.S.C. 6806)

[T.D. ATF-271, 53 FR 17549, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62245, Oct. 31, 2005]



Sec.  25.126  Distribution of stamps for multiple locations.

    On receipt of the special tax stamps, the taxpayer shall verify that 
there is one stamp for each location listed on the attachment to Form 
5630.5. The taxpayer shall designate one stamp for each location and 
type on each stamp the address of the business conducted for which that 
stamp is designated. The taxpayer shall then forward each stamp to the 
place of business designated on the stamp.

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-251, 52 
FR 19313, May 22, 1987]



Sec.  25.127  Examination of special tax stamps.

    All stamps denoting payment of special tax will be kept available 
for inspection by appropriate TTB officers, at the location for which 
designated, during business hours.

(Act of August 16, 1954 68A Stat. 831, as amended (26 U.S.C. 6806); sec. 
201, Pub. L. 85-859, 72 Stat. 1348, as amended (26 U.S.C. 5146))

                      Changes in Special Tax Stamps



Sec.  25.131  Change in name.

    If there is a change in the corporate or firm name, or in the trade 
name, as shown on Form 5630.5, the brewer shall file an amended special 
tax return as soon as practicable after the change covering the new 
corporate or firm name, or trade names. No new special tax is required 
to be paid. The brewer shall attach the special tax stamp for 
endorsement of the change in name, except if the change occurs during 
the suspension period described in Sec.  25.111(c).

(26 U.S.C. 7011)

[T.D. ATF-271, 53 FR 17549, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62246, Oct. 31, 2005]



Sec.  25.132  Change in proprietorship.

    (a) General. If there is a change in the proprietorship of a 
brewery, the successor shall file a new special tax return, pay a new 
special tax, and obtain the required special tax stamps. However, if the 
change in proprietorship occurs during the suspension period described 
in Sec.  25.111(c) when no tax is due and no stamp is issued, only the 
filing of a new special tax return is required.
    (b) Exemption for certain successors. Persons having the right of 
succession provided for in Sec.  25.133 may carry on the business for 
the remainder of the period for which the special tax was paid (or for 
which registration was made during the suspension period described in 
Sec.  25.111(c)), if within 30 days after the date on which the 
successor begins to carry on the business, the successor files a return 
on Form 5630.5, which shows the basis of succession. Except during the 
suspension period described in Sec.  25.111(c), a person who is a 
successor to a business for which special tax has been paid and who 
fails to register the succession is liable for special tax computed from 
the first day of the calendar month in which he or she began to carry on 
the business. During

[[Page 698]]

the suspension period, a failure to register the succession may result 
in a penalty under 26 U.S.C. 5603(b).

(Act of August 16, 1954, 68A Stat. 845, as amended (26 U.S.C. 7011); 
sec. 201, Pub. L. 85-859, 72 Stat. 1347, as amended (26 U.S.C. 5143))

[T.D. TTB-36, 70 FR 62246, Oct. 31, 2005]



Sec.  25.133  Persons having right of succession.

    Under the conditions indicated in Sec.  25.132, the right of 
succession will pass to certain persons in the following cases:
    (a) Death. The widowed spouse or child, or executor, administrator, 
or other legal representative of the taxpayer;
    (b) Succession of spouse. A husband or wife succeeding to the 
business of his or her spouse (living);
    (c) Insolvency. A receiver or trustee in bankruptcy, or an assignee 
for benefit of creditors;
    (d) Withdrawal from firm. The partner or partners remaining after 
death or withdrawal of a member.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1347, as amended (25 U.S.C. 5143))



Sec.  25.134  Change in location.

    (a) Subject to paragraph (b) of this section, if there is a change 
in location of a taxable place of business, the brewer shall, within 30 
days after the change, file an amended special tax return covering the 
new location. The brewer shall attach the special tax stamp or stamps, 
for endorsement of the change in location. No new special tax is 
required to be paid. However, if the brewer does not file the amended 
return within 30 days, the brewer is required to file a new special tax 
return, pay a new special tax, and obtain a new special tax stamp.
    (b) If the change in location occurs during the suspension period 
described in Sec.  25.111(c) when no tax is due and no special tax stamp 
is issued, the requirements of paragraph (a) of this section still 
apply, except with regard to attachment of a special tax stamp and 
payment of a new special tax. During the suspension period, a failure to 
comply with paragraph (a) of this section may result in a penalty under 
26 U.S.C. 5603(b).

(26 U.S.C. 5143, 7011)

[T.D. TTB-36, 70 FR 62246, Oct. 31, 2005]



                   Subpart J_Marks, Brands, and Labels



Sec.  25.141  Barrels and kegs.

    (a) General requirements. The brewer's name or trade name and the 
place of production (city and, if necessary for identification, State) 
shall be permanently marked on each barrel or keg. If the place of 
production is clearly shown on the bung or on the tap cover, or on a 
label securely affixed to each barrel or keg, the place of production 
need not be permanently marked on each barrel or keg. No statement as to 
payment of internal revenue taxes may be shown.
    (b) Breweries of same ownership. (1) If two or more breweries are 
owned or operated by the same person, firm, or corporation (as defined 
in Sec.  25.181), the place of production:
    (i) May be shown as the only location on the bung, or on the tap 
cover, or on a separate label attached to the keg;
    (ii) May be included in a listing of the locations of breweries 
qualified under this part if the place of production is not given less 
emphasis than any of the other locations; or
    (iii) Need not be shown if the brewer's principal place of business 
is shown in lieu of any other location. The brewer's principal place of 
business will be the location of a brewery operated by the brewer and 
qualified under this part.
    (2) If the location of two or more breweries is shown on the keg, 
bung, tap cover, or on a separate label attached to the keg (paragraph 
(b)(1)(ii)), or if the brewer's principal place of business is shown in 
lieu of the actual place of production (paragraph (b)(1)(iii)), the 
brewer shall indicate the actual place of production by printing, coding 
or other markings on the keg, bung, tap cover, or on a separate label 
attached to the keg. The coding system employed will permit an 
appropriate TTB officer to determine the place of production (including 
street address if two or more breweries are located in

[[Page 699]]

the same city) of the beer. The brewer must notify the appropriate TTB 
officer prior to employing a coding system.
    (c) Label approval required. Labels or tap covers used by brewers 
shall be covered by certificates of label approval, Form 5100.31, when 
required by Part 7 of this chapter.

(Approved by the Office of Management and Budget under control number 
1512-0474)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 
FR 8492, Mar. 12, 1986; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]



Sec.  25.142  Bottles.

    (a) Label requirements. Each bottle of beer shall show by label or 
otherwise the name or trade name of the brewer, the net contents of the 
bottle, the nature of the product such as beer, ale, porter, stout, 
etc., and the place of production (city and, when necessary for 
identification, State). No statement as to payment of internal revenue 
taxes may be shown.
    (b) Breweries of same ownership. (1) If two or more breweries are 
owned or operated by the same person, firm, or corporation (as defined 
in Sec.  25.181), the place of production:
    (i) May be shown as the only location on the label;
    (ii) May be included in a listing of the locations of breweries 
qualified under this part if the place of production is not given less 
emphasis than any of the other locations; or
    (iii) Need not be shown if the brewer's principal place of business 
is shown in lieu of any other location. The brewer's principal place of 
business will be the location of a brewery operated by the brewer and 
qualified under this part.
    (2) If the location of two or more breweries is shown on the label 
(paragraph (b)(1)(ii)), or if the brewer's principal place of business 
is shown on the label in lieu of the actual place of production 
(paragraph (b)(1)(iii)), the brewer shall indicate the actual place of 
production by printing, coding or other markings on the label, bottle, 
crown or lid. The coding system employed will permit an appropriate TTB 
officer to determine the place of production (including street address 
if two or more breweries are located in the same city) of the beer. The 
brewer must notify the appropriate TTB offcer prior to employing a 
coding system.
    (c) Distinctive names. If the brewer's name, trade name or brand 
name includes the name of a city which is not the place where the beer 
was produced, the appropriate TTB officer may require the brewer to 
state the actual place of production on the label.
    (d) Tolerances. The statement of net contents shall indicate exactly 
the volume of beer within the bottle except for variations in measuring 
as may occur in filling conducted in compliance with good commercial 
practice. The barrel equivalent of bottles filled during a consecutive 
three month period, calculated on the basis of the brewer's fill test 
records, may not vary more than 0.5 percent from the barrel equivalent 
of bottles filled during the same period, calculated on the basis of the 
stated net contents of the bottles. The brewer is liable for the tax on 
the entire amount of beer removed, without benefit of tolerance, when 
the fill of bottles and cans exceeds the tolerance for the three month 
period, or when filling is not conducted in compliance with good 
commercial practice.
    (e) Label approval required. Labels used by brewers shall be covered 
by certificates of label approval, Form 5100.31, when required by Part 7 
of this chapter.
    (f) Short-fill bottles. A brewer may dispose of taxpaid short-fill 
bottles of beer to employees for their use but not for resale. These 
bottles need not be labeled, but if labeled they need not show an 
accurate statement of net contents.

(Approved by the Office of Management and Budget under control number 
1512-0474)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 
FR 8492, Mar. 12, 1986; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001]



Sec.  25.143  Cases.

    (a) Brewer's name. The brewer's name or trade name will be shown on 
each

[[Page 700]]

case or other shipping container of bottled beer. A brewer may use 
unmarked cases to hold:
    (1) Cartons of beer, if the visible portion of the cartons shows the 
required name; or
    (2) Bottles or cans with plastic carriers, if the visible portion of 
the bottles or cans shows the required name.
    (b) Other information. The brewer may show on a case or shipping 
container the place of production (city and, when necessary for 
identification, State), and the addresses of other breweries owned by 
the same person, firm, or corporation (as defined in Sec.  25.181). If 
only one address is shown, it will be that of the producing brewery, or 
of the brewer's principal place of business.

(Approved by the Office of Management and Budget under control number 
1512-0474)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 
FR 8492, Mar. 12, 1986]



Sec.  25.144  Rebranding barrels and kegs.

    (a) A brewer may not use a barrel or keg which bears the name of 
more than one brewer, and except as provided in Sec.  25.231, may not 
use a barrel or keg bearing the name of a brewer other than the 
producing brewer.
    (b) A brewer who purchases or otherwise obtains barrels or kegs from 
another brewer shall permanently remove or durably cover the original 
marks and brands after notifying the appropriate TTB officer of the 
proposed action. A brewer may use the barrels or kegs obtained without 
removing or covering the original marks and brands if the brewer:
    (1) Adopts a trade name substantially identical to the name 
appearing on the barrels or kegs; or
    (2) Succeeds to a brewer who has discontinued business, in which 
case the brewer may add marks or brands, in accordance with Sec.  
25.141, which indicate ownership.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412))



Sec.  25.145  Tanks, vehicles, and vessels.

    (a) Each brewer who transfers beer to another brewery of the same 
ownership (as defined in Sec.  25.181), or who exports beer without 
payment of tax, as provided in Sec.  25.203, shall plainly and durably 
mark each tank, tank car, tank truck, tank ship, barge, or deep tank of 
a vessel in accordance with paragraph (b) of this section. These marks 
may be placed on a label securely affixed to the route board of the 
container.
    (b) The brewer shall mark each container with--
    (1) The designation ``Beer'';
    (2) The brewer's name;
    (3) The address of the brewery from which removed;
    (4) The address of the brewery to which transferred or the marks 
required for exportation in Part 28 of this chapter, as applicable;
    (5) The date of shipment; and
    (6) The quantity, expressed in barrels.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1389, as amended 
(26 U.S.C. 5053, 5414))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3830, Jan. 27, 2004]



                          Subpart K_Tax on Beer

                            Liability for Tax



Sec.  25.151  Rate of tax.

    All beer, brewed or produced, and removed for consumption or sale, 
is subject to the tax prescribed by 26 U.S.C. 5051, for every barrel 
containing not more than 31 gallons, and at a like rate for any other 
quantity or for the fractional parts of a barrel as authorized in Sec.  
25.156.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051, 
5052))



Sec.  25.152  Reduced rate of tax for certain brewers.

    (a) General. Section 5051(a)(2) of Title 26 U.S.C. provides for a 
reduced rate of tax on the first 60,000 barrels of beer removed for 
consumption or sale by a brewer during a calendar year. To be eligible 
to pay the reduced rate of tax, a brewer:
    (1) Shall brew or produce the beer at a qualified brewery in the 
United States;

[[Page 701]]

    (2) May not produce more than 2,000,000 barrels of beer per calendar 
year; and
    (3) May not be a member of a ``controlled group'' of brewers whose 
members together produce more than 2,000,000 barrels of beer per 
calendar year.

The appropriate TTB officer shall deny use of the reduced rate of tax 
provided by 26 U.S.C. 5051(a)(2) where it is determined that the 
allowance of such a reduced rate would benefit a person who would 
otherwise fail to qualify for use of such rate.
    (b) Definitions. For the purpose of determining eligibility for 
payment of the reduced rate of tax on beer, terms have the following 
meanings:
    (1) Controlled group. A related group of brewers as defined in 26 
U.S.C. 5051(a)(2)(B). Controlled groups include, but are not limited to:
    (i) Parent-subsidiary controlled groups as defined in 26 CFR 1.1563-
1(a)(2);
    (ii) Brother-sister controlled groups as defined in 26 CFR 1.1563-
1(a)(3); and
    (iii) Combined groups as defined in 26 CFR 1.1563-1(a)(4). Stock 
ownership in a corporation need not be direct and 51% constructive 
ownership, defined in 26 CFR 1.1563-3, may be acquired through:
    (A) An option to purchase stock;
    (B) Attribution from partnerships;
    (C) Attribution from estate or trusts;
    (D) Attribution from corporations; or
    (E) Ownership by spouses, children, grandchildren, parents, and 
grandparents.
    (2) Production of beer. The production of beer as recorded in the 
brewer's daily records and reported in the Brewer's Report of 
Operations, Form 5130.9. For the purpose of determining compliance with 
the 2,000,000 barrel limitation, production of beer by a brewer or a 
controlled group of brewers includes both beer produced at qualified 
breweries within the United States and beer produced outside the United 
States.
    (c) Brewers operating more than one brewery. Brewers who operate 
more than one brewery shall include the combined production of beer at 
all their breweries when determining eligibility under the 2,000,000 
barrel limitation. The reduced rate of tax applies to the first 60,000 
barrels of beer removed for consumption or sale in a calendar year by 
the brewer; the brewer shall apportion the 60,000 barrels among the 
breweries in the manner described in the notice as provided by Sec.  
25.167(b)(3).
    (d) Controlled groups of brewers. Members of a controlled group of 
brewers shall include the combined production of beer by all member 
brewers when determining eligibility under the 2,000,000 limitation. The 
reduced rate of tax applies to the first 60,000 barrels of beer removed 
for consumption or sale in a calendar year by the controlled group of 
brewers; the controlled group of brewers shall apportion the 60,000 
barrels among member brewers in the manner described in each brewer's 
notice as provided by Sec.  25.167(b)(3).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5052))

[T.D. ATD-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-307, 55 
FR 52738, Dec. 21, 1990; T.D. ATF-345, 58 FR 40357, July 28, 1993]



Sec.  25.153  Persons liable for tax.

    The tax imposed by law on beer (including beer purchased or procured 
by one brewer from another) shall be paid by the brewer of the beer at 
the brewery where produced. The tax on beer transferred to a brewery 
from other breweries owned by the same brewer in accordance with subpart 
L of this part shall be paid by the brewer at the brewery from which the 
beer is removed for consumption or sale.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1389, as amended 
(26 U.S.C. 5054, 5413, 5414))

                          Determination of Tax



Sec.  25.155  Types of containers.

    Beer may be removed from a brewery for consumption or sale only in 
barrels, kegs, bottles, and similar containers, as provided in this 
part. A container which the appropriate TTB officer determines to be 
similar to a bottle or can will be treated as a bottle for purposes of 
this part. A container which the appropriate TTB officer determines to 
be similar to a barrel or keg and which conforms to one of the sizes 
prescribed for barrels or kegs in Sec.  25.156

[[Page 702]]

will be treated as such for purposes of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended, 1390, as amended 
(26 U.S.C. 5412, 5416))



Sec.  25.156  Determination of tax on keg beer.

    (a) In determining the tax on beer removed in kegs, a barrel is 
regarded as a quantity of not more than 31 gallons. The authorized 
fractional parts of a barrel are whole barrels, halves, thirds, 
quarters, sixths, and eighths, and beer may be removed in kegs rated at 
those capacities. The following keg sizes are also authorized at the 
stated barrel equivalents:

------------------------------------------------------------------------
                                                                Barrel
                        Size of keg                           equivalent
------------------------------------------------------------------------
5 gallons..................................................      0.16129
30 liter...................................................      0.25565
50 liter...................................................      0.42608
------------------------------------------------------------------------

    (b) If any barrel or authorized size keg contains a quantity of beer 
more than 2 percent in excess of its rated capacity, tax will be 
determined and paid on the actual quantity of beer (without benefit of 
any tolerance) contained in the keg.
    (c) The quantities of keg beer removed subject to tax will be 
computed to 5 decimal places. The sum of the quantities computed for any 
one day will be rounded to 2 decimal places and the tax will be 
calculated and paid on the rounded sum.

(26 U.S.C. 5051)

[T.D. ATF-345, 58 FR 40357, July 28, 1993]



Sec.  25.157  Determination of tax on bottled beer.

    The quantities of bottled beer removed subject to tax shall be 
computed to 5 decimal places in accordance with the table and 
instructions in Sec.  25.158. The sum of the quantities computed for any 
one day will be rounded to 2 decimal places and the tax will be 
calculated and paid on the rounded sum.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))



Sec.  25.158  Tax computation for bottled beer.

    Barrel equivalents for various case sizes are as follows:
    (a) For U.S. measure bottles.

------------------------------------------------------------------------
                                                   Number of
    Bottle size (net contents in fluid ounces)      bottles     Barrel
                                                    per case  equivalent
------------------------------------------------------------------------
6................................................         12     0.01815
6................................................         24     0.03629
7................................................         12     0.02117
7................................................         24     0.04234
7................................................         32     0.05645
7................................................         35     0.06174
7................................................         36     0.06351
7................................................         40     0.07056
7................................................         48     0.08468
8................................................         12     0.02419
8................................................         24     0.04839
8................................................         36     0.07258
8................................................         48     0.09677
10...............................................         12     0.03024
10...............................................         24     0.06048
10...............................................         48     0.12097
11...............................................         12     0.03327
11...............................................         24     0.06653
11.5.............................................         24     0.06956
12...............................................         12     0.03629
12...............................................         15     0.04536
12...............................................         20     0.06048
12...............................................         24     0.07258
12...............................................         30     0.09073
12...............................................         48     0.14516
12...............................................         50     0.15121
14...............................................         12     0.04234
14...............................................         24     0.08468
16 (1 pint)......................................         12     0.04839
16 (1 pint)......................................         24     0.09677
22...............................................         12     0.06653
22...............................................         24     0.13306
24...............................................         12     0.07258
24...............................................         24     0.14516
30...............................................         12     0.09073
32 (1 quart).....................................         12     0.09677
40...............................................         12     0.12097
64...............................................          1     0.01613
64...............................................          4     0.06452
64...............................................          6     0.09677
128 (1 gallon)...................................          1     0.03226
288..............................................          1     0.07258
------------------------------------------------------------------------

    (b) For metric measure bottles.

------------------------------------------------------------------------
                                                   Number of
        Bottle size (metric net contents)           bottles     Barrel
                                                    per case  equivalent
------------------------------------------------------------------------
500 milliliters..................................         24     0.10226
750 milliliters..................................         12     0.07670
1 liter..........................................         12     0.10226
2 liters.........................................          6     0.10226
5 liters.........................................          1     0.04261
------------------------------------------------------------------------

    (c) For other case sizes. If beer is to be removed in cases or 
bottles of sizes other than those listed in the above tables, the brewer 
shall notify the appropriate TTB officer in advance and request to be 
advised of the fractional barrel equivalent applicable to the proposed 
case size.

(26 U.S.C. 5412)

[T.D. ATF-345, 58 FR 40357, July 28, 1993]

[[Page 703]]



Sec.  25.159  Time of tax determination and payment; offsets.

    (a) Time and payment. The tax on beer will be determined at the time 
of its removal for consumption or sale, and will be paid by return as 
provided in this part.
    (b) Offsets. During any business day, the quantity of beer returned 
to the same brewery from which removed is to be taken as an offset 
against or deducted from the total quantity of beer removed for 
consumption or sale from that brewery on the day that the beer is 
returned.
    (c) Offsets not allowed. An offset or deduction for returned beer 
will not be allowed if:
    (1) The brewer was indemnified by insurance or otherwise in respect 
of the tax; or
    (2) The brewer does not issue credit to the customer for the tax on 
the returned beer within 30 days of the return of the beer. If the tax 
is not timely credited after the offset or deduction is taken, the 
brewer shall make an increasing adjustment on the next tax return.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended 
(26 U.S.C. 5054, 5056, 5061))



Sec.  25.160  Tax adjustment for brewers who produce more than 2,000,000 barrels of beer.

    Each brewer who has paid tax on beer by return, Form 5000.24, at the 
reduced rate of tax during a calendar year, but whose production (or the 
production of a controlled group of brewers of which the brewer is a 
member) exceeds 2,000.000 barrels of beer in that calendar year, is no 
longer eligible to pay tax on beer at the reduced rate of tax for any 
beer removed that calendar year for comsumption or sale. The brewer 
shall make a tax adjustment for the payment of additional tax no later 
than the return period in which production (or the production of a 
controlled group of brewers of which the brewer is a member) exceeds 
2,000,000 barrels of beer. The adjustment will be determined by 
multiplying the difference between the higher and lower rates of tax 
applicable to beer by the number of barrels removed by the brewer that 
year at the reduced rate of tax. The brewer shall make tax adjustments 
for all breweries where tax was paid at the lower rate that year, and 
shall include interest payable from the date on which tax was paid at 
the lower rate. In the case of a controlled group of brewers whose 
production exceeds 2,000,000 barrels of beer, all member brewers who 
paid tax at the lower rate shall make tax adjustments as determined in 
this section.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))

                Preparation and Remittance of Tax Returns



Sec.  25.163  Method of tax payment.

    A brewer shall pay the tax on beer by return on Form 5000.24, as 
provided in Sec. Sec.  25.164, 25.164a, 25.173 and 25.175. The brewer 
shall pay the tax by remittance at the time the tax return is rendered, 
and the remittance will be by check or money order payable to the 
``Bureau of Alcohol, Tobacco and Firearms'' and mailed with the return, 
or will be effected by an electronic fund transfer. In paying the tax, a 
fractional part of a cent will be disregarded unless it amounts to one-
half cent or more, in which case it will be increased to one cent.

[T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-365, 60 
FR 33669, June 28, 1995]



Sec.  25.164  Quarterly and semimonthly returns.

    (a) Requirement for filing. Each brewer shall pay the tax on beer 
(unless prepaid) by return on Form 5000.24. The brewer shall file Form 
5000.24 as a return regardless of whether tax has been prepaid as 
provided in Sec.  25.175 during the return period. The brewer shall file 
a return on Form 5000.24 for each return period even though no beer was 
removed for consumption or sale.
    (b) Payment of tax. The brewer shall include for payment with the 
return the full amount of tax required to be determined (and which has 
not been prepaid) on all beer removed for consumption or sale during the 
period covered by the return.
    (c) Return periods.

[[Page 704]]

    (1) Definitions. For purposes of this section, the following terms 
have the meanings indicated:
    Reasonably expects. When used with reference to a taxpayer, 
reasonably expects means the taxpayer was not liable for more than 
$50,000 in taxes the previous year and there is no other existing or 
anticipated circumstance known to the taxpayer (such as an increase in 
production capacity) that would cause the taxpayer's liability to 
increase beyond that limit.
    Taxpayer. A taxpayer is a person who is liable for excise tax 
imposed with respect to beer by 26 U.S.C. 5051 and 7652 under the same 
Employer Identification Number as defined in 26 CFR 301.7701-12.
    (2) Semimonthly return period. Except in the case of a taxpayer who 
qualifies for, and chooses to use, quarterly return periods as provided 
in paragraph (c)(3) of this section, all taxpayers must use semimonthly 
return periods for deferred payment of tax. The semimonthly return 
periods shall run from the brewer's business day beginning on the first 
day of each month through the brewer's business day beginning on the 
15th day of that month, and from the brewer's business day beginning on 
the 16th day of the month through the brewer's business day beginning on 
the last day of the month, except as otherwise provided in Sec.  
25.164a.
    (3) Quarterly return period. Effective January 1, 2006, a taxpayer 
who reasonably expects to be liable for not more than $50,000 in taxes 
with respect to beer imposed by 26 U.S.C. 5051 and 7652 for the current 
calendar year, and who was liable for not more than $50,000 in such 
taxes in the preceding calendar year, may choose to use a quarterly 
return period. In such a case the last day for payment of tax and filing 
of the return will be the 14th day after the last day of the calendar 
quarter. However, the taxpayer may not use the quarterly return period 
procedure for any portion of the calendar year following the first date 
on which the aggregate amount of tax due from the taxpayer during the 
calendar year exceeds $50,000, and any tax which has not been paid on 
that date will be due on the 14th day after the last day of the 
semimonthly period in which that date occurs.
    (d) Time for filing returns and paying tax. Except as otherwise 
provided in Sec.  25.164a for semimonthly tax returns, the brewer shall 
file the tax return, Form 5000.24, for each return period, and make 
remittance as required by this section, not later than the 14th day 
after the last day of the return period. If the due date falls on a 
Saturday, Sunday, or legal holiday, the return and remittance shall be 
due on the immediately preceding day which is not a Saturday, Sunday, or 
legal holiday, except as otherwise provided in Sec.  25.164a(c).
    (e) Timely filing. (1) When the brewer sends the semimonthly or 
quarterly tax return, Form 5000.24, by U.S. mail, in accordance with the 
instructions on the form, as required by this section, with remittance 
as provided for in this section, or without remittance as provided for 
in Sec.  25.165, the date of the official postmark of the United States 
Postal Service stamped on the cover in which the return and remittance 
were mailed is considered the date of delivery of the return and the 
date of delivery of the remittance, if enclosed with the return. When 
the postmark on the cover is illegible, the burden is on the brewer to 
prove when the postmark was made.
    (2) When the brewer sends the semimonthly or quarterly return with 
or without remittance by registered mail or by certified mail, the date 
of registry or the date of the postmark on the sender's receipt of 
certified mail be treated as the date of delivery of the semimonthly or 
quarterly return and of the remittance, if enclosed with the return.

(Approved by the Office of Management and Budget under control number 
1512-0467)

(Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6302); 
sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-246, 52 
FR 668, Jan. 8, 1987; T.D. ATF-251, 52 FR 19314, May 22, 1987, T.D. ATF-
365, 60 FR 33669, June 28, 1995; T.D. TTB-41, 71 FR 5603, Feb. 2, 2006]



Sec.  25.164a  Special September rule for taxes due by semimonthly return.

    (a) Division of second semimonthly period--(1) General. Except as 
otherwise

[[Page 705]]

provided in paragraph (a)(2) of this section, the second semimonthly 
period for the month of September shall be divided into two payment 
periods, from the 16th day through the 26th day, and from the 27th day 
through the 30th day. The brewer shall file a return, Form 5000.24, and 
make remittance, for the period September 16-26, no later than September 
29. The brewer shall file a return on Form 5000.24, and make remittance, 
for the period September 27-30, no later than October 14.
    (2) Taxpayment not by electronic fund transfer. In the case of taxes 
not required to be remitted by electronic fund transfer as prescribed by 
Sec.  25.165, the second semimonthly period of September shall be 
divided into two payment periods, from the 16th day through the 25th 
day, and the 26th day through the 30th day. The brewer shall file a 
return on Form 5000.24, and make remittance, for the period September 
16-25, no later than September 28. The brewer shall file a return on 
Form 5000.24, and make remittance, for the period September 26-30, no 
later than October 14.
    (b) Amount of payment: Safe harbor rule. (1) Taxpayers are 
considered to have met the requirements of paragraph (a)(1) of this 
section, if the amount paid no later than September 29 is not less than 
\11/15\ (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (2) Taxpayers are considered to have met the requirements of 
paragraph (a)(2) of this section, if the amount paid no later than 
September 28 is not less than \2/3\rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (c) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (d) Example. Payment of tax for the month of September--(1) Facts. 
X, a brewer required to pay taxes by electronic fund transfer, incurred 
tax liability in the amount of $30,000 for the first semimonthly period 
of September. For the period September 16-26, X incurred tax liability 
in the amount of $45,000, and for the period September 27-30, X incurred 
tax liability in the amount of $2,000.
    (2) Payment requirement. X's payment of tax in the amount of $30,000 
for the first semimonthly period of September is due no later than 
September 29 (Sec.  25.164(d)). X's payment of tax for the period 
September 16-26 is also due no later than September 29 (Sec.  
25.164a(a)(1)). X may use the safe harbor rule to determine the amount 
of payment due for the period of September 16-26 (Sec.  25.164a(b)). 
Under the safe harbor rule, X's payment of tax must equal $21,990.00, 
\11/15\ths of the tax liability incurred during the first semimonthly 
period of September. Additionally, X's payment of tax in the amount of 
$2,000 for the period September 27-30 must be paid no later than October 
14 (Sec.  25.164a(a)(1)). X must also pay the underpayment of tax, 
$23,010.00, for the period September 16-26, no later than October 14 
(Sec.  25.164a(b)).

[T.D. ATF-365, 60 FR 33669, June 28, 1995, as amended by T.D. TTB-41, 71 
FR 5604, Feb. 2, 2006]



Sec.  25.165  Payment of tax by electronic fund transfer.

    (a) Eligible brewers. (1) Each taxpayer who was liable, during a 
calendar year, for a gross amount equal to or exceeding five million 
dollars in beer taxes combining tax liabilities incurred under this part 
and parts 26 and 27 of this chapter, shall use a commerical bank in 
making payment by electronic fund transfer (EFT) of beer taxes during 
the succeeding calendar year. Payment of beer taxes by cash, check, or 
money order, as described in Sec.  25.163, is not authorized for a 
taxpayer who is required by this section to make remittances by EFT. For 
purposes of this section, the dollar amount of tax liability is defined 
as the gross tax liability on all taxable removals, determined in

[[Page 706]]

accordance with Sec.  25.159, and importations (including beer brought 
into the United States from Puerto Rico or the Virgin Islands) during 
the calendar year, without regard to any drawbacks, credits, or refunds, 
for all premises from which such activities are conducted by the 
taxpayer. Overpayments are not taken into account in summarizing the 
gross tax liability.
    (2) For the purposes of this section, a taxpayer includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (3) A taxpayer who is required by this section to make remittances 
by EFT shall make a separate EFT remittance and file a separate return, 
Form 5000.24, for each brewery from which beer is removed upon 
determination of tax.
    (b) Requirements. (1) On or before January 10 of each calendar year, 
except for a taxpayer already remitting the tax by EFT, each taxpayer 
who was liable for a gross amount equal to or exceeding five million 
dollars in beer taxes combining tax liabilities incurred under this part 
and parts 26 and 27 of this chapter, during the previous calendar year, 
shall notify, in writing the appropriate TTB officer. The notice shall 
be an agreement to make remittances by EFT.
    (2) For each return filed in accordance with this part, the taxpayer 
shall direct the taxpayer's bank to make an electronic fund transfer in 
the amount of the taxpayment to the Treasury Account as provided in 
paragraph (e) of this section. The request shall be made to the bank 
early enough for the transfer to be made to the Treasury Account by no 
later than the close of business on the last day for filing the return, 
prescribed in Sec. Sec.  25.164 or 25.175. The request shall take into 
account any time limit established by the bank.
    (3) If a taxpayer was liable for less than five million dollars in 
beer taxes during the preceding calendar year, combining tax liabilities 
incurred under this part and parts 26 and 27 of this chapter, the 
taxpayer may choose either to continue remitting the tax as provided in 
this section or to remit the tax with the return as prescribed by Sec.  
25.164. Upon filing the first return on which the taxpayer chooses to 
discontinue remitting the tax by EFT and to begin remitting the tax with 
the tax return, the taxpayer shall notify the appropriate TTB officer by 
attaching a written notification to Form 5000.24, stating that no taxes 
are due by EFT because the tax liability during the preceding calendar 
year was less than five million dollars, and that the remittance will be 
filed with the tax return.
    (c) Remittance. (1) Each taxpayer shall show on the return, Form 
5000.24, information about remitting the tax for that return by EFT and 
shall file the return with TTB, in accordance with the instructions on 
Form 5000.24.
    (2) Remittances shall be considered as made when the taxpayment by 
electronic fund transfer is received by the Treasury Account. For 
purposes of this section, a taxpayment by electronic fund transfer shall 
be considered as received by the Treasury Account when it is paid to a 
Federal Reserve Bank.
    (3) When the taxpayer directs the bank to effect an electronic fund 
transfer message as required by paragraph (b)(2) of this section, any 
transfer data record furnished to the taxpayer, through normal banking 
procedures, will serve as the record of payment, and will be retained as 
part of required records.
    (d) Failure to make a taxpayment by EFT. The taxpayer is subject to 
a penalty imposed by 26 U.S.C. 5684, 6651, or 6656, as applicable, for 
failure to make a taxpayment by EFT on or before the close of business 
on the prescribed last day for filing.

[[Page 707]]

    (e) Procedure. Upon the notification required under paragraph (b)(1) 
of this section, the appropriate TTB officer will issue to the taxpayer 
a TTB Procedure entitled ``Payment of Tax by Electronic Fund Transfer.'' 
This publication outlines the procedure a taxpayer is to follow when 
preparing returns and EFT remittances in accordance with this part. The 
U.S. Customs Service will provide the taxpayer with instructions for 
preparing EFT remittances for payments to be made to the U.S. Customs 
Service.

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-245, 52 
FR 532, Jan. 7, 1987; T.D. ATF-251, 52 FR 19314, May 22, 1987; T.D. ATF-
262, 52 FR 47560, Dec. 15, 1987; T.D. ATF-437, 66 FR 5479, Jan. 19, 
2001; T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-479, 67 FR 
30798, May 8, 2002]



Sec.  25.166  Payment of reduced rate of tax.

    (a) By return, Form 5000.24. A brewer who is eligible to pay the 
reduced rate of tax on beer may, upon filing the notice required by 
Sec.  25.167, pay the reduced rate of tax on beer by return for deferred 
payment of tax as provided in Sec.  25.164 or by prepayment return as 
provided in Sec.  25.175. Payment of reduced rate of tax on beer by 
return, Form 5000.24, may commence with any tax return filed during a 
calendar year and will continue until the brewer has taxpaid 60,000 
barrels of beer at the lower rate of tax, or taxpaid the number of 
barrels of beer apportioned under Sec.  25.167(b)(3) for that calendar 
year.
    (b) By claim for refund of tax. A brewer, eligible to pay the 
reduced rate of tax on beer during a calendar year, but who has not paid 
the reduced rate of tax by return during that year, may file a claim, 
Form 2635, (5620.8) for refund of tax excessively paid on beer during 
that year. Claims for refund of tax will be filed as provided in Sec.  
25.285.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 
FR 19313, May 22, 1987; T.D. TTB-41, 71 FR 5604, Feb. 2, 2006]



Sec.  25.167  Notice of brewer to pay reduced rate of tax.

    (a) Requirement to file notice. Every brewer who desires to pay the 
reduced rate of tax on beer authorized by 26 U.S.C. 5051(a)(2) by tax 
return, Form 5000.24, shall prepare a notice containing the information 
required by paragraph (b) of this section. The brewer shall file this 
notice with the appropriate TTB officer for the first return period (or 
prepayment return) during which the brewer pays tax on beer at the 
reduced rate. The brewer shall file the notice each year in which 
payment of the reduced rate of tax on beer is made by return.
    (b) Information to be furnished. Each notice described in paragraph 
(a) of this section will contain the following information:
    (1) A statement that the brewer will not or is not likely to produce 
more than 2,000,000 barrels of beer in the calendar year for which the 
notice is filed.
    (2) A statement that the brewer is not a member of a controlled 
group of brewers, or if the brewer is a member of a controlled group of 
brewers, a statement that the controlled group will not or is not likely 
to produce more than 2,000,000 barrels of beer in the calendar year for 
which the notice is filed.
    (3) If the brewer operates more than one brewery, a statement of the 
locations of all the breweries and a statement of how the 60,000 barrel 
limitation for the reduced rate of tax will be apportioned among the 
breweries. If the brewer is a member of a controlled group of brewers, a 
statement of the names and locations of all other brewers in the group 
and a statement of how the 60,000 barrels limitation will be apportioned 
among the brewers in the group.
    (c) Perjury statement. Each notice described in this section will be 
executed by the brewer under penalties of perjury as defined in Sec.  
25.11.

(Act of Aug. 16, 1954, 68A Stat. 749, as amended (26 U.S.C. 6065); sec. 
201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended (26 
U.S.C. 5415, 5555))

[[Page 708]]



Sec.  25.168  Employer identification number.

    The employer identification number (defined at 26 CFR 301.7701-12) 
of the taxpayer who has been assigned the number will be shown on each 
return on Form 5000.24, filed under this part. Failure of the taxpayer 
to include the employer identification number on Form 5000.24 may result 
in imposition of the penalty specified in Sec.  70.113 of this chapter. 
A brewer shall apply for an employer identification number on IRS Form 
SS-4 as provided in Sec. Sec.  25.122 and 25.123.

(Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109, 6676))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-301, 55 
FR 47605, Nov. 14, 1990]

                            Prepayment of Tax



Sec.  25.173  Brewer in default.

    (a) When a remittance in payment of taxes on beer is not paid upon 
presentment of check or money order tendered, or when the brewer is 
otherwise in default in payment of tax under Sec.  25.164, beer may not 
be removed for consumption or sale or taken from the brewery for 
consumption or sale until the tax has been prepaid as provided in Sec.  
25.175. The brewer shall continue to prepay while in default and 
thereafter until the appropriate TTB officer finds the revenue will not 
be jeopardized by deferred payment of tax as provided in Sec.  25.164.
    (b) Any remittance made while the brewer is required to prepay under 
this section will be in cash or in the form of a certified, cashier's or 
treasurer's check drawn on any bank or trust company incorporated under 
the laws of the United States, or under the law of any State, Territory, 
or possession of the United States, or in the form of a money order as 
provided in Sec.  70.61 of this chapter (payment by check or money 
order), or will be made in the form of an electronic fund transfer as 
provided by Sec. Sec.  25.164 and 25.165.

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 
FR 19313, May 22, 1987; T.D. ATF-301, 55 FR 47605, Nov. 14, 1990]



Sec.  25.174  Bond not sufficient.

    When the penal sum of the brewer's bond is in less than the maximum 
amount, the brewer shall prepay the tax on any withdrawal which would 
cause the outstanding liability for tax to exceed the limits of coverage 
of the bond. Prepayments will be made in accordance with Sec.  25.175.



Sec.  25.175  Prepayment of tax.

    (a) General. When a brewer is required to prepay tax under Sec.  
25.173, or if the penal sum of the bond, Form 5130.22, is insufficient 
for deferral of payment of tax on beer to be removed for consumption or 
sale, or if a brewer is not entitled to defer the tax under the 
provisions of this subpart, the brewer shall prepay the tax before any 
beer is removed for consumption or sale, or taken out of the brewery for 
removal for consumption or sale.
    (b) Method of prepayment. (1) Prepayment will be made by forwarding 
a tax return, Form 5000.24, with remittance, covering the tax on beer.
    (2) If a brewer is required by Sec.  25.165 to make payment of tax 
by electronic fund transfer, the brewer shall prepay the tax before any 
beer can be removed for consumption or sale by completing the return and 
by forwarding it, in accordance with the instructions on the form. At 
the same time, the brewer shall direct his or her bank to make 
remittance by EFT.
    (3) For the purpose of complying with this section, the term 
forwarding means depositing in the U.S. mail, properly addressed in 
accordance with the instructions on the form.

(Act of Aug. 16, 1954, 68A Stat. 777, as amended (26 U.S.C. 6311); sec. 
201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 
FR 19313, May 22, 1987]

                           Failure To Pay Tax



Sec.  25.177  Evasion of or failure to pay tax; failure to file a tax return.

    Sections 5671, 5673, 5684, 6651, and 6656 of Title 26 United States 
Code provide penalties for evasion or failure to pay

[[Page 709]]

tax on beer or for failure to file a tax return.

(Act of Aug. 16, 1954, 68A Stat. 821, as amended, 826, as amended (26 
U.S.C. 6651, 6656); sec. 201, Pub. L. 85-859, 72 Stat. 1408, 1410, as 
amended (26 U.S.C. 5671, 5673, 5684))



                Subpart L_Removals Without Payment of Tax

              Transfer to Another Brewery of Same Ownership



Sec.  25.181  Eligibility.

    A brewer may remove beer without payment of tax for transfer to any 
other brewery of the same ownership. These removals include a removal 
from a brewery owned by one corporation to a brewery owned by another 
corporation if (a) one corporation owns the controlling interest in the 
other corporation, or (b) the controlling interest in each corporation 
is owned by the same person. Beer removed under this section may, while 
in transit, be reconsigned to another brewery of the same ownership or 
be returned to the shipping brewery.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))



Sec.  25.182  Kinds of containers.

    A brewer may transfer beer without payment of tax from one brewery 
to another brewery belonging to the same brewer (a) in the brewer's 
packages or (b) in bulk containers, subject to limitations and 
conditions as may be imposed by the appropriate TTB officer. The brewer 
shall mark, brand or label containers as provided by subpart J of this 
part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))



Sec.  25.183  Determination of quantity transferred.

    The shipping brewer shall determine the quantity of beer shipped at 
the time of removal from the consignor brewery, and the receiving brewer 
shall determine the quantity of beer received at the time of receipt at 
the consignee brewery. The brewer shall equip the consignor and 
consignee breweries with suitable measuring devices to allow accurate 
determination of the quantities of beer to be shipped and received in 
bulk conveyances.

(Sec 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))



Sec.  25.184  Losses in transit.

    (a) Liability for losses. The brewer is liable under the bond of the 
brewery to which beer is transferred for the tax on beer lost in 
transit. If the brewer reconsigns beer while in transit or returns beer 
to the shipping brewery, the brewer is liable under the bond of the 
brewery to which the beer is reconsigned or returned for the tax on beer 
lost in transit.
    (b) Losses allowable without claim. If loss of beer being 
transferred does not exceed two percent of the quantity shipped, the 
brewer is not required to file a report of loss or a claim for allowance 
of the loss if there are no circumstances indicating that the beer, or 
any portion of the beer lost, was stolen or otherwise diverted to an 
unlawful purpose.
    (c) Losses requiring claim. If loss of beer during transit exceeds 
two percent of the quantity shipped, the brewer shall submit a claim 
under penalties of perjury for remission of the tax on the entire loss. 
The brewer shall prepare and submit the claim as provided in Sec.  
25.286.
    (d) Losses requiring immediate report. The brewer shall report to 
the appropriate TTB officer a loss by fire, theft, casualty or any other 
unusual loss as soon as it becomes known.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended 1389 (26 U.S.C. 
5056, 5414))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]



Sec.  25.185  Mingling.

    Beer transferred without payment of tax from one brewery to another 
brewery belonging to the same brewer may be mingled with beer of the 
receiving brewery. The brewer may handle the beer transferred in 
accordance with the requirements of this part relating to beer produced 
in the receiving brewery.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))

[[Page 710]]



Sec.  25.186  Record of beer transferred.

    (a) Preparation of invoice. When beer is transferred between 
breweries without payment of tax, the shipping brewer shall prepare a 
serially numbered invoice or commercial record, in duplicate, covering 
the transfer. The invoice will be marked ``transfer without payment of 
tax'' and will contain the following information:
    (1) Name and address of shipping brewer;
    (2) Date of shipment;
    (3) Name and address of receiving brewer;
    (4) For cases, the number and size of cases and the total barrels;
    (5) For kegs, the number and size of kegs and the total barrels;
    (6) For shipments in bulk containers, the type of container, 
identity of the container and the total barrels.
    (b) Reconsignment of beer. When beer is reconsigned in transit to 
another brewery of the same ownership, the shipping brewer shall (1) 
prepare a new invoice showing reconsignment to another brewery and shall 
void all copies of the original invoice, or (2) shall mark all copies of 
the original invoice with the words ``Reconsigned to ------,'' followed 
by the name and address of the brewery to which the beer is reconsigned.
    (c) Disposition of invoice. On shipment of the beer, the shipping 
brewer shall send the original copy of the invoice to the receiving 
brewer, and shall retain the other copy for the brewery records. On 
receipt of the beer, the receiving brewer (including a brewer to whom 
beer was returned or reconsigned in transit) shall note on the invoice 
any discrepancies in the beer received, and retain the invoice in the 
brewery records.
    (d) Preparation of records and report. The shipping brewer shall use 
the invoice showing beer removed to another brewery without payment of 
tax in preparing daily records under Sec.  25.292 and in preparing the 
Brewer's Report of Operations, Form 5130.9. The receiving brewer 
(including a brewer to whom beer was returned or reconsigned in transit) 
shall use the invoice showing beer received from another brewery without 
payment of tax in preparing daily records under Sec.  25.292 and in 
preparing the Brewer's Report of Operations, Form 5130.9.

(Sec. 201. Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40357, July 28, 1993]

                 Removal of Beer Unfit for Beverage Use



Sec.  25.191  General.

    A brewer may remove sour or damaged beer, or beer which the brewer 
has deliberately rendered unfit for beverage use, from the brewery 
without payment of tax for use in manufacturing. Unfit beer may be 
removed under this section for use as distilling material at alcohol 
fuel plants qualified under subpart Y of part 19 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))



Sec.  25.192  Removal of sour or damaged beer.

    (a) Containers. The brewer shall remove sour or damaged beer (1) in 
casks or other packages, containing not less than one barrel each and 
unlike those ordinarily used for packaging beer, or (2) in tanks, tank 
cars, tank trucks, tank ships, barges, or deep tanks of a vessel. The 
brewer shall mark the nature of the contents on each container.
    (b) Beer meter. The brewer shall remove sour or damaged beer without 
passing it through the meter (if any) or racking machine.
    (c) Records and reports. The brewer shall record the removal of sour 
or damaged beer in daily records under Sec.  25.292 and on the Brewer's 
Report of Operations, Form 5130.9.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5033))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40357, July 28, 1993]

         Removals for Analysis, Research, Development or Testing



Sec.  25.195  Removals for analysis.

    A brewer may remove beer, without payment of tax, to a laboratory 
for analysis to determine the character or

[[Page 711]]

quality of the product. Beer may be removed for analysis in packages or 
in bulk containers. The brewer shall record beer removed for analysis in 
daily records under Sec.  25.292 and on the Brewer's Report of 
Operations, Form 5130.9.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40357, July 28, 1993]



Sec.  25.196  Removals for research, development or testing.

    (a) A brewer may remove beer, without payment of tax, for use in 
research, development, or testing (other than consumer testing or other 
market analysis) of processes, systems, materials, or equipment relating 
to beer or brewery operations. Beer may be removed for research, 
development or testing in packages or in bulk containers.
    (b) The brewer shall mark each barrel, keg, case, or shipping 
container with the name and address of the brewer and of the consignee, 
the identity of the product, and the quantity of the product. If 
necessary to protect the revenue, the appropriate TTB officer may 
require a brewer to mark each container with the words ``Not for 
Consumption or Sale.'' If beer is removed in a bulk conveyance, the 
brewer shall place the marks on the route board of the conveyance.
    (c) The brewer shall record beer removed for research, development, 
or testing in daily records under Sec.  25.292 and on the Brewer's 
Report of Operations, Form 5130.9.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40357, July 28, 1993]

         Removal of Beer to a Contiguous Distilled Spirits Plant



Sec.  25.201  Removal by pipeline.

    A brewer may remove beer from the brewery, without payment of tax, 
by pipeline to the bonded premises of a distilled spirits plant which is 
authorized to produce distilled spirits and which is located contiguous 
to the brewery.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended, 1389, as amended 
(26 U.S.C. 5222, 5412))

                               Exportation



Sec.  25.203  Exportation without payment of tax.

    A brewer may remove beer without payment of tax (a) for exportation, 
(b) for use as supplies on vessels and aircraft, or (c) for transfer to 
and deposit in foreign-trade zones for exportation or for storage 
pending exportation, in accordance with Part 28 of this chapter. Beer 
may be removed from a brewery in bottles, kegs, or in bulk containers.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, T.D. TTB-8, 69 FR 3830, Jan. 
27, 2004]

                     Beer For Personal or Family Use



Sec.  25.205  Production.

    (a) Any adult may produce beer, without payment of tax, for personal 
or family use and not for sale. An adult is any individual who is 18 
years of age or older. If the locality in which the household is located 
requires a greater minimum age for the sale of beer to individuals, the 
adult shall be that age before commencing the production of beer. This 
exemption does not authorize the production of beer for use contrary to 
State or local law.
    (b) The production of beer per household, without payment of tax, 
for personal or family use may not exceed:
    (1) 200 gallons per calendar year if there are two or more adults 
residing in the household, or
    (2) 100 gallons per calendar year if there is only one adult 
residing in the household.
    (c) Partnerships except as provided in Sec.  25.207, corporations or 
associations may not produce beer, without payment of tax, for personal 
or family use.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))

[[Page 712]]



Sec.  25.206  Removal of beer.

    Beer made under Sec.  25.205 may be removed from the premises where 
made for personal or family use including use at organized affairs, 
exhibitions or competitions such as homemaker's contests, tastings or 
judging. Beer removed under this section may not be sold or offered for 
sale.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))



Sec.  25.207  Removal from brewery for personal or family use.

    Any adult, as defined in Sec.  25.205, who operates a brewery under 
this part as an individual owner or in partnership with others, may 
remove beer from the brewery without payment of tax for personal or 
family use. The amount of beer removed for each household, without 
payment of tax, per calendar year may not exceed 100 gallons if there is 
one adult residing in the household or 200 gallons if there are two or 
more adults residing in the household. Beer removed in excess of the 
above limitations will be reported as a taxable removal.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))



                   Subpart M_Beer Returned to Brewery



Sec.  25.211  Beer returned to brewery.

    (a) General. Beer, produced in the United States, on which the 
brewer has paid or determined the tax may be returned to any brewery of 
the brewer. Upon return of the beer to the brewery, the brewer shall 
determine the actual quantity of beer received, expressed in barrels. 
For cases or bottles, the label may be used to determine the quantity. 
When kegs or cases containing less than the original contents are 
received, the brewer shall determine the actual quantity of beer by 
weight or by other accurate means. The brewer shall determine the 
balling and alcohol content of returned keg beer unless the keg is 
equipped with tamper-proof fittings. The quantity of beer returned may 
be established by weighing individual packages and subtracting package 
weight, or by weighing accumulated beer and subtracting tare weight of 
dumpsters, pallets, packages and the like.
    (b) Disposition of returned beer. The brewer may dispose of beer 
returned under this subpart in any manner prescribed for beer which has 
never left the brewery. If returned beer is again removed for 
consumption or sale, tax will be determined and paid without respect to 
the tax which was determined or paid at the time of prior removal of the 
beer.
    (c) Records. For beer returned to the brewery under this subpart, 
the brewer's daily records under Sec.  25.292 will show:
    (1) Date;
    (2) Quantity of beer returned;
    (3) If the title to the beer has passed, the name and address of the 
person returning the beer; and
    (4) Name and address of the brewery from which the beer was removed, 
if different from the brewery to which returned.
    (d) Supporting records. The records of returned beer will be 
supported by invoices, credit memoranda or other commercial papers, and 
will differentiate beween beer returned to the brewery from which 
removed and beer returned to a brewery different from the one from which 
removed.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended, 
1390, as amended (26 U.S.C. 5054, 5056, 5415))



Sec.  25.212  Beer returned to brewery from which removed.

    If beer on which the tax has been determined or paid is returned to 
the brewery from which removed, the brewer shall take the quantity of 
beer as an offset or deduction against the quantity of beer removed for 
consumption or sale from the brewery on that business day, as provided 
in Sec.  25.159

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1390, as amended 
(26 U.S.C. 5056, 5415))



Sec.  25.213  Beer returned to brewery other than that from which removed.

    (a) Refund or adjustment of tax. If beer on which the tax has been 
determined or paid is returned to a brewery of the brewer other than the 
one from which removed, the brewer may make a claim

[[Page 713]]

for refund or relief of tax or may make an adjustment to the beer tax 
return, for the tax on the beer returned to the brewery. The brewer may 
not take an offset for beer returned to the brewery other than the one 
from which removed. Procedures for filing claims for refund or relief of 
tax or for making adjustments to the beer tax return are contained in 
Subpart T of this part.
    (b) Notice. A brewer need not file notice of intention to return 
beer to a brewery other than the one from which removed unless required 
by the appropriate TTB officer. When a notice is required, the brewer 
shall serially number each notice and execute it under penalties of 
perjury as defined in Sec.  25.11. The brewer must file it with the 
appropriate TTB officer. The notice will contain the following 
information:
    (1) The number and sizes of kegs and the actual quantity of beer, in 
barrels; or the number of cases and the number and sizes of bottles 
within the cases and the actual quantity of beer, in barrels;
    (2) The name and address of the brewery from which the beer was 
removed;
    (3) A statement that the tax on the beer has been fully paid or 
determined and the rate at which the tax on the beer was paid or 
determined; and
    (4) If the title to the beer has passed, the name and address of the 
person returning the beer.
    (c) Return of beer. If the brewer is required to file a notice of 
intention to return beer to the brewery, the brewer may bring the beer 
onto the brewery premises prior to filing the notice. The brewer shall 
segregate the returned beer from all other beer at the brewery and 
clearly identify it as returned beer. The returned beer will be retained 
intact for inspection by an appropriate TTB officer until the notice has 
been filed and disposition authorized.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]



                     Subpart N_Voluntary Destruction



Sec.  25.221  Voluntary destruction of beer.

    (a) On brewery premises. (1) A brewer may destroy, at the brewery, 
beer on which the tax has not been determined or paid.
    (2) A brewer operating a tavern on brewery premises under Sec.  
25.25 may destroy taxpaid or tax-determined been stored on brewery 
premises, in accordance with the requirements of Sec.  25.225.
    (b) Destruction without return to brewery. A brewer may destroy beer 
on which the tax has been paid or determined at a location other than 
any of the breweries operated by the brewer, upon compliance with this 
subpart.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. 
ATF-268, 53 FR 8629, Mar 16, 1988, as amended by T.D. 372, 61 FR 20724, 
May 8, 1996]



Sec.  25.222  Notice of brewer.

    (a) Beer to be destroyed. When a brewer possesses beer which has 
been taxpaid or tax determined and which the brewer wishes to destroy at 
a location other than at any of the brewer's breweries, the brewer shall 
give written notice of intention to destroy the beer. The brewer must 
submit this notice to the appropriate TTB officer.
    (b) Execution of notice. The brewer shall serially number each 
notice and execute each notice under penalties of perjury as defined in 
Sec.  25.11. The brewer shall specify the date on which the beer is to 
be destroyed; this date may not be less than 12 days from the date the 
notice is mailed or delivered to the appropriate TTB officer.
    (c) Information to be furnished. The notice will contain the 
following information:
    (1) The number and sizes of kegs and the actual quantity of beer, in 
barrels; or the number of cases and the number and sizes of bottles 
within the cases, and the actual quantity of beer in barrels. When kegs 
containing less than the actual contents are to be destroyed, the brewer 
shall determine the actual content of beer by weight or by other 
accurate means.

[[Page 714]]

    (2) The date on which the beer was received for destruction.
    (3) A statement that the tax on the beer has been fully paid or 
determined and the rate at which the tax on the beer was paid or 
determined.
    (4) If the title of the beer has passed, the name and address of the 
person returning the beer.
    (5) The location at which the brewer desires to destroy the beer and 
the reason for not returning the beer to the brewery.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]



Sec.  25.223  Destruction of beer off brewery premises.

    (a) Destruction without supervision. A brewer may destroy beer 
without supervision if the appropriate TTB officer does not advise the 
brewer before the date specified in the notice that destruction of the 
beer is to be supervised.
    (b) Destruction with supervision. The appropriate TTB officer may 
require that an approriate TTB officer verify the information in the 
notice of destruction or witness the destruction of the beer. The 
appropriate TTB officer may also require a delay in the destruction of 
the beer or, if the place of destruction is not readily accessible to an 
appropriate TTB officer, may require that the beer be moved to a more 
convenient location. In this case, the brewer may not destroy the beer 
except under the conditions imposed by the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5479, Jan. 19, 2001]



Sec.  25.224  Refund or adjustment of tax.

    (a) Claim for refund or relief of tax. The tax paid by a brewer on 
beer produced in the United States and destroyed in accordance with this 
subpart may be refunded to the brewer. If the tax has not been paid, the 
brewer may be relieved of liability for the tax. Claims for refund or 
relief of tax will be filed as provided in subpart T of this part.
    (b) Adjustments to the excise tax return. A brewer may make an 
adjustment (without interest) to the excise tax return, Form 5000.24, 
covering the tax paid on beer produced in the United States and 
destroyed in accordance with this subpart. Procedures for making 
adjustments to tax returns are contained in subpart T of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))



Sec.  25.225  Destruction of taxpaid beer which was never removed from brewery premises.

    (a) General. A brewer operating a taven on brewery premises under 
Sec.  25.25 may destroy taxpaid or tax-determined beer which was never 
removed from brewery premises, in accordance with the recordkeeping 
requirements of paragraph (b) of this section, and with the benefit of 
the tax refund provisions of paragraph (c) of this section.
    (b) Recordkeeping. (1) When taxpaid or tax-determined beer which was 
never removed from brewery premises is destroyed, the brewer shall 
prepare a record of the quantity of beer destroyed, and the reason for, 
date of, and method of, destruction. The brewer may prepare this record 
on Form 2635 (5620.8) for submission as a claim under Sec.  25.283.
    (2) When required by the appropriate TTB officer, the brewer shall 
notify the appropriate TTB officer prior to the intended destruction, in 
accordance with procedures established by the appropriate TTB officer.
    (c) Refund of tax. After destruction is completed, the brewer may 
file a claim for refund or credit of tax, in accordance with Sec.  
25.283(c).

[T.D. ATF-268, 53 FR 8629, Mar 16, 1988]



              Subpart O_Beer Purchased From Another Brewer



Sec.  25.231  Finished beer.

    (a) A brewer may obtain beer in barrels and kegs, finished and ready 
for sale from another brewer. The purchasing brewer may furnish the 
producing brewer barrels and kegs marked with the purchasing brewer's 
name and

[[Page 715]]

location. The producing brewer shall pay the tax as provided in subpart 
K of this part.
    (b) A brewer may not purchase taxpaid or tax determined beer from 
another brewer in bottles or cans which bear the name and address of the 
purchasing brewer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5413))



Sec.  25.232  Basic permit.

    A brewer who engages in the business of purchasing beer for resale 
is required to possess a wholesaler's or importer's basis permit under 
the provisions of section 3(c) of the Federal Alcohol Administration Act 
and Part 1 of this chapter.



                        Subpart P_Cereal Beverage



Sec.  25.241  Production.

    Brewers may produce cereal beverage and remove it without payment of 
tax from the brewery. The method of production shall insure that the 
alcohol content of the cereal beverage will not increase while in the 
original container after removal from the brewery. The brewer shall keep 
cereal beverage separate from beer, and shall measure the quantity of 
cereal beverage transferred for packaging in accordance with Sec.  
25.41.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))



Sec.  25.242  Markings.

    (a) Designation. When bottled or packaged, cereal beverage may be 
designated ``Cereal Beverage,'' ``Malt Beverage,'' ``Near Beer,'' or 
other distinctive name. If designated ``Near Beer,'' those words will be 
printed identically in the same size or style of type, in the same color 
of ink, and on the same background.
    (b) Barrels and kegs. A brewer may remove cereal beverage in barrels 
and kegs if the sides are durably painted at each end with a white 
stripe not less than 4 inches in width and the heads are painted in a 
solid color, with conspicuous lettering in a contrasting color reading 
``Nontaxable under section 5051 I.R.C.'' The brewer shall also legibly 
mark the brewer's name or trade name and the address on the container.
    (c) Bottles. Bottle labels shall show the name or trade name and 
address of the brewer, the distinctive name of the beverage, if any, and 
the legend ``Nontaxable under section 5051 I.R.C.'' Other information 
which is not inconsistent with the requirements of this section may be 
shown on bottle lablels.
    (d) Cases. The brewer shall mark cases or shipping containers to 
show the nature of the product and the name or trade name and address of 
the brewer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))



         Subpart Q_Removal of Brewer's Yeast and Other Articles



Sec.  25.251  Authorized removals.

    (a) Brewer's yeast. A brewer may remove brewer's yeast, in liquid or 
solid form containing not less than 10 percent solids (as determined by 
the methods of analysis of the American Society of Brewing Chemists), 
from the brewery in barrels, tank trucks, in other suitable containers, 
or by pipeline.
    (b) Containers. Containers will bear a label giving the name and 
location of the brewery and including the words ``Brewer's Yeast.''
    (c) Pipeline. If brewer's yeast is removed by pipeline, the pipeline 
will be described in the Brewer's Notice, Form 5130.10. The premises 
where the brewer's yeast is received is subject to inspection by an 
appropriate TTB officer during ordinary business hours.
    (d) Other articles. A brewer may remove malt, malt syrup, wort, and 
other articles from the brewery.
    (e) Methods of Analysis of the American Society of Brewing Chemists, 
Seventh Edition (1976). In reference to paragraph (a) of this section, 
this incorporation by reference was approved by the Director of the 
Federal Register on March 23, 1981, and is available for inspection or 
at the National Archives and Records Administration (NARA). For 
information on the availability of this material at NARA, call 202-741-
6030, or go to: http://www.archives.gov/federal--register/code--of--
federal--regulations/

[[Page 716]]

ibr--locations.html. This publication is available from the American 
Society of Brewing Chemists, 40 Pilot Knob Road, St. Paul, Minnesota 
55121.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411))

[ T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended at 69 FR 18803, 
Apr. 9, 2004]



Sec.  25.252  Records.

    (a) Production. The brewer shall keep records of the production of 
malt syrup, wort, and other articles which are removed from the brewery. 
The record shall include the quantities and kinds of materials used, and 
in the case of wort and concentrated wort, the balling.
    (b) Removals. The brewer shall keep records of removals of brewer's 
yeast, malt and other articles from the brewery. The record shall 
include the quantity and date of removal of each lot, and the name and 
address of the consignee. These records may consist of invoices or 
shipping documents.
    (c) Inspection. All records under this section shall be available 
for inspection at the brewery by an appropriate TTB officer during 
normal business hours.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))



                       Subpart R_Beer Concentrate



Sec.  25.261  General.

    (a) Authorized processes. A brewer may, in accordance with this 
subpart--
    (1) Produce concentrate from beer,
    (2) Reconstitute beer from concentrate,
    (3) Transfer concentrate from one brewery to another brewery of the 
same ownership, and
    (4) Remove concentrate without payment of tax for exportation, or 
for transfer to and deposit in a foreign-trade zone for exportation or 
for storage pending exportation in accordance with Part 28 of this 
chapter.
    (b) Brewery treatment of concentrate. Beer reconstituted from 
concentrate in accordance with this subpart shall (except with respect 
to the additional labeling of reconstituted beer under Sec.  25.263) be 
treated the same as beer which has not been concentrated and 
reconstituted.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3830, Jan. 27, 2004]



Sec.  25.262  Restrictions and conditions on processes of concentration and reconstitution.

    (a) Conditions on concentration. A brewer may not employ any process 
of concentration which separates alcohol spirits from any fermented 
substance.
    (b) Conditions on reconstitution--(1) The process of reconstitution 
of beer will consist of the addition to the concentrate of carbon 
dioxide and water only.
    (2) A brewer may not employ any process of concentration or 
reconstitution unless the beer upon reconstitution will, without the 
addition of any substance other than carbon dioxide and water, possess 
the taste, aroma, color, and other characteristics of beer which has not 
been concentrated.
    (3) The process of reconstitution shall provide for the addition of 
sufficient water to restore the concentrate to a volume not less than, 
and an alcohol content not greater than, that of the beer used to 
produce the concentrate.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1315, as amended, 1388, as amended 
(26 U.S.C. 5002, 5401))



Sec.  25.263  Production of concentrate and reconstitution of beer.

    (a) Operations at brewery. A brewer may concentrate beer or 
reconstitute beer only at a brewery.
    (b) Marking of containers. Containers of concentrate transferred to 
other breweries of the same ownership, and containers of concentrate 
removed for export shall be marked, branded and labeled in the same 
manner as prescribed for containers of beer in subpart J of this part. 
All containers shall be identified as containers of beer concentrate.
    (c) Mingling with beer. A brewer may not mingle concentrate with 
unconcentrated beer. A brewer may mingle reconstituted beer with other 
beer at the brewery.

[[Page 717]]

    (d) Additional labeling. Barrels, kegs, and bottles containing beer 
produced from concentrate will show by label or otherwise the statement 
``PRODUCED FROM . . . CONCENTRATE,'' the blank to be filled in with the 
appropriate class designation of the beer (beer, lager, ale, stout, 
etc.) from which the concentrate was made. The statement will be 
conspicuous and readily legible and, in the case of bottled beer, will 
appear in direct conjunction with, and as a part of, the class 
designation. All parts of the class designation will appear in lettering 
of substantially the same size and kind.
    (e) Records and reports. Brewers producing concentrate and brewers 
reconstituting beer from concentrate shall keep the records and reports 
required by subpart U of this part.



Sec.  25.264  Transfer between breweries.

    (a) Authorized transfers. A brewer may remove from the brewery, 
without payment of tax, concentrate produced from beer for transfer to 
any other brewery of the same ownership (within the limits of ownership 
described in Sec.  25.181).
    (b) Record of concentrate transferred. When transferring concentrate 
between breweries, the shipping brewer shall prepare for each conveyance 
a serially numbered invoice or commercial record covering the transfer. 
The invoice will be clearly marked to indicate that concentrate produced 
from beer is being transferred. The invoice will contain the following 
information:
    (1) Name and address of shipping brewer;
    (2) Date of shipment;
    (3) Name and address of receiving brewer;
    (4) The number of containers transferred, the balling, percentage of 
alcohol by volume, and the total barrels of concentrate; and
    (5) A description of the beer from which the concentrate was 
produced including the number of barrels, balling, and percentage of 
alcohol by volume.
    (c) Disposition of invoice. On shipment of the concentrate, the 
shipping brewer shall send the original copy of the invoice to the 
receiving brewer and shall retain a copy for the brewery records. On 
receipt of the concentrate, the receiving brewer shall note on the 
invoice any discrepancies in the concentrate received and retain the 
invoice in the brewery records.



                     Subpart S_Pilot Brewing Plants



Sec.  25.271  General.

    (a) Establishment. A person may establish and operate a pilot 
brewing plant off the brewery premises for research, analytical, 
experimental, or developmental purposes relating to beer or brewery 
operations. Pilot brewing plants will be established as provided in this 
subpart.
    (b) Authorized removals. Beer may be removed from a pilot brewing 
plant only for analysis or organoleptic examination.
    (c) Transfers between brewery and pilot brewing plant. Subject to 
subpart L of this part, beer may be transferred to a pilot brewing plant 
from a brewery of the same ownership, and beer may be transferred 
without payment of tax from a pilot brewing plant to a brewery of the 
same ownership.
    (d) Other regulations applicable. The provisions of subparts A, B, 
F, I, K, and of Sec. Sec.  25.63, 25.64, and 25.21 are applicable to 
pilot brewing plants established under this subpart. Also, the 
provisions of Sec. Sec.  25.72-25.75, 25.77, 25.92 and 25.94-25.105 
relating to bonds, and consents of surety, and of Sec. Sec.  25.131-
25.134 are applicable to bonds and consents of surety given, and to 
changes in the proprietorship, location, and premises of pilot brewing 
plants established under this subpart.

(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))



Sec.  25.272  Application.

    (a) Form of application. Any person desiring to establish a pilot 
brewing plant under the subpart shall file an application with the 
appropriate TTB officer. The application will be in writing and will 
include the following:
    (1) Name and address of the applicant;
    (2) Description of the premises and equipment to be used in the 
operations;
    (3) Nature, purpose, and extent of the operations; and

[[Page 718]]

    (4) A statement that the applicant agrees to comply with all 
provisions of this part applicable to the operations to be conducted.
    (b) Additional information. The appropriate TTB officer may at any 
time before or after approval of an application, require the submission 
of additional information necessary for administration of this part or 
for protection of the revenue.
    (c) Authorization of operations. The appropriate TTB officer may 
authorize the operation of a pilot brewing plant if it is determined 
that the plant will be operated solely for one or more of the purposes 
specified in Sec.  25.271, and that operations will not jeopardize the 
revenue.
    (d) Withdrawal of authorization. The appropriate TTB officer may 
withdraw authorization to operate a pilot brewing plant if in his or her 
judgment, the revenue would be jeopardized by the operations of the 
plant.
    (e) Commencement of operations. A person may not begin operation of 
a pilot brewing plant until the appropriate TTB officer has approved the 
application required by this section.

(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))



Sec.  25.273  Action on application.

    If the appropriate TTB officer approves the application for a pilot 
brewing plant, he or she will note approval on the application and 
forward a copy to the applicant. The applicant must file the copy of the 
approved application at the premises, available for inspection by an 
appropriate TTB officer.

[T.D. ATF-437, 66 FR 5480, Jan. 19, 2001]



Sec.  25.274  Bond.

    (a) Requirement. Any person requesting authorization to establish a 
pilot brewing plant under this subpart shall execute and file a brewer's 
bond, Form 5130.22. A person may not begin operation of a pilot brewing 
plant until receiving notice from the appropriate TTB officer of the 
approval of the bond. Operations may continue only as long as an 
approved bond is in effect.
    (b) Penal sum. The penal sum of a bond covering the premises of a 
pilot brewing plant will be an amount equal to the potential tax 
liability of the maximum quantity of beer on hand, in transit to the 
plant, and unaccounted for at any one time, computed by multiplying the 
quantity of beer in barrels by the rate of tax in 26 U.S.C. 5051. The 
penal sum of the bond (or total penal sum if original and strengthening 
bonds are filed) may not exceed $50,000 or be less than $500.
    (c) Conditions of bonds. The bond will be conditioned that the 
operator of the pilot brewing plant shall pay, or cause to be paid, to 
the United States according to the laws of the United States and the 
provisions of this part, the taxes, including penalties and interest for 
which the operator shall become liable, on all beer brewed, produced, or 
received on the premises.

(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))



Sec.  25.275  Special tax.

    The special tax imposed on a brewer by 26 U.S.C. 5091 shall be paid 
in accordance with subpart I of this part.



Sec.  25.276  Operations and records.

    (a) Commencement of operations. A person may commence operation of a 
pilot brewing plant upon receipt of the approved application and bond.
    (b) Reports. The operator of a pilot brewing plant is not required 
to file the Brewer's Report of Operations, Form 5130.9.
    (c) Records. The operator of a pilot brewing plant must maintain 
records which, in the opinion of the appropriate TTB officer, are 
appropriate to the type of operation being conducted. These records will 
include information sufficient to account for the receipt, production, 
and disposition of all beer received or produced on the premises, and 
the receipt (and disposition, if removed) of all brewing materials. 
These records will be available for inspection by an appropriate TTB 
officer.

(Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40357, July 28, 1993; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001]

[[Page 719]]



Sec.  25.277  Discontinuance of operations.

    When operations of a pilot brewing plant are to be discontinued, the 
operator shall notify the appropriate TTB officer stating the purpose of 
the notice and giving the date of discontinuance. When operations have 
been completed and all beer at the premises has been disposed of and 
accounted for, the appropriate TTB officer will note approval on the 
notice and return a copy to the operator.



     Subpart T_Refund or Adjustment of Tax or Relief From Liability



Sec.  25.281  General.

    (a) Reasons for refund or adjustment of tax or relief from 
liability. The tax paid by a brewer on beer produced in the United 
States may be refunded, or adjusted on the tax return (without interest) 
or, if the tax has not been paid, the brewer may be relieved of 
liability for the tax on:
    (1) Beer returned to any brewery of the brewer subject to the 
conditions outlined in subpart M of this part;
    (2) Beer voluntarily destroyed by the brewer subject to the 
conditions outlined in subpart N of this part;
    (3) Beer lost by fire, theft, casualty, or act of God subject to the 
conditions outlined in Sec.  25.282.
    (b) Refund of beer tax excessively paid. A brewer may be refunded 
the tax excessively paid on beer subject to the conditions outlined in 
Sec.  25.285.
    (c) Rate of tax. Brewers who have filed the notice required by Sec.  
25.167 and who have paid the tax on beer at the reduced rate of tax 
shall make claims for refund or relief of tax, or adjustments on the tax 
return, based upon the lower rate of tax. However, a brewer may make 
adjustments or claims for refund or relief of tax based on the higher 
rate of tax if the brewer can establish to the satisfaction of the 
appropriate TTB officer that the tax was paid or determined at the 
higher rate of tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))



Sec.  25.282  Beer lost by fire, theft, casualty, or act of God.

    (a) General. The tax paid by any brewer on beer produced in the 
United States may be adjusted (without interest) on the excise tax 
return, may be refunded or credited (without interest) or, if the tax 
has not been paid, the brewer may be relieved of liability for the tax 
if, before transfer of title to the beer to any other person, the beer 
is lost, whether by theft or otherwise, or is destroyed or otherwise 
rendered unmerchantable by fire, casualty, or act of God. The tax 
liability on excessive losses of beer from transfer between breweries of 
the same ownership may be remitted as provided in Sec.  25.286.
    (b) Unmerchantable beer. When beer is rendered unmerchantable by 
fire, casualty, or act of God, refund, credit or adjustment of tax, or 
relief from liability of tax will not be allowed unless the brewer 
proves to the satisfaction of the appropriate TTB officer that the beer 
cannot be salvaged and returned to the market for consumption or sale.
    (c) Beer lost or destroyed. When beer is lost or destroyed, whether 
by theft or otherwise, the appropriate TTB officer may require the 
brewer to file a claim for relief from the tax and to submit proof as to 
the cause of the loss.
    (d) Beer lost by theft. When it appears that beer was lost by theft, 
the tax shall be collected unless the brewer proves to the satisfaction 
of the appropriate TTB officer that the theft occurred before removal 
from the brewery and occurred without connivance, collusion, fraud, or 
negligence on the part of the brewer, consignor, consignee, bailee, or 
carrier, or the employees or agents of any of them.
    (e) Notification of appropriate TTB officer. (1) A brewer who 
sustains a loss of beer before transfer of title of the beer to another 
person and who desires to adjust the tax on the excise tax return or to 
file a claim for refund or for relief from liability of tax, must, on 
learning of the loss of beer, immediately notify in writing the 
appropriate TTB officer of the nature, cause, and extent of the loss, 
and the place where the loss occurred. Statements of witnesses or other 
supporting documents must be furnished if available.
    (2) A brewer possessing unmerchantable beer and who desires to 
adjust the tax on the excise tax return or to file a claim for refund or 
for relief from liability must notify in

[[Page 720]]

writing the appropriate TTB officer, of the circumstances by which the 
beer became unmerchantable, and must state why the beer cannot be 
salvaged and returned to the market for consumption or sale.
    (f) Additional information. The appropriate TTB officer may require 
the brewer to submit additional evidence necessary to verify the tax 
adjustment or for use in connection with a claim.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5480, Jan. 19, 2001]



Sec.  25.283  Claims for refund of tax.

    (a) Beer returned to brewery or voluntarily destroyed at a location 
other than a brewery. Claims for refund of tax on beer returned to a 
brewery under the provisions of Sec.  25.213 or voluntarily destroyed at 
a location other than a brewery shall include:
    (1) The name and address of the brewer filing the claim, the address 
of the brewery from which the beer was removed, and the address of the 
brewery to which the beer was returned, as applicable;
    (2) The quantity of beer covered by the claim and the rate(s) of tax 
at which the beer was tax paid or determined;
    (3) The amount of tax for which the claim is filed;
    (4) The reason for return or voluntary destruction of the beer and 
the related facts;
    (5) Whether the brewer is indemnified by insurance or otherwise in 
respect of the tax, and if so, the nature of the indemnification;
    (6) The claimant's reasons for believing the claim should be 
allowed;
    (7) The date the beer was returned to the brewery, if applicable;
    (8) The name of the person from whom the beer was received;
    (9) A statement that the tax has been fully paid or determined; and
    (10) A reference to the notice (if required) filed under Sec. Sec.  
25.213 or 25.222.
    (b) Beer lost, destroyed, or rendered unmerchantable. Claims for 
refund of tax on beer lost, whether by theft or otherwise, or destroyed 
or otherwise rendered unmerchantable by fire, casualty, or act of God 
shall contain:
    (1) Information required by paragraphs (a)(1), (2), (3), (5), and 
(6) of this section;
    (2) A statement of the circumstances surrounding the loss;
    (3) When applicable, the reason the beer rendered unmerchantable 
cannot be returned to the market for consumption or sale;
    (4) Date of the loss, and if lost in transit, the name of the 
carrier;
    (5) A reference incorporating the notice required by Sec.  25.282; 
and
    (6) When possible, affidavits of persons having knowledge of the 
loss, unless the affidavits are contained in the notice given under 
Sec.  25.282.
    (c) Voluntary destruction of taxpaid beer which was never removed 
from brewery premises. Claims for refund or credit of tax on beer 
voluntarily destroyed under the provisions of Sec.  25.225, shall 
include:
    (1) Information required by paragraphs (a)(1), (a)(2), (a)(3), 
(a)(5), and (a)(9) of this section; and
    (2) The information contained in the record required by Sec.  
25.225(b).
    (d) Additional evidence. The appropriate TTB officer may require the 
submission of additional evidence in support of any claim filed under 
this section.
    (e) Filing of claim. Claim for refund of tax shall be filed on Form 
2635 (5620.8). Claims shall be filed within 6 months after the date of 
the return, loss, destruction, or rendering unmerchantable. Claims will 
not be allowed if filed after the prescribed time or if the claimant was 
indemnified by insurance or otherwise in respect of the tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 
FR 19314, May 22, 1987; T.D. ATF-268, 53 FR 8629, Mar 16, 1988; T.D. 
ATF-437, 66 FR 5480, Jan. 19, 2001]



Sec.  25.284  Adjustment of tax.

    (a) Adjustment of tax in lieu of refund. In lieu of filing a claim 
for refund of tax as provided in Sec.  25.283, a brewer may make an 
adjustment (without interest) to the excise tax return, Form 5000.24, 
for the amount of tax paid on

[[Page 721]]

beer returned to the brewery, voluntarily destroyed, lost, destroyed, or 
rendered unmerchantable.
    (b) Beer returned to brewery other than from which removed. An 
adjustment may be made on the excise tax return for the amount of tax 
paid on beer returned to the brewery under Sec.  25.213. The adjustment 
will be made on the tax return filed for the brewery to which the beer 
was returned. The adjustment may not be made prior to the return of beer 
to the brewery. If the brewer is required to file a notice under Sec.  
25.213, the adjustment may not be made until the appropriate TTB officer 
authorizes disposition of the beer.
    (c) Beer voluntarily destroyed. An adjustment may be made on the 
excise tax return for the amount of tax paid on beer voluntarily 
destroyed under subpart N of this part. The adjustment will be made on 
the tax return filed for the brewery from which the beer was removed. 
The adjustment may not be made prior to the destruction of the beer.
    (d) Beer lost, destroyed or rendered unmerchantable. An adjustment 
may be made on the excise tax return for the amount of tax paid on beer 
lost, destroyed, or rendered unmerchantable under Sec.  25.282. The 
adjustment will be made on the tax return filed for the brewery from 
which the beer was removed. A brewer may not make an adjustment prior to 
notification required under Sec.  25.282(e). When beer appears to have 
been lost due to theft, the brewer may not make an adjustment to the tax 
return until establishing to the satisfaction of the appropriate TTB 
officer that the theft occurred before removal from the brewery and 
occurred without connivance, collusion, fraud, or negligence on the part 
of the brewer, consignor, consignee, bailee, or carrier, or the 
employees or agents of any of them.
    (e) Condition of adjustments. (1) All adjustments will be made 
within 6 months of the return, destruction, loss, or rendering 
unmerchantable of the beer.
    (2) Adjustment of the tax paid will be made without interest.
    (3) An adjustment may not be taken if the brewer was indemnified by 
insurance or otherwise in respect of the tax.
    (f) Records. When brewers make adjustments on the excise tax return 
in lieu of filing a claim, they shall keep the following records;
    (1) For beer returned to the brewery or voluntarily destroyed, the 
records required by Sec. Sec.  25.283(a)(1), (2), (4), (5), (7), (8), 
and (10).
    (2) For beer lost, destroyed, or rendered unmerchantable, the 
records required by Sec.  25.283 (a)(1), (2), (5), (b) (2), (3), (4), 
(5), and (6).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 
FR 5480, Jan. 19, 2001; T.D. ATF-437a, 66 FR 17809, Apr. 4, 2001]



Sec.  25.285  Refund of beer tax excessively paid.

    (a) Eligibility. A brewer who, under the provisions of Sec.  25.152, 
is eligible to pay the reduced rate of tax on beer prescribed by 26 
U.S.C. 5051 (a)(2), but who did not pay tax at the reduced rate by 
return, Form 5000.24, during the calendar year for which the brewer was 
eligible, may file a claim for refund of tax excessively paid on beer 
for that year. The brewer shall file the claim for refund to tax on Form 
2635 (5620.8) within the period of limitation prescribed in 26 U.S.C. 
6511(a). For rules relating to the period of limitation on filing 
claims, see Sec. Sec.  70.82 and 70.83.
    (b) Calculation of refund. The brewer shall file the claim based on 
the quantity of beer eligible to be taxpaid at the lower rate of tax, 
but which was paid at the higher rate of tax, subject to a maximum of 
60,000 barrels of beer per calendar year or the limitation as determined 
in Sec.  25.152(d). The brewer shall exclude from the claim the quantity 
of beer removed that calendar year on which a credit or refund at the 
higher rate of tax has been taken.
    (c) Information to be furnished. Each claim for refund of tax filed 
under this section shall include the following information:
    (1) Name and address of the brewer.
    (2) Quantity of beer covered by the claim as determined in paragraph 
(b) of this section.
    (3) Amount of tax paid in excess.

[[Page 722]]

    (4) A statement of the exact number of barrels of beer which the 
brewer produced during the calendar year.
    (5) A statement that the brewer is not a member of a controlled 
group of brewers (as defined in Sec.  25.152(b)(1) or, if the brewer is 
a member of a controlled group of brewers, a list of the names and 
addresses of all the members of the controlled group of brewers and a 
statement of the combined number of barrels of beer produced by all 
members of the controlled group in the calendar year.
    (6) If the brewer is a member of a controlled group of brewers, a 
statement of how the 60,000 barrel limitation for the reduced rate of 
tax is to be apportioned among the members of the controlled group of 
brewers.

(Act of August 16, 1954, 68A Stat. 791, as amended (26 U.S.C. 6402); 
sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 
FR 19314, May 22, 1987; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001]



Sec.  25.286  Claims for remission of tax on beer lost in transit between breweries.

    (a) Filing of claim. Claims for remission of tax on beer lost in 
transit between breweries of the same ownership shall be prepared on 
Form 2635 (Form 5620.8) by the brewer or the brewer's authorized agent 
and submitted with the Form 5130.9 of the receiving brewery for the 
reporting period in which the shipment is received. When the loss is by 
casualty, the claim will be submitted with the Form 5130.9 for the 
reporting period in which the loss is discovered. When, for valid 
reason, the required claim cannot be submitted with Form 5130.9, the 
brewer shall attach a statement to Form 5130.9 stating the reason why 
the claim cannot be filed at the time and stating when it will be filed. 
A claim will not be allowed unless filed within 6 months of the date of 
the loss.
    (b) Information to be shown. The claim will show the following 
information:
    (1) The date of the shipment;
    (2) The quantity of beer lost (number and size of packages and their 
equivalent in barrels), and the rate(s) of tax at which the beer would 
have been removed for consumption or sale;
    (3) The percent of loss;
    (4) The specific cause of the loss;
    (5) The nature of the loss (leakage, breakage, casualty, etc.);
    (6) Information as to whether the claimant has been indemnified by 
insurance or otherwise in respect to the tax, or has any claim for 
indemnification; and
    (7) For losses due to casualty or accident, statements from the 
carrier or other persons having personal knowledge of the loss, if 
available.

(27 U.S.C. 5056, 5414)

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. 
ATF-345, 58 FR 40357, July 28, 1993]



                      Subpart U_Records and Reports



Sec.  25.291  Records.

    (a) General. (1) The records to be maintained by brewers include:
    (i) All individual transaction forms, records, and summaries 
specifically required by this part;
    (ii) All supplemental, auxiliary, and source data used in the 
compilation of required forms, records, and summaries, and for 
preparation of reports, returns, and claims; and
    (iii) Copies of notices, reports, returns, and approved applications 
and other documents relating to operations and transactions.
    (2) The records required by this part may consist of the brewer's 
commercial documents, rather than records prepared expressly to meet the 
requirements of this part, if those documents contain all the details 
required by this part, are consistent with the general requirements of 
clarity and accuracy, and do not result in difficulty in their 
examination.
    (b) Entries. (1) Each entry required by this part to be made in 
daily records will be made not later than the close of the business day 
next succeeding the day on which the transaction occurs.
    (2) When the brewer prepares transaction or business records 
concurrenty with the individual operation or transaction and these 
records contain all the required information with respect to the 
operation or transaction, entries

[[Page 723]]

in daily records may be made not later than the close of business the 
third business day succeeding the day on which the operation or 
transaction occurs.
    (c) Content. (1) All entries in the daily records required by this 
subpart will show the date of the operation or transaction.
    (2) Daily records will accurately and clearly reflect the details of 
each operation or transaction and, as applicable, contain all data 
necessary to enable--
    (i) Brewers to prepare summaries, reports, and returns required by 
this part, and
    (ii) Appropriate TTB officers to verify removals of beer and cereal 
beverages, to verify claims, and to ascertain if there has been 
compliance with law and regulations.
    (d) Format. (1) The brewer's copies of prescribed forms which bear 
all required details will be utilized as daily records.
    (2) When a form is not prescribed, the records required by this 
subpart will be those commercial records used by the brewer in the 
accounting system and will bear all required details.
    (3) The brewer shall maintain daily records required by this part so 
they clearly and accurately reflect all mandatory information. When the 
format or arrangement of the daily records is such that the information 
is not clearly or accurately shown, the appropriate TTB officer may 
require a format or arrangement which will clearly and accurately show 
the information.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))



Sec.  25.292  Daily records of operations.

    (a) Daily records. A brewer shall maintain daily records of 
operations which show by quantity the following:
    (1) Each kind of material received and used in the production of 
beer and cereal beverage (including the balling and the quantity of each 
type of material used in the production of wort or concentrated wort).
    (2) Beer and cereal beverage produced (including water added after 
production is determined).
    (3) Beer and cereal beverage transferred for and returned from 
bottling.
    (4) Beer and cereal beverage transferred for and returned from 
racking.
    (5) Beer and cereal beverage bottled.
    (6) Beer and cereal beverage racked.
    (7) Cereal beverage removed from the brewery.
    (8) Beer removed for consumption or sale. For each removal, the 
record will show the date of removal, the person to whom the beer was 
shipped or delivered (not required for sales in quantities of one-half 
barrel or less for delivery at the brewery), and the quantities of beer 
removed in kegs and in bottels.
    (9) Beer removed without payment of tax. For each removal, the 
record will show the date of removal, the person to whom the beer was 
shipped or delivered, and the quantities of beer removed in kegs, 
bottles, tanks, tank cars, tank trucks, tank ships, barges or deep tanks 
of vessels.
    (10) Packaged beer used for laboratory samples at the brewery.
    (11) Beer consumed at the brewery.
    (12) Beer returned to the brewery from which removed.
    (13) Beer returned to the brewery after removal from another brewery 
owned by the brewer.
    (14) Beer reconditioned, used as material, or destroyed.
    (15) Beer received from other breweries or received from pilot 
brewing plants.
    (16) Beer and cereal beverage lost due to breakage, theft, casualty, 
or other unusual cause.
    (17) Brewing materials sold or transferred to pilot brewing plants 
(including the name and address of the person to whom shipped or 
delivered) and brewing materials used in the manufacture of wort, wort 
concentrate, malt syrup, and malt extract for sale or removal.
    (18) Record of tests of measuring devices.
    (19) Beer purchased from other brewers in the purchasing brewer's 
barrels and kegs and such beer sold to other brewers.
    (b) Daily summary records. A brewer shall maintain daily summaries 
of the following transactions:
    (1) Beer and cereal beverage bottled;
    (2) Beer and cereal beverage racked;
    (3) Beer removed for consumption or sale;

[[Page 724]]

    (4) Beer returned to the brewery from which removed;
    (5) Beer returned to the brewery after removal from another brewery 
owned by the brewer; and
    (6) Brewing materials, beer and cereal beverage in process, and 
finished beer and cereal beverage on hand.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended 
(26 U.S.C. 5415, 5555))

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986]



Sec.  25.293  Record of ballings and alcohol content.

    The brewer shall maintain a record of the ballings of the wort 
produced, and of the ballings and the alcohol content of beer and cereal 
beverage transferred for bottling and racking, between breweries in bulk 
conveyances, and to pilot brewing plants. Records showing ballings and 
alcohol content need not be consolidated and averaged daily unless the 
brewer so desires.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))



Sec.  25.294  Inventories.

    (a) The brewer shall take a physical inventory of beer and cereal 
beverage at least once each calender month. The brewer may take this 
inventory within 7 days of the close of the calendar month for which 
made.
    (b) The brewer shall make a record of inventories of beer or cereal 
beverage which will show the following:
    (1) Date taken;
    (2) Quantity of beer and cereal beverage on hand;
    (3) Losses, gains, and shortages; and
    (4) Signature, under penalties of perjury of the brewer or person 
taking this inventory.
    (c) The brewer shall retain inventory records and make them 
available for inspection by an appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))



Sec.  25.295  Record of unsalable beer.

    A brewer having unsalable beer in packages or tanks in the brewery 
may destroy, recondition, or use the beer as material. The brewer shall 
report the quantity of the beer destroyed, reconditioned, or used as 
materials, in daily records and on Form 5130.9. If the unsalable beer 
consists of rejects from the packaging operations, the beer may be 
destroyed without being included in the packaging production records, 
and, when so destroyed, will be so reported in the brewer's daily 
records and on Form 5130.9. When reject bottled beer is to be consumed 
at the brewery or sold to brewery employees, or is cased or otherwise 
accumulated pending other disposition, the quantity will be included in 
the packaging production and be so reported in the brewer's daily 
records and on Form 5130.9.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1389 as amended, 1390, as amended, 
1395 as amended (26 U.S.C. 5411, 5415, 5555))



Sec.  25.296  Record of beer concentrate.

    (a) Daily records. A brewer who produces concentrate or 
reconstitutes beer shall maintain daily records which accurately reflect 
the balling, quantity, and alcohol content of--
    (1) Beer entered into the concentration process;
    (2) Concentrate produced;
    (3) Concentrate transferred to other breweries;
    (4) Concentrate exported;
    (5) Concentrate received;
    (6) Concentrate used in reconstituting beer; and
    (7) Beer reconstituted.
    (b) Summary report of operations. A brewer who produces concentrate 
or reconstitutes beer shall report by specific entries on Form 5130.9, 
the quantity of beer entered into the concentration process, and the 
quantity of beer reconstituted from concentrate. In addition, the brewer 
shall prepare on Form 5130.9, a summary accounting of all concentrate 
operations at the brewery for the reporting period. This summary 
accounting will show, in barrels of 31 gallons with fractions rounded to 
2 decimal places:
    (1) Concentrate on hand beginning of the reporting period;
    (2) Concentrate on hand end of the reporting period;
    (3) Concentrate produced;
    (4) Concentrate received; and

[[Page 725]]

    (5) Specific disposition of concentrate such as ``used in 
reconstitution,'' ``removed for export,'' ``removed to foreign-trade 
zone,'' or ``transferred to other breweries.''

(26 U.S.C. 5415)

[T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40358, July 28, 1993]



Sec.  25.297  Brewer's Report of Operations, Form 5130.9.

    (a) Monthly report of operations. Except as provided in paragraph 
(b) of this section, each brewer shall prepare and submit a monthly 
report of brewery operations on Form 5130.9.
    (b) Quarterly report of operations. (1) For calendar quarters 
commencing on or after October 1, 1993, a brewer who produces less than 
10,000 barrels of beer per calendar year may file the report of brewery 
operations quarterly. The report will be filed on Form 5130.9. For the 
purpose of establishing whether a quarterly report may be filed, the 
brewer will determine annual production of beer by adding up the 
quantities of beer produced, water/liquids added in cellars, and beer 
received from other breweries and from pilot brewing plants for all 
months of the previous calendar year.
    (2) To begin the quarterly filing of a Brewer's Report of 
Operations, a brewer will state such intent in the ``Remarks'' section 
when filing the last monthly Form 5130.9 before the calendar quarter 
during which the brewer will commence quarterly filings. A brewer 
beginning business may file Form 5130.9 quarterly if the brewer states 
in the ``Remarks'' section of its initial monthly Form 5130.9 that the 
annual production of beer is not likely to exceed 10,000 barrels.
    (3) If a brewer determines that the 10,000 barrel quantity for a 
calendar year will be exceeded in any month, the brewer shall file a 
Form 5130.9 for that month and for all subsequent months of the calendar 
year.
    (4) The appropriate TTB officer may at any time require a brewer who 
is filing a Brewer's Report of Operations quarterly to file such report 
monthly if there is a jeopardy to the revenue.
    (c) Retention. The brewer shall retain a copy of the Form 5130.9 as 
part of the brewery records.

(26 U.S.C. 5415, 5555)

[T.D. ATF-345, 58 FR 40358, July 28, 1993, as amended by T.D. ATF-437, 
66 FR 5480, Jan. 19, 2001]



Sec.  25.298  Excise tax return, Form 5000.24.

    All entries on the excise tax return, Form 5000.24, will be fully 
supported by accurate and complete records. The brewer shall file a copy 
of Form 5000.24 as a part of the records at the brewery.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1390, as amended, 
1395, as amended (26 U.S.C. 5061, 5415, 5555))



Sec.  25.299  Execution under penalties of perjury.

    When a return, form, or other document is required by this part or 
in the instruction on or with the return, form, or other document to be 
executed under the penalties of perjury, as defined in Sec.  25.11, it 
will be so executed and will be signed by the brewer or other duly 
authorized person.

(Act of August 16, 1954, 68A Stat. 749, as amended (26 U.S.C. 6065))



Sec.  25.300  Retention and preservation of records.

    (a) Place of maintenance. Records required by this part will be 
prepared and kept by the brewer at the brewery where the operation or 
transaction occurs and will be available for inspection by any 
appropriate TTB officer during business hours.
    (b) Reproduction of original records. Whenever any record, because 
of its condition, becomes unsuitable for its intended or continued use, 
the brewer shall reproduce the record by a process under Sec.  25.301. 
The reproduced record will be treated and considered for all purposes as 
though it were the original record, and all provisions of law applicable 
to the original are applicable to the reproduction.
    (c) Retention of records. Records required by this part will be 
preserved for a period of not less than three years from the date 
thereof or the date of the last entry required to be made thereon, 
whichever is later. The appropriate

[[Page 726]]

TTB officer may require records to be kept for an additional period not 
exceeding three years in any case where such retention is deemed 
necessary or advisable for the protection of the revenue.
    (d) Data Processing. (1) Notwithstanding any other provision of this 
section, record data maintained on data processing equipment may be kept 
at a location other than the brewery if the original transaction 
(source) records required by Sec. Sec.  25.292-25.298 are kept available 
for inspection at the brewery.
    (2) Data which has been accumulated on cards, tapes, discs, or other 
accepted record media will be retrievable within five business days.
    (3) The applicable data processing program will be made available 
for examination if requested by an appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415))



Sec.  25.301  Photographic copies of records.

    (a) General. Brewers may record, copy, or reproduce records required 
by this part. Brewers may use any process which accurately reproduces 
the original record and which forms a durable medium for reproducing and 
preserving the original record.
    (b) Copies of records treated as original records. Whenever records 
are reproduced under this section, the reproduced records will be 
preserved in conveniently accessible files, and provisions will be made 
for examining, viewing and using the reproduced record the same as if it 
were the original record, and it will be treated and considered for all 
purposes as through it were the original record. All provisions of law 
and regulations applicable to the original are applicable to the 
reproduced record. As used in this section, ``original record'' means 
the record required by this part to be maintained or preserved by the 
brewer, even though it may be an executed duplicate or other copy of the 
document.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended 
(26 U.S.C. 5415, 5555))



PART 26_LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
26.1 Alcoholic products coming into the United States from Puerto Rico 
          and the Virgin Islands.
26.2 Forms prescribed.
26.3 Delegations of the Administrator.

                          Subpart B_Definitions

26.11 Meaning of terms.

Subpart C [Reserved]

  Subpart Ca_Rum Imported Into the United States From Areas Other Than 
                   Puerto Rico and the Virgin Islands

26.30 Excise taxes.
26.31 Formula.

   Subpart Cb_Products Coming into the United States From Puerto Rico

26.35 Taxable status.
26.36 Products exempt from tax.
26.36a-26.36b [Reserved]
26.36c Shipments of bulk distilled spirits to the United States without 
          payment of tax.
26.37 Alcohol and Tobacco Tax and Trade Bureau Officers.
26.38 Containers of distilled spirits.
26.39 Labels.
26.40 Marking containers of distilled spirits.
26.41 Destruction of marks and brands.
26.43 Samples.

                      Special (Occupational) Taxes

26.44 Liquor dealer's special taxes.
26.45 Warehouse receipts covering distilled spirits.
26.46 Distilled spirits plant proprietor's special (occupational) tax.
26.47 Specially denatured spirits user's and dealer's special 
          (occupational) taxes.

            Subpart D_Formulas for Products From Puerto Rico

26.50 Formulas for liquors.
26.50a Verfication of eligible flavors.
26.51 Formulas for articles, eligible articles, and products 
          manufactured with denatured spirits.
26.52 Still wines containing carbon dioxide.
26.53 Changes of formulas.
26.54 Filing and disposition of formulas.
26.55 Previously approved formulas.

[[Page 727]]

       Subpart E_Taxpayment of Liquors and Articles in Puerto Rico

                                  Bonds

26.61 General.
26.62 Corporate surety.
26.62a Filing of powers of attorney.
26.62b Execution of powers of attorney.
26.63 Deposit of securities in lieu of corporate surety.
26.64 Consents of surety.
26.65 Authority to approve bonds and consents of surety.
26.66 Bond, TTB Form 5110.50--Distilled spirits.
26.67 Bond, Form 2897--Wine.
26.68 Bond, Form 2898--Beer.
26.68a Bond account.
26.69 Strengthening bonds.
26.70 New or superseding bonds.
26.70a Notice of approval of bonds.

                          Termination of Bonds

26.71 Termination of bonds.
26.72 Application of surety for relief from bond.
26.73 Relief of surety from bond.
26.74 Release of pledged securities.
26.75 Form 1490, Notice of Termination of Bond.

                            Permits Required

26.76 Insular permits.

                            Distilled Spirits

26.77 Subject to tax.
26.78 Application and permit, TTB Form 5110.51.
26.79 Inspection or gauge and computation of tax.
26.79a Computation of effective tax rate.
26.80 Deferred payment of tax--release of spirits.
26.81 Prepayment of tax and release of spirits.
26.82 Permit to ship.

                      Packages of Distilled Spirits

26.86 Authority for shipment.
26.87 Evidence of taxpayment.

                                  Wine

26.92 Subject to tax.
26.93 Application and permit, Form 2900.
26.94 Computation of tax.
26.95 Deferred payment of tax--release of wine.
26.96 Prepayment of tax--release of wine.
26.96a [Reserved]
26.96b Permit to ship.
26.97 Marking containers of wine.

                                  Beer

26.101 Subject to tax.
26.102 Application and permit, Form 2900.
26.103 Computation of tax.
26.104 Deferred payment of tax--release of beer.
26.105 Prepayment of tax--release of beer.
26.105a Permit to ship.
26.106 Marking containers of beer.

                                Articles

26.107 Taxable status.
26.108 Application for permit, TTB Form 5110.51 and/or Form 2900.
26.109 Taxpayment.
26.110 Release of articles or liquors.

                        Payment of Tax by Return

26.111 General.
26.112 Returns for deferred payment of tax.
26.112a Payment of tax by electronic fund transfer.
26.113 Returns for prepayment of taxes.

                   Permit To Ship Liquors and Articles

26.114 Permit to ship required.
26.115 Application, Form 487B.
26.116 Issuance of permit, Form 487B, and customs inspection.

                      Procedure at Port of Arrival

26.117 Action by carrier.
26.118 Inspection by district director of customs at port of arrival.
26.119 Disposition of forms by district director of customs.

   Subpart F_Liquors and Articles Purchased by Tourists in Puerto Rico

26.125 Taxable.
26.126 Taxpayment in Puerto Rico.
26.128 Taxpayment at port of arrival.

        Subpart G_Closures for Distilled Spirits From Puerto Rico

26.135 Containers of distilled spirits to bear closures.
26.136 Affixing closures.

        Subpart H_Records and Reports of Liquors From Puerto Rico

26.163 General requirements.
26.164 Proprietors of taxpaid premises.
26.164a Package gauge record.
26.165 Certificate of effective tax rate computation.

   Subpart I_Claims for Drawback on Eligible Articles From Puerto Rico

26.170 Drawback of tax.
26.171 Special tax.
26.172 Bonds.
26.173 Claims for drawback.

[[Page 728]]

26.174 Records.

    Subpart Ia_Shipment of Denatured Spirits and Products Made With 
         Denatured Spirits to the United States From Puerto Rico

26.191 Notice of shipment.
26.192 Samples and analysis.
26.193 Notification of tax liability.
26.194 Detention of articles.

Subpart Ib_Shipment of Bulk Distilled Spirits From Puerto Rico, Without 
 Payment of Tax, for Transfer From Customs Custody to Internal Revenue 
                                  Bond

26.196 General.
26.197 Furnishing formula to consignee.
26.198 [Reserved]
26.199 Application and permit to ship, TTB Form 5110.31.
26.199a Action by revenue agent.
26.199b Issuance and disposition of permit.
26.199c Action by carrier.
26.199d Customs inspection and release.
26.199e [Reserved]
26.199f Consignee premises.

Subpart J_Products Coming Into the United States From the Virgin Islands

26.200 Taxable status.
26.201 Products exempt from tax.
26.201a Production in the Virgin Islands for tax-free shipment to the 
          United States.
26.201b [Reserved]
26.201c Shipments of bulk distilled spirits to the United States without 
          payment of tax.
26.202 Requirements of the Federal Alcohol Administration Act.
26.203 Containers of 1 gallon (3.785 liters) or less.
26.203a Containers in excess of 1 gallon (3.785 liters).
26.204 Regauge.
26.204a Verification of eligible wines and eligible flavors.
26.205 Certificate.
26.206 Marking packages and cases.
26.207 Destruction of marks and brands.
26.209 Samples.

                      Special (Occupational) Taxes

26.210 Liquor dealer's special taxes.
26.211 Warehouse receipts covering distilled spirits.

         Subpart K_Formulas for Products From the Virgin Islands

26.220 Formulas for liquors.
26.221 Formulas for articles, eligible articles, and products 
          manufactured with denatured spirits.
26.222 Still wines containing carbon dioxide.
26.223 Changes of formulas.
26.224 Filing and disposition of formulas.
26.225 Previously approved formulas.

    Subpart L_Closures for Distilled Spirits From the Virgin Islands

                                 General

26.230 Containers of distilled spirits to bear closures.
26.231 Affixing closures.

      Subpart M_Procedure at Port of Entry From the Virgin Islands

26.260 Certificate.
26.261 Action by district director of customs.
26.262 Determination of tax on distilled spirits.
26.262a Computation of effective tax rate.
26.263 Determination of tax on beer.
26.264 Determination of tax on wine.
26.265 Determination of tax on articles.
26.266 Tax payment.
26.267 Payment of tax by electronic fund transfer.

    Subpart N_Records and Reports of Liquors From the Virgin Islands

       Record and Report of Liquors Brought Into the United States

26.272 General requirements.
26.273 Proprietors of taxpaid premises.
26.273a Transfer record.
26.273b Package gauge record.

               Filing and Retention of Records and Reports

26.275 Filing.
26.276 Retention.
26.277 [Reserved]

   Subpart O_Tax-Free Shipments to the United States From the Virgin 
                                 Islands

26.291 General.

     Shipment of Industrial Spirits and Specially Denatured Spirits

26.292 Copy of consignee's permit under part 20 or 22.
26.293 Marks on containers.
26.294 Record of shipment.

    Shipment of Completely Denatured Alcohol and Products Made With 
                            Denatured Spirits

26.295 Marks on containers.
26.296 Record of shipment.

[[Page 729]]

                      Arrival in the United States

26.297 General.

 Subpart Oa_Shipment of Bulk Distilled Spirits From the Virgin Islands, 
 Without Payment of Tax, for Transfer From Customs Custody to Internal 
                              Revenue Bond

26.300 General.
26.301 Preparation of transfer record.
26.302 Gauge and certification.
26.303 Customs inspection and release.
26.304 Bulk conveyances to be sealed.
26.305 Receipt by consignee.

  Subpart Ob_Claims for Drawback on Eligible Articles From the Virgin 
                                 Islands

26.306 Drawback of tax.
26.307 Special tax.
26.308 Bonds.
26.309 Claims for drawback.
26.310 Records.

                Subpart P_Requirements for Liquor Bottles

26.311 Scope of subpart.
26.312 Standards of fill.
26.314 Distinctive liquor bottles.
26.315 [Reserved]
26.316 Bottles not constituting approved containers.
26.317 Bottles to be used for display purposes.
26.318 Liquor bottles denied entry.
26.319 Used liquor bottles.

                   Subpart Q_Miscellaneous Provisions

26.331 Alternate methods or procedures.

    Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 
5051, 5061, 5081, 5111, 5112, 5114, 5121, 5122, 5124, 5131-5134, 5141, 
5146, 5148, 5207, 5232, 5271, 5276, 5301, 5314, 5555, 6001, 6301, 6302, 
6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 
9303, 9304, 9306.

    Source: 20 FR 6077, Aug. 20, 1955, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by 
T.D. ATF-459, 66 FR 38550, July 25, 2001.

    Editorial Note: Nomenclature changes to part 26 appear at 66 FR 
21668, 21669, May 1, 2001.



                     Subpart A_Scope of Regulations



Sec.  26.1  Alcoholic products coming into the United States from Puerto Rico and the Virgin Islands.

    This part, ``Liquors and Articles from Puerto Rico and the Virgin 
Islands,'' relates to:
    (a) The production, bonded warehousing, and withdrawal of distilled 
spirits and denatured spirits, and the manufacture of articles in Puerto 
Rico and the Virgin Islands to be brought into the United States free of 
tax;
    (b) The collection of internal revenue taxes on taxable alcoholic 
products coming into the United States from Puerto Rico and the Virgin 
Islands;
    (c) The transfer, without payment of tax, of Puerto Rican and Virgin 
Islands spirits in bulk containers or by pipeline from customs custody 
to the bonded premises of a distilled spirits plant qualified under part 
19 of this chapter;
    (d) The deposit of the distilled spirits excise taxes, limited to 
the lesser of $10.50 or the rate in section 5001(a)(1) per proof gallon, 
into the Treasuries of Puerto Rico and the Virgin Islands on all 
articles containing distilled spirits as defined in section 7652, 
produced by those two U.S. possessions, and transported into the United 
States (less certain amounts); and
    (e) The deposit of the distilled spirits excise taxes, limited to 
the lesser of $10.50 or the rate in section 5001(a)(1) per proof gallon, 
into the Treasuries of Puerto Rico and the Virgin Islands on all rum 
imported into the United States (including rum from possessions other 
than Puerto Rico and the Virgin Islands), less certain amounts.

(Approved by the Office of Management and Budget under control number 
1512-0277)

(Sec. 221, Pub. L. 98-67, 97 Stat. 369 (26 U.S.C. 7652)

[T.D. ATF-175, 49 FR 20803, May 16, 1984, as amended by T.D. ATF-203, 50 
FR 15887, Apr. 23, 1985]



Sec.  26.2  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part, including applications, reports, returns, and 
records. All of the information called for in each form shall be 
furnished as indicated by the headings on the form and the instructions 
on or pertaining to the form. In addition, information called for in 
each form shall be furnished as required by this part. The form will be 
filed in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB

[[Page 730]]

Web site (http://www.ttb.gov) or by mailing a request to the Alcohol and 
Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, 
Room 1516, Cincinnati, OH 45202.

(5 U.S.C. 552(a) (80 Stat. 383, as amended))

[T.D. ATF-92, 46 FR 46920, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 41 FR 20725, May 8, 1996; T.D. 
ATF-451, 66 FR 21668, May 1, 2001; T.D. TTB-44, 71 FR 16943, Apr. 4, 
2006]



Sec.  26.3  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.26, Delegation of the Administrator's 
Authorities in 27 CFR Part 26, Liquors and Articles From Puerto Rico and 
the Virgin Islands. You may obtain a copy of this order by accessing the 
TTB Web site (http://www.ttb.gov) or by mailing a request to the Alcohol 
and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main 
Street, Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16944, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  26.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Words in the plural form shall include the singular and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.26, Delegation of the Administrator's Authorities in 27 CFR Part 
26, Liquors and Articles from Puerto Rico and the Virgin Islands.
    Article. Any preparation unfit for beverage use, made with or 
containing:
    (1) Wine or beer;
    (2) Distilled spirits or industrial spirits; or
    (3) Denatured spirits when such preparation is not manufactured 
under the provisions of this chapter.
    Bank. Any commercial bank.
    Banking day. Any day during which a bank is open to the public for 
carrying on substantially all its banking functions.
    Beer. Beer, ale, porter, stout, and other similar fermented 
beverages (including sake or similar products) of any name or 
description containing one-half of 1 percent or more of alcohol by 
volume, brewed, or produced from malt, wholly or in part, or from any 
substitute therefor.
    Bottler. Any person required to hold a basic permit as a bottler 
under 27 U.S.C. 203(b)(1).
    Bulk container. Any container having a capacity of more than 1 
gallon.
    Bulk distilled spirits. The term ``bulk distilled spirits'' means 
distilled spirits in a container having a capacity in excess of 1 
gallon.
    Bureau of Alcoholic Beverage Taxes. Bureau of Alcoholic Beverage 
Taxes of the Commonwealth of Puerto Rico.
    Business day. Any day, other than a Saturday, Sunday, or a legal 
holiday. (The term legal holiday includes all holidays in the District 
of Columbia and all legal holidays in the Commonwealth of Puerto Rico.)
    Calendar quarter and quarterly. These terms refer to the three-month 
period ending on March 31, June 30, September 30, or December 31.
    Commercial bank. A bank, whether or not a member of the Federal 
Reserve System, which has access to the Federal Reserve Communications 
System (FRCS) or Fedwire. The ``FRCS'' or ``Fedwire'' is a 
communications network that allows Federal Reserve System member banks 
to effect a transfer of funds for their customers (or other commercial 
banks) to the Treasury Account at the Federal Reserve Bank of New York.

[[Page 731]]

    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform any duties of an officer of the Customs Service.
    Denatured spirits. Industrial spirits denatured in accordance with 
approved formulas in distilled spirits plants established and operated 
under the provisions of this chapter relating to the establishment and 
operation of plants qualified to denature spirits in the United States 
or, in respect of a product of the Virgin Islands, shall also mean 
spirits denatured in accordance with approved formulas in plants 
established under the provisions of the Virgin Islands regulations and 
shall include, unless otherwise limited, both completely and specially 
denatured spirits.
    Director of the service center. A director of an internal revenue 
service center.
    Distilled spirits or spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine, in any form (including all dilutions and 
mixtures thereof, from whatever source or by whatever process produced), 
but shall not include industrial spirits as defined in this part except 
when used in reference to such spirits which would be subject to tax if 
brought into the United States.
    District director. A district director of internal revenue.
    District director of customs. The district director of customs at a 
headquarters port of the district (except the district of New York, 
N.Y.); the area directors of customs in the district of New York, N.Y.; 
and the port director at a port not designated as a headquarters port.
    Effective tax rate. The net tax rate after reduction for any credit 
allowable under 26 U.S.C. 5010 for wine and flavor content at which the 
tax imposed on distilled spirits by 26 U.S.C. 7652 is paid or 
determined.
    Electronic fund transfer or EFT. Any transfer of funds effected by a 
proprietor's commercial bank, either directly or through a correspondent 
banking relationship, via the Federal Reserve Communications System 
(FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of 
New York.
    Eligible article. Any medicine, medicinal preparation, food product, 
flavor, flavoring extract or perfume which contains distilled spirits, 
is unfit for beverage purposes, and has been or will be brought into the 
United States from Puerto Rico or the Virgin Islands under the 
provisions of 26 U.S.C. 7652(g).
    Eligible flavor. A flavor which:
    (1) Is of a type that is eligible for drawback of tax under 26 
U.S.C. 5134,
    (2) Was not manufactured on the premises of a distilled spirits 
plant, and
    (3) Was not subjected to distillation on distilled spirits plant 
premises such that the flavor does not remain in the finished product.
    Eligible wine. Wine on which tax would be imposed by paragraph (1), 
(2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled 
spirits plant premises and which has not been subject to distillation at 
a distilled spirits plant after receipt in bond.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return, claim, form, or other document, or where no form 
of declaration is prescribed, with the declaration: ``I declare under 
the penalties of perjury that this -------- (insert type of document, 
such as statement, report, certificate, application, claim, or other 
document), including the documents submitted in support thereof, has 
been examined by me and, to the best of my knowledge and belief, is 
true, correct, and complete.''
    Fiscal year. The period which begins October 1 and ends on the 
following September 30.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    Importer. Any person who imports distilled spirits, wines, or beer 
into the United States.
    Industrial spirits. As to products of Puerto Rico, distilled spirits 
produced and warehoused at and withdrawn from distilled spirits plants 
established and operated under the provisions of this

[[Page 732]]

chapter relating to the establishment of such plants and the production, 
bonded warehousing, and withdrawal from bond of distilled spirits in the 
United States, or as to products of the Virgin Islands, distilled 
spirits produced, warehoused, and withdrawn under Virgin Islands 
regulations.
    Kind. As applied to spirits, kind shall mean class and type as 
prescribed in 27 CFR part 5. As applied to wines, kind shall mean the 
classes and types of wines as prescribed in 27 CFR part 4.
    Liquor bottle. A bottle made of glass or earthenware, or of other 
suitable material approved by the Food and Drug Administration, which 
has been designed or is intended for use as a container for distilled 
spirits for sale for beverage purposes and which has been determined by 
the appropriate TTB officer to adequately protect the revenue.
    Liquors. Industrial spirits, distilled spirits, liqueurs, cordials 
and similar compounds, wines, and beer or any alcoholic preparation fit 
for beverage use.
    Permit. A formal written authorization of the Secretary of the 
Treasury of Puerto Rico.
    Person. An individual, a trust, an estate, a partnership, an 
association, a company, or a corporation.
    Proof gallon. A gallon of liquid at 60 degrees Fahrenheit which 
contains 50 percent by volume of ethyl alcohol having a specific gravity 
of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees 
Fahrenheit as unity or the alcoholic equivalent thereof.
    Rectifier. Any person required to hold a rectifier's basic permit 
under 27 U.S.C. 203(b)(1).
    Revenue Agent. Any duly authorized Commonwealth Internal Revenue 
Agent of the Department of the Treasury of Puerto Rico.
    Secretary. The Secretary of the Treasury of Puerto Rico.
    Secretary or his delegate. The Secretary or any officer or employee 
of the Department of the Treasury of Puerto Rico duly authorized by the 
Secretary to perform the function mentioned or described in this part.
    Taxpaid. As used in this part with respect to liquors or articles of 
Puerto Rican manufacture, includes liquors or articles on which the tax 
was computed but with respect to which payment was deferred under the 
provisions of subpart E of this part.
    Treasury Account. The Department of the Treasury's General Account 
at the Federal Reserve Bank of New York.
    United States. The States and the District of Columbia.
    U.S.C. The United States Code.
    Virgin Islands regulations. Regulations issued or adopted by the 
Governor of the Virgin Islands, or his duly authorized agents, with the 
concurrence of the Secretary of the Treasury of the United States, or 
his delegate, under the provisions of 26 U.S.C. 5314, as amended, and 
Sec.  26.201a.
    Wine. Still wine, vermouth, or other aperitif wine, imitation, 
substandard, or artificial wine, compounds designated as wine, flavored, 
rectified, or sweetened wine, champagne or sparkling wine, and 
artificially carbonated wine, containing not over 24 percent of alcohol 
by volume. Wines containing more than 24 percent of alcohol by volume 
are classed and taxed as distilled spirits.

(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended 
(27 U.S.C. 205) Aug. 16, 1954, ch. 736, 68A Stat. 775 (26 U.S.C. 6301); 
June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))

[T.D. ATF-48, 43 FR 13551, Mar. 31, 1978, as amended by T.D. TTB-44, 71 
FR 16944, Apr. 4, 2006]

    Editorial Note: For Federal Register citations affecting Sec.  
26.11, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

Subpart C [Reserved]



  Subpart Ca_Rum Imported Into the United States From Areas Other Than 
                   Puerto Rico and the Virgin Islands



Sec.  26.30  Excise taxes.

    Distilled spirits excise taxes, less the estimated amounts necessary 
for payment of refunds and drawbacks, collected on all rum imported into 
the United States (including rum from possessions other than Puerto Rico 
and the Virgin Islands), will be deposited

[[Page 733]]

into the Treasuries of Puerto Rico and the Virgin Islands according to 
the formula described in Sec.  26.31. The amount deposited into the 
Treasuries of Puerto Rico and the Virgin Islands shall be the lesser of 
$10.50, or the rate imposed by 26 U.S.C. 5001(a)(1) (including 
adjustments to the effective tax rate under 26 U.S.C. 5010), on each 
proof gallon of rum imported into the United States.

(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))

[T.D. ATF-203, 50 FR 15888, Apr. 23, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, July 25, 2001]



Sec.  26.31  Formula.

    (a) The amount of excise taxes collected on rum that is imported 
into the United States from areas other than Puerto Rico and the Virgin 
Islands shall be deposited into the Treasuries of Puerto Rico and the 
Virgin Islands at the rate prescribed in 26 U.S.C. 7652(f). The 
distribution of such amount between Puerto Rico and the Virgin Islands 
shall be computed by using a permanent base percentage, which represents 
the excise taxes collected on rum brought into the United States from 
Puerto Rico and the Virgin Islands during fiscal year 1983. This base 
percentage is 87.626889 percent for Puerto Rico and 12.373111 percent 
for the Virgin Islands. The formula shall be as follows:
    (1) Multiply the total excise taxes collected on rum brought into 
the United States (including rum from Puerto Rico and the Virgin 
Islands) during the previous fiscal year (October 1-September 30) by the 
base percentages to determine the relative shares of the entire U.S. rum 
market that will be allotted to Puerto Rico and the Virgin Islands;
    (2) Subtract each of these shares from the excise taxes collected on 
rum transported to the United States from Puerto Rico and the Virgin 
Islands, respectively, during the previous fiscal year to determine each 
possession's loss or gain in relation to the previous fiscal year's U.S. 
rum market. Divide these results by the excise taxes collected on rum 
imported during the previous fiscal year from areas other than Puerto 
Rico and the Virgin Islands.
    (b) Notwithstanding the formula prescribed in paragraph (a) above, 
the Virgin Islands' share of the excise taxes on rum imported into the 
United States from areas other than Puerto Rico and the Virgin Islands 
shall not exceed 49 percent nor drop below 12.373111 percent. Puerto 
Rico's share of the excise taxes on rum imported into the United States 
from areas other than Puerto Rico and the Virgin Islands shall not 
exceed 87.626889 percent nor drop below 51 percent.
    (c) The percentage for the distribution of the excise taxes 
collected on rum imported into the United States from areas other than 
Puerto Rico and the Virgin Islands, that will be paid over to the 
Treasuries of Puerto Rico and the Virgin Islands, shall be effective on 
March 1 of each year, and shall remain in effect until March 1 of the 
following year.
    (d) The method for transferring the excise tax collections on rum 
imported from areas other than Puerto Rico and the Virgin Islands, into 
the Treasuries of Puerto Rico and the Virgin Islands shall be the same 
as the method used for transferring excise taxes into the Treasury of 
Puerto Rico on distilled spirits (with an alcohol content of at least 92 
percent rum) brought into the United States from Puerto Rico.
    (e) The formula prescribed in this section shall take effect on 
March 1, 1987. Prior to that date, Puerto Rico shall continue to receive 
86.4 percent of the eligible excise taxes on rum imported from areas 
other than Puerto Rico and the Virgin Islands. The Virgin Islands shall 
continue to receive 13.6 percent of these eligible excise taxes until 
March 1, 1987.

(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))

[T.D. ATF-233, 51 FR 28078, Aug. 5, 1986; 52 FR 2222, Jan. 21, 1987]



   Subpart Cb_Products Coming Into the United States From Puerto Rico



Sec.  26.35  Taxable status.

    (a) Liquors coming into the United States from Puerto Rico, except 
as provided in Sec.  26.36, are subject to a tax

[[Page 734]]

equal to the internal revenue tax imposed on the production in the 
United States of like liquors. Articles coming into the United States 
from Puerto Rico, except as provided in Sec.  26.36, are subject to tax 
on the liquors contained therein at the rates imposed in the United 
States on like liquors of domestic production.
    (b) The excise taxes collected on distilled spirits or articles 
containing distilled spirits shall be deposited into the Treasury of 
Puerto Rico only if at least 92 percent of the alcoholic content of such 
products is rum. The amount deposited into the Treasury of Puerto Rico 
shall not exceed the lesser of $10.50, or the rate imposed by 26 U.S.C. 
5001(a)(1) (including adjustments to the effective tax rate under 26 
U.S.C. 5010), on each proof gallon of such distilled spirits or 
articles, other than eligible articles, containing distilled spirits 
coming into the United States or consumed on the island. Such excise tax 
deposits will be reduced by the estimated amount necessary for payment 
of refunds and drawbacks.
    (c) Except for products described in 26 U.S.C. 7652(c), no excise 
taxes shall be deposited into the Treasury of Puerto Rico if an excise 
tax subsidy is provided by Puerto Rico that is of a kind different from, 
or in an amount per value or volume of production greater than, any 
subsidy offered by Puerto Rico to industries manufacturing products not 
subject to Federal excise tax.

(Sec. 2682, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 7652))

[T.D. ATF-175, 49 FR 20804, May 16, 1984, as amended by T.D. ATF-203, 50 
FR 15888, Apr. 23, 1985; T.D. ATF-263, 52 FR 46593, Dec. 9, 1987. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, July 25, 2001]



Sec.  26.36  Products exempt from tax.

    (a) General. Industrial spirits, denatured spirits, and products 
made with denatured spirits in Puerto Rico may be brought into the 
United States without incurring tax liability imposed by 26 U.S.C. 5001 
or 7652.
    (b) Industrial spirits. A distiller of industrial spirits who 
registers, files a bond, and pays special (occupational) tax as a 
distilled spirits plant in accordance with part 19 of this chapter may 
ship industrial spirits to a tax-free alcohol user in the United States 
who holds a permit and has paid special (occupational) tax under part 22 
of this chapter. These shipments shall be made in accordance with the 
requirements of parts 19 and 22 of this chapter.
    (c) Denatured spirits. A distiller who registers, files a bond, and 
pays special (occupational) tax as a distilled spirits plant in 
accordance with part 19 of this chapter and who denatures spirits in 
accordance with parts 19 and 21 of this chapter may ship (1) completely 
denatured alcohol to anyone in the United States, and/or (2) specially 
denatured spirits to a dealer or user of specially denatured spirits in 
the United States or Puerto Rico who holds a permit and has paid special 
(occupational) tax under part 20 of this chapter. These shipments shall 
be made in accordance with the requirements of parts 19 and 20 of this 
chapter, and subpart Ia of this part.
    (d) Products made with denatured spirits. (1) A person in Puerto 
Rico who manufactures products with completely denatured alcohol in 
accordance with the requirements of part 20 of this chapter may ship 
those products to the United States in accordance with the requirements 
of part 20 of this chapter, and subpart Ia of this part.
    (2) A person in Puerto Rico who manufactures products with specially 
denatured spirits may ship those products to the United States if that 
person (i) obtains a permit to use specially denatured spirits, and pays 
special (occupational) tax, under part 20 of this chapter, and (ii) 
complies with the requirements of part 20 of this chapter and subpart Ia 
of this part relating to the manufacture and shipment of those products.

[T.D. ATF-199, 50 FR 9198, Mar. 6, 1985; T.D. ATF-199, 50 FR 20099, May, 
14, 1985, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988]



Sec. Sec.  26.36a-26.36b  [Reserved]



Sec.  26.36c  Shipments of bulk distilled spirits to the United States without payment of tax.

    Bulk distilled spirits may be brought into the United States from 
Puerto Rico without payment of tax for transfer from customs custody to 
the bonded

[[Page 735]]

premises of a distilled spirits plant qualified under part 19 of this 
chapter. Such shipments are subject to the provisions of subpart Ib.

[T.D. ATF-62, 44 FR 71709, Dec. 11, 1979]



Sec.  26.37  Alcohol and Tobacco Tax and Trade Bureau Officers.

    Appropriate TTB officers are authorized to collect internal revenue 
taxes on liquors and articles subject to tax, which are to be shipped to 
the United States.

[T.D. TTB-44, 71 FR 16944, Apr. 4, 2006]



Sec.  26.38  Containers of distilled spirits.

    Containers of distilled spirits brought into the United States from 
Puerto Rico, having a capacity of not more than 1 gallon (3.785 liters), 
shall conform to the requirements of subpart P of this part.

[T.D. ATF-34, 41 FR 46863, Oct. 26, 1976]



Sec.  26.39  Labels.

    All labels affixed to bottles of liquors coming into the United 
States shall conform to the requirements of the Federal Alcohol 
Administration Act and implementing regulations (parts 4, 5, and 7 of 
this chapter).

[T.D. ATF-48, 44 FR 55851, Sept. 28, 1979]



Sec.  26.40  Marking containers of distilled spirits.

    The distiller, rectifier, or bottler shall serially number each 
case, barrel, cask, or similar container of distilled spirits filled for 
shipment to the United States. In addition to the serial number of the 
container, the distiller, rectifier, or bottler shall plainly print, 
stamp, or stencil with durable coloring material, in letters and figures 
not less than one-half inch high, on the head of each barrel, cask or 
similar container or on one side of each case, as follows:
    (a) The name of the distiller, rectifier, or bottler.
    (b) The brand name and kind of liquor;
    (c) The wine and proof gallon contents; or, for bottles filled 
according to the metric standards of fill prescribed by Sec.  5.47a, of 
this chapter, the contents in liters and the proof of the spirits; and
    (d) In the case of barrels or casks, the serial number of the permit 
to ship, Form 487-B, prefixed by the number of such form (e.g., ``487-B-
61-1'')
    (e) In the case of bulk containers shipped to the United States 
under subpart Ib, the serial number of the application and permit to 
ship, TTB Form 5110.31, instead of the serial number of Form 487-B.

[T.D. ATF-43, 42 FR 30836, June 17, 1977; as amended by T.D. ATF-62, 44 
FR 71709, Dec. 11, 1979]



Sec.  26.41  Destruction of marks and brands.

    The marks, brands, and serial numbers required by this part to be 
placed on barrels, casks, or similar containers, or cases, shall not be 
removed or obscured or obliterated before the contents thereof have been 
removed.

(Sec. 201, Pub. L. 85-859, 1358, as amended, 26 U.S.C. 5205)

[T.D. ATF-198, 50 FR 8548, Mar. 1, 1985]



Sec.  26.43  Samples.

    The appropriate TTB officer may require samples of liquors and 
articles to be submitted whenever desired for laboratory analysis in 
order to determine the rates of tax applicable thereto.

[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2250, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

                      Special (Occupational) Taxes



Sec.  26.44  Liquor dealer's special taxes.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, every person bringing liquors into the United States from 
Puerto Rico, who sells, or offers for sale, such liquors shall file Form 
5630.5 with TTB in accordance with the instructions of the form, and pay 
special (occupational) tax as a wholesale dealer in liquor or as a 
retail dealer in liquor in accordance with the law and regulations 
governing the payment of such special taxes (part 31 of this chapter).
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, every person described in

[[Page 736]]

paragraph (a) of this section must register by filing the special tax 
return on Form 5630.5, in accordance with part 31 of this chapter, 
during the suspension period even though the amount of tax due is zero.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340 as amended, 1343 as amended, 
1344 as amended (26 U.S.C. 5111, 5112, 5121, 5122))

[T.D. ATF-70, 45 FR 33980, May 21, 1980, as amended by T.D. ATF-251, 52 
FR 19338, May 22, 1987; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. 
TTB-36, 70 FR 62246, Oct. 31, 2005]



Sec.  26.45  Warehouse receipts covering distilled spirits.

    The sale of warehouse receipts for distilled spirits is equivalent 
to the sale of distilled spirits. Accordingly, except during the 
suspension period described in Sec.  26.44(b), every person bringing 
distilled spirits into the United States from Puerto Rico, who sells, or 
offers for sale, warehouse receipts for distilled spirits stored in 
warehouses, or elsewhere, incurs liability to special tax as a dealer in 
liquors at the place where such warehouse receipts are sold, or offered 
for sale, and must file return and pay occupational tax as provided in 
Sec.  26.44(a). During the suspension period, every such person must 
register as provided in Sec.  26.44(b).

(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)

[T.D. TTB-36, 70 FR 62246, Oct. 31, 2005]



Sec.  26.46  Distilled spirits plant proprietor's special (occupational) tax.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, every proprietor of a distilled spirits plant producing 
industrial spirits, denatured spirits, or products made with denatured 
spirits, for shipment to the United States, shall file Form 5630.5 with 
TTB in accordance with instructions on the form and pay special 
(occupational) tax as a distilled spirits plant proprietor in accordance 
with part 19 of this chapter.
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, every person described in paragraph (a) of 
this section must register by filing the special tax return on Form 
5630.5, in accordance with part 19 of this chapter, during the 
suspension period even though the amount of tax due is zero.

(26. U.S.C. 5081, 5314)

[T.D. ATF-271, 53 FR 17559, May 17, 1988, as amended by T.D. TTB-36, 70 
FR 62246, Oct. 31, 2005]



Sec.  26.47  Specially denatured spirits user's and dealer's special (occupational) taxes.

    Every user of specially denatured spirits who manufactures products 
made with such spirits for shipment to the United States, and every 
dealer in specially denatured spirits who ships such spirits to the 
United States, who is required by Sec.  26.36 to obtain a permit under 
part 20 of this chapter, shall file Form 5630.5 with TTB in accordance 
with instructions on the form and pay special (occupational) tax as a 
user or dealer in specially denatured spirits under part 20 of this 
chapter.

(.S.C. 5271, 5276, 5314)

[T.D. ATF-271, 53 FR 17559, May 17, 1988. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, July 25, 2001]



            Subpart D_Formulas for Products From Puerto Rico

    Source: 44 FR 71709, Dec. 11, 1979, unless otherwise noted.



Sec.  26.50  Formulas for liquors.

    (a) Distilled spirits products. Except for products which are exempt 
from tax, as specified in Sec.  26.36, formulas are required by part 5 
of this chapter for distilled spirits products shipped to the United 
States from Puerto Rico. If a formula is submitted to cover only the 
production of spirits which are to be transferred to the bonded premises 
of a DSP under 26 U.S.C. 5232, the formula shall include a statement to 
that effect. If any product contains liquors made outside of Puerto 
Rico, the country of origin for each such liquor shall be stated on the 
formula. These formulas shall be submitted on TTB Form 5110.38, in 
accordance with Sec.  26.54.
    (b) Wine. Persons in Puerto Rico who ship wine to the United States 
shall comply with the formula requirements of 27 CFR part 240. If any 
wine contains

[[Page 737]]

liquors made outside of Puerto Rico, the country of origin for each such 
liquor shall be stated on the formula. All formulas required by this 
paragraph shall be submitted on TTB Form 698 Supplemental, in accordance 
with Sec.  26.54.

(Approved by the Office of Management and Budget under control number 
1512-0204)

[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38551, July 25, 2001]



Sec.  26.50a  Verification of eligible flavors.

    (a) Any person who, after December 1, 1990, ships to the United 
States any distilled spirits on which the tax has been or is to be paid 
or determined at an effective tax rate based in part on the alcohol 
content derived from any eligible flavor not previously approved on TTB 
Form 5530.5 (1678) or 5150.19 shall, before the first tax determination 
at that rate, request and receive a statement of eligibility for each 
flavor to be used in the computation of the effective tax rate.
    (b) To receive a statement of eligibility, the person shipping the 
distilled spirits shall submit to the TTB Alcohol and Tobacco 
Laboratory, 6000 Ammendale Road, Ammendale, MD 20705, the following:
    (1) An 8-ounce sample; and
    (2) A statement of composition using TTB Form 5154.1 or a letterhead 
request that lists the--
    (i) Name and percentage of alcohol by volume of the flavor; and
    (ii) Name and quantity of each ingredient used in the manufacture of 
the flavor.

(Approved by the Office of Management and Budget under control number 
1512-0203)

(Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 
U.S.C. 7652); Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 
U.S.C. 5001); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 
U.S.C. 5010))

[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990, as amended by T.D. ATF-451, 
66 FR 21669, May 1, 2001; T.D. TTB-44, 71 FR 16944, Apr. 4, 2006]



Sec.  26.51  Formulas for articles, eligible articles and products manufactured with denatured spirits.

    (a) Formulas for articles and eligible articles. Formulas for 
articles made with distilled spirits must show the quantity and proof of 
the distilled spirits used, and the percentage of alcohol by volume 
contained in the finished product. Formulas for articles made with beer 
or wine must show the kind and quantity thereof (liquid measure), and 
the percent of alcohol by volume of such beer or wine. Formulas and 
samples for eligible articles are required in accordance with subpart F 
of part 17 of this chapter.
    (b) Formulas for products manufactured with denatured spirits. 
Products manufactured with denatured spirits shall be manufactured in 
accordance with the formula requirements of part 20 of this chapter for 
similar products made in the United States.
    (1) Products may be made with completely denatured alcohol for sale 
under brand names under part 20 of this chapter without obtaining an 
approved formula. If ingredients are added in sufficient quantities to 
materially change the composition and character of the completely 
denatured alcohol, the product is not classified as completely denatured 
alcohol and may not be marked, branded, or sold as completely denatured 
alcohol.
    (2) Products made with specially denatured spirits shall be made in 
accordance with (i) a general-use formula approved as provided in part 
20 of this chapter, or (ii) an approved formula on Form 5150.19, or 
previously approved on TTB Form 1479-A or 27-B Supplemental.
    (c) Formulas required. Formulas required by this section shall be 
submitted on Form 5150.19, except that formulas for eligible articles 
shall be submitted on Form 5154.1 (formerly 1678). Formulas shall be 
submitted in accordance with Sec.  26.54. Any formula for an eligible 
article approved on Form 5150.19 prior to October 23, 1986 shall 
continue to be valid until revoked or voluntarily surrendered. Any 
person holding such a formula is not required to submit a new formula.

(Approved by the Office of Management and Budget under control number 
1512-0494)

[44 FR 71709, Dec. 11, 1979, as amended by T.D. ATF-199, 50 FR 9198, 
Mar. 6, 1985; T.D. ATF-263, 52 FR 46593, Dec. 9, 1987; T.D. ATF-379, 61 
FR 31427, June 20, 1996. Redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38551, July 25, 2001]

[[Page 738]]



Sec.  26.52  Still wines containing carbon dioxide.

    (a) General. Still wines may contain not more than 0.392 gram of 
carbon dioxide per 100 milliliters of wine; except that a tolerance to 
this maximum limitation, not to exceed 0.009 gram of carbon dioxide per 
100 milliliters of wine, will be allowed where the amount of carbon 
dioxide in excess of 0.392 gram per 100 milliliters of wine was due to 
mechanical variations which could not be completely controlled under 
good commercial practices. Such tolerance will not be allowed where it 
is found that the limitation of 0.392 gram of carbon dioxide per 100 
milliliters of wine is continuously or intentionally exceeded, or where 
the variation results from the use of methods or equipment not in accord 
with good commercial practices.
    (b) Notice required. Proprietors intending to add carbon dioxide to, 
or retain carbon dioxide in, still wines to be shipped to the United 
States shall submit a notice to the appropriate TTB officer. The notice 
shall show the name and address of the proprietor and shall identify the 
method or process, the kinds (class and type) of wine, and the type of 
equipment to be used. A corrected notice shall be filed if there is any 
change (except for minor changes) in the information contained in the 
notice.
    (c) Filing and disposition of notice. The notice required by 
paragraph (b) of this section shall be submitted in quadruplicate to the 
appropriate TTB officer, who shall retain one copy, forward one copy to 
the Secretary, and one copy to the revenue agent at the proprietor's 
premises, and return one copy to the proprietor. The proprietor shall 
keep the notice available for examination by revenue agents.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C 5041))

[20 FR 6077, Aug. 20, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-251, 
52 FR 19338, May 22, 1987]



Sec.  26.53  Changes of formulas.

    Any change in the ingredients composing a product covered by an 
approved formula will necessitate the submission of a new formula.



Sec.  26.54  Filing and disposition of formulas.

    Formulas required by this subpart must be submitted, and disposed 
of, in accordance with the instructions on the prescribed TTB form. The 
applicant shall maintain copies of approved formulas available for 
examination by revenue agents.

[ T.D. ATF-451, 66 FR 21669, May 1, 2001]



Sec.  26.55  Previously approved formulas.

    Any formula approved on Form 27-B Supplemental prior to January 1, 
1980, shall continue to be valid until revoked or voluntarily 
surrendered. Any person holding such a formula is not required to submit 
a new formula. If an approved formula on Form 27-B Supplemental 
indicates that carbon dioxide will be added to, or retained in, still 
wine, the notice requirement of Sec.  26.52 shall not apply.

[44 FR 71709, Dec. 11, 1979. Redesignated and amended by T.D. ATF-459, 
66 FR 38550, 38551, July 25, 2001]



       Subpart E_Taxpayment of Liquors and Articles in Puerto Rico

    Source: T.D. 6551, 26 FR 1490, Feb. 22, 1961, unless otherwise 
noted. Redesignated at 40 FR 16835, Apr. 15, 1975.

                                  Bonds



Sec.  26.61  General.

    Every person filing a bond under this subpart, or consent of surety 
on such bond, must file it in accordance with the instructions on the 
form.

[T.D. ATF-451, 66 FR 21669, May 1, 2001]



Sec.  26.62  Corporate surety.

    (a) Surety bonds may be given only with corporate sureties holding 
certificates of authority from, and subject to the limitations 
prescribed by, the Secretary of the Treasury, as set forth in the 
current revision of U.S. Treasury

[[Page 739]]

Department Circular No. 570 (Companies Holding Certificates of Authority 
as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring 
Companies).
    (b) Treasury Department Circular No. 570 is published in the Federal 
Register annually as of the first workday in July. As they occur, 
interim revisions of the circular are published in the Federal Register. 
Copies of the circular may be obtained from the Audit Staff, Bureau of 
Government Financial Operations, Department of the Treasury, Washington, 
DC 20226.

(July 30, 1947, ch. 390, 61 Stat. 648, as amended (6 U.S.C. 6, 7))

[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981]



Sec.  26.62a  Filing of powers of attorney.

    Each bond, and each consent to changes in the terms of a bond, shall 
be accompanied by a power of attorney authorizing the agent or officer 
who executed the bond or consent to so act on behalf of the surety. The 
appropriate TTB officer who is authorized to approve the bond may, when 
he deems it necessary, require additional evidence of the authority of 
the agent or officer to execute the bond or consent.

(61 Stat. 648; 6 U.S.C. 6, 7)

[T.D. ATF-2, 37 FR 22736, Oct. 21, 1972. Redesignated at 40 FR 16835, 
Apr. 15, 1975, as amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]



Sec.  26.62b  Execution of powers of attorney.

    The power of attorney shall be prepared on a form provided by the 
surety company and executed under the corporate seal of the company. If 
the power of attorney submitted is other than a manually signed 
original, it shall be accompanied by certification of its validity.

(61 Stat. 648; 6 U.S.C. 6, 7)

[T.D. ATF-2, 37 FR 22736, Oct. 21, 1972. Redesignated at 40 FR 16835, 
Apr. 15, 1975]



Sec.  26.63  Deposit of securities in lieu of corporate surety.

    In lieu of corporate surety, the principal may pledge and deposit, 
as surety for his bond, securities which are transferable and are 
guaranteed as to both interest and principal by the United States, in 
accordance with the provisions of 31 CFR part 225--Acceptance of Bonds, 
Notes or Other Obligations Issued or Guaranteed by the United States as 
Security in Lieu of Surety or Sureties on Penal Bonds.

(5 U.S.C. 552(a) (80 Stat. 383, as amended); 61 Stat. 650; 6 U.S.C. 15)

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-92, 46 FR 46921, Sept. 23, 1981]



Sec.  26.64  Consents of surety.

    Consents of surety to changes in the terms of bonds shall be 
executed on Form 1533 by the principal and by the surety with the same 
formality and proof of authority as is required for the execution of 
bonds.



Sec.  26.65  Authority to approve bonds and consents of surety.

    The appropriate TTB officer is authorized to approve all bonds and 
consents of surety filed under this part.

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]



Sec.  26.66  Bond, TTB Form 5110.50--Distilled spirits.

    (a) General. If any person intends to ship to the United States, 
distilled spirits products of Puerto Rican manufacture from bonded 
storage in Puerto Rico on computation, but before payment, of the tax 
imposed by 26 U.S.C. 7652(a), equal to the tax imposed in the United 
States by 26 U.S.C. 5001(a)(1), he shall, before making any such 
shipment, furnish a bond TTB Form 5110.50, for each premises from which 
shipment will be made, to secure payment of such tax, at the time and in 
the manner prescribed in this subpart, on all distilled spirits products 
shipped. The bond shall be executed in a penal sum not less than the 
amount of unpaid tax which, at any one time, is chargeable against the 
bond. The penal sum of such bond shall not exceed $1,000,000, but in no 
case shall the penal sum be less than $1,000.

[[Page 740]]

    (b) Blanket bond. Any person who is the proprietor of more than one 
premises in Puerto Rico from which shipment of spirits to the United 
States will be made, may, in lieu of furnishing two or more separate 
bonds on TTB Form 5110.50 as required by paragraph (a) of this section, 
furnish a blanket bond on TTB Form 5110.50. The penal sum of such 
blanket bond shall be equal to the sum of the penal sums of all the 
bonds in lieu of which it is given. Such blanket bond on TTB Form 
5110.50 shall show each bonded warehouse and/or bonded processing room 
and/or rectifying plant to be covered by the bond, and the part of the 
total penal sum (computed in accordance with paragraph (a) of this 
section) to be allocated to each of the designated premises. If the 
penal sum of the bond allocated to a designated premises is in an amount 
less than the maximum prescribed in paragraph (a) of this section, 
transactions at such premises shall not exceed the quantity permissible, 
as reflected by the penal sum allocated in the bond to such premises. 
Such blanket bond shall contain the terms and conditions of the bonds in 
lieu of which it is given and shall be conditioned that the total amount 
of the bond shall be available for satisfaction of any liability 
incurred under the terms and conditions of such bond.

(Act of August 16, 1954, 68A Stat. 847, as amended, 907, as amended (26 
U.S.C 7101, 7102, 7652))

[T.D. ATF-62, 44 FR 71710, Dec. 11, 1979]



Sec.  26.67  Bond, Form 2897--Wine.

    Where a proprietor intends to withdraw, for purpose of shipment to 
the United States, wine of Puerto Rican manufacture from bonded storage 
in Puerto Rico on computation, but before payment, of the tax imposed by 
26 U.S.C. 7652(a), equal to the tax imposed in the United States by 26 
U.S.C. 5041, he shall, before making any such withdrawal, furnish a 
bond, Form 2897, to secure payment of such tax, at the time and in the 
manner prescribed in this subpart, on all wine so withdrawn. The bond 
shall be executed in a penal sum not less than the amount of unpaid tax 
which, at any one time, is chargeable against the bond: Provided, That 
the penal sum of such bond shall not exceed $250,000, but in no case 
shall the penal sum be less than $500.

(Aug. 16, 1954, Chapter 736, 68A Stat. 775, as amended, 847, as amended, 
906, 907, as amended (26 U.S.C. 6302, 7101, 7102, 7651(2)(B), 7652(a)))

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55852, Sept. 28, 1979]



Sec.  26.68  Bond, Form 2898--Beer.

    Where a brewer intends to withdraw, for purpose of shipment to the 
United States, beer of Puerto Rican manufacture from bonded storage in 
Puerto Rico on computation, but before payment, of the tax imposed by 26 
U.S.C. 7652(a), equal to the tax imposed in the United States by 26 
U.S.C. 5051, he shall, before making any such withdrawal, furnish a 
bond, Form 2898, to secure payment of such tax, at the time and in the 
manner prescribed in this subpart, on all beer so withdrawn. The bond 
shall be executed in a penal sum not less than the amount of unpaid tax 
which, at any one time, is chargeable against the bond: Provided, That 
the penal sum of such bond shall not exceed $500,000, but in no case 
shall the penal sum be less than $1,000.

(Aug. 16, 1954, Chapter 736, 68A Stat. 775, as amended, 847, as amended, 
906, 907, as amended (26 U.S.C. 6302, 7101, 7102, 7651(2)(B), 7652(a)))

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55852, Sept. 28, 1979]



Sec.  26.68a  Bond account.

    Every person who files a bond under this subpart shall keep an 
account of the charges against and credits to the bond if the penal sum 
of his bond is less than the maximum prescribed in Sec. Sec.  26.66(a), 
26.67, or Sec.  26.68, or if the penal sum allocated to his premises 
under Sec.  26.66(b) is less than the prescribed maximum. He shall 
charge the bond with the amount of liability he accepts at the time he 
executes TTB Form 5110.51 or 2900, and shall credit the bond with the 
amount of the tax paid at the time he files each return, TTB Form 
5110.32, 2927, or 2929, and remittance.

[[Page 741]]

The account shall also show the balance available under the bond at any 
one time.

[T.D. ATF-62, 44 FR 71710, Dec. 11, 1979. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.69  Strengthening bonds.

    In all cases where the penal sum of any bond becomes insufficient, 
the principal shall either give a strengthening bond with the same 
surety to attain a sufficient penal sum, or give a new bond to cover the 
entire liability. Strengthening bonds will not be approved where any 
notation is made thereon which is intended, or which may be construed, 
as a release of any former bond, or as limiting the amount of any bond 
to less than its full penal sum. Strengthening bonds shall show the 
current date of execution and the effective date.



Sec.  26.70  New or superseding bonds.

    New bonds shall be required in case of insolvency or removal of any 
surety, and may, at the discretion of the appropriate TTB officer, be 
required in any other contingency affecting the validity or impairing 
the efficiency of an existing bond. Executors, administrators, 
assignees, receivers, trustees, or other persons acting in a fiduciary 
capacity, continuing or liquidating the business of the principal, shall 
execute and file a new bond or obtain the consent of the surety or 
sureties on the existing bond or bonds. Where, under the provisions of 
Sec.  26.72, the surety on any bond given under this subpart has filed 
an application to be relieved of liability under said bond and the 
principal desires or intends to continue the operations to which such 
bond relates, he shall file a valid superseding bond to be effective on 
or before the date specified in the surety's notice. New or superseding 
bonds shall show the current date of execution and the effective date.

[T.D. 6551, 26 FR 1590, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987. 
Further redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, 
July 25, 2001]



Sec.  26.70a  Notice of approval of bonds.

    Upon approval of an original, a strengthening, or a superseding 
bond, the appropriate TTB officer shall notify the Secretary, and the 
revenue agent at the premises, of the total penal sum of the bond or 
bonds, and in the case of a blanket bond, the amount of the penal sum 
allocated to the premises.

[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]

                          Termination of Bonds



Sec.  26.71  Termination of bonds.

    Any bond given under the provisions of this subpart may be 
terminated as to future transactions--
    (a) Pursuant to application of surety as provided in Sec.  26.72;
    (b) On approval of a superseding bond;
    (c) On notification by the principal to the appropriate TTB officer 
that he has discontinued transactions under the bond; or
    (d) On notification by the principal to the appropriate TTB officer 
that he has discontinued business.

[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]



Sec.  26.72  Application of surety for relief from bond.

    A surety on any bond given under the provisions of this subpart may 
at any time in writing notify the principal and the appropriate TTB 
officer that he desires, after a date named, to be relieved of liability 
under said bond. Such date shall be not less than 10 days after the date 
the notice is received by the appropriate TTB officer. The surety shall 
also file with the appropriate TTB officer an acknowledgment or other 
proof of service on the principal. If such notice is not thereafter in 
writing withdrawn, the rights of the principal as supported by said bond 
shall be terminated on the date named in the notice, and the surety 
shall be relieved

[[Page 742]]

from liability to the extent set forth in Sec.  26.73.

(Approved by the Office of Management and Budget under control number 
1512-0352)

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. 
ATF-251, 52 FR 19338, May 22, 1987. Redesignated and amended by T.D. 
ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.73  Relief of surety from bond.

    Where the surety on a bond given under the provisions of this 
subpart has filed application for relief from liability, as provided in 
Sec.  26.72, the surety shall be relieved from liability for 
transactions occurring wholly subsequent to the date specified in the 
notice, or the effective date of a new bond, if one is given.

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975 and further redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38551, July 25, 2001]



Sec.  26.74  Release of pledged securities.

    Securities of the United States pledged and deposited as provided in 
Sec.  26.63, shall be released only in accordance with the provisions of 
31 CFR part 225. Such securities will not be released by the appropriate 
TTB officer until the liability under the bond for which they were 
pledged has been terminated. When the appropriate TTB officer is 
satisfied that they may be released, he shall fix the date or dates on 
which a part or all of such securities may be released. At any time 
prior to the release of such securities, the appropriate TTB officer may 
extend the date of release for such additional length of time as he 
deems necessary.

(61 Stat. 650; 6 U.S.C. 15)

[T.D. 6551, 26 FR 1590, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]



Sec.  26.75  Form 1490, Notice of Termination of Bond.

    When the appropriate TTB officer is satisfied that any bond given 
under the provisions of this subpart may be terminated, he shall issue 
Form 1490, Notice of Termination of Bond, and shall forward copies to 
the principal and to the surety. The appropriate TTB officer shall, 
prior to the termination date, notify the Secretary and the revenue 
agent of the proposed termination of any bond given under this part and 
the date of such termination.

[T.D. 6695, 28 FR 12932, Dec. 5, 1963, as amended by T.D. ATF-2, 37 FR 
22736, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and 
amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]

                            Permits Required



Sec.  26.76  Insular permits.

    Before liquors or articles of Puerto Rican manufacture may be 
shipped to the United States, an insular permit, TTB Form 5110.51 (for 
distilled spirits) or Form 2900 (for wine or beer), to compute the taxes 
imposed by 26 U.S.C. 7652(a), and to withdraw the products from the 
bonded establishment where they may be deposited, must be obtained from 
the Secretary, and such products may not be shipped to the United States 
until a permit to ship, on Form 487B, is applied for and obtained from 
the Secretary.

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
26.76, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

                            Distilled Spirits



Sec.  26.77  Subject to tax.

    (a) Distilled spirits of Puerto Rican manufacture, and any products 
containing such distilled spirits, brought into the United States and 
withdrawn for consumption or sale are subject to a tax equal to the tax 
imposed in the United States by 26 U.S.C. 5001.
    (b) A credit against the tax imposed on distilled spirits by 26 
U.S.C. 7652 is allowable under 26 U.S.C. 5010 on each proof gallon of 
alcohol derived from eligible wine or from eligible flavors which do not 
exceed 2\1/2\ percent of the finished product on a proof gallon basis. 
The credit is allowable at the time the tax is payable as if it 
constituted a reduction in the rate of tax.

[[Page 743]]

    (c) Where credit against the tax is desired, the person liable for 
the tax shall establish an effective tax rate in accordance with Sec.  
26.79a. The effective tax rate established will be applied to each 
withdrawal or other disposition of the distilled spirits for consumption 
or sale within the United States.

(Approved by Office of Management and Budget under control number 1512-
0203)

(Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 
U.S.C. 7652); Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 
U.S.C. 5001); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 
U.S.C. 5010))

[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.78  Application and permit, TTB Form 5110.51.

    Application for permit to compute the tax on, and to withdraw, 
distilled spirits shall be made on TTB Form 5110.51, in quintuplicate, 
by the proprietor. The proprietor shall forward all copies of the form 
to the Secretary. If the application is properly prepared and is 
otherwise in order, the Secretary or his delegate shall execute the 
permit, retain one copy, and forward the original and remaining copies 
of the form to the revenue agent at the premises where the products are 
located.

[T.D. ATF-62, 44 FR 71711, Dec. 11, 1979, as amended by T.D. ATF-251, 52 
FR 19338, May 22, 1987]



Sec.  26.79  Inspection or gauge and computation of tax.

    On receipt of permit to compute the tax on TTB Form 5110.51, the 
revenue agent shall:
    (a) In the case of spirits in packages, prepare a gauge record as 
provided in Sec.  26.164a in quadruplicate, compute the tax thereon, and 
attach all copies of the gauge record to TTB Form 5110.51;
    (b) In the instance of spirits in cases, verify by inspection the 
quantity of spirits described on the form; or
    (c) In the case of spirits in a bulk conveyance, verify by gauge or 
inspection the quantity of spirits described on the form.

If the revenue agent determines any variation between his gauge and the 
quantity of spirits described on Form 5110.51, he shall amend and 
initial the data in part I of the form. The revenue agent shall deliver 
all copies of Form 5110.51 and any accompanying package gauge record to 
the proprietor. The proprietor shall then compute and enter the amount 
of tax on all copies of Form 5110.51.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.79a  Computation of effective tax rate.

    (a) The proprietor shall compute the effective tax rate for 
distilled spirits containing eligible wine or eligible flavors as the 
ratio of the numerator and denominator as follows:
    (1) the numerator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product 
(exclusive of distilled spirits derived from eligible flavors), 
multiplied by the tax rate prescribed by 26 U.S.C. 5001;
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by the tax rate prescribed by 26 U.S.C. 5041(b) (1), (2), or 
(3), as applicable; and
    (iii) The proof gallons of all distilled spirits derived from 
eligible flavors used in the product, multiplied by the tax rate 
prescribed by 26 U.S.C. 5001, but only to the extent that such distilled 
spirits exceed 2\1/2\% of the denominator prescribed in paragraph (a)(2) 
of this section.
    (2) The denominator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product, 
including distilled spirits derived from eligible flavors; and
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by twice the percentage of alcohol by volume of each, divided 
by 100.
    (b) In determining the effective tax rate, quantities of distilled 
spirits, eligible wine, and eligible flavors will be expressed to the 
nearest tenth of a proof gallon. The effective tax rate may be rounded 
to as many decimal places as the proprietor deems appropriate, provided 
that, such rate is expressed no less exactly than the rate

[[Page 744]]

rounded to the nearest whole cent, and the effective tax rates for all 
products will be consistently expressed to the same number of decimal 
places. In such case, if the number is less than five it will be 
dropped; if it is five or over, a unit will be added.
    (c) The following is an example of the use of the formula.
---------------------------------------------------------------------------

    \1\ Proof gallons by which distilled spirits derived from eligible 
flavors exceed 2\1/2\% of the total proof gallons in the batch (100.9 - 
(2\1/2\%) x 3.371.8 = 16.6).

                              Batch Record
Distilled spirits.........................  2249.1 proof gallons.
Eligible wine (14% alcohol by volume).....  2265.0 wine gallons
Eligible wine (19% alcohol by volume).....  1020.0 wine gallons
Eligible flavors..........................  100.9 proof gallons

                                            [GRAPHIC] [TIFF OMITTED] TC05OC91.041
                                            

(Approved by Office of Management and Budget under control number 1512-
0203)

(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18066, Apr. 30, 1990, as amended by T.D. ATF-307, 
55 FR 52741, Dec 21, 1990]



Sec.  26.80  Deferred payment of tax--release of spirits.

    (a) Action by proprietor. Where the proprietor has furnished bond on 
TTB Form 5110.50, and payment of the tax is to be deferred, he shall 
execute an agreement on TTB Form 5110.51 to pay the amount of tax which 
has been computed and entered on the form. He shall also certify, under 
the penalties of perjury, that he is not in default of any payment of 
tax chargeable against his bond, and that his bond is in the maximum 
penal sum, or that it is sufficient to cover the amount of tax on the 
distilled spirits described on the form in addition to all other amounts 
chargeable agains this bond. The proprietor shall deliver all copies of 
TTB Form 5110.51 and any package gauge record as provided in Sec.  
26.164a to the revenue agent.
    (b) Action by revenue agent. On receipt of TTB Form 5110.51 and any 
package gauge record, the revenue agent shall verify the computation of 
the tax entered on the TTB Form 5110.51, and if the proprietor has on 
file a good and sufficient bond, TTB Form 5110.50, so indicate on TTB 
Form 5110.51. The revenue agent shall then execute his report of release 
on the TTB Form 5110.51 and release the spirits for shipment to the 
United States. He shall distribute TTB Form 5110.51 and any package 
gauge record according to the instructions of TTB Form 5110.51. Where 
the revenue agent finds that the proprietor does not have good and 
sufficient bond coverage, or where the revenue agent has received 
information that the proprietor is in default of payment of any taxes 
previously charged to his bond, he shall return all copies of TTB Form 
5110.51 and any package gauge record

[[Page 745]]

to the proprietor, giving his reasons for such action.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8549, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.81  Prepayment of tax and release of spirits.

    (a) Action by proprietor. Where the distilled spirits are to be 
released after payment of the computed tax, the proprietor shall enter 
the amount of such computed tax on all copies of TTB Form 5110.51 and 
execute the statement that such tax is being prepaid. The proprietor 
shall then prepare TTB Form 5000.25 in duplicate, and send the original 
with all copies of TTB Form 5110.51 and any package gauge record as 
provided in Sec.  26.164a and the remittance in full for the tax, to the 
appropriate TTB officer.
    (b) Action by appropriate TTB officer. On receipt of TTB Forms 
5110.51, 5000.25 and any package gauge record, with remittance covering 
prepayment of tax, the appropriate TTB officer shall execute the receipt 
on TTB Form 5000.25 and execute the report of prepaid taxes on all 
copies of TTB Form 5110.51. The appropriate TTB officer shall then 
retain the originals of TTB Forms 5110.51 and 5000.25 and forward the 
remaining copies of TTB Form 5110.51 in accordance to the instructions 
on the form.
    (c) Action by revenue agent. On receipt of TTB Form 5110.51 executed 
by the appropriate TTB officer to show receipt of TTB Form 5000.25 and 
remittance, the revenue agent shall execute the report of release on the 
TTB Form 5110.51 and release the spirits for shipment to the United 
States. The completed TTB Form 5110.51 shall be distributed according to 
the instructions on the form.

(Approved by the Office of Management and Budget under control number 
1512-0210 and 1512-0497)

[T.D. ATF-277, 53 FR 45267, Nov. 9, 1988. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.82  Permit to ship.

    Distilled spirits may not be shipped to the United States until 
permit for such shipment has been obtained from the Secretary as 
provided in Sec. Sec.  26.114 through 26.116.

[T.D. 6695, 28 FR 12932, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71711, Dec. 11, 1979. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]

                      Packages of Distilled Spirits



Sec.  26.86  Authority for shipment.

    Where distilled spirits of Puerto Rican manufacture are to be 
shipped to the United States in containers having a capacity of more 
than one gallon, the laws and regulations of the Commonwealth of Puerto 
Rico require that prior approval for such shipment be obtained from the 
Secretary.

[T.D. 6695, 28 FR 12933, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec.  26.87  Evidence of taxpayment.

    Where, under the provisions of Sec.  26.86, a person has made 
application to the Secretary for authority to ship distilled spirits of 
Puerto Rican manufacture to the United States in containers having a 
capacity of more than one gallon, he shall, at the same time, submit 
sworn evidence to the Secretary that the distilled spirits tax has been 
paid as provided in Sec.  26.81 or deferred as provided in Sec.  26.80, 
or he shall submit application, TTB Form 5110.51, for permit to pay such 
taxes, as provided in Sec.  26.78. When satisfied that the shipper has 
complied with all provisions of this part relating to the payment of 
taxes on such distilled spirits, the Secretary or his delegate, shall 
note his approval on both copies of the sworn application, and return 
one copy to the shipper. On receipt of the approved application, the 
shipper shall submit application for permit to ship, Form 487B, as 
prescribed in Sec. Sec.  26.114 through 26.116.

[T.D. 6695, 28 FR 12933, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71711, Dec. 11, 1979. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]

                                  Wine



Sec.  26.92  Subject to tax.

    (a) Wine of Puerto Rican manufacture coming into the United States 
and

[[Page 746]]

withdrawn for consumption or sale is subject to a tax equal to the 
internal revenue tax imposed in the United States on wine by 26 U.S.C. 
5041.
    (b) The excise taxes collected on wine of Puerto Rican manufacture 
shall be deposited in the Treasury of Puerto Rico only if the sum of the 
cost or value of the materials produced in Puerto Rico, plus the direct 
costs of processing operations performed in Puerto Rico, equals or 
exceeds 50 percent of the value of the wine when it is brought into the 
United States.

(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))

[T.D. ATF-206, 50 FR 15888, Apr. 23, 1985]



Sec.  26.93  Application and permit, Form 2900.

    When wine of Puerto Rican manufacture is to be withdrawn for 
shipment to the United States, or for use in an article made with wine 
only or with wine and beer only, for shipment to the United States, 
application for permit to compute the tax on, and to withdraw, the wine 
shall be made on Form 2900, in quintuplicate, by the proprietor of the 
bonded premises where the wine is stored. If the withdrawal is to be 
made in casks, barrels, kegs or similar containers, the proprietor shall 
enter the name of the winemaker producing the wine, the serial numbers 
of the packages, the total number of wine gallons contained therein, and 
the taxable grade of the wine, for example, ``not more than 14 percent'' 
if the wine contains not more than 14 percent of alcohol by volume, 
``14-21 percent'' if the wine contains more than 14 percent and not 
exceeding 21 percent of alcohol by volume, ``21-24 percent'' if the wine 
contains more than 21 percent but not exceeding 24 percent of alcohol by 
volume. If the application covers more than one taxable grade of wine, 
the quantity in each taxable grade shall be reported separately. If the 
withdrawal is to consist of bottled wine, the proprietor shall show the 
number of cases, size of the bottles, the number of bottles per case, 
the total quantity in wine gallons, and the taxable grade of the wine in 
the manner stated above. The proprietor shall forward all copies of the 
form to the Secretary. If the application is properly prepared and is 
otherwise in order, the Secretary or his delegate shall execute the 
permit, retain one copy, and return the original and three copies to the 
proprietor.

[T.D. ATF-62, 44 FR 71712, Dec. 11, 1979, as amended by T.D. ATF-251, 52 
FR 19338, May 22, 1987]



Sec.  26.94  Computation of tax.

    On receipt of permit to compute the tax on Form 2900, the proprietor 
shall compute and enter the amount of the tax on all copies of the form.

[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec.  26.95  Deferred payment of tax--release of wine.

    (a) Action by proprietor. Where the proprietor has furnished bond, 
on Form 2897, and payment of the tax is to be deferred, he shall execute 
the agreement on Form 2900 to pay the amount of tax which has been 
computed and entered on the form. He shall also certify under the 
penalties of perjury that he is not in default of any payment of tax 
chargeable against his bond, and that his bond is in the maximum penal 
sum, or that it is sufficient to cover the amount of tax on the wine 
described on the form in addition to all other amounts chargeable 
against his bond. The proprietor shall deliver all copies of Form 2900 
to the revenue agent.
    (b) Action by revenue agent. On receipt of Form 2900, the revenue 
agent shall verify the computation of the tax entered on the form, and 
if the proprietor has on file a good and sufficient bond, Form 2897, so 
indicate on Form 2900. The revenue agent shall then execute his report 
of release on the Form 2900 and release the wine for the purpose 
authorized on the form. The completed form shall be distributed in the 
same manner as provided for TTB Form 5110.51 in Sec.  26.80(b). Where 
the revenue agent finds that the proprietor does not have good and 
sufficient bond coverage, or that the proprietor is in default of 
payment of any taxes previously charged to his bond, he shall return all 
copies of Form 2900 to the

[[Page 747]]

proprietor, giving his reasons for such action.

[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]



Sec.  26.96  Prepayment of tax--release of wine.

    (a) Action by proprietor. Where the wine is to be withdrawn from 
bonded storage after payment of the computed tax, the proprietor shall 
enter the amount of such computed tax on all copies of TTB Form 2900 
(5100.21) and execute the statement that such tax is being prepaid. The 
proprietor shall then prepare TTB Form 5000.25 in duplicate and send the 
original with all copies of TTB Form 2900 (5100.21) and the remittance 
in full for the tax, to the appropriate TTB officer.
    (b) Action by appropriate TTB officer. On receipt of TTB Forms 2900 
(5100.21) and 5000.25, and remittance covering prepayment of tax, the 
appropriate TTB officer shall execute the receipt on TTB Form 5000.25 
and execute the report of prepaid taxes on all copies of TTB Form 2900 
(5100.21). The appropriate TTB officer shall then retain the originals 
of TTB Forms 2900 (5100.21) and 5000.25 and forward the remaining copies 
of TTB Form 2900 (5100.21) in accordance with the instructions on the 
form.
    (c) Action by revenue agent. On receipt of TTB Form 2900 (5100.21) 
executed by the appropriate TTB officer to show receipt of TTB Form 
5000.25 and remittance, the revenue agent shall execute the report of 
release on the TTB Form 2900 (5100.21) and release the wine for the 
purpose authorized on the form. The completed TTB Form 2900 (5100.21) 
shall be distributed according to the instructions on the form.

(Approved by the Office of Management and Budget under control number 
1512-0149 and 1512-0497)

[T.D. ATF-277, 53 FR 45267, Nov. 9, 1988]



Sec.  26.96a  [Reserved]



Sec.  26.96b  Permit to ship.

    Wine released from bonded storage under Sec.  26.95 or Sec.  26.96 
may not be shipped to the United States until permit for such shipment 
has been obtained from the Secretary as provided in Sec. Sec.  26.114 
through 26.116.

[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38551, July 25, 2001]



Sec.  26.97  Marking containers of wine.

    Containers of wine of Puerto Rican manufacture which are to be 
shipped to the United States must be marked with the name of the 
winemaker, the serial number of the container, the kind and taxable 
grade of the wine, the gallon content, and the serial number of the 
withdrawal permit, Form 487B, prefixed by the number of such form, e.g., 
``487B-61-3.''

                                  Beer



Sec.  26.101  Subject to tax.

    (a) Beer of Puerto Rican manufacture coming into the United States 
and withdrawn for consumption or sale is subject to a tax equal to the 
internal revenue tax imposed on beer in the United States by 26 U.S.C. 
5051.
    (b) The excise taxes collected on beer of Puerto Rican manufacture 
shall be deposited in the Treasury of Puerto Rico only if the sum of the 
cost or value of the materials produced in Puerto Rico, plus the direct 
costs of processing operations performed in Puerto Rico, equals or 
exceeds 50 percent of the value of the beer when it is brought into the 
United States.

(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652))

[T.D. ATF-206, 50 FR 15888, Apr. 23, 1985]



Sec.  26.102  Application and permit, Form 2900.

    When beer of Puerto Rican manufacture is to be withdrawn for 
shipment to the United States, or for use in making an article for 
shipment to the United States, application for permit to compute the tax 
on, and to withdraw, the beer shall be made by the brewer on Form 2900, 
in quintuplicate. If the withdrawal is to be made in hogsheads, barrels, 
or kegs, the brewer shall enter the total number of each size, according 
to capacity, of containers which it

[[Page 748]]

is desired to withdraw. If the withdrawal is to be made in bottles, the 
brewer shall enter the number of cases, size of bottles, number of 
bottles per case, the total contents thereof in gallons (liquid 
measure), and the equivalent thereof in barrels and fractions of barrels 
of 31 gallons each. The brewer shall forward all copies of the Form 2900 
to the Secretary. If the application is properly prepared and is 
otherwise in order, the Secretary or his delegate shall execute the 
permit, retain one copy, and return the original and three copies to the 
brewer.

[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19338, May 22, 1987]



Sec.  26.103  Computation of tax.

    On receipt of permit to compute the tax on Form 2900 the brewer 
shall compute and enter the amount of the tax on all copies of the form.

[T.D. 6695, 28 FR 12934, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec.  26.104  Deferred payment of tax--release of beer.

    (a) Action by brewer. Where the brewer has furnished bond on Form 
2898, and payment of the tax is to be deferred, he shall execute the 
agreement on Form 2900 to pay the amount of tax which has been computed 
and entered on the form. He shall also certify under the penalties of 
perjury that he is not in default of any payment of tax chargeable 
against his bond, and that his bond is in the maximum penal sum, or that 
it is sufficient to cover the amount of tax on the beer described on the 
form in addition to all other amounts chargeable against his bond. The 
brewer shall deliver all copies of Form 2900 to the revenue agent.
    (b) Action by revenue agent. On receipt of Form 2900, the revenue 
agent shall verify the computation of the tax entered on the form, and 
if the proprietor has on file a good and sufficient bond, Form 2898, so 
indicate on Form 2900. The revenue agent shall then execute his report 
of release on the Form 2900 and release the beer for the purpose 
authorized on the form. The completed form shall be distributed in the 
same manner as provided for TTB Form 5110.51 in Sec.  26.80(b). Where 
the revenue agent finds that the proprietor does not have good and 
sufficient bond coverage, or that the proprietor is in default of 
payment of any taxes previously charged to his bond, he shall return all 
copies of Form 2900 to the proprietor, giving his reasons for such 
action.

[T.D. 6695, 28 FR 12934, Dec. 5 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]



Sec.  26.105  Prepayment of tax--release of beer.

    (a) Action by brewer. Where the beer is to be withdrawn from bonded 
storage after payment of the computed tax the brewer shall enter the 
amount of such computed tax on all copies of TTB Form 2900 (5100.21) and 
execute the statement that such tax is being prepaid. The brewer shall 
then prepare TTB Form 5000.25 in duplicate and send the original with 
all copies of TTB Form 2900 (5100.21) and the remittance in full for the 
tax, to the appropriate TTB officer.
    (b) Action by appropriate TTB officer. On receipt of TTB Forms 2900 
(5100.21) and 5000.25, and remittance covering prepayment of tax, the 
appropriate TTB officer shall execute the receipt on TTB Form 5000.25 
and execute the report of prepaid taxes on all copies of TTB Form 2900 
(5100.21). The appropriate TTB officer shall then retain the originals 
of TTB Forms 2900 (5110.21) and 5000.25 and forward the remaining copies 
of TTB Form 2900 (5100.21) in accordance with the instructions of the 
form.
    (c) Action by revenue agent. On receipt of TTB Form 2900 (5100.21) 
executed by the appropriate TTB officer to show receipt of TTB Form 
5000.25 and remittance, the revenue agent shall execute the report of 
release on the TTB Form 2900 (5100.21) and release the beer for the 
purpose authorized on the form. The completed TTB Form 2900 (5100.21) 
shall be distributed according to the instructions on the form.

(Approved by the Office of Management and Budget under control number 
1512-0149 and 1512-0497)

[T.D. ATF-277, 53 FR 45268, Nov. 9, 1988]

[[Page 749]]



Sec.  26.105a  Permit to ship.

    Beer released from bonded storage under Sec.  26.104 or Sec.  26.105 
may not be shipped to the United States until permit for such shipment 
has been obtained from the Secretary as provided in Sec. Sec.  26.114 
through 26.116.

[T.D. 6695, 28 FR 12935, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38551, July 25, 2001]



Sec.  26.106  Marking containers of beer.

    Containers of beer of Puerto Rican manufacture which are to be 
shipped to the United States must be marked with the name of the brewer; 
the serial number, capacity, and size of the container; the kind of 
beer; and the serial number of the withdrawal permit, Form 487B, 
prefixed by the number of such form, e.g., ``487B-61-3.''

                                Articles



Sec.  26.107  Taxable status.

    Articles of Puerto Rican manufacture which are to be shipped to the 
United States and which are not exempt fom tax under the provisions of 
Sec.  26.36 are subject, under section 7652(a) to a tax equal to the tax 
imposed by the internal revenue laws of the United States. If such 
articles contain distilled spirits, the tax will be collected at the 
rate prescribed by 26 U.S.C. 5001(a)(1) on all alcohol contained 
therein, regardless of the source. Such articles containing only wine 
and/or beer will be taxed at the rates prescribed by 26 U.S.C. 5041 and/
or 5051, respectively. A formula covering the manufacture of each 
article shall be filed by the manufacturer in accordance with subpart D 
of this part.

[T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, July 25, 2001]



Sec.  26.108  Application for permit, TTB Form 5110.51 and/or Form 2900.

    (a) Distilled spirits. Where distilled spirits of Puerto Rican 
manufacture are to be used in the manufacture of the articles to be 
shipped to the United States, the manufacturer shall make application on 
Form 5110.51, in accordance with the applicable provisions of Sec.  
26.78.
    (b) Wine and/or beer. Where wine and/or beer of Puerto Pican 
manufacture is to be used in the manufacture of the articles to be 
shipped to the United States, the manufacturer shall make application on 
Form 2900, in accordance with the applicable provisions of Sec. Sec.  
26.93 and/or 26.102. Wine and beer may be included in the same 
application.
    (c) Approval of applications. The Secretary, or his delegate, shall 
approve and dispose of the applications in the manner prescribed in 
Sec. Sec.  26.78, 26.93, and/or Sec.  26.102, as the case may be.

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]



Sec.  26.109  Taxpayment.

    (a) Distilled spirits. The tax on distilled spirits contained in 
articles to be shipped to the United States, equal to the tax imposed in 
the United States by 26 U.S.C. 5001(a)(1), shall be computed in 
accordance with Sec.  26.79 and paid in accordance with the applicable 
provisions of Sec. Sec.  26.80, 26.81, and 26.111 through 26.113.
    (b) Wine. The tax on wine used in the manufacture of articles to be 
shipped to the United States, equal to the tax imposed in the United 
States by 26 U.S.C. 5041, shall be computed in accordance with Sec.  
26.94 and paid in accordance with the applicable provisions of 
Sec. Sec.  26.95, 26.96, and 26.111 through 26.113.
    (c) Beer. The tax on beer used in the manufacture of articles to be 
shipped to the United States, equal to the tax imposed in the United 
States by 26 U.S.C. 5051, shall be computed in accordance with Sec.  
26.103 and paid in accordance with the applicable provisions of 
Sec. Sec.  26.104, 26.105, and 26.111 through 26.113.

[T.D. ATF-62, 44 FR 71712, Dec. 11, 1979. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.110  Release of articles or liquors.

    After determining that the proprietor has good and sufficient bond 
coverage, or, in the case of prepayment, on receipt of TTB Form 5110.51 
or Form

[[Page 750]]

2900 executed by the appropriate TTB officer to show receipt of TTB Form 
5000.25, and remittance, the revenue agent shall execute his report of 
release on TTB Form 5110.51 or Form 2900 and release the articles 
containing distilled spirits, or release the wine and/or beer for use in 
the manufacture of articles. He shall forward one copy of TTB Form 
5110.51 or Form 2900, and any package gauge record as provided in Sec.  
26.164a, to the Bureau of Alcoholic Beverage Taxes and one copy of each 
to the District Revenue Agent (Commonwealth of Puerto Rico), deliver one 
copy of each to the applicant, and retain one copy. A permit shall be 
obtained as provided in Sec. Sec.  26.114 through 26.116 before the 
articles manufactured from such liquors may be shipped to the United 
States.

(Approved by the Office of Management and Budget under control number 
1512-0497)

[T.D. ATF-198, 50 FR 8550, Mar. 1, 1985, as amended by T.D. ATF-251, 52 
FR 19338, May 22, 1987; T.D. ATF-277, 53 FR 45268, Nov. 9, 1988. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 25, 
2001]

                        Payment of Tax by Return



Sec.  26.111  General.

    All taxes imposed by 26 U.S.C. 7652(a), and which, under the 
provisions of this part, are paid in Puerto Rico, shall be paid and 
collected on the basis of a tax return as provided in this subpart. Any 
tax which has been paid in accordance with the provisions of this part 
in effect at the time of such payment, and before provision was made in 
the part for payment of such tax by return, shall be deemed to have been 
prepaid as prescribed in this part.

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55852, Sept. 28, 1979; T.D. 
ATF-277, 53 FR 45268, Nov. 9, 1988]



Sec.  26.112  Returns for deferred payment of tax.

    (a) Returns. The taxes imposed by 26 U.S.C. 7652(a), (equal to the 
taxes imposed in the United States by 26 U.S.C. 5001(a)(1), 5041, or 
5051), the payment of which has been deferred under the provisions of 
Sec. Sec.  26.80, 26.95 or 26.104 of this part, shall be paid pursuant 
to a return on TTB Form 5000.25 prepared in accordance with the 
instructions on the form.
    (b) Return periods. (1) Definitions. For purposes of this section, 
the following terms have the meanings indicated:
    Reasonably expects. When used with reference to a taxpayer, 
reasonably expects means the taxpayer was not liable for more than 
$50,000 in taxes the previous year and there is no other existing or 
anticipated circumstance known to the taxpayer (such as an increase in 
production capacity) that would cause the taxpayer's liability to 
increase beyond that limit.
    Taxpayer. A taxpayer is a person who is liable for excise tax under 
26 U.S.C. 7652 under the same Employer Identification Number as defined 
in 26 CFR 301.7701-12.
    (2) Semimonthly return period. Except in the case of a taxpayer who 
qualifies for, and chooses to use, quarterly return periods as provided 
in paragraph (b)(3) of this section, all taxpayers must use semimonthly 
return periods for deferred payment of tax. The semimonthly return 
periods shall run from the 1st day through the 15th day of each month, 
and from the 16th day through the last day of each month, except as 
otherwise provided in paragraph (e) of this section.
    (3) Quarterly return period. Effective January 1, 2006, a taxpayer 
who reasonably expects to be liable for not more than $50,000 in taxes 
imposed by 26 U.S.C. 7652 for the current calendar year, and who was 
liable for not more than $50,000 in such taxes in the preceding calendar 
year, may choose to use a quarterly return period. In such a case the 
last day for payment of tax and filing the return will be the 14th day 
after the last day of the calendar quarter. However, the taxpayer may 
not use the quarterly return period procedure for any portion of the 
calendar year following the first date on which the aggregate amount of 
tax due from the taxpayer during the calendar year exceeds $50,000, and 
any tax which has not been paid on that date will be due on the 14th day 
after the last day of semimonthly period in which that date occurs.
    (c) Filing. (1) The original of TTB Form 5000.25, with remittance 
covering

[[Page 751]]

the full amount of the tax, shall be filed with the appropriate TTB 
officer not later than the 14th day after the last day of the return 
period except as provided by paragraph (d) of this section. If the due 
date falls on a Saturday, Sunday, or legal holiday, the return and 
remittance shall be due on the immediately preceding day which is not a 
Saturday, Sunday, or legal holiday, except as provided by paragraph (d) 
of this section.
    (2) The tax shall be paid in full by remittance at the time the 
return is filed, unless the proprietor is required to make remittances 
by electronic fund transfer in accordance with Sec.  26.112a.
    (3) The remittance may be in any form that is authorized to be 
accepted under the provisions of Sec.  70.61 of this chapter.
    (4) When the return and remittance are delivered by U.S. mail to the 
office of the appropriate TTB officer, the date of the official postmark 
of the U.S. Postal Service stamped on the cover in which the return and 
remittance were mailed shall be treated as the date of delivery.
    (d) Special September rule for taxes due by semimonthly return. (1) 
General. The second semimonthly period for the month of September shall 
be divided into two payment periods, from the 16th day through the 26th 
day, and from the 27th day through the 30th day. The taxpayer shall file 
a return on Form 5000.24, and make remittance, for the period September 
16-26, no later than September 29. The taxpayer shall file a return on 
Form 5000.24, and make remittance, for the period September 27-30, no 
later than October 14.
    (2) Taxpayment not by electronic fund transfer. In the case of taxes 
not required to be remitted by electronic fund transfer as prescribed by 
Sec.  26.112a, the second semimonthly period of September shall be 
divided into two payment periods, from the 16th day through the 25th 
day, and the 26th day through the 30th day. The taxpayer shall file a 
return on Form 5000.24, and make remittance, for the period September 
16-25, no later than September 28. The taxpayer shall file a return on 
Form 5000.24, and make remittance, for the period September 26-30, no 
later than October 14.
    (3) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (d)(1) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (d)(2) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax liability 
incurred for the semimonthly period beginning on September 1 and ending 
on September 15, and if any underpayment of tax is paid by October 14.
    (4) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (e) Default. Where a taxpayer has defaulted in any payment of tax 
under this section, during the period of such default and until the 
appropriate TTB officer finds that the revenue will not be jeopardized 
by deferred payment of tax under this section, the tax shall be prepaid 
by such taxpayer in accordance with the provisions of Sec.  26.113. 
During such period, distilled spirits, wine, or beer shall not be 
released from the proprietor's bonded premises before the proprietor has 
paid the tax thereon. In the event of default, the appropriate TTB 
officer shall immediately notify the Secretary and the revenue agent at 
the premises that tax is to be prepaid until further notice, and upon a 
finding that the revenue will not be jeopardized by resumption of 
deferred payment

[[Page 752]]

or tax under this section, the appropriate TTB officer shall notify the 
Secretary and the revenue agent that deferred payment may be resumed.

(Approved by the Office of Management and Budget under control number 
1512-0497)

(Aug. 16, 1954, Ch. 736, 68A Stat. 775, (26 U.S.C. 6301); June 29, 1956, 
Ch. 462, 70 Stat. 391 (26 U.S.C. 6301))

[T.D. ATF-277, 53 FR 45268, Nov. 9, 1988, as amended by T.D. ATF-301, 55 
FR 47658, Nov. 14, 1990; T.D. ATF-365, 60 FR 33674, June 28, 1995; T.D. 
ATF-451, 66 FR 21669, May 1, 2001. Redesignated and amended by T.D. ATF-
459, 66 FR 38550, 38551, July 25, 2001; T.D. TTB-41, 71 FR 5604, Feb. 2, 
2006]



Sec.  26.112a  Payment of tax by electronic fund transfer.

    (a) General. (1) Each taxpayer who was liable, during a calendar 
year, for a gross amount equal to or exceeding five million dollars in 
distilled spirits taxes combining tax liabilities incurred under this 
part and parts 19 and 27 of this chapter, a gross amount equal to or 
exceeding five million dollars in wine taxes combining tax liabilities 
incurred under this part and parts 24 and 27 of this chapter, or a gross 
amount equal to or exceeding five million dollars in beer taxes 
combining tax liabilities incurred under this part and parts 25 and 27 
of this chapter, shall use a commercial bank in making payment by 
electronic fund transfer (EFT) of such taxes during the succeeding 
calendar year. Payment by cash, check, or money order, of distilled 
spirits taxes, wine taxes, or beer taxes, as described in Sec.  26.112, 
is not authorized for a taxpayer who is required, by this section, to 
make remittances by EFT. For purposes of this section, the dollar amount 
of tax liability is to be summarized separately for distilled spirits 
taxes, wine taxes, or beer taxes, and is defined as the gross tax 
liability on each type of product for which taxes are paid in accordance 
with this subpart, taxable withdrawals from premises in the United 
States, and importation during the calendar year, without regard to any 
drawbacks, credits, or refunds, for all premises at which tax 
liabilities are incurred by the taxpayer. Overpayments are not taken 
into account in summarizing the gross tax liability.
    (2) For the purposes of this section, a taxpayer includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (3) A taxpayer who is required by this section to make remittances 
by EFT, shall make a separate EFT remittance and file a separate tax 
return, for each premises from which distilled spirits, wine, or beer is 
withdrawn upon determination of tax.
    (b) Requirements. (1) On or before January 10 of each calendar year, 
except for a taxpayer already remitting the tax by EFT, each taxpayer 
who was liable for a gross amount equal to or exceeding five million 
dollars in distilled spirits taxes combining tax liabilities incurred 
under this part and parts 19 and 27 of this chapter, a gross amount 
equal to or exceeding five million dollars in wine taxes combining tax 
liabilities incurred under this part and parts 24 and 27 of this 
chapter, or a gross amount equal to or exceeding five million dollars in 
beer taxes combining tax liabilities incurred under this part and parts 
25 and 27 of this chapter during the previous calendar year, shall 
notify, in writing, the appropriate TTB officer. The notice shall be an 
agreement to make remittances by EFT.
    (2) For each return filed in accordance with this part, the taxpayer 
shall direct the taxpayer's bank to make an electronic fund transfer in 
the amount of the taxpayment to the Treasury Account as provided in 
paragraph (e) of this section. The request shall be made to the bank 
early enough for the transfer to be made to the Treasury Account

[[Page 753]]

by no later than the close of business on the last day for filing the 
return, prescribed in Sec.  26.112 or Sec.  26.113. The request shall 
take into account any time limit established by the bank.
    (3) If a taxpayer was liable for less than five million dollars in 
distilled spirits taxes combining tax liabilities incurred under this 
part and parts 19 and 27 of this chapter, less than five million dollars 
in wine taxes combining tax liabilities incurred under this part and 
parts 24 and 27 of this chapter, or less than five million dollars in 
beer taxes combining tax liabilities incurred under this part and parts 
25 and 27 of this chapter during the preceding calendar year, the 
taxpayer may choose either to continue remitting the tax as provided in 
this section or to remit the tax with the return as prescribed by Sec.  
26.112. Upon filing the first return on which the taxpayer chooses to 
discontinue remitting the tax by EFT and to begin remitting the tax with 
the tax return, the taxpayer shall notify the appropriate TTB officer by 
attaching a written notification to the tax return, stating that no 
taxes are due by EFT, because the tax liability during the preceding 
calendar year was less than five million dollars, and that the 
remittance shall be filed with the tax return.
    (c) Remittance. (1) Each taxpayer shall show on the tax return, 
information about remitting the tax for that return by EFT and shall 
file the return with the appropriate TTB officer.
    (2) Remittances shall be considered as made when the taxpayment by 
electronic fund transfer is received by the Treasury Account. For 
purposes of this section, a taxpayment by electronic fund transfer shall 
be considered as received by the Treasury Account when it is paid to a 
Federal Reserve Bank.
    (3) When the taxpayer directs the bank to effect an electronic fund 
transfer message as required by paragraph (b)(2) of this section, any 
transfer data record furnished to the taxpayer, through normal banking 
procedures, will serve as the record of payment, and shall be retained 
as part of required records.
    (d) Failure to make a taxpayment by EFT. The taxpayer is subject to 
a penalty imposed by 26 U.S.C. 5684, 6651, or 6656, as applicable, for 
failure to make a taxpayment by EFT on or before the close of business 
on the prescribed last day for filing.
    (e) Procedure. Upon the notification required under paragraph (b)(1) 
of this section, the appropriate TTB officer will issue to the taxpayer 
an TTB Procedure entitled, Payment of Tax by Electronic Fund Transfer. 
This publication outlines the procedure a taxpayer is to follow when 
preparing returns and EFT remittances in accordance with this part. The 
U.S. Customs Service will provide the taxpayer with instructions for 
preparing EFT remittances for payments to be made to the U.S. Customs 
Service.

(Approved by the Office of Management and Budget under control number 
1512-0457)

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))

[T.D. ATF-185, 49 FR 37580, Sept. 25, 1984, as amended by T.D. ATF-245, 
52 FR 532, Jan. 7, 1987; T.D. ATF-251, 52 FR 19339, May 22, 1987; T.D. 
ATF-262, 52 FR 47560, Dec. 15, 1987; T.D. ATF-277, 53 FR 45268, Nov. 9, 
1988. Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38551, July 
25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002]



Sec.  26.113  Returns for prepayment of taxes.

    (a) General. If a proprietor does not have an approved bond covering 
the deferred payment of taxes, or if such bond is in an insufficient 
penal sum, or if there is default by him in any payment of tax under 
this subpart, liquors shall not be released from bonded storage before 
the proprietor has paid the tax thereon.
    (b) Remittances. Remittances submitted to cover prepayment of taxes 
under this subpart shall be in cash, United States postal money orders, 
certified checks, or cashier's checks.
    (c) Distilled spirits. In all cases where taxes equal to the taxes 
imposed in the United States by 26 U.S.C. 5001(a)(1) are to be paid 
before distilled spirits may be released for shipment, the proprietor 
shall pay such taxes pursuant to a return on TTB Form 5000.25, as 
prescribed in Sec.  26.81.
    (d) Wine. In all cases where taxes equal to the taxes imposed in the 
United States by 26 U.S.C. 5041, are to

[[Page 754]]

be paid before wine may be withdrawn from bonded storage, the proprietor 
shall pay such taxes pursuant to a return on TTB Form 5000.25, and as 
prescribed in Sec.  26.96.
    (e) Beer. In all cases where taxes equal to the taxes imposed in the 
United States by 26 U.S.C. 5051, are to be paid before beer may be 
withdrawn from bonded storage, the brewer shall pay such taxes pursuant 
to a return on TTB Form 5000.25, and as prescribed in Sec.  26.105.
    (f) Applicable procedures. The procedures of Sec.  26.112(c) with 
respect to returns delivered by United States mail shall apply to 
returns and remittances filed under the provisions of this section.

(Approved by the Office of Management and Budget under control number 
1512-0497)

[20 FR 6077, Aug. 20, 1955]

    Editorial Note: For Federal Register citations affecting Sec.  
26.113, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

                   Permit To Ship Liquors and Articles



Sec.  26.114  Permit to ship required.

    Before liquors and articles of Puerto Rican manufacture, upon which 
all internal revenue taxes have been paid or deferred as prescribed in 
this subpart, may be shipped to the United States, a permit to ship, 
Form 487B, must be obtained from the Secretary as provided in Sec. Sec.  
26.115 and 26.116.

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38552, July 25, 2001]



Sec.  26.115  Application, Form 487B.

    Application for permit to ship to the United States liquors and 
articles of Puerto Rican manufacture on which all taxes have been paid 
or deferred as prescribed in this subpart shall be made by the shipper 
on Form 487B, in sextuple. Each Form 487B will be given a serial number, 
by the applicant, beginning with ``1'' for the first day of January of 
each year and running consecutively thereafter to December 31, 
inclusive. This serial number will be prefixed by the last two digits of 
the calendar year, e.g. ``61-1.'' All copies of the form shall be 
delivered to the revenue agent for execution of his certification 
thereon and forwarding of all copies to the Secretary within sufficient 
time to allow for the issuance of the permit and customs inspection as 
provided in Sec.  26.116.

[T.D. 6551, 26 FR 1490, Feb. 22, 1961. Redesignated at 40 FR 16835, Apr. 
15, 1975, and further redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38552, July 25, 2001]



Sec.  26.116  Issuance of permit, Form 487B, and customs inspection.

    If the application has been properly executed and the Secretary, or 
his delegate, finds that all internal revenue taxes imposed under 26 
U.S.C. 7652(a), have been computed under the provisions of this part and 
have been paid or, pursuant to a sufficient bond, have been deferred 
under the applicable provisions of this part, he will execute his permit 
on all copies thereof, retain one copy of the form, return two copies to 
the shipper, and send three copies to the district director of customs 
in Puerto Rico. The shipper will submit the two copies of the Form 487B 
to the district director of customs at least six hours prior to the 
intended lading of the merchandise. The district director of customs 
will then inspect the merchandise covered by the Form 487B after which 
he will execute his certificate on each copy of Form 487B indicating all 
exceptions. If discrepancies appear indicating differences between the 
quantity covered by Form 487B and the quantity actually contained in the 
shipment or the improper tax payment of the merchandise, he will 
withhold release of the shipment and notify the Secretary of such 
discrepancies. Thereupon, such discrepancies must be corrected in the 
shipping documents and additional tax paid, if required, prior to 
release of the merchandise. The district director of customs, upon 
release of the merchandise for shipment, will retain one copy of the 
Form 487B, return two copies to the shipper, and send two copies to the 
district director of customs at the port of arrival in the United 
States, one of which should be mailed and the other dispatched on the 
vessel concerned for the guidance of the appropriate TTB officer who 
will handle the cargo. After the shipment

[[Page 755]]

has been cleared by the district director of customs in Puerto Rico, the 
shipper shall retain one copy of the Form 487B and send one copy 
thereof, with other shipping documents, to the district director of 
customs at the port of arrival.

[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
26.116, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.

                      Procedure at Port of Arrival



Sec.  26.117  Action by carrier.

    The carrier of the merchandise specified on the Form 487B shall, at 
the time of unlading at the port of arrival in the United States, 
segregate and arrange the cases of liquors or articles for convenient 
customs examination and will assume any expense incurred in connection 
therewith.



Sec.  26.118  Inspection by district director of customs at port of arrival.

    On receipt of properly executed Form 487B from the shipper and the 
copies of Form 487B from the district director of customs in Puerto 
Rico, the district director of customs at the port of arrival shall 
inspect the merchandise to determine whether the quantity specified on 
the Form 487B is contained in the shipment. He will then execute his 
certificate on each copy of Form 487B received and indicate thereon any 
exceptions found at the time of discharge. The statement of exceptions 
should show the serial number of each case or other shipping container 
which sustained a loss, the quantity of liquor reported shipped in such 
container and the quantity lost. Losses occurring as the result of 
missing bottles, cases, or other containers should be listed separately 
from empty containers and containers which have sustained losses due to 
breakage. Where the statement is made on the basis of bottles missing or 
lost due to other cause, the number and size of bottles lost should be 
shown. If the district director of customs finds that the full amount of 
the taxes due has not been paid, he will require the difference due to 
be paid prior to release of the merchandise in accordance with the 
applicable provisions of this part. When the proper inspection of the 
merchandise has been effected, and any additional taxes found to be due 
on the liquors or articles collected, the merchandise will be released.

[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975. T.D. ATF-451, 66 
FR 21669, May 1, 2001]



Sec.  26.119  Disposition of forms by district director of customs.

    Two copies of the Form 487B will be forwarded to the appropriate TTB 
officer, and one copy of the form will be retained by the district 
director of customs and be available for inspection by appropriate TTB 
officers.

[ T.D. ATF-451, 66 FR 21669, May 1, 2001]



   Subpart F_Liquors and Articles Purchased by Tourists in Puerto Rico



Sec.  26.125  Taxable.

    When liquors and articles subject to tax are brought into the United 
States by tourists, the tax thereon shall be paid as provided in this 
subpart.



Sec.  26.126  Taxpayment in Puerto Rico.

    Liquors upon which all Federal internal revenue taxes have been paid 
in Puerto Rico may be brought into the United States for personal 
consumption without payment of additional taxes. When distilled spirits, 
wines, or beer are purchased by a tourist for consumption in the United 
States, the internal revenue tax due may be paid to the appropriate TTB 
officer, and an TTB receipt obtained, or the tax may be paid to the U.S. 
Customs authorities, who will issue a customs receipt. The tax on 
articles purchased by tourists may be paid in the same manner. The 
receipt received from the appropriate TTB officer or from the customs

[[Page 756]]

officer shall be presented, as required, as evidence that the tax has 
been paid.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1358, as amended 
(26 U.S.C. 5061, 5205))

[T.D. ATF-206, 50 FR 23954, June 7, 1985, as amended by T.D. ATF-251, 52 
FR 19339, May 22, 1987]



Sec.  26.128  Taxpayment at port of arrival.

    If the internal revenue tax on liquors and articles is not paid in 
Puerto Rico, it shall be paid by the tourist at the port of arrival 
prior to release of the liquors or articles from customs custody. The 
tax may be paid to an appropriate TTB officer, and an TTB receipt 
obtained, or the tax may be paid to the director of customs, who will 
issue a customs receipt. If payment is to be made to an appropriate TTB 
officer, the director of customs will notify the appropriate TTB officer 
of the amount of tax due. On payment of the tax to the director of 
customs, or on submission of the TTB receipt for the tax, the director 
of customs will release the liquors or articles.

[T.D. ATF-251, 52 FR 19339, May 22, 1987, as amended by T.D. ATF-451, 66 
FR 21669, May 1, 2001]



        Subpart G_Closures for Distilled Spirits From Puerto Rico



Sec.  26.135  Containers of distilled spirits to bear closures.

    Containers of 1 gallon (3.785 liters) or less of distilled spirits, 
upon which all Federal internal revenue taxes have been paid or deferred 
in Puerto Rico under provisions of this part, shall have closures or 
other devices affixed in accordance with the provisions of this part, 
prior to shipment to the United States.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23954, June 7, 1985]



Sec.  26.136  Affixing closures.

    Closures or other devices shall be securely affixed to containers 
having capacity of 1 gallon (3.785 liters) or less so as to leave a 
portion remaining on the container when it is opened. In addition, the 
closures or other devices shall be constructed in such a manner as to 
require that they be broken to gain access to the contents of the 
containers.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23954, June 7, 1985]



        Subpart H_Records and Reports of Liquors From Puerto Rico



Sec.  26.163  General requirements.

    Except as provided in Sec.  26.164, every person, other than a 
tourist, bringing liquor into the United States from Puerto Rico shall 
keep records and render reports of the physical receipt and disposition 
of such liquors in accordance with part 31 \1\ of this chapter: 
Provided, That if the person who is responsible for release of the 
liquors from customs custody does not take physical possession of the 
liquors, he shall keep commercial records reflecting such release; such 
records shall identify the kind and quantity of the liquors released, 
the name and address of the person receiving the liquors from customs 
custody, and shall be filed chronologically by release dates. Records 
and reports will not be required under this part with respect of liquors 
while in customs custody.
---------------------------------------------------------------------------

    \1\ (``Alcohol Beverage Dealers'')

(Approved by the Office of Management and Budget under control number 
---------------------------------------------------------------------------
1512-0352)

(72 Stat. 1342, 1395; 26 U.S.C. 5114, 5555)

[T.D. ATF-2, 37 FR 22736, Oct. 21, 1972. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984. 
Redesignated and amended by T.D. ATF-459, 66 FR 38550, 38552, July 25, 
2001; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]



Sec.  26.164  Proprietors of taxpaid premises.

    Transactions involving the bringing of liquors into the United 
States from Puerto Rico by proprietors of distilled spirits plants in 
the United States qualified under the provisions of this chapter shall 
be recorded and reported

[[Page 757]]

in accordance with the regulations governing the operations of such 
premises in the United States.

[T.D. 6402, 24 FR 6090, July 30, 1959. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-198, 50 FR 8551, Mar. 1, 1985]



Sec.  26.164a  Package gauge record.

    When required in this part, with respect to Puerto Rican spirits, a 
package gauge record shall be prepared to show:
    (a) The date prepared;
    (b) The related transaction form and its serial number;
    (c) The producer or rectifier (processor) of the spirits, and his 
name, address, and plant registration number; and
    (d) For each package, the:
    (1) Package identification or serial number;
    (2) Kind of spirits;
    (3) Gross weight;
    (4) Tare;
    (5) Net weight;
    (6) Proof gallons; and
    (7) Proof.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8551, Mar. 1, 1985]



Sec.  26.165  Certificate of effective tax rate computation.

    (a) Where distilled spirits of Puerto Rican manufacture which 
contain eligible wine or eligible flavors are to be tax determined for 
shipment to the United States or are to be shipped to the United States 
without payment of tax for transfer from customs custody to TTB bond, 
the consignor shall prepare a certificate of effective tax rate 
computation showing the:
    (1) The serial number of TTB Form 5110.31 or 5110.51;
    (2) Elements necessary to compute the effective tax rate in 
accordance with Sec.  26.79a as follows--
    (i) Proof gallons of distilled spirits (exclusive of distilled 
spirits derived from eligible flavors);
    (ii) Wine gallons of each eligible wine and the percentage of 
alcohol by volume of each; and
    (iii) Proof gallons of distilled spirits derived from each eligible 
flavor;
    (3) Date of the statement of eligibility for each eligible flavor 
(see Sec.  26.50a).
    (4) Effective tax rate applied to the product.
    (5) Signature and title of the consignor.
    (b) If the spirits are tax determined for shipment to the United 
States, the proprietor shall retain the certificate for a period of not 
less than three years after the last tax determination to which the 
certificate is applicable. If the spirits are shipped to the United 
States for transfer from Customs custody to the bonded premises of a 
distilled spirits plant, the proprietor shall forward the original to 
the consignee distilled spirits plant in the United States and retain a 
copy for his files.

(Approved by Office of Management and Budget under control number 1512-
0203)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1366, as amended (26 U.S.C. 5232); 
Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18067, Apr. 30, 1990. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



   Subpart I_Claims for Drawback on Eligible Articles From Puerto Rico

    Source: T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, unless otherwise 
noted.



Sec.  26.170  Drawback of tax.

    Any person who brings eligible articles into the United States from 
Puerto Rico may claim drawback of the distilled spirits excise taxes 
paid on such articles as provided in this subpart.



Sec.  26.171  Special tax.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, any person filing claim for drawback of tax on eligible 
articles brought into the United States from Puerto Rico shall pay 
special tax as required by 26 U.S.C. 5131. For purposes of special tax, 
subparts C and D of part 17 of this chapter shall apply as if the use 
and tax determination occurred in the United States at the time the 
article was brought into the United States and, each business location 
from which entry of eligible articles is caused or

[[Page 758]]

effected shall be treated as a place of manufacture. If special tax is 
paid for any such business location under part 197 of this chapter, as a 
place where nonbeverage products are manufactured for purposes of 
drawback, then no additional special tax need be paid for that location 
under this section.
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, any person described in paragraph (a) of this 
section must register by filing the special tax return on Form 5630.5, 
in accordance with part 17 of this chapter, during the suspension period 
even though the amount of tax due is zero.

[T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF-271, 53 
FR 17559, May 17, 1988; T.D. ATF-379, 61 FR 31427, June 20, 1996; T.D. 
TTB-36, 70 FR 62246, Oct. 31, 2005]



Sec.  26.172  Bonds.

    (a) General. Persons bringing eligible articles into the United 
States from Puerto Rico and intending to file monthly claims for 
drawback under the provisions of this subpart shall obtain a bond on 
Form 5154.3. When the limit of liability under a bond given in less than 
the maximum amount has been reached, further drawback on monthly claims 
may be suspended until a strengthening or superseding bond in a 
sufficient amount has been furnished. For provisions relating to bonding 
requirements, subpart E of part 17 of this chapter is incorporated in 
this part.
    (b) Approval required. No person bringing eligible articles into the 
United States from Puerto Rico may file monthly claims for drawback 
under the provisions of this subpart until a bond on TTB Form 5154.3 has 
been approved.

[T.D. ATF-379, 61 FR 31427, June 20, 1996, as amended by T.D. ATF-451, 
66 FR 21669, May 1, 2001]



Sec.  26.173  Claims for drawback.

    (a) General. Persons bringing eligible articles into the United 
States from Puerto Rico must file claim for drawback on TTB Form 2635 
(5620.8). Upon finding that the claimant has satisfied the requirements 
of this subpart, the appropriate TTB officer must allow the drawback of 
taxes at a rate of $1 less than the lesser of $10.50 a proof gallon or 
the rate specified in 26 U.S.C. 5001(a).
    (b) Information on claims. The claim must set forth the following:
    (1) That the special tax has been paid;
    (2) That the eligible articles brought into the United States on 
which drawback is claimed are fully tax paid or tax-determined;
    (3) That the eligible articles on which drawback is claimed are 
nonbeverage products; and
    (4) That the eligible articles were manufactured in Puerto Rico in 
compliance with an approved formula in accordance with Sec.  26.51.
    (c) Supporting data. Each claim shall be accompanied by supporting 
data as specified in this paragraph. TTB Form 5154.2, Supporting Data 
for Nonbeverage Drawback Claims, may be used, or the claimant may use 
any suitable format that provides the following information:
    (1) The control number of the Special Tax Stamp and the tax year for 
which issued;
    (2) A description of each eligible article as follows:
    (i) Name and type of each product;
    (ii) Name and address of the manufacturer of each product;
    (iii) Formula number;
    (iv) Alcohol content of each product;
    (v) Quantity of each product;
    (vi) Proof gallons of distilled spirits contained in each product;
    (vii) Date of entry of the eligible product into the United States, 
and
    (viii) The serial number of each TTB Form 487-B (5170.7) covering 
such articles shipped to the United States.
    (d) Date of filing claim. Quarterly claims for drawback shall be 
filed within the 6 months next succeeding the quarter in which the 
eligible products covered by the claim were brought into the United 
States. Monthly claims for drawback may be filed at any time after the 
end of the month in which the eligible products covered by the claim 
were brought into the United States, but must be filed not later than 
the close of the sixth month succeeding the

[[Page 759]]

quarter in which the eligible products were brought into the United 
States.

(Approved by the Office of Management and Budget under control number 
1512-0494)

[T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF-271, 53 
FR 17559, May 17, 1988; T.D. ATF-379, 61 FR 31427, June 20, 1996; T.D. 
ATF-451, 66 FR 21669, May 1, 2001. Redesignated and amended by T.D. ATF-
459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.174  Records.

    (a) General. Every person intending to file claim for drawback on 
eligible articles brought into the United States from Puerto Rico shall 
keep permanent records of the data elements required by this section. 
Such records shall be maintained at the business premises for which the 
claim is filed and shall be available for inspection by any appropriate 
TTB officer during business hours.
    (b) Details of records. Each person intending to claim drawback on 
eligible articles brought into the United States shall maintain 
permanent records showing the following data:
    (1) The name, description, quantity, and formula number of each such 
article.
    (2) The alcohol content of each such article.
    (3) Name and address of the manufacturer and shipper, and date of 
entry into the United States.
    (4) Evidence of taxpayment of distilled spirits in accordance with 
paragraph (c) of this section.
    (c) Evidence of taxpayment of distilled spirits. All shipments of 
eligible articles from Puerto Rico to the United States shall be 
supported by the vendor's commercial invoice which must bear a 
certification as to taxpayment by the person who determined or paid the 
tax, and include the following information:
    (1) The name and address of vendor;
    (2) The number of the applicable invoice;
    (3) The serial or package identification number of the container;
    (4) Name, type, and formula number of the product;
    (5) The kind of spirits, proof, and proof gallons in the container; 
and
    (6) The serial number of each Form 487-B (5170.7) covering such 
articles shipped to the United States.
    (d) Form of record. No particular form of record is prescribed, but 
the data required to be shown shall be readily ascertainable from the 
records kept by the drawback claimant.
    (e) Retention of records. Each drawback claimant shall retain for a 
period of not less than three years all records required by this 
subpart, all commercial invoices or shipping documents, and all bills of 
lading received evidencing receipt and tax determination of the spirits. 
In addition, a copy of each approved formula returned to the 
manufacturer of eligible articles shall be retained for not less than 
three years from the date he files his last claim for drawback under the 
formula. The records, forms, and formulas shall be readily available 
during regular business hours for examination by appropriate TTB 
officers.

(Approved by the Office of Management and Budget under control number 
1512-0494)

[T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF-451, 66 
FR 21669, May 1, 2001]



    Subpart Ia_Shipment of Denatured Spirits and Products Made With 
         Denatured Spirits to the United States From Puerto Rico

    Source: T.D. ATF-199, 50 FR 9198, Mar. 1, 1985, unless otherwise 
noted. Redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001.



Sec.  26.191  Notice of shipment.

    At least 5 business days before shipment, each proprietor of a 
distilled spirits plant in Puerto Rico who intends to ship denatured 
spirits to the United States in containers larger than 5 gallons, and 
each person in Puerto Rico who intends to ship products made with 
denatured spirits to the United States in containers larger than 5 
gallons shall notify the chemist of

[[Page 760]]

the Treasury of Puerto Rico of the intent to ship.

(Approved by the Office of Management and Budget under control number 
1512-0336)

[T.D. ATF-199, 50 FR 9198, Mar. 1, 1985, T.D. ATF-199, 50 FR 20099, May 
14, 1985]



Sec.  26.192  Samples and analysis.

    The chemist of the Treasury of Puerto Rico may take samples of the 
product to be shipped in order to determine that it is eligible for tax-
free status.



Sec.  26.193  Notification of tax liability.

    (a) If the chemist of the Treasury of Puerto Rico finds that 
denatured spirits or products made with denatured spirits are not 
eligible for tax-free shipment, before the shipment is made, the chemist 
will immediately notify the shipper that the article is subject to tax, 
payable in accordance with Sec. Sec.  26.107 through 26.110.
    (b) If the chemist of the Treasury of Puerto Rico finds that 
denatured spirits or products made with denatured spirits are not 
eligible for tax-free shipment, after the shipment is made, the chemist 
will immediately notify the shipper that the tax shall be paid 
immediately in accordance with Sec.  26.113. The chemist will also 
notify the appropriate TTB officer.

[T.D. ATF-199, 50 FR 9198, Mar. 1, 1985, as amended by T.D. ATF-451, 66 
FR 21670, May 1, 2001. Redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38552, July 25, 2001]



Sec.  26.194  Detention of articles.

    (a) Upon receiving a notification in accordance with Sec.  
26.193(b), the appropriate TTB officer will detain the article in 
accordance with part 20 of this chapter or seize the article in 
accordance with part 72 of this chapter.
    (b) After the shipper furnishes proof that the tax was paid in 
accordance with Sec.  26.113, the appropriate TTB officer will release 
the article to the consignee.

[T.D. ATF-199, 50 FR 9198, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Subpart Ib_Shipment of Bulk Distilled Spirits From Puerto Rico, Without 
 Payment of Tax, for Transfer From Customs Custody to Internal Revenue 
                                  Bond

    Authority: Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 
U.S.C. 5232).

    Source: T.D. ATF-62, 44 FR 71714, Dec. 11, 1979, unless otherwise 
noted.



Sec.  26.196  General.

    Under the provisions of this subpart and Sec.  26.86, distilled 
spirits brought into the United States from Puerto Rico in bulk 
containers may be withdrawn by the proprietor of a distilled spirits 
plant from customs custody and transferred in such bulk containers or by 
pipeline to the bonded premises of his plant, without payment of the 
internal revenue tax, if any, imposed on such spirits by 26 U.S.C. 7652. 
Such spirits so withdrawn and transferred to a distilled spirits plant 
(a) may be redistilled or denatured only if of 185 degrees or more of 
proof; and (b) may be withdrawn from internal revenue bond for any 
purpose authorized by 26 U.S.C. chapter 51, in the same manner as 
domestic distilled spirits. Spirits transferred from customs custody to 
the bonded premises of a distilled spirits plant under the provisions of 
this subpart shall be received and stored thereat, and withdrawn or 
transferred therefrom, subject to applicable provisions of part 19 of 
this chapter. The person operating the bonded premises of the distilled 
spirits plant to which spirits are transferred under the provisions of 
this subpart shall become liable for the tax on distilled spirits 
withdrawn from customs custody under 26 U.S.C. 5232, upon release of the 
spirits from customs custody and the person bringing the spirits into 
the United States shall thereupon be relieved of liability for the tax.

[ T.D. ATF-62, 44 FR 71714, Dec. 11, 1979. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.197  Furnishing formula to consignee.

    Prior to the first shipment, the person shipping the spirits to the 
United

[[Page 761]]

States shall furnish a reproduced copy of the approved formula covering 
such spirits to the appropriate TTB officer, and to the proprietor of 
each distilled spirits plant to receive the spirits.

(Approved by the Office of Management and Budget under control number 
1512-0204)

[T.D. ATF-198, 50 FR 8551, Mar. 1, 1985, as amended by T.D. ATF-451, 66 
FR 21670, May 1, 2001]



Sec.  26.198  [Reserved]



Sec.  26.199  Application and permit to ship, TTB Form 5110.31.

    Before spirits of Puerto Rican manufacture may be shipped to the 
United States without payment of tax for withdrawal from customs custody 
and transfer to internal revenue bond, an application by the consignor 
on TTB Form 5110.31 for permit to ship must be approved by the 
Secretary. All copies of the application (original and five copies) 
shall be delivered to the revenue agent.



Sec.  26.199a  Action by revenue agent.

    (a) Gauge. Puerto Rican spirits to be withdrawn for shipment to the 
United States as provided in this subpart shall be gauged by the revenue 
agent prior to withdrawal from the consignor premises. The revenue agent 
shall record the quantity and proof of the spirits gauged on TTB Form 
5110.31. If the spirits are in packages, the revenue agent shall prepare 
in sextuplicate a package gauge record according to Sec.  26.164a, 
attach the package gauge record to TTB Form 5110.31, and dispose of the 
form (and any attachments) according to the instructions thereon.
    (b) Sealing bulk conveyances. When a shipment is made in a tank, 
van, or other bulk conveyance (other than barrels, drums, or similar 
packages that are not containerized), all openings affording access to 
the spirits shall be sealed by the Puerto Rican revenue agent is such 
manner as will prevent unauthorized removal of spirits without 
detection.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8551, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.199b  Issuance and disposition of permit.

    When the Secretary receives an application on TTB Form 5110.31 and 
he finds that the applicant is in compliance with law and regulations, 
he will execute the permit to ship on all copies of TTB Form 5110.31, 
retain one copy, and any accompanying package gauge record as provided 
in Sec.  26.164a, and return the remaining copies to the consignor who 
shall distribute them in accordance with the instructions on TTB Form 
5110.31.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38551, July 25, 2001]



Sec.  26.199c  Action by carrier.

    The carrier of the spirits specified on the TTB Form 5110.31 shall, 
at the time of unlading at the port of arrival in the United States, 
segregate and arrange the containers of spirits of convenient customs 
examination and shall assume any expense incurred in connection 
therewith.



Sec.  26.199d  Customs inspection and release.

    On receipt of a properly executed TTB Form 5110.31 from the 
consignor, the customs officer at the port of arrival in the United 
States shall inspect the corresponding shipment of spirits:
    (a) If a shipment is in a bulk conveyance, and:
    (1) The seals are intact, he shall release the shipment; or
    (2) If the seals are broken, he shall, before release of the 
spirits, affix customs seals.
    (b) If a shipment in packages does not arrive in a sealed 
conveyance, the packages shall be inspected, and if it appears that any 
package has sustained a loss, the package shall be weighed and its new 
gross weight shall be entered in contrasting color on the package gauge 
record attached to the related TTB Form 5110.31. The serial numbers of 
any seals affixed by the customs officers shall be reported on TTB Form 
5110.31 under remarks with an explanation and description of any 
evidence of loss. After completing his

[[Page 762]]

inspection, the customs officer shall execute his certificate on each 
copy of TTB Form 5110.31 and show thereon any exceptions found at the 
time of his release for transfer of the spirits to internal revenue 
bond. Missing packages should be reported separately from packages which 
have sustained losses. The customs officer shall then release the 
spirits to the consignee's representative and distribute all forms in 
accordance with the instructions on TTB Form 5110.31.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985]



Sec.  26.199e  [Reserved]



Sec.  26.199f  Consignee premises.

    (a) General. When Puerto Rican spirits are received from customs 
custody under the provisions of this subpart, the consignee proprietor 
shall execute the certificate of receipt on TTB Form 5110.31 and examine 
all containers for evidence of loss. If it appears that spirits were 
lost by theft or unusual event, the proprietor shall determine the 
quantity of spirits lost and report the loss according to 27 CFR 19.562.
    (b) Packages. Packages shall be received on bonded premises by the 
proprietor on the basis of the most recent official gauge.
    (c) Distribution of forms. The proprietor shall keep and send copies 
according the instructions on the form.

(Approved by the Office of Management and Budget under control numbers 
1512-0200 and 1512-0250)

[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985, as amended by T.D. ATF-451, 66 
FR 21670, May 1, 2001]



Subpart J_Products Coming Into the United States From the Virgin Islands



Sec.  26.200  Taxable status.

    (a) Liquors coming into the United States from the Virgin Islands, 
except as provided in Sec.  26.201, are subject to a tax equal to the 
internal revenue tax imposed upon the production in the United States of 
like liquors. Articles coming into the United States from the Virgin 
Islands, except as provided in Sec.  26.201, are subject to tax on the 
liquors contained therein at the rates imposed in the United States on 
like liquors of domestic production.
    (b) The excise taxes collected on distilled spirits and articles 
containing distilled spirits shall be deposited into the Treasury of the 
Virgin Islands only if at least 92 percent of the alcoholic content of 
such product is rum. The amount deposited into the Treasury of the 
Virgin Islands shall not exceed the lesser of $10.50, or the rate 
imposed by 26 U.S.C. 5001(a)(1) (including adjustments to the effective 
tax rate under 26 U.S.C. 5010), on each proof gallon of such distilled 
spirits or article containing distilled spirits coming into the United 
States. Such excise tax payments to the Treasury of the Virgin Islands 
will be reduced by one percent and the estimated amount of refunds or 
credits, and may be further reduced by certain amounts deposited to the 
U.S. Treasury as miscellaneous receipts. The moneys so transferred and 
paid over shall constitute a separate fund in the Treasury of the Virgin 
Islands, and may be expended as the Virgin Islands legislature may 
determine.
    (c) Except for products described in 26 U.S.C. 7652(c), no excise 
taxes shall be deposited into the Treasury of the Virgin Islands if an 
excise tax subsidy is provided by the Virgin Islands that is of a kind 
different from, or in an amount per value or volume of production 
greater than, any subsidy offered by the Virgin Islands to industries 
manufacturing products not subject to Federal excise tax.

(Sec. 2682, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 7652))

[T.D. ATF-175, 49 FR 20804, May 16, 1984, as amended by T.D. ATF-206, 50 
FR 15888, Apr. 23, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38552, July 25, 2001]



Sec.  26.201  Products exempt from tax.

    (a) General. Industrial spirits, denatured spirits, and products 
made with denatured spirits in the Virgin Islands may be brought into 
the United States without incurring tax liability imposed by 26 U.S.C. 
5001 or 7652.
    (b) Industrial spirits. A distiller of industrial spirits who 
qualifies under regulations issued by the Governor of the

[[Page 763]]

Virgin Islands may ship industrial spirits to a tax-free alcohol user in 
the United States who holds a permit under part 22 of this chapter. 
Shipments shall be made in accordance with the requirements of subpart O 
of this part.
    (c) Denatured spirits. A distiller who qualifies under the 
regulations issued by the Governor of the Virgin Islands and who 
denatures spirits in accordance with part 21 of this chapter may ship 
(1) completely denatured alcohol to anyone in the United States, and/or 
(2) specially denatured spirits to a dealer or user of specially 
denatured spirits in the United States or Puerto Rico who holds a permit 
under part 20 of this chapter. Shipments shall be made in accordance 
with the requirements of subpart O of this part.
    (d) Products made with denatured spirits. A person in the Virgin 
Islands who manufactures products with completely denatured alcohol or 
specially denatured spirits in accordance with the requirements of part 
20 of this chapter and regulations issued by the Governor of the Virgin 
Islands may ship those products to the United States in accordance with 
the requirements of subpart O of this part.

[T.D. ATF-199, 50 FR 9199, Mar. 6, 1985]



Sec.  26.201a  Production in the Virgin Islands for tax-free shipment to the United States.

    (a) Authority of the Governor to issue regulations. The Governor of 
the Virgin Islands, or his duly authorized agents, are authorized to 
issue or adopt such regulations (and to approve such bonds, and to 
issue, suspend, or revoke such permits, as may be required by such 
regulations) as are necessary to insure that:
    (1) Industrial spirits produced or manufactured in the Virgin 
Islands and shipped to the United States free of tax for the purposes 
authorized in 26 U.S.C. 5214(a) (2) and (3);
    (2) Denatured spirits manufactured in the Virgin Islands for 
shipment to the United States free of tax, and
    (3) Products manufactured in the Virgin Islands with denatured 
spirits, for shipment to the United States free of tax, conform in all 
respects to the requirements of law and this chapter imposed on like 
products of domestic manufacture.
    (b) Law and regulations applicable. Regulations having been issued 
by the Governor of the Virgin Islands and concurred in by the Secretary 
of the Treasury of the United States to govern the production, 
warehousing, and denaturation of spirits and the use of denatured 
spirits in the manufacture of products for shipment to the United States 
free of tax, such regulations are applicable in the Virgin Islands and 
the Virgin Islands are hereby exempted from
    (1) All provisions of 26 U.S.C. chapter 51, with the exception of 26 
U.S.C. 5314(b) and 5687; and
    (2) The provisions of this chapter in respect of the production, 
bonded warehousing, denaturation, and withdrawal of distilled spirits 
and the use of denatured spirits in the United States:

Provided, That such exemption shall be effective only to the extent that 
any amendments or revisions of the regulations issued by the Governor of 
the Virgin Islands, or his duly authorized agents, are concurred in by 
the Secretary of the Treasury of the United States or his delegate. 
Otherwise, all provisions of law as provided in 26 U.S.C. 5314(b), and 
the provisions of this chapter in respect of the production, bonded 
warehousing, denaturation, and withdrawal from bond of distilled spirits 
and denatured spirits and the use of denatured spirits in the 
manufacture of products shall extend to and apply in the Virgin Islands 
(i) in respect of the production, bonded warehousing, and withdrawal of 
spirits for shipment to the United States free of tax for the purposes 
authorized in 26 U.S.C. 5214(a) (2) and (3), and (ii) in respect of the 
production, bonded warehousing, and denaturation of spirits, and to the 
withdrawal and use of denatured spirits, where the denatured spirits or 
products containing denatured spirits are to be shipped to the United 
States free of tax.

[T.D. 6402, 24 FR 6090, July 30, 1959. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55853, Sept. 28, 1979; T.D. 
ATF-198, 50 FR 8552, Mar. 1, 1985]

[[Page 764]]



Sec.  26.201b  [Reserved]



Sec.  26.201c  Shipments of bulk distilled spirits to the United States without payment of tax.

    Bulk distilled spirits may be brought into the United States from 
the Virgin Islands without payment of tax for transfer from customs 
custody to the bonded premises of a distilled spirits plant qualified 
under part 19 of this chapter. Such shipments are subject to the 
provisions of subpart Oa.

[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979]



Sec.  26.202  Requirements of the Federal Alcohol Administration Act.

    Every person, except an agency of a State or a political subdivision 
thereof or any officer or employee of any such agency, bringing liquors 
into the United States from the Virgin Islands for nonindustrial use 
must obtain an importer's basic permit therefor and file with the 
district director of customs at the port of entry a certified or 
photostatic copy thereof, and every person and any agency of a State or 
political subdivision thereof or any officer or employee of such agency, 
bringing liquors into the United States from the Virgin Islands for 
nonindustrial use must file with the district director of customs at the 
port of entry a certificate of label approval, in accordance with the 
requirements of the Federal Alcohol Administration Act and regulations 
issued pursuant thereto. Tourists bringing liquors into the United 
States for personal or other noncommercial use are not subject to the 
provisions of the Federal Alcohol Administration Act or regulations 
issued pursuant thereto. (Parts 1, 4, 5, and 7 of this chapter)

(Secs. 3, 5, 49 Stat. 978, as amended, 981, as amended; 27 U.S.C. 203, 
205)

[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
26.202, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec.  26.203  Containers of 1 gallon (3.785 liters) or less.

    Containers of distilled spirits brought into the United States from 
the Virgin Islands, having a capacity of not more than 1 gallon (3.785 
liters), shall conform to the requirements of subpart P of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374 (26 U.S.C. 5301))

[T.D. ATF-34, 41 FR 46864, Oct. 26, 1976]



Sec.  26.203a  Containers in excess of 1 gallon (3.785 liters).

    Containers of distilled spirits brought into the United States from 
the Virgin Islands, having a capacity in excess of 1 gallon (3.785 
liters), are required to be marked in accordance with customs 
regulations (19 CFR chapter I).

[T.D. 6695, 28 FR 12936, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-34, 41 FR 46864, Oct. 26, 1976; T.D. 
ATF-206, 50 FR 23955, June 7, 1985]



Sec.  26.204  Regauge.

    Distilled spirits withdrawn from insular bonded warehouses for 
shipment to the United States may be gauged at the time of withdrawal by 
an insular gauger. When such gauges are made, a record of gauge shall be 
prepared by the insular gauger showing the name of the distiller; and 
the serial number, the proof of the spirits, and the wine and proof 
gallon contents of each package gauged. The report of gauge shall be 
attached to the certificate prescribed in Sec.  26.205.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8552, Mar. 1 1985. Redesignated and amended by T.D. 
ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.204a  Verification of eligible wines and eligible flavors.

    (a) Any person who, after December 1, 1990, brings into the United 
States from the Virgin Islands any distilled spirits on which the tax is 
to be paid or determined at an effective tax rate based in part on the 
alcohol content derived from eligible flavors or eligible wines shall, 
before the first tax determination at that rate, request and receive a 
statement of eligibility for each

[[Page 765]]

wine or flavor to be used in the computation of the effective tax rate.
    (b) To receive a statement of eligibility, the person bringing in 
the distilled spirits shall submit to the TTB Alcohol and Tobacco 
Laboratory, 6000 Ammendale Road, Ammendale, MD 20705, the following:
    (1) An 8-ounce sample of each distilled spirits, wine and flavor 
used in the product;
    (2) A statement of composition of each flavor, listing--
    (i) The name and percentage of alcohol by volume of the flavor; and
    (ii) The name and quantity of each ingredient used in the 
manufacture of the flavor; and
    (3) A statement of the kind and alcoholic content of each wine.

(Approved by Office of Management and Budget under control number 1512-
0352)

(Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 
U.S.C. 7652); Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 
U.S.C. 5001); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 
U.S.C. 5010))

[T.D. ATF-297, 55 FR 18067, Apr. 30, 1990,as amended by T.D. TTB-44, 71 
FR 16944, Apr. 4, 2006]



Sec.  26.205  Certificate.

    (a) Every person bringing liquors or articles under this part into 
the United States from the Virgin Islands, except tourists, shall obtain 
a certificate in the English language from the manufacturer for each 
shipment showing the following information:
    (1) The name and address of the consignee.
    (2) The kind and brand name.
    (3) The quantity thereof as follows--
    (i) If distilled spirits, the proof gallons or liters and degree of 
proof;
    (ii) If wine, the taxable grade and wine gallons;
    (iii) If beer, the gallons (liquid measure) and the percentage of 
alcohol by volume; and
    (iv) If articles, the kind, quantity, and proof of the liquors used 
therein.
    (4) For liquors manufactured under a formula--
    (i) The number and date of the approved formula;
    (ii) A declaration that the liquors have been manufactured in 
accordance with the approved formula; and
    (iii) The name and address of the person filing the formula.
    (5) The name and address of the producer.
    (6) For liquors and articles containing liquors produced outside of 
the Virgin Islands, the country of origin for each such liquor.
    (7) For distilled spirits, a certification by the insular gauger as 
to whether they were regauged when withdrawn from the insular bonded 
warehouse and, if regauged, whether they were at the time of withdrawal 
at the proof indicated on the attached record of gauge.
    (8) For distilled spirits which contain eligible wine or eligible 
flavors, the effective tax rate applied to the product and the elements 
necessary to compute the effective tax rate in accordance with Sec.  
26.262a as follows--
    (i) Proof gallons of distilled spirits (exclusive of distilled 
spirits derived from eligible flavors);
    (ii) Wine gallons of each eligible wine and the percentage of 
alcohol by volume of each;
    (iii) Proof gallons of distilled spirits derived from eligible 
flavors; and
    (iv) On or after December 1, 1990, the name of the manufacturer, 
formula number from TTB F 5530.5 (1678) or 5150.19 and date of approval 
or the date of the statement of eligibility for each eligible flavor 
(See Sec.  26.204a); and
    (v) After December 1, 1990, the date of the statement of eligibility 
for each eligible wine.
    (b) The person bringing the liquors or articles into the United 
States shall file the certificate and record of gauge with the district 
director of customs at the port of entry, at the time of entry summary, 
as provided in Sec. Sec.  26.260 and 26.302.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1366, as amended (26 U.S.C. 5232); 
Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18067, Apr. 30, 1990. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.206  Marking packages and cases.

    The distiller, rectifier, or bottler shall serially number each 
case, barrel, cask, or similar container of distilled

[[Page 766]]

spirits filled for shipment to the United States. In addition to the 
serial number of the container, the distiller, rectifier, or bottler 
shall plainly print, stamp, or stencil with durable coloring material, 
in letters and figures not less than one-half inch high, on the head of 
each barrel, cask or similar container or on one side of each case, as 
follows:
    (a) The name of the manufacturer;
    (b) The brand name and kind of liquor; and
    (c) The wine and proof gallon contents; or, for bottles filed 
according to the metric standards of fill prescribed by Sec.  5.47a, of 
this chapter, the contents in liters and the proof of the spirits.

[T.D. ATF-43, 42 FR 30836, June 17, 1977]



Sec.  26.207  Destruction of marks and brands.

    The marks, brands, and serial numbers required by this part to be 
placed on barrels, casks, or similar containers, or cases, shall not be 
removed, obscured or obliterated before the contents thereof have been 
removed.

[T.D. ATF-198, 50 FR 8552, Mar. 1, 1985]



Sec.  26.209  Samples.

    The appropriate TTB officer may require samples of liquors and 
articles to be submitted whenever desired for laboratory analyses in 
order to determine the rate of tax applicable thereto.

[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2250, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

                      Special (Occupational) Taxes



Sec.  26.210  Liquor dealer's special taxes.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, every person bringing liquors into the United States from the 
Virgin Islands, who sells, or offers for sale, such liquors shall file 
Form 5630.5 with TTB in accordance with the instruction on the form, and 
pay special occupational tax as a wholesale dealer in liquor or as a 
retail dealer in liquor, in accordance with the laws and regulations 
governing the payment of such special taxes (part 31 of this chapter).
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, every person described in paragraph (a) of 
this section must register by filing the special tax return on Form 
5630.5, in accordance with part 31 of this chapter, during the 
suspension period even though the amount of tax due is zero.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340 as amended, 1343 as amended, 
1344 as amended (26 U.S.C. 5111, 5112, 5121, 5122))

[T.D. ATF-70, 45 FR 33981, May, 21, 1980, as amended by T.D. ATF-251, 52 
FR 19339, May 22, 1987; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. 
TTB-36, 70 FR 62246, Oct. 31, 2005]



Sec.  26.211  Warehouse receipts covering distilled spirits.

    The sale of warehouse receipts for distilled spirits is equivalent 
to the sale of distilled spirits. Accordingly, except during the 
suspension period described in Sec.  26.210(b), every person bringing 
distilled spirits into the United States from the Virgin Islands, who 
sells, or offers for sale, warehouse receipts for distilled spirits 
stored in warehouses, or elsewhere, incurs liability to special tax as a 
dealer in liquors at the place where such warehouse receipts are sold, 
or offered for sale, and must file return and pay occupational tax as 
provided in Sec.  26.210(a). During the suspension period, every such 
person must register as provided in Sec.  26.210(b).

(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)

[T.D. TTB-36, 70 FR 62247, Oct. 31, 2005]



         Subpart K_Formulas for Products From the Virgin Islands

    Source: T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, unless otherwise 
noted.



Sec.  26.220  Formulas for liquors.

    (a) Distilled spirits products. Persons in the Virgin Islands who 
ship distilled spirits beverage products to the United States shall 
comply with the formula requirements of part 5 of this chapter. If any 
product contains liquors made outside of Virgin Islands, the country of 
origin for each such liquor shall be

[[Page 767]]

stated on the formula. All formulas required by this paragraph shall be 
submitted on TTB Form 5110.38, in accordance with Sec.  26.224.
    (b) Wine. Persons in the Virgin Islands who ship wine to the United 
States shall comply with the formula requirements of part 240 of this 
chapter. If any wines contains liquors made outside of the Virgin 
Islands, the country of origin for each such liquor shall be stated on 
the formula. All formulas required by this paragraph shall be submitted 
on TTB Form 698 Supplemental, in accordance with Sec.  26.224.

[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, as amended by T.D. ATF-198, 50 
FR 8552, Mar. 1, 1985. Redesignated and amended by T.D. ATF-459, 66 FR 
38550, 38552, July 25, 2001]



Sec.  26.221  Formulas for articles, eligible articles and products manufactured with denatured spirits.

    (a) Formulas for articles and eligible articles. Formulas for 
articles made with distilled spirits must show the quantity and proof of 
the distilled spirits used, and the percentage of alcohol by volume 
contained in the finished product. Formulas for articles made with beer 
or wine must show the kind and quantity thereof (liquid measure), and 
the percent of alcohol by volume of such beer or wine. Formulas and 
samples for eligible articles are required in accordance with subpart F 
of part 17 of this chapter.
    (b) Formulas for products manufactured with denatured spirits. 
Products manufactured with denatured spirits shall be manufactured in 
accordance with the formula requirements of part 20 of this chapter for 
similar products made in the United States.
    (1) Products may be made with completely denatured alcohol for sale 
under brand names under part 20 of this chapter without obtaining an 
approved formula. If ingredients are added in sufficient quantities to 
materially change the composition and character of the completely 
denatured alcohol, the product is not classified as completely denatured 
alcohol and may not be marked, branded, or sold as completely denatured 
alcohol.
    (2) Products made with specially denatured spirits shall be made in 
accordance with (i) a general-use formula approved as provided in part 
20 of this chapter, or (ii) an approved formula on Form 5150.19, or 
previously approved on TTB Form 1479-A or 27-B Supplemental.
    (c) Formulas required. Formulas required by this section shall be 
submitted on Form 5150.19, except that formulas for eligible articles 
shall be submitted on Form 5154.1 (formerly 1678). Formulas shall be 
submitted in accordance with Sec.  26.224. Any formula for an eligible 
article approved on Form 5150.19 prior to October 23, 1986, shall 
continue to be valid until revoked or voluntarily surrendered. Any 
person holding such a formula is not required to submit a new formula.

(Approved by the Office of Mangement and Budget under control number 
1512-0494)

[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, as amended by T.D. ATF-199, 50 
FR 9199, Mar. 6, 1985; T.D. ATF-263, 52 FR 46595, Dec. 9, 1987; T.D. 
ATF-379, 61 FR 31427, June 20, 1996. Redesignated and amended by T.D. 
ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.222  Still wines containing carbon dioxide.

    (a) General. Still wines may contain not more than 0.392 gram of 
carbon dioxide per 100 milliliters of wine; except that a tolerance to 
this maximum limitation, not to exceed 0.009 gram of carbon dioxide per 
100 milliliters of wine, will be allowed where the amount of carbon 
dioxide in excess of 0.392 gram per 100 milliliters of wine was due to 
mechanical variations which could not be completely controlled under 
good commercial practices. Such tolerance will not be allowed where it 
is found that the limitation of 0.392 gram of carbon dioxide per 100 
milliliters of wine is continuously or intentionally exceeded, or where 
the variation results from the use of methods or equipment not in accord 
with good commercial practices.
    (b) Notice required. Proprietors intending to add carbon dioxide to, 
or retain carbon dioxide in, still wines to be shipped to the United 
States shall submit a notice to the appropriate TTB officer. The notice 
shall show the name and address of the proprietor and shall identify the 
method or process, the kinds (class and type) of wine, and the

[[Page 768]]

type of equipment to be used. A corrected notice shall be filed if there 
is any change (except for minor changes) in the information contained in 
the notice.
    (c) Filing and disposition of notice. The notice required by 
paragraph (b) of this section shall be submitted in triplicate to the 
appropriate TTB officer, who shall retain one copy, forward one copy to 
the Commissioner of Finance of the Virgin Islands, and return one copy 
to the proprietor. The proprietor shall keep the notice available for 
examination by insular agents.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C 5041))

[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979, as amended by T.D. ATF-172, 49 
FR 14943, Apr. 16, 1984]



Sec.  26.223  Changes of formulas.

    Any change in the ingredients composing a product covered by an 
approved formula will necessitate the submission of a new formula.



Sec.  26.224  Filing and disposition of formulas.

    Formulas required by this subpart must be submitted, and disposed 
of, in accordance with the instructions on the prescribed TTB form. The 
applicant shall maintain copies of approved formulas available for 
examination by insular agents.

[T.D. ATF-451, 66 FR 21670, May 1, 2001]



Sec.  26.225  Previously approved formulas.

    Any formula approved on Form 27-B Supplemental prior to January 1, 
1980, shall continue to be valid until revoked or voluntarily 
surrendered. Any person holding such a formula is not required to submit 
a new formula. If an approved formula on Form 27-B Supplemental 
indicates that carbon dioxide will be added to, or retained in, still 
wine, the notice requirement of Sec.  26.222 shall not apply.

[T.D. ATF-62, 44 FR 71715, Dec. 11, 1979. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



    Subpart L_Closures for Distilled Spirits From the Virgin Islands

                                 General



Sec.  26.230  Containers of distilled spirits to bear closures.

    Containers of 1 gallon (3.785 liters) or less of distilled spirits, 
upon which all Federal internal revenue taxes have been paid or 
determined under provisions of this part, shall have closures or other 
devices affixed in accordance with the provisions of this part.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23955, June 7, 1985]



Sec.  26.231  Affixing closures.

    Closures or other devices shall be securely affixed to containers 
having capacity of 1 gallon (3.785 liters) or less so as to leave a 
portion remaining on the container when it is opened. In addition, the 
closures or other devices shall be constructed in such a manner as to 
require that they be broken to gain access to the contents of the 
containers.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23955, June 7, 1985. Redesignated by T.D. ATF-459, 
66 FR 38550, July 25, 2001]



      Subpart M_Procedure at Port of Entry From the Virgin Islands



Sec.  26.260  Certificate.

    Persons (except tourists) bringing liquors or articles from the 
Virgin Islands into the United States shall file the certificate 
provided for in Sec.  26.205 with the district director of customs at 
the port of entry in the United States.

[T.D. ATF-62, 44 FR 71716, Dec. 11, 1979. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.261  Action by district director of customs.

    The district director of customs will direct the proper customs 
gauger to determine the taxable quantity of liquors contained in the 
consignment by regauge or inspection and report the result thereof to 
the district director of customs. Upon receipt of such report

[[Page 769]]

the district director of customs will refer to the certificate required 
by Sec.  26.205 covering the product to determine the rate of internal 
revenue tax applicable thereto. When the rate of tax applicable to the 
product has been ascertained, the tax due on the consignment will be 
determined according to Sec. Sec.  26.262 through 26.265.

[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
26.261, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and on GPO Access.



Sec.  26.262  Determination of tax on distilled spirits.

    (a) If the certificate required by Sec.  26.205 covers distilled 
spirits, and the distilled spirits are not being transferred under 
subparts O or Oa of this part, the tax imposed by 26 U.S.C. 7652 which 
provides for a tax equal to the tax imposed by 26 U.S.C. 5001 will be 
collected on each proof gallon, and fractional part thereof, contained 
in the shipment.
    (b) A credit against the tax imposed on distilled spirits by 26 
U.S.C. 7652 is allowable under 26 U.S.C. 5010 on each proof gallon of 
alcohol derived from eligible wine or from eligible flavors which do not 
exceed 2 \1/2\ percent of the finished product on a proof gallon basis. 
The credit is allowable at the time the tax is payable as if it 
constituted a reduction in the rate of tax.
    (c) Where credit against the tax is desired, the person liable for 
the tax shall establish an effective tax rate in accordance with Sec.  
26.262a. The effective tax rate established will be applied to each 
withdrawal or other disposition of the distilled spirits within the 
United States.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); 
Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010), Act 
of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 U.S.C. 
7652))

[T.D. ATF-297, 55 FR 18068, Apr. 30, 1990. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.262a  Computation of effective tax rate.

    (a) The proprietor shall compute the effective tax rate for 
distilled spirits containing eligible wine or eligible flavors as the 
ratio of the numerator and denominator as follows:
    (1) The numerator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product 
(exclusive of distilled spirits derived from eligible flavors), 
multipled by the tax rate prescribed by 26 U.S.C. 5001;
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by the tax rate prescribed by 26 U.S.C. 5041(b) (1), (2), or 
(3), as applicable; and
    (iii) The proof gallons of all distilled spirits derived from 
eligible flavors used in the product, multiplied by the tax rate 
prescribed by 26 U.S.C. 5001, but only to the extent that such distilled 
spirits exceed 2\1/2\% of the denominator prescribed in paragraph (a)(2) 
of this section.
    (2) The denominator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product, 
including distilled spirits derived from eligible flavors; and
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by twice the percentage of alcohol by volume of each, divided 
by 100.
    (b) In determining the effective tax rate, quantities of distilled 
spirits, eligible wine, and eligible flavors will be expressed to the 
nearest tenth of a proof gallon. The effective tax rate may be rounded 
to as many decimal places as the proprietor deems appropriate, provided 
that, such rate is expressed no less exactly than the rate rounded to 
the nearest whole cent, and the effective tax rates for all products 
will be consistently expressed to the same number of decimal places. In 
such case, if the number is less than five it will be dropped; if it is 
five or over, a unit will be added.
    (c) The following is an example of the use of the formula.
---------------------------------------------------------------------------

    \1\ Proof gallons by which distilled spirits derived from eligible 
flavors exceed 2\1/2\% of the total proof gallons in the batch (100.9-
(2\1/2\%)x3,371.8=16.6).

[[Page 770]]



                              BATCH RECORD
Distilled spirits.........................  2249.1 proof gallons.
Eligible wine (14% alcohol by volume).....  2265.0 wine gallons.
Eligible wine (19% alcohol by volume).....  1020.0 wine gallons.
Eligible flavors..........................  100.9 proof gallons.

                                            [GRAPHIC] [TIFF OMITTED] TC05OC91.032
                                            

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18068, Apr. 30, 1990, as amended by T.D. ATF-307, 
55 FR 52741, Dec. 21, 1990]



Sec.  26.263  Determination of tax on beer.

    If the certificate prescribed in Sec.  26.205 covers beer, the beer 
tax will be collected on the basis of the number of barrels of 31 
gallons each, or fractional parts thereof, contained in the shipment.

(68A Stat. 611, as amended; 26 U.S.C. 5051)

[20 FR 6077, Aug. 20, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 
38552, July 25, 2001]



Sec.  26.264  Determination of tax on wine.

    If the certificate prescribed in Sec.  26.205 covers wine, the wine 
tax will be collected at the rates imposed by section 5041, Internal 
Revenue Code, as amended.

(68A Stat. 609, as amended; 26 U.S.C. 5041)

[20 FR 6077, Aug. 20, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 
38552, July 25, 2001]



Sec.  26.265  Determination of tax on articles.

    Where articles contain distilled spirits, the tax will be collected 
at the rate prescribed by 26 U.S.C. 5001(a)(1) on all alcohol contained 
therein, regardless of the source. Articles containing only wine and/or 
beer will be taxed at the rates prescribed by 26 U.S.C. 5041 and/or 
5051, respectively. The quantities and kinds of liquors will be shown on 
the certificate prescribed in Sec.  26.205.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001, 
5007))

[T.D. ATF-62, 44 FR 71717, Dec. 11, 1979. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.266  Tax payment.

    The internal revenue tax on liquors (except spirits transferred 
under subparts O or Oa of this part) and articles coming into the United 
States from the Virgin Islands shall be paid to the district director of 
customs at the port of entry, as provided by customs regulations. (19 
CFR Ch. I)

[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by 
T.D. ATF-198, 50 FR 8554, Mar. 1, 1985]



Sec.  26.267  Payment of tax by electronic fund transfer.

    (a) Each person bringing liquors and articles into the United States 
from the Virgin Islands who was liable, during a calendar year, for a 
gross amount equal to or exceeding five million dollars in distilled 
spirits taxes combining tax liabilities incurred under this part and 
parts 19 and 27 of this chapter, a gross amount equal to or exceeding 
five million dollars in wine taxes combining tax liabilities incurred 
under

[[Page 771]]

this part and parts 24 and 27 of this chapter, or a gross amount equal 
to or exceeding five million dollars in beer taxes combining tax 
liabilities incurred under this part and parts 25 and 27 of this 
chapter, shall use a commercial bank in making payment by electronic 
fund transfer (EFT), as defined in paragraph (c) of this section, of 
such taxes during the succeeding calendar year. Payment of such taxes by 
cash, check, or money order is not authorized for a person bringing 
liquors and articles into the United States from the Virgin Islands who 
is required, by this section, to make remittances by EFT. For purposes 
of this section, the dollar amount of tax liability is to be summarized 
separately for distilled spirits taxes, wine taxes, or beer taxes, and 
is defined as the gross tax liability on all taxable withdrawals from 
premises in the United States and importations (including products of 
the same tax class brought into the United States from Puerto Rico or 
the Virgin Islands) during the calendar year, without regard to any 
drawbacks, credits, or refunds, for all premises from which such 
activities are conducted.
    (b) For the purposes of this section, a ``person'' includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
person for the purpose of determining who is required to make 
remittances by EFT.
    (c) Electronic fund transfer or EFT means any transfer of funds, 
other than a transaction originated by check, draft, or similar paper 
instrument, which is initiated through an electronic terminal, 
telephonic instrument, or computer of magnetic tape, so as to order, 
instruct, or authorize a financial institution to either debit or credit 
an account, in accordance with procedures established by the U.S. 
Customs Service.
    (d) Each person who is required by this section to make remittances 
by EFT shall make the EFT remittance in accordance with the requirements 
of the U.S. Customs Service.

(Approved by the Office of Management and Budget under Control Number 
1512-0457)

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))

[T.D. ATF-245, 52 FR 532, Jan. 7, 1987, as amended by T.D. ATF-479, 67 
FR 30798, May 8, 2002]



    Subpart N_Records and Reports of Liquors From the Virgin Islands

       Record and Report of Liquors Brought Into the United States



Sec.  26.272  General requirements.

    Except as provided in Sec.  26.273, every person, other than a 
tourist, bringing liquors into the United States from the Virgin Islands 
shall keep such records and render reports of the physical receipt and 
disposition of such liquors as are required to be kept by a wholesale or 
retail dealer, as applicable, under the provisions of part 31 of this 
chapter. Any importer who is responsible for release of the liquors from 
customs custody and who does not take physical possession of the liquors 
shall keep commercial records reflecting such release; such records 
shall identify the kind and quantity of the liquors released, the name 
and address of the person receiving the liquors from customs custody, 
and shall be filed chronologically by release dates. Records and reports 
will not be required under this part with respect of liquors while in 
customs custody.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(72 Stat. 1342, 1345; 26 U.S.C. 5114, 5124)

[T.D. ATF-2, 37 FR 22739, Oct. 21, 1972. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984. 
Redesignated and amended by T.D. ATF-459, 66 FR 38552, July 25, 2001; 
T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]

[[Page 772]]



Sec.  26.273  Proprietors of taxpaid premises.

    Transactions involving the bringing of liquors into the United 
States from the Virgin Islands by proprietors of distilled spirits 
plants in the United States qualified under the provisions of this 
chapter shall be recorded and reported in accordance with the 
regulations governing the operations of such premises in the United 
States.

[T.D. 6478, 25 FR 6203, July 1, 1960. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec.  26.273a  Transfer record.

    The transfer record for Virgin Islands spirits prescribed in Sec.  
26.301 shall show the:
    (a) Date prepared;
    (b) Serial number of the transfer record, beginning with ``1'' each 
January 1;
    (c) Name of the proprietor and distilled spirits plant number to 
which consigned;
    (d) Name and address of the consignor;
    (e) Kind of spirits;
    (f) Name of the producer;
    (g) Age (in years, months and days) of the spirits;
    (h) Proof of the spirits;
    (i) Type and serial number of containers; and
    (j) Proof gallons of spirits in the shipment.

(Approved by the Office of Management and Budget under control number 
1512-0250)

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-198, 50 FR 8554, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.273b  Package gauge record.

    When required in this part with respect to Virgin Islands spirits, a 
package gauge record shall be prepared to show:
    (a) The date prepared;
    (b) The related transaction record and its serial number;
    (c) The producer, his name and address; and
    (d) For each package, the:
    (1) Package identification or serial number;
    (2) Kind of spirits;
    (3) Gross weight;
    (4) Tare;
    (5) Net weight;
    (6) Proof gallons; and
    (7) Proof.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8554, Mar. 1, 1985]

               Filing and Retention of Records and Reports



Sec.  26.275  Filing.

    (a) All records and reports required by this part will be maintained 
separately, by transaction or reporting date, at the importer's place of 
business. The appropriate TTB officer may, pursuant to an application, 
authorize files, or an individual file, to be maintained at another 
business location under the control of the importer, if the alternative 
location does not cause undue inconvenience to appropriate TTB or 
Customs officers desiring to examine the files or delay in the timely 
submission of documents.
    (b) If an importer conducts wholesale operations, one legible copy 
of each required record of receipt and disposition shall be filed not 
later than one business day following the date of transaction.
    (c) If an importer conducts only retail operations, either loose-
leaf or book records may be maintained for the daily receipt of liquors 
which contain all the required information.
    (d) Supporting documents, such as consignors' invoices, delivery 
receipts, bills or lading, etc., or exact copies of the same, may be 
filed in accordance with the importer's regular accounting and 
recordkeeping practices.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended 
(26 U.S.C. 5114, 5555))

[T.D. ATF-116, 47 FR 51573, Nov. 16, 1982, as amended by T.D. ATF-451, 
66 FR 21670, May 1, 2001]



Sec.  26.276  Retention.

    All records required by this part, documents or copies of documents 
supporting these records, and file copies of reports required by this 
part shall be retained for not less than three years,

[[Page 773]]

and during this period shall be available, during business hours, for 
inspection and copying by appropriate TTB or customs officers. 
Furthermore, the appropriate TTB officer may require these records to be 
kept for an additional period of not more than three years in any case 
where he determines retention necessary or advisable. Any records, or 
copies thereof, containing any of the information required by this part 
to be prepared, wherever kept, shall also be made available for 
inspection and copying.

(68A Stat. 731 (26 U.S.C. 6001); Sec. 201, Pub. L. 85-859, 72 Stat. 
1342, 1345, 1348, 1361, 1395 (26 U.S.C. 5114, 5124, 5146, 5207, 5555))

[T.D. ATF-50, 43 FR 20494, May 12, 1978, as amended by T.D. ATF-451, 66 
FR 21670, May 1, 2001]



Sec.  26.277  [Reserved]



   Subpart O_Tax-Free Shipments to the United States From the Virgin 
                                 Islands

    Source: T.D. ATF-199, 50 FR 9199, Mar. 6, 1985, unless otherwise 
noted. Redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001.



Sec.  26.291  General.

    (a) Industrial spirits may be shipped into the United States to the 
holder of a permit under part 22 of this chapter, in accordance with 
Sec.  26.292 through 26.294 and regulations issued by the Governor of 
the Virgin Islands.
    (b)(1) Specially denatured spirits may be shipped into the United 
States to the holder of a permit under part 20 of this chapter, in 
accordance with Sec. Sec.  26.292 through 26.294 and regulations issued 
by the Governor of the Virgin Islands.
    (2) Completely denatured alcohol may be shipped to anyone in the 
United States in accordance with Sec. Sec.  26.295 through 26.296 and 
regulations issued by the Governor of the Virgin Islands.
    (3) Denatured spirits shall be denatured in accordance with part 21 
of this chapter and regulations issued by the Governor of the Virgin 
Islands.
    (c) Products made with denatured spirits may be shipped to anyone in 
the United States in accordance with Sec. Sec.  26.295 through 26.296 
and regulations issued by the Governor of the Virgin Islands. These 
products are also subject to the requirements of Sec.  26.221 of this 
part.

[20 FR 6077, Aug. 20, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and further redesignated and amended by T.D. ATF-459, 66 FR 38550, 
38552, July 25, 2001]

     Shipment of Industrial Spirits and Specially Denatured Spirits



Sec.  26.292  Copy of consignee's permit under part 20 or 22.

    The consignor or consignee shall file a copy of the consignee's 
permit issued under part 20 of this chapter (for shipments of specially 
denatured spirits) or part 22 of this chapter (for shipments of 
industrial spirits) with the district director of customs of the port of 
entry. The copy of the permit shall be adequate evidence that the 
consignee is authorized to enter industrial spirits or specially 
denatured spirits free of tax.



Sec.  26.293  Marks on containers.

    (a) Industrial spirits. The shipper shall mark or label each 
immediate container of industrial spirits with the following 
information:
    (1) The name or trade name of the distiller or shipper;
    (2) The words ``Virgin Islands Industrial Spirits'';
    (3) A package identification number as required by subpart R of part 
19 of this chapter;
    (4) The date filled;
    (5) Proof; and
    (6) Quantity in proof gallons.
    (b) Specially denatured spirits. The shipper shall mark or label 
each immediate container of specially denatured spirits with the 
following information:
    (1) Quantity, in gallons, or in liters and gallons;
    (2) A serial number or package identification number;
    (3) Name and address of shipper;
    (4) The words ``Virgin Islands Specially Denatured Alcohol'' or 
``Virgin Islands Specially Denatured Rum,'' as appropriate;
    (5) Formula number prescribed by part 21 of this chapter;
    (6) Proof, if the spirits were denatured at other than 190 proof;

[[Page 774]]

    (7) Denaturants used, if spirits were denatured under an approved 
formula authorizing a choice of denaturants; and
    (8) Quantity of denaturant used, if the approved formula authorizes 
a choice of quantities of denaturants.



Sec.  26.294  Record of shipment.

    (a) Each shipment of industrial spirits or specially denatured 
spirits from the Virgin Islands to the United States shall be 
accompanied by a record of shipment. The record of shipment shall 
consist of an invoice, bill of lading or similar document which shows 
the following information:
    (1) Consignor's name and address;
    (2) Consignee's name, address, and permit number;
    (3) For each formula of specially denatured spirits--
    (i) The formula number prescribed by part 21 of this chapter,
    (ii) The serial numbers or package identification numbers of 
containers, and
    (iii) The total quantity in wine gallons;
    (4) For industrial spirits--
    (i) The package identification numbers of containers, and
    (ii) The total quantity in proof gallons.
    (b) The record of shipment shall be made available to custom 
officers inspecting the shipment.

(Records relating to industrial spirits approved by the Office of 
Management and Budget under control number 1512-0334; records relating 
to specially denatured spirits approved by the Office of Management and 
Budget under control number 1512-0337)

    Shipment of Completely Denatured Alcohol and Products Made With 
                            Denatured Spirits



Sec.  26.295  Marks on containers.

    (a) Completely denatured alcohol. (1) For each immediate container 
of completely denatured alcohol with a capacity exceeding 1 gallon, the 
shipper shall mark or label on the head or side of the package or on the 
side of the casing, the following:
    (i) The name and address of the person filling the container;
    (ii) The contents in gallons;
    (iii) The words ``Virgin Islands Completely Denatured Alcohol''; and
    (iv) The formula number prescribed by part 21 of this chapter.
    (2) In addition, if the container has a capacity of 5 gallons or 
less, the words ``Completely Denatured Alcohol'' shall be in red letters 
on white background, and the label shall also have the words ``Caution--
contains poisonous ingredients'' in red letters on white background.
    (b) Products made with denatured spirits. The shipper shall mark or 
label each immediate container of a product made with denatured spirits 
with the name, trade name or brand name of the product and the name and 
address of the shipper.



Sec.  26.296  Record of shipment.

    (a) Each shipment of completely denatured alcohol or products made 
with denatured spirits shall be accompanied by a record of shipment. The 
record of shipment shall consist of an invoice, bill of lading or 
similar document which shows the following information:
    (1) Consignor's name and address;
    (2) Consignee's name and address;
    (3) Capacity and number of containers;
    (4) Total quantity shipped; and
    (5)(i) For completely denatured alcohol, the words ``Virgin Islands 
Completely Denatured Alcohol'' and the formula number prescribed by part 
21 of this chapter, or
    (ii) For products made with denatured spirits, the name, trade name 
or brand name of the product.
    (b) The record of shipment shall be made available to customs 
officers inspecting the shipment.

(Approved by the Office of Management and Budget under control number 
1512-0337)

                      Arrival in the United States



Sec.  26.297  General.

    The district director of customs shall inspect each shipment of 
industrial spirits, specially denatured spirits, completely denatured 
alcohol, and products made with denatured spirits coming into the United 
States from the Virgin Islands. If the shipment complies with the 
requirements of this

[[Page 775]]

part, the products may be released free of tax.



 Subpart Oa_Shipment of Bulk Distilled Spirits From the Virgin Islands, 
 Without Payment of Tax, for Transfer From Customs Custody to Internal 
                              Revenue Bond

    Authority: Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 
U.S.C. 5232).

    Source: T.D. ATF-62, 44 FR 71717, Dec. 11, 1979, unless otherwise 
noted.



Sec.  26.300  General.

    Distilled spirits brought into the United States from the Virgin 
Islands in bulk containers may, under the provisions of this subpart, be 
withdrawn by the proprietor of a distilled spirits plant from customs 
custody and transferred in such bulk containers or by pipeline to the 
bonded premises of his plant, without payment of the internal revenue 
tax imposed on such spirits by 26 U.S.C. 7652. Such spirits so withdrawn 
and transferred to a distilled spirits plant (a) may be redistilled or 
denatured only if 185 degrees or more of proof, and (b) may be withdrawn 
from internal revenue bond for any purpose authorized by 26 U.S.C. 
chapter 51, in the same manner as domestic distilled spirits. Spirits 
transferred from customs custody to the bonded premises of a distilled 
spirits plant under the provisions of this subpart shall be received and 
stored thereat, and withdrawn or transferred therefrom, subject to the 
provisions of part 19 of this chapter. The person operating the bonded 
premises of the distilled spirits plant to which spirits are transferred 
under the provisions of this subpart shall become liable for the tax on 
distilled spirits withdrawn from customs custody under 26 U.S.C. 5232, 
upon release of the spirits from customs custody, and the person 
bringing the spirits into the United States shall thereupon be relieved 
of his liability for such tax.



Sec.  26.301  Preparation of transfer record.

    The person bringing spirits into the United States from the Virgin 
Islands under this subpart shall prepare a transfer record, in 
triplicate, according to Sec.  26.273a, and present the record to the 
customs officer responsible for inspection and release of the spirits. A 
separate transfer record shall be prepared for each conveyance.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8555, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.302  Gauge and certification.

    (a) Gauge. If Virgin Islands spirits to be transferred from customs 
custody to internal revenue bond as provided in this subpart are not 
gauged by an insular gauger at the time of their withdrawal from an 
insular bonded warehouse, as provided in Sec.  26.204 of this chapter, 
the insular consignor shall effect a gauge of each bulk container and 
shall prepare a record of such gauge, in duplicate, and attach both 
copies to the certificate required by Sec.  26.205 of this chapter. If 
the gauge is made by the insular gauger his record of gauge shall be 
prepared in duplicate and both copies shall be attached to the 
certificate.
    (b) Certification. The certification prescribed by Sec.  26.205 of 
this chapter shall be prepared in duplicate if the Virgin Islands 
spirits are to be transferred from customs custody to internal revenue 
bond. Both copies of the certificate, with the applicable record of 
gauge attached, shall be filed with the district director of customs at 
the port of entry. The original of the certificate and related record of 
gauge shall be attached by the customs officer to the original of the 
transfer record received as provided in Sec.  26.301 from the importer.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8555, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.303  Customs inspection and release.

    The customs officer shall not release distilled spirits under this 
subpart until he inspects the spirits, and, if it appears that losses in 
transit were sustained from any container, he shall

[[Page 776]]

gauge the spirits in such container. If the spirits are in a bulk 
conveyance, the customs officer shall record the elements of his gauge 
on the transfer record, or, if the spirits are in packages, on the gauge 
record required by Sec.  26.302, and attach it to the transfer record. 
The customs officer shall also record on the transfer record the port of 
entry, carrier identification, and warehouse entry number. When the 
consignee has complied with all customs requirements, the customs 
officer shall release the spirits for transfer to the distilled spirits 
plant, by dating and signing the transfer record with his title the 
statement: ``To the best of my knowledge the information hereon is 
accurate and the spirits are released''. The customs officer shall 
retain a copy of the transfer record and any attachment, forward a copy 
of the transfer record and any attachments to the appropriate TTB 
officer, and give the original of the transfer record with any 
attachments to the consignee.

[T.D. ATF-198, 50 FR 8555, Mar. 1, 1985. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.304  Bulk conveyances to be sealed.

    When a shipment of distilled spirits from customs custody to the 
distilled spirits plant is made in a tank, tank barge, cargo container, 
tank car, tank truck, or similar bulk conveyance, all openings affording 
access to the spirits shall be sealed by the customs officer with 
customs seals in such manner as will prevent unauthorized removal of 
spirits through such openings without detection.



Sec.  26.305  Receipt by consignee.

    Proprietors of distilled spirits plants who receive Virgin Islands 
spirits under this subpart shall follow the requirements in 27 CFR part 
19 for spirits received by transfer in bond. However, proprietors are 
not required to file application on TTB Form 5100.16 to receive Virgin 
Islands spirits from customs custody.

[T.D. ATF-198, 50 FR 8555, Mar. 1, 1985]



  Subpart Ob_Claims for Drawback on Eligible Articles From the Virgin 
                                 Islands

    Source: T.D. ATF-263, 52 FR 46595, Dec. 9, 1987, unless otherwise 
noted.



Sec.  26.306  Drawback of tax.

    Any person who brings eligible articles into the United States from 
the Virgin Islands may claim drawback of the distilled spirits excise 
taxes paid on such articles as provided in this subpart.



Sec.  26.307  Special tax.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, any person filing claim for drawback of tax on eligible 
articles brought into the United States from the Virgin Islands shall 
pay special tax as required by 26 U.S.C. 5131. For purposes of special 
tax, subparts C and D of part 17 of this chapter shall apply as if the 
use and tax determination occurred in the United States at the time the 
article was brought into the United States, and each business location 
from which entry of eligible articles is caused or effected shall be 
treated as a place of manufacture. If special tax is paid for any such 
business location under part 17 of this chapter, as a place where 
nonbeverage products are manufactured for purposes of drawback, then no 
additional special tax need be paid for that location under this 
section.
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, any person described in paragraph (a) of this 
section must register by filing the special tax return on Form 5630.5, 
in accordance with part 17 of this chapter, during the suspension period 
even though the amount of tax due is zero.

[T.D. ATF-263, 52 FR 46595, Dec. 9, 1987, as amended by T.D. ATF-271, 53 
FR 17559, May 17, 1988; T.D. ATF-379, 61 FR 31427, June 20, 1996; T.D. 
TTB-36, 70 FR 62247, Oct. 31, 2005]



Sec.  26.308  Bonds.

    (a) General. Persons bringing eligible articles into the United 
States from the Virgin Islands and intending to file

[[Page 777]]

monthly claims for drawback under the provisions of this subpart shall 
obtain a bond on Form 5154.3. When the limit of liability under a bond 
given in less than the maximum amount has been reached, further drawback 
on monthly claims may be suspended until a strengthening or superseding 
bond in a sufficient amount has been furnished. For provisions relating 
to bonding requirements, subpart E of part 17 of this chapter is 
incorporated in this part.
    (b) Approval required. No person bringing eligible articles into the 
United States from the Virgin Islands may file monthly claims for 
drawback under the provisions of this subpart until a bond on TTB Form 
5154.3 has been approved.

[T.D. ATF-379, 61 FR 31427, June 20, 1996, as amended by T.D. ATF-451, 
66 FR 21670, May 1, 2001]



Sec.  26.309  Claims for drawback.

    (a) General. Persons bringing eligible articles into the United 
States from the Virgin Islands must file claim for drawback on TTB Form 
2635 (5620.8). Upon finding that the claimant has satisfied the 
requirements of this subpart, the appropriate TTB officer must allow the 
drawback of taxes at a rate of $1 less than the lesser of $10.50 a proof 
gallon or the rate specified in 26 U.S.C. 5001(a).
    (b) Information on claims. The claim must set forth the following:
    (1) That the special tax has been paid;
    (2) That the eligible articles brought into the United States on 
which drawback is claimed are fully taxpaid or tax-determined;
    (3) That the eligible articles on which drawback is claimed are 
nonbeverage products; and
    (4) That the eligible articles were manufactured in the Virgin 
Islands in compliance with approved formulas in accordance with Sec.  
26.221.
    (c) Supporting data. Each claim shall be accompanied by supporting 
data as specified in this paragraph. TTB Form 5154.2, Supporting Data 
for Nonbeverage Drawback Claims, may be used, or the claimant may use 
any suitable format that provides the following information:
    (1) The control number of the Special Tax Stamp and the tax year for 
which issued;
    (2) A description of each eligible article as follows:
    (i) Name and type of each product;
    (ii) Name and address of the manufacturer of each product;
    (iii) Formula number under which each product was manufactured;
    (iv) Alcohol content of each product;
    (v) Quantity of each product;
    (vi) Proof gallons of distilled spirits contained in each product;
    (vii) Date of entry of the eligible product into the United States; 
and
    (viii) Evidence of taxpayment of distilled spirits in accordance 
with Sec.  26.266.
    (d) Date of filing claim. Quarterly claims for drawback shall be 
filed within the 6 months next succeeding the quarter in which the 
eligible products covered by the claim were brought into the United 
States. Monthly claims for drawback may be filed at any time after the 
end of the month in which the eligible products covered by the claim 
were brought into the United States, but must be filed not later than 
the close of the sixth month succeeding the quarter in which the 
eligible products were brought into the United States.

(Approved by the Office of Management and Budget under control number 
1512-0494)

[T.D. ATF-263, 52 FR 46595, Dec. 9, 1987, as amended by T.D. ATF-271, 53 
FR 17559, May 17, 1988; T.D. ATF-379, 61 FR 31427, June 20, 1996; T.D. 
ATF-451, 66 FR 21670, May 1, 2001. Redesignated and amended by T.D. ATF-
459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.310  Records.

    (a) General. Every person intending to file claim for drawback on 
eligible articles brought into the United States from the Virgin Islands 
shall keep permanent records of the data elements required by this 
section. Such records shall be maintained at the business premises for 
which the claim is filed and shall be available for inspection by any 
appropriate TTB officer during business hours.
    (b) Details of records. Each person intending to claim drawback on 
eligible articles brought into the United States shall maintain 
permanent records showing the following data:

[[Page 778]]

    (1) The name, description, quantity, and formula number of each such 
article.
    (2) The alcohol content of each such article.
    (3) Name and address of the manufacturer and shipper, and date of 
entry into the United States.
    (4) Evidence of taxpayment of distilled spirits in accordance with 
paragraph (e) of this section.
    (c) Form of record. No particular form of record is prescribed, but 
the data required to be shown shall be readily ascertainable from the 
records kept by the drawback claimant.
    (d) Evidence of taxpayment of distilled spirits. Evidence of 
taxpayment of eligible articles (such as Customs Forms 7501 and 7505 
receipted to indicate payment of tax) shall be maintained as evidence of 
taxpayment to support information required to be furnished in the 
supporting data filed with a claim.
    (e) Retention of records. Each drawback claimant shall retain for a 
period of not less than three years all records required by this 
subpart, all commercial invoices or shipping documents, and all bills of 
lading received evidencing receipt and tax determination of the spirits. 
In addition, a copy of each approved formula returned to the 
manufacturer of eligible articles shall be retained for not less than 
three years from the date he files his last claim for drawback under the 
formula. The records, forms, and formulas shall be readily available 
during regular business hours for examination by appropriate TTB 
officers.

(Approved by the Office of Management and Budget under control number 
1512-0494)

[T.D. ATF-263, 52 FR 46595, Dec. 9, 1987, as amended by T.D. ATF-451, 66 
FR 21669, May 1, 2001]



                Subpart P_Requirements for Liquor Bottles

    Authority: Sec. 5301, 72 Stat. 1374; 26 U.S.C. 5301.

    Source: T.D. 6954, 33 FR 6818, May 4, 1968, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975.



Sec.  26.311  Scope of subpart.

    The provisions of this subpart shall apply only to liquor bottles 
having a capacity of 200 ml. or more except where expressly applied to 
liquor bottles of less than 200 ml. capacity.

[T.D. 6954, 33 FR 6818, May 4, 1968. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-34, 41 FR 46864, Oct. 26, 1976. 
Redesignated by T.D. ATF-459, 66 FR 38550, July 25, 2001]



Sec.  26.312  Standards of fill.

    Distilled spirits brought into the United States from Puerto Rico or 
the Virgin Islands in containers of 1 gallon (3.785 liters) or less for 
sale shall be in liquor bottles, including liquor bottles of less than 
200 ml capacity, which conform to the applicable standards of fill 
provided in Sec.  5.47 or Sec.  5.47a of this chapter. Empty liquor 
bottles, including liquor bottles of less than 200 ml capacity, which 
conform to the provisions of subpart E of part 5 or part 19 of this 
chapter, may be brought into the United States for packaging distilled 
spirits as provided in part 19 of this chapter.

[T.D. ATF-34, 41 FR 46864, Oct. 26, 1976, as amended by T.D. ATF-62, 44 
FR 71718, Dec. 11, 1979]



Sec.  26.314  Distinctive liquor bottles.

    (a) Application. Liquor bottles of distinctive shape or design, 
including bottles of less than 200 ml. capacity, may be brought into the 
United States from Puerto Rico or the Virgin Islands by an importer 
(filled bottles) or a bottler (empty bottles). For filled bottles, the 
importer shall submit TTB Form 5100.31 for approval prior to bringing 
such bottles into the United States. For empty bottles, the bottler 
shall obtain approval on TTB Form 5100.31 prior to using the bottles. 
The importer or bottler, as applicable, shall certify as to the total 
capacity of a representative sample bottle before closure (expressed in 
milliliters) on each copy of the form. In addition, the applicant shall 
affix a readily legible photograph (both front and back of the bottle) 
to the front of each copy of TTB Form 5100.31, along with the label(s) 
to be used on the bottle. The applicant shall not submit an actual 
bottle or an

[[Page 779]]

authentic model unless specifically requested to do so.
    (b) Approval. Properly submitted TTB Forms 5100.31 to bring 
distinctive liquor bottles (filled) into the United States from Puerto 
Rico or the Virgin Islands, or, properly submitted TTB Forms 5100.31 to 
use distinctive liquor bottles (empty) which have been brought into the 
United States from Puerto Rico or the Virgin Islands, shall be approved 
provided such bottles are found by the appropriate TTB officer to--
    (1) Meet the requirements of 27 CFR part 5;
    (2) Be distinctive;
    (3) Be suitable for their intended purpose;
    (4) Not jeopardize the revenue; and
    (5) Not be deceptive to the consumer.

The applicant shall keep a copy of the approved TTB Form 5100.31, 
including an approved photograph (both front and back) of the 
distinctive liquor bottle, on file at his premises. If TTB Form 5100.31 
is disapproved, the applicant shall be notified of the appropriate TTB 
officer's decision and the reasons therefor. The applicant importer is 
responsible for furnishing a copy of the approved TTB Form 5100.31, 
including a photograph of the distinctive liquor bottle, to Customs 
officials at each affected port of entry where the merchandise is 
examined.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-114, 47 FR 43950, Oct. 5, 1982, as amended by T.D. ATF-242, 51 
FR 39526, Oct. 29, 1986; T.D. ATF-451, 66 FR 21670, May 1, 2001]



Sec.  26.315  [Reserved]



Sec.  26.316  Bottles not constituting approved containers.

    The appropriate TTB officer is authorized to disapprove any bottle, 
including a bottle of less than 200 ml. capacity, for use as a liquor 
bottle which he determines to be deceptive. The Customs officer at the 
port of entry shall deny entry of any such bottle containing distilled 
spirits upon advice from the appropriate TTB officer that such bottle is 
not and approved container for distilled spirits for consumption in the 
United States.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-114, 47 FR 43950, Oct. 5, 1982]



Sec.  26.317  Bottles to be used for display purposes.

    Empty liquor bottles may be brought into the United States and may 
be furnished to liquor dealers for display purposes, provided each 
bottle is marked to show that it is to be used for such purpose. Any 
paper strip used to seal the bottle shall be of solid color and without 
design or printing, except that a border or a design, formed entirely of 
the legend ``not genuine--for display purposes only'' is permissible. 
Records shall be kept of the receipt and disposition of such bottles, 
showing the names and addresses of consignees, dates of shipment, and 
size, quantity, and description of bottles.



Sec.  26.318  Liquor bottles denied entry.

    Filled liquor bottles not conforming to the provisions of this 
subpart shall be denied entry into the United States: Provided, That, 
upon letterhead application, in triplicate, the appropriate TTB officer 
may, in nonrecurring cases, authorize the release from customs custody 
of distilled spirits in bottles, except those coming under the 
provisions of Sec.  26.316, which, through unintentional error, do not 
conform to the provisions of this subpart, if such officer finds that 
such release will not afford jeopardy to the revenue.

[T.D. ATF-451, 66 FR 21670, May 1, 2001. Redesignated and amended by 
T.D. ATF-459, 66 FR 38550, 38552, July 25, 2001]



Sec.  26.319  Used liquor bottles.

    The appropriate TTB officer may pursuant to letterhead application 
filed in triplicate, authorize an importer to receive liquor bottles 
assembled for him as provided in Sec.  31.263 of this chapter. Used 
liquor bottles so received may be stored at any suitable location 
pending return to Puerto Rico or the Virgin Islands. Records shall be

[[Page 780]]

kept of the receipt and disposition of such bottles.

[T.D. 6954, 33 FR 6818, May 4, 1968, as amended by T.D. 7006, 34 FR 
2250, Feb, 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as 
amended by T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]



                   Subpart Q_Miscellaneous Provisions



Sec.  26.331  Alternate methods or procedures.

    (a) Application. A person bringing liquors into the United States 
from Puerto Rico or the Virgin Islands who desires to use an alternate 
method or procedure in lieu of a method or procedure prescribed by this 
part shall file application, in triplicate, with the appropriate TTB 
officer. If such person has several places of business at which he 
desires to use such alternate method or procedure, a separate 
application shall be submitted for each. Each application shall:
    (1) Specify the name, address, and permit number of the person to 
which it relates;
    (2) State the purpose for which filed; and
    (3) Specifically describe the alternate method or procedure and set 
forth the reasons therefor.

No alternate method or procedure relating to the assessment, payment, or 
collection of tax shall be authorized under this paragraph.
    (b) Approval. When an application for use of an alternate method or 
procedure is received, the appropriate TTB officer shall determine 
whether the approval thereof would unduly hinder the effective 
administration of this part or would result in jeopardy to the revenue. 
The appropriate TTB officer, may approve the alternate method or 
procedure if he finds that:
    (1) Good cause has been shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure, and affords equivalent security to the revenue; and
    (3) The alternate method or procedure will not be contrary to any 
provision of law, and will not result in any increase in cost to the 
Government or hinder the effective administration of this part.

No alternate method or procedure shall be used until approval has been 
received from the appropriate TTB officer. Authorization for the 
alternate method or procedure may be withdrawn whenever in the judgment 
of the appropriate TTB officer, the revenue is jeopardized or the 
effective administration of this part is hindered by the continuation of 
such authorization.

(Approved by the Office of Management and Budget under control number 
1512-0352)

[T.D. ATF-2, 37 FR 22739, Oct. 21, 1972. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984]



PART 27_IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
27.1 Imported distilled spirits, wines, and beer.
27.2 Forms prescribed.
27.3 Delegations of the Administrator.

                          Subpart B_Definitions

27.11 Meaning of terms.

                 Subpart C_Special (Occupational) Taxes

27.30 Special (occupational) tax.
27.31 Warehouse receipts covering distilled spirits.

      Subpart D_Tax on Imported Distilled Spirits, Wines, and Beer

                            Distilled Spirits

27.40 Distilled spirits.
27.41 Computation of effective tax rate.

                                  Wines

27.42 Wines.
27.42a Still wines containing carbon dioxide.

        Liqueurs, Cordials, and Other Compounds and Preparations

27.43 Liqueurs, cordials, and similar compounds.
27.44 Other compounds and preparations.

                                  Beer

27.45 Rate of tax.

[[Page 781]]

27.46 Computation of tax.

                  Collection of Internal Revenue Taxes

27.48 Imported distilled spirits, wines, and beer.
27.48a Payment of tax by electronic fund transfer.

        Exemption of Certain Samples From Internal Revenue Taxes

27.49 Commercial samples of alcoholic beverages.

                     Subpart E_General Requirements

       Permit for Importation of Distilled Spirits, Wines and Beer

27.55 Federal Alcohol Administration Act permit.

               Packaging and Marking of Distilled Spirits

27.56 Distilled spirits containers of a capacity of not more than 1 
          gallon.
27.57 Containers in excess of 1 gallon.

                      Labeling of Distilled Spirits

27.58 Containers of 1 gallon (3.785 liters) or less.

                 Marking and Labeling of Wines and Beer

27.59 Wines.
27.60 Beer.

              Closures for Containers of Distilled Spirits

27.61 Containers of distilled spirits to bear closures.
27.62 Affixing closures.

                               Exemptions

27.74 Exemption from requirements pertaining to marks, bottles, and 
          labels.
27.75 Samples of distilled spirits, wine, and beer for quality control 
          purposes.

              Wine and Flavors Content of Distilled Spirits

27.76 Approval and certification of wine and flavors content.
27.77 Standard effective tax rate.

Subparts F-G [Reserved]

           Subpart H_Importation of Distilled Spirits in Bulk

27.120 Persons authorized to receive distilled spirits imported in bulk.
27.121 Containers.

                Subpart I_Importer's Records and Reports

27.130-27.132 [Reserved]

                  Record and Report of Imported Liquors

27.133 General requirements.
27.134 Proprietors of qualified premises.

               Filing and Retention of Records and Reports

27.136 Filing.
27.137 Retention.

                              Other Records

27.138 Transfer record.
27.139 Package gauge record.
27.140 Certification requirements for wine.

Subparts J-K [Reserved]

 Subpart L_Transfer of Distilled Spirits From Customs Custody to Bonded 
                   Premises of Distilled Spirits Plant

27.171 General provisions.
27.172 Preparation of transfer record and package gauge record.
27.173 Inspection and release.
27.174 Tank cars and tank trucks to be sealed.
27.175 Receipt by consignee.

Subpart M_Withdrawal of Imported Distilled Spirits From Customs Custody 
                Free of Tax For Use of the United States

27.181 General.
27.182 Application and permit, Form 5150.33.
27.183 Use of permit, Form 5150.33.
27.184 Entry documents.
27.185 Customs release.

                Subpart N_Requirements for Liquor Bottles

27.201 Scope of subpart.
27.202 Standards of fill.
27.204 Distinctive liquor bottles.
27.205 [Reserved]
27.206 Bottles not constituting approved containers.
27.207 Bottles to be used for display purposes.
27.208 Liquor bottles denied entry.
27.209 Used liquor bottles.

                   Subpart O_Miscellaneous Provisions

27.221 Alternate methods or procedures.

    Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 
5007, 5008, 5010, 5041, 5051, 5054, 5061, 5148, 5111, 5112, 5114, 5121, 
5122, 5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805.

    Source: 20 FR 3561, May 21, 1955, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by 
T.D. ATF-479, 67 FR 30799, May 8, 2002.

[[Page 782]]


    Cross Reference: For regulations with respect to distilled spirits, 
wines, and beer arriving in the United States from Puerto Rico and the 
Virgin Islands, see part 26 of this subchapter.

    Editorial Note: Nomenclature changes to part 27 appear by T.D. ATF-
474, 67 FR 11231, Mar. 13, 2002, and T.D. ATF-479, 67 FR 30799, May 8, 
2002.



                     Subpart A_Scope of Regulations



Sec.  27.1  Imported distilled spirits, wines, and beer.

    This part, ``Importation of Distilled Spirits, Wines, and Beer'', 
contains procedural and substantive requirements relative to the 
importation of distilled spirits, wines, and beer into the United States 
from foreign countries including special (occupational) and commodity 
taxes, permits, marking, branding, closing and labeling of containers 
and packages, and records and reports.

    Note: Distilled spirits, wines, and beer arriving in the United 
States from Puerto Rico and the Virgin Islands are governed by the 
provisions of part 26 of this chapter.

[T.D. ATF-206, 50 FR 23955, June 7, 1985, as amended by T.D. ATF-459, 66 
FR 38550, July 25, 2001]



Sec.  27.2  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part, including reports, returns, and records. All of 
the information called for in each form shall be furnished as indicated 
by the headings on the form and the instructions on or pertaining to the 
form. In addition, information called for in each form shall be 
furnished as required by this part. The form will be filed in accordance 
with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

(5 U.S.C. 552(a) (80 Stat. 383, as amended))

[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. 
ATF-474, 67 FR 11231, Mar. 13, 2002; T.D. TTB-44, 71 FR 16946, Apr. 4, 
2006]



Sec.  27.3  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.27, Delegation of the Administrator's 
Authorities in 27 CFR Part 27, Importation of Distilled Spirits, Wines, 
and Beer. You may obtain a copy of this order by accessing the TTB Web 
site (http://www.ttb.gov) or by mailing a request to the Alcohol and 
Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, 
Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16946, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  27.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.27, Delegation of the Administrator's Authorities in 27 CFR Part 
27, Importation of Distilled Spirits, and Beer.
    Beer. Beer, ale porter, stout, and other similar fermented beverages 
(including sake or similar products) of any name or description 
containing one-half of 1 percent or more of alcohol by volume, brewed or 
produced from malt, wholly or in part, or from any substitute therefor.
    Bonded premises--distilled spirits plant. The premises of a 
distilled spirits

[[Page 783]]

plant, or part thereof, on which distilled spirits operations defined in 
26 U.S.C. 5002 are authorized to be conducted.
    Bulk container. Any container having a capacity of more than 1 
gallon.
    Bulk distilled spirits. The term ``bulk distilled spirits'' means 
distilled spirits in a container having a capacity in excess of 1 
gallon.
    CFR. The Code of Federal Regulations.
    Class 8 Customs bonded warehouse. A class 8 customs bonded warehouse 
established under the provisions of Customs Regulations (19 CFR, chapter 
I).
    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform any duties of an officer of the Customs Service.
    Distilled spirits or spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine, and all mixtures or dilutions thereof, from 
whatever source or by whatever process produced, including alcohol, 
whisky, brandy, gin, rum, and vodka, but not including wine as defined 
in this subpart.
    Distilled spirits plant. An establishment qualified under the 
provisions of part 19 of this chapter for the production, storage, or 
processing of spirits, or for authorized combinations of such 
operations.
    District director of customs. The district director of customs at a 
headquarters port of the district (except the district of New York, 
N.Y.); the area directors of customs in the district of New York, N.Y.; 
and the port director at a port not designated as a headquarters port.
    Effective tax rate. The net tax rate after reduction for any credit 
allowable under 26 U.S.C. 5010 for wine and flavor content at which the 
tax imposed on distilled spirits by 26 U.S.C. 5001 is paid or 
determined.
    Eligible flavor. A flavor which:
    (1) Is of a type that is eligible for drawback of tax under 26 
U.S.C. 5134,
    (2) Was not manufactured on the premises of a distilled spirits 
plant, and
    (3) Was not subjected to distillation on distilled spirits plant 
premises such that the flavor does not remain in the finished product.
    Eligible wine. Wine on which tax would be imposed by paragraph (1), 
(2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled 
spirits plant premises and which has not been subject to distillation at 
a distilled spirits plant after receipt in bond.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    Importer. Any person who imports distilled spirits, wines, or beer 
into the United States.
    Kind. As applied to spirits, kind shall mean class and type as 
prescribed in 27 CFR part 5. As applied to wines, kind shall mean the 
classes and types of wines as prescribed in 27 CFR part 4.
    Liquor bottle. A bottle made of glass or earthenware, or of other 
suitable material approved by the Food and Drug Administration, which 
has been designed or is intended for use as a container for distilled 
spirits for sale for beverage purposes and which has been determined by 
the appropriate TTB officer to adequately protect the revenue.
    Person. An individual, a trust, an estate, a partnership, an 
association, a company, or a corporation.
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A gallon of liquid at 60 degrees Fahrenheit which 
contains 50 percent by volume of ethyl alcohol having a specific gravity 
of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees 
Fahrenheit as unity, or the alcoholic equivalent thereof.
    United States. ``United States'' includes only the States and the 
District of Columbia.
    U.S.C. The United States Code.
    Wine. (a) Still wine, including vermouth or other aperitif wine, 
artificial or imitation wines or compounds sold as still wines, 
champagne or sparkling wine, and artificially carbonated wine, and (b) 
flavored or sweetened fortified or unfortified wines, by whatever

[[Page 784]]

name sold or offered for sale, containing not over 24 percent alcohol by 
volume.

(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended 
(27 U.S.C. 205); 26 U.S.C. 7805 (68A Stat. 917, as amended), and in 27 
U.S.C. 205 (49 Stat. 981, as amended))

[T.D. ATF-48, 43 FR 13552, Mar. 31, 1978, as amended by T.D. ATF-50, 43 
FR 37180, Aug. 22, 1978; 44 FR 55853, Sept. 28, 1979; T.D. ATF-62, 44 FR 
71718, Dec. 11, 1979; T.D. ATF-114, 47 FR 43950, Oct. 5, 1982; T.D. ATF-
198, 50 FR 8555, Mar. 1, 1985; T.D. ATF-206, 50 FR 23955, June 7, 1985; 
T.D. ATF-251, 52 FR 19339, May 22, 1987; T.D. ATF-297, 55 FR 18069, Apr. 
30, 1990; T.D. ATF-398, 63 FR 44784, Aug. 21, 1998; T.D. ATF-474, 67 FR 
11232, Mar. 13, 2002; T.D. TTB-44, 71 FR 16946, Apr. 4, 2006]



                 Subpart C_Special (Occupational) Taxes



Sec.  27.30  Special (occupational) tax.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section, importers engaged in the business of selling, or offering for 
sale, distilled spirits, wines or beer are subject to the provisions of 
part 31 of this chapter relating to special (occupational) taxes. Part 
31 requires that the special tax return, Form 5630.5, with payment of 
the tax, shall be filed with TTB in accordance with the instruction on 
the form, before commencing business. Subsequently, Form 5630.5 with tax 
shall be filed each year on or before July 1, as long as the proprietor 
continues in business.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340 as amended, 1343 as amended, 
1344 as amended (26 U.S.C. 5111, 5112, 5121, 5122))
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, the persons described in paragraph (a) of this 
section must register by filing the special tax return on Form 5630.5, 
in accordance with part 31 of this chapter, during the suspension period 
even though the amount of tax due is zero.

[T.D. ATF-70, 45 FR 33981, May, 21, 1980, as amended by T.D. ATF-251, 52 
FR 19339, May 22, 1987; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. 
TTB-36, 70 FR 62247, Oct. 31, 2005]



Sec.  27.31  Warehouse receipts covering distilled spirits.

    The sale of warehouse receipts for distilled spirits is equivalent 
to the sale of distilled spirits. Accordingly, except during the 
suspension period described in Sec.  27.30(b), every person engaged in 
business as an importer of distilled spirits, who sells, or offers for 
sale, warehouse receipts for distilled spirits stored in customs bonded 
warehouses, or elsewhere, incurs liability to special tax as a dealer in 
liquors at the place where the warehouse receipts are sold or offered 
for sale, and must file return and pay occupational tax as provided in 
Sec.  27.30(a). During the suspension period, every such person must 
register as provided in Sec.  27.30(b).

(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)

[T.D. TTB-36, 70 FR 62247, Oct. 31, 2005]



      Subpart D_Tax On Imported Distilled Spirits, Wines, and Beer

                            Distilled Spirits



Sec.  27.40  Distilled spirits.

    (a) A tax is imposed on all distilled spirits in customs bonded 
warehouses or imported into the United States at the rate prescribed by 
26 U.S.C. 5001 on each proof gallon and a proportionate tax at a like 
rate on all fractional parts of each proof gallon. All products of 
distillation, by whatever name known, which contain distilled spirits, 
are considered to be distilled spirits and are taxed as such. The tax 
will be determined at the time of importation, or, if entered into bond, 
at the time of withdrawal therefrom.
    (b) A credit against the tax imposed on distilled spirits by 26 
U.S.C. 5001 is allowable under 26 U.S.C. 5010 on each proof gallon of 
alcohol derived from eligible wine or from eligible flavors which do not 
exceed 2\1/2\ percent of the finished product on a proof gallon basis. 
The credit is allowable at the time the tax is payable as if it 
constituted a reduction in the rate of tax.
    (c) Where credit against the tax is desired, the person liable for 
the tax shall establish an effective tax rate in accordance with Sec.  
27.41. The effective tax

[[Page 785]]

rate established will be applied to each entry.

(Approved by the Office of Management and Budget under control number 
1512-0352.)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); 
Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); 
Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18069, Apr. 30, 1990]



Sec.  27.41  Computation of effective tax rate.

    (a) The proprietor shall compute the effective tax rate for 
distilled spirits containing eligible wine or eligible flavors as the 
ratio of the numerator and denominator as follows:
    (1) The numerator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product 
(exclusive of distilled spirits derived from eligible flavors), 
multiplied by the tax rate prescribed by 26 U.S.C. 5001;
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by the tax rate prescribed by 26 U.S.C. 5041(b)(1), (2), or 
(3), as applicable; and
    (iii) The proof gallons of all distilled spirits derived from 
eligible flavors used in the product, multiplied by the tax rate 
prescribed by 26 U.S.C. 5001, but only to the extent that such distilled 
spirits exceed 2\1/2\% of the denominator prescribed in paragraph (a)(2) 
of this section.
    (2) The denominator will be the sum of:
    (i) The proof gallons of all distilled spirits used in the product, 
including distilled spirits derived from eligible flavors; and
    (ii) The wine gallons of each eligible wine used in the product, 
multiplied by twice the percentage of alcohol by volume of each, divided 
by 100.
    (b) In determining the effective tax rate, quantities of distilled 
spirits, eligible wine, and eligible flavors will be expressed to the 
nearest tenth of a proof gallon. The effective tax rate may be rounded 
to as many decimal places as the proprietor deems appropriate, provided 
that, such rate is expressed no less exactly than the rate rounded to 
the nearest whole cent, and the effective tax rates for all products 
will be consistently expressed to the same number of decimal places. In 
such case, if the number is less than five it will be dropped; if it is 
five or over, a unit will be added.
    (c) The following is an example of the use of the formula.
---------------------------------------------------------------------------

    \1\ Proof gallons by which distilled spirits derived from eligible 
flavors exceed 2\1/2\% of the total proof gallons in the batch (100.9 - 
(2\1/2\%) x 3.371.8 = 16.6).

                              BATCH RECORD
Distilled spirits..............................    2249.1 proof gallons.
Eligible wine (14% alcohol by volume)..........     2265.0 wine gallons.
Eligible wine (19% alcohol by volume)..........     1020.0 wine gallons.
Eligible flavors...............................     100.9 proof gallons.

                                                 [GRAPHIC] [TIFF OMITTED] TC05OC91.033
                                                 

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18069, Apr. 30, 1990, as amended by T.D. ATF-307, 
55 FR 52742, Dec. 21, 1990. Redesignated by T.D. ATF-474, 67 FR 11232, 
Mar. 13, 2002]

[[Page 786]]

                                  Wines



Sec.  27.42  Wines.

    All wines (including imitation, substandard, or artificial wine, and 
compounds sold as wine) having not in excess of 24 percent of alcohol by 
volume, in customs bonded warehouse or imported into the United States 
are subject to an internal revenue tax at the rates prescribed by law; 
such tax to be determined at the time of removal from customs custody 
for consumption or sale. The tax is imposed on each wine gallon and at a 
like rate on fractional parts of a wine gallon. Fractions of less than 
one-tenth gallon shall be converted to the nearest one-tenth gallon, and 
five-hundredths gallon shall be converted to the next full one-tenth 
gallon. All wines containing more than 24 percent of alcohol by volume 
shall be classed as distilled spirits and shall be taxed accordingly.

(72 Stat. 1331, as amended; 26 U.S.C. 5041)

[T.D. 6644, 28 FR 3165, Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec.  27.42a  Still wines containing carbon dioxide.

    Still wines may contain not more than 0.392 gram of carbon dioxide 
per 100 milliliters of wine; except that a tolerance to this maximum 
limitation, not to exceed 0.009 gram of carbon dioxide per 100 
milliliters of wine, will be allowed where the amount of carbon dioxide 
in excess of 0.392 gram per 100 milliliters of wine was due to 
mechanical variations which could not be completely controlled under 
good commercial practices. Such tolerance will not be allowed where it 
is found that the limitation of 0.392 gram of carbon dioxide per 100 
milliliters of wine is continuously or intentionally exceeded.

[T.D. ATF-13, 40 FR 4419, Jan. 30, 1975. Redesignated at 40 FR 16835, 
Apr. 15, 1975]

        Liqueurs, Cordials, and Other Compounds and Preparations



Sec.  27.43  Liqueurs, cordials, and similar compounds.

    A tax is imposed by 26 U.S.C. 5001 on all liqueurs, cordials, and 
similar compounds, containing distilled spirits, in a customs bonded 
warehouse or imported into the United States at the rate prescribed in 
such section on each proof gallon, and a proportionate tax at a like 
rate on all fractional parts of such proof gallon. The tax shall be 
determined at the time of importation, or, if entered into bond, at the 
time of withdrawal therefrom. Fortified or unfortified wines, containing 
not over 24 percent alcohol by volume, to which sweetening or flavoring 
materials, but no distilled spirits, have been added are not classified 
as liqueurs, cordials, or similar compounds, but are considered to be 
flavored wines only and are subject to internal revenue tax at the rates 
applicable to wines.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1331, as amended 
(26 U.S.C. 5001, 5041))

[T.D. ATF-62, 44 FR 71718, Dec. 11, 1979]



Sec.  27.44  Other compounds and preparations.

    Compounds and preparations, other than those specified in Sec.  
27.43 containing distilled spirits, which are fit for beverage purposes, 
in customs bonded warehouse or imported into the United States are 
subject to internal revenue tax at the rates applicable to distilled 
spirits. Compounds and preparations, containing fortified or unfortified 
wine, but no distilled spirits, which are fit for beverage purposes and 
which are sold as wine, are subject to internal revenue tax at the rates 
applicable to wines.

(68A Stat. 595, as amended, 609, as amended; 26 U.S.C. 5001, 5041)

                                  Beer



Sec.  27.45  Rate of tax.

    A tax is imposed by 26 U.S.C. 5051, on all beer imported into the 
United States, at the rate prescribed in such section, for every barrel 
containing not more than 31 gallons, and at a like rate for any other 
quantity or for fractional parts of a barrel. The tax on beer shall

[[Page 787]]

be determined at the time of importation, or, if entered into customs 
custody, at the time of removal from such custody.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended 
(26 U.S.C. 5051, 5054))

[T.D. 6644, 28 FR 3165, Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55853, Sept. 28, 1979]



Sec.  27.46  Computation of tax.

    The tax on imported beer shall be computed on the basis of the 
actual quantity in a container, at the rate prescribed by law.

(72 Stat. 1333, as amended; 26 U.S.C. 5051)

[T.D. 6644, 28 FR 3165. Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 
15, 1975]

                  Collection of Internal Revenue Taxes



Sec.  27.48  Imported distilled spirits, wines, and beer.

    Internal revenue taxes payable on imported distilled spirits, 
including perfumes containing distilled spirits, and on wines and beer, 
are collected, accounted for, and deposited as internal revenue 
collections by directors of customs in accordance with customs 
requirements: Provided, That the taxes on distilled spirits withdrawn 
from customs custody without payment of tax under the provisions of 
subpart L and thereafter withdrawn from bonded premises of a distilled 
spirits plant subject to tax shall be collected and paid under the 
provisions of part 19 of this chapter.

(72 Stat. 1314, 1366; 26 U.S.C. 5001, 5232)

[20 FR 3561, May 21, 1955, as amended by T.D. 6477, 25 FR 6204, July 1, 
1960; T.D. 7006, 34 FR 2250, Feb. 15, 1969. Redesignated at 40 FR 16835, 
Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
27.48, see the List of CFR Sections Affected in the Finding Aids section 
of this volume.



Sec.  27.48a  Payment of tax by electronic fund transfer.

    (a) Each importer who was liable, during a calendar year, for a 
gross amount equal to or exceeding five million dollars in distilled 
spirits taxes combining tax liabilities incurred under this part and 
parts 19 and 26 of this chapter, a gross amount equal to or exceeding 
five million dollars in wine taxes combining tax liabilities incurred 
under this part and parts 24 and 26 of this chapter, or a gross amount 
equal to or exceeding five million dollars in beer taxes combining tax 
liabilities incurred under this part and parts 25 and 26 of this 
chapter, shall use a commercial bank in making payment by electronic 
fund transfer (EFT), as defined in paragraph (c) of this section, of 
such taxes during the succeeding calendar year. Payment of such taxes by 
cash, check, or money order is not authorized for an importer who is 
required, by this section, to make remittances by EFT. For purposes of 
this section, the dollar amount of tax liability is to be summarized 
separately for distilled spirits taxes, wine taxes, or beer taxes, and 
is defined as the gross tax liability on all taxable withdrawals from 
premises in the United States and importations (including products of 
the same tax class brought into the United States from Puerto Rico or 
the Virgin Islands) during the calendar year, without regard to any 
drawbacks, credits, or refunds, for all premises from which such 
activities are conducted by the taxpayer.
    (b) For the purposes of this section, a taxpayer includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (c) Electronic fund transfer or EFT means any transfer of funds, 
other than a transaction originated by

[[Page 788]]

check, draft, or similar paper instrument, which is initiated through an 
electronic terminal, telephonic instrument, or computer of magnetic 
tape, so as to order, instruct, or authorize a financial institution to 
either debit or credit an account, in accordance with procedures 
established by the U.S. Customs Service.
    (d) An importer who is required by this section to make remittances 
by EFT shall make the EFT remittance in accordance with the requirements 
of the U.S. Customs Service.

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061))

[T.D. ATF-245, 52 FR 533, Jan. 7, 1987, as amended by T.D. ATF-459, 66 
FR 38550, July 25, 2001]

        Exemption of Certain Samples From Internal Revenue Taxes



Sec.  27.49  Commercial samples of alcoholic beverages.

    Samples of distilled spirits, beer, and wine, to be used in the 
United States by persons importing alcoholic beverages in commercial 
quantities, are, subject to the limitations in this section, exempt from 
the payment of any internal revenue tax imposed on, or by reason of, 
importation. This exemption applies only to samples to be used for 
soliciting orders for products of foreign countries. In no case shall 
this exemption apply to more than one sample of each alcoholic beverage 
product admitted during any calendar quarter for the use of each such 
person. No sample of beer shall contain more than 8 ounces, no sample of 
wine shall contain more than 4 ounces, and no sample of distilled 
spirits shall contain more than 2 ounces.

(76 Stat. 72; 19 U.S.C. 1202)

[T.D. 6300, 23 FR 5168, July 8, 1958; T.D. ATF-2, 37 FR 22740, Oct. 21, 
1972. Redesignated at 40 FR 16835, Apr. 15, 1975]



                     Subpart E_General Requirements

       Permit for Importation of Distilled Spirits, Wines and Beer



Sec.  27.55  Federal Alcohol Administration Act permit.

    Under the Federal Alcohol Administration Act and the regulations 
issued pursuant thereto (27 CFR part 1), any person except an agency of 
a State or political subdivision thereof, or any officer or employee of 
any such agency, intending to engage in the business of importing 
distilled spirits, wines or beer for nonindustrial use is required to 
procure a permit therefor.

(Sec. 3, 49 Stat. 978, as amended; 27 U.S.C. 203)

[20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]

               Packaging and Marking of Distilled Spirits



Sec.  27.56  Distilled spirits containers of a capacity of not more than 1 gallon.

    Bottled distilled spirits imported into the United States for sale 
shall be bottled in liquor bottles which conform to the requirements of 
subpart N of this part and part 5 of this chapter. Empty bottles 
imported for the packaging of distilled spirits shall conform to the 
requirements of subpart N of this part. (For Customs requirements as to 
marking, see 19 CFR parts 11 and 12.)

[T.D. ATF-206, 50 FR 23955, June 7, 1985]



Sec.  27.57  Containers in excess of 1 gallon.

    Imported containers of distilled spirits in excess of 1 gallon are 
required to be marked in accordance with customs regulations (19 CFR 
parts 11 and 12).

[20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-206, 50 FR 23955, June 7, 1985]

[[Page 789]]

                      Labeling of Distilled Spirits



Sec.  27.58  Containers of 1 gallon (3.785 liters) or less.

    Labels on imported containers of distilled spirits, and on 
containers of imported distilled spirits bottled in customs custody, for 
sale at retail, are required to be covered by a certificate of label 
approval TTB Form 5100.31 issued pursuant to part 5 of this chapter. 
Containers of imported distilled spirits bottled after taxpayment and 
withdrawal from customs custody are required to be covered by a 
certificate of label approval or a certificate of exemption from label 
approval TTB Form 5100.31 issued pursuant to part 5 of this chapter. 
When distilled spirits are to be labeled under a certificate of 
exemption from label approval, the labels affixed to containers are 
required to conform to the provisions of part 19 of this chapter.

[T.D. 6954, 33 FR 6818, May 4, 1968. Redesignated at 40 FR 16835, Apr. 
15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
27.58, see the List of CFR Sections Affected in the Finding Aids section 
of this volume.

                 Marking and Labeling of Wines and Beer



Sec.  27.59  Wines.

    All imported wines containing not less than 7 percent and not more 
than 24 percent of alcohol by volume are required to be packaged, 
marked, branded, and labeled in conformity with the Federal Alcohol 
Administration Act and regulations promulgated thereunder (27 CFR part 
4), prior to their removal from customs custody. Containers of imported 
wine bottled or packaged after taxpayment and withdrawal from customs 
custody are required to be covered by a certificate of label approval or 
a certificate of exemption from label approval on TTB Form 5100.31 
issued pursuant to the Federal Alcohol Administration Act and 
regulations promulgated thereunder (27 CFR part 4). Imported containers 
of wine are required also to be marked, branded and labeled in 
accordance with customs regulations (19 CFR parts 11 and 12).

[20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975 
and amended by T.D. ATF-242, 51 FR 39526, Oct. 29, 1986; T.D. ATF-474, 
67 FR 11232, Mar. 13, 2002]



Sec.  27.60  Beer.

    All imported beer is required to be released from customs custody in 
conformity with the Federal Alcohol Administration Act and regulations 
thereunder. The attention of all concerned is directed, in this 
connection, to the provisions of Regulations 7 (27 CFR part 7) relating 
to the labeling and advertising of malt beverages, issued under the 
Federal Alcohol Administration Act. Imported containers of beer are 
required to be marked and labeled in accordance with customs regulations 
(19 CFR parts 11 and 12).

              Closures for Containers of Distilled Spirits



Sec.  27.61  Containers of distilled spirits to bear closures.

    No person shall transport, buy, possess, or sell, or transfer any 
imported distilled spirits in containers of 1 gallon (3.785 liters) or 
less, unless the immediate container thereof has a closure or other 
device affixed in accordance with the provisions of this part.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23955, June 7, 1985]



Sec.  27.62  Affixing closures.

    Closures or other devices on containers of imported distilled 
spirits having a capacity of 1 gallon (3.785 liters) or less shall be 
affixed so as to leave a portion of the closure or other device 
remaining on the container when it is opened. In addition, the closures 
or other devices shall be constructed in such a manner as to require 
that they be broken to gain access to the contents of the containers.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23955, June 7, 1985]

[[Page 790]]

                               Exemptions



Sec.  27.74  Exemption from requirements pertaining to marks, bottles, and labels.

    The provisions of this part relating to the labeling of containers 
as prescribed by 27 CFR part 5 are not applicable to imported distilled 
spirits (a) not for sale or for any other commercial purpose whatever; 
(b) on which no internal revenue tax is required to be paid or 
determined on or before withdrawal from customs custody; (c) for use as 
ship stores; or (d) for personal use. Samples of distilled spirits, 
other than those provided for in Sec. Sec.  27.49 and 27.75, imported 
for any purpose are not exempt from the requirements pertaining to 
marks, bottles, and labels. Samples of wine and beer brought into the 
United States pursuant to Sec.  27.49 are exempt from the requirements 
pertaining to marks, bottles, and labels. Samples of wine and beer 
brought into the United States pursuant to Sec.  27.49 are exempt from 
the labeling requirements of 27 CFR parts 4 and 7, respectively. 
Exemptions from the requirements that imported distilled spirits, wines, 
and beer be marked to indicate the country of origin are set forth in 
customs regulations (19 CFR part 11).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1374, as amended 
(26 U.S.C. 5205, 5301))

[T.D. ATF-206, 50 FR 23956, June 7, 1985]



Sec.  27.75  Samples of distilled spirits, wine, and beer for quality control purposes.

    Samples of distilled spirits, wine, and beer in containers of a 
capacity of not more than 1.75 liters, imported solely for quality 
control purposes (laboratory testing and analysis) and not for sale or 
for use in the manufacture or production of any article for sale, shall 
be exempt from any requirements relating to marks, bottles, labels, and 
standards of fill. Samples imported for quality control purposes shall 
not be exempt from the payment of any internal revenue tax imposed on, 
or by reason of, importation.

[T.D. ATF-198, 50 FR 8557, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23955, June 7, 1985]

              Wine and Flavors Content of Distilled Spirits



Sec.  27.76  Approval and certification of wine and flavors content.

    (a) Any person who, after December 1, 1990, imports into the United 
States distilled spirits on which the tax is to be paid or determined at 
an effective tax rate based in whole, or in part, on the alcohol content 
derived from eligible wine or eligible flavors which have not been 
previously approved on TTB Form 5530.5 (1678) shall, before the first 
tax determination at that rate, request and receive a statement of 
eligibility for each wine or flavor to be used in the computation of the 
effective tax rate.
    (b) To receive a statement of eligibility, the importer shall cause 
to be submitted to the TTB Alcohol and Tobacco Laboratory, 6000 
Ammendale Road, Ammendale, MD 20705, the following:
    (1) An 8-ounce sample of each distilled spirits, wine and flavor 
contained in the product; and
    (2) A statement of composition listing--
    (i) For wine, the kind (class and type) and percentage of alcohol by 
volume; and
    (ii) For flavors, the name and percentage of alcohol by volume, and 
the name and quantity of each ingredient used in the manufacture of the 
flavor.
    (c) Each time distilled spirits containing eligible wine or eligible 
flavors are imported into the United States, the importer shall prepare 
a certificate of effective tax rate computation showing the following:
    (1) Name, address, and permit number of the importer;
    (2) Kind (class and type) of product;
    (3) Elements necessary to compute the effective tax rate in 
accordance with Sec.  27.41 as follows--
    (i) Proof gallons of distilled spirits (exclusive of distilled 
spirits derived from eligible flavors);
    (ii) Wine gallons of each eligible wine and the percentage of 
alcohol by volume of each; and
    (iii) Proof gallons of distilled spirits derived from eligible 
flavors;

[[Page 791]]

    (4) After December 1, 1990, the date of the statement of eligibility 
of each eligible wine and of each eligible flavor;
    (5) Effective tax rate applied to the product; and
    (6) Signature of the importer or other duly authorized person under 
the following declaration:

I declare under the penalties of perjury that this certificate of 
effective tax rate computation has been examined by me and, to the best 
of my knowledge and belief, is true, correct, and complete.

    (d) The importer shall file the certificate of effective tax rate 
computation with the district director of customs at the port of entry, 
at the time of entry summary, or, for distilled spirits to be withdrawn 
from customs custody under the provisions of subpart L of this part, 
furnish a copy to the proprietor of the distilled spirits plant to which 
the distilled spirits are transferred.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))

[T.D. ATF-297, 55 FR 18070, Apr. 30, 1990, as amended by T.D. TTB-44, 71 
FR 16946, Apr. 4, 2006]



Sec.  27.77  Standard effective tax rate.

    (a) In lieu of preparing a certificate of effective tax rate 
computation each time distilled spirits containing eligible wine or 
eligible flavors are imported as prescribed in Sec.  27.76(c), an 
importer may have a standard effective tax rate established based on the 
least quantity and the lowest alcohol content of eligible wine or 
eligible flavors used in the manufacture of the product.
    (b) To have a standard effective tax rate established, the importer 
shall cause to be submitted to the TTB Alcohol and Tobacco Laboratory, 
6000 Ammendale Road, Ammendale, MD 20705, the following:
    (1) The samples prescribed in Sec.  27.76(b)(1) and an 8-ounce 
sample of the finished product;
    (2) The statement of composition prescribed in Sec.  27.76(b)(2);
    (3) A statement of composition for the finished product listing 
the--
    (i) Name of the product;
    (ii) Quantity, alcohol content (percentage of alcohol by volume), 
and the kind (class and type) of each eligible wine or the name of each 
eligible flavor used in the manufacture of the product; and
    (iii) Standard effective tax rate for the product computed in 
accordance with Sec.  27.41.
    (c) Where a standard effective tax rate has been previously approved 
for a product, an importer, in lieu of having a standard effective tax 
rate established, may use that rate. An importer desiring to use a 
previously approved standard effective tax rate shall obtain a copy of 
the approval from the person to whom it was issued and, over the 
signature of the importer or other duly authorized person, place the 
following declaration:

I declare under the penalties of perjury that this approval has been 
examined by me and, to best of my knowledge and belief, the standard 
effective tax rate established for this product is applicable to all 
like products contained in this shipment.

    (d) A standard effective tax rate may not be employed until approved 
by the appropriate TTB officer. The importer shall file or furnish a 
copy of the standard effective tax rate approval in the manner 
prescribed in Sec.  27.76(d). The use of a standard effective tax rate 
shall not relieve an importer from the payment of any tax found to be 
due. The appropriate TTB officer may at any time require an importer to 
immediately discontinue the use of a standard effective tax rate.

(Approved by the Office of Management and Budget under control Number 
1512-0352)

[T.D. ATF-297, 55 FR 18070, Apr. 30, 1990; 55 FR 23635, June 11, 1990; 
T.D. ATF-474, 67 FR 11232, Mar. 13, 2002; T.D. TTB-44, 71 FR 16946, Apr. 
4, 2006]

Subparts F-G [Reserved]



           Subpart H_Importation of Distilled Spirits In Bulk



Sec.  27.120  Persons authorized to receive distilled spirits imported in bulk.

    Distilled spirits imported in bulk (i.e., in containers having a 
capacity in excess of 1 gallon (3.785 liters)) may be entered into a 
class 8 customs bonded

[[Page 792]]

warehouse for bottling, or may be withdrawn from customs custody only if 
entered for exportation or if withdrawn by a person to whom it is lawful 
to sell or otherwise dispose of distilled spirits in bulk pursuant to 
the Federal Alcohol Administration Act (49 Stat. 985, as amended; 27 
U.S.C., 206) and Regulation 3 (27 CFR part 3). The importation and 
disposition of distilled spirits imported in bulk shall be reported as 
prescribed by Sec. Sec.  27.133 to 27.134.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, 1361, 1374, 1395 (26 U.S.C. 
5114, 5207, 5301, 5555))

[T.D. ATF-34, 41 FR 46864, Oct. 26, 1976]



Sec.  27.121  Containers.

    Imported distilled spirits may be bottled in either domestic or 
imported containers conforming to the provisions of subpart N of this 
part.

(72 Stat. 1374; 26 U.S.C. 5301)

[T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 
15, 1975]



                Subpart I_Importer's Records and Reports



Sec. Sec.  27.130-27.132  [Reserved]

                  Record and Report of Imported Liquors



Sec.  27.133  General requirements.

    Except as provided in Sec.  27.134, every importer who imports 
distilled spirits, wines, or beer shall keep such records and render 
such reports of the physical receipt and disposition of such liquors as 
are required to be kept by a wholesale or retail dealer, as applicable, 
under the provision of part 31 of this chapter. Any importer who does 
not take physical possession of the liquors at the time of, but is 
responsible for, their release from customs custody shall keep 
commercial records reflecting such release; such records shall identify 
the kind and quantity of the liquors released, the name and address of 
the person receiving the liquors from customs custody, and the date of 
release, and shall be filed chronologically by release dates. Records 
and reports will not be required under this part with respect of liquors 
while in customs custody.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(72 Stat. 1342, 1345, 1395; 26 U.S.C. 5114, 5124, 5555)

[T.D. ATF-2, 37 FR 22743, Oct. 21, 1972. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; 
T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]



Sec.  27.134  Proprietors of qualified premises.

    Importing operations conducted by proprietors of premises qualified 
under the provisions of this chapter shall be recorded and reported in 
accordance with the regulations governing the operations of each such 
premises.

(72 Stat. 1342, 1361, 1395; 26 U.S.C. 5114, 5207, 5555)

[T.D. 6388, 24 FR 4824, June 12, 1959, as amended by T.D. 6477, 25 FR 
6207, July 1, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]

               Filing and Retention of Records and Reports



Sec.  27.136  Filing.

    (a) All records and reports required by this part will be maintained 
separately, by transaction or reporting date, at the importer's place of 
business. The appropriate TTB officer may, pursuant to an application, 
authorize files, or an individual file, to be maintained at another 
business location under the control of the importer, if the alternative 
location does not cause undue inconvenience to appropriate TTB officers 
desiring to examine the files or delay in the timely submission of 
documents, and are not inconsistent with Customs recordkeeping 
requirements (See 19 CFR part 163).
    (b) If an importer conducts wholesale operations, one legible copy 
of each required record of receipt and disposition shall be filed not 
later than one business day following the date of transaction.
    (c) If an importer conducts only retail operations, they may 
maintain either loose-leaf or book records of the daily receipt of 
liquors which contain all the required information.

[[Page 793]]

    (d) Supporting documents, such as consignors' invoices, delivery 
receipts, bills of lading, etc., or exact copies of the same, may be 
filed in accordance with the importer's regular accounting and 
recordkeeping practices.

(Approved by the Office of Management and Budget under control number 
1512-0352)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended 
(26 U.S.C. 5114, 5555))

[T.D. ATF-116, 47 FR 51573, Nov. 16, 1982, as amended by T.D. ATF-172, 
49 FR 14943, Apr. 16, 1984; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]



Sec.  27.137  Retention.

    All records required by this part, documents or copies of documents 
supporting these records, and file copies of reports required by this 
part, must be retained for not less than three years, and during this 
period must be available, during business hours, for inspection and 
copying by appropriate TTB or Customs officers. Furthermore, the 
appropriate TTB officer may require these records to be kept for an 
additional period of not more than three years in any case where the 
appropriate TTB officer determines retention necessary or advisable. Any 
records, or copies thereof, containing any of the information required 
by this part to be prepared, wherever kept, must also be made available 
for inspection and copying.

[T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]

                              Other Records



Sec.  27.138  Transfer record.

    The transfer record for imported spirits prescribed in Sec.  27.172 
shall show the:
    (a) Date prepared;
    (b) Serial number of the transfer record, beginning with ``1'' each 
January 1;
    (c) Name and distilled spirits plant number of the proprietor who 
received the spirits from customs custody;
    (d) Country of origin;
    (e) Name of foreign producer;
    (f) Kind of spirits;
    (g) Age, in years, months and days of the spirits;
    (h) Proof of the spirits;
    (i) Type and number of containers; and
    (j) Proof gallons of spirits in the shipment.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8558, Mar. 1, 1985]



Sec.  27.139  Package gauge record.

    When required in this part, a package gauge record shall be prepared 
to show:
    (a) The date prepared;
    (b) The related transaction record and its serial number; and
    (c) For each package:
    (1) Package identification or serial number;
    (2) Kind of spirits;
    (3) Gross weight;
    (4) Proof;
    (5) Proof gallons;
    (6) Name of warehouseman who received the spirits from customs 
custody; and
    (7) Name of importer.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8558, Mar. 1, 1985]



Sec.  27.140  Certification requirements for wine.

    (a) Definitions. When used in this section, the following terms have 
the meaning indicated:
    Affiliate means any one of two or more persons if one of such 
persons has actual or legal control, directly or indirectly, whether by 
stock ownership or otherwise, of the other or others of such persons, 
and includes a winery's parent or subsidiary or any other entity in 
which the winery's parent or subsidiary has a controlling ownership 
interest. An affiliate also means any one of two or more persons subject 
to common control, actual or legal, directly or indirectly, whether by 
stock ownership or otherwise.
    Importer means any person importing wine who must obtain a permit as 
provided in Sec.  27.55.
    Natural wine means the product of the juice or must of sound, ripe 
grapes or other sound, ripe fruit (including berries) made with any 
cellar treatment authorized by subparts F and L of part 24 of this 
chapter and containing not more than 21 percent by weight (21

[[Page 794]]

degrees Brix de-alcoholized wine) of total solids.
    Produced, when used with reference to wine, means removed from the 
fermenter.
    Proper cellar treatment means a production practice or procedure 
authorized by subparts F and L of part 24 of this chapter and, in the 
case of natural wine produced and imported subject to an international 
agreement or treaty, those practices and procedures acceptable to the 
United States under that agreement or treaty.
    (b) Certification--(1) General. Except as otherwise provided in 
paragraph (b)(2) of this section, an importer of natural wine must have 
an original or copy of a certification from the producing country 
stating that the practices and procedures used to produce the imported 
wine constitute proper cellar treatment. The certification:
    (i) Must be from a governmental or government-approved entity having 
oversight or control over enological practices in the producing country 
under the laws of that country;
    (ii) Must include the results of a laboratory analysis of the wine 
conducted either by a government laboratory of the producing country or 
by a laboratory certified by the government of the producing country; 
and
    (iii) Must be in the possession of the importer at the time of 
release of the wine from customs custody and may cover multiple 
importations provided that the wine in each case is of the same brand 
and class or type, was made by the same producer, was subjected to the 
same cellar treatment, and conforms to the statements made on the 
certification.
    (2) Alternative certifications and exemptions--(i) The following are 
alternatives to the producing country certification and laboratory 
analysis requirement described in paragraph (b)(1) of this section:
    (A) In the case of natural wine produced and imported subject to an 
international agreement or treaty specifying that the practices and 
procedures used to produce the wine are acceptable to the United States, 
no producing country certification and laboratory analysis is required, 
unless that international agreement or treaty requires a certification, 
in which case the importer must have in his or her possession at the 
time of release of the wine from customs custody an original or copy of 
that certification.
    (B) If an importer of natural wine or its affiliate owns or controls 
a winery operating under a basic permit issued under part 1 of this 
chapter, in lieu of a producing country certification and laboratory 
analysis, the importer may self-certify that the practices and 
procedures used to produce the wine constitute proper cellar treatment. 
The self-certification must be either in the format set forth in 
paragraph (c) of this section with blocks 1 through 4 completed or in an 
alternative format that sets forth the same information, and it must be 
in the possession of the importer at the time of release of the wine 
from customs custody. In the case of self-certification the importer 
also must have at the time of release from customs custody records to 
establish that the requirements for self-certification are met.
    (ii) The following are exempt from any certification requirement 
under this section:
    (A) Natural wine produced before January 1, 2005. However, in this 
case, the importer must have in his or her possession at the time of 
release of the wine from customs custody records to establish that the 
wine was produced before January 1, 2005.
    (B) Importations of natural wine that are of a personal, non-
commercial nature. Examples of non-commercial importations include 
importations by travelers, gift shipments between individuals, and 
importations by diplomats for embassy or consular use.
    (C) Importations of natural wine that constitute commercial samples. 
Commercial samples include sales samples, samples for trade shows, and 
samples for laboratory analysis.
    (D) Imported natural wine held on board international passenger 
carriers, such as cruise ships or airliners.
    (c) Form. The format for certification referred to in paragraph (b) 
of this section is the following:

[[Page 795]]

[GRAPHIC] [TIFF OMITTED] TR24AU05.000

    (d) Preparation of Certification. The following rules apply for the 
completion of the certification set forth in paragraph (c) of this 
section:
    (1) Block 1 must state the legal name and address (including 
country) of the producer of the wine.

[[Page 796]]

    (2) Block 2 must include a complete description of the wine, 
including its brand name, year of production, class or type, and country 
of origin.
    (3) The importer must check the applicable box in block 3:
    (i) The importer must check box 3a and ensure that blocks 4 and 5 
are completed if no alternative certification applies to the wine under 
paragraph (b)(2)(i) of this section.
    (ii) If paragraph (b)(2)(i)(B) applies to the wine, the importer 
must check box 3b and complete the certification in block 4.
    (4) If the certification is submitted subsequent to approval of a 
label, the importer must complete block 6 by including the TTB 
identification number from the certificate of label approval, TTB Form 
5100.31.

[T.D. TTB-31, 70 FR 49483, Aug. 24, 2005]

Subparts J-K [Reserved]



 Subpart L_Transfer of Distilled Spirits From Customs Custody to Bonded 
                   Premises of Distilled Spirits Plant



Sec.  27.171  General provisions.

    Imported distilled spirits in bulk containers may, under the 
provisions of this subpart, be withdrawn by the proprietor of a 
distilled spirits plant from customs custody and transferred in such 
bulk containers or by pipeline to the bonded premises of his plant, 
without payment of the internal revenue tax imposed on imported spirits 
by 26 U.S.C. 5001. Imported spirits so withdrawn and transferred to a 
distilled spirits plant (a) may be redistilled or denatured only if of 
185 degrees or more of proof, and (b) may be withdrawn from internal 
revenue bond for any purpose authorized by 26 U.S.C. chapter 51, in the 
same manner as domestic distilled spirits. Imported distilled spirits 
transferred from customs custody to the bonded premises of a distilled 
spirits plant under the provisions of this subpart shall be received and 
stored thereat, and withdrawn or transferred therefrom, subject to the 
applicable provisions of 27 CFR part 19. However, distilled spirits 
plant proprietors are not required to file application on TTB Form 
5100.16 to receive imported spirits from customs custody. The person 
operating the bonded premises of the distilled spirits plant to which 
imported spirits are transferred shall become liable for the tax on 
distilled spirits withdrawn from customs custody under 26 U.S.C. 5232, 
upon release of the spirits from customs custody, and the importer shall 
thereupon be relieved of his liability for such tax.

(Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232))

[T.D. ATF-62, 44 FR 71719, Dec. 11, 1979, as amended by T.D. ATF-198, 50 
FR 8558, Mar. 1, 1985]



Sec.  27.172  Preparation of transfer record and package gauge record.

    The person importing spirits under this subpart shall prepare a 
transfer record according to Sec.  27.138. A separate transfer record 
shall be prepared for each conveyance. If the spirits are in packages he 
shall prepare a package gauge record according to Sec.  27.139 and 
attach it to the transfer record. The transfer record and the package 
gauge record shall be prepared in triplicate, and, upon release of the 
spirits from customs custody one copy will be given to the customs 
officer, one copy will be forwarded to the appropriate TTB officer, and 
the original will be forwarded to the consignee.

(Approved by the Office of Management and Budget under control number 
1512-0250)

[T.D. ATF-198, 50 FR 8558, Mar. 1, 1985, as amended by T.D. ATF-474, 67 
FR 11232, Mar. 13, 2002]



Sec.  27.173  Inspection and release.

    The customs officer shall not release distilled spirits under this 
subpart until he inspects the spirits. If it appears that losses in 
transit were sustained from any container, the customs officer shall 
gauge the spirits in such container and enter the elements of gauge on 
the transfer record if the spirits are in a bulk conveyance or on the 
package gauge record if the spirits are in packages. The customs officer 
shall enter on the transfer record the port of entry, carrier 
identification, warehouse entry number, applicable rate of duty, and 
serial number of any customs seals affixed to bulk conveyances. When all

[[Page 797]]

customs requirements are complied with, he shall release the spirits for 
transfer to the distilled spirits plant by dating and signing on the 
transfer with his title the statement: ``To the best of my knowledge the 
information hereon is accurate and the spirits are released.'' The 
original of the transfer record with any attachments shall be retained 
by the consignee.

(Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232))

[T.D. ATF-198, 50 FR 8558, Mar. 1, 1985]



Sec.  27.174  Tank cars and tank trucks to be sealed.

    Where a shipment of distilled spirits from customs custody to the 
distilled spirits plant is made in a tank car or tank truck, all 
openings affording access to the spirits shall be sealed by the customs 
officer with customs seals in such manner as will prevent unauthorized 
removal of spirits through such openings without detection.

(72 Stat. 1314, 1322, 1366; 26 U.S.C. 5001, 5007, 5232)

[T.D. 6477, 25 FR 6208, July 1, 1960. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec.  27.175  Receipt by consignee.

    Proprietors of distilled spirits plants who receive imported spirits 
under this subpart shall follow the requirements in 27 CFR part 19 for 
spirits received by transfer in bond. However, proprietors are not 
required to file application on TTB Form 5100.16 to receive imported 
spirits from customs custody.

[T.D. ATF-198, 50 FR 8558, Mar. 1, 1985]



Subpart M_Withdrawal of Imported Distilled Spirits From Customs Custody 
                Free of Tax for Use of the United States

    Source: 50 FR 9200, Mar. 6, 1985, unless otherwise noted.



Sec.  27.181  General.

    (a) The United States or any of its Government agencies may, upon 
filing proper customs entry, withdraw imported distilled spirits free of 
tax from customs custody, as authorized by 26 U.S.C. 5313 and under the 
provisions of this subpart. Before any distilled spirits may be 
withdrawn, a permit to procure the spirits shall be obtained from the 
appropriate TTB officer. A bond is not required for any Government 
agency to procure and withdraw spirits free of tax under this subpart.
    (b) The provisions of subpart N of part 22 of this chapter cover the 
withdrawal of domestically produced tax-free spirits for use of the 
United States or any of its Government agencies.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1372, as amended, 1375, as amended 
(26 U.S.C. 5273, 5313))



Sec.  27.182  Application and permit, Form 5150.33.

    (a) General. All permits previously issued to the United States or 
any of its Government agencies on Form 1444 shall remain valid and will 
be regulated by the same provisions of this subpart as it refers to 
permits on Form 5150.33.
    (b) Application. (1) A Government agency of the United States must 
apply for a permit to procure and withdraw spirits free of tax on Form 
5150.33. Upon approval by the appropriate TTB officer, Form 5150.33 will 
be returned to the agency.
    (2) If a Government agency intends to withdraw spirits free of tax 
under this part and part 22 of this chapter, Form 5150.33 may be 
annotated to cover both types of withdrawals.
    (3) A separate permit is not required for each port of entry. The 
application, Form 5150.33, may be completed to indicate the applicable 
ports of entry in which spirits will be withdrawn from customs custody.
    (4) A Government agency may specify on its application that it 
desires a single permit authorizing all sub-agencies under its control 
to procure and withdraw spirits free of tax under this subpart and 
subpart N of part 22 of this chapter; or, each Government location may 
individually file an application for a permit, Form 5150.33.
    (5) Each application for a permit shall be signed by the head of the 
agency or sub-agency, or the incumbent of an office which is authorized 
by the head of the agency or sub-agency, to sign. Evidence of 
authorization to sign on behalf of the head of an agency or

[[Page 798]]

sub-agency shall be furnished with the application.
    (c) Use of spirits. Spirits withdrawn under this subpart may not be 
used for non-Government purposes.
    (d) Cancellation of permit. All permits on Form 5150.33 and previous 
editions on Form 1444 remain in force until surrendered or canceled. 
Upon surrender or cancellation, the Government agency must obtain and 
destroy all photocopies of the permit furnished to port directors of 
Customs, and forward the original to the appropriate TTB officer for 
cancellation.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313))

[50 FR 9200, Mar. 6, 1985, as amended by T.D. ATF-474, 67 FR 11232, Mar. 
13, 2002]



Sec.  27.183  Use of permit, Form 5150.33.

    Each Government agency shall retain the original of its permit, Form 
5150.33, on file. When filing an initial customs entry to withdraw 
spirits free of tax from a port of entry, the agency shall furnish a 
photocopy of its permit to the district director of customs for 
retention. In the case of an agency holding a single permit for use of 
its sub-agencies, an attachment to the permit shall list all locations 
authorized to withdraw spirits free of tax from customs custody. Any 
subsequent requests for customs entry from the same port shall refer to 
the permit number.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313))



Sec.  27.184  Entry documents.

    Entry documents for importation of tax-free spirits under this 
subpart shall record the serial numbers or other identifying numbers of 
the containers and the total quantity in proof gallons of the spirits to 
be entered.

[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985]



Sec.  27.185  Customs release.

    (a) Upon receipt of appropriate customs entry and a photocopy of a 
permit, Form 5150.33 or previous editions on Form 1444 (5150.33), the 
district director of customs shall, following an inspection of the 
shipment, release spirits free of tax to the Government agency named on 
the permit, or an attachment thereto.
    (b) Customs officers shall not release spirits for shipment until 
the shipment has been inspected for losses in transit. If it appears 
that a container or containers have sustained losses in transit, the 
customs officers shall gauge the damaged container and prepare a package 
gauge record for the entire shipment, according to Sec.  27.139. A copy 
of the package gauge record will be retained for the customs files and 
the original forwarded to the consignee agency.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313))



                Subpart N_Requirements for Liquor Bottles

    Authority: Sec. 5301, 72 Stat. 1374; 26 U.S.C. 5301.

    Source: T.D. 6954, 33 FR 6819, May 4, 1968, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975.



Sec.  27.201  Scope of subpart.

    The provisions of this subpart shall apply only to liquor bottles 
having a capacity of 200 ml. or more except where expressly applied to 
liquor bottles of less than 200 ml. capacity.

[T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-34, 41 FR 46865, Oct. 26, 1976]



Sec.  27.202  Standards of fill.

    Distilled spirits imported into the United States in containers of 1 
gallon (3.785 liters) or less for sale shall be imported only in liquor 
bottles, including liquor bottles of less than 200 ml capacity, which 
conform to the applicable standards of fill provided in Sec.  5.47a of 
this chapter. Empty liquor bottles, including liquor bottles of less 
than 200 ml capacity, which conform to the provisions of part 19, or 
subpart E of part 5 of this chapter, may be imported for packaging 
distilled spirits in the United States as provided in part 19 of this 
chapter.

[T.D. ATF-62, 44 FR 71720, Dec. 11, 1979]

[[Page 799]]



Sec.  27.204  Distinctive liquor bottles.

    (a) Application. Liquor bottles of distinctive shape or design, 
including bottles of less than 200 ml. capacity, may be imported by an 
importer (filled bottles) or a bottler (empty bottles). For filled 
bottles, the importer shall submit TTB Form 5100.31 for approval prior 
to importation of such bottles into the United States. For empty 
bottles, the bottler shall obtain approval from the appropriate TTB 
officer on TTB Form 5100.31 prior to using the bottles. The importer or 
bottler, as applicable, shall certify as to the total capacity of a 
representative sample bottle before closure (expressed in milliliters) 
on each copy of the form. In addition, the applicant shall affix a 
readily legible photograph (both front and back of the bottle to the 
front of each copy of TTB Form 5100.31, along with the label(s) to be 
used on the bottle. The applicant shall not submit an actual bottle or 
an authentic model unless specifically requested to do so.
    (b) Approval. Properly submitted TTB Forms 5100.31 to import 
distinctive liquor bottles (filled), or, properly submitted TTB Forms 
5100.31 to use distinctive liquor bottles (empty) which have been 
imported, shall be approved provided such bottles are found by the 
appropriate TTB officer to--
    (1) Meet the requirements of 27 CFR part 5;
    (2) Be distinctive;
    (3) Be suitable for their intended purpose;
    (4) Not jeopardize the revenue; and
    (5) Not be deceptive to the consumer.

The applicant shall keep a copy of the approved TTB Form 5100.31, 
including an approved photograph (both front and back) of the 
distinctive liquor bottle, on file at his premises. If TTB Form 5100.31 
is disapproved, the applicant shall be notified of the appropriate TTB 
officer decision and the reasons therefor. The applicant importer is 
responsible for furnishing a copy of the approved TTB Form 5100.31, 
including a photograph of the distinctive liquor bottle, to Customs 
officials at each affected port of entry where the merchandise is 
examined.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-114, 47 FR 43951, Oct. 5, 1982, as amended by T.D. ATF-242, 51 
FR 39526, Oct. 29, 1986; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]



Sec.  27.205  [Reserved]



Sec.  27.206  Bottles not constituting approved containers.

    The appropriate TTB officer is authorized to disapprove any bottle, 
including a bottle of less than 200 ml. capacity, for use as a liquor 
bottle which he determines to be deceptive. The Customs officer at the 
port of entry shall deny entry of any such bottle containing distilled 
spirits upon advice from the appropriate TTB officer that such bottle is 
not an approved container for distilled spirits for consumption in the 
United States.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-114, 47 FR 43951, Oct. 5, 1982]



Sec.  27.207  Bottles to be used for display purposes.

    Empty liquor bottles may be imported and furnished to liquor dealers 
for display purposes, provided each bottle is marked to show that it is 
to be used for such purpose. The importer shall keep records of the 
receipt and disposition of such bottles, showing the names and addresses 
of consignees, dates of shipment, and size, quantity, and description of 
bottles.

[T.D. ATF-206, 50 FR 23956, June 7, 1985]



Sec.  27.208  Liquor bottles denied entry.

    Filled liquor bottles, not conforming to the provisions of this 
subpart, shall be denied entry into the United States: Provided, That, 
upon letterhead application, in triplicate, the appropriate TTB officer 
may, in nonrecurring cases, authorize the release from customs custody 
of distilled spirits in bottles, except those coming under the 
provisions of Sec.  27.206, which, through unintentional error, do not 
conform to the provisions of this subpart, if he

[[Page 800]]

finds that such release will not afford a jeopardy to the revenue.

(Approved by the Office of Management and Budget under control number 
1512-0352)

[T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. 
ATF-474, 67 FR 11232, Mar. 13, 2002]



Sec.  27.209  Used liquor bottles.

    The appropriate TTB officer may pursuant to letterhead application 
filed in triplicate, authorize an importer to receive liquor bottles 
assembled for him as provided in Sec.  31.263 of this chapter. Used 
liquor bottles so received may be stored at any suitable location 
pending exportation for reuse. The importer shall keep records of the 
receipt and disposition of used liquor bottles.

(Approved by the Office of Management and Budget under control number 
1512-0352]

[T.D. 6954, 33 FR 6819, May 4, 1968, as amended by T.D. 7006, 34 FR 
2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and 
amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. TTB-25, 70 FR 
19883, Apr. 15, 2005]



                   Subpart O_Miscellaneous Provisions



Sec.  27.221  Alternate methods or procedures.

    (a) Application. An importer who desires to use an alternate method 
or procedure in lieu of a method or procedure prescribed by this part 
must file an application, in triplicate, with the appropriate TTB 
officer. Each application must:
    (1) Specify the name, address, and permit number of the importer to 
which it relates;
    (2) State the purpose for which filed; and
    (3) Specifically describe the alternate method or procedure and set 
forth the reasons therefor.

No alternate method or procedure relating to the assessment, payment, or 
collection of tax shall be authorized under this paragraph.
    (b) Approval. When an application for use of an alternate method or 
procedure is received, the appropriate TTB officer must determine 
whether approval thereof would unduly hinder the effective 
administration of this part or would result in jeopardy to the revenue. 
The appropriate TTB officer may approve the alternate method or 
procedure if such officer finds that:
    (1) Good cause has been shown for the use of the alternate method or 
procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure, and affords equivalent security to the revenue; and
    (3) The alternate method or procedure will not be contrary to any 
provision of law, and will not result in an increase in cost to the 
Government or hinder the effective administration of this part.

No alternate method or procedure shall be used until approval has been 
received from the appropriate TTB officer. Authorization for the 
alternate method or procedure may be withdrawn whenever in the judgment 
of the appropriate TTB officer, the revenue is jeopardized or the 
effective administration of this part is hindered by the continuation of 
such authorization.

(Approved by the Office of Management and Budget under control number 
1512-0352)

[T.D. ATF-2, 37 FR 22743, Oct. 21, 1972. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; 
T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]



PART 28_EXPORTATION OF ALCOHOL--Table of Contents




                             Subpart A_Scope

Sec.
28.1 General.
28.2 Forms prescribed.
28.3 Related regulations.
28.4 Delegations of the Administrator.

                          Subpart B_Definitions

28.11 Meaning of terms.

[[Page 801]]

                   Subpart C_Miscellaneous Provisions

      Withdrawal or Lading for Use on Certain Vessels and Aircraft

28.20 Alternate methods or procedures; and emergency variations from 
          requirements.
28.21 General.
28.22 Vessels employed in the fisheries.
28.23 Reciprocating foreign countries.

                     Manufacturing Bonded Warehouses

28.25 General.

                        Customs Bonded Warehouses

28.26 Entry of distilled spirits into customs bonded warehouses.
28.27 Entry of wine into customs bonded warehouses.
28.28 Withdrawal of wine and distilled spirits from customs bonded 
          warehouses.

                           Foreign-Trade Zones

28.30 Export status.

 Voluntary Destruction of Liquors After Receipt in a Foreign-Trade Zone

28.35 General.
28.36 Application.
28.37 Action by appropriate TTB officer.
28.38 Action by district director of customs.

                     Evidence of Exportation and Use

28.40 Evidence of exportation: distilled spirits and wine.
28.41 Evidence of lading for use on vessles or aircraft: distilled 
          spirits and wine.
28.42 Evidence of deposit.
28.43 Evidence of exportation and lading for use on vessels and 
          aircraft: beer.

                          Retention of Records

28.45 Retention of records.

                          Penalties of Perjury

28.48 Execution under penalties of perjury.

                 Subpart D_Bands and Consents of Surety

28.51 General.
28.52 Corporate surety.
28.52a Filing of powers of attorney.
28.52b Execution of powers of attorney.
28.53 Deposit of securities in lieu of corporate surety.
28.54 Consents of surety.
28.55 Authority to approve bonds and consents of surety.
28.56 Disapproval of bonds or consents of surety.
28.57 Appeal to Administrator.
28.58 Operations or unit bond--distilled spirits.
28.59 Bond, Form 5120.36.
28.60 Brewer's bond, Form 5130.22.
28.61 Bond, Form 2734 (5100.25).
28.62 Bond, Form 2735 (5100.30).
28.63 Bond, Form 2736 (5100.12).
28.64 Bond, Form 2737 (5110.67).
28.65 Bond, Form 2738 (5110.68).
28.66 Strengthening bonds.
28.67 New or superseding bonds.

                          Termination of Bonds

28.70 Termination of bonds, Forms 2734 (5120.25) and 2736 (5100.12).
28.71 Termination of bonds, Forms 2735 (5100.30), 2737 (5110.67), and 
          2738 (5110.68).
28.72 Application of surety for relief from bond.
28.73 Relief of surety from bond.
28.74 Release of pledged securities.

                           Charges and Credits

28.80 Charges and credits on bonds.

  Subpart E_Withdrawal of Distilled Spirits Without Payment of Tax for 
 Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade 
       Zone, or Transportation to a Manufacturing Bonded Warehouse

28.91 General.
28.92 Application or notice, TTB Form 5100.11.
28.93 Carrier to be designated.
28.94 Containers.
28.95 Change of packages for exportation.
28.96 Approval of application.
28.97 [Reserved]
28.98 Inspection and regauge.
28.100 [Reserved]
28.101 Packages to be stamped.
28.102 Bottles to have closures affixed.
28.103 Export marks.
28.104 Certificates of origin.
28.105 Report of inspection and tax liability.
28.106 Consignment, shipment, and delivery.
28.107 Disposition of forms.

                                 Losses

28.110 Losses.

                  Return of Spirits to Bonded Premises

28.115 General.
28.116 Notice of return of spirits withdrawn without payment of tax.
28.117 Responsibility for return of spirits.
28.118 Receipt of spirits.

Subpart F_Withdrawal of Wine Without Payment of Tax for Exportation, Use 
   on Vessels and Aircraft, Transfer to a Foreign-Trade Zone or to a 
 Customs Bonded Warehouse, or Transportation to a Manufacturing Bonded 
                                Warehouse

28.121 General.
28.122 Application or notice, TTB Form 5100.11.

[[Page 802]]

28.123 Export marks.
28.124 Consignment, shipment, and delivery.
28.125 Disposition of forms.
28.126 Proprietor's report.
28.127 Losses.

                  Return of Wines to Bonded Wine Cellar

28.130 General.
28.131 Application for return of wines withdrawn without payment of tax.
28.132 Responsibility for return of wine.
28.133 Disposition of forms.

 Subpart G_Removal of Beer and Beer Concentrate Without Payment of Tax 
for Exportation, Use as Supplies on Vessels and Aircraft, or Transfer to 
                          a Foreign-Trade Zone

28.141 General.
28.142 Notice, Form 1689.
28.143 Containers.
28.144 Export marks.
28.145 Consignment, shipment and delivery.
28.146 Disposition of forms.
28.147 Return of beer or beer concentrate.
28.148 Brewer's report.
28.149 Losses.
28.150 Charges and credits on bond.

 Subpart H_Withdrawal of Specially Denatured Spirits, Free of Tax, for 
             Exportation or Transfer to a Foreign-Trade Zone

28.151 General.
28.152 Notice, TTB Form 5100.11.
28.153 Withdrawal procedure.
28.154 Export marks.
28.155 Consignment, shipment, and delivery.
28.156 Losses.

        Return of Specially Denatured Spirits to Bonded Premises

28.160 General.
28.161 Notice of return of specially denatured spirits.
28.162 Responsibility for return of specially denatured spirits.
28.163 Receipt of specially denatured spirits.

   Subpart I_Exportation of Distilled Spirits With Benefit of Drawback

28.171 General.

                      Filing of Notice and Removal

28.190 Notice, TTB Form 5110.30.
28.191 [Reserved]
28.192 Packages of distilled spirits to be gauged.
28.193 Export marks.
28.194-28.195 [Reserved]
28.195b Claims on spirits tax determined on and after January 1, 1980.
28.196 Consignment, shipment, and delivery.
28.197 Return of spirits withdrawn for export with benefit of drawback.
28.198 Notice of return.
28.199 Responsibility for return of spirits withdrawn for export with 
          benefit of drawback.

Subpart J [Reserved]

         Subpart K_Exportation of Wine With Benefit of Drawback

28.211 General.
28.212 Persons authorized.
28.213 [Reserved]
28.214 Notice and claim, Form 1582-A (5120.24).
28.215 Certificate of tax determination, Form 2605 (5120.20).
28.216 Export marks.
28.217 Consignment, shipment, and delivery.
28.218 Disposition of Forms 1582-A (5120.24).
28.219 Return of wine withdrawn for export with benefit of drawback.
28.220 Notice of return.
28.220a Responsibility for return of wine withdrawn for export with 
          benefit of drawback.

         Subpart L_Exportation of Beer With Benefit of Drawback

28.221 General.
28.222 Claim, Form 1582-B (5130.6).
28.223 Export marks.

                           Execution of Claims

28.225 Removals of beer by brewer.
28.226 Removals of beer by agent on behalf of brewer.
28.227 Removals of beer by persons other than the brewer or agent of the 
          brewer.

                   Consignment, Shipment, and Delivery

28.230 Consignment, shipment, and delivery.

                Subpart M_Shipment or Delivery for Export

                               Consignment

28.241 Shipment for export, or for use on vessels.
28.242 Shipment for use on aircraft.
28.243 Shipment to armed services.
28.244 Shipment to manufacturing bonded warehouse.
28.244a Shipment to a customs bonded warehouse.
28.245 Shipment to foreign-trade zone.
28.246 Delivery for shipment.
28.247 Change in consignee.

                             Bills of Lading

28.250 Bills of lading required.
28.251 Railway express receipts.
28.252 Air express or freight bills of lading.
28.253 Certificate by export carrier.

[[Page 803]]

                Subpart N_Proceedings at Ports of Export

28.261 Notice to district director of customs.
28.262 Delay in lading at port.
28.263 [Reserved]
28.264 Lading for exportation.
28.265 Evidence of fraud.
28.266 Release of detained merchandise.
28.267 Exportation from interior port.
28.268 Receipt for liquors for use on vessels or aircraft.
28.269 Certification by district director of customs.

                        Receipt by Armed Services

28.275 Receipt by armed services.

                       Lading for Use on Aircraft

28.280 Distilled spirits and wines.
28.281 Certificate of use for distilled spirits and wines.
28.282 Beer.

                Receipt in Manufacturing Bonded Warehouse

28.285 Receipt in manufacturing bonded warehouse.

                   Receipt in Customs Bonded Warehouse

28.286 Receipt in customs bonded warehouse.

                      Receipt in Foreign-Trade Zone

28.290 Receipt in foreign-trade zone.

                              Customs Gauge

28.291 Customs Form 6001.

                          Alternate Procedures

28.295 Exception for export of beer.

                            Subpart O_Losses

                            Distilled Spirits

28.301 Loss of distilled spirits in transit.
28.302 Notice to exporter.
28.303 Filing of claims.
28.304 Action on claim.

                       Specially Denatured Spirits

28.310 Loss of specially denatured spirits in transit.

                                  Wine

28.315 Loss of wine in transit.
28.316 Notice to exporter.
28.317 Filing of claims.
28.318 Action on claim.

                        Beer and Beer Concentrate

28.320 Loss of beer and beer concentrate in transit.
28.321 Tax assessed on loss not accounted for.

                       Subpart P_Action on Claims

28.331 Claims supported by bond, Form 2738 (5110.68).
28.332 Claim against bond.
28.333 Where no bond is filed.
28.334 Credit allowance.
28.335 Disallowance of claim.

    Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 
5007, 5008, 5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 5122, 5124, 
5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 U.S.C. 
203, 205; 44 U.S.C. 3504(h).

    Source: 25 FR 5734, June 23, 1960, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by 
T.D. TTB-8, 69 FR 3834, Jan. 27, 2004

    Editorial Note: Nomenclature changes to part 28 appear at 67 FR 
18087 through 18090, Apr. 15, 2002.



                             Subpart A_Scope



Sec.  28.1  General.

    The regulations in this part relate to exportation, lading for use 
on vessels and aircraft, and the transfer to a foreign-trade zone or a 
manufacturing bonded warehouse, class 6, of distilled spirits (including 
specially denatured spirits), beer, and wine, and in the case of 
distilled spirits and wine only, transfer to a customs bonded warehouse 
as provided for in 26 U.S.C. 5066 and 5362, whether without payment of 
tax, free of tax, or with benefit of drawback, and includes requirements 
with respect to removal, shipment, lading, deposit, evidence of 
exportation, losses, claims, and bonds.

[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981]



Sec.  28.2  Forms prescribed.

    (a) The Appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part. The 
form will be filed in accordance with the instructions for the form.
    (b) Forms may be requested from the ATF Distribution Center, P.O. 
Box 5950, Springfield, Virginia 22150-5950, or

[[Page 804]]

by accessing the TTB Web site (http://www.ttb.gov).

(5 U.S.C. 552(a) (80 Stat. 383, as amended))

[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. 
ATF-477, 67 FR 18087, Apr. 15, 2002; T.D. TTB-8, 69 FR 3831, Jan. 27, 
2004]



Sec.  28.3  Related regulations.

    Regulations relating to this part are listed below:

19 CFR Chapter I--Customs Regulations
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol 
Administration Act
27 CFR Part 4--Labeling and Advertising of Wine
27 CFR Part 19--Distilled Spirits Plants
27 CFR Part 21--Formulas for Denatured Alcohol and Rum
27 CFR Part 24--Wine
27 CFR Part 25--Beer
27 CFR Part 30--Gauging Manual
27 CFR Part 31--Alcohol Beverage Dealers
31 CFR Part 225--Acceptance of Bonds, Notes, or Other Obligations Issued 
or Guaranteed by the United States as Security in Lieu of Surety of 
Sureties on Penal Bonds

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; as amended by T.D. ATF-299, 55 
FR 25033, June 19, 1990; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005]



Sec.  28.4  Delegations of the Administrator.

    Most of the regulatory authorities of the Administrator contained in 
this part are delegated to appropriate TTB officers. These TTB officers 
are specified in TTB Order 1135.28, Delegation of the Administrator's 
Authorities in 27 CFR Part 28, Exportation of Alcohol. You may obtain a 
copy of this order by accessing the TTB Web site (http://www.ttb.gov) or 
by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. TTB-44, 71 FR 16946, Apr. 4, 2006]



                          Subpart B_Definitions



Sec.  28.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.28, Delegation of the Administrator's Authorities in 27 CFR part 
28, Exportation of Alcohol.
    Beer. Beer, ale, porter, stout, and other similar fermented 
beverages (including sake or similar products) of any name or 
description containing one-half of 1 percent or more of alcohol by 
volume, brewed or produced from malt, wholly or in part, or from any 
substitute therefor.
    Bonded premises--distilled spirits plant. The premises of a 
distilled spirits plant, or part thereof, on which distilled spirits 
operations defined in 26 U.S.C. 5002 are authorized to be conducted.
    Bonded wine cellar. Premises established under part 24 of this 
chapter for the production, blending, cellar treatment, storage, 
bottling, packaging, or repackaging of untaxpaid wine.
    Brewer. A proprietor of a brewery.
    Brewery. Premises established under part 25 of this chapter for the 
production of beer.
    Bulk container. any container having a capacity of more than 1 
gallon.
    CFR. The Code of Federal Regulations.
    Container. Any receptacle, vessel, or any form of package, bottle, 
can, tank, or pipeline used, or capable of being used, for holding, 
storing, transferring, or conveying liquors.
    Customs bonded warehouse. A customs bonded warehouse, class 2, 3, or 
8, established under the provisions of Customs Regulations (19 CFR 
chapter I).

[[Page 805]]

    Customs officer. Any officer of the Customs Service or any 
commissioned, warrant, or petty officer of the Coast Guard, or any agent 
or other person authorized by law or designated by the Secretary of the 
Treasury to perform the duties of an officer of the Customs Service.
    Delegate. Any officer, employee, or agency of the Department of the 
Treasury authorized by the Secretary of the Treasury directly, or 
indirectly by one or more redelegations of authority, to perform the 
function mentioned or described in the context.
    District director of customs. The district director of customs at a 
headquarters port of the district (except the district of New York, NY), 
the area directors of customs in the district of New York, NY, and the 
port director at a port not designated as a headquarters port.
    Distilled spirits or spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine, in any form (including all dilutions and 
mixtures thereof, from whatever source or by whatever process produced) 
but not denatured spirits.
    Distilled spirits plant. An establishment qualified under the 
provisions of part 19 of this chapter for the production, warehousing, 
or processing of spirits, or for authorized combinations of such 
operations.
    Executed under penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to the return, claim, form, or other document or, where no form 
of declaration is prescribed, with the declaration:

    I declare under the penalties of perjury that this ---------- 
(insert type of document such as statement, report, certificate, 
application, claim, or other document), including the documents 
submitted in support thereof, has been examined by me and, to the best 
of my knowledge and belief, is true, correct, and complete.

    Exportation. A severance of goods from the mass of things belonging 
to the United States with the intention of uniting them to the mass of 
things belonging to some foreign country and shall include shipments to 
any possession of the United States. The export character of any 
shipment shall be determined by the intention with which it is made, and 
it assumes an export character only when destined for use in a foreign 
country or in a possession of the United States. For the purposes of 
this part, shipments to the Commonwealth of Puerto Rico, to the 
territories of the Virgin Islands, American Samoa and Guam, and to the 
Panama Canal Zone shall also be treated as exportations.
    Foreign-trade zone or zone. A foreign-trade zone established and 
operated pursuant to the Act of June 18, 1934, as amended.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    Liquor. Distilled spirits, wines, and/or beer.
    Liter. A metric unit of capacity equal to 1,000 cubic centimeters of 
alcoholic beverage, and equivalent to 33.814 fluid ounces. A liter is 
divided into 1,000 milliliters. Milliliter or milliliters may be 
abbreviated as ``ml''.
    Manufacturing bonded warehouse. A manufacturing bonded warehouse, 
class six, established under the provisions of Customs Regulations (19 
CFR, chapter I).
    Package. Any cask, keg, barrel, drum, or similar portable container.
    Person. An individual, a trust, an estate, a partnership, an 
association, a company, or a corporation.
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A gallon at 60 degrees Fahrenheit which contains 50 
percent by volume of ethyl alcohol having a specific gravity of 0.7939 
at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as 
unity, or the alcoholic equivalent thereof.
    Proprietor. The person who operates the brewery, distilled spirits 
plant, bonded wine cellar, taxpaid wine bottling house, or manufacturing 
bonded warehouse, as the case may be, referred to in this part.
    Secretary. The Secretary of the Treasury or his delegate.

[[Page 806]]

    Specially denatured spirits. Alcohol or rum, as defined in part 21 
of this chapter, denatured pursuant to the formulas authorized in part 
21 for specially denatured alcohol or rum.
    Tank truck. A tank-equipped semi-trailer, trailer, or truck.
    Tax. The distilled spirits tax, the beer tax, or the applicable wine 
tax, as the case may be, imposed by 26 U.S.C. chapter 51.
    U.S.C. The United States Code.
    Wine. All kinds and types of wine having not in excess of 24 percent 
of alcohol by volume.
    Zone operator. The person to which the privilege of establishing, 
operating, and maintaining a foreign-trade zone has been granted by the 
Foreign-Trade Zones Board created by the Act of June 18, 1934, as 
amended.

(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended 
(27 U.S.C. 205))

[T.D. ATF-48, 43 FR 13552, Mar. 31, 1978, as amended by T.D. ATF-51, 43 
FR 24243, June 2, 1978; 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 FR 
71720, Dec. 11, 1979; T.D. ATF-199, 50 FR 9201, Mar. 6, 1985; T.D. ATF-
224, 51 FR 7698, Mar. 5, 1986; T.D. ATF-477, 67 FR 18088, Apr. 15, 2002; 
T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]



                   Subpart C_Miscellaneous Provisions

      Withdrawal or Lading for Use on Certain Vessels and Aircraft



Sec.  28.20  Alternate methods or procedures; and emergency variations from requirements.

    (a) Alternate methods or procedures--(1) Application. An exporter, 
after receiving approval from the appropriate TTB officer, may use an 
alternate method or procedure (including alternate construction or 
equipment) in lieu of a method or procedure prescribed by this part. An 
exporter wishing to use an alternate method or procedure may apply to 
the appropriate TTB officer. The exporter shall describe the proposed 
alternate method or procedure and shall set forth the reasons for its 
use.
    (2) Approval by appropriate TTB officer. The appropriate TTB officer 
may approve the use of an alternate method or procedure if:
    (i) The applicant shows good cause for its use;
    (ii) It is consistent with the purpose and effect of the procedure 
prescribed by this part, and provides equal security to the revenue;
    (iii) It is not contrary to law; and
    (iv) It will not cause an increase in cost to the Government and 
will not hinder the effective administration of this part.
    (3) Exceptions. The appropriate TTB officer will not authorize an 
alternate method or procedure relating to the giving of a bond or the 
payment of tax.
    (4) Conditions of approval. An exporter may not employ an alternate 
method or procedure until the appropriate TTB officer has approved its 
use. The exporter shall, during the terms of the authorization of an 
alternate method or procedure, comply with the terms of the approved 
application.
    (b) Emergency variations from requirements--(1) Application. When an 
emergency exists, an exporter may apply to the appropriate TTB officer 
for a variation from the requirements of this part relating to 
construction, equipment, and methods of operation. The exporter shall 
describe the proposed variation and set forth the reasons for using it.
    (2) Approval by appropriate TTB officer. The appropriate TTB officer 
may approve an emergency variation from requirements if:
    (i) An emergency exists;
    (ii) The variation from the requirements is necessary;
    (iii) It will afford the same security and protection to the revenue 
as intended by the specific regulations;
    (iv) It will not hinder the effective administration of this part; 
and
    (v) It is not contrary to law.
    (3) Conditions of approval. An exporter may not employ an emergency 
variation from the requirements until the appropriate TTB officer has 
approved its use. Approval of variations from requirements are 
conditioned upon compliance with the conditions and limitations set 
forth in the approval.
    (4) Automatic termination of approval. If the exporter fails to 
comply in good faith with the procedures, conditions or limitations set 
forth in the approval, authority for the variation

[[Page 807]]

from requirements is automatically terminated and the exporter is 
required to comply with prescribed requirements of regulations from 
which those variations were authorized.
    (c) Withdrawal of approval. If the appropriate TTB officer finds the 
revenue is jeopardized or the effective administration of this part is 
hindered by the approval, such TTB officer may withdraw approval for an 
alternate method or procedure or for an emergency variation from 
requirements, approved under paragraph (a) or (b) of this section.

(Act of August 16, 1954, Ch. 736, 68A Stat. 917 (26 U.S.C. 7805); sec. 
201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))

[T.D. ATF-199, 50 FR 9201, Mar. 6, 1985, as amended by T.D. ATF-477, 67 
FR 18088, Apr. 15, 2002; T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]



Sec.  28.21  General.

    Liquors may be withdrawn without payment of tax for lading, and 
liquors on which the tax has been paid or determined may be laden with 
benefit of drawback of tax, subject to this part, for use on vessels and 
aircraft as follows:
    (a) Vessels or aircraft operated by the United States;
    (b) Vessels of the United States employed in the fisheries as 
provided in Sec.  28.22 or in the whaling business, or actually engaged 
in foreign trade or trade between the Atlantic and Pacific ports of the 
United States or between the United States and any of its possessions, 
or between Hawaii and any other part of the United States or between 
Alaska and any other part of the United States;
    (c) Aircraft registered in the United States and actually engaged in 
foreign trade or trade between the United States and any of its 
possessions, or between Hawaii and any other part of the United States 
or between Alaska and any other part of the United States;
    (d) Vessels of war of any foreign nation;
    (e) Foreign vessels employed in the fisheries as provided in Sec.  
28.22 or in the whaling business, or actually engaged in foreign trade 
or trade between the United States and any of its possessions, or 
between Hawaii and any other part of the United States or between Alaska 
and any other part of the United States; where such trade by foreign 
vessels is permitted; or
    (f) Aircraft registered in any foreign country and actually engaged 
in foreign trade or trade between the United States and any of its 
possessions, or between Hawaii and any other part of the United States 
or between Alaska and any other part of the United States, where trade 
by foreign aircraft is permitted, and where the Secretary of the 
Treasury shall have been advised by the Secretary of Commerce that he 
has found such foreign country allows, or will allow, substantially 
reciprocal privileges in respect to aircraft registered in the United 
States.

(46 Stat. 690, as amended; 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[T.D. 6588, 27 FR 773, Jan. 26, 1962. Redesignated at 40 FR 16835, Apr. 
15, 1975 and amended by T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]



Sec.  28.22  Vessels employed in the fisheries.

    Liquors may be withdrawn or laden under the provisions of paragraphs 
(b) and (e) of Sec.  28.21 relating to vessels employed in the 
fisheries, only for use on vessels of the United States documented to 
engage in the fisheries and foreign fishing vessels of 5 net tons or 
over if the district director of customs is satisfied by reason of the 
quantity requested in the light of (a) whether the vessel is employed in 
substantially continuous fishing activities, and (b) the vessel's 
complement, that none of the liquors to be withdrawn or laden are 
intended to be removed from the vessel in, or otherwise returned to, the 
United States. Such withdrawal or lading shall be conditioned upon 
compliance with the applicable provisions of this part. Lading of such 
liquors for use on such vessels shall be subject to approval by the 
district director of customs of a special written application by the 
withdrawer or the vessel's master on customs Form 5125 (in duplicate) 
and a statement by the withdrawer in his application or notice on the 
required TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), 
or 1689 (5130.12), as the case may be, that the liquors are to be laden 
for use as supplies on a vessel employed in the fisheries. The

[[Page 808]]

original application on customs Form 5125, after approval, shall be 
stamped with the serial number of the TTB Form 5100.11, 5110.30, 1582-A 
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and 
the date thereof, and shall be returned by the district director of 
customs to the withdrawer or vessel's master for use as prescribed 
below. Approval of each such application shall be subject to the 
condition that the original shall be presented thereafter by the 
withdrawer or the vessel's master to the district director of customs 
within 24 hours (excluding Saturday, Sunday, and holidays) after each 
subsequent arrival of the vessel at a customs port or station and that 
an accounting shall be made at the time of such presentation of the 
disposition of the liquors until the district director of customs is 
satisfied that they have been consumed on board, or landed under customs 
supervision, and takes up the authorization. The approval of customs 
Form 5125 shall be subject to the further condition that any such 
liquors remaining on board while the vessel is in port shall be 
safeguarded in the manner and to such extent as the director of the port 
or place of arrival shall deem necessary. When such liquors have been 
accounted for to the satisfaction of the district director of customs, 
he shall execute his certificate of lading and use on both copies of the 
TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 
(5130.12), as the case may be, and forward the original of the form 
according to its instructions. In the event of a failure on the part of 
the withdrawer or the master of the vessel to comply with the conditions 
of this section or upon receipt of evidence that the liquors were not 
lawfully used as supplies on the vessel, the district director of 
customs shall advise the appropriate TTB officer of all the facts in the 
case for determination of any liability incurred. In the case of liquors 
withdrawn without payment of tax, assessment of tax liability found to 
have been incurred shall be made against the principal on the bond. In 
the case of taxpaid or tax determined liquors, the appropriate TTB 
officer shall determine as to whether to make demand upon the principal 
and the surety on the bond or to disallow the claim as the case may be.
    Note: As used in this section, the word ``withdrawer'' shall mean 
the person executing the application or notice, TTB Form 5100.11, 
5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the 
case may be.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
28.22, see the List of CFR Sections Affected in the Finding Aids section 
of this volume.



Sec.  28.23  Reciprocating foreign countries.

    The appropriate TTB officer may approve applications relating to the 
withdrawal or lading of liquors for use on aircraft of those foreign 
countries which will allow, to aircraft registered in the United States 
and engaged in foreign trade, privileges substantially reciprocal to the 
privileges allowed herein to aircraft of a foreign country. Where 
application is made to withdraw or lade liquors for use on aircraft of 
other countries, which it is claimed reciprocate similar privileges to 
aircraft of the United States, the applicant must first establish the 
right of such withdrawal or lading. In appropriate cases, the applicant 
should request the Secretary of Commerce to find and advise the 
Secretary of the Treasury that such foreign country or countries allow, 
or will allow, substantially reciprocal privileges to aircraft of the 
United States.

(46 Stat. 690, as amended; 19 U.S.C. 1309)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. 
TTB-8, 69 FR 3831, Jan. 27, 2004]

                     Manufacturing Bonded Warehouses



Sec.  28.25  General.

    The proprietor of a duly constituted manufacturing bonded warehouse, 
established in accordance with law and the regulations in 19 CFR chapter 
I, may withdraw distilled spirits or wine from any distilled spirits 
plant or bonded wine cellar, as the case may be,

[[Page 809]]

without payment of tax, for use in the manufacture of products for 
export, or for shipment in bond to Puerto Rico, or for use by foreign 
governments, organizations, and individuals, as authorized by 26 U.S.C. 
5066, 5214(a)(6) and 5362; and 19 U.S.C. 1311. The proprietor of the 
manufacturing bonded warehouse shall furnish bond in accordance with the 
provisions of Sec.  28.63 or Sec.  28.64.

(Sec. 311, Tariff Act of 1930, 46 Stat. 691, as amended (19 U.S.C. 
1311); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as 
amended (26 U.S.C. 5214, 5362); sec. 3, Pub. L. 91-659, 84 Stat. 1965, 
as amended (26 U.S.C. 5066))

[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 
3831, Jan. 27, 2004]

                        Customs Bonded Warehouses



Sec.  28.26  Entry of distilled spirits into customs bonded warehouses.

    (a) Distilled spirits withdrawn without payment of tax. (1) Bottled 
distilled spirits may, subject to this part, be withdrawn from bonded 
premises for transfer to customs bonded warehouses in which imported 
distilled spirits are permitted to be stored in bond for entry pending 
withdrawal as provided in Sec.  28.27. Withdrawals from bonded premises 
under the provisions of this paragraph shall be treated as withdrawals 
for exportation under the provisions of 26 U.S.C. 5214(a)(4).
    (2) Distilled spirits may, subject to this part, be withdrawn from 
bonded premises for transfer (for the purpose of storage pending 
exportation) to any customs bonded warehouse from which distilled 
spirits may be exported. These withdrawals shall be treated as 
withdrawals for exportation under the provisions of 26 U.S.C. 
5214(a)(9).
    (b) Bottled distilled spirits eligible for export with benefit of 
drawback. Bottled distilled spirits eligible for export with benefit of 
drawback may, subject to this part, be transferred to customs bonded 
warehouses in which imported distilled spirits are permitted to be 
stored, and entered pending withdrawal as provided in Sec.  28.28, as if 
such spirits were for exportation.
    (c) Time deemed exported. For the purpose of this part, distilled 
spirits entered into a customs bonded warehouse as provided in this 
section shall be deemed exported at the time so entered.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1381, 1382, (26 
U.S.C. 5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 
U.S.C. 5066, 5370, 5371; 26 U.S.C. 7805))

[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-206, 50 FR 23956, June 7, 1985; T.D. 
TTB-8, 69 FR 3831, Jan. 27, 2004]



Sec.  28.27  Entry of wine into customs bonded warehouses.

    Upon filing of the application or notice prescribed by Sec.  
28.122(a), wine may be withdrawn from a bonded wine cellar for transfer 
to any customs bonded warehouse for entry pending withdrawal as provided 
in Sec.  28.28. Such withdrawal from bonded wine cellars is governed by 
the provisions of subpart F of this part. Wine so transferred to customs 
bonded warehouses shall be entered, stored, and accounted for in such 
warehouses under the appropriate provisions of 19 CFR chapter I.

(Sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 
3831, Jan. 27, 2004]



Sec.  28.28  Withdrawal of wine and distilled spirits from customs bonded warehouses.

    Wine and bottled distilled spirits entered into customs bonded 
warehouses as provided in Sec.  28.26 (a) or (b) and Sec.  28.27 may, 
under the appropriate provisions of 19 CFR chapter I, be withdrawn from 
such warehouses for consumption in the United States by and for the 
official or family use of foreign governments, organizations, and 
individuals who are entitled to withdraw imported wine and distilled 
spirits from a warehouse free of tax. Distilled spirits and wine entered 
into customs bonded warehouses under the provisions of Sec. Sec.  
28.26(a)(2) and 28.27 may be withdrawn for exportation, subject to the 
provisions of 19 CFR chapter I. Distilled spirits and wine transferred 
to customs bonded warehouses shall be entered into, stored and accounted 
for in, and withdrawn from, such warehouses under the appropriate 
provisions of 19 CFR chapter I. Wine and bottled distilled spirits, 
originally

[[Page 810]]

transferred to customs bonded warehouses for the purpose of withdrawal 
by foreign embassies, legations, etc., as authorized by law, may be 
withdrawn from such warehouses for domestic use, in which event they 
shall be treated as American goods exported and returned.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); 
sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); sec. 
2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 
3831, Jan. 27, 2004]

                           Foreign-Trade Zones



Sec.  28.30  Export status.

    (a) Distilled spirits and wines manufactured, produced, bottled in 
bottles packed in containers, or packaged in casks or other bulk 
containers in the United States, and beer brewed or produced in the 
United States may be transferred to a foreign-trade zone for the sole 
purpose of exportation, or storage pending exportation. Liquors 
deposited in a foreign-trade zone under this part solely for such 
purposes are considered to be exported. Export status is not acquired 
until application on Form 214 for admission of the liquors into the zone 
has been approved by the district director of customs under the 
appropriate provision of 19 CFR chapter I, and the required 
certification of deposit has been made on the TTB form prescribed in 
this part.
    (b) The provisions of subpart H of this part do not apply to 
specially denatured spirits transferred to a foreign-trade zone for use 
in the manufacture of articles pursuant to the provisions of 19 U.S.C. 
81c(c). Transfer of domestic specially denatured spirits to a qualified 
user in a foreign-trade zone is made free of tax under the provisions of 
part 20 of this chapter. Such transfer does not place the domestic 
specially denatured spirits in an export status.

(48 Stat. 999, as amended (19 U.S.C. 81c))

[T.D. ATF-274, 53 FR 25157, July 5, 1988, as amended by T.D. TTB-8, 69 
FR 3831, Jan. 27, 2004]

 Voluntary Destruction of Liquors After Receipt in a Foreign-Trade Zone



Sec.  28.35  General.

    Liquors may not, under the law, be transferred to a foreign-trade 
zone for the purpose of destruction. However, liquors transported to and 
deposited in a foreign-trade zone for exportation or for storage pending 
exportation may be destroyed under the supervision of the district 
director of customs, where it is shown to the satisfaction of the 
appropriate TTB officer that the liquors, after deposit in a zone, have 
become unmerchantable or unfit for export.

(48 Stat. 999, as amended; 19 U.S.C. 81c)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. 
TTB-8, 69 FR 3831, Jan. 27, 2004]



Sec.  28.36  Application.

    Liquors deposited in a foreign-trade zone from the United States 
which have become unmerchantable or unfit for export may be destroyed. 
The exporter shall prepare a letter application, in duplicate, and 
submit it to the appropriate TTB officer. The application shall identify 
the name and address of the exporter and contain the following 
information:
    (a) The kind and quantity of the liquor, the serial numbers, if any, 
of the containers thereof, and identification of the zone in which the 
liquor is stored;
    (b) The name and address of the producer bottler or packager of the 
liquor, and the name, registry number, if any, and location of the 
plant, warehouse or other establishment from which such liquors were 
withdrawn for transportation to and deposit in the foreign-trade zone;
    (c) The date, form, and serial number of the TTB Form 5100.11, 
5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the 
case may be; and, in the case of liquors on which drawback of internal 
revenue tax has been allowed, the TTB assigned claim number;
    (d) Whether the liquor has become unmerchantable or unfit for export 
after deposit in the zone, together with all the known facts relating 
thereto; and

[[Page 811]]

    (e) Whether the unmerchantable or unfit liquor is covered by valid 
insurance in excess of the market value thereof, exclusive of tax. If 
the liquor is insured, the application shall show its market value, the 
amount and date of each and every policy of insurance, the name and 
location of the company by which each and every policy was issued, the 
name and address of the bona fide owner of the liquor, and to the best 
of the affiant's knowledge, whether any other person or party is 
indemnified against the loss of the liquor by reason of its spoilage or 
destruction.

Such application shall be signed by the exporter or his authorized agent 
and be executed under the penalties of perjury. The appropriate TTB 
officer may require any further evidence as is deemed necessary. The 
operator of the foreign-trade zone shall countersign the application or 
otherwise indicate thereon his knowledge of and concurrence in the 
application to destroy the liquor. The exporter shall file the 
application with the district director of customs in whose district the 
foreign-trade zone is located; at the same time the exporter shall 
likewise file Zone Form E in accordance with Customs Regulations (19 CFR 
chapter I). On receipt of the application the district director of 
customs shall determine the completeness thereof and shall report any 
facts relating to the condition of the liquor of which he may have 
knowledge. The original application shall be forwarded to the 
appropriate TTB officer and the district director of customs shall 
retain the copy for his files.

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
28.36, see the List of CFR Sections Affected in the Finding Aids section 
of this volume.



Sec.  28.37  Action by appropriate TTB officer.

    The appropriate TTB officer shall carefully examine the application 
to see that all the required information has been furnished and shall 
cause an investigation to be made or require any additional evidence, 
including samples, to be submitted if necessary. If the appropriate TTB 
officer finds that the liquors were transported to and deposited in a 
foreign-trade zone in good faith for the purpose of exportation or 
storage pending exportation, and that the liquors, after deposit in the 
zone, have become unmerchantable or unfit for export, he may approve the 
application and authorize the destruction of the liquor described 
therein under the supervision of the district director of customs. On 
approval or disapproval of the application, the appropriate TTB officer 
shall advise the district director of customs of his action.

[T.D. ATF-51,43 FR 24244, June 2, 1978, as amended by T.D. TTB-8, 69 FR 
3831, Jan. 27, 2004]



Sec.  28.38  Action by district director of customs.

    On receipt of the appropriate TTB officer's authorization for 
destruction of the liquor, or his disapproval of the application for 
destruction, the district director of customs shall act upon the 
exporter's application on Zone Form E and dispose of it in accordance 
with the applicable provisions of Customs Regulations (19 CFR chapter 
I). Where the appropriate TTB officer has authorized the destruction of 
the liquor, such destruction shall be accomplished under customs 
supervision.

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by 
T.D. TTB-8, 69 FR 3831, Jan. 27, 2004]

                     Evidence of Exportation and Use



Sec.  28.40  Evidence of exportation: distilled spirits and wine.

    The exportation of any shipment of distilled spirits or wine may be 
evidenced by:
    (a) A copy of the export bill of lading (Sec.  28.250); or
    (b) A copy of the railway express receipt (Sec.  28.251); or
    (c) A copy of the air express receipt (Sec.  28.252); or
    (d) A copy of the through bill of lading where exportation is to a 
contiguous foreign country (Sec.  28.250); or

[[Page 812]]

    (e) A certificate by the export carrier, as provided for in Sec.  
28.253.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; T.D. TTB-8, 69 FR 
3831, Jan. 27, 2004]



Sec.  28.41  Evidence of lading for use on vessels or aircraft: distilled spirits and wine.

    The lading of distilled spirits or wine for use on vessels or 
aircraft may be evidenced by submission of a receipt procured under the 
provisions of Sec.  28.268.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 201, Pub. L. 85-859; 72 Stat. 1362, as amended, 1380, as 
amended (26 U.S.C. 5214, 5362))

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.42  Evidence of deposit.

    The deposit of distilled spirits in a customs bonded warehouse or 
distilled spirits and wines in a foreign-trade zone with benefit of 
drawback may be evidenced by a copy of the transportation bill of lading 
obtained under the provisions of Sec.  28.250.

(48 Stat. 999, as amended, 84 Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5066)

[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975 and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.43  Evidence of exportation and lading for use on vessels and aircraft: beer.

    (a) Exportation. The exportation of beer to a foreign country or 
possession will be fully evidenced by any of the following documents:
    (1) Customs certification of lading and clearance on Form 1582-B 
(5130.6) or Form 1689 (5130.12) under subpart M of this part; or
    (2) For shipment to the armed forces, certification by a military 
officer on Form 1582-B (5130.6) or Form 1689 (5130.12) under Sec.  
28.275; or
    (3) A bill of lading (Sec.  28.250), a railway express receipt 
(Sec.  28.251), or an air express or air freight bill of lading (Sec.  
28.252), when such bills of lading or receipt show exportation to a 
foreign country or possession; or
    (4) A certificate issued by an export carrier under Sec.  28.253 
attesting to exportation to a foreign country or possession; or
    (5) A landing certificate issued by an official of the country or 
possession where the beer has actually landed; or
    (6) Any other evidence of exportation approved by the appropriate 
TTB officer.
    (b) Use as supplies on vessels and aircraft. The lading of beer for 
use on vessels or aircraft will be fully evidenced by:
    (1) For fishing vessels only, customs certification of lading and 
use on Form 1582-B (5130.6) or Form 1689 (5130.12) under Sec.  28.23; or
    (2) Customs certification of lading on Form 1582-B (5130.6) or Form 
1689 (5130.12) under Sec. Sec.  28.264 or 28.282; or
    (3) Any other evidence of exportation approved by the appropriate 
TTB officer.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as 
amended (26 U.S.C. 5053, 5055))

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]

                          Retention of Records



Sec.  28.45  Retention of records.

    File copies of forms required by this part to be retained by any 
proprietor or claimant, and all records, documents, or copies of records 
and documents supporting such forms, shall be preserved by such 
proprietor or claimant for a period of not less than two years, and 
during such period shall be

[[Page 813]]

available, during business hours, for inspection and the taking of 
abstracts therefrom by appropriate TTB officers.

(Approved by the Office of Management and Budget under control number 
1512-0385)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1381, as amended, 
1390, as amended, 1395, as amended (26 U.S.C. 5114, 5367, 5415, 5555); 
sec. 807, Pub. L. 96-39, 93 Stat. 283 (26 U.S.C. 5207))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. ATF-172, 49 
FR 14943, Apr. 16, 1984; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]

                          Penalties of Perjury



Sec.  28.48  Execution under penalties of perjury.

    When a return, form, or other document called for under this part is 
required by this part or in the instructions on or with the return, 
form, or other document to be executed under penalties of perjury, it 
shall be so executed, as defined in subpart B of this part, and shall be 
signed by the proprietor, or other duly authorized person.

(68A Stat. 749 (26 U.S.C. 6065))



                 Subpart D_Bonds and Consents of Surety



Sec.  28.51  General.

    Every person required by this part to file a bond or consent of 
surety must prepare and execute it on the prescribed form and file it in 
accordance with its instructions and the procedures of this part. The 
procedures in parts 19, 24 or 25 of this chapter govern bonds covering 
distilled spirits plants, bonded wine cellars and breweries, 
respectively.

[T.D. ATF-477, 67 FR 18089, Apr. 15, 2002]



Sec.  28.52  Corporate surety.

    (a) Surety bonds required by this part may be given only with 
corporate sureties holding certificates of authority from, and subject 
to the limitations prescribed by, the Secretary as set forth in the 
current revision of Treasury Department Circular No. 570 (Companies 
Holding Certificates of Authority as Acceptable Sureties on Federal 
Bonds and as Acceptable Reinsuring Companies).
    (b) Treasury Department Circular No. 570 is published in the Federal 
Register annually as of the first workday of July. As they occur, 
interim revisions of the circular are published in the Federal Register. 
Copies may be obtained from the Audit Staff, Bureau of Government 
Financial Operations, Department of the Treasury, Washington, DC 20226.

(July 30, 1947, ch. 390, 61 Stat. 648, as amended (6 U.S.C. 6, 7))

[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981]



Sec.  28.52a  Filing of powers of attorney.

    Each bond, and each consent to changes in the terms of a bond, shall 
be accompanied by a power of attorney authorizing the agent or officer 
who executed the bond or consent to so act on behalf of the surety. The 
appropriate TTB officer who is authorized to approve the bond, may, when 
he deems it necessary, require additional evidence of the authority of 
the agent or officer to execute the bond or consent.

(61 Stat. 648; 6 U.S.C. 6, 7)

[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, 
Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.52b  Execution of powers of attorney.

    The power of attorney shall be prepared on a form provided by the 
surety company and executed under the corporate seal of the company. If 
the power of attorney submitted is other than a manually signed 
original, it shall be accompanied by certification of its validity.

(61 Stat. 648; 6 U.S.C. 6, 7)

[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, 
Apr. 15, 1975]



Sec.  28.53  Deposit of securities in lieu of corporate surety.

    In lieu of corporate surety, the principal may pledge and deposit, 
as surety for his bond, securities which are transferable and are 
guaranteed as to both interest and principal by the United States, in 
accordance with the provisions of 31 CFR part 225.

(61 Stat. 650; 6 U.S.C. 15)

[[Page 814]]



Sec.  28.54  Consents of surety.

    Consents of surety to changes in the terms of bonds shall be 
executed on Form 1533 by the principal and by the surety with the same 
formality and proof of authority as is required for the execution of 
bonds.



Sec.  28.55  Authority to approve bonds and consents of surety.

    Appropriate TTB officers are authorized to approve all bonds and 
consents of surety required by this part.

[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, 
Apr. 15, 1975 and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.56  Disapproval of bonds or consents of surety.

    The appropriate TTB officer may disapprove any bond prescribed by 
this part, or any consent of surety submitted in respect thereto, if the 
principal or any person owning, controlling, or actively participating 
in the management of the business of the principal shall have been 
previously convicted, in a court of competent jurisdiction, of:
    (a) Any fraudulent noncompliance with any provision of any law of 
the United States, if such provision related to internal revenue or 
customs taxation of spirits, wines, or beer, or if such offense shall 
have been compromised with the person on payment of penalties or 
otherwise; or
    (b) Any felony under a law of any State, Territory, or the District 
of Columbia, or the United States, prohibiting the manufacture, sale, 
importation, or transportation of spirits, wine, beer, or other 
intoxicating liquor.

(72 Stat. 1336, 1352, 1353, 1394; 26 U.S.C. 5062, 5175, 5177, 5551)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]



Sec.  28.57  Appeal to Administrator.

    Where a bond or consent of surety is disapproved by the appropriate 
TTB officer, the person giving the bond may appeal from such disapproval 
to the Administrator, who will hear such appeal. The decision of the 
Administrator shall be final.

(72 Stat. 1394; 26 U.S.C. 5551)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by 
T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.58  Operations or unit bond--distilled spirits.

    (a) Spirits. Where spirits are withdrawn without payment of tax, as 
authorized in Sec.  28.91, from the bonded premises of a distilled 
spirits plant on application of the proprietor thereof, the operations 
or unit bond, given by the proprietor and approved under the provisions 
of part 19 of this chapter, shall cover such withdrawals.
    (b) Wine. Where, under the provisions of part 19 of this chapter, an 
operations or unit bond has been given and approved to cover the 
operations of a distilled spirits plant and an adjacent bonded wine 
cellar, such bond shall cover the withdrawal of wine without payment of 
tax, as authorized in Sec.  28.121, from such bonded wine cellar on 
application for such withdrawal by the proprietor.
    (c) Specially denatured spirits. Where specially denatured spirits 
are withdrawn free of tax, as authorized in Sec.  28.151, from the 
bonded premises of a distilled spirits plant on application of the 
proprietor thereof, the proprietor shall file a consent of surety 
extending the terms of the operations or unit bond, which consent shall 
be in the following form:

    The obligors agree to extend the terms of said bond to cover all 
liability that may be incurred on all specially denatured spirits 
withdrawn by the principal for exportation or transfer to a foreign-
trade zone, for which satisfactory evidence of exportation, or of 
deposit in a foreign-trade zone, as required by law and regulations, is 
not submitted to the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended 
(26 U.S.C. 5175, 5214); Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as 
amended (26 U.S.C. 5066); Sec. 805, Pub. L. 96-39, 93 Stat. 276 (26 
U.S.C. 5173))

[T.D. ATF-62, 44 FR 71721, Dec. 11, 1979, as amended by T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]

[[Page 815]]



Sec.  28.59  Bond, Form 5120.36.

    Where the operations of a bonded wine cellar are covered by bond, 
Form 5120.36, as provided in part 24 of this chapter, such bond shall 
cover the withdrawal of wine without payment of tax, as authorized in 
Sec.  28.121, from such bonded wine cellar by the proprietor of the 
bonded wine cellar.

(72 Stat. 1379, 1380; 26 U.S.C. 5354, 5362, as amended by T.D. ATF-299, 
55 FR 25033, June 19, 1990; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.60  Brewer's bond, Form 5130.22.

    When beer or beer concentrate is removed from a brewery without 
payment of tax for any of the purposes authorized in Sec.  28.141, the 
brewer's bond, Form 5130.22, furnished under the provisions of part 25 
of this chapter will cover the removals.

(49 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 
Stat. 1334, as amended, 1388, as amended (26 U.S.C. 5053, 5401))

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.61  Bond, Form 2734 (5100.25).

    If a specific lot of distilled spirits or wine is to be withdrawn 
without payment of tax, as authorized in Sec.  28.91(a)(1), (2), (3), 
(5), or Sec.  28.121(a), (b), (c), or (d), by a person other than the 
proprietor of the bonded premises, a specific bond on TTB Form 2734 
(5100.25) shall be filed by the exporter, as provided in Sec.  28.51. 
The penal sum of the bond shall not be less than the tax prescribed by 
law on the quantity of spirits or wine to be withdrawn. However, the 
maximum penal sum of the bond shall not exceed $200,000 but in no case 
shall the penal sum be less than $1,000.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended, 
1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub. 
L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.62  Bond, Form 2735 (5100.30).

    (a) Requirement for bond. If a person other than the proprietor of 
the bonded premises withdraws distilled spirits or wine without payment 
of tax, as authorized by Sec.  28.91(a)(1), (2), (3), (5), or Sec.  
28.121(a), (b), (c), or (d), the exporter shall file a continuing bond, 
TTB Form 2735 (5100.30), as provided in Sec.  28.51.
    (b) Penal sum of bond. The penal sum of the bond shall be sufficient 
to cover the tax on the maximum quantity of distilled spirits and wine 
that may remain unaccounted for at any one time. However, the maximum 
penal sum of the bond shall not exceed $200,000, but in no case shall 
the penal sum be less than $1,000. Distilled spirits and wine withdrawn 
for exportation, use on vessels or aircraft, transfer to a customs 
bonded warehouse, or transfer to and deposit in a foreign-trade zone, 
shall remain unaccounted for until the evidence of exportation, use, 
deposit, transfer, or loss in transit has been filed with the 
appropriate TTB officer.
    (c) Apportioning bonds. If the bond, Form 2735 (5100.30), is in less 
than the maximum penal sum, the principal shall apportion the bond, in 
accordance with the requirements on the bond form. The exporter may 
reapportion the bond coverage, if changing conditions make this 
necessary, by filing a consent of surety, TTB Form 1533 (5000.18), in 
accordance with its instructions.
    (d) Withdrawal of wine for transfer to a customs bonded warehouse; 
consent of surety. An exporter with a bond on Form 2735 (5100.30) 
executed before April 1, 1981, shall obtain a consent of surety on Form 
1533 (5000.18) before withdrawing wine without payment of tax from a 
bonded wine cellar for transfer to a customs bonded warehouse. The 
consent shall be executed in accordance with Sec.  28.54 and filed in 
accordance with instructions on the form. Exporters with bonds executed 
on or after April 1, 1981, do not need this consent of surety, because 
such bonds automatically apply to withdrawals for transfer to customs 
bonded warehouses.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended, 
1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub. 
L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))

[T.D. ATF-88, 46 FR 39815, Aug. 5, 1991, as amended by T.D. ATF-413, 64 
FR 46845, Aug. 27, 1999; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]

[[Page 816]]



Sec.  28.63  Bond, Form 2736 (5100.12).

    Where the proprietor of a manufacturing bonded warehouse desires to 
withdraw a specific lot of distilled spirits or wines without payment of 
tax, as authorized in Sec.  28.25, he shall file, as provided in Sec.  
28.51, a specific bond, on Form 2736 (5100.12), to cover the 
transportation of the distilled spirits or wines from the bonded 
premises from which withdrawn to the manufacturing bonded warehouse. The 
penal sum of such bond shall be not less than the tax prescribed by law 
on the quantity of distilled spirits or wines to be withdrawn: Provided, 
That the maximum penal sum of such bond shall not exceed $200,000, but 
in no case shall the penal sum be less than $1,000.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended 
(26 U.S.C. 5175, 5362))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]



Sec.  28.64  Bond, Form 2737.

    (a) General. Where the proprietor of a manufacturing bonded 
warehouse desires to withdraw distilled spirits and wines from time to 
time without payment of tax, as authorized in Sec.  28.25, he shall 
file, as provided in Sec.  28.51, a continuing bond on Form 2737 
(5110.67). The bond shall be executed in a penal sum sufficient to cover 
the tax at the rates prescribed by law on the maximum quantity of 
distilled spirits and wines which may remain unaccounted for at any one 
time: Provided, That the maximum penal sum of such bond shall not exceed 
$200,000, but in no case shall the penal sum be less than $1,000. 
Distilled spirits and wines withdrawn for transfer to a manufacturing 
bonded warehouse shall remain unaccounted for until the evidence of 
deposit in such warehouse, as required by this part, has been filed. The 
proprietor shall, at the time of executing Form 2737 (5110.67), 
designate the premises from which the withdrawals are to be made, 
provided that, as to any one bond on Form 2737 (5110.67), such premises 
shall be located in the same internal revenue region.
    (b) Apportioning bonds. If the bond, Form 2737 (5110.67) is in less 
than the maximum penal sum, the principal shall apportion the bond, in 
accordance with the requirements on the bond form. The principal may 
reapportion the bond coverage, if changing conditions make this 
necessary, by filing a consent of surety, Form 1533, in accordance with 
its instructions.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended 
(26 U.S.C. 5175, 5362))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]



Sec.  28.65  Bond, Form 2738 (5110.68).

    Whenever, under the provisions of this part, the claimant desires 
drawback of tax on distilled spirits or wines to be exported, laden for 
use on vessels or aircraft, or transferred to and deposited in a 
foreign-trade zone, or, in the case of distilled spirits, transferred to 
a customs bonded warehouse, as authorized in Sec. Sec.  28.171 and 
28.211, prior to the receipt of the certified copy of TTB Form 5110.30, 
or 1582-A (5120.24), as the case may be, as prescribed by this part, he 
shall file bond on Form 2738 (5110.68) as provided in Sec.  28.51. The 
penal sum of the bond shall be sufficient to cover the amount of 
drawback which will at any time constitute a charge against the bond:

Provided, That the maximum penal sum shall not exceed $200,000, but in 
no case shall the penal sum be less than $1,000: Provided further, That 
where the claimant desires to remove distilled spirits to a customs 
bonded warehouse as provided in Sec.  28.171(d) and the terms of his 
bond on Form 2738 (5110.68), then in force, do not cover such removals, 
he shall either file a consent of surety on Form 1533 to extend the 
terms of such bond to cover such removals or file a new bond on Form 
2738 (5110.68).

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as 
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)

[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. 
ATF-198, 50 FR 8559, Mar. 1, 1985; T.D. TTB-8, 69 FR 3832, Jan. 27, 
2004]

[[Page 817]]



Sec.  28.66  Strengthening bonds.

    In all cases where the penal sum of any bond becomes insufficient, 
the principal shall either give a strengthening bond with the same 
surety to attain a sufficient penal sum, or give a new bond to cover the 
entire liability. Strengthening bonds will not be approved where any 
notation is made thereon which is intended, or which may be construed, 
as a release of any former bond, or as limiting the amount of any bond 
to less than its full penal sum. Strengthening bonds shall show the 
current date of execution and the effective date.

(72 Stat. 1352, 1394; 26 U.S.C. 5175, 5551)



Sec.  28.67  New or superseding bonds.

    New bonds shall be required in case of insolvency or removal of any 
surety, and may, at the discretion of the appropriate TTB officer, be 
required in any other contingency affecting the validity or impairing 
the efficiency of such bond. Executors, administrators, assignees, 
receivers, trustees, or other persons acting in a fiduciary capacity, 
continuing or liquidating the business of the principal, shall execute 
and file a new bond or obtain the consent of the surety or sureties on 
the existing bond or bonds. Where, under the provisions of Sec.  28.72, 
the surety on any bond given under this subpart has filed an application 
to be relieved of liability under said bond and the principal desires or 
intends to continue the business or operations to which such bond 
relates, he shall file a valid superseding bond to be effective on or 
before the date specified in the surety's notice. If the principal does 
not file a new or superseding bond when required, he shall discontinue 
the operations intended to be covered by such bond forthwith. New or 
superseding bonds shall show the current date of execution and the 
effective date.

(72 Stat. 1336, 1362; 26 U.S.C. 5062, 5214)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]

                          Termination of Bonds



Sec.  28.70  Termination of bonds, Forms 2734 (5120.25) and 2736 (5100.12).

    Bonds, Forms 2734 (5120.25) and 2736 (5100.12), covering a specific 
lot of distilled spirits or wines withdrawn without payment of tax under 
this part, will be canceled by the appropriate TTB officer on receipt by 
him of TTB Form 5100.11 properly executed by the appropriate customs 
official or armed services officer, as required by this part, evidencing 
that the distilled spirits or wines have been duly exported, laden for 
use on vessels or aircraft, deposited in a foreign-trade zone, or 
deposited in a manufacturing bonded warehouse, as the case may be, or of 
evidence satisfactory to him that the distilled spirits or wines have 
been otherwise lawfully disposed of or accounted for: Provided, That all 
liability under the bond to be canceled has been terminated.

(72 Stat. 1352; 26 U.S.C. 5175)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]



Sec.  28.71  Termination of bonds, Forms 2735 (5100.30), 2737 (5110.67), and 2738 (5110.68).

    Continuing bonds, Forms 2735 (5100.30) and 2737 (5110.67), covering 
distilled spirits and/or wines withdrawn from time to time without 
payment of tax under this part and Form 2738 (5110.68) covering 
allowance of claims for drawback on distilled spirits and/or wines 
removed as authorized in Sec. Sec.  28.171 and 28.211, may be terminated 
as to liability for future withdrawals or claims (a) pursuant to 
application of surety as provided in Sec.  28.72, (b) on approval of a 
superseding bond, or (c) on written notification to the appropriate TTB 
officer by the principal of his discontinuance of withdrawals or claims, 
as the case may be, under the bond. When no further withdrawals are to 
be made under a bond on Form 2735 (5100.30) or 2737 (5110.67), or no 
further claims for drawback are to be filed under bond Form 2738 
(5110.68), the bond shall be canceled by the appropriate TTB officer in 
the manner and

[[Page 818]]

subject to the conditions provided in Sec.  28.70.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended, 
1353, as amended (26 U.S.C. 5062, 5175, 5176))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. ATF-198, 50 
FR 8559, Mar. 1, 1985; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.72  Application of surety for relief from bond.

    A surety on any bond given on Forms 2735 (5100.30), 2737 (5110.67), 
or 2738 (5110.68), may at any time in writing notify the principal and 
the appropriate TTB officer that he desires, after a date named, to be 
relieved of liability under said bond. Such date shall be not less than 
90 days after the date the notice is received by the appropriate TTB 
officer. The surety shall also file with the appropriate TTB officer an 
acknowledgment or other proof of service on the principal. If such 
notice is not thereafter in writing withdrawn, the rights of the 
principal as supported by said bond shall be terminated on the date 
named in the notice, and the surety shall be relieved from liability to 
the extent set forth in Sec.  28.73(b).

(68A Stat. 749, as amended (26 U.S.C. 6065); Sec. 201. Pub. L. 85-859, 
72 Stat. 1336, as amended, 1352, as amended (26 U.S.C. 5062, 5175))

[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835, 
Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; 
T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.73  Relief of surety from bond.

    (a) Bonds, Forms 2734 (5120.25) and 2736 (5100.12). The surety on a 
bond given on Form 2734 (5120.25) or Form 2736 (5100.12) shall be 
relieved from his liability under the bond when the bond has been 
canceled as provided for in Sec.  28.70.
    (b) Bonds, Forms 2735 (5100.30), 2737 (5110.67), and 2738 (5110.68). 
Where the surety on a bond given on Form 2735 (5100.30), Form 2737 
(5110.67), or on Form 2738 (5110.68) has filed application for relief 
from liability, as provided in Sec.  28.72, the surety shall be relieved 
from liability for withdrawals or claims, as the case may be, made 
wholly subsequent to the date specified in the notice, or on the 
effective date of a superseding bond, if one is given. Notwithstanding 
such relief, the liability of the surety shall continue until the 
spirits and/or wines withdrawn without payment of tax or included in a 
claim for drawback of tax allowed under the bond have been properly 
accounted for.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended, 
1353, as amended (26 U.S.C. 5062, 5175, 5176))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]



Sec.  28.74  Release of pledged securities.

    Securities of the United States, pledged and deposited as provided 
in Sec.  28.53, shall be released only in accordance with the provisions 
of 31 CFR part 225. Such securities will not be released by the 
appropriate TTB officer until liability under the bond for which they 
were pledged has been terminated. When the appropriate TTB officer is 
satisfied that they may be released, he shall fix the date or dates on 
which a part or all of such securities may be released. At any time 
prior to the release of such securities, the appropriate TTB officer may 
extend the date of release for such additional length of time as he 
deems necessary.

(61 Stat. 650; 6 U.S.C. 15)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975 
and amended by T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]

                           Charges and Credits



Sec.  28.80  Charges and credits on bonds.

    The withdrawal of liquors without payment of tax or of specially 
denatured spirits free of tax, under the provisions of this part shall 
constitute a charge against the bond under which the withdrawal is made 
of (a) the tax on the liquors withdrawn or (b) of an amount equal to the 
tax on specially denatured spirits withdrawn that will be due in the 
event of failure to account for the specially denatured spirits as 
provided in this part. The tax on liquors so withdrawn, or an amount 
equal to the tax on specially denatured spirits so withdrawn that would 
be due

[[Page 819]]

as set forth above, shall, on the required accounting for such liquors 
or specially denatured spirits, constitute a credit to the bond of such 
tax or amount equal to the tax, as the case may be. Provisions regarding 
charges and credits on drawback bonds are contained in subpart P of this 
part.



  Subpart E_Withdrawal of Distilled Spirits Without Payment of Tax for 
 Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade 
       Zone, or Transportation to a Manufacturing Bonded Warehouse



Sec.  28.91  General.

    (a) Distilled spirits on which the internal revenue tax has not been 
paid or determined may, subject to this part, be withdrawn from the 
bonded premises of a distilled spirits plant without payment of tax for:
    (1) Exportation;
    (2) Use on the vessels or aircraft described in Sec.  28.21;
    (3) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation;
    (4) Transportation to and deposit in a manufacturing bonded 
warehouse; or
    (5) Transfer to and deposit in a customs bonded warehouse as 
provided for in Sec.  28.26.
    (b) All withdrawals shall be made under the applicable bond 
prescribed in subpart D of this part.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 
5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[T.D. ATF-51, 43 FR 24244, June 2, 1978, as amended by T.D. ATF-62, 44 
FR 71722, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.92  Application or notice, TTB Form 5100.11.

    (a) Export, use on vessels and aircraft, and transfer to a foreign-
trade zone or a customs bonded warehouse. Application for or notice of 
the withdrawal of distilled spirits without payment of tax for 
exportation from the United States, or for use on vessels and aircraft, 
or for transfer to a customs bonded warehouse or a foreign-trade zone, 
shall be made by the exporter on TTB Form 5100.11. If the exporter is 
not the proprietor of the bonded premises of the distilled spirits plant 
from which the spirits are to be withdrawn, the exporter shall prepare 
TTB Form 5100.11 as an application, in accordance with the instructions 
on the form, and shall forward all copies of the form in accordance with 
instructions for the form. If the exporter is the proprietor of the 
bonded premises of the distilled spirits plant from which the spirits 
are withdrawn, the exporter shall prepare TTB Form 5100.11 as a notice 
in accordance with the instructions on the form.
    (b) Manufacturing bonded warehouse. Application for the withdrawal 
of distilled spirits without payment of tax for transportation to and 
deposit in a manufacturing bonded warehouse shall be made by the 
proprietor of such warehouse on TTB Form 5100.11, in accordance with the 
instructions on the form.

(Approved by the Office of Management and Budget under control number 
152-0190)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214); 
Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))

[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.93  Carrier to be designated.

    The name of the carrier or carriers to be used in transporting the 
distilled spirits from the bonded premises of the distilled spirits 
plant to the port of export, or to the customs bonded warehouse, or to 
the manufacturing bonded warehouse, or to the foreign-trade zone, as the 
case may be, shall be shown in the application. If the spirits are 
shipped on a through bill of lading and all carriers handling the 
spirits while in transit are not known, the name of the carrier to whom 
the distilled spirits are to be delivered at the shipping premises shall 
be shown.

(72 Stat. 1362, 84 Stat. 1965; 26 U.S.C. 5214, 5066)

[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]

[[Page 820]]



Sec.  28.94  Containers.

    Distilled spirits authorized to be withdrawn without payment of tax 
from the bonded premises of a distilled spirits plant under the 
provisions of this subpart may be withdrawn from such establishment in 
such containers as may be authorized in part 19 of this chapter. Except 
as otherwise provided in this part, the gauging, packing, bottling, 
casing, marking, closing and reporting of distilled spirits prior to 
withdrawal shall be in accordance with the provisions of part 19 of this 
chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended, 
1374, as amended (26 U.S.C. 5205, 5206, 5301))

[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; as amended by T.D. ATF-206, 50 
FR 23956, June 7, 1985]



Sec.  28.95  Change of packages for exportation.

    Whenever the exporter desires to transfer distilled spirits from 
packages filled in internal revenue bond to such other suitable packages 
as may be desired for exportation, such change of packages shall be made 
under the procedures of part 19 of this chapter, prior to the 
preparation of TTB Form 5100.11 covering the removal of the distilled 
spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended, 
1374, as amended (26 U.S.C. 5205, 5206, 5301))

[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979, as amended by T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]



Sec.  28.96  Approval of application.

    When filed as an application, and TTB Form 5100.11 has been properly 
executed, and the required bond has been filed in a sufficient amount, 
the appropriate TTB officer shall approve the application on all copies 
of the form and send them to the proprietor of the bonded premises from 
which the spirits will be withdrawn.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979, as amended by T.D. ATF-198, 50 
FR 8559, Mar. 1, 1985; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.97  [Reserved]



Sec.  28.98  Inspection and regauge.

    The proprietor shall inspect all containers to be withdrawn pursuant 
to TTB Form 5100.11 and shall regauge all packages, except those which 
are to be withdrawn on the filling or production gauge as authorized in 
27 CFR part 19. If the withdrawal is to be made subject to regauge, the 
proprietor shall prepare a package gauge record as provided in 27 CFR 
part 19, enter the total proof gallons regauged on TTB Form 5100.11, and 
attach a copy of the package gauge record to each copy of TTB Form 
5100.11. If a proprietor wishes to reduce the proof of spirits contained 
in packages to be withdrawn pursuant to TTB Form 5100.11, he shall make 
such proof reduction incident to regauge of the packages.

(Approved by the Office of Management and Budget under control number 
1412-0190 and 1512-0250)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.100  [Reserved]



Sec.  28.101  Packages to be stamped.

    Each package and authorized bulk conveyance of spirits (including 
tank cars and tank trucks but not pipelines) withdrawn without payment 
of tax under the provisions of this subpart shall be marked with the 
word ``EXPORT'' in accordance with the provisions of 27 CFR part 19 
prior to its removal from the bonded premises.

(Approved by the Office of Management and Budget under control number 
1512-0189)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5205))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985; as amended by T.D. ATF-206, 50 
FR 23956, June 7, 1985]]

[[Page 821]]



Sec.  28.102  Bottles to have closures affixed.

    Every bottle containing distilled spirits to be withdrawn under the 
provisions of this subpart shall have a closure or other device affixed 
in accordance with the provisions of part 19 of this chapter.

(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))

[T.D. ATF-206, 50 FR 23956, June 7, 1985]



Sec.  28.103  Export marks.

    (a) General. In addition to the marks and brands required to be 
placed on packages and cases of distilled spirits at the time they are 
filled under the provisions of part 19 of this chapter, the proprietor 
shall mark the word ``Export'' on the Government side of each case or 
Government head of each container before removal from the bonded 
premises for any exportation authorized under this subpart.
    (b) Exception. When containers are being removed to a contiguous 
manufacturing bonded warehouse, the proprietor need not place the word 
``Export'' on the containers if the appropriate TTB officer finds the 
omission will not jeopardize the revenue.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 
5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.104  Certificates of origin.

    The entry of distilled spirits at ports in certain foreign countries 
is permitted only upon the filing by the importer of an official 
certificate showing the origin and age of such spirits. An appropriate 
TTB officer may, on request of the applicant, furnish a certificate 
showing the origin and age of the spirits described on TTB Forms 5100.11 
or 5110.30. Such officer may require supporting documentation to be 
provided by the applicant. Certificates of origin and age shall be 
furnished on Form 2177 (5110.58). Form 2177 (5110.58) may also be issued 
for distilled spirits removed to a foreign-trade zone, in which case the 
number and location of the foreign-trade zone shall be shown on the form 
in lieu of the name of the foreign country.

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.105  Report of inspection and tax liability.

    When the spirits are ready for shipment, the proprietor shall 
execute his report of inspection and tax liability on all copies of TTB 
Form 5100.11.

(72 Stat. 1362; 26 U.S.C. 5214)

[T.D. ATF-46, 42 FR 44773, Sept. 6, 1977, as amended by T.D. ATF-62, 44 
FR 71723, Dec. 11, 1979; T.D. TTB-8, 69 FR 3832, Jan. 27, 2004]



Sec.  28.106  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of distilled spirits 
withdrawn without payment of tax under this subpart shall be made under 
the provisions of subpart M.

(72 Stat. 1362; 26 U.S.C. 5214)



Sec.  28.107  Disposition of forms.

    TTB Form 5100.11 and any accompanying package gauge record shall be 
distributed by the proprietor in accordance with the instruction on TTB 
Form 5100.11.

(Approved by the Office of Management and Budget under control number 
1512-0250)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]

                                 Losses



Sec.  28.110  Losses.

    Where there has been a loss of distilled spirits while in transit 
from the bonded premises of a distilled spirits plant to a port of 
export, a customs bonded warehouse, a manufacturing bonded warehouse, a 
vessel or aircraft, or a foreign-trade zone, the provisions of subpart O 
of this part, with respect to losses of spirits after withdrawal without 
payment of tax and to claims

[[Page 822]]

for remission of the tax thereon, shall be applicable.

(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)

[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975]

                  Return of Spirits to Bonded Premises



Sec.  28.115  General.

    Spirits which have been lawfully withdrawn without payment of tax 
under the provisions of this subpart for exportation, or for deposit in 
a foreign-trade zone, a manufacturing bonded warehouse, or a customs 
bonded warehouse, or for use on vessels and aircraft may, subject to the 
requirements of Sec.  28.116, be returned:
    (a) To the bonded premises of a distilled spirits plant for 
redistillation; or
    (b) To the bonded premises from which withdrawn, pending subsequent 
removal for lawful purposes. However, such spirits may only be returned 
before they are exported, deposited in a foreign-trade zone, a 
manufacturing bonded warehouse, or a customs bonded warehouse, or laden 
as supplies upon or used on vessels or aircraft, as the case may be.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365 as amended 
(26 U.S.C. 5214, 5223); Sec. 3, Pub. L. 91-659, 84 Stat. 1365, as 
amended (26 U.S.C. 5066))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3832, Jan. 27, 2004]



Sec.  28.116  Notice of return of spirits withdrawn without payment of tax.

    If a proprietor of a distilled spirits plant desires to return 
spirits to his plant as provided in Sec.  28.115, he shall file a notice 
with the appropriate TTB officer. A copy of the notice shall be prepared 
for submission to the customs official, as required by Sec.  28.117. The 
notice shall be executed under the penalties of perjury and shall show:
    (a) Name, address, and plant number of the distilled spirits plant 
to which the spirits are to be returned.
    (b) Name, address, and plant number of the distilled spirits plant 
which packaged or bottled the spirits.
    (c) Name, address, and plant number of the distilled spirits plant 
from which the spirits were withdrawn.
    (d) Name and address of the principal on the bond under which the 
spirits were withdrawn.
    (e) Serial number of the TTB Form 5100.11 and the date withdrawn.
    (f) Present location of spirits to be returned.
    (g) Kind of spirits to be returned.
    (h) Number, kind, and serial numbers of the containers to be 
returned. In case of bottled spirits, the number and size of the bottles 
in each case.
    (i) Total quantity in proof gallons of spirits to be returned.
    (j) Reason for return of spirits.
    (k) Disposition to be made of returned spirits, i.e., redistillation 
or return to bonded storage.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3832, Jan. 27, 2004]



Sec.  28.117  Responsibility for return of spirits.

    The principal on the bond under which the spirits were withdrawn 
without payment of tax shall be responsible for arranging the return of 
the spirits to the distilled spirits plant receiving them. The principal 
or his agent shall submit a copy of the notice required by Sec.  28.116 
to the appropriate customs official. If the spirits are returned before 
the TTB Form 5100.11 has been filed with the customs official, the 
principal shall submit the form with the notice. The customs officer 
shall, if the spirits are eligible for return under Sec.  28.115, accept 
the notice as authority for the return of the spirits to the distilled 
spirits plant identified in the notice. The customs officer shall retain 
the notice and shall mark each copy of TTB Form 5100.11 ``Canceled'', 
note the date thereon, return both copies to the principal, and, if the 
spirits are in customs custody, release them for return. The principal 
shall retain one copy of the canceled TTB Form 5100.11 and file one

[[Page 823]]

copy with the appropriate TTB officer identified on the form.

(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979, as amended by T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.118  Receipt of spirits.

    The receipt, gauge, and disposition of the distilled spirits at the 
distilled spirits plant shall be in accordance with the applicable 
provisions of subpart U of part 19 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979]



Subpart F_Withdrawal of Wine Without Payment of Tax for Exportation, Use 

   on Vessels and Aircraft, Transfer to a Foreign-Trade Zone or to a 
 Customs Bonded Warehouse, or Transportation to a Manufacturing Bonded 
                                Warehouse



Sec.  28.121  General.

    Wine may, subject to this part, be withdrawn from a bonded wine 
cellar, without payment of tax, for:
    (a) Exportation;
    (b) Use on the vessels and aircraft described in Sec.  28.21;
    (c) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation;
    (d) Transfer to and deposit in a customs bonded warehouse as 
provided in Sec.  28.27; or
    (e) Transportation to and deposit in a manufacturing bonded 
warehouse.

All such withdrawals shall be made under the applicable bond prescribed 
in subpart D.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1380; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5362, 7805; (sec. 201, Pub. L. 85-859. 72 
Stat. 1381, 1382 (26 U.S.C. 5370, 5371)))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979; T.D. ATF-88, 46 
FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982; T.D. TTB-8, 69 FR 
3831, Jan. 27, 2004]



Sec.  28.122  Application or notice, YYN Form 5100.11.

    (a) Export, use on vessels and aircraft, transfer to a customs 
bonded warehouse, and transfer to a foreign-trade zone. Where the 
exporter is not the proprietor of the bonded wine cellar from which the 
wine is to be withdrawn, the exporter must make an application on ATF 
Form 5100.11 for approval of the withdrawal. Where the exporter is the 
proprietor of the bonded wine cellar from which the wine is to be 
withdrawn, the exporter must, at the time of withdrawal of the wine, 
prepare a notice of the withdrawal and shipment on TTB Form 5100.11. TTB 
approval is not required if the exporter is the proprietor of the bonded 
wine cellar from which the wine is to be withdrawn.
    (b) Manufacturing bonded warehouse. The proprietor of the 
manufacturing bonded warehouse must make an application on TTB Form 
5100.11 to withdraw wine without payment of tax for transportation to 
and deposit in such warehouse before withdrawal of the wine.
    (c) Action by appropriate TTB officer. Where, under the provisions 
of paragraphs (a) and (b) of this section, an TTB Form 5100.11 is 
submitted to the appropriate TTB officer for approval, the appropriate 
TTB officer shall, if satisfied that the application is in order and 
that the applicant has on file a good and sufficient bond, approve the 
application and forward it to the proprietor of the premises from which 
the wines are to be withdrawn.
    (d) Restriction on shipment. Where, under the provisions of 
paragraphs (a) and (b) of this section, prior approval of TTB Form 
5100.11 by the appropriate TTB officer is required, the proprietor of 
the bonded wine cellar may not ship the wine until the approved TTB 
Forms 5100.11 have been received by him. In such cases, the proprietor 
of the bonded wine cellar shall, on removal of the wines, execute his 
certificate of removal on TTB Form 5100.11.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]

    Editorial Note: For Federal Register citations affecting Sec.  
28.122, see the List of CFR

[[Page 824]]

Sections Affected in the Finding Aids section of this volume.



Sec.  28.123  Export marks.

    (a) General. In addition to the marks and brands required to be 
placed on packages or cases of wine at the time they are filled under 
the provisions of part 24 of this chapter, the proprietor shall mark the 
word ``Export'' on the Government side of each case or Government head 
of each container before removal from the bonded premises for any 
exportation authorized under this subpart, including withdrawals under 
26 U.S.C. 5362(c)(4).
    (b) Exception. When containers are being removed to a contiguous 
manufacturing bonded warehouse, the proprietor need not place the word 
``Export'' on the containers if the appropriate TTB officer finds the 
omission will not jeopardize the revenue.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 
5362, 7805))

[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981, as amended by T.D. ATF-88, 46 
FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982; T.D. ATF-299, 55 FR 
25033, June 19, 1990; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.124  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of wines withdrawn without 
payment of tax under this subpart shall be made under the provisions of 
subpart M of this part.

(72 Stat. 1380; 26 U.S.C. 5362)



Sec.  28.125  Disposition of forms.

    On removal of the wines from the premises of the bonded wine cellar, 
the proprietor shall forward one copy of TTB Form 5100.11 to the 
appropriate TTB officer, retain one copy for his files, and deliver the 
original and remaining copy to the officer to whom the shipment is 
consigned, or in whose care it is shipped, as required by subpart M. 
Where the shipment is for delivery for use on aircraft, the copy marked 
``Consignee's Copy'', provided for in Sec.  28.122, shall be forwarded 
to the airline company at the airport.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.126  Proprietor's report.

    The records of the proprietor of the bonded wine cellar shall 
reflect the quantity of wine removed without payment of tax under this 
subpart, and he shall report the quantity of wine so removed on TTB F 
5120.17.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-299, 55 FR 25033, June 19, 1990; T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.127  Losses.

    Where there has been a loss of wine while in transit from a bonded 
wine cellar to a port of export, a foreign-trade zone, a vessel or 
aircraft, a customs bonded warehouse, or a manufacturing bonded 
warehouse, the provisions of subpart O of this part, with respect to 
losses of wine after withdrawal without payment of tax and to claims for 
remission of the tax thereon, shall be applicable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382, (26 U.S.C. 5370, 5371))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]

                  Return of Wines to Bonded Wine Cellar



Sec.  28.130  General.

    On application of the proprietor of a bonded wine cellar, wine which 
has been lawfully withdrawn without payment of tax under the provisions 
of this subpart for exportation, or for use on vessels and aircraft, or 
for deposit in a foreign-trade zone, in a manufacturing bonded 
warehouse, or in a customs bonded warehouse, may for good cause be 
returned to the bonded wine cellar from which withdrawn, for storage 
pending subsequent removal for lawful purposes. However, such wine must 
be returned before being exported, laden as supplies or used aboard 
vessels or aircraft, or deposited in a foreign-trade zone, in a 
manufacturing

[[Page 825]]

bonded warehouse, or in a customs bonded warehouse, as the case may be.

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]



Sec.  28.131  Application for return of wines withdrawn without payment of tax.

    Where a proprietor of a bonded wine cellar desires to return wines 
to his bonded wine cellar as provided in Sec.  28.130, he shall submit a 
written application, in duplicate, to the appropriate TTB officer, for 
approval of the return of the wines. The application shall show.
    (a) Name, address, and registry number of the bonded wine cellar.
    (b) Name and address of the principal on the bond under which the 
wines were withdrawn.
    (c) Serial number of the TTB Form 5100.11 and the date withdrawn.
    (d) Present location of wines to be returned.
    (e) Kind of wines to be returned.
    (f) Number, kind, and serial numbers of the containers to be 
returned. In the case of bottled wines, the number and size of the 
bottles in each case.
    (g) Total quantity in wine gallons for each separate tax class of 
wines to be returned.
    (h) Reason for return of the wines.

The application shall be executed under the penalties of perjury. On 
approval of the application the appropriate TTB officer shall return 
both copies to the proprietor, who, in turn, shall deliver them to the 
exporter.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.132  Responsibility for return of wine.

    The principal on the bond under which the wines were withdrawn 
without payment of tax shall be responsible for arranging the return of 
the wines to the bonded wine cellar from which they were withdrawn. In 
case of emergency, the principal on the bond may arrange the return of 
wines to bonded premises without an approved application, but such wines 
shall be kept separate at the bonded premises and shall not be recorded 
in the records and reports of the proprietor until an approved 
application for such return has been obtained as provided in Sec.  
28.131. Such principal or his agent shall present to the appropriate 
customs official the two copies of the approved application authorizing 
the return unless the wines are returned before the TTB Form 5100.11 has 
been filed with the customs official. The customs officer shall, if he 
finds that the wines are eligible for return under Sec.  28.130, accept 
the approved application as authority for the return of the wines to the 
bonded wine cellar noted on the application and shall mark each copy of 
TTB Form 5100.11 ``Canceled'', note the date thereon, affix a copy of 
the approved application to each of the canceled TTB Forms 5100.11, 
return both TTB Forms 5100.11 to the principal, and, where the wines are 
in his custody, release them for return. The canceled TTB Forms 5100.11, 
with attachments, shall be delivered by such principal or his agent to 
the proprietor of the bonded wine cellar. When wines have been returned 
before the TTB Forms 5100.11 were filed with customs officials, the two 
copies of the approved application shall be submitted, by the principal 
or his agent, to the proprietor of the bonded wine cellar who shall 
cancel and date each copy of TTB Form 5100.11 and affix copies of the 
approved application thereto.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.133  Disposition of forms.

    On receipt of the wines at the bonded wine cellar, the proprietor 
shall endorse, on each copy of the approved application to return the 
wines, the date received, the total amount in wine gallons of each tax 
class of wine returned, and affix his signature. He shall forward the 
original TTB Form 5100.11, with attached application, to the appropriate 
TTB officer, and retain the remaining copy for his files. The storage, 
disposition, and records pertaining

[[Page 826]]

to such returned wines shall be in accordance with the applicable 
provisions of part 24 of this chapter.

(72 Stat. 1380; 26 U.S.C. 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



 Subpart G_Removal of Beer and Beer Concentrate Without Payment of Tax 
for Exportation, Use as Supplies on Vessels and Aircraft, or Transfer to 
                          a Foreign-Trade Zone

    Source: T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, unless otherwise 
noted.



Sec.  28.141  General.

    (a) Beer. Beer may, subject to this part, be removed from the 
brewery without payment of tax for:
    (1) Export to a foreign country;
    (2) Use as supplies on the vessels and aircraft described in Sec.  
28.21; or
    (3) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation.
    (b) Beer concentrate. Concentrate, produced from beer under the 
provisions of subpart R of part 25 of this chapter may, subject to this 
part, be removed from the brewery without payment of tax for:
    (1) Export to a foreign country; or
    (2) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation.
    (c) Bond. All removals of beer or beer concentrate will be made by 
the brewer under the provisions of the brewer's bond, Form 5130.22 as 
prescribed in Sec.  28.60.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))

[ T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.142  Notice, Form 1689 (5130.12).

    When a brewer intends to remove beer or beer concentrate without 
payment of tax from a brewery for exportation or for transportation to 
and deposit in a foreign-trade zone, or remove beer for use as supplies 
on vessels and aircraft, the brewer shall prepare a notice on Form 1689 
(5130.12) for each withdrawal. The brewer shall execute Form 1689 
(5130.12) in quadruplicate, except when the shipment is for use on 
aircraft the brewer shall execute an extra copy which will be marked 
``Consignee's Copy.''

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))



Sec.  28.143  Containers.

    (a) Beer. Beer being exported, used as supplies on vessels and 
aircraft, or transferred to and deposited in a foreign-trade zone, 
without payment of tax, may be removed in bottles, kegs, or bulk 
containers.
    (b) Beer concentrate. Concentrate may not be removed for export, or 
for transfer to and deposit in a foreign-trade zone, in containers of 
the kind ordinarily used by brewers for the removal of beer for 
consumption or sale.



Sec.  28.144  Export marks.

    (a) General Requirement. In addition to the marks and brands 
required to be placed on containers of beer or beer concentrate under 
the provisions of part 25 of this chapter, the brewer shall mark the 
word ``Export'' on each container or case of beer, or the words ``Beer 
concentrate for export'' on each container of beer concentrate, before 
removal from the brewery for any exportation authorized under this 
subpart.
    (b) Exceptions. A brewer need not apply the mark ``Export'' on cases 
of beer being exported under the following circumstances:
    (1) When beer is being directly exported by the brewer, and the 
brewer can furnish documentation (such as an ocean or air freight bill 
of lading, or a foreign landing certificate) that the beer was directly 
exported to a foreign country;
    (2) When cased beer is transferred from a brewery to a foreign-trade 
zone for export or for storage pending exportation; or

[[Page 827]]

    (3) When cased beer is exported to the military.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))



Sec.  28.145  Consignment, shipment and delivery.

    The consignment, shipment and delivery of beer or beer concentrate 
removed from a brewery without payment of tax under this subpart will be 
in accordance with the applicable provisions of subpart M of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))



Sec.  28.146  Disposition of forms.

    On removal of the beer or beer concentrate withdrawn under the 
provisions of this subpart, the brewer shall forward one copy of Form 
1689 (5130.12) to the appropriate TTB officer, retain one copy for the 
files, and deliver the original and remaining copy to the officer to 
whom the shipment is consigned, or in whose care it is shipped, as 
required by subpart M of this part. When the shipment is for delivery 
for use on aircraft, the copy marked ``Consignee's Copy,'' provided for 
in Sec.  28.142, will be forwarded to the airline company at the 
airport.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 
5053))

[ T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.147  Return of beer or beer concentrate.

    Beer or beer concentrate removed without payment of tax under the 
provisions of this subpart may be returned to be brewery from which 
removed if lading of the beer or beer concentrate is delayed more than 
the period provided in Sec.  28.262 or when the brewer has other good 
cause for return. The brewer shall request the district director of 
customs to release the beer or beer concentrate for return to the 
brewery and, on such release, the district director of customs shall 
endorse both copies of the appropriate Form 1689 (5130.12) to show the 
release of the beer or beer concentrate and shall return the forms to 
the brewer. On return of the beer or beer concentrate to the brewery, 
the brewer shall record the quantity in the brewery daily records, mark 
the two copies of Form 1689 (5130.12) returned by the district director 
of customs, ``Canceled--Returned to Brewery,'' and forward one copy to 
the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended 
(26 U.S.C. 5053, 5056))

[ T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.148  Brewer's report.

    The brewer's records shall reflect the quantity of beer or beer 
concentrate removed without payment of tax under this subpart, and the 
brewer shall report the quantity of beer or beer concentrate so removed 
on Form 5130.9. The total quantity of beer or beer concentrate involved 
in all export shipments returned during any reporting period will be 
reported as a separate entry on Form 5130.9.

(Approved by the Office of Management and Budget under control number 
1512-0052)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))

[T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. ATF-345, 58 
FR 40358, July 28, 1993]



Sec.  28.149  Losses.

    When there has been a loss of beer or beer concentrate while in 
transit from the brewery to a port for exportation, or for lading as 
supplies on a vessel or aircraft, or to a foreign-trade zone, the 
provisions of subpart O of this part, with respect to losses are 
applicable.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended 
(26 U.S.C. 5051, 5053))



Sec.  28.150  Charges and credits on bond.

    The removal of beer concentrate from the brewery without payment of 
tax under this subpart will constitute a charge against the brewer's 
bond, Form 5130.22, of an amount equal to the tax which would be due on 
removal for consumption or sale, including penalties

[[Page 828]]

and interest, on all beer used to produce the concentrate which is 
removed. The satisfactory accounting for concentrate so removed will 
constitute a credit to the bond.

[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986]

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended 
(26 U.S.C. 5051, 5053))



 Subpart H_Withdrawal of Specially Denatured Spirits, Free of Tax, for 
             Exportation or Transfer to a Foreign-Trade Zone



Sec.  28.151  General.

    Specially denatured spirits may, under this part, be withdrawn from 
the bonded premises of a distilled spirits plant, free of tax, for:
    (a) Exportation; or
    (b) Transfer to and deposit in a foreign-trade zone for exportation 
or for storage pending exportation.

All such withdrawals shall be made under a consent of surety on the 
proprietor's operations or unit bond, as prescribed in Sec.  28.58(c).

(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.152  Notice, TTB Form 5100.11.

    Notice of withdrawal of specially denatured spirits, as authorized 
in Sec.  28.151 shall be made on TTB Form 5100.11 by the proprietor of 
the distilled spirits plant from which the denatured spirits are to be 
withdrawn.

[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3833, Jan. 27, 2004]



Sec.  28.153  Withdrawal procedure.

    The provisions of Sec. Sec.  28.93, 28.94, 28.98, 28.105, and 28.117 
in respect of method of conveyance, authorized containers, gauging, 
inspection, approval and shipment, report of removal, and disposition of 
forms shall be applicable to specially denatured spirits to be withdrawn 
under the provisions of this subpart.

(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)

[T.D. ATF-46, 42 FR 44774, Sept. 6, 1977, as amended by T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.154  Export marks.

    In addition to the marks and brands required to be placed on 
packages and cases at the time they are filled under the provisions of 
part 19 of this chapter, the proprietor shall mark the word ``Export'' 
on the Government side of each case or Government head of each container 
before removal from the bonded premises for any exportation authorized 
under this subpart.

(Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); 
sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]



Sec.  28.155  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of specially denatured 
spirits withdrawn free of tax under this subpart shall be made under the 
provisions of subpart M of this part.

(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)



Sec.  28.156  Losses.

    Where there has been a loss of specially denatured spirits while in 
transit from the bonded premises of a distilled spirits plant to a port 
of export or a foreign-trade zone, the exporter shall file claim for 
allowance of the loss in accordance with the provisions of subpart O of 
this part.

        Return of Specially Denatured Spirits to Bonded Premises



Sec.  28.160  General.

    Specially denatured spirits, which have been lawfully withdrawn free 
of tax under the provisions of this part for exportation, or for deposit 
in a foreign-trade zone, may, subject to the requirements of Sec.  
28.161, be returned:
    (a) To the bonded premises of a distilled spirits plant for 
redistillation; or

[[Page 829]]

    (b) To the bonded premises of any distilled spirits plant pending 
subsequent lawful withdrawal free of tax. However, such specially 
denatured spirits may only be returned before they are exported, or 
deposited in a foreign-trade zone. If the specially denatured spirits 
are to be returned to bonded premises for storage without 
redistillation, the proprietor shall also execute a consent of surety 
Form 1533 to extend the terms of his operations or unit bond to cover 
the return and storage of such specially denatured spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3833, Jan. 27, 2004]



Sec.  28.161  Notice of return of specially denatured spirits.

    If a proprietor of a distilled spirits plant desires to return 
specially denatured spirits to his plant as provided in Sec.  28.160, he 
shall file a notice with the appropriate TTB officer. A copy of the 
notice shall be prepared for submission to the customs official, as 
required by Sec.  28.162. The notice shall be executed under the 
penalties of perjury and shall show:
    (a) Name, address, and plant number of the distilled spirits plant 
to which the specially denatured spirits are to be returned.
    (b) Name, address, and plant number of the distilled spirits plant 
from which the specially denatured spirits were withdrawn.
    (c) Serial number of the TTB Form 5100.11 and the date withdrawn.
    (d) Present location of specially denatured spirits to be returned.
    (e) Description of the specially denatured spirits--kind, serial 
numbers of containers, and quantity in wine gallons.
    (f) Reason for return of the specially denatured spirits.
    (g) Disposition to be made of specially denatured spirits, i.e. 
redistillation or return to processing on the bonded premises.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. ATF-198, 50 
FR 8561, Mar. 1, 1985; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.162  Responsibility for return of specially denatured spirits.

    The principal on the bond under which the specially denatured 
spirits were withdrawn free of tax shall be responsible for arranging 
the return of the spirits to the distilled spirits plant receiving them. 
The principal or his agent shall submit a copy of the notice required by 
Sec.  28.161 to the appropriate customs official. If the specially 
denatured spirits are returned before the TTB Form 5100.11 has been 
filed with the customs official, the principal shall submit the form 
with the notice. The customs officer shall, if the specially denatured 
spirits are eligible for return under Sec.  28.160, accept the notice as 
authority for the return of the specially denatured spirits to the 
distilled spirits plant identified in the notice. The customs officer 
shall retain the notice and shall mark each copy of TTB Form 5100.11 
``Canceled'', note the date thereon, return both copies to the 
principal, and, if the spirits are in customs custody, release them for 
return. The principal shall retain one copy of the canceled TTB Form 
5100.11 and file one copy with the appropriate TTB officer identified on 
the form.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979, as amended by T.D. TTB-8, 69 
FR 3833, Jan. 27, 2004]



Sec.  28.163  Receipt of specially denatured spirits.

    The receipt, gauge, and disposition of the specially denatured 
spirits at the

[[Page 830]]

distilled spirits plant shall be in accordance with the applicable 
provisions of subpart U of part 19 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended 
(26 U.S.C. 5214, 5223))

[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]



   Subpart I_Exportation of Distilled Spirits With Benefit of Drawback



Sec.  28.171  General.

    Distilled spirits manufactured, produced, bottled in bottles, packed 
in containers, or packaged in casks or other bulk containers in the 
United States on which an internal revenue tax has been paid or 
determined, and which have been marked under the provisions of 27 CFR 
part 19 and of this part, as applicable, especially for export with 
benefit of drawback may be:
    (a) Exported;
    (b) Laden for use on the vessels or aircraft described in Sec.  
28.21; or
    (c) Transferred to and deposited in a foreign-trade zone for 
exportation or for storage pending exportation; or
    (d) Transferred to and deposited in a customs bonded warehouse as 
provided for in Sec.  28.26(b).

On receipt by the appropriate TTB officer of required evidence of 
exportation, lading for use, or transfer, there shall be allowed to the 
bottler (or packager) of the spirits, drawback equal in amount to the 
tax found to have been paid or determined on the spirits.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[25 FR 5734, June 23, 1960, as amended by T.D. 7112, 36 FR 8581, May 8, 
1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
28.171, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

                      Filing of Notice and Removal



Sec.  28.190  Notice, TTB Form 5110.30.

    Notice of shipment of distilled spirits for export, for use as 
supplies on vessels or aircraft, for deposit in a foreign-trade zone, or 
for deposit in a customs bonded warehouse, shall be prepared by the 
exporter on TTB Form 5110.30, in accordance with the instructions on the 
form.

(48 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as 
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3833, Jan. 27, 2004]



Sec.  28.191  [Reserved]



Sec.  28.192  Packages of distilled spirits to be gauged.

    Except for spirits which may be tax determined on the basis of the 
original gauge, spirits in packages which are to be removed for export 
with benefit of drawback, shall be gauged by the distilled spirits plant 
proprietor prior to preparation of notice on TTB Form 5110.30. When 
spirits in packages are gauged, a package gauge record shall be prepared 
by the proprietor, as provided in 27 CFR part 19, and a copy of the 
package gauge record shall be attached to each copy of TTB Form 5110.30 
and considered a part of the claim.

(Approved by the Office of Management and Budget under control number 
1512-0250 and 1512-0199)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3833, Jan. 27, 2004]



Sec.  28.193  Export marks.

    In addition to the marks and brands required to be placed on 
packages or other bulk containers and cases under the provisions of part 
19 of this chapter, the exporter shall mark the word ``Export'' on the 
Government side of each case or Government head of each container before 
removal for export, for use on vessels or aircraft, or for

[[Page 831]]

transfer to a foreign-trade zone or a customs bonded warehouse.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 
5066))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]



Sec. Sec.  28.194-28.195  [Reserved]



Sec.  28.195b  Claims on spirits tax determined on and after January 1, 1980.

    (a) Preparation. Claims for drawback of tax on spirits tax 
determined on and after January 1, 1980, and withdrawn for any purpose 
authorized by Sec.  28.171, shall be prepared in duplicate by the 
bottler or packager on parts II and III of TTB Form 5110.30.
    (b) Supporting documents. Each claim shall be supported by an 
invoice, bill of lading or other document which identifies the date of 
tax determination, unless the bill of lading required by Sec.  28.250 
identifies this date. Additional supporting documents are required if 
the claim covers distilled spirits products on which the claimed 
drawback rate exceeds the rate of tax imposed by 26 U.S.C. 5001 or 7652 
on each proof gallon or part thereof of distilled spirits produced in or 
imported into the United States (e.g., a product containing alcoholic 
flavoring materials on which drawback has been claimed by the 
manufacturer of the material under 26 U.S.C. 5131-5134). For each such 
product, the additional supporting documents shall consist of a copy of 
each related dump and batch record, package gauge record as prescribed 
in 27 CFR part 19, and/or bottling and packaging record. The appropriate 
TTB officer may also require these or other supporting documents for any 
distilled spirits product.
    (c) Filing. One copy of the claim, with supporting documents, if 
required, shall be filed with the appropriate TTB officer. The bottler 
or packager shall retain the other copy on file.

(Approved by the Office of Management and Budget under control number 
1512-0198)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-212, 50 
FR 34123, Aug. 23, 1985; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.196  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of distilled spirits removed 
under this subpart for export, use on vessels or aircraft, transfer to a 
customs bonded warehouse, or transfer to a foreign-trade zone, shall be 
in accordance with the applicable provisions of subpart M of this part.

(72 Stat. 1336, 84 Stat. 1965; 26 U.S.C. 5062, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975]



Sec.  28.197  Return of spirits withdrawn for export with benefit of drawback.

    When notice is filed by an exporter as provided in Sec.  28.198, 
spirits on which the tax has been paid or determined, and which were 
withdrawn especially for export with benefit of drawback as provided in 
Sec.  28.171, but which spirits have not been laden for export, laden 
for use, or deposited in a customs bonded warehouse or foreign-trade 
zone, may for good cause be returned under the applicable provisions of 
this part and 27 CFR part 19:
    (a) To the bonded premises of the distilled spirits plant for 
purposes authorized under 26 U.S.C.; or
    (b) To a wholesale liquor dealer; or
    (c) To a taxpaid storeroom.

The export marks on spirits returned under this section shall be removed 
by obliteration, relabeling or recasing.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-206, 50 
FR 23956, June 7, 1985; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.198  Notice of return.

    If an exporter desires to return spirits to a distilled spirits 
plant, wholesale liquor dealer or taxpaid storeroom,

[[Page 832]]

as provided in Sec.  28.197, he shall file a notice, executed under the 
penalties of perjury, with the appropriate TTB officer. The notice shall 
be prepared in triplicate for submission to the customs official as 
required in Sec.  28.199. The notice shall show the:
    (a) Name, address, and plant number of the distilled spirits plant 
which packaged or bottled the spirits;
    (b) Date and serial number of the TTB Form 5110.30 on which the 
spirits were withdrawn;
    (c) Present location of the spirits to be returned;
    (d) Number, size and identification of the containers;
    (e) Proof of spirits;
    (f) Reason for the return; and
    (g) Planned disposition of the returned spirits.

(Approved by the Office of Management and Budget under control number 
1512-0206)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended at T.D. TTB-8, 69 FR 
3833, Jan. 27, 2004]



Sec.  28.199  Responsibility for return of spirits withdrawn for export with benefit of drawback.

    The exporter shall be responsible for arranging the return of the 
spirits under this subpart to the proprietor or wholesale liquor dealer 
who will receive them. The exporter or his agent shall submit the 
original and copies of the notice required by Sec.  28.198 to the 
appropriate customs official. If the spirits are returned before TTB 
Form 5110.30 has been filed with the customs official, the exporter 
shall submit Form 5110.30 with the notice. The customs officer shall, if 
the spirits are eligible for return under Sec.  28.197, accept the 
notice as authority for the return of the spirits to the premises 
identified in the notice. The customs official shall acknowledge receipt 
on the notice, retain a copy, and return the original and one copy of 
the notice to the exporter. The exporter shall retain the copy of the 
notice and file the original of the notice with the appropriate TTB 
officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3833, Jan. 27, 2004]

Subpart J [Reserved]



         Subpart K_Exportation of Wine With Benefit of Drawback



Sec.  28.211  General.

    Wines manufactured, produced, bottled in bottles packed in 
containers, or packaged in casks or other bulk containers in the United 
States on which an internal revenue tax has been paid or determined, and 
which are filled on premises qualified under this chapter to package or 
bottle wines, may, subject to this part, be:
    (a) Exported;
    (b) Laden for use on the vessels or aircraft described in Sec.  
28.21; or
    (c) Transferred to and deposited in a foreign-trade zone for 
exportation or for storage pending exportation.

On receipt by the appropriate TTB officer of required evidence of 
exportation, lading for use, or transfer, there shall be allowed a 
drawback equal in amount to the tax found to have been paid or 
determined on the wines.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-51, 43 FR 24245, June 2, 1978; T.D. TTB-8, 69 FR 
3833, Jan. 27, 2004]



Sec.  28.212  Persons authorized.

    Persons who have qualified under this chapter as proprietors of 
distilled spirits plants, bonded wine cellars, or taxpaid wine bottling 
houses, and persons who are wholesale liquor dealers as defined in 
section 5112, I.R.C., and have paid the required tax as a wholesale 
liquor dealer, are authorized to remove wines under the provisions of 
this subpart.

(72 Stat. 1336; 26 U.S.C. 5062)

[[Page 833]]



Sec.  28.213  [Reserved]



Sec.  28.214  Notice and claim, Form 1582-A (5120.24).

    Claim for allowance of drawback of internal revenue taxes on wines 
removed under the provisions of Sec.  28.211 and Sec.  28.212, shall be 
prepared by the exporter on Form 1582-A (5120.24), in quadruplicate: 
Provided, That where the withdrawal is for use on aircraft, an extra 
copy, marked ``Consignee's Copy'', shall be prepared. Each Form 1582-A 
(5120.24) shall be given, by the exporter, a serial number beginning 
with ``1'' for the first day of January of each year and running 
consecutively thereafter to December 31, inclusive.

(46 Stat. 690, as amended, 72 Stat. 1336; 19 U.S.C. 1309, 26 U.S.C. 
5062)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.215  Certificate of tax determination, Form 2605 (5120.20).

    Every claim for drawback of tax on Form 1582-A (5120.24) shall be 
supported by a certificate, Form 2605 (5120.20), which shall be 
executed, in duplicate, (a) by the person who withdrew the wine from 
bond on tax determination, certifying that all taxes have been properly 
determined on such wine, or (b) where the wine was bottled or packaged 
after tax determination, by the person who did such bottling or 
packaging, certifying that the wines so bottled or packaged were 
received in taxpaid status and specifying from whom they were so 
received. The appropriate TTB officer may require other evidence of tax 
payment whenever such officer deems it necessary. The exporter is 
responsible for securing Form 2605 (5120.20), properly executed, and 
submitting the original of such form with the claim. The exporter shall 
retain the copy of Form 2605 (5120.20) for his files.

(72 Stat. 1336; 26 U.S.C. 5062)



Sec.  28.216  Export marks.

    In addition to the marks and brands required to be placed on 
packages or other bulk containers and cases under the provisions of 
parts 24 of this chapter, the exporter shall mark the word ``Export'' on 
the Government side of each case or Government head of each container 
before removal for export, for use on vessels or aircraft, or for 
transfer to a foreign-trade zone.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 
5062))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-299, 55 
FR 25034, June 19, 1990; T.D. ATF-372, 61 FR 20725, May 8, 1996]



Sec.  28.217  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of wines removed under this 
subpart shall be made under the provisions of subpart M of this part.

(72 Stat. 1336; 26 U.S.C. 5062)



Sec.  28.218  Disposition of Forms 1582-A (5120.24).

    On removal of the wines from the premises, the exporter shall 
forward one copy of Form 1582-A (5120.24) to the appropriate TTB 
officer, retain one copy for his files, and deliver the original and 
remaining copy to the officer to whom the shipment is consigned, or in 
whose care it is shipped, as required by subpart M of this part. Where 
the shipment is for delivery for use on aircraft, the copy marked 
``Consignee's Copy'', provided for in Sec.  28.214, shall be forwarded 
to the airline company at the airport.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5062)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.219  Return of wine withdrawn for export with benefit of drawback.

    When notice is filed by an exporter as provided in Sec.  28.220, 
wine on which the tax has been paid or determined, and which was 
withdrawn especially for export with benefit of drawback as provided in 
Sec.  28.211, but which wine has not been laden for export, laden for 
use, or deposited in a foreign-trade zone, may for good cause be 
returned under the

[[Page 834]]

applicable provisions of this part and 27 CFR part 24:
    (a) To a taxpaid storeroom at a bonded wine celler; or
    (b) To a wholesale liquor dealer.

The export marks on wines returned under this section shall be removed 
from the containers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. ATF-344, 58 
FR 40355, July 28, 1993; T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.220  Notice of return.

    If an exporter desires to return wine to a bonded wine cellar or 
wholesale liquor dealer as provided in Sec.  28.219, he shall file a 
notice, executed under the penalties of perjury, with the appropriate 
TTB officer. The notice shall be prepared in triplicate for submission 
to the customs official as required in Sec.  28.220a. The notice shall 
show the:
    (a) Name, address, and registration number of the bonded wine cellar 
from which withdrawn;
    (b) Date and serial number of the Form 1582-A (5120.24) on which the 
wine was withdrawn;
    (c) Present location of the wine to be returned;
    (d) Number, size and identification of the containers;
    (e) Total wine gallons for each tax class of wine; and
    (f) Reason for the return.

(Approved by the Office of Management and Budget under control number 
1512-0292)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985; 50 FR 23410, June 4, 1985, as 
amended by T.D. TTB-8, 69 FR 3833, Jan. 27, 2004]



Sec.  28.220a  Responsibility for return of wine withdrawn for export with benefit of drawback.

    The exporter shall be responsible for arranging the return of wine 
under this subpart to the proprietor or wholesale liquor dealer 
receiving the wine. The exporter or his agent shall submit the original 
and copies of the notice required by Sec.  28.220 to the appropriate 
customs official. If the wine is returned before Form 1582-A (5120.24) 
has been filed with the customs official, the exporter shall submit TTB 
Form 1582-A with the notice. The customs officer shall, if the wine is 
eligible for return under Sec.  28.219, accept the notice as authority 
for the return of the wine to the premises identified in the notice. The 
customs officer shall acknowledge receipt of the notice, retain a copy, 
and return the original and one copy of the notice to the exporter. The 
exporter shall retain the copy and file the original of the notice with 
the appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. TTB-8, 69 
3834, Jan. 27, 2004]



         Subpart L_Exportation of Beer With Benefit of Drawback



Sec.  28.221  General.

    Beer brewed or produced in the United States and on which the 
internal revenue tax has been paid may, subject to this part, be:
    (a) Exported;
    (b) Delivered for use as supplies on the vessels and aircraft 
described in Sec.  28.21; or
    (c) Transferred to and deposited in a foreign-trade zone for 
exportation or for storage pending exportation.

Claim for drawback of taxes found to have been paid may be filed only by 
the producing brewer or his duly authorized agent. On receipt by the 
appropriate TTB officer of required evidence of such exportation, 
delivery for use, or transfer, there shall be allowed a drawback equal 
in amount to the tax found to have been paid on such beer.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)

[25 FR 5734, June 23, 1960, unless otherwise noted. Redesignated at 40 
FR 16835, Apr. 15, 1975. Redesignated and amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]



Sec.  28.222  Claim, Form 1582-B (5130.6).

    Claim for allowance of drawback of internal revenue taxes on beer 
brewed or produced in the United States shall be prepared on Form 1582-B 
(5130.6), in quadruplicate, as required by this part. Each Form 1582-B 
(5130.6) shall be given, by the person initiating the

[[Page 835]]

form, a serial number beginning with ``1'' for the first day of January 
of each year and running consecutively thereafter to December 31, 
inclusive.

(72 Stat. 1335; 26 U.S.C. 5055)



Sec.  28.223  Export marks.

    In addition to the marks and brands required to be placed on kegs, 
barrels, cases, crates or other packages under the provisions of part 25 
of this chapter, the exporter shall mark the word ``Export'' on each 
container or case before removal for export, for use on vessels or 
aircraft, or for transfer to a foreign-trade zone.

(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 
5055))

[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-224, 51 
FR 7700, Mar. 5, 1986]

                           Execution of Claims



Sec.  28.225  Removals of beer by brewer.

    Where a brewer removes taxpaid beer from the brewery or from its 
place of storage elsewhere for exportation, for lading for use as 
supplies on vessels or aircraft, or for deposit in a foreign-trade zone, 
he shall execute the notice and claim on Form 1582-B (5130.6). On 
removal of the beer for shipment the brewer shall file one copy of Form 
1582-B with the appropriate TTB officer, retain one copy for his files, 
and immediately forward the original and one copy of the form:
    (a) In case of shipments for export or for use as supplies on 
vessels or aircraft, to the district director of customs at the port of 
export; or
    (b) In the case of shipments to the armed services of the United 
States for export, to the commanding or supply officer to whom the 
shipment is consigned; or
    (c) In the case of shipments to a foreign-trade zone, to the customs 
officer in charge of the zone.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by 
T.D. TTB-85, 69 FR 3834, Jan. 27, 2004]



Sec.  28.226  Removals of beer by agent on behalf of brewer.

    Where proper power of attorney authorizing an agent to execute a 
claim on behalf of the brewer has been filed with the appropriate TTB 
officer, such agent may, for any of the purposes authorized in Sec.  
28.221, remove taxpaid beer from the brewery where produced or from its 
place of storage elsewhere, and execute the notice and claim on Form 
1582-B (5130.6) on behalf of the brewer. On removal of the beer, such 
agent shall dispose of Form 1582-B in accordance with the applicable 
procedure set forth in Sec.  28.225.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)

[25 FR 5734, June 23, 1960, unless otherwise noted. Redesignated at 40 
FR 16835, Apr. 15, 1975. Redesignated and amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]



Sec.  28.227  Removals of beer by persons other than the brewer or agent of the brewer.

    Where there is a removal of taxpaid beer by a person other than the 
brewer or the agent of the brewer for any of the purposes authorized in 
Sec.  28.221, such person shall execute the notice, only, on Form 1582-B 
(5130.6). Where the removal consists of the products of more than one 
brewer, separate Forms 1582-B shall be prepared for the products of each 
brewer. On removal of the beer for shipment such person shall forward 
two copies of Form 1582-B (5130.6) to the producing brewer, and 
immediately forward the original and one copy of the form as prescribed 
in Sec.  28.225(a), (b), or (c), as the case may be. On receipt of the 
two copies of Form 1582-B (5130.6) from the exporter, the brewer shall, 
if he wishes to claim drawback on the beer covered thereby, execute the 
claim for drawback on both copies of

[[Page 836]]

the form, file one copy of the claim with the appropriate TTB officer, 
and retain the remaining copy for his files.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19 
U.S.C. 1309, 81c, 26 U.S.C. 5055)

[25 FR 5734, June 23, 1960, unless otherwise noted. Redesignated at 40 
FR 16835, Apr. 15, 1975. Redesignated and amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]

                   Consignment, Shipment, and Delivery



Sec.  28.230  Consignment, shipment, and delivery.

    The consignment, shipment, and delivery of taxpaid beer removed 
under this subpart shall be made under the provisions of subpart M of 
this part.

(72 Stat. 1335; 26 U.S.C. 5055)



                Subpart M_Shipment or Delivery for Export

                               Consignment



Sec.  28.241  Shipment for export, or for use on vessels.

    All liquors and specially denatured spirits intended for export or 
liquors intended for use as supplies on vessels shall be consigned to 
the district director of customs at the port of exportation, or port of 
lading for supplies on vessels, except that when the shipment is for 
export to a contiguous foreign territory it shall be consigned to the 
foreign consignee at destination in care of the district director of 
customs at the port of export.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec.  28.242  Shipment for use on aircraft.

    (a) Distilled spirits and wine. All distilled spirits and wines 
intended for use on aircraft shall be consigned to the airline at the 
airport from which the aircraft will depart in international travel, in 
care of the district director of customs. On receipt of the distilled 
spirits or wines they shall be stored at the airport under customs 
custody until laden on aircraft.
    (b) Beer. Beer intended for use on aircraft shall be consigned to 
the district director of customs at the port of lading.

(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 1309, 26 
U.S.C. 5214, 5362)

[25 FR 5734, June 23, 1969, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]



Sec.  28.243  Shipment to armed services.

    On removal of distilled spirits, wines, or beer for export to the 
armed services of the United States, the shipment shall be consigned to 
the commanding officer or supply officer at the supply base or other 
place of delivery.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)



Sec.  28.244  Shipment to manufacturing bonded warehouse.

    Distilled spirits and wines withdrawn for shipment to a 
manufacturing bonded warehouse shall be consigned to the proprietor of 
such warehouse in care of the customs officer in charge of the 
warehouse.

(72 Stat. 1362, 1380; 26 U.S.C. 5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979]



Sec.  28.244a  Shipment to a customs bonded warehouse.

    Distilled spirits and wine withdrawn for shipment to a customs 
bonded warehouse shall be consigned in care of the customs officer in 
charge of the warehouse.

(Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); 
sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]



Sec.  28.245  Shipment to foreign-trade zone.

    Where distilled spirits (including specially denatured spirits), 
wines, or beer, are transferred to a foreign-trade zone for exportation 
or for storage pending exportation, the shipment shall be consigned to 
the Zone Operator in care of the customs officer in charge of the zone.

(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 81c, 26 U.S.C. 
5214, 5362)

[[Page 837]]



Sec.  28.246  Delivery for shipment.

    The proprietor or exporter may deliver the shipment directly to the 
consignees designated in Sec. Sec.  28.241 through 28.245, or he may 
deliver it to a carrier for transportation and delivery to such 
consignees, or, when the exportation is to a contiguous foreign country, 
to the foreign consignee.

(72 Stat. 1334, 1335, 1336, as amended, 1362, 1380; 26 U.S.C. 5053, 
5055, 5062, 5214, 5362)

[T.D. 7002, 34 FR 1599, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975 and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.247  Change in consignee.

    Where a change of consignee is desired after the liquors (including 
specially denatured spirits) have been removed from the shipping 
premises, the exporter shall notify the appropriate officer to whom the 
shipment is required by Sec. Sec.  28.241-28.245 to be consigned or in 
whose care it is required to be shipped, and forward a copy of such 
notification to the appropriate TTB officer. Such notice shall identify 
the withdrawal or claim form, as the case may be, covering the shipment.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[T.D. 7002, 34 FR 1599, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975 and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]

                             Bills of Lading



Sec.  28.250  Bills of lading required.

    A copy of the export bill of lading covering transportation from the 
port of export to the foreign destination, or a copy of the through bill 
of lading to the foreign destination, if so shipped, covering the 
acceptance of the shipment by a carrier for such transportation, shall 
be obtained and filed by the claimant or exporter with the appropriate 
TTB officer. Where the shipment consists of distilled spirits for 
deposit in a customs bonded warehouse, or distilled spirits or wines, 
for deposit in a foreign-trade zone, with benefit of drawback, and the 
principal has filed bond, Form 2738 (5110.68), a copy of the 
transportation bill of lading covering the shipment shall be obtained 
and filed by the claimant or exporter with the appropriate TTB officer: 
Provided, That such transportation bill of lading will not be required 
when delivery is made directly to the foreign-trade zone or the customs 
bonded warehouse by the shipper. Bills of lading shall be signed by the 
carrier or by an agent of the carrier and shall contain the following 
minimum information:
    (a) As to spirits specially denatured spirits, and wines:
    (1) The name of the exporter (if different from the shipper),
    (2) The name and address of the consignee (foreign consignee in case 
of export or through bill of lading),
    (3) The number of packages or cases,
    (4) The serial number of the TTB Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, and
    (5) The total quantity in wine gallons or liters,
    (b) As to beer:
    (1) The name of the shipper,
    (2) The name and address of the consignee (foreign consignee in case 
of export or through bill of lading), and
    (3) The number and size of containers.

Where a copy of an export bill of lading or a copy of the through bill 
of lading is required and is not obtainable, a certificate given by an 
agent of such carrier, as prescribed in Sec.  28.253, may be procured 
and transmitted by the claimant or exporter to the appropriate TTB 
officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, 1335, 1336, as amended, 1362, 
1380, (26 U.S.C. 5053, 5055, 5062, 5214, 5362); sec. 3(a), Pub. L. 91-
659, 84 Stat. 1965 (26 U.S.C. 5066))

[T.D. 7002, 34 FR 1599, Feb. 1, 1969, as amended by 36 FR 8583, May 8, 
1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
28.250, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec.  28.251  Railway express receipts.

    Where the exportation is to a contiguous foreign country and the 
shipment is by railway express, a receipt issued by the railway express 
agency may be accepted in lieu of an export bill of lading if the 
receipt furnishes all of the information required in an export bill of 
lading.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[[Page 838]]



Sec.  28.252  Air express or freight bills of lading.

    Where the exportation is made by air express or air freight, a bill 
of lading issued by the conveying airline is considered for the purpose 
of this part to be an export bill of lading if it otherwise conforms to 
the requirements of Sec.  28.250.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[T.D. 7002, 34 FR 1599, Feb. 1, 1969, as amended by 36 FR 8583, May 8, 
1971. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. 
TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.253  Certificate by export carrier.

    A certificate, executed under the penalties of perjury, by an agent 
or representative of the export carrier, showing actual exportation of 
the liquors (including specially denatured spirits) may be furnished by 
an exporter as evidence of exportation. The certificate shall contain a 
description of the shipment, including the serial number of the 
withdrawal form, or the claim and entry form, as the case may be, the 
name of the exporter, the name of the consignee, the date received, the 
place where received by such carrier, and the name of the carrier from 
which received.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)



                Subpart N_Proceedings at Ports of Export



Sec.  28.261  Notice to district director of customs.

    On arrival at the port of exportation, of distilled spirits 
(including specially denatured spirits), wines, or beer, withdrawn or 
shipped for exportation or for use on vessels or aircraft, the exporter 
or his agent shall immediately notify the director of the port. At the 
same time, or prior thereto, the exporter or his agent shall file with 
the director two copies of the application, claim, or notice, TTB Form 
5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), 
as the case may be, covering the shipment: Provided, That where the 
shipment is for direct exportation, such forms shall be filed at least 
six hours prior to lading.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
28.261, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec.  28.262  Delay in lading at port.

    If, on arrival of a shipment withdrawn for export without payment of 
tax or free of tax, the exporting vessel is not prepared to receive the 
shipment, the district director of customs may permit such shipment to 
remain in possession of a carrier for a period not exceeding 30 days. 
Storage elsewhere for a like cause, and not exceeding the same period, 
may be approved by the district director of customs. In the event of 
further delay, the facts shall be reported to the appropriate TTB 
officer, who shall issue appropriate instructions concerning the 
disposition of the shipment.

(72 Stat. 1334, 1362, 1380; 26 U.S.C. 5053, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. 
TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.263  [Reserved]



Sec.  28.264  Lading for exportation.

    On receipt of the notifcation required in Sec.  28.261, the district 
director of customs shall deliver both copies of the application, claim, 
or notice, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), 
or 1689 (5130.12), as the case may be, covering the shipment, together 
with any forms which may be attached thereto, to a customs officer for 
inspection and supervision of lading. Such shipment shall be subject to 
the same requirements for inspection and supervision of lading at the 
port of exportation as may be required by Customs Regulations (19 CFR 
chapter I) in the case of similar shipments of imported merchandise to 
be exported in customs bond. When an inspection of the shipment is made 
before it is laden

[[Page 839]]

on board the exporting carrier and such inspection discloses any 
discrepancy, the customs officer shall make note of the nature and 
extent of the discrepancy on each copy of the application, claim, or 
notice, TTB Form 5110.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 
1689 (5130.12), as the case may be, and where the discrepancy involves 
one or more packages of distilled spirits or wine, he shall prepare 
customs Form 6001 in accordance with the instructions in Sec.  28.291, 
and attach the original and copy of customs Form 6001 to the original 
and copy of the appropriate transaction form. The forms shall be 
disposed of according to the instructions thereon.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended, 
1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C. 5053, 
5055, 5062, 5214, 5362))

[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]

    Editorial Note: For Federal Register citations affecting Sec.  
28.264, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.



Sec.  28.265  Evidence of fraud.

    If the customs inspection discloses evidence of fraud, the customs 
officer shall detain the merchandise and notify the district director of 
customs who shall report the facts forthwith to the appropriate TTB 
officer. The appropriate TTB officer shall make investigation and take 
such action as the facts may warrant. Where the detained merchandise has 
been withdrawn for transfer and deposit in a manufacturing bonded 
warehouse, the merchandise shall be deemed not to have been deposited in 
said warehouse, and the designated officer shall hold in abeyance the 
processing of TTB Form 5100.11 until advised by the district director of 
customs that the detained merchandise may be entered for deposit. Where 
the detained merchandise has been withdrawn or entered for deposit in a 
foreign-trade zone or a customs bonded warehouse, it shall be deemed to 
not have been deposited in the zone or the warehouse and the customs 
officer shall hold in abeyance the processing of the application, 
notice, or claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B 
(5130.6), or 1689 (5130.12), as the case may be, and Zone Form D, until 
advised by the district director of customs that the detained 
merchandise may be entered for deposit.

(48 Stat. 999, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380, 84 
Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5053, 5055, 5062, 5214, 5362, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979; T.D. 
TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.266  Release of detained merchandise.

    When any merchandise has been detained under the provisions of Sec.  
28.265, the district director of customs shall not release such 
merchandise until he is advised so to do by the appropriate TTB officer.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. 
TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.267  Exportation from interior port.

    Where a shipment made under this part is to be exported to a 
contiguous foreign country through a frontier port, and it is desired to 
avoid the delay of customs inspection at such port, the shipment may, 
subject to approval of the district director of customs, be entered for 
exportation at an interior customs port. Subject to such approval, the 
inspection and supervision of lading, and the affixing of customs seals, 
shall be done by a customs officer in accordance with the provisions of 
U.S. Customs regulations (19 CFR chapter I). On completion of the 
lading, the seals shall be affixed and the customs officer shall execute 
the certificate of lading on both copies of the application, notice, or 
claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6) or 
1689 (5130.12), as the case may be, and forward them, with attachments 
(if any), to the district director of customs at the interior port of 
entry. The district director of customs shall forward both copies of the 
form, with attachments (if any), to the customs officer at the frontier 
port. When the customs officer at the frontier port is satisfied that 
the shipment as described on the appropriate form

[[Page 840]]

has been exported, he shall execute his certificate on both copies of 
the form and return them with attachments (if any), to the district 
director of customs at the interior port of entry.

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]



Sec.  28.268  Receipt for liquors for use on vessels or aircraft.

    Where liquors are withdrawn or removed for use on vessels or 
aircraft, the exporter shall procure and forward to the appropriate TTB 
officer, a receipt executed under the penalties of perjury by the master 
or other authorized officer of the vessel, steamship company, or 
airline, as the case may be. The receipt shall give the number of 
containers, the serial numbers of the containers (if any), and the 
quantity received, and shall show that the liquors are in customs 
custody and have been or will be laden on board the vessel or aircraft, 
that they will be lawfully used on board the vessel or aircraft, and 
that no portion of the shipment has been or will be unladen in the 
United States or any of its territories or possessions. A receipt is not 
required, in the case of any shipment for use on vessels, when the 
liquors are laden on vessels of war, or, in cases other than supplies 
for vessels employed in the fisheries, where the amount of the tax on 
the liquors does not exceed $200. In the case of supplies for vessels 
employed in the fisheries, compliance with the provisions of Sec.  28.22 
is also required.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, as amended, 1362, 
1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[T.D. 7002, 34 FR 1600, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.269  Certification by district director of customs.

    (a) Exportation. When the district director of customs is satisfied 
that merchandise described on the application, notice, or claim, TTB 
Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 
(5130.12), as the case may be, has been laden and cleared for export, he 
shall execute his certificate of lading and clearance on both copies of 
the form.
    (b) Distilled spirits and wines as supplies on vessels and aircraft. 
When the district director of customs is satisfied that the distilled 
spirits and wines described on TTB Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, have been duly laden for use on vessels 
and aircraft, and that proper accounting for such spirits or wines has 
been submitted to him as required by this part, he shall execute his 
certificate of lading for use on both copies of the form.
    (c) Disposition of forms. After executing his certificate, the 
district director of customs shall forward the original of TTB Form 
5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), 
as the case may be, with attachments (if any), to the appropriate TTB 
officer designated on the form, and retain the remaining copy, with any 
attached forms, for his files.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19 
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
28.269, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

                        Receipt by Armed Services



Sec.  28.275  Receipt by armed services.

    When liquors which have been withdrawn or removed for export to the 
armed services of the United States are received at the supply base or 
other designated place of delivery, the officer to whom consigned, or 
other authorized supply officer, at the supply base or other place of 
delivery shall enter the quantity of liquors received on both copies of 
the application, notice, or claim, TTB Form 5100.11, 5110.30, 1582-A 
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be. After 
signing the form, he shall forward the original with attachments, if 
any, to the appropriate TTB officer designated

[[Page 841]]

on the form, and retain the other copy for his records.

(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062, 
5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3834, Jan. 27, 2004]

                       Lading for Use on Aircraft



Sec.  28.280  Distilled spirits and wines.

    When an airline desires to withdraw distilled spirits or wines from 
its stock being held at the airport under customs custody, for use on a 
particular aircraft, a requisition in triplicate shall be prepared for 
presentation to the customs officer. The requisition shall show the 
flight number, the registry number of the aircraft on which the 
distilled spirits or wines are to be laden, the country for which the 
aircraft is to be cleared, the date of departure of the aircraft, and 
the brand, kind, and quantity of distilled spirits or wines. Where the 
distilled spirits or wines are contained in kits which have been 
previously prepared while under customs custody, the kit number shall 
also be shown on the requisition. Where the kits are not prepared and 
the distilled spirits or wines are withdrawn for direct lading on 
aircraft, the requisition shall be serially numbered in lieu of the 
insertion of the kit number. When the distilled spirits or wines are 
withdrawn and laden aboard the aircraft, the lading shall be verified by 
the customs officer by an appropriate stamp or notation on the 
requisition. One copy of the requisition shall be retained by the 
customs officer who certifies to the lading for attachment to the 
outgoing manifest. The other two copies shall be delivered to the 
airline which shall retain both copies until the return of the flight. 
In case any of the distilled spirits or wines are removed from the 
aircraft on its return, they shall be returned to customs custody, 
appropriate notation made on both copies of the requisition retained by 
the airline and one copy shall be delivered to the customs officer for 
attachment to the incoming manifest. The remaining copy shall be 
retained by the airline.

(Approved by the Office of Management and Budget under control number 
1512-0384)

(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26 
U.S.C. 5062, 5214, 5362)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984]



Sec.  28.281  Certificate of use for distilled spirits and wines.

    When all of the distilled spirits or wines represented by a single 
application, notice, or claim, TTB Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, have been withdrawn from customs custody 
and laden and used on aircraft, the airline shall prepare a certificate 
of use on which are itemized all the requisitions pertaining to such 
distilled spirits or wines. The certificate shall be executed under the 
penalties of perjury by an officer of the airline and shall show the 
name of the exporter, the entry number, the brand and kind of distilled 
spirits or wines, and the number of bottles to be accounted for; and, as 
to each requisition, the requisition (or kit) number, the date laden, 
the registry number of the aircraft, the country for which the aircraft 
was cleared, and the number of bottles used. When completed, the 
certificate shall be presented to the customs officer at the airport who 
shall then execute his certificate on both copies of the appropriate 
application, notice, or claim, TTB Form 5100.11, 5110.30, or 1582-A 
(5120.24), as the case may be, noting thereon any exception, such as 
shortages or breakage. The customs officer shall then attach the 
certificate of use to the copy of the appropriate form and forward both 
copies of the form to the district director of customs.

(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26 
U.S.C. 5062, 5214, 5362)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

    Editorial Note: For Federal Register citations affecting Sec.  
28.281, see the List of CFR Sections Affected in the Finding Aids 
section of this volume.

[[Page 842]]



Sec.  28.282  Beer.

    When beer has been laden on board the aircraft for use as supplies, 
the customs officer shall execute his certificate on both copies of the 
Form 1582-B (5130.6) or Form 1689 (5130.12), as the case may be, forward 
the original to the appropriate TTB officer designated on the form, and 
retain the copy for his files.

(46 Stat. 690, as amended, 72 Stat. 1334, 1335; 19 U.S.C. 1309, 26 
U.S.C. 5053, 5055)

[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb. 
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by 
T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]

                Receipt in Manufacturing Bonded Warehouse



Sec.  28.285  Receipt in manufacturing bonded warehouse.

    On receipt of the distilled spirits or wines, the related TTB Form 
5100.11 (with any attachments), such inspection as is necessary will be 
made to establish that the shipment corresponds with its description on 
TTB Form 5100.11 (and any attachments) and customs Form 6001 will be 
prepared according to Sec.  28.291. Any discrepancy disclosed by the 
inspection and gauge will be noted on each copy of TTB Form 5100.11. 
When the shipment corresponds with the description of TTB Form 5100.11 
(and any attachments), the certificate of deposit will be executed on 
both copies of TTB Form 5100.11 and the original of TTB Form 5100.11 
(and any attachments) and the original of his customs Form 6001 will be 
forwarded to the appropriate TTB officer. The remaining copies shall be 
kept on file.

(Sec. 201. Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as amended 
(26 U.S.C. 5214, 5362))

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]

                   Receipt in Customs Bonded Warehouse



Sec.  28.286  Receipt in customs bonded warehouse.

    On receipt of the distilled spirits or wine and the related TTB Form 
5100.11 or 5110.30 as the case may be, the customs officer in charge of 
the customs bonded warehouse shall make such inspection as is necessary 
to establish to his satisfaction that the shipment corresponds with the 
description thereof on the appropriate form. The customs officer shall 
note on each copy of the Form 5100.11 or 5110.30, as the case may be, 
any deficiency in quantity or discrepancy between the merchandise 
inspected and that described on the form. Where the inspection discloses 
no loss, or where a loss is disclosed and there is no evidence to 
indicate fraud, the officer shall execute his certificate of deposit on 
both copies of the form, forward the original as required by the 
instructions on the form, and retain the remaining copy for his files.

(Sec. 3(a), Pub. L. 91-659, 84 Stat. 1965 (26 U.S.C. 5066); sec. 2, Pub. 
L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]

                      Receipt in Foreign-Trade Zone



Sec.  28.290  Receipt in foreign trade zone.

    On receipt at the zone, the shipment shall be inspected by the 
customs officer in charge of the zone who shall determine if the 
shipment agrees with the description thereof on the application, notice, 
or claim, TTB Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), 
or 1689 (5130.12), as the case may be. If the customs officer regauges 
spirits or wine in the course of his inspection, he shall prepare 
customs Form 6001 according to Sec.  28.291. The customs officer shall 
note on both copies of the TTB Form 5100.11, 5110.30, 1582-A (5120.24), 
1582-B (5130.6), or 1689 (5130.12), as the case may be any deficiency in 
quantity or discrepancy between the merchandise inspected or gauged and 
that described in the form. Where the inspection or gauge discloses no 
loss, or where a loss is disclosed by such inspection or gauge and there 
is no evidence to indicate fraud, the officer shall execute his 
certificate on both copies of the form covering the deposit, and forward 
to the appropriate TTB officer:
    (a) Original of the deposit from (with any attachments); and

[[Page 843]]

    (b) Original of the officer's customs Form 6001, if any. The 
remaining copy of the deposit form (with any attachments), and the copy 
of any customs Form 6001, shall be retained by the customs officer for 
his files.

(48 Stat. 999, as amended (19 U.S.C. 81c); Sec. 201, Pub. L. 85-859, 72 
Stat. 1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C. 
5062, 5214, 5362))

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]

                              Customs Gauge



Sec.  28.291  Customs Form 6001.

    When spirits or wines are gauged as required in Sec. Sec.  28.264, 
28.285, or 28.290, the customs officer shall prepare in duplicate 
customs Form 6001 to show:
    (a) Date;
    (b) Name of exporter;
    (c) Serial number and designation of the related transaction form;
    (d) Kind of liquor (show whether alcohol, whiskey, brandy, rum, gin, 
vodka, wine, etc.);
    (e) Name and registry number of producer;
    (f) If gauged under Sec.  28.264, the location of the port;
    (g) If gauged under Sec.  28.285, the location and number of the 
manufacturing bonded warehouse;
    (h) If gauged under 28.290, the location and number of the foreign-
trade zone;
    (i) Kind and serial numbers or lot identification numbers of 
containers; and
    (j) For each container:
    (1) Proof of spirits, or percent of alcohol by volume in wine;
    (2) Proof gallons, if spirits;
    (3) Wine gallons, if wine; and
    (4) Variation from the last gauge (proof, percent of alcohol by 
volume or wine gallons).

[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985, as amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]

                          Alternate Procedures



Sec.  28.295  Exception for export of beer.

    The provisions of this subpart do not apply in the case of beer when 
the exporter or claimant obtains proof of exportation other than 
certification by the military or customs certification of lading and use 
under Sec.  28.43. Brewers and exporters shall prepare Forms 1582-B 
(5130.6) or 1689 (5130.12), as applicable, to cover exportation of beer, 
but customs or military certification on them is not required when other 
proof of exportation is used.

[LT.D.ATF-224, 51 FR 7700, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]



                            Subpart O_Losses

                            Distilled Spirits



Sec.  28.301  Loss of distilled spirits in transit.

    The tax on distilled spirits withdrawn without payment of tax under 
this part and which are lost during transportation from the bonded 
premises of the distilled spirits plant from which withdrawn to (a) the 
port of export, (b) the manufacturing bonded warehouse, (c) the vessel 
or aircraft, (d) the foreign-trade zone, or (e) the customs bonded 
warehouse, as the case may be, may be remitted if evidence satisfactory 
to the appropriate TTB officer establishes that such distilled spirits 
have not been unlawfully diverted, or lost by theft with connivance, 
collusion, fraud, or negligence on the part of the exporter, owner, 
consignor, consignee, bailee, or carrier or the employees or agents of 
any of them: Provided, That such remission in the case of loss of 
distilled spirits by theft shall only be allowed to the extent that the 
claimant is not indemnified against or recompensed in respect of the tax 
for such loss.

(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.302  Notice to exporter.

    If, on examination of the TTB Form 5100.11 (and attached gauge 
reports, if any) received from the officer required to certify the same 
under the provisions of subpart N of this part, the appropriate TTB 
officer is of the opinion that the distilled spirits reported lost

[[Page 844]]

had been unlawfully diverted, or had been lost by theft, he will advise 
the exporter by letter:
    (a) Of the identity of the containers;
    (b) Of the amount of the loss;
    (c) Of the circumstances indicating diversion or theft;
    (d) That allowance of the loss will be subject to filing (1) proof 
that such loss is allowable under the provisions of 26 U.S.C. 5008 (a) 
and (f), and (2) claim for remission of the tax on the spirits so lost; 
and
    (e) That action in respect of the loss will be withheld for a period 
of not more than 30 days to afford an opportunity to file such proof and 
claim.

In any case in which distilled spirits are lost during transportation, 
as described in Sec.  28.301, whether by theft or otherwise, the 
appropriate TTB officer may require the exporter to file a claim for 
relief in accordance with Sec.  28.303. When circumstances may warrant, 
extensions of additional time for submission of the proof and claim may 
be granted by the appropriate TTB officer. Where such proof and claim 
are not filed within the 30-day period, or such extensions as the 
appropriate TTB officer may grant, the tax on the distilled spirits 
diverted or lost will be assessed, or liability asserted against the 
bond covering the shipment, as the case may be.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 
FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.303  Filing of claims.

    Claims, for remission of tax on the distilled spirits under Sec.  
28.301, shall be filed on Form 2635 (5620.8), in duplicate, and shall 
set forth the following:
    (a) Name, address, and capacity of the claimant;
    (b) Identification (including serial numbers, if any) and location 
of the container or containers from which the spirits were lost;
    (c) Quantity of spirits lost from each container, and the total 
quantity of spirits covered by the claim;
    (d) Total amount of tax for which the claim is filed;
    (e) The date, penal sum, and form number of the bond under which 
withdrawal and shipment were made;
    (f) Name, number, and address of the distilled spirits plant from 
which withdrawn without payment of tax;
    (g) Date of the loss (or, if not known, date of discovery), the 
cause thereof, and all the facts relative thereto;
    (h) Name of the carrier;
    (i) If lost by theft, facts establishing that the loss did not occur 
as the result of any connivance, collusion, fraud, or negligence on the 
part of the exporter, owner, consignor, consignee, bailee, or carrier, 
or the employees or agents of any of them;
    (j) In the case of a loss by theft, whether the claimant is 
indemnified or recompensed in respect of the tax on the spirits lost, 
and, if so, the amount and nature of such indemnity or recompense and 
the actual value of the spirits, less the tax.

The claim shall be executed by the exporter or his authorized agent 
under the penalties of perjury, and shall be supported (whenever 
possible) by affidavits of persons having personal knowledge of the 
loss. The appropriate TTB officer may require such further evidence as 
he deems necessary.

(68A Stat. 749, 72 Stat. 1323; 26 U.S.C. 6065, 5008)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.304  Action on claim.

    The appropriate TTB officer will allow or disallow claims filed 
under Sec.  28.303 in accordance with existing law and regulations. If 
the appropriate TTB officer finds that there has been a diversion or 
theft of the distilled spirits as the result of any connivance, 
collusion, fraud, or negligence on the part of the exporter, owner, 
consignor, consignee, bailee, or carrier, or the employees or agents of 
any of them, the tax on the distilled spirits diverted or

[[Page 845]]

lost by theft will be assessed, or liability asserted against the bond 
covering the shipment, as the case may be.

(68A Stat. 867, 72 Stat. 1323; 26 U.S.C. 7302, 5008)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]

                       Specially Denatured Spirits



Sec.  28.310  Loss of specially denatured spirits in transit.

    Losses of specially denatured spirits withdrawn free of tax under 
this part during transportation from the bonded premises of the 
distilled spirits plant from which withdrawn to (a) the port of export, 
or (b) the foreign-trade zone, as the case may be, may be allowed if 
evidence satisfactory to the appropriate TTB officer establishes that 
such specially denatured spirits have not been unlawfully diverted, or 
lost by theft as the result of any connivance, collusion, fraud, or 
negligence on the part of the exporter, owner, consignor, consignee, 
bailee, or carrier, or the employees or agents of any of them. The 
giving of notice to the exporter, filing claims for allowance of loss, 
and action on the claims shall be, insofar as applicable, in accordance 
with the procedure prescribed in Sec. Sec.  28.302 through 28.304.

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]

                                  Wine



Sec.  28.315  Loss of wine in transit.

    The tax on wine withdrawn without payment of tax under this part and 
which is lost during transportation from the bonded wine cellar from 
which withdrawn to (a) the port of export, (b) the vessel or aircraft, 
(c) the foreign-trade zone, (d) the manufacturing bonded warehouse, or 
(e) the customs bonded warehouse, as the case may be, may be remitted if 
evidence satisfactory to the appropriate TTB officer establishes that 
such wine has not been unlawfully diverted, or lost by theft with 
connivance, collusion, fraud, or negligence on the part of the exporter, 
owner, consignor, consignee, bailee, or carrier or the employees or 
agents of any of them. However, the remission of tax on wine withdrawn 
without payment of tax under this part and which is lost while in 
transit may be allowed only to the extent that the claimant is not 
indemnified or recompensed for such tax.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382 (26 U.S.C. 5370, 5371))

[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981, as amended by T.D. TTB-8, 69 FR 
3834, Jan. 27, 2004]



Sec.  28.316  Notice to exporter.

    If, on examination of the TTB Form 5100.11 received from the officer 
required to certify the same under the provisions of subpart N, the 
appropriate TTB officer is of the opinion that wine reported lost had 
been unlawfully diverted, or had been lost by theft, he will advise the 
exporter by letter:
    (a) Of the identity of the containers;
    (b) Of the amount of the loss;
    (c) Of the circumstances indicating diversion or theft;
    (d) That allowance of the loss will be subject to filing (1) proof 
that such loss is allowable under the provisions of 26 U.S.C. 5370, and 
(2) claim for remission of the tax on the wine so lost; and
    (e) That action in respect of the loss will be withheld for a period 
of not more than 30 days to afford an opportunity to file such proof and 
claim.

In any case in which wines are lost during transportation, as described 
in Sec.  28.315, whether by theft or otherwise, the appropriate TTB 
officer may require the exporter to file a claim for relief in 
accordance with Sec.  28.317. Where circumstances may warrant, 
extensions of additional time for submission of the proof and claim may 
be granted by the appropriate TTB officer. Where such proof and claim 
are not filed within the 30-day period, or such extensions as the 
appropriate TTB officer may grant, the tax on the wine diverted or

[[Page 846]]

lost will be assessed, or liability asserted against the bond covering 
the shipment, as the case may be.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370))

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 
FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.317  Filing of claims.

    Claims, for remission of tax on the wine under Sec.  28.315, shall 
be filed on Form 2635 (5620.8), in duplicate, and shall set forth the 
following:
    (a) The name, address, and capacity of the claimant;
    (b) The name, registry number, and location of the bonded wine 
cellar from which the wine was withdrawn;
    (c) The date, penal sum, and form number of the bond under which 
withdrawal and shipment was made;
    (d) Identification (including serial numbers, if any) and location 
of the container or containers from which the wine was lost;
    (e) The quantity of wine lost from each container, and the total 
quantity of wine covered by the claim;
    (f) The total amount of tax for which the claim is filed;
    (g) The date of the loss (or, if not known, date of discovery), the 
cause thereof, and all the facts relative thereto;
    (h) Name of the carrier;
    (i) If lost by theft, the facts establishing that the loss did not 
occur as the result of any connivance, collusion, fraud, or negligence 
on the part of the exporter, owner, consignor, consignee, bailee, or 
carrier, or the agents or employees of any of them; and
    (j) Whether the claimant is indemnified or recompensed in respect of 
the tax on the wine lost, and, if so, the amount and nature of such 
indemnity or recompense and the actual value of the wine, less the tax.

The claim shall be signed by the exporter or his authorized agent under 
the penalties of perjury, and shall be supported (whenever possible) by 
affidavits of persons having personal knowledge of the loss. The 
appropriate TTB officer may require such further evidence as he deems 
necessary.

(68A Stat. 749, 72 Stat. 1381, 1382; 26 U.S.C. 6065, 5370, 5371)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]



Sec.  28.318  Action on claim.

    Action on claims filed under Sec.  28.317 shall be, insofar as 
applicable, in accordance with the procedure prescribed in Sec.  28.304.

(72 Stat. 1381; 26 U.S.C. 5370)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. TTB-8, 69 FR 3834, Jan. 27, 2004]

                        Beer And Beer Concentrate



Sec.  28.320  Loss of beer and beer concentrate in transit.

    (a) Losses not requiring inspection. When, on receipt by the 
appropriate TTB officer of Form 1689 (5130.12) from the officer required 
to certify it under the provisions of subpart N of this part, it is 
disclosed that there has been a loss of beer or beer concentrate after 
removal from the brewery without payment of tax while in transit to the 
port of export, the vessel or aircraft, or the foreign-trade zone, and 
the report of the certifying officer shows that the loss was a normal 
one caused by casualty, leakage, or spillage, the appropriate TTB 
officer will allow the loss.
    (b) Losses requiring inspection. When it is disclosed that the loss 
of beer or beer concentrate is large or unusual, the appropriate TTB 
officer will conduct an investigation of the loss. When it is disclosed 
that the loss in transit has occurred by reason of casualty, leakage or 
spillage, credit for the loss will be allowed. When the investigation 
discloses evidence indicating that the loss resulted from theft or from 
fraud, the appropriate TTB officer will afford the brewer opportunity to 
submit a written explanation with respect to the causes of the loss 
before taking further action.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended, 
1335, as amended (26 U.S.C. 5051, 5053, 5056))

[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3835, Jan. 27, 2004]

[[Page 847]]



Sec.  28.321  Tax assessed on loss not accounted for.

    The appropriate TTB officer shall make demand on the brewer for an 
amount equal to the tax which would be due on removal for consumption or 
sale, including penalties and interest, on; (a) The quantity of beer not 
satisfactorily accounted for, or (b) the quantity of beer used to 
produce the quantity of beer concentrate which is not satisfactorily 
accounted for.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended 
(26 U.S.C. 5051, 5053))

[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 
3835, Jan. 27, 2004]



                       Subpart P_Action on Claims



Sec.  28.331  Claims supported by bond, Form 2738 (5110.68).

    On receipt of a claim for drawback of tax on distilled spirits or 
wines on which the tax has been determined, and of the evidence of 
exportation required by Sec.  28.40, or of lading for use on vessels or 
aircraft required by Sec.  28.41, or of deposit in a foreign-trade zone 
or of deposit of distilled spirits in a customs bonded warehouse, as 
required by Sec.  28.42, as the case may be, the appropriate TTB officer 
shall, if a good and sufficient bond has been filed as provided in Sec.  
28.65, and the notice of removal has been properly completed, allow the 
claim in accordance with the rate of drawback established in respect of 
the particular spirits or wines on which claim is based and charge the 
amount allowed against the bond. On receipt of the original of the claim 
properly executed by the appropriate customs official or armed services 
officer, as required by this part, and, in the case of claims on Form 
1582-A (5120.24), the certificate of tax determination, Form 2605 
(5120.20), the appropriate TTB officer shall give appropriate credit to 
the bond.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as 
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)

[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975 and amended by T.D. TTB-8, 69 FR 3835, Jan. 27, 2004]



Sec.  28.332  Claim against bond.

    When any claim supported by a bond has been allowed and changed 
against the bond under the provisions of Sec.  28.331, and the original 
of the claim properly executed by the appropriate customs official or 
armed services officer as required by this part is not received by the 
appropriate TTB officer within three months of the date the claim was 
allowed, or where the distilled spirits or wines are not otherwise 
accounted for in accordance with this part, the appropriate TTB officer 
shall advise the claimant of the facts, and notify him that unless the 
original of the claim, properly executed as required by this part, is 
received by the appropriate TTB officer within 30 days, a written demand 
will be made upon the principal and the surety for repayment to the 
United States of the full amount of the drawback, plus interest at the 
rate prescribed by law from the time the drawback was paid. However, the 
appropriate TTB officer may, if in his opinion the circumstances warrant 
it, grant the claimant any additional extension of time beyond 30 days 
as may be necessary to accomplish the required filing.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1336 as amended, (26 U.S.C. 5062))

[T.D. ATF-70, 45 FR 33981, May 21, 1980, as amended by T.D. TTB-8, 69 FR 
3835, Jan. 27, 2004]



Sec.  28.333  Where no bond is filed.

    Where a claim for drawback of tax on distilled spirits or wines on 
TTB Form 5110.30 or 1582-A (5120.24), is not supported by a bond on Form 
2738 (5110.68), and in all cases where claim for drawback of tax on beer 
is made on Form 1582-B (5130.6), the appropriate TTB officer shall, on 
receipt by him of the original of the claim properly executed by the 
appropriate customs official or armed services officer, as required by 
this part, examine the claim to determine that it has been properly 
completed. He shall then, on receipt of the evidence of exportation 
required by Sec.  28.40, or of lading for use on vessels or aircraft 
required by Sec.  28.41, or of deposit in a foreign-trade zone or a 
customs bonded warehouse as required by Sec.  28.42, as the case may be, 
and, in the case of

[[Page 848]]

claims on Form 1582-A (5120.24), the certificate of tax determination, 
Form 2605 (5120.20), allow the claim in the amount of the tax paid on 
the beer or the tax paid or determined on the distilled spirits or wines 
on which the claim is based and which were exported, laden as supplies 
on vessels or aircraft, or deposited in a foreign-trade zone or a 
customs bonded warehouse, as the case may be.

(46 Stat. 690, 691, as amended, 48 Stat. 999, as amended, 72 Stat. 1335, 
1336, 84 Stat. 1965; 19 U.S.C. 1309, 1311, 81c, 26 U.S.C. 5055, 5062, 
5066)

[T.D. 7112, 36 FR 8584, May 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. 
TTB-8, 69 FR 3835, Jan. 27, 2004]



Sec.  28.334  Credit allowance.

    Where the credit relates to internal revenue taxes on beer that have 
been determined but not yet paid by the claimant, the appropriate TTB 
officer will notify the claimant in writing. Where the credit relates to 
tax determined distilled spirits, procedure for taking the credit shall 
be in accordance with the procedures set forth in part 19 of this 
chapter. Where the credit relates to tax-determined wines, procedure for 
taking the credit shall be in accordance with the procedures set forth 
in part 24 of this chapter. No credit may be given for drawback of the 
tax on beer nor may one class of tax be credited to another.

(72 Stat. 1336; 26 U.S.C. 5062)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3835, Jan. 27, 2004]



Sec.  28.335  Disallowance of claim.

    If a claim for drawback of tax is not allowed in full, the 
appropriate TTB officer shall notify the claimant in writing of the 
reasons for any disallowance.

(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335, 
1336; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055, 5062)

[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979; T.D. TTB-8, 69 
FR 3835, Jan. 27, 2004]



PART 29_STILLS AND MISCELLANEOUS REGULATIONS--Table of Contents




Subparts A-B [Reserved]

                            Subpart C_Stills

Sec.
29.41 Scope of subpart.
29.42 Delegations of the Administrator.
29.43 Forms prescribed.
29.45 Meaning of terms.
29.47 Notice requirement; manufacture of stills.
29.49 Notice requirement; setup of still.
29.51 Failure to give notice; penalty.
29.53 Identification of distilling apparatus.
29.55 Registry of stills and distilling apparatus.
29.57 Failure to register; penalty.
29.59 Records.

Subparts D-Y [Reserved]

    Editorial Note: Nomenclature changes to part 29 appear by T.D. ATF-
462, 66 FR 42737, Aug. 15, 2001.

Subparts A-B [Reserved]



                            Subpart C_Stills

    Authority: 26 U.S.C. 5002, 5101, 5102, 5179, 5291, 5601, 5615, 5687, 
7805.

    Source: T.D. ATF-207, 50 FR 23682, June 5, 1985, unless otherwise 
noted. Redesignated by T.D. ATF-462, 66 FR 42737, Aug. 15, 2001.



Sec.  29.41  Scope of subpart.

    The regulations in this subpart relate to the manufacture, removal, 
and use of stills and condensers, and to the notice, registration, and 
recordkeeping requirements therefor.



Sec.  29.42  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.29, Delegation of the Administrator's 
Authorities in 27 CFR Part 29, Stills and Miscellaneous Regulations. You 
may obtain a copy of this order by accessing the TTB Web site (http://
www.ttb.gov) or by mailing a request to the Alcohol and Tobacco Tax and 
Trade Bureau, National Revenue

[[Page 849]]

Center, 550 Main Street, Room 1516, Cincinnati, OH 45202.

[T.D. TTB-44, 71 FR 16947, Apr. 4, 2006]



Sec.  29.43  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all 
forms, including all notices and records, required by this subpart. All 
of the information called for in each form shall be furnished as 
indicated by the headings on the form and the instructions on or 
pertaining to the form. In addition, information called for in each form 
shall be furnished as required by this subpart. The form will be filed 
in accordance with the instructions for the form.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 
Main Street, Room 1516, Cincinnati, OH 45202.

(Pub. L. 89-554, 80 Stat. 383, as amended (5 U.S.C. 552))

[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985; 
T.D. ATF-439, 66 FR 8769, Feb. 2, 2001; T.D. TTB-44, 71 FR 16947, Apr. 
4, 2006]



Sec.  29.45  Meaning of terms.

    When used in this subpart and in the forms prescribed under this 
subpart, where not otherwise distinctly expressed or manifestly 
incompatible with the intent thereof, terms shall have the meaning 
ascribed in this section. Words in the plural form shall include the 
singular, and vice versa, and words in the masculine shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.29, Delegation of the Administrator's Authorities in 27 CFR Part 
29, Stills and Miscellaneous Regulations.
    Distilling spirits or spirits. That substance known as ethyl 
alcohol, ethanol, or spirits of wine in any form (including all 
dilutions and mixtures thereof, from whatever source or by whatever 
process produced).
    Distilling. The conduct by any person of operations that constitute, 
as defined by 26 U.S.C. 5002, operations as a distiller. Such operations 
include: (a) The original manufacture of distilled spirits from mash, 
wort, or wash, or any materials suitable for the production of spirits; 
(b) the redistillation of spirits in the course of original manufacture; 
(c) the redistillation of spirits, or products containing spirits; (d) 
the distillation, redistillation, or recovery of spirits, denatured 
spirits, or articles containing spirits or denatured spirits; and (e) 
the redistillation or recovery of tax-free spirits.
    Distilling apparatus. A still or condenser, as defined in this 
section, and any other apparatus to be used for the purpose of 
distilling.
    Executed under the penalties of perjury. Signed with the prescribed 
declaration under the penalties of perjury as provided on or with 
respect to any document prescribed under this subpart or, where no form 
of declaration is prescribed, with the declaration: ``I declare under 
the penalties of perjury that this ------------ (insert type of 
document), including the documents submitted in support thereof, has 
been examined by me and, to best of my knowledge and belief, is true, 
correct and complete.''
    Manufacturer of stills. Any person who manufactures any still or 
condenser, as defined in this section, or any other apparatus to be used 
for the purpose of distilling. The term includes a person furnishing 
separate parts of a complete still or condenser, of any kind, to a 
person who assembles same into a still or condenser for distilling and a 
person who procures materials or apparatus and converts same into a 
still or condenser for distilling.
    Person. An individual, a trust, estate, partnership, association, 
company, or corporation.

[[Page 850]]

    Still. Any apparatus capable of being used for separating alcoholic 
or spirituous vapors, or spiritous solutions, or spirits, from 
spirituous solutions or mixtures, but shall not include stills used for 
laboratory purposes or stills used for distilling water or other 
nonalcoholic materials where the cubic distilling capacity is one gallon 
or less.
    This chapter. Title 27, Code of Federal Regulations, Chapter I (27 
CFR Chapter I).
    United States. The several states and the District of Columbia.
    U.S.C. The United States Code.

[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985, as 
amended by T.D. ATF-439, 66 FR 8770, Feb. 2, 2001; T.D. TTB-44, 71 FR 
16947, Apr. 4, 2006]



Sec.  29.47  Notice requirement; manufacture of stills.

    (a) General. When required by letter issued by the appropriate TTB 
officer and until notified to the contrary by the appropriate TTB 
officer, every person who manufactures any still, boiler (double or pot 
still), condenser, or other apparatus to be used for the purpose of 
distilling shall give written notice before the still or distilling 
apparatus is removed from the place of manufacture.
    (b) Preparation. The notice will be prepared in letter form, 
executed under the penalties of perjury, and show the following 
information:
    (1) The name and address of the manufacturer;
    (2) The name and complete address of the person by whom the 
apparatus is to be used, and of any other person for, by, or through 
whom the apparatus is ordered or disposed of;
    (3) The distilling purpose for which the apparatus is to be used 
(distillation of spirits, redistillation of spirits or recovery of 
spirits, including denatured spirits and articles containing spirits or 
denatured spirits);
    (4) The manufacturer's serial number of the apparatus;
    (5) The type and kind of apparatus;
    (6) The distilling capacity of the apparatus; and
    (7) The date the apparatus is to be removed from the place of 
manufacture.
    (c) Filing. The notice will be filed in accordance with the 
instructions in the letter of the appropriate TTB officer. A copy of the 
notice will be retained at the place of manufacture as provided by Sec.  
29.59.

(Approved by the Office of Management and Budget under control number 
1512-0341)

(Sec. 843, Pub. L. 98-369, 98 Stat. 818 (26 U.S.C. 5101))

[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985; 
T.D. ATF-439, 66 FR 8769, Feb. 2, 2001]



Sec.  29.49  Notice requirement; setup of still.

    (a) General. When required by letter issued by the appropriate TTB 
officer, no still, boiler (double or pot still), condenser, or other 
distilling apparatus may be set up without the manufacturer of the still 
or distilling apparatus first giving written notice of that purpose.
    (b) Preparation. The notice will be prepared by the manufacturer in 
letter form, executed under the penalties of perjury, and will contain 
the information specified in the letter of the appropriate TTB officer.
    (c) Filing. The notice will be filed in accordance with the 
instructions in the letter of the appropriate TTB officer. A copy of the 
notice will be retained at the manufacturer's place of business as 
provided by Sec.  29.59.

(Approved by the Office of Management and Budget under control number 
1512-0341)

(Sec. 843, Pub. L. 98-369, 98 Stat. 818 (26 U.S.C. 5101))

[T.D. ATF-207, 50 FR 23682, June 5, 1985, as amended by T.D. ATF-439, 66 
FR 8769, Feb. 2, 2001]



Sec.  29.51  Failure to give notice; penalty.

    Failure to give notice of manufacture of still or notice of setup of 
still when required to do so is punishable by a fine of not more than 
$1,000 or imprisonment for not more than one year, or both, and any 
still, boiler (double or pot still), condenser, or other distilling 
apparatus to be used for the purpose of distilling which is removed or 
set up without the required notice having been given is forfeitable to 
the Government.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1405, as amended, 1412, as amended 
(26 U.S.C. 5615, 5687))

[[Page 851]]



Sec.  29.53  Identification of distilling apparatus.

    (a) General. Each still or condenser manufactured will be identified 
by the manufacturer as follows:
    (1) Name of manufacturer.
    (2) Address of manufacturer.
    (3) Manufacturer's serial number for the apparatus.
    (b) Marking requirements. The apparatus will be identified in a 
legible and durable manner. The required identification marks will be 
placed on the apparatus in a location where they will not be obscured or 
concealed.



Sec.  29.55  Registry of stills and distilling apparatus.

    (a) General. Every person having possession, custody, or control of 
any still or distilling apparatus set up shall, immediately on its being 
set up, register the still or distilling apparatus, except that a still 
or distilling apparatus not used or intended for use in the 
distillation, redistillation, or recovery of distilled spirits is not 
required to be registered. Registration may be accomplished by 
describing the still or distilling apparatus on the registration or 
permit application prescribed in this chapter for qualification under 26 
U.S.C. chapter 51 or, if qualification is not required under 26 U.S.C. 
chapter 51, on a letter application, and filing the application with the 
appropriate TTB officer. Approval of the application by the appropriate 
TTB officer will constitute registration of the still or distilling 
apparatus.
    (b) When still is set up. A still will be regarded as set up and 
subject to registry when it is in position over a furnace, or connected 
with a boiler so that heat may be applied, irrespective of whether a 
condenser is in position. This rule is intended merely as an 
illustration and should not be construed as covering all types of stills 
or condensers requiring registration.
    (c) Change in location or ownership. Where any distilling apparatus 
registered under this section is to be removed to another location, sold 
or otherwise disposed of, the registrant shall, prior to the removal or 
disposition, file a letter notice with the appropriate TTB officer. The 
letter notice will show the intended method of disposition (sale, 
destruction, or othewise), the name and complete address of the person 
to whom disposition will be made, and the purpose for which the 
apparatus will be used. After removal, sale, or other disposal, the 
person having possession, custody, or control of any distilling 
apparatus intended for use in distilling shall immediately register the 
still or distilling apparatus on its being set up or, if already set up, 
immediately on obtaining possession, custody, or control. The registrant 
shall also comply with the procedures prescribed in this chapter for 
amendment of the registration or permit application.

(Approved by the Office of Management and Budget under control number 
1512-0341)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended (26 U.S.C. 5179))

[T.D. ATF-207, 50 FR 23682, June 5, 1985; 50 FR 28572, July 15, 1985; 50 
FR 30821, July 30, 1985, as amended by T.D. ATF-439, 66 FR 8770, Feb. 2, 
2001]



Sec.  29.57  Failure to register; penalty.

    Any person having possession, custody, or control of any still or 
distilling apparatus set up who fails to register the still or 
distilling apparatus is subject to a fine of not more than $10,000 or 
imprisonment of not more than 5 years, or both, and the still or 
distilling apparatus is forfeitable to the Government.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1398, as amended, 1405, as amended 
(26 U.S.C. 5601, 5615))



Sec.  29.59  Records.

    A copy of each notice of manufacture, or set up, of still required 
under the provisions of Sec.  29.47, or 29.49, shall be maintained, in 
chronological order, by the manufacturer at the premises where the still 
or distilling apparatus is manufactured. In addition, each manufacturer 
or vendor of stills shall maintain at their premises a record showing 
all stills and distilling apparatus (including those to be used for 
purposes other than distilling) manufactured, received, removed, or 
otherwise disposed of. The record will also show the name and address of 
the purchaser and the purpose for which each

[[Page 852]]

apparatus is to be used. Any commercial document on which all the 
required information has been recorded may be used for the record. The 
records will be kept available for a period of three years for 
inspection by appropriate TTB officers.

(Approved by the Office of Management and Budget under control number 
1512-0341)

[T.D. ATF-207, 50 FR 23682, June 5, 1985, as amended by T.D. ATF-439, 66 
FR 8770, Feb. 2, 2001]

Subparts D-Y [Reserved]



PART 30_GAUGING MANUAL--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
30.1 Gauging of distilled spirits.

                          Subpart B_Definitions

30.11 Meaning of terms.

                      Subpart C_Gauging Instruments

30.21 Requirements.
30.22 Hydrometers and thermometers.
30.23 Use of precision hydrometers and thermometers.
30.24 Specific gravity hydrometers.
30.25 Use of precision specific gravity hydrometers.

                      Subpart D_Gauging Procedures

30.31 Determination of proof.
30.32 Determination of proof obscuration.

                        Determination of Quantity

30.36 General requirements.

                   Determination of Quantity by Weight

30.41 Bulk spirits.
30.42 Denatured spirits.
30.43 Packaged spirits.
30.44 Weighing containers.
30.45 Withdrawal gauge for packages.

                   Determination of Quantity by Volume

30.51 Procedure for measurement of bulk spirits.
30.52 Procedure for measurement of cased spirits.

                       Subpart E_Prescribed Tables

30.61 Table 1, showing the true percent of proof spirit for any 
          indication of the hydrometer at temperatures between zero and 
          100 degrees Fahrenheit.
30.62 Table 2, showing wine gallons and proof gallons by weight.
30.63 Table 3, for determining the number of proof gallons from the 
          weight and proof of spirituous liquor.
30.64 Table 4, showing the fractional part of a gallon per pound at each 
          percent and each tenth percent of proof of spirituous liquor.
30.65 Table 5, showing the weight per wine gallon (at 60 degrees 
          Fahrenheit) and proof gallon at each percent of proof of 
          spirituous liquor.
30.66 Table 6, showing respective volumes of alcohol and water and the 
          specific gravity in both air and vacuum of spirituous liquor.
30.67 Table 7, for correction of volume of spirituous liquors to 60 
          degrees Fahrenheit.

                  Subpart F_Optional Gauging Procedures

30.71 Optional method for determination of proof for spirits containing 
          solids of 400 milligrams or less per 100 milliliters.
30.72 Recording obscuration by proprietors using the optional method for 
          determination of proof.

    Authority: 26 U.S.C. 7805.

    Source: T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, unless otherwise 
noted.

    Editorial Note: Nomenclature changes to part 30 appear by T.D. ATF-
438, 66 FR 5481, Jan. 19, 2001.



                     Subpart A_Scope of Regulations



Sec.  30.1  Gauging of distilled spirits.

    (a) General. This part relates to the gauging of distilled spirits. 
The term ``gauging'' means the determination of the proof and the 
quantity of distilled spirits. The procedures prescribed in or 
authorized under the provisions of this part, except as may be otherwise 
authorized in this chapter, shall be followed in making any 
determination of quantity or proof of distilled spirits required by or 
under the authority of regulations in this chapter. The tables referred 
to in subpart E of this part appear in the ``Gauging Manual Embracing 
Instructions and Tables for Determining Quantity of Distilled Spirits by 
Proof and Weight'' as incorporated by reference in this part (see 
paragraph (c) of this section). These tables, together with their 
instructions, shall be used, wherever applicable, in making the 
necessary computations from gauge data.

[[Page 853]]

    (b) Tables referred to in subpart E of this part. Table 1 provides a 
method of correcting hydrometer indications at temperatures between 0 
and 100 degrees Fahrenheit to true proof. If distilled spirits contain 
dissolved solids, temperature correction of the hydrometer reading by 
the use of this table would result in apparent proof rather than true 
proof. Tables 2 and 3 show the gallonage of spirituous liquor according 
to weight and proof. Table 4 shows the gallons per pound at each one-
tenth proof from 1 to 200 proof. Table 5 shows the weight per wine 
gallon and proof gallon at each proof. Table 6 shows the volumes of 
alcohol and water and the specific gravity (air and vacuum) of 
spirituous liquor at each proof. Table 7 provides a means of 
ascertaining the volume (at 60 degree Fahrenheit) of spirits at various 
temperatures ranging from 18 degrees through 100 degrees Fahrenheit.
    (c) Incorporation by reference. The ``Gauging Manual Embracing 
Instructions and Tables for Determining Quantity of Distilled Spirits by 
Proof and Weight'' (Publication 5110.6; November 1978) is incorporated 
by reference in this part. This incorporation by reference was approved 
by the Director of the Federal Register on March 23, 1981. This 
publication may be inspected at the National Archives and Records 
Administration (NARA), and is available from the Superintendent of 
Documents, U.S. Government Printing Office, Washington, DC 20402. For 
information on the availability of this material at NARA, call 202-741-
6030, or go to: http://www.archives.gov/federal--register/code--of--
federal--regulations/ibr--locations.html.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204); 
80 Stat. 383, as amended (5 U.S.C. 552(a)))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended at 69 FR 18803, Apr. 
9, 2004]



                          Subpart B_Definitions



Sec.  30.11  Meaning of terms.

    When used in this part, where not otherwise distinctly expressed or 
manifestly incompatible with the intent thereof, terms shall have the 
meanings ascribed in this section. Words in the plural form shall 
include the singular, and vice versa, and words importing the masculine 
gender shall include the feminine. The terms ``includes'' and 
``including'' do not exclude things not enumerated which are in the same 
general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.30, Delegation of the Administrator's Authorities in 27 CFR Part 
30, Gauging Manual.
    Bulk conveyance. Any tank car, tank truck, tank ship, tank barge, or 
other similar container approved by the appropriate TTB officer, 
authorized for the conveyance of spirits (including denatured spirits) 
in bulk.
    CFR. The Code of Federal Regulations.
    Container. Any receptacle, vessel, or form of package, bottle, tank, 
or pipeline used, or capable of use, for holding, storing, transferring 
or conveying distilled spirits.
    Denatured spirits or denatured alcohol. Spirits to which denaturants 
have been added pursuant to formulas prescribed in 27 CFR Part 21.
    Gallon or wine gallon. The liquid measure equivalent to the volume 
of 231 cubic inches.
    I.R.C. The Internal Revenue Code of 1954, as amended.
    Package. Any cask, barrel, drum, or similar container approved under 
the provisions of this chapter.
    Proof. The ethyl alcohol content of a liquid at 60 degrees 
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
    Proof gallon. A United States gallon of proof spirits, or the 
alcoholic equivalent thereof.
    Proof spirits. That liquid which contains one-half its volume of 
ethyl alcohol of a specific gravity of seven thousand nine hundred and 
thirty-nine ten-

[[Page 854]]

thousandths (0.7939) in vacuum at 60 degrees Fahrenheit referred to 
water at 60 degrees Fahrenheit as unity.
    Spirits, spirituous liquor, or distilled spirits. That substance 
known as ethyl alcohol, ethanol, or spirits of wine in any form, 
including all dilutions and mixtures thereof, from whatever source or by 
whatever process produced, but not denatured spirits unless specifically 
stated. For the sole purpose of gauging wine and alcoholic flavoring 
materials on the bonded premises of a distilled spirits plant, such 
alcoholic ingredients shall have the same meaning described herein to 
spirits, spirituous liquor, or distilled spirits.
    This chapter. Title 27, Code of Federal Regulations, Chapter I (27 
CFR Chapter I).
    U.S.C. The United States Code.

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-438, 66 
FR 5481, Jan. 19, 2001; T.D. TTB-44, 71 FR 16947, Apr. 4, 2006]



                      Subpart C_Gauging Instruments



Sec.  30.21  Requirements.

    (a) General. The proof of distilled spirits shall be determined by 
the use of gauging instruments as prescribed in this part.
    (b) Proprietors. Proprietors shall use only accurate hydrometers and 
thermometers that show subdivisions or graduations of proof and 
temperature which are at least as delimitated as the instruments 
described in Sec.  30.22.
    (c) Appropriate TTB officers. Appropriate TTB officers shall use 
only hydrometers and thermometers furnished by the Government. However, 
where this part requires the use of a specific gravity hydrometer, TTB 
officers shall use precision grade specific gravity hydrometers 
conforming to the provisions of Sec.  30.24, furnished by the 
proprietor. However, the appropriate TTB officer may authorize the use 
of other instruments approved by the appropriate TTB officer as being 
equally satisfactory for determination of specific gravity and for 
gauging. From time to time appropriate TTB officers shall verify the 
accuracy of hydrometers and thermometers used by proprietors.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-438, 66 
FR 5481, Jan. 19, 2001]



Sec.  30.22  Hydrometers and thermometers.

    The hydrometers used are graduated to read the proof of aqueous 
alcoholic solutions at 60 degrees Fahrenheit; thus, they read, 0 for 
water, 100 for proof spirits, and 200 for absolute alcohol. Because of 
temperature-density relationships and the selection of 60 degrees 
Fahrenheit for reporting proof, the hydrometer readings will be less 
than the true percent of proof at temperatures below 60 degrees 
Fahrenheit and greater than the true percent of proof at temperatures 
above 60 degrees Fahrenheit. Hence, corrections are necessary for 
hydrometer readings at temperatures other than 60 degrees Fahrenheit. 
Precision hydrometers shall be used for gauging spirits. Hydrometers and 
thermometers shall be used and the true percent of proof shall be 
determined in accordance with Sec.  30.31. Hydrometers are designated by 
letter according to range of proof and are provided in ranges and 
subdivisions of stems as follows:

------------------------------------------------------------------------
             Precision                        Range          Subdivision
------------------------------------------------------------------------
F..................................  0 to 20...............    0.2[deg]
G..................................  20 to 40..............    0.2[deg]
H..................................  40 to 60..............    0.2[deg]
I..................................  60 to 80..............    0.2[deg]
K..................................  75 to 95..............    0.2[deg]
L..................................  90 to 110.............    0.2[deg]
M..................................  105 to 125............    0.2[deg]
N..................................  125 to 145............    0.2[deg]
P..................................  145 to 165............    0.2[deg]
Q..................................  165 to 185............    0.2[deg]
R..................................  185 to 206............    0.2[deg]
------------------------------------------------------------------------

    Thermometers are designated by type according to range of degrees 
Fahrenheit and are provided in ranges and subdivisions of degrees as 
follows:

------------------------------------------------------------------------
                Type                          Range          Subdivision
------------------------------------------------------------------------
Pencil type........................  10[deg] to 100[deg]...      1[deg]
V-back.............................  10[deg] to 100[deg]...      1[deg]
Glass shell (earlier model)........  40[deg] to 100[deg]...  \1/2\[deg]
Glass shell (later model)..........  40[deg] to 100[deg]...  \1/4\[deg]
------------------------------------------------------------------------


[[Page 855]]


(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 
FR 37003, July 16, 1996]



Sec.  30.23  Use of precision hydrometers and thermometers.

    Care should be exercised to obtain accurate hydrometer and 
thermometer readings. In order to accomplish this result, the following 
precautions should be observed. Bulk spirits should be thoroughly 
agitated so that the test samples will be representative of the entire 
quantity. The hydrometers should be kept clean and free of any oily 
substance. Immediately before readings are taken, the glass cylinder 
containing the thermometer should be rinsed several times with the 
spirits which are to be gauged so as to bring both the cylinder and the 
thermometer to the temperature of the spirits (if time permits, it is 
desirable to bring both the spirits and the instruments to room 
temperature). If the outer surface of the cylinder becomes wet, it 
should be wiped dry to avoid the cooling effect of rapid evaporation. 
During the readings the cylinder should be protected from drafts or 
other conditions which might affect its temperature or that of the 
spirits which it contains. The hands should not be placed on the 
cylinder in such a manner as to warm the liquid contained therein. The 
hydrometer should be inserted in the liquid and the hydrometer bulb 
raised and lowered from top to bottom 5 or 6 times to obtain an even 
temperature distribution over its surface, and, while the hydrometer 
bulb remains in the liquid, the stem should be dried and the hydrometer 
allowed to come to rest without wetting more than a few tenths degrees 
of the exposed stem. Special care should be taken to ascertain the exact 
point at which the level of the surface liquid intersects the scale of 
proof in the stem of the hydrometer. The hydrometer and thermometer 
should be immediately read, as nearly simultaneously as possible. In 
reading the hydrometer, a sighting should be made slightly below the 
plane of the surface of the liquid and the line of sight should then be 
raised slowly, being kept perpendicular to the hydrometer stem, until 
the appearance of the surface changes from an ellipse to a straight 
line. The point where this line intersects the hydrometer scale is the 
correct reading of the hydrometer. When the correct readings of the 
hydrometer and the thermometer have been determined, the true percent of 
proof shall be ascertained from Table 1. Another sample of the spirits 
should then be taken and be tested in the same manner so as to verify 
the proof originally ascertained. Hydrometer readings should be made to 
the nearest 0.05 degree and thermometer readings should be made to the 
nearest 0.1 degree, and instrument correction factors, if any, should be 
applied. It is necessary to interpolate in Table 1 for fractional 
hydrometer and thermometer readings.

    Example. A hydrometer reads 192.85[deg] at 72.10 [deg]F. The 
correction factors for the hydrometer and the thermometer, respectively 
are minus0.03[deg] and plus0.05[deg]. The corrected reading, then, is 
192.82[deg] at 72.15 [deg]F.

From Table 1:
193.0[deg] at 72.0 [deg]F.                                   =  190.2[de
                                                                      g]
192.0[deg] at 72.0 [deg]F.                                   =  189.1[de
                                                                      g]
                                                           -------------
    Difference                                               =  1.1[deg]
192.0[deg] at 72.0 [deg]F.                                   =  189.1[de
                                                                      g]
192.0[deg] at 73.0 [deg]F.                                   =  188.9[de
                                                                      g]
                                                           -------------
    Difference                                               =  0.2[deg]
 

    The hydrometer difference (1.1[deg]) multiplied by the fractional 
degree of the hydrometer reading (0.82[deg])=0.902.
    The temperature difference (0.2[deg]) multiplied by the fractional 
degree of the temperature reading (0.15[deg])=0.03[deg].
Proof at 60[deg] F.=189.1+0.902-0.03=189.972[deg]=190.0[deg].
    As shown, the final proof is rounded to the nearest tenth of a 
degree of proof. In such cases, if the hundredths decimal is less than 
five, it will be dropped; if it is five or over, a unit will be added.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 
FR 37004, July 16, 1996]



Sec.  30.24  Specific gravity hydrometers.

    (a) The specific gravity hydrometers furnished by proprietors to 
appropriate TTB officers shall conform to the standard specifications of 
the American Society for Testing and Materials (ASTM) for such 
instruments. Such specific gravity hydrometers shall be

[[Page 856]]

of a precision grade, standardization temperature 60 [deg]/60 [deg]F., 
and provided in the following ranges and subdivisions:

------------------------------------------------------------------------
                           Range                             Subdivision
------------------------------------------------------------------------
1.0000 to 1.0500...........................................      0.0005
1.0500 to 1.1000...........................................      0.0005
1.1000 to 1.1500...........................................      0.0005
1.1500 to 1.2000...........................................      0.0005
1.2000 to 1.2500...........................................      0.0005
------------------------------------------------------------------------


No instrument shall be in error by more than 0.0005 specific gravity.
    (b) A certificate of accuracy prepared by the instrument 
manufacturer for the instrument shall be furnished to the appropriate 
TTB officer.
    (c) Incorporation by reference. The ``Standard Specification for 
ASTM Hydrometers,'' (E 100-72 (1978)), published in the ``1980 Annual 
Book of ASTM Standards'' (STP 25 1062 (1980)), is incorporated by 
reference in this part. This incorporation by reference was approved by 
the Director of the Federal Register on March 23, 1981. This publication 
may be inspected at the National Archives and Records Administration 
(NARA), and is available from the American Society for Testing and 
Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103. For 
information on the availability of this material at NARA, call 202-741-
6030, or go to: http://www.archives.gov/federal--register/code--of--
federal--regulations/ibr--locations.html.

(Sec. 201. Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204); 
80 Stat. 383, as amended (5 U.S.C. 552(a)))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 
FR 37004, July 16, 1996; 69 FR 18803, Apr. 9, 2004]



Sec.  30.25  Use of precision specific gravity hydrometers.

    The provisions of Sec.  30.23 respecting the care, handling, and use 
of precision instruments shall be followed with respect to the care, 
handling, and use of precision grade specific gravity hydrometers. 
Specific gravity hydrometers shall be read to the nearest subdivision. 
Because of temperature density relationships and the selection of the 
standardization temperature of 60 [deg]/60 [deg]F., the specific gravity 
readings will be greater at temperatures below 60 degrees Fahrenheit and 
less at temperatures above 60 degress Fahrenheit. Hence, correction of 
the specific gravity readings will be made for temperature other than 60 
degrees Fahrenheit. Such correction may be ascertained by dividing the 
specific gravity hydrometer reading by the applicable correction factor 
in Table 7.

    Example: The specific gravity hydrometer reading is 1.1525, the 
thermometer reading is 68 degrees Fahrenheit, and the true proof of the 
spirits is 115 degrees. The correct specific gravity reading will be 
ascertained as follows:
    (a) From Table 7, the correction factor for 115[deg] proof at 68 
[deg]F. is 0.996.
    (b) 1.1525 divided by 0.996=1.1571, the corrected specific gravity.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



                      Subpart D_Gauging Procedures



Sec.  30.31  Determination of proof.

    (a) General. The proof of spirits shall be determined to the nearest 
tenth degree which shall be the proof used in determining the proof 
gallons.
    (b) Solids content not more than 600 milligrams. Except as otherwise 
authorized by the appropriate TTB officer, the proof of spirits 
containing not more than 600 milligrams of solids per 100 milliliters of 
spirits shall be determined by the use of a hydrometer and thermometer 
in accordance with the provisions of Sec.  30.23 except that if such 
spirits contain solids in excess of 400 milligrams but not in excess of 
600 milligrams per 100 milliliters at gauge proof, there shall be added 
to the proof so determined the obscuration determined as prescribed in 
Sec.  30.32.
    (c) Solids content over 600 milligrams. If such spirits contain 
solids in excess of 600 milligrams per 100 milliliters at gauge proof, 
the proof shall be determined on the basis of true proof determined as 
follows:
    (1) By the use of a hydrometer and a thermometer after the spirits 
have been distilled in a small laboratory still and restored to the 
original volume and temperature by the addition of pure water to the 
distillate; or
    (2) By a recognized laboratory method which is equal or superior in 
accuracy to the distillation method.

[[Page 857]]

    (d) Initial proof. Except when the proof of spirits is used in 
making the guage prescribed in 27 CFR 19.383 or in making a gauge for 
determination of tax, the initial determination of proof made on the 
bonded premises of a distilled spirits plant for such spirits may be 
used whenever a subsequent gauge is required to be made at that same 
plant provided that no material has been added to change the proof of 
the spirits.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5204, 5211))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985]



Sec.  30.32  Determination of proof obscuration.

    (a) General. Proof obscuration of spirits containing more than 400 
but not more than 600 milligrams of solids per 100 milliliters shall be 
determined by one of the following methods. The evaporation method may 
be used only for spirits in the range of 80-100 degrees at gauge proof.
    (b) Evaporation method. Evaporate the water and alcohol from a 
carefully measured 25 milliliter sample of spirits, dry the residue at 
100 degrees centigrade for 30 minutes and then weigh the residue 
precisely. Multiply the weight of the residue by 4 to determine the 
weight of solids in 100 milliliters. The resulting weight per 100 
milliliters multiplied by 4 will give the obscuration. Experience has 
shown that 0.1 gram (100 milligrams) of solids per 100 milliliters of 
spirits in the range of 80-100 degrees proof will obscure the true proof 
by 0.4 of one degree of proof. For example, if the weight of solids 
remaining after evaporation of 25 milliliters 0.125 gram, the amount of 
solids present in 100 milliliters of the spirits is 0.50 gram (4 times 
0.125). The obscuration is 4 times 0.50, which is two degrees of proof. 
This value added to the temperature corrected hydrometer reading will 
give the true proof.
    (c) Distillation method. Determine the apparent proof and 
temperature of the sample of spirits and then distill a carefully 
measured sample in a small laboratory still, and collect a quantity of 
the distillate, 1 or 2 milliliters less than the original sample. The 
distillate is adjusted to the original temperature and restored to the 
original volume by addition of distilled water. The proof of the 
restored distillate is then determined by use of a precision hydrometer 
and thermometer in accordance with the provisions of Sec.  13.23 to the 
nearest 0.1 degree of proof. The difference between the proof so 
determined and the apparent proof of the undistilled sample is the 
obscuration; or
    (d) Pycnometer method. Determine the specific gravity of the 
undistilled sample, distill and restore the samples as provided in 
paragraph (c) of this section and determine the specific gravity of the 
restored distillate by means of a pycnometer. The specific gravities so 
obtained will be converted to degrees of proof by interpolation of Table 
6 to the nearest 0.1 degree of proof. The difference in proof so 
obtained is the obscuration.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 
FR 37004, July 16, 1996]

                        Determination of Quantity



Sec.  30.36  General requirements.

    The quantity determination of distilled spirits that are withdrawn 
from bond in bulk upon tax determination or payment shall be by weight. 
The quantity of other distilled spirits or denatured spirits may be 
determined by weight or by volume. When the quantity of distilled 
spirits or denatured distilled spirits is determined by volume, such 
determination may be by meter as provided in 27 CFR Part 19, or when 
approved by the appropriate TTB officer, another method or device.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985]

                   Determination of Quantity by Weight



Sec.  30.41  Bulk spirits.

    When spirits (including denatured spirits) are to be gauged by 
weight in bulk quantities, the weight shall be determined by means of 
weighing tanks, mounted on accurate scales. Before each use, the scales 
shall be balanced

[[Page 858]]

at zero load; thereupon the spirits shall be run into the weighing tank 
and proofed as prescribed in Sec.  30.31. However, if the spirits are to 
be reduced in proof, the spirits shall be so reduced before final 
determination of the proof. The scales shall then be brought to a 
balanced condition and the weight of the spirits determined by reading 
the beam to the nearest graduation mark. From the weight and the proof 
thus ascertained, the quantity of the spirits in proof gallons shall be 
determined by reference to Table 4. However, in the case of spirits 
which contain solids in excess of 600 milligrams per 100 milliliters, 
the quantity in proof gallons shall be determined by first ascertaining 
the wine gallons per pound of the spirits and multiplying the wine 
gallons per pound by the weight, in pounds, of the spirits being gauged 
and by the true proof (determined as prescribed in Sec.  30.31) and 
dividing the result by 100. The wine gallons per pound of spirits 
containing solids in excess of 600 milligrams per 100 milliliters shall 
be ascertained by:
    (a) Use of a precision hydrometer and thermometer, in accordance 
with the provisions of Sec.  30.23, to determine the apparent proof of 
the spirits (if specific gravity at the temperature of the spirits is 
not more than 1.0) and reference to Table 4 for the wine gallons per 
pound, or
    (b) Use of a specific gravity hydrometer, in accordance with the 
provisions of Sec.  30.25, to determine the specific gravity of the 
spirits (if the specific gravity at the temperature of the spirits is 
more than 1.0) and dividing that specific gravity (corrected to 60 
degrees Fahrenheit) into the factor 0.120074 (the wine gallons per pound 
for water at 60 degrees Fahrenheit). When withdrawing a portion of the 
contents of a weighing tank, the difference between the quantity 
(ascertained by proofing and weighing) in the tank immediately before 
the removal of the spirits and the quantity (ascertained by proofing and 
weighing) in the tank immediately after the removal of the spirits shall 
be the quantity considered to be withdrawn.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  30.42  Denatured spirits.

    The quantity, in gallons, of any lot or package of specially 
denatured spirits may be determined by weighing it and then dividing its 
weight by the weight per gallon of the formula concerned, as given in 
the appropriate tables in subpart H of 27 CFR Part 21. In the case of 
completely denatured spirits, the gallonage of any lot or package may be 
ascertained by determining its weight and apparent proof (hydrometer 
indication, corrected to 60 degrees Fahrenheit) and then multiplying the 
weight of the wine gallons per pound factor shown in Table 4 for the 
(apparent) proof.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  30.43  Packaged spirits.

    When the quantity of spirits (including denatured spirits when 
gauged by weight) in packages, such as barrels, drums, and similar 
portable containers, is to be determined by gauge of the individual 
packages, such quantity shall, except as provided in paragraph (b) of 
this section, be determined by weighing each package on an accurate 
weighing beam or platform scale having a beam or dial showing weight in 
pounds and half pounds, where packages having a capacity in excess of 10 
wine gallons are to be gauged, or in pounds and ounces, or pounds and 
hundredths of a pound, where packages designed to hold 10 wine gallons 
or less are to be gauged. In either case the tare must be determined and 
subtracted from the gross weight to obtain the net weight. From the 
proof and weight ascertained, the quantity of the spirits in proof 
gallons shall be determined by reference to Table 2, 3, or 4. However, 
if the spirits contain solids in excess of 600 milligrams per 100 
milliliters, the proof gallons shall be determined as prescribed for 
such spirits in Sec.  30.41. Notwithstanding the provisions of this 
section or of Sec.  30.44, (a) gross weights and tares of packages being 
filled need not be taken in any case where the gauge of the spirits is 
not derived from such weights under the gauging procedure being 
utilized, and (b) meters, other devices, or other methods may be used 
for determining the quantity of spirits

[[Page 859]]

in individual packages, when such meter is used as provided in 27 CFR 
Part 19, or, when such other device or method has been approved by the 
appropriate TTB officer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5204, 5211))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 
FR 37004, July 16, 1996]



Sec.  30.44  Weighing containers.

    (a) Weighing containers of more than 10 wine gallons. The weight of 
containers having a capacity in excess of 10 wine gallons shall be 
determined and recorded in pounds and half pounds.
    (b) Weighing containers of 10 wine gallons or less. The weight for 
containers of a capacity of 10 wine gallons or less shall be determined 
in pounds and ounces, or pounds and hundredths of a pound, and shall be 
recorded in pounds and hundredths of a pound. The equivalent pounds and 
hundredths of pounds and the corresponding wine gallons and proof 
gallons shall be expressed as shown in the following table for the 
respective weights in pounds and ounces and proofs shown therein or, as 
applicable, computed in accordance with rules in this section.

                                               Weight of contents
----------------------------------------------------------------------------------------------------------------
                                                                                    Weight in
                                                                                   pounds and  Contents   Proof
                  Size of container, wine gallons                   Pounds   Ozs.  hundredths   in wine  gallons
                                                                                   of a pound   gallons
----------------------------------------------------------------------------------------------------------------
190 proof spirits:
    1.............................................................       6     13       6.81         1       1.9
    2.............................................................      13     10      13.63         2       3.8
    5.............................................................      34     00      34.00         5       9.5
    10............................................................      68     00      68.00        10      19.0
192 proof spirits:
    1.............................................................       6     13       6.81         1       1.9
    2.............................................................      13      9      13.56         2       3.8
    5.............................................................      33     13      33.81         5       9.6
    10............................................................      67     10      67.63        10      19.2
200 proof spirits:
    1.............................................................       6     10       6.63         1       2.0
    2.............................................................      13      4      13.25         2       4.0
    5.............................................................      33      1      33.06         5      10.0
    10............................................................      66      2      66.12        10      20.0
----------------------------------------------------------------------------------------------------------------

    (c) Containers of other proofs or sizes. Where containers of proofs 
or sizes not shown above are to be filled, the following rule may be 
used for ascertaining the weight of the spirits to be placed in the 
container: Divide the number of gallons representing the quantity of 
spirits to be placed in the container by the fractional part of a gallon 
equivalent to 1 pound, to obtain the weight of the spirits in pounds and 
fractions of a pound to two decimal places. Reduce the decimal fraction 
of a pound to ounces by multiplying by 16, calling any fraction of an 
ounce a whole ounce. The pounds and ounces thus obtained will determine 
the point to which the spirits must be weighed to produce the results 
desired. If the weight must be marked on the container in pounds and 
decimal fractions of a pound, it will be necessary to convert the ounces 
to hundredths of a pound. The fraction of a gallon equivalent to 1 pound 
at any given proof shall be ascertained by reference to Table 4. 
However, if the spirits contain solids in excess of 600 milligrams per 
100 milliliters, the fraction of a gallon equivalent to 1 pound shall be 
determined as prescribed for such spirits in Sec.  30.41.

    Example. It is desired to fill a 1-gallon can with precisely 1 wine 
gallon of 194 proof spirits:
1.00 divided by 0.14866=6.73 pounds.
0.73 multiplied by 16=11.68 ounces, rounded to 12 ounces.
Weight of spirits--6 pounds, 12 ounces.
Weight, if required, to be marked on can-6.75 pounds.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5204, 5211))



Sec.  30.45  Withdrawal gauge for packages.

    When wooden packages are to be individually gauged for withdrawal, 
actual tare of the packages shall be determined. The actual tare of a 
package shall be determined by weighing it after its contents (including 
rinse water, if any) have been temporarily removed to a separate 
container or vessel. Where the contents of packages have been 
temporarily removed for determination of tare, the proof, if any rinse 
water is added to the spirits, shall be determined after a thorough 
mixing of the rinse water and the spirits and before return of the 
spirits to the rinsed packages, and the gross weight shall be determined 
after the spirits and any added rinse water have been returned to the 
packages. In the

[[Page 860]]

case of metal packages the tare established at the time of filling may 
be used unless it appears to be incorrect. From the proofs and the net 
weights of the packages, the wine gallons (if desired) and the proof 
gallons of spirits shall be determined by the use of Table 2. However, 
if the spirits contain solids in excess of 600 milligrams per 100 
milliliters, the wine gallon and proof gallon contents shall be 
determined as prescribed for such spirits in Sec.  30.41. If either the 
weight or the proof is beyond the limitations of table 2, either table 3 
or table 4 may be used.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

                   Determination of Quantity by Volume



Sec.  30.51  Procedures for measurement of bulk spirits.

    Where the quantity of spirits (including denatured spirits) in bulk 
is to be determined by volume as authorized by this chapter, the 
measurement shall be made in tanks, by meters as provided in 27 CFR part 
19, or by other devices or methods authorized by the appropriate TTB 
officer, or as otherwise provided in this chapter, or such measurement 
may be made in tank cars or tank trucks if calibration charts for such 
conveyances are provided and such charts have been accurately prepared, 
and certified as accurate, by engineers or other persons qualified to 
calibrate such conveyances. Volumetric measurements in tanks shall be 
made only in accurately calibrated tanks equipped with suitable 
measuring devices, whereby the actual contents can be correctly 
ascertained. If the temperature of spirits (including denatured spirits) 
is other than the standard of 60 degrees Fahrenheit, gallonage 
determined by volumetric measurements shall be corrected to the standard 
temperature by means of table 7. In the case of denatured spirits, the 
temperature-correction factor for the proof of the spirits used in 
denaturation will give sufficiently accurate results, except that the 
temperature-correction factor used for specially denatured spirits, 
Formula No. 18, should be that given in table 7 for 100 proof spirits. 
When the quantity of spirits, in wine gallons, has been determined by 
volumetric measurement, the number of proof gallons shall be obtained by 
multiplying the wine gallons by the proof of the spirits as determined 
under Sec.  30.31.

    Example. Gauge glass reading inches--88.
Wine gallons per inch--48.96.
Temperature [deg]F--72.
Proof of spirits--86.8.
Temperature correction factor (Table 7)--0.995.
48.96 W.G.x88=4308.48 wine gallons.
4308.48 W.G.x0.995=4286.94 wine gallons.
4286.94 W.G.x0.868=3721.06392=3721.1 proof gallons.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))

[T.D. ATF-198, 50 FR 8535, Mar. 1, 1985, as amended by T.D. ATF-381, 61 
FR 37004, July 16, 1996]



Sec.  30.52  Procedure for measurement of cased spirits.

    Where the quantity of spirits in a case is to be determined by 
volume, such determination shall be made by ascertaining the contents of 
one bottle in the case and multiplying that figure by the number of 
bottles in the case. For cases containing bottles filled according to 
the metric system of measure, the quantity determined shall be converted 
to wine gallons, as provided in Sec.  19.722 of this chapter. The wine 
gallons of spirits thus determined for one case may then be multiplied 
by the number of cases containing spirits at the same proof when 
determining the quantity of spirits for more than one case. The proof 
gallons of spirits in cases shall be determined by multiplying the wine 
gallons by the proof (divided by 100).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



                       Subpart E_Prescribed Tables

    Note. The tables referred to in this subpart appear in their 
entirety in the ``Gauging Manual Embracing Instructions and Tables for 
Determining Quantity of Distilled Spirits by Proof and Weight'' which is 
incorporated by reference in this part (see Sec.  30.1).

[[Page 861]]



Sec.  30.61  Table 1, showing the true percent of proof spirit for any indication of the hydrometer at temperatures between zero and 100 degrees Fahrenheit.

    This table shows the true percent of proof of distilled spirits for 
indications of the hydrometer likely to occur in practice at 
temperatures between zero and 100 degrees Fahrenheit and shall be used 
in determining the proof of spirits. The left-hand column contains the 
reading of the hydrometer and on the same horizontal line, in the body 
of the table, in the ``Temperature'' column corresponding to the reading 
of the thermometer is the corrected reading or ``true percent of 
proof.'' The table is computed for tenths of a percent.
    Example. 

Temperature, [deg]F............................................       75
Hydrometer reading.............................................      193
True percent of proof..........................................    189.5
 


Where fractional readings are ascertained, the proper interpolations 
will be made (see Sec.  30.23). If the distilled spirits contain 
dissolved solids, temperature-correction of the hydrometer reading by 
the use of this table would result in apparent proof rather than true 
proof.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  30.62  Table 2, showing wine gallons and proof gallons by weight.

    The wine and proof gallon content by weight and proof of packages of 
distilled spirits usually found in actual practice will be ascertained 
from this table. The left-hand column contains the weights. The true 
percent of proof is shown on the heading of each page in a range from 90 
degrees to 200 degrees. Under the true percent of proof and on the same 
horizontal line with the weight will be found the wine gallons (at 60 
degrees Fahrenheit) and the proof gallons respectively. Where either the 
weight or the proof of a quantity of spirits is beyond the limitations 
of this table, the number of proof gallons may be ascertained by 
reference to Table 3. This table may also be used to ascertain the wine 
gallons (at 60 degrees Fahrenheit) and proof gallons of spirituous 
liquor containing dissolved solids where the weight, apparent proof 
(hydrometer indication corrected to 60 degrees Fahrenheit), and 
obscuration factor have been determined.

    Example. 334 lbs. of distilled spirits.
Apparent proof--96.0[deg].
Obscuration--0.8[deg].
True Proof 96.0[deg]+0.8[deg]=96.8[deg].
334 lbs. at 96.0[deg] apparent proof=42.8 wine gallons.
42.8 wine gallonsx96.8[deg]=41.4 proof gallons.
    In addition this table may be used to obtain the wine gallons, at 
the prevailing temperature, of most liquids within the range of the 
table, from the weight of the liquid and the uncorrected reading of the 
hydrometer stem. An application of this would be in determining the 
capacity of a package.
    Example. It is desired to determine, or to check the rated capacity 
of a package having a net weight of 395 pounds when completely filled 
with spirits having an uncorrected hydrometer reading of 113.0[deg]. The 
full capacity of the package, 51.5 wine gallons, would be found by 
referring to the table at 395 pounds and 113[deg] proof (hydrometer 
reading).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5204, 5211))



Sec.  30.63  Table 3, for determining the number of proof gallons from the weight and proof of spirituous liquor.

    When the weight or proof of a quantity of distilled spirits is not 
found in Table 2, the proof gallons may be ascertained from Table 3. The 
wine gallons (at 60 degrees Fahrenheit) may be ascertained by dividing 
the proof gallons by the proof.

    Example. A tank car of spirits of 190 degrees of proof weighed 
60,378 pounds net. We find--

------------------------------------------------------------------------
                                                                 Proof
                                                                gallons
------------------------------------------------------------------------
60,000 pounds equal to.......................................   16,778.4
300 pounds equal to..........................................       83.9
70 pounds equal to...........................................       19.6
8 pounds equal to............................................        2.2
                                                              ----------
      Total..................................................   16,884.1
------------------------------------------------------------------------


That is, the total weight of 60,378 pounds of spirits at 190 proof is 
equal to 16,884.1 proof gallons. The equivalent gallonage for 70 pounds 
is found from the column 700 pounds by moving the decimal point one 
place to the left; that for 8 pounds from the column 800 pounds by 
moving the decimal point two places to the left.
    Example. A package of spirits at 86 proof weighed 321\1/2\ pounds 
net. We find--

------------------------------------------------------------------------
                                                                 Proof
                                                                gallons
------------------------------------------------------------------------
300 pounds equal to..........................................       32.7

[[Page 862]]

 
20 pounds equal to...........................................        2.2
1 pound equal to.............................................         .1
\1/2\ pound equal to.........................................         .1
                                                              ----------
      Total..................................................       35.1
------------------------------------------------------------------------


That is, 321\1/2\ pounds of spirits at 86 proof is equal to 35.1 proof 
gallons. The equivalent gallonage for 20 pounds is found from the column 
200 pounds by moving the decimal point one place to the left; that for 1 
pound from the column 100 pounds by moving the decimal point two places 
to the left; that for the \1/2\ pound from the column 500 pounds by 
moving the decimal point three places to the left.


Fractional gallons beyond the first decimal ascertained through use of 
this table will be dropped if less than 0.05 or will be added as 0.1 if 
0.05 or more. The wine gallons (at 60 degrees Fahrenheit) may be 
determined by dividing the proof gallons by the proof. For example: 35.1 
divided by 0.86 equals 40.8 wine gallons.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C.5204))



Sec.  30.64  Table 4, showing the fractional part of a gallon per pound at each percent and each tenth percent of proof of spirituous liquor.

    This table provides a method for use in ascertaining the wine gallon 
(at 60 degrees Fahrenheit) and/or proof gallon contents of containers of 
spirits by multiplying the net weight of the spirits by the fractional 
part of a gallon per pound shown in the table for spirits of the same 
proof. Fractional gallons beyond the first decimal will be dropped if 
less than 0.05 or will be added as 0.1 if 0.05 or more.

    Example. It is desired to ascertain the wine gallons and proof 
gallons of a tank of 190 proof spirits weighing 81,000 pounds.

81,000x0.14718=11,921.58=11,921.6 wine gallons.
81,000x0.27964=22,650.84=22,650.8 proof gallons.


This table may also be used for ascertaining the quantity of water 
required to reduce to a given proof. To do this, divide the proof 
gallons of spirits to be reduced by the fractional part of a proof 
gallon per pound of spirits at the proof to which the spirits are to be 
reduced, and subtract from the quotient the net weight of the spirits 
before reduction. The remainder will be the pounds of water needed to 
reduce the spirits to the desired proof.

    Example. It is desired to ascertain the quantity of water needed to 
reduce 1,000 pounds of 200 proof spirits, 302.58 proof gallons, to 190 
proof:

302.58 divided by 0.27964 equals 1,082.03 pounds, weight of spirits 
after reduction.
1.082.03 minus 1,000 equals 82.03 pounds, weight of water required to 
reduce to desired proof.


The slight variation between this table and Tables 2, 3, and 5 on some 
calculations is due to the dropping or adding of fractions beyond the 
first decimal in those tables. This table may also be used to determine 
the wine gallons (at 60 degrees Fahrenheit) of distilled spirits 
containing dissolved solids from the total weight of the liquid and its 
apparent proof (hydrometer indication, corrected to 60 degrees 
Fahrenheit). The proof gallons may then be found by multiplying the wine 
gallons by the true proof.

    Example. 5,350 pounds of blended whisky containing added solids

Temperature [deg]F.............................................75.0[deg]
Hydrometer reading.............................................92.0[deg]
Apparent proof.................................................85.5[deg]
Obscuration.....................................................0.5[deg]
True proof.....................................................86.0[deg]

5,350.0 lbs.x0.12676 (W.G. per pound factor for apparent proof of 
85.5[deg])=678.2 wine gallons
678.2 W.G.x0.86=583.3 proof gallons

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended 1362, as amended 
(26 U.S.C. 5204, 5211))



Sec.  30.65  Table 5, showing the weight per wine gallon (at 60 degrees Fahrenheit) and proof gallon at each percent of proof of spirituous liquor.

    This table may be used to ascertain the weight of any given number 
of wine gallons (at 60 degrees Fahrenheit) or proof gallons of spirits 
by multiplying the pounds per gallon by the given number of gallons of 
the spirits. The table should be especially useful where it is desired 
to weigh a precise quantity of spirits.

    Example. It is desired to ascertain the weight of 100 wine gallons 
of 190 proof spirits:

6.79434x100 equals 679.43 pounds, net weight of 100 wine gallons of 190 
proofs spirits.

[[Page 863]]

    Example. It is desired to ascertain the weight of 100 proof gallons 
of 190 proof spirits.

3.57597x100 equals 357.60 pounds, net weight of 100 proof gallons of 190 
proof spirits.


The slight variation between this table and Tables 2 and 3 on some 
calculations is due to dropping or adding of fractions beyond the first 
decimal on those tables. This table also shows the weight per wine 
gallon (at the prevailing temperature) corresponding to each uncorrected 
reading of a proof hydrometer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  30.66  Table 6, showing respective volumes of alcohol and water and the specific gravity in both air and vacuum of spirituous liquor.

    This table provides an alternate method for use in ascertaining the 
quantity of water needed to reduce the strength of distilled spirits by 
a definite amount. To do this, divide the alcohol in the given strength 
by the alcohol in the required strength, multiply the quotient by the 
water in the required strength, and subtract the water in the given 
strength from the product. The remainder is the number of gallons of 
water to be added to 100 gallons of spirits of the given strength to 
produce a spirit of a required strength.

    Example. It is desired to reduce spirits of 191 proof to 188 proof. 
We find that 191 proof spirits contains 95.5 parts alcohol and 5.59 
parts water, and 188 proof spirits contains 94.0 parts alcohol and 7.36 
parts water.

95.5 (the strength of 100 wine gallons of spirits at 191 proof) divided 
by 94.0 (the strength of 100 wine gallons of spirits at 188 proof) 
equals 1.01.
7.36 (the water in 188 proof) multiplied by 1.01 equals 7.43.
7.43 less 5.59 (the water in 191 proof spirits) equal 1.84 gallons of 
water to be added to each 100 wine gallons of 191 proof spirits to be 
reduced.


This rule is applicable for reducing to any proof; but when it is 
desired to reduce to 100 proof, it is sufficient to point off two 
decimals in the given proof, multiply by 53.73, and deduct the water in 
the given strength. Thus, to reduce 112 proof spirits to 100 proof:

1.12x53.73-47.75 equals 12.42 gallons of water to be added to each 100 
wine gallons of spirits to be reduced.


This table may also be used to obtain the proof gallonage of spirituous 
liquor according to weight and percent of proof.

    Example. It is desired to determine the number of gallons in 400 
pounds of spirits of 141 percent of proof. Multiply the weight of one 
gallon of water in air by the specific gravity in air of the spirits--
8.32823 by 0.88862--the product (7.40063) divided into 400 gives 54.049 
wine gallons, which rounded to the nearest hundredth is 54.05 and 
multiplied by 1.41 gives 76.2 proof gallons. In rounding off where the 
decimal is less than five, it will be dropped; if it is five or over a 
unit will be added.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



Sec.  30.67  Table 7, for correction of volume of spirituous liquors to 60 degrees Fahrenheit.

    This table is prescribed for use in correcting spirits to volume at 
60 degrees Fahrenheit. To do this, multiply the wine gallons of spirits 
which it is desired to correct to volume at 60 degrees Fahrenheit by the 
factor shown in the table at the percent of proof and temperature of the 
spirits. The product will be the corrected gallonage at 60 degrees 
Fahrenheit. This table is also prescribed for use in ascertaining the 
true capacity of containers where the wine gallon contents at 60 degrees 
Fahrenheit have been determined by weight in accordance with Tables 2, 
3, 4, or 5. This is accomplished by dividing the wine gallons at 60 
degrees Fahrenheit by the factor shown in the table at the percent of 
proof and temperature of the spirits. The quotient will be the true 
capacity of the container.

    Example. It is desired to ascertain the volume at 60 degrees 
Fahrenheit of 1,000 wine gallons of 190 proof spirits at 76 degrees 
Fahrenheit:

1,000x0.991 equals 991 wine gallons, the corrected gallonage at 60 
degrees Fahrenheit.
    Example. It is desired to ascertain the capacity of a container of 
190 proof spirits at 76 degrees Fahrenheit, shown by Table 2 to contain 
55.1 wine gallons at 60 degrees Fahrenheit:

55.1 divided by 0.991 equals 55.6 wine gallons, the true capacity of the 
container when

[[Page 864]]

filled with spirits of 60 degrees temperature.


It will be noted the table is prepared in multiples of 5 percent of 
proof and 2 degrees temperature. Where the spirits to be corrected are 
of an odd temperature, one-half of the difference, if any, between the 
factors for the next higher and lower temperature, should be added to 
the factor for the next higher temperature.

    Example. It is desired to correct spirits of 180 proof at 51 degrees 
temperature:

1.006 (50[deg])-1.005 (52[deg])=0.001 divided by 2=0.0005
0.0005+1.005=1.0055 correction factor at 51 [deg]F.
    Example. It is desired to correct spirits of 180 proof at 53 degrees 
temperature:

1.005 (52[deg])-1.003 (54[deg])=0.002 divided by 2=0.001
0.001+1.003=1.004 correction factor at 53 [deg]F.


Where the percent of proof is other than a multiple of five, the 
difference, if any, between the factors for the next higher and lower 
proofs should be divided by five and multiplied by the degrees of proof 
beyond the next lower proof, and the fractional product so obtained 
should be added to the factor for the next lower proof (if the 
temperature is above 60 degrees Fahrenheit, the fractional product so 
obtained must be subtracted from the factor for next lower proof), or if 
it is also necessary to correct the factor because of odd temperature, 
to the temperature corrected factor for the next lower proof.

    Example. It is desired to ascertain the correction factor for 
spirits of 112 proof at 47 degrees temperature:

1.006 (46[deg])-1.005 (48[deg])=0.001 divided by 2=0.0005
0.0005+1.005=1.0055 corrected factor at 47 [deg]F.
1.007 (115 proof)-1.006 (110 proof)=0.001
0.001 divided by 5=0.0002 (for each percent of proof)x2 (for 112 
proof)=0.0001
0.0004=1.0055 (corrected factor at 47 [deg]F.)=1.0059 correction factor 
to be used for 112 proof at 47 [deg]F
    Example. It is desired to ascertain the correction factor for 
spirits of 97 proof at 93 degrees temperature:

0.986 (92[deg])-0.985 (94[deg])=0.001 divided by 2=0.0005
0.0005+0.985=0.9855 corrected factor at 93 [deg]F.
0.986 (95 proof)-0.985 (100 proof)=0.001
0.001 divided by 5=0.0002 (for each percent of proof)x2 (for 97 
proof)=0.0004
0.9855 (corrected factor at 93 [deg]F.)=0.0005=0.9851 correction factor 
to be used for 97 proof at 93 [deg]F.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))



                  Subpart F_Optional Gauging Procedures



Sec.  30.71  Optional method for determination of proof for spirits containing solids of 400 milligrams or less per 100 milliliters.

    The proof of spirits shall be determined to the nearest tenth degree 
which shall be the proof used in determining the proof gallons and all 
fractional parts thereof to the nearest tenth proof gallon. The proof of 
spirits containing solids of 400 milligrams or less per 100 milliliters 
shall be determined by the use of a hydrometer and a thermometer in 
accordance with the provisions of Sec.  30.23. However, notwithstanding 
the provisions of Sec.  30.31, the proprietor may, at his option, add to 
the proof so determined the obscuration determined as prescribed in 
Sec.  30.32.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5211))



Sec.  30.72  Recording obscuration by proprietors using the optional method for determination of proof.

    Any proprietor using the optional method for determination of proof 
for spirits containing solids of 400 milligrams or less per 100 
milligrams as provided in Sec.  30.71 shall record the obscuration so 
determined on the record of gauge required by 27 CFR part 19.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1362, as amended 
(26 U.S.C. 5211))



PART 31_ALCOHOL BEVERAGE DEALERS--Table of Contents




                     Subpart A_Scope of Regulations

Sec.
31.1 Applicability.
31.2 Territorial extent.
31.3 Basic permit requirements.
31.4 Relation to State and municipal law.

                          Subpart B_Definitions

31.11 Meaning of terms.

                 Subpart C_Special (Occupational) Taxes

31.21 Basis of tax.
31.22 Selling or offering for sale.

                           Dealers Classified

31.23 Retail dealer in liquors.
31.24 Wholesale dealer in liquors.

[[Page 865]]

31.25 Retail dealer in beer.
31.26 Wholesale dealer in beer.
31.27 Limited retail dealer; persons eligible.
31.28 Sales of 20 wine gallons (75.7 liters) or more.

  Special Tax Liability of Certain Organizations, Agencies and Persons

31.29 Clubs or similar organizations.
31.30 Restaurants serving liquors with meals.
31.31 States, political subdivisions thereof, or the District of 
          Columbia.
31.32 Sales of denatured spirits or articles.
31.33 Sales of alcoholic compounds, preparations, or mixtures containing 
          distilled spirits, wines, or beer.
31.34 Sales by agencies and instrumentalities of the United States.
31.35 Warehouse receipts covering spirits.

                   Subpart D_Administrative Provisions

31.41 Forms prescribed.
31.42 Right of entry and examination.
31.43 Delegations of the Administrator.

                 Subpart E_Places Subject to Special Tax

31.51 Special tax liability incurred at each place of business.
31.52 Place of sale.
31.53 Place of offering for sale.
31.54 Places of storage; deliveries therefrom.
31.55 Caterers.
31.56 Peddling.

             Sales in Two or More Areas on the Same Premises

31.57 General.
31.58 Hotels.
31.59 Ball park, race track, etc.; sales throughout the premises.

                     Subpart F_Each Business Taxable

31.71 Different businesses of same ownership and location.
31.72 Dealer in beer and dealer in liquors at the same location.

                         Subpart G_Partnerships

31.91 Liability of partners.
31.92 Addition of partners or incorporation of partnership.
31.93 Formation of a partnership by two dealers.
31.94 Withdrawal of one or more partners.

                    Subpart H_Payment of Special Tax

31.101 Special tax rates.
31.102 Date special tax is due.
31.103 Computation of special tax.

                Filing Return and Payment of Special Tax

31.104 Time for filing return.
31.104a Place for filing return.
31.105 Method of payment.

                     Special Tax Return, Form 5630.5

31.106 Special tax returns.
31.106a Employer identification number.
31.107 Execution of Form 5630.5.
31.109 Penalty for failure to file return or to pay tax.
31.110 Interest on unpaid tax.

                           Delinquent Returns

31.111 Waiver of penalties.

                      Subpart I_Special Tax Stamps

31.121 Issuance of stamps.
31.121a Distribution of stamps for multiple locations.
31.122 Receipt in lieu of stamp prohibited.
31.123 Stamps covering business in violation of State law.
31.124 Passenger trains, aircraft, and vessels.
31.125 Carriers not engaged in passenger service.
31.126 Supply boats or vessels.
31.127 Retail dealers ``At Large.''

                  Stamp To Be Available for Examination

31.131 General.
31.132 Lost or destroyed.
31.133 Seizure by State authorities.

               Correction of Errors on Special Tax Stamps

31.134 Errors disclosed by taxpayers.
31.135 Errors discovered on inspection.

           Stamps for Incorrect Period or Incorrect Liability

31.136 General.
31.137 Credit by an ATF officer.
31.138 Receipt for taxes.
31.139 Credit for incorrect stamp.

                      Subpart J_Change of Location

31.151 Amended return, Form 5630.5; endorsement on stamp.
31.152 Failure to register change of address within 30 days.
31.153 Certificate in lieu of lost or destroyed special tax stamp.

              Subpart K_Change in Proprietorship or Control

31.161 Sale of business.
31.162 Incorporation of business.
31.163 New corporation.
31.164 Stockholder continuing business of corporation.

[[Page 866]]

31.165 Change in trade name or style of business.
31.166 Change of name or increase in capital stock of a corporation.
31.167 Change in ownership of capital stock.
31.168 Change in membership of unincorporated club.
31.169 Change of control, persons having right of succession.
31.170 Failure to perfect right of succession within 30 days.

                   Subpart L_Exemptions and Exceptions

        Persons Exempt From Liquor and Beer Dealer Special Taxes

31.181 Single sale of liquors or warehouse receipts.
31.182 Proprietors of distilled spirits plants selling certain distilled 
          spirits or wines.
31.183 Proprietors of bonded wine cellars selling certain wines or wine 
          spirits.
31.183a Proprietors of taxpaid wine bottling houses selling certain 
          wines.
31.184 Proprietors of breweries selling beer stored at their breweries.
31.185 Wholesale dealers in liquors consummating sales of wines or beer 
          at premises of other dealers.
31.186 Wholesale dealers in beer consummating sales at premises of other 
          dealers.
31.187 Hospitals.
31.187a Limited retail dealers.
31.187b Coordination of taxes under 26 U.S.C. 5111 and 5121.

             Persons Who Are Not Dealers in Liquors or Beer

31.188 Persons making casual sales.
31.189 Agents, auctioneers, brokers, etc., acting on behalf of others.
31.190 Apothecaries or druggists selling medicines and tinctures.
31.191 Persons selling products unfit for beverage use.
31.192 Retail dealer selling in liquidation his entire stock.
31.193 Persons returning liquors for credit, refund, or exchange.

                    Subpart M_Refund of Special Taxes

31.201 Claims.
31.202 Time limit on filing of claim.
31.203 Discontinuance of business.

    Subpart N_Restrictions Relating to Purchases of Distilled Spirits

31.211 Unlawful purchases of distilled spirits.

     Subpart O_Prescribed Records and Reports, and Posting of Signs

                 Wholesale Dealers' Records and Reports

31.221 General requirements as to distilled spirits.
31.222 Requirements as to wines and beer.
31.223 Records to be kept by States, political subdivisions thereof, or 
          the District of Columbia.
31.224 Records to be kept by proprietors of distilled spirits plants.
31.225 Records of receipt.
31.226 Records of disposition.
31.227 Cancelled or corrected records.
31.228 Previously prescribed or approved records of receipt and 
          disposition.
31.229 Variations in format, or preparation, of records.
31.230 Monthly summary report.
31.231 Conversion between metric and U.S. units.
31.232 Discontinuance of business.
31.233 Requirements when a wholesale dealer in liquors maintains a 
          retail department.

                         Retail Dealer's Records

31.234 Requirements for retail dealers.

                      Files of Records and Reports

31.235 Filing.
31.236 Place of filing.

                           Period of Retention

31.237 Retention of records and files.
31.238 Photographic copies of records.
31.239-31.241 [Reserved]

Subpart P [Reserved]

          Subpart Q_Reuse and Possession of Used Liquor Bottles

31.261 Refilling of liquor bottles.
31.262 Possession of refilled liquor bottles.
31.263 Possession of used liquor bottles.
31.264 Mixed cocktails.

           Subpart R_Packaging of Alcohol for Industrial Uses

31.271 Requirements and procedure.
31.272 Labeling.

     Subpart S_Distilled Spirits for Export With Benefit of Drawback

31.281 General.
31.283 Records.

                         Subpart T_Miscellaneous

31.291 Destruction of marks and brands on wine containers.
31.292 Wine bottling.

[[Page 867]]

31.293 Mixing cocktails in advance of sale.

    Authority: 26 U.S.C. 5001, 5002, 5111-5114, 5116, 5117, 5121-5124, 
5142, 5143, 5145, 5146, 5148, 5206, 5207, 5301, 5352, 5555, 5613, 5681, 
5691, 6001, 6011, 6061, 6065, 6071, 6091, 6109, 6151, 6311, 6314, 6402, 
6511, 6601, 6621, 6651, 6657, 7011, 7805.

    Source: 25 FR 6270, July 2, 1960, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005.

    Editorial Note: Nomenclature changes to part 31 appear by T.D. TTB-
25, 70 FR 19884, Apr. 15, 2005.



                     Subpart A_Scope of Regulations



Sec.  31.1  Applicability.

    This part contains the substantive and procedural requirements 
relating to the special taxes imposed on wholesale and retail dealers in 
liquors and in beer, requirements and procedures pertaining to 
operations of such dealers prescribed under Title 26 of the United 
States Code, as amended, and provisions relating to entry of premises 
and inspection of records by TTB officers.

[T.D. ATF-271, 53 FR 17552, May 17, 1988, as amended by T.D. TTB-25, 70 
FR 19884, Apr. 15, 2005]



Sec.  31.2  Territorial extent.

    The provisions of this part shall be applicable in the several 
States of the United States and the District of Columbia.



Sec.  31.3  Basic permit requirements.

    Every person, except an agency of a State or political subdivision 
thereof, who intends to engage in the business of selling distilled 
spirits, wines, or beer to other dealers is required by regulations in 
Part 1 of this chapter to obtain a basic permit authorizing him to 
engage in such business.

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979. Redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.4  Relation to State and municipal law.

    The payment of any tax imposed by 26 U.S.C. Chapter 51, for carrying 
on any trade or business specified in Sec.  31.1 shall not be held to 
exempt any person from any penalty or punishment provided by the laws of 
any State for carrying on such trade or business within such State, or 
in any manner to authorize the commencement or continuance of such trade 
or business contrary to the laws of such State or in places prohibited 
by municipal law; nor shall the payment of any such tax be held to 
prohibit any State from placing a duty or tax on the same trade or 
business, for State or other purposes.

(72 Stat. 1348; 26 U.S.C. 5145)

[T.D. 7130, 36 FR 12852, July 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



                          Subpart B_Definitions



Sec.  31.11  Meaning of terms.

    When used in this part and in forms prescribed under this part, 
where not otherwise distinctly expressed or manifestly incompatible with 
the intent thereof, terms shall have the meaning ascribed in this 
section. Words in the plural form shall include the singular, and vice 
versa, and words importing the masculine gender shall include the 
feminine. The terms ``includes'' and ``including'' do not exclude things 
not enumerated which are in the same general class.
    Administrator. The Administrator, Alcohol and Tobacco Tax and Trade 
Bureau, Department of the Treasury, Washington, DC.
    Appropriate TTB officer. An officer or employee of the Alcohol and 
Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions 
relating to the administration or enforcement of this part by TTB Order 
1135.31, Delegation of the Administrator's Authorities in 27 CFR Part 
31, Alcohol Beverage Dealers.
    Beer. Beer, ale, porter, stout, and other similar fermented 
beverages (including sake or similar products) of any name or 
description containing one-half of 1 percent or more of alcohol by 
volume, brewed or produced from malt, wholly or in part, or from any 
substitute therefor.
    Bonded wine cellar. An establishment qualified under this chapter 
for the production, blending, cellar treatment,

[[Page 868]]

storage, bottling, and packaging or repackaging of untaxpaid wine.
    Brewery. An establishment qualified under this chapter for the 
production of beer.
    CFR. The Code of Federal Regulations.
    Dealer. Any person who sells, or offers for sale, any distilled 
spirits, wines, or beer.
    Denatured spirits or denatured alcohol. Spirits to which denaturants 
have been added as prescribed under this chapter.
    Director of the service center. A director of an internal revenue 
service center.
    Distilled spirits or spirits. That substance known as ethyl alcohol, 
ethanol, or spirits of wine in any form, including all dilutions and 
mixtures thereof, from whatever source or by whatever process produced.
    Distilled spirits plant. An establishment qualified under Part 19 of 
this chapter for the production, storage or processing of distilled 
spirits.
    District director. A district director of internal revenue.
    Fiscal year. The period from October 1 of one calendar year through 
September 30 of the following year.
    Gallon or wine gallon. A United States gallon of liquid measure 
equivalent to the volume of 231 cubic inches.
    Liquor bottle. A bottle made of glass or earthenware, or of other 
suitable material approved by the Food and Drug Administration, which 
has been designed or is intended for use as a container for distilled 
spirits for sale for beverage purposes and which has been determined by 
the appropriate TTB officer to adequately protect the revenue.
    Liquors. Distilled spirits, wines, or beer.
    Liter. A metric unit of capacity equal to 1,000 cubic centimeters of 
alcoholic beverage, and equivalent to 33.814 fluid ounces. A liter is 
divided into 1,000 milliliters. Milliliter or milliliters may be 
abbreviated as ``ml''.
    Person. An individual, a trust, estate, partnership, association or 
other unincorporated organization, fiduciary, company, or corporation, 
or the District of Columbia, a State, or a political subdivision thereof 
(including a city, county, or other municipality).
    Place, or place of business. The entire office, plant, or area of 
the business in any one location under the same proprietorship; and 
passageways, streets, highways, rail crossings, waterways, or partitions 
dividing the premises shall not be deemed a separation for special tax 
purposes, if the various divisions are otherwise contiguous.
    Reclaim. To grind up a liquor bottle or container and use the ground 
up material to make products other than liquor bottles or containers.
    Recycle. To grind up a liquor bottle or container and use the ground 
up material to make new liquor bottles or containers.
    Sale at retail or retail sale. Sale of liquors to a person other 
than a dealer.
    Sale at wholesale or wholesale sale. Sale of liquors to a dealer.
    Special tax. The occupational tax imposed on a dealer in liquors or 
a dealer in beer.
    Tax year. The period from July 1 of one calendar year through June 
30 of the following year.
    U.S.C. The United States Code.
    Wine. When used without qualification, the term includes every kind 
(class and type) of product produced on bonded wine premises from 
grapes, other fruit (including berries), or other suitable agricultural 
products and containing not more than 24 percent of alcohol by volume. 
The term includes all imitation, other than standard, or artificial wine 
and compounds sold as wine. A wine product containing less than one-half 
of one percent alcohol by volume is not taxable as wine when removed 
from the bonded wine premises.

(26 U.S.C. 7805 (68A Stat. 917, as amended) 27 U.S.C. 205 (49 Stat. 981, 
as amended))

[T.D. ATF-48, 43 FR 13541, Mar. 31, 1978, as amended by T.D. ATF-50, 43 
FR 37180, Aug. 22, 1978; 44 FR 55843, Sept. 28, 1979; T.D. ATF-62, 44 FR 
71693, Dec. 11, 1979; T.D. ATF-114, 47 FR 43949, Oct. 5, 1982; T.D. ATF-
344, 58 FR 40355, July 28, 1993. Redesignated and amended by T.D. TTB-
25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-44, 71 FR 16947, Apr. 4, 2006]



                 Subpart C_Special (Occupational) Taxes



Sec.  31.21  Basis of tax.

    (a) General. Except as otherwise provided in paragraph (b) of this 
section,

[[Page 869]]

special taxes are imposed on persons engaging in or carrying on the 
business or occupation of selling or offering for sale alcoholic liquors 
fit for use as a beverage or any alcoholic liquors sold for use as a 
beverage. The classes of liquor dealer business on which special 
occupational tax is imposed and the conditions under which such tax is 
incurred are specified in Sec. Sec.  31.23 through 31.26. No person 
shall engage in any business on which the special tax is imposed until 
he has filed a special tax return as provided in Sec.  31.26 of this 
part and paid the special tax for such business.
    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. However, liquor dealers must register by filing the 
special tax return on Form 5630.5 during the suspension period even 
though the amount of tax due is zero. During the suspension period, as 
at other times, the special tax return is due on or before commencement 
of business and on or before July 1 of each year thereafter.

(72 Stat. 1346; 26 U.S.C. 5142)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-271, 53 FR 17552, May 17, 1988. Redesignated and 
amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 
62247, Oct. 31, 2005]



Sec.  31.22  Selling or offering for sale.

    Whether the activities of any person constitute engaging in the 
business of selling or offering for sale is to be determined by the 
facts in each case, but any course of selling or offering for sale, 
though to a restricted class of persons or without a view to profit, is 
within the meaning of the statute.

                           Dealers Classified



Sec.  31.23  Retail dealer in liquors.

    (a) General. Every person who sells or offers for sale distilled 
spirits, wines, or beer to any person other than a dealer is, except as 
provided in paragraph (b) of this section, a retail dealer in liquors. 
Except during the suspension period described in Sec.  31.21(b), every 
retail dealer in liquors shall pay special tax at the rate specified in 
Sec.  31.101 for such dealer, unless such dealer is exempt from such 
special tax as provided in paragraph (c) of this section. During the 
suspension period described in Sec.  31.21(b) when no tax is due, the 
dealer must register by filing the special tax return, Form 5630.5.
    (b) Persons not deemed to be retail dealers in liquors. The 
following persons are not deemed to be retail dealers in liquors within 
the meaning of 26 U.S.C. chapter 51, and are not required to pay special 
tax (or to register during the suspension period described in Sec.  
31.21(b)) as such dealer:
    (1) A retail dealer in beer as defined in Sec.  31.25,
    (2) A limited retail dealer as specified in Sec.  31.27, or
    (3) A person who only sells or offers for sale distilled spirits, 
wines, or beer as provided in Sec.  31.188 through Sec.  31.190 or Sec.  
31.191(a).
    (c) Persons exempt from special tax. The following persons are 
exempt from special tax (and from registration during the suspension 
period described in Sec.  31.21(b)) as retail dealers in liquors:
    (1) A wholesale dealer in liquors selling or offering for sale 
distilled spirits, wines, or beer, whether to dealers or persons other 
than dealers, at any place where such wholesale dealer in liquors is 
required to pay special tax (or to register during the suspension period 
described in Sec.  31.21(b)) as such dealer.
    (2) A wholesale dealer in beer selling or offering for sale beer 
only, whether to dealers or persons other than dealers, at any place 
where such wholesale dealer in beer is required to pay special tax (or 
to register during the suspension period described in Sec.  31.21(b)) as 
such dealer, or
    (3) A person who is exempt from special tax under the provisions of 
Sec. Sec.  31.181-31.184, 31.187, or 31.187a.

(72 Stat. 1340, 1343, 1344; 26 U.S.C. 5113, 5121, 5122)

[T.D. TTB-36, 70 FR 62247, Oct. 31, 2005]



Sec.  31.24  Wholesale dealer in liquors.

    (a) General. Every person who sells or offers for sale distilled 
spirits, wines, or beer to another dealer is, except as

[[Page 870]]

provided in paragraph (b) of this section, a wholesale dealer in 
liquors. Except during the suspension period described in Sec.  
31.21(b), every wholesale dealer in liquors is required to pay special 
tax at the rate specified in Sec.  31.101 for such dealer, unless such 
dealer is exempt from such special tax as provided in paragraph (c) of 
this section. During the suspension period when no tax is due, the 
dealer must register by filing the special tax return, Form 5630.5, in 
accordance with Sec.  31.21(b).
    (b) Persons not deemed to be wholesale dealers in liquors. The 
following persons are not deemed to be wholesale dealers in liquors 
within the meaning of 26 U.S.C. chapter 51, and are not required to pay 
special tax (or to register during the suspension period described in 
Sec.  31.21(b)) as such dealer:
    (1) A wholesale dealer in beer as defined in Sec.  31.26,
    (2) A person who only sells or offers for sale distilled spirits, 
wines, or beer as provided in Sec. Sec.  31.188 through 31.190 or Sec.  
31.192, or
    (3) A person returning liquors for credit, refund, or exchange as 
provided in Sec.  31.193.
    (c) Persons exempt from special tax. (1) The following persons are 
exempt from special tax (and from registration during the suspension 
period described in Sec.  31.21(b)) as wholesale dealers in liquors:
    (i) A retail dealer in liquors who consummates sales of distilled 
spirits, beer or wine, or any combination thereof, to a limited retail 
dealer at the place where such retail dealer in liquors has paid the 
special tax (or has registered during the suspension period described in 
Sec.  31.21(b)) as such dealer for the current tax year,
    (ii) A retail dealer in beer who, having paid the special tax (or 
having registered during the suspension period described in Sec.  
31.21(b)) as such dealer for the current tax year, consummates sales at 
his place of business of beer to a limited retail dealer, or
    (iii) A person who is exempt from such tax under the provisions of 
Sec. Sec.  31.181 through 31.184.
    (2) A wholesale dealer in liquors who has paid the special tax (or 
has registered during the suspension period described in Sec.  31.21(b)) 
as such dealer at the place or places from which he conducts his selling 
operations is exempt from additional special tax (or from additional 
registration during the suspension period described in Sec.  31.21(b)) 
on account of his sales of beer or wines to other dealers at the places 
of business of such dealers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340, as amended, 1344, as amended; 
sec. 1905, Pub. L. 94-455, 90 Stat. 1819 (26 U.S.C. 5111, 5112, 5113, 
5123))

[T.D. TTB-36, 70 FR 62248, Oct. 31, 2005]



Sec.  31.25  Retail dealer in beer.

    (a) General. Every person who sells or offers for sale beer, but not 
distilled spirits or wines, to any person other than a dealer is, except 
as provided in paragraph (b) of this section, a retail dealer in beer. 
Except during the suspension period described in Sec.  31.21(b), every 
retail dealer in beer shall pay special tax at the rate specified in 
Sec.  31.101 for such dealer, unless such dealer is exempt from such 
special tax as provided in paragraph (c) of this section. During the 
suspension period when no tax is due, the dealer must register by filing 
the special tax return, Form 5630.5, in accordance with Sec.  31.21(b).
    (b) Persons not deemed to be retail dealers in beer. The following 
persons are not deemed to be retail dealers in beer within the meaning 
of 26 U.S.C. chapter 51, and are not required to pay a special tax (or 
to register during the suspension period described in Sec.  31.21(b)) as 
such dealer:
    (1) A limited retail dealer as specified in Sec.  31.27, or
    (2) A person who only sells or offers for sale beer, but not 
distilled spirits or wines, as provided in Sec.  31.188 through Sec.  
31.189 or Sec.  31.191(a).
    (c) Persons exempt from special tax. The following persons are 
exempt from special tax (and from registration during the suspension 
period described in Sec.  31.21(b)) as retail dealers in beer:
    (1) A wholesale dealer in beer selling or offering for sale beer, 
but not distilled spirits or wines, whether to dealers or persons other 
than dealers, at any place where such wholesale dealer in beer is 
required to pay special tax (or to register during the suspension

[[Page 871]]

period described in Sec.  31.21(b)) as such dealer.
    (2) A person who is exempt from special tax under the provisions of 
Sec. Sec.  31.181, 31.184, 31,187, or 31.187a.

(72 Stat. 1340, 1343, 1344; 26 U.S.C. 5113, 5121, 5122)

[T.D. TTB-36, 70 FR 62248, Oct. 31, 2005]



Sec.  31.26  Wholesale dealer in beer.

    (a) General. Every person who sells or offers for sale beer, but not 
distilled spirits or wines, to another dealer is, except as provided in 
paragraph (b) of this section, a wholesale dealer in beer. Except during 
the suspension period described in Sec.  31.21(b), every wholesale 
dealer in beer is required to pay special tax at the rate specified in 
Sec.  31.101 for such dealer, unless such dealer is exempt from such 
special tax as provided in paragraph (c) of this section. During the 
suspension period when no tax is due, the dealer must register by filing 
the special tax return, Form 5630.5, in accordance with Sec.  31.21(b).
    (b) Persons not deemed to be wholesale dealers in beer. The 
following persons are not deemed to be wholesale dealers in beer within 
the meaning of 26 U.S.C. chapter 51, and are not required to pay special 
tax (or to register during the suspension period described in Sec.  
31.21(b)) as such dealer:
    (1) A person who only sells or offers for sale beer, but not 
distilled spirits or wines, as provided in Sec.  31.188 through Sec.  
31.189 or Sec.  31.192, or
    (2) A person returning beer for credit, refund or exchange as 
provided in Sec.  31.193.
    (c) Persons exempt from special tax. (1) The following persons are 
exempt from special tax (and from registration during the suspension 
period described in Sec.  31.21(b)) as wholesale dealers in beer:
    (i) A retail dealer in liquors who consummates sales of distilled 
spirits, beer or wine, or any combination thereof, to a limited retail 
dealer at the place where such retail dealer in liquors has paid the 
special tax (or has registered during the suspension period described in 
Sec.  31.21(b)) as such dealer for the current tax year,
    (ii) A retail dealer in beer who consummates sales of beer to a 
limited dealer at the place where such retail dealer in beer has paid 
the special tax (or has registered during the suspension period 
described in Sec.  31.21(b)) as such dealer for the current tax year, or
    (iii) A person who is exempt from such tax under the provisions of 
Sec. Sec.  31.181 and 31.184.
    (2) A wholesale dealer in beer who has paid the special tax (or has 
registered during the suspension period described in Sec.  31.21(b)) as 
such dealer at the place, or places, from which he conducts his selling 
operations is exempt from additional special tax (or from additional 
registration during the suspension period described in Sec.  31.21(b)) 
on account of his sales of beer to other dealers at the places of 
business of such dealers.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340, as amended, 1344, as amended; 
sec. 1905, Pub. L. 94-455, 90 Stat. 1819 (26 U.S.C. 5111, 5112, 5113, 
5123))

[T.D. TTB-36, 70 FR 62248, Oct. 31, 2005]



Sec.  31.27  Limited retail dealer; persons eligible.

    Any person selling distilled spirits, beer or wine, or any 
combination thereof, to members, guests, or patrons of bona fide fairs, 
reunions, picnics, carnivals, or similar outings, and any fraternal, 
civic, church, labor, charitable, benevolent, or ex-servicemen's 
organization selling distilled spirits, beer or wine, or any combination 
thereof, on the occasion of any kind of entertainment, dance, picnic, 
bazaar, or festival held by it, is a ``limited retail dealer,'' if the 
person or organization is not otherwise engaged in business as a dealer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1344; sec. 1905, Pub. L. 94-455, 90 
Stat. 1819, as amended (26 U.S.C. 5122))

[T.D. ATF-271, 53 FR 17552, May 17, 1988. Redesignated by T.D. TTB-25, 
70 FR 19884, Apr. 15, 2005]



Sec.  31.28  Sales of 20 wine gallons (75.7 liters) or more.

    Any person who sells or offers for sale distilled spirits, wines, or 
beer, in quantities of 20 wine gallons (75.7 liters) or more, to the 
same person at the same time, shall be presumed and held to be a 
wholesale dealer in liquors or a wholesale dealer in beer, as the

[[Page 872]]

case may be, unless such person shows by satisfactory evidence that such 
sale, or offer for sale, was made to a person other than a dealer.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1413 (26 U.S.C. 5691))

[T.D. ATF-34, 41 FR 46860, Oct. 26, 1976. Redesignated by T.D. TTB-25, 
70 FR 19884, Apr. 15, 2005]

  Special Tax Liability of Certain Organizations, Agencies and Persons



Sec.  31.29  Clubs or similar organizations.

    (a) Subject to paragraph (b) of this section, a club or similar 
organization shall pay special tax (or register during the suspension 
period as provided in Sec.  31.21(b)) if such club or organization:
    (1) Furnishes liquors to members under conditions constituting sale 
(including the acceptance of orders therefor, furnishing the liquors 
ordered and collecting the price thereof); or
    (2) Conducts a bar for the sale of liquors on the occasion of an 
outing, picnic, or other entertainment, unless the club is a ``limited 
retail dealer'' under Sec.  31.27 (the special tax stamp or registration 
of the proprietor of the premises where the bar is located will not 
relieve the club or organization from its own special tax payment or 
registration); or
    (3) Purchases liquors for members without prior agreement concerning 
payment therefor and such organization subsequently recoups.
    (b) Special tax payment or registration is not required if money is 
collected in advance from members for the purchase of liquors, or money 
is advanced for purchase of liquors on agreement with the members for 
reimbursement.

(72 Stat. 1340, 1343, 1344; 26 U.S.C. 5111, 5121, 5122)

[T.D. TTB-36, 70 FR 62249, Oct. 31, 2005]



Sec.  31.30  Restaurants serving liquors with meals.

    Proprietors of restaurants and other persons who serve liquors with 
meals to customers, though no separate or specific charge for the 
liquors is made, shall pay special tax or shall register during the 
suspension period as provided in Sec.  31.21(b).

(72 Stat. 1344; 26 U.S.C. 5122)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and further redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; 
T.D. TTB-36, 70 FR 62249, Oct. 31, 2005]



Sec.  31.31  States, political subdivisions thereof, or the District of Columbia.

    (a) General.'' A State, a political subdivision thereof, or the 
District of Columbia which engages in the business of selling, or 
offering for sale, distilled spirits, wines, or beer is not exempt from 
special tax. However, no such governmental entity shall be required to 
pay more than one special tax as a retail dealer in liquors regardless 
of the number of locations at which such entity carries on business as a 
retail dealer in liquors. Any such governmental entity which has paid 
the applicable wholesale dealer special tax at its principal office, and 
has paid the applicable special tax as a retail dealer, shall not be 
required to pay additional wholesale dealer special tax at its retail 
stores by reason of the sale thereat of distilled spirits, wines, or 
beer, to dealers qualified to do business as such within the 
jurisdiction of such entity.
    (b) Suspension of tax. During the suspension period described in 
Sec.  31.21(b) when no tax is due, the States, their political 
subdivisions, and the District of Columbia must register only once per 
tax year by filing a special tax return, Form 5630.5, in accordance with 
Sec.  31.21(b).

(72 Stat. 1340, 1343, 1344, as amended; 26 U.S.C. 5111, 5113, 5121, 
5123)

[T.D. 7130, 36 FR 12852, July 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and further redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 
2005; T.D. TTB-36, 70 FR 62249, Oct. 31, 2005]



Sec.  31.32  Sales of denatured spirits or articles.

    Any person who sells denatured spirits or any substance or 
preparation made with or containing denatured spirits for use, or for 
sale for use, for beverage purposes, or who sells any of such products 
under circumstances from which it might reasonably appear that it is the 
intention of the purchaser to procure the same for sale or

[[Page 873]]

use for beverage purposes, shall pay special tax or shall register 
during the suspension period as provided in Sec.  31.21(b).

(72 Stat. 1314; 26 U.S.C. 5001)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and further redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; 
T.D. TTB-36, 70 FR 62249, Oct. 31, 2005]



Sec.  31.33  Sales of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer.

    (a) Special tax. Special tax payment (or registration during the 
suspension period as provided in Sec.  31.21(b)) will be required with 
respect to the sale, or offering for sale, of alcoholic compounds, 
preparations, or mixtures containing distilled spirits, wines, or beer, 
unless such compounds, preparations, or mixtures are unfit for use for 
beverage purposes and are sold solely for use for nonbeverage purposes.
    (b) Products unfit for beverage use. Products meeting the 
requirements for exemption from qualification under the provisions of 
Sec.  19.58 of this chapter shall be deemed to be unfit for beverage 
purposes for the purposes of this part.

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996. Redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62249, Oct. 
31, 2005]



Sec.  31.34  Sales by agencies and instrumentalities of the United States.

    Unless specifically exempt by statute, any agency or instrumentality 
of the United States, including post exchanges, ship's stores, ship's 
service stores, and commissaries, or any canteen, club, mess, or similar 
organization operated under regulations of any such agency or 
instrumentality, which sells, or offers for sale, distilled spirits, 
wines, or beer shall pay special tax (or register during the suspension 
period as provided in Sec.  31.21(b)) as a dealer in liquors or as a 
dealer in beer, as the case may be, for carrying on such business.

(72 Stat. 1340, 1343, 1347; 26 U.S.C. 5111, 5121, 5143)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62249, Oct. 31, 2005]



Sec.  31.35  Warehouse receipts covering spirits.

    The sale of warehouse receipts for distilled spirits is equivalent 
to the sale of distilled spirits. Accordingly, except during the 
suspension period described in Sec.  31.21(b), every person who sells or 
offers for sale warehouse receipts for spirits held or stored in a 
distilled spirits plant, customs bonded warehouse, or elsewhere, is 
required to file a special tax return and pay special tax as a wholesale 
dealer in liquors, or as a retail dealer in liquors, as the case may be, 
at the place where such warehouse receipts are sold, or offered for 
sale, unless exempt by the provisions of subpart L of this part. During 
the suspension period, such persons must register as provided in Sec.  
31.21(b).

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[T.D. TTB-36, 70 FR 62249, Oct. 31, 2005]



                   Subpart D_Administrative Provisions



Sec.  31.41  Forms prescribed.

    (a) The appropriate TTB officer is authorized to prescribe all forms 
required by this part. All of the information called for in each form 
shall be furnished as indicated by the headings on the form and the 
instructions on or pertaining to the form. In addition, information 
called for in each form shall be furnished as required by this part.
    (b) Forms prescribed by this part are available for printing through 
the TTB Web site (http://www.ttb.gov) or by mailing a request to the 
Alcohol and Tobacco Tax and Trade Bureau, National

[[Page 874]]

Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 45202.

(5 U.S.C. 552(a); 80 Stat. 383, as amended)

[T.D. ATF-92, 46 FR 46916, Sept. 23, 1981, as amended by T.D. ATF-249, 
52 FR 5962, Feb. 27, 1987; T.D. 372, 61 FR 20725, May 8, 1996. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.42  Right of entry and examination.

    Any appropriate TTB officer may enter during business hours the 
premises (including places of storage) of any dealer for the purpose of 
inspecting or examining any records or other documents required to be 
kept by such dealer under this part and any distilled spirits, wines, or 
beer kept or stored by such dealer on such premises.

(72 Stat. 1348; 26 U.S.C. 5146)

[Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; 
T.D. TTB-44, 71 FR 16948, Apr. 4, 2006]



Sec.  31.43  Delegations of the Administrator.

    The regulatory authorities of the Administrator contained in this 
part are delegated to appropriate TTB officers. These TTB officers are 
specified in TTB Order 1135.31, Delegation of the Administrator's 
Authorities in 27 CFR Part 31, Alcohol Beverage Dealers. You may obtain 
a copy of this order by accessing the TTB Web site (http://www.ttb.gov) 
or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, 
National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 
45202.

[T.D. TTB-44, 71 FR 16948, Apr. 4, 2006]



                 Subpart E_Places Subject to Special Tax



Sec.  31.51  Special tax liability incurred at each place of business.

    Except as provided in Sec. Sec.  31.31 and 31.181 through 31.193, 
payment of special tax (or registration during the suspension period as 
provided in Sec.  31.21(b)) is required for each and every place where 
distilled spirits, wines, or beer are sold or offered for sale: 
Provided, That the term ``place'' as used in this section means the 
entire office, plant or area of the business in any one location under 
the same proprietorship; and passageways, streets, highways, rail 
crossings, waterways, or partitions dividing the premises shall not be 
deemed sufficient separation to require the payment of additional 
special tax (or to require additional registration), if the various 
divisions are otherwise contiguous.

(72 Stat. 1347; 26 U.S.C. 5143)

[T.D. TTB-36, 70 FR 62249, Oct. 31, 2005]



Sec.  31.52  Place of sale.

    The place at which ownership of liquors is transferred, actually or 
constructively, is the place of sale.

(72 Stat. 1347; 26 U.S.C. 5143)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.53  Place of offering for sale.

    Liquors are offered for sale (a) at the place where they are kept 
for sale and where a sale may be effected, or (b) at any place where 
sales are consummated. Liquors are not offered for sale by sending 
abroad an agent to take orders, or by establishing an office for the 
mere purpose of taking orders, provided in each case the orders received 
are transmitted to the principal for acceptance at the place where he 
holds a special tax stamp (or for which he has registered during the 
suspension period described in Sec.  31.21(b) when no tax is due and no 
special tax stamp is issued) or is exempt from special tax or 
registration as provided in subpart L of this part.

(72 Stat. 1347; 26 U.S.C. 5143)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62249, Oct. 31, 2005]



Sec.  31.54  Places of storage; deliveries therefrom.

    Special tax is not required to be paid (and registration under Sec.  
31.21(b) is not required) for warehouses and similar places which are 
used by dealers merely for the storage of liquors and are not

[[Page 875]]

places where orders for liquors are accepted. Where orders for liquors 
are received and duly accepted at a place where the dealer holds the 
required special tax stamp (or for which the dealer has registered 
during the suspension period described in Sec.  31.21(b) when no special 
tax stamp is issued), the subsequent actual delivery of the liquors from 
a place of storage does not require the payment of special tax (or 
registration) at such place of storage. Except as provided in Sec. Sec.  
31.185 and 31.186, a dealer holding a special tax stamp (or having 
registered during the suspension period) at a given place, who makes 
actual delivery of liquors from a warehouse at another place, without 
prior constructive delivery by the acceptance of an order therefor at 
the place covered by the special tax stamp (or by registration during 
the suspension period), shall pay special tax (or shall register during 
the suspension period as provided in Sec.  31.21(b)) at the place where 
ownership of the liquors is transferred.

(72 Stat. 1340, 1347; 26 U.S.C. 5113, 5143)

[T.D. TTB-36, 70 FR 62249, Oct. 31, 2005]



Sec.  31.55  Caterers.

    (a) General. Where a contract to furnish liquors is made by a 
caterer at his place of business where he holds a special tax stamp (or 
for which he has registered during the suspension period described in 
Sec.  31.21(b)), no payment of special tax (or registration during the 
suspension period) is required by the serving of the liquors at a 
different location.
    (b) Additional liability. Where the contract of a caterer provides 
for the sale of liquors by the drink at a place, or simultaneously at 
different places, other than his place of business where he holds a 
special tax stamp (or for which he has registered during the suspension 
period described in Sec.  31.21(b)), a separate payment of special tax 
(or registration during the suspension period) is required for each such 
place.
    (c) Records. Caterers must maintain sufficient commercial records to 
verify that their special (occupational) tax liabilities (or 
registration obligations during the suspension period described in Sec.  
31.21(b)) have been satisfied for all locations at which activities 
subject to special (occupational) tax or registration occur. These 
commercial records should indicate the names and addresses of locations 
at which alcoholic beverages have been sold or offered for sale and the 
dates and times that such activities occurred. These commercial records 
must be available to appropriate TTB officers upon request.

(26 U.S.C. 5121, 5122, 5143, 5555, 6806, 7011)

[T.D. TTB-36, 70 FR 62250, Oct. 31, 2005, as amended by T.D. TTB-44, 71 
FR 16948, Apr. 4, 2006]



Sec.  31.56  Peddling.

    No person shall peddle distilled spirits, wines, or beer, except as 
provided in Sec. Sec.  31.126, 31.185, and 31.186. Persons peddling 
liquors and not meeting the exemptions specified in Sec. Sec.  31.126, 
31.185, and 31.186 are required to pay special tax (or to register 
during the suspension period as provided in Sec.  31.21(b)) at each 
place where sales are consummated.

(72 Stat. 1344, 1347; 26 U.S.C. 5123, 5143)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62250, Oct. 31, 2005]

             Sales in Two or More Areas on the Same Premises



Sec.  31.57  General.

    Where liquors are sold by a proprietor in two or more areas within 
his place of business, only one special tax stamp (or one registration 
during the suspension period described in Sec.  31.21(b) when no tax is 
due and no special tax stamp is issued) is required. Where the 
proprietor lets to another person or persons the privilege of selling 
liquors in two or more areas within his place of business, whether such 
privilege is exercised separately or simultaneously with the proprietor 
or another concessionaire, each such person shall pay but one special 
tax, or shall register

[[Page 876]]

only once per tax year during the suspension period in accordance with 
Sec.  31.21(b).

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62250, Oct. 31, 2005]



Sec.  31.58  Hotels.

    The proprietor of a hotel who conducts the sale of liquors 
throughout the hotel premises shall pay but one special tax, or shall 
register only once per tax year during the suspension period described 
in Sec.  31.21(b). For example, different areas in a hotel such as 
banquet rooms, meeting rooms, guest rooms, or other such areas, operated 
by the proprietor, collectively constitute a single place of business. 
Where any concessionaire conducts the sale of liquors at two or more 
areas in a hotel, such areas shall be regarded as a single place of 
business, and he shall pay but one special tax, or shall register only 
once per tax year during the suspension period in accordance with Sec.  
31.21(b).

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62250, Oct. 31, 2005]



Sec.  31.59  Ball park, race track, etc.; sales throughout the premises.

    The proprietor of a ball park, race track, stadium, pavilion, or 
other similar enclosure constituting one premises, who engages in the 
business of selling liquors throughout such enclosure, including sales 
from baskets or containers by his employees in his behalf, shall pay but 
one special tax (or shall register only once per tax year during the 
suspension period described in Sec.  31.21(b)) for such enclosure. Each 
concessionaire having the same privilege throughout the enclosure, 
whether such privilege is exercised separately or simultaneously with 
the proprietor or another concessionaire, or concessionaires, shall pay 
but one special tax (or shall register only once per tax year during the 
suspension period described in Sec.  31.21(b)) for such enclosure.

(72 Stat. 1347; 26 U.S.C. 5143)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62250, Oct. 31, 2005]



                     Subpart F_Each Business Taxable



Sec.  31.71  Different businesses of same ownership and location.

    (a) General. Where more than one taxable business is conducted by 
the same person at the same place, special tax for each business shall 
be paid at the rates severally prescribed, except as provided in 
Sec. Sec.  31.24 and 31.26.
    (b) Suspension of tax. The person must register for each business 
during the suspension period as provided in Sec.  31.21(b) when no tax 
is due, except as provided in Sec. Sec.  31.24 and 31.26.

(72 Stat. 1347; 26 U.S.C. 5143)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-379, 61 FR 31426, June 20, 1996 and further 
redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62250, Oct. 31, 2005]



Sec.  31.72  Dealer in beer and dealer in liquors at the same location.

    (a) Rule in effect prior to January 1, 1988. Any person who was 
required to pay special tax as a wholesale or retail dealer in beer, who 
entered business as such, and who thereafter, in the same or a 
subsequent month prior to January 1, 1988, began to sell distilled 
spirits or wine shall, in addition, pay the special tax as a wholesale 
or retail dealer in liquors before commencing the sale, or offering for 
sale, of distilled spirits or wine.
    (b) Rule in effect on January 1, 1988, and thereafter. Any person 
who pays special tax (or who registers during the suspension period as 
provided in Sec.  31.21(b)) as a retail dealer in beer for a period 
beginning on or after January 1, 1988, (including one who pays such tax 
under the transition rule of Sec.  31.103(b)) is exempt from additional 
special tax (or from additional registration during the suspension 
period) as a retail dealer in liquors with respect to sales of

[[Page 877]]

distilled spirits or wine at the place and during the period for which 
the tax was paid (or registration was completed) as a retail dealer in 
beer. Similarly, any person who pays special tax (or who registers 
during the suspension period as provided in Sec.  31.21(b)) as a 
wholesale dealer in beer for a period beginning on or after January 1, 
1988, (including one who pays such tax under the transition rule of 
Sec.  31.103(b)) is exempt from additional special tax (or from 
additional registration during the suspension period) as a wholesale 
dealer in liquors with respect to sales of distilled spirits or wine at 
the place and during the period for which the tax was paid (or 
registration was completed) as a wholesale dealer in beer.

(26 U.S.C. 5113, 5143)

[T.D. ATF-285, 54 FR 12610, Mar. 28, 1989. Redesignated by T.D. TTB-25, 
70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62250, Oct. 31, 2005]



                         Subpart G_Partnerships



Sec.  31.91  Liability of partners.

    Any number of persons carrying on one business in partnership at any 
one place during any tax year shall be required to pay but one special 
tax (or to register but once during the suspension period as provided in 
Sec.  31.21(b)) for such business.

(72 Stat. 1347; 26 U.S.C. 5143)

[T.D. TTB-36, 70 FR 62250, Oct. 31, 2005]



Sec.  31.92  Addition of partners or incorporation of partnership.

    Except during the suspension period described in Sec.  31.21(b), 
where a number of persons who have paid special tax as partners admit 
one or more new members to the firm or form a corporation (a separate 
legal entity) to take over the business, the new firm or corporation 
shall pay special tax before commencing business. During the suspension 
period described in Sec.  31.21(b), the new firm or corporation must 
register as a new dealer.

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[T.D. TTB-36, 70 FR 62250, Oct. 31, 2005]



Sec.  31.93  Formation of a partnership by two dealers.

    Except during the suspension period described in Sec.  31.21(b), 
where two persons, each holding a special tax stamp for a business 
carried on by himself, form a partnership, the firm shall pay special 
tax to cover the business conducted by the partnership. During the 
suspension period described in Sec.  31.21(b), if two registered dealers 
form a partnership, the firm must register as a new dealer.

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[T.D. TTB-36, 70 FR 62251, Oct. 31, 2005]



Sec.  31.94  Withdrawal of one or more partners.

    When one or more partners withdraw from a partnership which has paid 
special tax, the remaining partner, or partners, may file with the 
appropriate TTB officer a notice of succession to the partnership 
business within 30 days after the change in control, as provided in 
Sec.  31.169, and carry on the same business at the same address for the 
remainder of the taxable period for which special tax was paid without 
paying additional special tax. However, except during the suspension 
period described in Sec.  31.21(b), where the remaining partner, or 
partners, do not file such timely notice of succession, they are 
required to pay special tax, as provided in Sec.  31.170. During the 
suspension period, the remaining partner or partners must file a new 
registration on Form 5630.5 within 30 days after the change in control.

(68A Stat. 846, 72 Stat. 1347; 26 U.S.C. 7011, 5143)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. 
ATF-251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62251, Oct. 31, 
2005; T.D. TTB-44, 71 FR 16948, Apr. 4, 2006]



                    Subpart H_Payment of Special Tax



Sec.  31.101  Special tax rates.

    (a) Previous rates. Prior to January 1, 1988, the special 
(occupational) taxes

[[Page 878]]

imposed on dealers in liquors and beer were as follows:
    (1) Annual (tax year) rates:

Wholesale dealer in liquors (spirits, wines, beer)...............$255.00
Wholesale dealer in beer (beer only)..............................123.00
Retail dealer in liquors (spirits, wines, beer)....................54.00
Retail dealer in beer (beer only)..................................24.00

    (2) Monthly (calendar month) rates:

Limited retail dealer (spirits, wines, beer).......................$4.50
Limited retail dealer (wines, beer).................................2.20

    (b) General--(1) Current rates. Effective January 1, 1988, special 
(occupational) taxes are imposed on dealers in liquors and beer at the 
following rates:

Wholesale dealer in liquors (spirits, wines, beer)..................$500
Wholesale dealer in beer (beer only).................................500
Retail dealer in liquors (spirits, wines, beer)......................250
Retail dealer in beer (beer only)....................................250
    (2) Rate during suspension period. During the suspension period 
described in Sec.  31.21(b), the special (occupational) tax rate for all 
dealers in liquor or beer is zero.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340, 1343; sec. 1905, Pub. L. 94-
455, 90 Stat. 1819 (26 U.S.C. 5111, 5121))

[T.D. ATF-271, 53 FR 17552, May 17, 1988; 54 FR 11866, Mar. 22, 1989. 
Redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 
FR 62251, Oct. 31, 2005]



Sec.  31.102  Date special tax is due.

    Except during the suspension period described in Sec.  31.21(b), 
special taxes shall be paid on or before July 1 of each year, or before 
engaging in business. During the suspension period when no tax is due, 
dealers must register by filing the special tax return, Form 5630.5, 
before commencement of business and on or before July 1 of each year 
thereafter.

(72 Stat. 1346; 26 U.S.C. 5142)

[T.D. TTB-36, 70 FR 62251, Oct. 31, 2005]



Sec.  31.103  Computation of special tax.

    (a) General. In the case of a person engaged in a business subject 
to special tax during the month of July, the special tax liability shall 
be reckoned for the entire tax year beginning July 1 and ending June 30 
following. Where business is commenced subsequent to July, the liability 
shall be reckoned proportionately from the first day of the month in 
which the liability to a special tax commenced to June 30 following. For 
example, a person commencing business in August is liable to special tax 
for 11 months, or eleven-twelfths of the annual tax.
    (b) Transition rule. A taxpayer who was engaged in a business on 
January 1, 1988, for which a special (occupational) tax was paid for a 
taxable period which began before January 1, 1988, and included that 
date, shall pay an increased special tax for the period January 1, 1988, 
through June 30, 1988. The increased tax shall not exceed one-half the 
excess (if any) of (1) the rate of special tax in effect on January 1, 
1988, over (2) the rate of such tax in effect on December 31, 1987. The 
increased special tax shall be paid on or before April 1, 1988.

(72 Stat. 1346; 26 U.S.C. 5142)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55843, Sept. 28, 1979; T.D. ATF-271, 
53 FR 17554, May 17, 1988. Redesignated by T.D. TTB-25, 70 FR 19884, 
Apr. 15, 2005]

                Filing Return and Payment of Special Tax



Sec.  31.104  Time for filing return.

    Every person who intends to engage in a business subject to special 
tax under the provisions of this part shall, on or before the date such 
business is commenced, file a special tax return, Form 5630.5, with 
payment of applicable tax; and every taxpayer who continues into a new 
tax year a business subject to special tax under the provisions of this 
part shall file a Form 5630.5 with applicable tax on or before July 1 of 
the new tax year. A taxpayer subject to special tax (or required to 
register during the suspension period described in Sec.  31.21(b)) for 
the same period at two or more locations shall file one special tax 
return, Form 5630.5, prepared as provided in Sec.  31.106, with payment 
of applicable tax to cover all such locations. If the return and 
applicable tax are received in the mail and the U.S. postmark on the 
cover shows

[[Page 879]]

that it was deposited in the mail in the United States within the time 
prescribed for filing in an envelope or other appropriate wrapper which 
was properly addressed with postage prepaid, the return shall be 
considered as timely filed. If the postmark is not legible, the sender 
has the burden of proving the date when the postmark was made. When 
registered mail is used the date of registration shall be accepted as 
the postmark date.

(68A Stat. 732 as amended, 749 as amended (26 U.S.C. 6011, 6071); sec. 
201, Pub. L. 85-859, 72 Stat. 1346 as amended (26 U.S.C. 5142))

[T.D. ATF-70, 45 FR 33979, May 21, 1980, as amended by T.D. ATF-251, 52 
FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62251, Oct. 31, 2005]



Sec.  31.104a  Place for filing return.

    Form 5630.5 with remittance of applicable tax shall be filed with 
TTB in accordance with the instructions on the form.

[T.D. ATF-251, 52 FR 19335, May 22, 1987. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62251, Oct. 
31, 2005]



Sec.  31.105  Method of payment.

    Payment of special tax shall be made in cash, or by check or money 
order payable to Alcohol and Tobacco Tax and Trade Bureau. If a check or 
money order so tendered is not honored when presented for payment, the 
person who tendered such check or money order shall remain liable for 
the payment of the special tax, and for all penalties and additions, to 
the same extent as if the check or money order had not been tendered. In 
addition, unless the person who tendered the check or money order can 
show that such check or money order was issued in good faith, and with 
reasonable cause to believe that it would be duly paid, there shall be 
paid as penalty an amount equal to 1 percent of the amount of the check 
or money order, except that if the amount of the check or money order is 
less than $500, the penalty shall be $5, or the amount of the check or 
money order, whichever is lesser.

(68A Stat. 777, 826; 26 U.S.C. 6311, 6657)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. Redesignated and 
amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]

                     Special Tax Return, Form 5630.5



Sec.  31.106  Special tax returns.

    (a) General. Special tax shall be paid by return, and the filing of 
a return is required for registration purposes even though no tax is due 
during the suspension period described in Sec.  31.21(b). The prescribed 
return is TTB Form 5630.5, Special Tax Registration and Return. Special 
tax returns, with payment of tax, shall be filed with TTB in accordance 
with instructions on the form.
    (b) Preparation of TTB Form 5630.5. All of the information called 
for on TBF Form 5630.5 shall be provided, including:
    (1) The true name of the taxpayer.
    (2) The trade name(s) (if any) of the business(es) subject to 
special tax.
    (3) The employer identification number (see Sec.  31.106a).
    (4) The exact location of the place of business, by name and number 
of building or street, or if these do not exist, by some description in 
addition to the post office address. In the case of one return for two 
or more locations, the address to be shown shall be the taxpayer's 
principal place of business (or principal office, in the case of a 
corporate taxpayer).
    (5) The class(es) of special tax to which the taxpayer is subject or 
to which the return relates during the suspension period described in 
Sec.  31.21(b).
    (6) Ownership and control information: That is, the name, position, 
and residence address of every owner of the business and of every person 
having power to control its management and policies with respect to the 
activity subject to special tax. ``Owner of the business'' shall include 
every partner, if the taxpayer is a partnership, and every person owning 
10% or more of its stock, if the taxpayer is a corporation. However, the 
ownership and control information required by this paragraph

[[Page 880]]

need not be stated if the same information has been previously provided 
to ATF, and if the information previously provided is still current.
    (c) Multiple locations and/or classes of tax. A taxpayer subject to 
special tax, or required to register during the suspension period 
described in Sec.  31.21(b), for the same period at more than one 
location or for more than one class of tax shall--
    (1) File one special tax return, TTB Form 5630.5, with payment of 
applicable tax, to cover all such locations and classes of tax; and
    (2) Prepare, in duplicate, a list identified with the taxpayer's 
name, address (as shown on TTB Form 5630.5), employer identification 
number, and period covered by the return. The list shall show, by 
States, the name, address, and tax class of each location for which 
special tax is being paid or for which registration is being made during 
the suspension period described in Sec.  31.21(b). The original of the 
list shall be filed with TTB in accordance with instructions on the 
return, and the copy shall be retained at the taxpayer's principal place 
of business (or principal office, in the case of a corporate taxpayer) 
for the period specified in Sec.  31.237.

(26 U.S.C. 6011, 6151, 7011)

[T.D. ATF-271, 53 FR 17552, May 17, 1988. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62251, Oct. 
31, 2005]



Sec.  31.106a  Employer identification number.

    (a) Requirement. The employer identification number (defined in 26 
CFR 301.7701-12) of the taxpayer who has been assigned such a number 
shall be shown on each special tax return, including amended returns, 
filed under this subpart. Failure of the taxpayer to include the 
employer identification number may result in the imposition of the 
penalty specified in Sec.  70.113 of this chapter.
    (b) Application for employer identification number. Each taxpayer 
who files a special tax return, who has not already been assigned an 
employer identification number, shall file IRS Form SS-4 to apply for 
one. The taxpayer shall apply for and be assigned only one employer 
identification number, regardless of the number of places of business 
for which the taxpayer is required to file a special tax return. The 
employer identification number shall be applied for no later than 7 days 
after the filing of the taxpayer's first special tax return. IRS Form 
SS-4 may be obtained from the director of an IRS service center or from 
any IRS district director.
    (c) Preparation and filing of IRS Form SS-4. The taxpayer shall 
prepare and file IRS Form SS-4, together with any supplementary 
statement, in accordance with the instructions on the form or issued in 
respect to it.

(26 U.S.C. 6109)

[T.D. ATF-271, 53 FR 17553, May 17, 1988; as amended by T.D. ATF-301, 55 
FR 47657, Nov. 14, 1990. Redesignated by T.D. TTB-25, 70 FR 19884, Apr. 
15, 2005]



Sec.  31.107  Execution of Form 5630.5.

    The return of an individual proprietor shall be signed by the 
proprietor; the return of a partnership shall be signed by a member of 
the firm; and the return of a corporation shall be signed by a duly 
authorized officer thereof: Provided, That any individual, partnership, 
or corporation may appoint an agent to sign in his behalf. In each case, 
the person signing the return shall designate his capacity as 
``individual owner,'' ``member of firm,'' ``agent,'' ``attorney-in-
fact'' or, in the case of a corporation, the title of the officer. 
Receivers, trustees, assignees, executors, administrators, and other 
legal representatives who continue the business of a dealer by reason of 
death, insolvency, or other circumstances, shall indicate the fiduciary 
capacity in which they act. Returns signed by persons, as agents or 
attorneys-in-fact, will not be accepted unless, in each instance, the 
principal named on the return has executed a power of attorney 
authorizing such person to sign the return, and such power of attorney 
is filed with the TTB officer with whom the Form 5630.5 is required to 
be filed. Form 11 shall be verified by a written declaration that the 
return has been

[[Page 881]]

executed under the penalties of perjury.

(68A Stat. 748, 749; 26 U.S.C. 6061, 6065)

[T.D. 7008, 34 FR 3665, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, as amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.109  Penalty for failure to file return or to pay tax.

    (a) Failure to file return. Except during the suspension period 
described in Sec.  31.21(b), any person required by this part to file a 
return on Form 5630.5 who fails to file the return on or before the last 
date prescribed in Sec.  31.104 shall pay, as an addition to the tax, a 
delinquency penalty, unless it is shown that such failure is due to 
reasonable cause and not due to willful neglect. The delinquency penalty 
for failure to file the return on or before the last date prescribed 
shall be 5 percent of the amount required to be shown as tax on the 
return if the failure is for not more than one month; with an additional 
5 percent for each additional month or fraction thereof during which 
such delinquency continues, but not more than 25 percent in the 
aggregate. During the suspension period, a failure to file a return may 
result in a penalty under 26 U.S.C. 5603(b).
    (b) Failure to pay tax. Any person who files a return on Form 5630.5 
under the provisions of this part and who fails to pay the amount shown 
as tax on the return on or before the date prescribed in Sec.  31.104 
for payment of such tax, shall pay, as an addition to the tax, a 
penalty, unless it is shown that such failure is due to reasonable cause 
and not due to willful neglect. The penalty for failure to pay the tax 
on or before the date prescribed for payment shall be 0.5 percent of the 
amount shown as tax on the return if the failure is not more than one 
month; with an additional 0.5 percent for each additional month or 
fraction thereof during which the failure continues, but not exceeding 
25 percent in the aggregate.
    (c) Limitations. With respect to any return on Form 5630.5, the 
amount of the addition under paragraph (a) of this section shall be 
reduced by the amount of the addition under paragraph (b) of this 
section for any month to which an addition to tax applies under both 
paragraphs (a) and (b) of this section. If the amount of tax required to 
be shown as tax on the return is less than the amount shown as tax on 
such return, the penalties prescribed in paragraphs (a) and (b) of this 
section shall be applied by substituting such lower amount.

(68A Stat. 821, as amended; 26 U.S.C. 6651)

[T.D. 7110, 36 FR 8034, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, as amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; 
T.D. TTB-36, 70 FR 62251, Oct. 31, 2005]



Sec.  31.110  Interest on unpaid tax.

    (a) General. Interest is due on unpaid special tax from the date the 
tax was required to be paid to the date paid. Interest shall be charged 
for each day at the rate prescribed by law in effect on that day.
    (b) Adjusted interest rates. Adjusted interest rates are announced 
by the Commissioner of Internal Revenue not later than October 15 of any 
year, in accordance with variations in the prime interest rate during 
September of that year, as prescribed by 26 U.S.C. 6621(b). The 
appropriate TTB officer will provide information, when requested, 
regarding interest rates applicable to specific time periods.

(Sec. 7, Pub. L. 96-625, 88 Stat. 2114 as amended (26 U.S.C. 6621); 68A 
Stat. 817 (26 U.S.C. 6601))

[T.D. ATF-116, 47 FR 51571, Nov. 16, 1982. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]

                           Delinquent Returns



Sec.  31.111  Waiver of penalties.

    In every case where a special tax return is not filed, or the tax is 
not paid, at the time prescribed in Sec.  31.104, the delinquency 
penalties specified in Sec.  31.109 for failure to file a return or for 
failure to pay the amount shown as tax on the return will be asserted 
and collected unless a reasonable cause for delay in filing the return 
or payment of the tax is clearly established. A dealer who believes the 
circumstances which delayed his filing of the return or payment of the 
tax are reasonable, and who desires to have the penalties

[[Page 882]]

waived, shall submit with his return a written statement under the 
penalties of perjury, affirmatively showing all of the circumstances 
alleged as reasonable causes for delay. If the appropriate TTB officer 
determines that the delinquency was due to a reasonable cause and not to 
willful neglect or gross negligence, the addition to the tax will not be 
assessed. If the taxpayer exercised ordinary business care and prudence 
and was nevertheless unable to file the return within the prescribed 
time, or if he made a satisfactory showing that he exercised ordinary 
business care and prudence in providing for payment of his tax liability 
and was nevertheless either unable to pay the tax or would have suffered 
an undue hardship if he had paid on the due date, then the delay is due 
to reasonable cause. Mere ignorance of the law will not be considered a 
reasonable cause.

(68A Stat. 821, as amended; 26 U.S.C. 6651)

[T.D. 7110, 36 FR 8034, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



                      Subpart I_Special Tax Stamps



Sec.  31.121  Issuance of stamps.

    (a) Issuance--(1) General. Except as otherwise provided in paragraph 
(a)(2) of this section, upon filing a return properly executed on Form 
5630.5, together with a remittance in the applicable full amount due, 
the taxpayer will be issued an appropriately designated stamp. Special 
tax stamps will not be issued in the case of a return covering liability 
for a past period.
    (2) Exception for suspension period. During the suspension period 
described in Sec.  31.21(b) when registration is required but no tax is 
due, a special tax stamp will not be issued.
    (b) Multiple locations. If Form 5630.5 with remittance covers 
multiple locations, the taxpayer will be issued one stamp for each 
location listed in the attachment to Form 5630.5 required by Sec.  
31.106(c) but showing, as to name and address, only the name of the 
taxpayer and the address of the taxpayer's principal place of business 
(or principal office in the case of a corporate taxpayer).

(Sec. 1905, Pub. L. 94-455, 90 Stat. 1820 (26 U.S.C. 5142))

[T.D. ATF-42, 42 FR 8369, Feb. 10, 1977, as amended by T.D. ATF-251, 52 
FR 19335, May 22, 1987. Redesignated and amended by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62251, Oct. 31, 2005]



Sec.  31.121a  Distribution of stamps for multiple locations.

    On receipt of the special tax stamps, the taxpayer will verify that 
he has one stamp for each location listed in his copy of the attachment 
to Form 5630.5 and examine them to insure that his name and address are 
correctly stated thereon. Incorrect stamps shall be returned to the 
appropriate TTB officer as provided in Sec.  31.134. The taxpayer shall 
designate one stamp for each location listed in his copy of the 
attachment to Form 5630.5 required by Sec.  31.106 and shall type 
thereon the trade name, if different from the name in which the stamp 
was issued, and the address of the business conducted at the location 
for which that stamp is designated. He shall then forward each stamp to 
the place of business designated on the stamp. On receipt of the stamp 
at the designated place of business, it shall be examined to verify that 
the name and address of the business are correctly stated. If they are 
not, the stamp shall be returned, with a statement showing the nature of 
the error and the correct data, to the principal office of the taxpayer 
who will compare the data on the stamp with his retained copy of the 
attachment to Form 5630.5. If the error in name and address was made by 
the taxpayer, he will correct the stamp and return it to the designated 
place of business. If the error was made in the attachment to Form 
5630.5, the taxpayer will file with TTB an amended Form 5630.5 and an 
amended attachment with a statement explaining the error.

[T.D. 7110, 36 FR 8035, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]

[[Page 883]]



Sec.  31.122  Receipt in lieu of stamp prohibited.

    No receipt shall be issued in lieu of a special tax stamp. A receipt 
may be given only pending the issuance of a stamp, or where the tax 
liability relates to a prior fiscal year.

(68A Stat. 778; 26 U.S.C. 6314)



Sec.  31.123  Stamps covering business in violation of State law.

    TTB officers are without authority to refuse to issue a special tax 
stamp to a liquor dealer engaged in business in violation of State law. 
The stamp is not a Federal permit or license, but is merely a receipt 
for the tax. The stamp affords the holder no protection against 
prosecution for violation of State law.

(72 Stat. 1348; 26 U.S.C. 5145)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3665, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. 
ATF-251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.124  Passenger trains, aircraft, and vessels.

    (a) Issuance of stamps--(1) Except as otherwise provided in 
paragraph (a)(2) of this section, special tax stamps may be issued in 
general terms ``in the United States'' to persons who will carry on the 
business of retail dealers in liquors or retail dealers in beer, on 
trains, aircraft, boats or other vessels, engaged in the business of 
carrying passengers. If sales of liquors are made at the same time on 
two or more passenger carriers, a special tax stamp shall be obtained 
for each such carrier. However, a dealer may transfer any such stamp 
from one passenger carrier to another on which he conducts his business, 
without registering the transfer with TTB, and he may conduct such 
business throughout the passenger carrying train, aircraft, boat or 
other vessel, to which the stamp is transferred.
    (2) During the suspension period described in Sec.  31.21(b) when no 
tax is due, dealers operating on trains, aircraft, and vessels must 
register as provided in paragraph (b) of this section, but no special 
tax stamps will be issued.
    (b) Filing of Form 5630.5 and payment of tax. A person subject to 
special tax (or to registration during the suspension period described 
in Sec.  31.21(b)) on one or more passenger carriers shall file one Form 
5630.5, prepared in the manner prescribed in Sec.  31.106(b), with 
payment of applicable tax in accordance with Sec.  31.101, to cover all 
such carriers and shall specify on the Form 5630.5 the number of 
passenger carriers for which special tax is being paid (or for which 
registration is being completed).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1344 as amended, 1347 as amended (26 
U.S.C. 5123, 5143))

[T.D. TTB-36, 70 FR 62251, Oct. 31, 2005]



Sec.  31.125  Carriers not engaged in passenger service.

    Except as provided in Sec.  31.126, the retailing of liquor on any 
railroad train, aircraft, or boat that is not engaged in the business of 
carrying passengers is prohibited.

(72 Stat. 1344, 1347; 26 U.S.C. 5123, 5143)

[T.D. TTB-36, 70 FR 62252, Oct. 31, 2005]



Sec.  31.126  Supply boats or vessels.

    (a) General. Subject to paragraph (b) of this section, special tax 
stamps may be issued to persons carrying on the business of a retail 
dealer in liquor or a retail dealer in beer on supply boats or vessels 
operated by them, when such persons operate from a fixed address in a 
port or harbor and supply exclusively boats or other vessels, or persons 
thereon, at such port or harbor. Any person desiring to obtain a special 
tax stamp for such business shall file Form 5630.5, prepared in the 
manner prescribed in Sec.  31.106(b), with any required remittance, and 
shall specify on the Form 5630.5, or on an attachment thereto: that the 
business will consist of supplying exclusively boats, vessels, or 
persons thereon; the name of the port or harbor at which the business is 
to be carried on; and the fixed address from which operations are to be 
conducted--Provided, That where such sales are to be made from two or 
more supply boats or vessels, the dealer shall obtain a special tax 
stamp for each such boat or vessel, and shall, in addition to the 
information required above

[[Page 884]]

to be specified on the Form 5630.5 or attachment, specify on the Form 
5630.5 the number of supply boats or vessels for which special tax is 
being paid (or for which registration is being made during the 
suspension period described in Sec.  31.21(b)). A dealer may transfer 
any such stamp from any boat or vessel on which he discontinues such 
sales to any other boat or vessel on which he proposes to conduct such 
business, without registering the transfer with TTB. If the taxpayer 
operates from two or more fixed addresses, he shall prepare, as required 
by Sec.  31.106(c), one tax return, Form 5630.5, to cover all such 
addresses and shall, in addition, show on the attachment to the Form 
5630.5 the number of stamps to be procured for supply boats or vessels 
operating from each address. On receipt of the special tax stamps, the 
taxpayer shall designate an appropriate number of stamps for each 
location and shall type thereon the trade name, if different from the 
name in which the stamp was issued, and the fixed address of the 
business conducted at the location for which the stamps are designated. 
He shall then forward the stamps to the place of business designated on 
the stamps. The taxpayer shall enter on each stamp received for 
retailing liquors on supply boats or vessels, immediately after the 
occupational tax classification, the phrase ``on supply boats'' and in 
the lower margin the notation, ``Covers supplying exclusively of boats 
or vessels, or persons thereon, at the Port (or Harbor) of'' followed by 
the name of such port or harbor.
    (b) Suspension of tax. During the suspension period described in 
Sec.  31.21(b), the requirements of paragraph (a) of this section will 
apply except with regard to the payment of special (occupational) tax 
and the issuance of special tax stamps.

(72 Stat. 1344, 1347; 26 U.S.C. 5123, 5143)

[T.D. TTB-36, 70 FR 62252, Oct. 31, 2005]



Sec.  31.127  Retail dealers ``At Large.''

    (a) General. Subject to paragraph (b) of this section, a retail 
dealer in liquors or a retail dealer in beer whose business requires him 
to travel from place to place in different States of the United States, 
such as those who sell at carnivals or circuses, may obtain a special 
tax stamp ``At Large'' covering his activities throughout the United 
States with the payment of but one special tax as a retail dealer in 
liquors or a retail dealer in beer, as required by his business. A 
dealer desiring such stamp shall state on his special tax return, Form 
11, or on an attached statement, the nature of his business and the 
reason he requires a special tax stamp ``At Large.'' Unless satisfied 
that the business of the dealer requires him to travel in more than one 
State, the appropriate TTB officer will not issue a stamp ``At Large'' 
to the applicant.
    (b) Suspension of tax. During the suspension period described in 
Sec.  31.21(b), the requirements of paragraph (a) of this section will 
apply except with regard to the payment of special (occupational) tax 
and the issuance of special tax stamps.

(72 Stat. 1344; 26 U.S.C. 5123)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3665, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. 
ATF-251. 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62252, Oct. 31, 
2005]

                  Stamp To Be Available For Examination



Sec.  31.131  General.

    Except during the suspension period described in Sec.  31.21(b) when 
no special tax stamps are issued, a dealer shall keep his special tax 
stamp available in his place of business for inspection by any 
appropriate TTB officer during business hours. A dealer holding a 
special tax stamp as a retail dealer in liquors or a retail dealer in 
beer ``At Large'' or ``In the United States'' shall keep the stamp 
available for inspection where he is conducting such business.

(72 Stat. 1348; 26 U.S.C. 5146)

[T.D. 7130, 36 FR 12852, July 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975. Redesingated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 
2005; T.D. TTB-36, 70 FR 62252, Oct. 31, 2005; T.D. TTB-44, 71 FR 16948, 
Apr. 4, 2006]

[[Page 885]]



Sec.  31.132  Lost or destroyed.

    If a special tax stamp has been lost or destroyed, the dealer shall 
immediately notify the appropriate TTB officer who issued the stamp. A 
``Certificate in Lieu of Lost or Destroyed Special Tax Stamp'' will be 
issued to the dealer who submits an affidavit showing to the 
satisfaction of the appropriate TTB officer that the stamp was lost or 
destroyed. The certificate shall be kept available for inspection in the 
same manner as prescribed for a special tax stamp in Sec.  31.131.

[T.D. 7130, 36 FR 12852, July 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.133  Seizure by State authorities.

    Where a stamp designated ``Retail Dealer in Liquors'' is seized by 
State authorities because it does not conform to the dealer's local 
license or permit (wine, or wine and beer), the appropriate TTB officer 
will, on request, issue a ``Certificate in Lieu of Lost or Destroyed 
Special Tax Stamp'' to show that the dealer has paid special tax as a 
``Retail Dealer in Wine'' or ``Retail Dealer in Wines and Beer,'' as the 
case may require.

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3665, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. 
ATF-251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005]

               Correction of Errors on Special Tax Stamps



Sec.  31.134  Errors disclosed by taxpayers.

    On receipt of a special tax stamp, the dealer will examine it to 
insure that the name and address are correctly stated; if not, the 
taxpayer will return the stamp to the appropriate TTB officer who issued 
the stamp with a statement showing the nature of the error and the 
correct name or address. The appropriate TTB officer, on receipt of such 
stamp and statement, will compare the data on the stamp with that of the 
Form 5630.5 in his files, correct the error if made in his office, and 
return the stamp to the taxpayer. However, if the error was in the 
taxpayer's preparation of the Form 5630.5, the appropriate TTB officer 
will require such taxpayer to file a new Form 5630.5, designated 
``Amended Return,'' setting forth the taxpayer's correct name and 
address, and a statement explaining the error on the original Form 
5630.5. On receipt of the amended Form 5630.5 and a satisfactory 
explanation of the error, the appropriate TTB officer will make the 
proper correction on the stamp and return it to the taxpayer.

[T.D. 7008, 34 FR 3665, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987; T.D. 
ATF-344, 58 FR 40355, July 28, 1993. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.135  Errors discovered on inspection.

    When an appropriate TTB officer discovers a material error on a 
special tax stamp in the name, ownership, or address of the dealer, he 
will secure from the dealer a new Form 5630.5, designated ``Amended 
Return,'' showing correctly all of the information required in Sec.  
31.106 and, in the body of the form or in an attachment thereto, a 
statement of the reason for requesting correction of the stamp. On 
receipt of the amended return and an acceptable explanation for the 
error, the officer will make the proper correction on the stamp and 
return it to the taxpayer. However, if the error found by the 
appropriate TTB officer is on a special tax stamp obtained pursuant to a 
return on Form 5630.5 filed under the provisions of Sec.  31.106(c), he 
shall instruct the taxpayer to return the stamp, with a statement 
showing the nature of the error and the correct data, to the dealer's 
principal office as provided in Sec.  31.121a.

[T.D. 7110, 36 FR 8035, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; 
T.D. TTB-44, 71 FR 16948, Apr. 4, 2006]

           Stamps for Incorrect Period or Incorrect Liability



Sec.  31.136  General.

    Where a dealer through error has filed a return and paid special tax 
(or filed a return as a registration during

[[Page 886]]

the suspension period described in Sec.  31.21(b)) for an incorrect 
period of liability or incorrect class of business, he shall prepare a 
correct Form 5630.5 for each tax year involved, designating it as an 
``Amended Return,'' and submit the amended return, or returns, with 
remittance for the total applicable tax and additions to the tax 
(delinquency penalties and interest) incurred, to TTB in accordance with 
the instructions on the Form 5630.5 or, if the error is discovered by an 
appropriate TTB officer, to such officer: Provided, That, subject to the 
limitations imposed by 26 U.S.C. 6511, the tax (including additions 
thereto) paid for the incorrect period of liability or incorrect class 
of business may be allowed as a credit against the correct tax 
(including any additions thereto) as provided in Sec.  31.137 or Sec.  
31.139 on surrender of the incorrect stamp or stamps with the amended 
return or returns noted to show that credit is requested. Tax (including 
additions thereto) paid for a stamp for an incorrect period of liability 
or incorrect class of business which is not credited as provided in 
Sec.  31.137 or Sec.  31.139, including any creditable tax and additions 
thereto in excess of the correct tax (including additions thereto), may 
be refunded pursuant to the provisions of subpart M of this part where 
the dealer has filed a correct return on Form 5630.5 with remittance for 
the correct amount of tax (including any additions thereto). A new stamp 
will be issued only in respect of a current period of liability.

(68A Stat. 732; 26 U.S.C. 6011)

[T.D. 7008, 34 FR 3666, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55844, Sept. 28, 1979; T.D. 
ATF-251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62252, Oct. 31, 
2005; T.D. TTB-44, 71 FR 16948, Apr. 4, 2006]



Sec.  31.137  Credit by an ATF officer.

    Where the appropriate TTB officer discovers that tax was paid for an 
incorrect class of business for a correct period of liability and 
examination of the incorrect stamp discloses that no additions to the 
tax were collected, he may, where the correct tax (including any 
additions thereto) exceeds the incorrect tax paid, credit the tax paid 
against such correct tax on receipt by him of an amended Form 5630.5, as 
provided in Sec.  31.136, remittance of the difference between the tax 
paid and the correct tax plus any additions thereto, and the incorrect 
stamp. The appropriate TTB officer will issue a correct stamp if the 
additional tax collected is for a current year.

(68A Stat. 791, 808; 26 U.S.C. 6402, 6511)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3665, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. 
ATF-251, 52 FR 19335, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-44, 71 FR 16948, Apr. 4, 
2006]



Sec.  31.138  Receipt for taxes.

    The appropriate TTB officer will issue a receipt to a dealer if cash 
is received as a remittance in payment of special tax (including 
penalties and interest, if any), or for any type of remittance received 
if the dealer requests a receipt.

[T.D. ATF-21, 40 FR 56887, Dec. 5, 1975. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-44, 71 FR 16948, Apr. 
4, 2006]



Sec.  31.139  Credit for incorrect stamp.

    The appropriate TTB officer may credit the tax (including additions 
thereto) paid for an incorrect stamp if the taxpayer has filed an 
amended return on Form 5630.5, as provided in Sec.  31.136, and has, 
with his amended return, surrendered the incorrect stamp for credit and 
submitted a remittance for the difference between the incorrect tax and 
the correct tax. Where the tax (and additions thereto) paid for the 
incorrect stamp surrendered exceeds the amount due, the appropriate TTB 
officer shall advise the dealer to file claim for refund of such excess 
on TTB Form 2635 (5620.8). The applicable provisions of subpart M of 
this part shall govern claims for refund.

(68A Stat. 791, 808; 26 U.S.C. 6402, 6511)

[T.D. 7008, 34 FR 3666, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15 1975, and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]

[[Page 887]]



                      Subpart J_Change of Location



Sec.  31.151  Amended return, Form 5630.5; endorsement on stamp.

    (a)(1) General. Subject to paragraph (a)(2) of this section, a 
dealer who, during the tax year for which special tax was paid (or for 
which registration was completed during the suspension period described 
in Sec.  31.21(b)), removes the business to a place other than that 
specified on the original special tax return on Form 5630.5, shall, 
within 30 days from the date the dealer begins to carry on such business 
at the new location, register the change with TTB by filing a new return 
on Form 5630.5, designated ``Amended Return'', setting forth the time 
when and the place to which such removal was made, and shall surrender 
the special tax stamp with the Form 5630.5 for endorsement of the change 
in location: Provided, That a dealer, whose original return on TTB Form 
5630.5 covered only one location, may deliver the amended return and the 
stamp at any TTB office, or to any TTB officer inspecting the business, 
in lieu of mailing them to TTB: Provided further, That a dealer who 
filed an original return under the provisions of Sec.  31.106(c) shall 
forward with the amended return an attachment showing both the old and 
new address of any place of business which has been relocated, and the 
special tax stamp covering the location from which the business was 
removed. The appropriate TTB officer or the TTB officer receiving such 
return or stamp shall, if the return is submitted within the 30-day 
period, enter the proper endorsement on the stamp and return it to the 
taxpayer.
    (2) If the change of location occurs during the suspension period 
described in Sec.  31.21(b) when no tax is due and no special tax stamp 
is issued, the requirements of paragraph (a)(1) of this section still 
apply, except with regard to surrendering the special tax stamp.
    (b) Caterers. A caterer who sells liquor by the drink at locations 
other than his or her principal place of business shall not be required 
to provide the change of location registration prescribed in paragraph 
(a) of this section for such catering activities provided the records 
prescribed by Sec.  31.55(c) are maintained as required. For a permanent 
change in location of the principal place of business, an amended return 
must be filed in accordance with paragraph (a) of this section.

[T.D. 7008, 34 FR 3666, Mar. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, as amended by T.D. ATF-21, 40 FR 56887, Dec. 5, 1975; T.D. 
ATF-251, 52 FR 19336, May 22, 1987; T.D. ATF-271, 53 FR 17553, May 17, 
1988; T.D. ATF-329, 57 FR 39598, Sept. 1, 1992. Redesignated and amended 
by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62252, 
Oct. 31, 2005]



Sec.  31.152  Failure to register change of address within 30 days.

    (a)Except as otherwise provided in paragraph (b) of this section, a 
dealer who removes his business to a place other than that stated on his 
Form 5630.5, Special Tax Registration and Return, and fails to register 
such removal with TTB within 30 days from the date he begins to carry on 
such business at the new location is required to pay special tax, and 
interest on the amount required to be shown on the return as tax, just 
as if he were engaging in business for the first time (as to liability 
for delinquency penalty see Sec.  31.109). The amount of tax, 
delinquency penalty, and interest to be paid shall be computed as 
provided in Sec. Sec.  31.103, 31.109, and 31.110, respectively.
    (b) During the suspension period described in Sec.  31.21(b) when no 
tax is due and no special tax stamp is issued, a failure to register the 
change of address may result in a penalty under 26 U.S.C. 5603(b).

(68A Stat. 846, 72 Stat. 1347; 26 U.S.C. 7011, 5143)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 
2005]



Sec.  31.153  Certificate in lieu of lost or destroyed special tax stamp.

    The provisions of this part shall apply to certificates in lieu of 
lost or destroyed special tax stamps issued to

[[Page 888]]

taxpayers under the provisions of Sec. Sec.  31.132 and 31.133.

[25 FR 6270, July 2, 1960, unless otherwise noted. Redesignated at 40 FR 
16835, Apr. 15, 1975, and further redesignated and amended by T.D. TTB-
25, 70 FR 19884, Apr. 15, 2005]



              Subpart K_Change in Proprietorship or Control



Sec.  31.161  Sale of business.

    A special tax stamp is a receipt for tax, personal to the one to 
whom issued, and is not transferable from one dealer to another. Where a 
change occurs in the proprietorship of a business for which special tax 
has been paid or for which registration has been completed during the 
suspension period described in Sec.  31.21(b), the successor shall pay 
special tax (or shall register during the suspension period) for such 
business, except as provided in Sec.  31.169.

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 
2005]



Sec.  31.162  Incorporation of business.

    Where an individual or a firm engaged in business requiring payment 
of special tax (or requiring registration during the suspension period 
described in Sec.  31.21(b)) forms a corporation to take over and 
conduct the business, the corporation (a separate legal entity) shall 
pay special tax (or shall register during the suspension period) in its 
own name.

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.163  New corporation.

    Where a new corporation is formed to take over and conduct the 
business of one or more corporations which have paid special tax (or 
which have registered during the suspension period described in Sec.  
31.21(b)), the new corporation shall pay special tax (or shall register 
during the suspension period) in its own name.

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.164  Stockholder continuing business of corporation.

    A special tax stamp held (or a registration completed during the 
suspension period described in Sec.  31.21(b)) by a corporation as a 
dealer in liquors, or as a dealer in beer, cannot cover the same 
business carried on by one or more of its stockholders after dissolution 
of the corporation.

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.165  Change in trade name or style of business.

    A dealer who has paid the special tax (or who has registered during 
the suspension period described in Sec.  31.21(b)) for his business at a 
given location is not required to pay additional special tax (or to 
complete a new registration) by reason of a mere change in the trade 
name or style under which he conducts such business, or by reason of a 
change in management which involves no change in proprietorship of the 
business.

(72 Stat. 1340, 1343, 26 U.S.C. 5111, 5121)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.166  Change of name or increase in capital stock of a corporation.

    Additional special tax (or additional registration during the 
suspension period described in Sec.  31.21(b)) is not required by reason 
of a change of name or increase in the capital stock of a corporation if 
a new corporation is not

[[Page 889]]

created under the laws of the State of incorporation.

(72 Stat. 1340, 1343; 26 U.S.C. 5111, 5121)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.167  Change in ownership of capital stock.

    Additional special tax (or additional registration during the 
suspension period described in Sec.  31.21(b)) is not required by reason 
of the sale or transfer of all or a controlling interest in the capital 
stock of a corporation.

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.168  Change in membership of unincorporated club.

    Additional special tax (or additional registration during the 
suspension period described in Sec.  31.21(b)) is not required of an 
unincorporated club by reason of changes in membership, where such 
changes do not result in the dissolution thereof and the formation of a 
new club.

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.169  Change of control, persons having right of succession.

    Certain persons may, without paying additional special tax, secure 
the right to carry on the same business at the same address for the 
remainder of the tax year for which the special tax was paid, or for 
which registration was made during the suspension period described in 
Sec.  31.21(b). Such persons are:
    (a) The surviving spouse or child, or executor, administrator, or 
other legal representative of a deceased dealer;
    (b) A husband or wife succeeding to the business of his or her 
living spouse;
    (c) A receiver or trustee in bankruptcy, or an assignee for benefit 
of creditors; and
    (d) The partner or partners remaining after death or withdrawal of a 
member of a partnership.

In order to secure such right, the person or persons continuing the 
business shall file with TTB, within 30 days from the date on which the 
successor begins to carry on the business, an amended special tax return 
on Form 5630.5, showing the basis of the succession, and (except if the 
change of control occurs during the suspension period described in Sec.  
31.21(b) when a special tax stamp is not issued) shall surrender the 
unexpired special tax stamp or stamps for endorsement of the change in 
control: Provided, That, if the original return, Form 5630.5, was filed 
under the provisions of Sec.  31.106(b), the person succeeding to the 
business may deliver the amended return and stamp to any TTB office, or 
to any TTB officer inspecting the business, in lieu of mailing them to 
TTB. If the applicant has the right of succession and the return and 
stamp are submitted on time, the appropriate TTB officer or other TTB 
officer receiving them will enter the proper endorsement on the stamp 
and return it to the successor.

(68A Stat. 846, 72 Stat. 1347; 26 U.S.C. 7011, 5143)

[T.D. 7110, 36 FR 8036, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975; as amended at 52 FR 19336, May 22, 1987. Redesignated and 
amended by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 
62253, Oct. 31, 2005]



Sec.  31.170  Failure to perfect right of succession within 30 days.

    (a) Except as otherwise provided in paragraph (b) of this section, a 
person who would have had the privilege of succeeding, as provided in 
Sec.  31.169, to a business for which the special tax had been paid for 
the remainder of the taxable period but failed to register such 
succession within 30 days from the date he began to carry on such 
business is required to pay special tax, and interest on the amount 
required to be shown on the return as tax, just as if he were engaging 
in a new business (as to liability for delinquency penalty see

[[Page 890]]

Sec.  31.109). The amount of tax, delinquency penalty, and interest to 
be paid shall be computed as provided in Sec. Sec.  31.103, 31.109, and 
31.110.
    (b) During the suspension period described in Sec.  31.21(b) when no 
tax is due and no special tax stamp is issued, a failure to register the 
succession may result in a penalty under 26 U.S.C. 5603(b).

(68A Stat. 846, 72 Stat. 1347; 26 U.S.C. 7011, 5143)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated and amended by T.D. 
TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 
2005]



                   Subpart L_Exemptions and Exceptions

        Persons Exempt From Liquor and Beer Dealer Special Taxes



Sec.  31.181  Single sale of liquors or warehouse receipts.

    A single sale of distilled spirits, wines, or beer, or a single sale 
of one or more warehouse receipts for distilled spirits, unattended by 
circumstances showing the person making the sale to be engaged in the 
business, does not subject the vendor to special tax, or to the 
registration requirement during the suspension period described in Sec.  
31.21(b).

(72 Stat. 1340, 1343, 1346; 26 U.S.C. 5111, 5121, 5142)

[25 FR 6270, July 2, 1960, as amended by T.D. 7008, 34 FR 3664, Mar. 1, 
1969. Redesignated at 40 FR 16835, Apr. 15, 1975, as amended by T.D. 
ATF-251, 52 FR 19336, May 22, 1987. Redesignated by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.182  Proprietors of distilled spirits plants selling certain distilled spirits or wines.

    (a) Exemption of proprietor. No proprietor of a distilled spirits 
plant shall be required to pay special tax (or to register during the 
suspension period described in Sec.  31.21(b)) as a wholesale or retail 
dealer in liquors on account of the sale at his principal business 
office as designated in writing to the appropriate TTB officer, or at 
his distilled spirits plant, of distilled spirits or wines which, at the 
time of sale, are stored at his distilled spirits plant, or had been 
removed from such plant to a taxpaid storeroom the operations of which 
are integrated with the operations of such plant and which is contiguous 
or adjacent to, or in the immediate vicinity of, such plant. However, no 
such proprietor shall have more than one place of sale, as to each 
plant, that shall be exempt from special tax or registration under this 
section.
    (b) Place of exemption. Unless the exemption is claimed elsewhere, 
it will be presumed that the exemption is claimed at the plant where the 
spirits or wines are stored. If the proprietor wishes to be exempt from 
payment of special tax (or from registration during the suspension 
period described in Sec.  31.21(b)) with respect to sales at his 
principal business office rather than for sales at his plant, he shall 
notify the appropriate TTB officer of his intention. Such notice shall 
be in writing, on letter size paper and shall be submitted in 
triplicate. On approval, two copies will be returned to the proprietor, 
one to be filed at the principal office, and the original will be 
retained by the appropriate TTB officer. Where the exemption is claimed 
for a place other than the plant, special tax shall be paid (or 
registration shall be completed during the suspension period described 
in Sec.  31.21(b)) at the plant if sales are made thereat.

(72 Stat. 1340; 26 U.S.C. 5113)

[25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.183  Proprietors of bonded wine cellars selling certain wines or wine spirits.

    (a) Exemption of proprietor. No proprietor of a bonded wine cellar 
shall be required to pay special tax (or to register during the 
suspension period described in Sec.  31.21(b)) as a wholesale or retail 
dealer in liquors on account of the sale at his principal business 
office as designated in writing to the appropriate TTB officer, or at 
his bonded wine cellar, of wines or wine spirits which, at the time of 
sale, are stored at his bonded wine cellar, or had been removed

[[Page 891]]

from such bonded wine cellar to a taxpaid storeroom the operations of 
which are integrated with the operations of such bonded wine cellar and 
which is contiguous or adjacent to, or in the immediate vicinity of, 
such bonded wine cellar. However, no such proprietor shall have more 
than one place of sale, as to each bonded wine cellar, that shall be 
exempt from special tax or registration under this section.
    (b) Place of exemption. Unless the exemption is claimed elsewhere, 
it will be presumed that the exemption is claimed at the bonded wine 
cellar where the wines or wine spirits are stored. If the proprietor 
wishes to be exempt from special tax (or from registration during the 
suspension period described in Sec.  31.21(b)) with respect to sales at 
his principal office rather than for sales at his bonded wine cellar, he 
shall notify the appropriate TTB officer of his intention. Such notice 
shall be in writing, on letter size paper and shall be submitted in 
triplicate. On approval two copies will be returned to the proprietor, 
one to be filed at the principal office, and the original will be 
retained by the appropriate TTB officer. Where the exemption is claimed 
for a place other than the bonded wine cellar, special tax shall be paid 
(or registration shall be made during the suspension period described in 
Sec.  31.21(b)) at the bonded wine cellar if sales are made thereat.
    (c) Exception. Where the proprietor of a bonded wine cellar 
consummates sales of wines to other dealers at the purchasers' places of 
business, through a delivery route salesman or otherwise, the proprietor 
of the bonded wine cellar is required to pay special tax (or to register 
during the suspension period described in Sec.  31.21(b)) as a wholesale 
dealer in liquors (or wines) at each place from which he conducts such 
selling operations.

(72 Stat. 1340; 26 U.S.C. 5113)

[25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 62253, Oct. 31, 2005]



Sec.  31.183a  Proprietors of taxpaid wine bottling houses selling certain wines.

    (a) Exemption of proprietor. No proprietor of a taxpaid wine 
bottling house shall be required to pay special tax as a wholesale or 
retail dealer in liquors for a period beginning on or after January 1, 
1988, (including such tax under the transition rule of Sec.  31.103(b)), 
and no such proprietor shall be required to register during the 
suspension period described in Sec.  31.21(b), on account of sales of 
wine transacted at the proprietor's principal business office, as 
designated in writing to the appropriate TTB officer, or at the 
proprietor's taxpaid wine bottling house. However, this exemption 
applies only to wines which, at the time of sale, are either stored at 
the taxpaid wine bottling house or had been removed therefrom to a 
taxpaid storeroom whose operations are integrated with those of the 
taxpaid wine bottling house and which is contiguous or adjacent to, or 
in the immediate vicinity of, the taxpaid wine bottling house. Moreover, 
no such proprietor shall have more than one place of sale, as to each 
taxpaid wine bottling house, that shall be exempt from special tax or 
registration under this section.
    (b) Place of exemption. Unless the exemption is claimed elsewhere, 
it will be presumed that the exemption is claimed at the taxpaid wine 
bottling house where the wines are stored. If the proprietor wishes to 
be exempt from special tax (or from registration during the suspension 
period described in Sec.  31.21(b)) with respect to sales at the 
proprietor's principal office rather than at the proprietor's taxpaid 
wine bottling house, the proprietor shall so notify the appropriate TTB 
officer. The notice shall be in writing, on letter size paper, and shall 
be submitted in triplicate. On approval, two copies will be returned to 
the proprietor, one to be filed at the proprietor's principal office, 
and the original will be retained by the appropriate TTB officer. Where 
the exemption is claimed for a place other than the taxpaid wine 
bottling house, special tax shall be paid (or registration shall be 
completed during the suspension period described in Sec.  31.21(b)) at 
the taxpaid wine bottling house if sales are made there.

[[Page 892]]

    (c) Exception. Where the proprietor of a taxpaid wine bottling house 
consummates sales of wines to other dealers at the purchasers' places of 
business, through a delivery route salesman or otherwise, the proprietor 
of the taxpaid wine bottling house is required to pay special tax (or to 
register during the suspension period described in Sec.  31.21(b)) as a 
wholesale dealer in liquors at each place from which the proprietor 
conducts such selling operations.

(26 U.S.C. 5113)

[T.D. ATF-285, 53 FR 12610, Mar. 28, 1989. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 
62254, Oct. 31, 2005]



Sec.  31.184  Proprietors of breweries selling beer stored at their breweries.

    (a) Exemption of proprietor. No proprietor of a brewery shall be 
required to pay special tax (or to register during the suspension period 
described in Sec.  31.21(b)) as a wholesale or retail dealer in beer on 
account of the sale at his principal business office as designated in 
writing to the appropriate TTB officer, or at his brewery, of beer 
which, at the time of sale, is stored at his brewery, or had been 
removed from such brewery to a taxpaid storeroom the operations of which 
are integrated with the operations of such brewery and which is 
contiguous or adjacent to, or in the immediate vicinity of, such 
brewery. However, no such proprietor shall have more than one place of 
sale, as to each brewery, that shall be exempt from special tax or 
registration under this section.
    (b) Place of exemption. Unless the exemption is claimed elsewhere, 
it will be presumed that the exemption is claimed at the brewery where 
the beer is stored. If the proprietor wishes to be exempt from special 
tax (or from registration during the suspension period described in 
Sec.  31.21(b)) with respect to sales at his principal office rather 
than for sales at his brewery, he shall notify the appropriate TTB 
officer of his intention. Such notice shall be in writing, on letter 
size paper and shall be submitted in triplicate. On approval, two copies 
will be returned to the proprietor, one to be filed at the principal 
office, and the original will be retained by the appropriate TTB 
officer. Where the exemption is claimed for a place other than the 
brewery, special tax shall be paid (or registration shall be completed 
during the suspension period described in Sec.  31.21(b)) at the brewery 
if sales are made thereat.
    (c) Exception. Where the proprietor of a brewery consummates sales 
of beer to dealers at the purchasers' places of business (through 
delivery route salesmen or otherwise), such proprietor is required to 
pay special tax (or to register during the suspension period described 
in Sec.  31.21(b)) as a wholesale dealer in beer at each place from 
which he conducts such selling operations.

(72 Stat. 1340; 26 U.S.C. 5113)

[25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 31, 2005]



Sec.  31.185  Wholesale dealers in liquors consummating sales of wines or beer at premises of other dealers.

    (a) Sales of wines. Any wholesale dealer in liquors (including the 
proprietor of a bonded wine cellar) who has paid special tax (or who has 
registered during the suspension period described in Sec.  31.21(b)) as 
a wholesale dealer in liquors for the place from which he conducts his 
selling operations may consummate sales of wines to other wholesale or 
retail dealers in liquors, or to limited retail dealers, at the 
purchasers' places of business without being required to pay additional 
special tax or register on account of such sales.
    (b) Sales of beer. Any wholesale dealer in liquors who has paid the 
tax (or who has registered during the suspension period described in 
Sec.  31.21(b)) as provided in paragraph (a) of this section may also 
consummate sales of beer to wholesale or retail dealers in beer, to 
wholesale or retail dealers in liquors, or to limited retail dealers, at 
the purchasers' place of business without

[[Page 893]]

being required to pay additional special tax or register on account of 
such sales.

(72 Stat. 1340; 26 U.S.C. 5113)

[25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 31, 2005]



Sec.  31.186  Wholesale dealers in beer consummating sales at premises of other dealers.

    Any dealer (including the proprietor of a brewery) who has paid 
special tax (or who has registered during the suspension period 
described in Sec.  31.21(b)) as a wholesale dealer in beer for the place 
from which he conducts his selling operations may consummate sales of 
beer (but not wines or distilled spirits) to other dealers at the 
purchasers' places of business without being required to pay additional 
special tax or register on account of such sales.

(72 Stat. 1340; 26 U.S.C. 5113)

[25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 31, 2005]



Sec.  31.187  Hospitals.

    Hospitals and similar institutions furnishing liquors to patients 
are not required to pay special tax, or to register during the 
suspension period described in Sec.  31.21(b), provided no specific or 
additional charge is made for the liquors so furnished.

[25 FR 6270, July 2, 1960. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 31, 2005]



Sec.  31.187a  Limited retail dealers.

    Limited retail dealers, as specified in Sec.  31.27, are not 
required to pay special tax, or to register during the suspension period 
described in Sec.  31.21(b).

[T.D. ATF-271, 53 FR 17553, May 17, 1988. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19886 Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, 
Oct. 31, 2005]



Sec.  31.187b  Coordination of taxes under 26 U.S.C. 5111 and 5121.

    Effective January 1, 1988, special tax is not imposed concurrently 
under both 26 U.S.C. 5111(a) (relating to wholesale liquor sales) and 26 
U.S.C. 5111(b) (relating to wholesale beer sales), nor under both 26 
U.S.C. 5121(a) (relating to retail liquor sales) and 26 U.S.C. 5121(b) 
(relating to retail beer sales), with respect to a taxpayer's activities 
at a single place during a single tax year. (See Sec.  31.72.)

(26 U.S.C. 5113(g), 5123(c))

[T.D. ATF-285, 54 FR 12611, Mar. 28, 1989. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19886 Apr. 15, 2005]

             Persons Who Are Not Dealers in Liquors or Beer



Sec.  31.188  Persons making casual sales.

    Certain persons making casual sales of liquors are not liquor or 
beer dealers within the meaning of the statute; they are as follows:
    (a) Administrators, executors, receivers, and other fiduciaries who 
receive distilled spirits, wines, or beer in their fiduciary capacities 
and sell such liquors in one parcel, or at public auction in parcels of 
not less than 20 wine gallons (75.7 liters);
    (b) Creditors who receive distilled spirits, wines, or beer as 
security for, or in payment of, debts and sell such liquors in one 
parcel, or at a public auction in parcels of not less than 20 wine 
gallons (75.7 liters);
    (c) Public officers or court officials who levy on distilled 
spirits, wines, or beer under order or process of any court or 
magistrate and sell such liquors in one parcel, or at public auction in 
parcels of not less than 20 wine gallons (75.7 liters); or,
    (d) A retiring partner, or representative of a deceased partner, who 
sells distilled spirits, wines, or beer to the incoming or remaining 
partner, or partners, of a partnership.

Persons making such sales are not required to pay special tax (or to 
register during the suspension period described

[[Page 894]]

in Sec.  31.21(b)) or keep the records or reports required of dealers in 
subpart O of this part.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1340 (26 U.S.C. 5113))

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-34, 41 FR 46860, Oct. 26, 1976. Redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 
31, 2005]



Sec.  31.189  Agents, auctioneers, brokers, etc., acting on behalf of others.

    Certain persons may sell liquors as agents or employees of others, 
or receive and transmit orders therefor to a dealer, without being 
considered liquor or beer dealers on account of such activities; they 
are as follows:
    (a) Auctioneers who merely sell liquors at auction on behalf of 
others,
    (b) Agents or brokers who merely solicit orders for liquors in the 
name of a principal, but neither stock nor deliver the liquors for which 
orders are taken,
    (c) Employees who merely sell liquors on behalf of their employers, 
and
    (d) Retail dealers in liquors or retail dealers in beer who merely 
receive and transmit to a wholesale dealer orders for liquors or beer to 
be billed, charged, and shipped to customers by such wholesale dealers.

Such persons, who have no property rights in the liquors or beer sold, 
may make collections for their principals and receive commissions for 
their services, or guarantee the payment of accounts, without being 
required to pay special tax or to register during the suspension period 
described in Sec.  31.21(b). In all such cases, however, the principal 
is required to pay special tax (or to register during the suspension 
period described in Sec.  31.21(b)) at each place where sales are 
consummated, unless he is exempt therefrom under the provisions of this 
subpart.

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-34, 41 FR 46860, Oct. 26, 1976. Redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 
31, 2005]



Sec.  31.190  Apothecaries or druggists selling medicines and tinctures.

    Apothecaries and druggists who use wines or spirituous liquors for 
compounding medicines and in making tinctures which are unfit for use 
for beverage purposes are not required to pay special tax (or to 
register during the suspension period described in Sec.  31.21(b)) as 
dealers in liquors by reason of the sale of such compounds or tinctures 
for nonbeverage purposes.

(72 Stat. 1328; 26 U.S.C. 5025)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-34, 41 FR 46860, Oct. 26, 1976. Redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 
31, 2005]



Sec.  31.191  Persons selling products unfit for beverage use.

    (a) Vendors not deemed dealers in liquors or beer. No person selling 
or offering for sale for nonbeverage purposes products classed as unfit 
for beverage use under the provisions of Sec.  19.58 of this chapter 
shall be deemed, solely by reason of such sales, to be a dealer in 
liquors.
    (b) Restrictions. Any person who sells or offers for sale any 
nonbeverage products for use, or for sale for use, for beverage 
purposes, or who sells any of such products under circumstances from 
which it might reasonably appear that it is the intention of the 
purchaser to procure the same for sale or use for beverage purposes, 
shall pay special tax (or shall register during the suspension period 
described in Sec.  31.21(b)) as a wholesale or retail dealer in liquors 
or as a wholesale or retail dealer in beer, as the case may be.

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
as amended by T.D. ATF-379, 61 FR 31426, June 20, 1996. Redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005; T.D. TTB-36, 70 FR 62254, Oct. 
31, 2005]



Sec.  31.192  Retail dealer selling in liquidation his entire stock.

    No retail dealer in liquors or retail dealer in beer, selling in 
liquidation his entire stock of liquors in one parcel, or in parcels 
embracing not less than his entire stock of distilled spirits, of wines, 
or of beer, which parcels may contain a combination of any or all such 
liquors, to any other dealer shall be deemed to be a wholesale dealer in 
liquors or a wholesale dealer in beer, as the case may be, by reason of 
such sale or sales. A retail dealer making such

[[Page 895]]

sale or sales is not required to keep records or submit reports thereof.

(72 Stat. 1340; 26 U.S.C. 5113)



Sec.  31.193  Persons returning liquors for credit, refund, or exchange.

    No retail dealer in liquors or beer, or other person, shall be 
deemed to be a wholesale dealer in liquors or a wholesale dealer in 
beer, as defined in this part, by reason of his bona fide return of 
distilled spirits, wines, or beer, as the case may be, to the dealer 
from whom purchased (or to the successor of such vendor's business or 
line of merchandise) for credit, refund, or exchange, and the giving of 
such credit, refund or exchange shall not be deemed to be a purchase 
within the meaning of 26 U.S.C. 5117 of Sec.  31.211 of this part. 
Except in the case of wholesale dealers in liquors required to keep 
records of their transactions under Sec. Sec.  31.225 and 31.226, or 
retail dealers required to keep records under Sec.  31.234, persons 
returning liquors as provided herein are not required to keep records or 
submit reports of such transactions.

(72 Stat. 1340, 1343; 26 U.S.C. 5113, 5117)

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-48, 44 FR 55844, Sept. 28, 1979; T.D. ATF-116. 
47 FR 51571, Nov. 16, 1982. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19886, Apr. 15, 2005]



                    Subpart M_Refund of Special Taxes



Sec.  31.201  Claims.

    Claims for abatement of assessment of special tax (including 
penalties and interest), or for refund of an overpayment of special tax 
(including interest and penalties), shall be filed on Form 2635 
(5620.8). Claims shall be filed with the appropriate TTB officer. Each 
claim shall set forth in detail each ground on which it is made and 
shall contain facts sufficient to apprise the Alcohol and Tobacco Tax 
and Trade Bureau of the exact basis thereof. If the claim is for refund 
of special tax for which a stamp was issued, such stamp shall be 
attached to and made a part of the claim, or the claimant shall include 
in the claim evidence satisfactory to the Alcohol and Tobacco Tax and 
Trade Bureau that the stamp cannot be submitted.

[T.D. ATF-251, 52 FR 19336, May 22, 1987. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19886, Apr. 15, 2005]



Sec.  31.202  Time limit on filing of claim.

    No claim for the refund of a special tax or penalty shall be allowed 
unless presented within 3 years next after the payment of such tax or 
penalty.

(68A Stat. 808; 26 U.S.C. 6511)



Sec.  31.203  Discontinuance of business.

    A dealer who for any reason discontinues business is not entitled to 
refund for the unexpired portion of the fiscal year for which the 
special tax stamp was issued.

(72 Stat. 1346; 26 U.S.C. 5142)



    Subpart N_Restrictions Relating to Purchases of Distilled Spirits



Sec.  31.211  Unlawful purchases of distilled spirits.

    (a) General. Except as otherwise provided in paragraphs (b) and (c) 
of this section, it is unlawful for any dealer to purchase distilled 
spirits for resale from any person other than:
    (1) A dealer who has paid special tax as a wholesale dealer in 
liquors at the place where the distilled spirits are purchased;
    (2) A wholesale dealer whose place of business comes within the 
exemptions provided by Sec.  31.151 for changes in location and Sec.  
31.169 for changes in control;
    (3) The proprietor of a distilled spirits plant who is exempt from 
special tax as a dealer at the place where the distilled spirits are 
purchased;
    (4) A retail liquor store operated by a State, a political 
subdivision thereof, or the District of Columbia, which is not required 
to pay special tax as a wholesale dealer in liquors as provided in Sec.  
31.31;
    (5) A person not required to pay special tax as a wholesale liquor 
dealer, as provided in Sec. Sec.  31.188 through 31.190 and 31.192 
through 31.193.
    (b) Suspension of tax. During the period of suspension of special 
(occupational) tax described in Sec.  31.21(b), it is unlawful for any 
dealer to purchase

[[Page 896]]

distilled spirits for resale from any person other than:
    (1) A wholesale dealer (including a State, a political subdivision 
thereof, the District of Columbia, and a distilled spirits plant) who is 
required to keep records under Sec. Sec.  31.221 through 31.233 at the 
place where the distilled spirits are purchased;
    (2) A retail liquor store operated by a State, a political 
subdivision thereof, or the District of Columbia; or
    (3) A person not required to register as a wholesale liquor dealer, 
as provided in Sec. Sec.  31.188 through 31.190, Sec.  31.192, and Sec.  
31.193.
    (c) Special provisions for limited retail dealers. A limited retail 
dealer may purchase distilled spirits for resale from a retail dealer in 
liquors.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1343; sec. 1905, Pub. L. 94-455, 90 
Stat. 1819 (26 U.S.C. 5117))

[T.D. ATF-42, 42 FR 8370, Feb. 10, 1977. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19886, Apr. 15, 2005; T.D. TTB-36, 70 FR 
62254, Oct. 31, 2005]



     Subpart O_Prescribed Records and Reports, and Posting of Signs

                 Wholesale Dealers' Records and Reports



Sec.  31.221  General requirements as to distilled spirits.

    Except as provided in Sec. Sec.  31.223 and 31.224, every wholesale 
dealer in liquors shall keep daily records of the physical receipt and 
disposition of distilled spirits, as prescribed in Sec. Sec.  31.225 and 
31.226. When required in writing by the appropriate TTB officer, dealers 
shall also prepare and file a monthly summary report totaling the daily 
receipts and disposition of distilled spirits as prescribed in Sec.  
31.230.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended 
(26 U.S.C. 5114, 5555))

[T.D. ATF-116, 47 FR 51571, Nov. 16, 1982. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19886, Apr. 15, 2005]



Sec.  31.222  Requirements as to wines and beer.

    Each wholesale dealer in liquors who receives wines, or wines and 
beer, and each wholesale dealer in beer shall keep at his place of 
business a complete record of all wines and beer received, showing (a) 
the quantities thereof, (b) from whom received, and (c) the receiving 
dates. This record, which must be kept for a period of not less than 
three years as prescribed in Sec.  31.237, shall consist of all purchase 
invoices or bills covering wines and beer received or, at the option of 
the dealer, a book record containing all of the required information. 
Wholesale dealers are not required to prepare or submit reports to the 
appropriate TTB officer of transactions relating to wines and beer.

(Approved by the Office of Management and Budget under control number 
1512-0353)

(68A Stat. 731 (26 U.S.C. 6001); sec. 201, Pub. L. 85-859, 72 Stat. 
1342, 1345, 1348, 1395 (26 U.S.C. 5114, 5124, 5146, 5555))

[T.D. ATF-50, 43 FR 20494, May 12, 1978, as amended by T.D. ATF-116, 47 
FR 51571, Nov. 16, 1982; T.D. ATF-172, 49 FR 14942, Apr. 16, 1984. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, 19886, Apr. 15, 
2005]



Sec.  31.223  Records to be kept by States, political subdivisions thereof, or the District of Columbia.

    The provisions of this subpart relative to the maintenance of 
records and the submission of reports shall not apply to States, 
political subdivisions thereof, or the District of Columbia, or any 
liquor stores operated by such entities that maintain and make available 
for inspection by appropriate TTB officers records which will enable 
such officers to verify receipts of wines and beer and trace readily all 
distilled spirits received and disposed of by them: Provided, That such 
States, political subdivisions thereof, or the District of Columbia, and 
liquor stores operated by them, shall, on request of the appropriate TTB 
officer, furnish such transcripts, summaries, and copies of their 
records as he shall require.

(72 Stat. 1342, 1348, 1395; 26 U.S.C. 5114, 5146, 5555)

[Redesignated and amended by T.D. TTB-25, 70 FR 19884, 19886, Apr. 15, 
2005; T.D. TTB-44, 71 FR 16948, Apr. 4, 2006]



Sec.  31.224  Records to be kept by proprietors of distilled spirits plants.

    Wholesale liquor dealer operations conducted by proprietors of 
distilled

[[Page 897]]

spirits plants shall be recorded and reported in accordance with the 
applicable provisions of Part 19 of this chapter.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended (26 U.S.C. 5114); 
sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207))

[T.D. ATF-62, 44 FR 71693, Dec. 11, 1979. Redesignated by T.D. TTB-25, 
70 FR 19884, Apr. 15, 2005]



Sec.  31.225  Records of receipt.

    (a) Information required. Every wholesale dealer in liquors shall 
maintain a daily record of the physical receipt of each individual lot 
or shipment of distilled spirits, which record shall show (1) name and 
address of consignor, (2) date of receipt (to include date of inventory 
for recorded gains), (3) brand name, (4) name of producer or bottler, 
except that this may be omitted if the dealer keeps available for 
inspection a separate list or record identifying the producer or bottler 
with the brand name, (5) kind of spirits, except that this may be 
omitted if the dealer keeps available for inspection a separate list or 
record identifying ``kind'' with the brand name, (6) quantity actually 
received (showing number of packages, if any, and number of cases by 
size of bottle, and explaining any difference from the quantity shown on 
the commercial papers covering the shipment), and (7) package 
identification numbers of containers of alcohol received for repackaging 
for industrial use pursuant to subpart R of this part. Additional 
information may also be shown.
    (b) Form of record. The record prescribed by paragraph (a) of this 
section will be a part of the accounting system and shall consist of 
consignors' invoices (or, where such invoices are not available on the 
day the shipment is received, memorandum receiving records prepared on 
the day of receipt of distilled spirits, to include records of inventory 
for recorded gains), and credit memorandums covering distilled spirits 
returned to the dealer, which contain all required information.

(Approved by the Office of Management and Budget under control number 
1512-0353)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended 
(26 U.S.C. 5114, 5555))

[T.D. ATF-46, 42 FR 44758, Sept. 6, 1977, as amended by T.D. ATF-116, 47 
FR 51571, Nov. 16, 1982; T.D. ATF-172, 49 FR 14942, Apr. 16, 1984. 
Redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.226  Records of disposition.

    (a) Information required. Every wholesale dealer in liquors shall 
prepare a daily record of the physical disposition of each individual 
lot of distilled spirits, which record shall show (1) name and address 
of consignee, (2) date of disposition (to include date of discovery in 
the case of casualty, theft or recorded inventory losses), (3) brand 
name, (4) kind of spirits, except that this may be omitted if the dealer 
keeps available for inspection a separate list or record identifying 
``kind'' with the brand name, (5) number of packages, if any, and number 
of cases by size of bottle, and (6) package identification numbers of 
containers of alcohol repackaged for industrial use pursuant to subpart 
R of this part. Additional information may also be shown.
    (b) Form of record. The record prescribed by paragraph (a) of this 
section will be part of the accounting system and shall consist of 
wholesale dealer's invoices (or, where such invoices are not available 
at the time the spirits are removed, memorandum shipping records 
prepared at the time of removal of the distilled spirits, to include 
date of discovery in the case of casualty, theft or recorded inventory 
losses) which contain all required information.

(Approved by the Office of Management and Budget under control number 
1512-0353)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended 
(26 U.S.C. 5114, 5555))

[T.D. ATF-46, 42 FR 44759, Sept. 6, 1977, as amended by T.D. ATF-116, 47 
FR 51571, Nov. 16, 1982; T.D. ATF-172, 49 FR 14942, Apr. 16, 1984. 
Redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]

[[Page 898]]



Sec.  31.227  Canceled or corrected records.

    Entries on the records of receipt and disposition prescribed by 
Sec. Sec.  31.225 and 31.226 shall not be erased or obliterated. 
Correction or deletion of any entry shall be accomplished by drawing a 
line through such entry, and making appropriate correction or 
explanation. If a wholesale dealer in liquors voids an invoice for any 
reason, the file copy prescribed in Sec.  31.235 will be marked 
``Cancelled'' and be filed as provided in that section; any remaining 
copy of the voided invoice will be destroyed or similarly cancelled and 
filed. If a new invoice is prepared, its serial number will be cross 
referenced on any retained copies of the cancelled invoice.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended (26 U.S.C. 5114))

[T.D. 7014, 34 FR 8912, June 4, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, as amended by T.D. ATF-116, 47 FR 51572, Nov. 16, 1982. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, 19886, Apr. 15, 
2005]



Sec.  31.228  Previously prescribed or approved records of receipt and disposition.

    A wholesale dealer in liquors may continue to use records of receipt 
and disposition in a format previously prescribed, or approved for him, 
provided he gives written notice of such intent to the appropriate TTB 
officer. Such records shall show the information required by paragraph 
(a) of Sec.  31.225 or paragraph (a) of Sec.  31.226, as applicable. 
Such records shall be preprinted with the name and address of the 
wholesale dealer. Each sheet or page shall bear a preprinted serial 
number, or page serial numbers may be affixed in unbroken sequence 
during the preparation or processing of the records. A serial number 
shall not be duplicated within a period of 6 months.

(72 Stat. 1342; 26 U.S.C. 5114)

[T.D. 7014, 34 FR 8912, June 4, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, and further redesignated and amended by T.D. TTB-25, 70 FR 
19884, 19886, Apr. 15, 2005]



Sec.  31.229  Variations in format, or preparation, of records.

    (a) Authorization. The appropriate TTB officer may approve 
variations in the type and format of records of receipt and disposition, 
or in the methods of preparing such records, where it is shown that 
variations from the requirements are necessary in order to use data 
processing equipment, other business machines, or existing accounting 
systems, and will not (1) unduly hinder the effective administration of 
this part, (2) jeopardize the revenue, or (3) be contrary to any 
provision of law. A dealer who proposes to employ such a variation shall 
submit written application so to do to the appropriate TTB officer. Such 
application shall describe the proposed variations and set forth the 
need therefor. The appropriate TTB officer will determine the need for 
the variations, and whether approval thereof would unduly hinder the 
effective administration of this part or result in jeopardy to the 
revenue. Variations in type and format of records or methods of 
preparation shall not be employed until approval is received from the 
appropriate TTB officer.
    (b) Requirements. Any information required by this part to be kept 
or filed is subject to the provisions of law and this part relating to 
required records and reports, regardless of the form or manner in which 
kept or filed.

(Approved by the Office of Management and Budget under control number 
1512-0357)

[T.D. 7014, 34 FR 8912, June 4, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-172, 49 FR 14942, Apr. 16, 1984. 
Redesignated and amended by T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 
2005]



Sec.  31.230  Monthly summary report.

    (a) Requirement. Every wholesale dealer in liquors shall, when 
required, submit to the appropriate TTB officer, a monthly summary 
report of the total quantities of all distilled spirits received and 
disposed of daily during the month (including the date of discovery for 
theft, casualty and inventory losses and inventory gains). This report 
will be posted by the wholesaler on a daily basis. If there were no 
receipts or disposals of distilled spirits during the month, the report 
will be marked ``No Transactions During Month.'' This report will be 
filed not later than the 15th day of the month following the report 
period, and a copy retained by the dealer. Upon receipt of an 
application

[[Page 899]]

the appropriate TTB officer may authorize a dealer to post the report 
less frequently until otherwise notified. The appropriate TTB officer's 
authorization will specify the intervals at which the posting will be 
accomplished, but not less frequently than monthly.
    (b) Form of report. When required, the monthly summary report may be 
prepared in a format which most conveniently adapts itself to the 
dealer's accounting and recordkeeping systems. In addition to any other 
information shown therein, the report will include the daily totals of 
all distilled spirits received and disposed of, including dispositions 
caused by inventory, casualty or theft losses and receipts caused by 
recorded gains in inventory; and
    (1) Daily totals of all bottled spirits received and disposed of, 
recorded separately by wine gallons, or liters,
    (2) Daily totals of all bulk spirits in packages received and 
disposed of, recorded separately by proof gallons.
    (c) Declaration. When required to be filed, the monthly summary 
report will bear the following declaration signed by the dealer or an 
authorized agent:

    I declare under the penalties of perjury that I have examined this 
report and to the best of my knowledge and belief, it is true, correct, 
and complete, and is supported by true, correct, and complete records 
which are available for inspection.

    (d) When the monthly summary report is not required by the 
appropriate TTB officer to be filed, every wholesale dealer in distilled 
spirits is still required to maintain and make available for review by 
appropriate TTB officers:
    (1) Records of receipt, required by Sec.  31.225;
    (2) Records of disposition, required by Sec.  31.226; and
    (3) Any other supporting information or documents regarding the 
receipt and disposition of distilled spirits which have a direct bearing 
in determining the completeness and accuracy of the accounting and 
recordkeeping systems.

(Approved by the Office of Management and Budget under control number 
1512-0353)

(Act of August 16, 1954, 68A Stat. 749 (26 U.S.C. 6065); sec. 201, Pub. 
L. 85-859, 72 Stat. 1342, as amended, 1348, as amended, 1395, as amended 
(26 U.S.C. 5114, 5146, 5555))

[T.D. ATF-116, 47 FR 51572, Nov. 16, 1982, and amended by T.D. ATF-172, 
49 FR 14942, Apr. 16, 1984. Redesignated and amended by T.D. TTB-25, 70 
FR 19884, 19887, Apr. 15, 2005; T.D. TTB-44, 71 FR 16948, Apr. 4, 2006]



Sec.  31.231  Conversion between metric and U.S. units.

    When liters are converted to wine gallons, the quantity in liters 
shall be multiplied by 0.264172 to determine the equivalent quantity in 
wine gallons. Cases containing the same quantity of spirits of the same 
proof in metric bottles may be converted to U.S. units by multiplying 
the liters in one case by the number of cases to be converted, as 
follows:
    (a) If the conversion from liters to U.S. units is made before 
multiplying by the number of cases, the quantity in U.S. units shall be 
rounded to the sixth decimal.
    (b) If the conversion is made after multiplying by the number of 
cases, the quantity in U.S. units shall be rounded to the nearest 
hundredth.

Once converted to wine gallons, the proof gallons of spirits in cases 
shall be determined as provided in 27 CFR 30.52.

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 
981, as amended))

[T.D. ATF-198, 50 FR 8542, Mar. 1, 1985. Redesignated by T.D. TTB-25, 70 
FR 19884, Apr. 15, 2005]



Sec.  31.232  Discontinuance of business.

    When a wholesale dealer in liquors, who is required under Sec.  
31.230 to file a monthly summary report, discontinues business, a 
monthly summary report marked ``Final'' shall be filed covering 
transactions through the date of discontinuance.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended 
(26 U.S.C. 5114, 5555))

[T.D. ATF-115, 47 FR 51572, Nov. 16, 1982. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 2005]

[[Page 900]]



Sec.  31.233  Requirements when a wholesale dealer in liquors maintains a retail department.

    (a) When a wholesale dealer in liquors maintains a separate 
department on the premises for the retailing of distilled spirits, and 
the retail sales of distilled spirits normally represent 90 percent or 
more of the volume of distilled spirits sold, the dealer may 
``constructively'' receive all distilled spirits in the retail 
department. Sales involving a wholesale transaction may be 
``constructively'' sold through the wholesale department.
    (1) Receipts. In lieu of maintaining and preparing the records 
required by Sec. Sec.  31.225 and 31.226, a wholesale dealer may 
constructively receive all distilled spirits in its retail department. 
In this case, the receiving document will serve as a receipt for 
(through) the wholesale department and a disposition (transfer) to the 
retail department. The receiving document will be maintained by the 
retail department, as required by Sec.  31.234.
    (2) Dispositions. In lieu of the records required by Sec.  31.226, a 
wholesale dealer may constructively sell distilled spirits from its 
retail department to other dealers. The sales invoice or bill will be 
filed in the wholesaler's disposition records and will serve as a record 
of receipt from the retail department and a record of disposition to 
another dealer.
    (b) Except as provided in paragraph (a) of this section, a wholesale 
dealer shall prepare and maintain the required records of receipt and 
disposition as prescribed in Sec. Sec.  31.225 and 31.226. Transfers 
between the wholesale and retail departments will be treated in the same 
manner as any other transaction involving the wholesale department.
    (c) When required by Sec.  31.230, a wholesale dealer shall prepare 
and file the monthly summary report of actual or constructive receipts 
and dispositions of all distilled spirits.
    (d) Wholesale and retail departments need not be physically 
separated.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1345, as amended, 
1395, as amended (26 U.S.C. 5114, 5124, 5555))

[T.D. ATF-116, 47 FR 51572, Nov. 16, 1982. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 2005]

                         Retail Dealer's Records



Sec.  31.234  Requirements for retail dealers.

    (a) Records of receipt. All retail dealers shall keep at their place 
of business complete records of all distilled spirits, wines, or beer 
received showing (1) the quantities thereof, (2) from whom received, and 
(3) the receiving dates. The appropriate TTB officer may, pursuant to an 
application authorize the records to be maintained at another business 
premises under the control of the same dealer when it is determined that 
such maintenance will not cause undue inconvenience to appropriate TTB 
officers desiring to examine such records. Records of receipts shall 
consist of all purchase invoices or bills covering distilled spirits, 
wines, and beer received, or, at the option of the dealer, a book record 
containing all of the required information.
    (b) Records of sales of 20 wine gallons (75.7 liters) or more. Every 
retail dealer who makes sales of distilled spirits, of wines, or of beer 
in quantities of 20 wine gallons (75.7 liters) or more to the same 
person at the same time shall prepare and keep a record of each such 
sale, which shall show (1) the date of sale, (2) the name and address of 
the purchaser, (3) the kind and quantity of each kind of liquors sold, 
and (4) the serial numbers of all full cases of distilled spirits 
included in the sale. Each entry on such record shall be supported by a 
corresponding delivery receipt (which may be executed on a copy of the 
sales slip) signed by the purchaser or his agent.

(Approved by the Office of Management and Budget under control number 
1512-0354)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1345, 1348, 1395, 1413 (26 U.S.C. 
5124, 5146, 5555, 5691))

[T.D. 7130, 36 FR 12853, July 8, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-34, 41 FR 46861, Oct. 26, 1976. 
Redesignated and amended by T.D. ATF-116, 47 FR 51572, Nov. 16, 1982; 
T.D. ATF-172, 49 FR 14942, Apr. 16, 1984. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 2005; T.D. TTB-44, 71 FR 
16948, Apr. 4, 2006]

[[Page 901]]

                      Files of Records and Reports



Sec.  31.235  Filing.

    The required records of receipt and disposition of all distilled 
spirits, as prescribed in Sec. Sec.  31.225 and 31.226, may be filed in 
accordance with the wholesaler's regular accounting and recordkeeping 
systems. The required records shall consist of the dealer's own file 
copies of the receiving or shipping invoices.
    (a) Dealers may file records of receipt and disposition in 
accordance with their own filing system as long as the filing system 
systematically and accurately accounts for all receipts and dispositions 
of distilled spirits.
    (b) The required records of receipt and disposition will be filed 
not later than one business day following the date the transaction 
occurred.
    (c) Supporting documents for receipts and dispositions, such as 
delivery receipts and bills of lading, may be filed in accordance with 
the wholesaler's regular accounting and recordkeeping practices.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended 
(26 U.S.C. 5114, 5555))

[T.D. ATF-116, 47 FR 51573, Nov. 16, 1982. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 2005]



Sec.  31.236  Place of filing.

    Prescribed records of receipt and disposition and monthly summary 
reports required by Sec.  31.230 will be maintained by transaction or 
reporting date, at the dealer's place of business. The appropriate TTB 
officer may, pursuant to an application, authorize files, or an 
individual file, to be maintained at another business location under the 
control of the dealer, if the alternative location does not cause undue 
inconvenience to appropriate TTB officers desiring to examine the files.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended (26 U.S.C. 5114))

[T.D. ATF-116, 47 FR 51573, Nov. 16, 1982. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19887 Apr. 15, 2005; T.D. TTB-44, 71 FR 16948, 
Apr. 4, 2006]

                           Period of Retention



Sec.  31.237  Retention of records and files.

    All records prescribed by this part, documents or copies of 
documents supporting these records, and file copies of reports 
submitted, shall be retained by the person required to keep the 
documents for a period of not less than three years, and during this 
period shall be available, during business hours, for inspection and 
copying by appropriate TTB officers. Furthermore, the appropriate TTB 
officer may require these records to be kept for an additional period of 
not more than three years in any case where he determines retention 
necessary or advisable. Any records, or copies thereof, containing any 
of the information required by this part to be prepared, wherever kept, 
shall also be made available for inspection and copying.

(68A Stat. 731 (26 U.S.C. 6001); sec. 201, Pub. L. 85-859, 72 Stat. 
1342, 1345, 1348, 1395 (26 U.S.C. 5114, 5124, 5146, 5555))

[T.D. ATF-50, 43 FR 20494, May 12, 1978. Redesignated by T.D. ATF-116, 
47 FR 51573, Nov. 16, 1982, and further redesignated and amended by T.D. 
TTB-25, 70 FR 19884, 19887 Apr. 15, 2005; T.D. TTB-44, 71 FR 16948, Apr. 
4, 2006]



Sec.  31.238  Photographic copies of records.

    (a) General. Dealers may record, copy, or reproduce records required 
by this part. Dealers may use any process which accurately reproduces 
the original record, and which forms a durable medium for reproducing 
and preserving the origninal record.
    (b) Copies of records treated as original records. Whenever records 
are reproduced under this section, the produced records will be 
preserved in conveniently accessible files, and provisions will be made 
for examining, viewing, and using the reproduced record the same as if 
it were the original record, and it will be treated and considered for 
all purposes as though it were the original record. All provisions of 
law and regulations applicable to the original record are applicable to 
the reproduced record. As used in this section, ``original record'' 
means the record required by this part to be maintained or preserved by 
the dealer, even though it

[[Page 902]]

may be an executed duplicate or other copy of the document.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5555))

[T.D. ATF-116, 47 FR 51573, Nov. 16, 1982. Redesignated by T.D. TTB-25, 
70 FR 19884, Apr. 15, 2005]



Sec. Sec.  31.239-31.241  [Reserved]

Subpart P [Reserved]



          Subpart Q_Reuse and Possession of Used Liquor Bottles



Sec.  31.261  Refilling of liquor bottles.

    No person who sells, or offers for sale, distilled spirits, or agent 
or employee of such person, shall (a) place in any liquor bottle any 
distilled spirits whatsoever other than those contained in such bottle 
at the time of closing under the provisions of 26 U.S.C. Chapter 51, or 
(b) by the addition of any substance whatsoever to any liquor bottle, in 
any manner alter or increase any portion of the original contents 
contained in such bottle at the time of closing under the provisions of 
26 U.S.C. Chapter 51.

(72 Stat. 1374; 26 U.S.C. 5301)

[T.D. 6954, 33 FR 6814, May 4, 1968. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-48, 44 FR 55844, Sept. 28, 1979; T.D. 
ATF-206, 50 FR 23953, June 7, 1985. Redesignated by T.D. TTB-25, 70 FR 
19884, Apr. 15, 2005]



Sec.  31.262  Possession of refilled liquor bottles.

    No person who sells, or offers for sale, distilled spirits, or agent 
or employee of such person, shall:
    (a) Possess any liquor bottle in which any distilled spirits have 
been placed in violation of the provisions of Sec.  31.261, or
    (b) Possess any liquor bottle, any portion of the contents of which 
has been altered or increased in violation of the provisions of Sec.  
31.261.

(72 Stat. 1374; 26 U.S.C. 5301)

[Redesignated and amended by T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 
2005]



Sec.  31.263  Possession of used liquor bottles.

    The possession of used liquor bottles by any person other than the 
person who empties the contents thereof is prohibited except for the 
following:
    (a) The owner or occupant of any premises on which such bottles have 
been lawfully emptied may assemble the same on such premises--
    (1) For delivery to a bottler or importer on specific request of 
such bottler or importer;
    (2) For destruction, either on the premises on which the bottles are 
emptied or elsewhere, including disposition for purposes which will 
result in the bottles being rendered unusable as bottles; or
    (3) In the case of unusual or distinctive bottles, for disposition 
or sale as collectors' items or for other purposes not involving the 
packaging of any product for sale.
    (b) Any person may possess, offer for sale, or sell unusual or 
distinctive bottles for purposes not involving the packaging of any 
product for sale.
    (c) Any person may assemble used liquor bottles for the purpose of 
recycling or reclaiming the glass or other approved liquor bottle 
material.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-114, 47 FR 43950, Oct. 5, 1982. Redesignated by T.D. TTB-25, 
70 FR 19884, Apr. 15, 2005]



Sec.  31.264  Mixed cocktails.

    A retail liquor dealer who mixes cocktails or compounds any 
alcoholic liquors in advance of sale, as provided in Sec.  31.293, may 
not use liquor bottles in which distilled spirits have been previously 
packaged for the storage of the mixture pending sale.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301))

[T.D. ATF-62, 44 FR 71694, Dec. 11, 1979. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 2005]



           Subpart R_Packaging of Alcohol for Industrial Uses



Sec.  31.271  Requirements and procedure.

    On compliance with the provisions of Part 19 of this chapter 
applicable to

[[Page 903]]

persons repackaging distilled spirits, a dealer in liquor engaged in the 
business of supplying alcohol for industrial use may obtain bulk alcohol 
on which the tax has been paid or determined and repackage the alcohol 
for sale for industrial use in containers of a capacity in excess of 1 
wine gallon and not more than 5 wine gallons.
    (a) Qualification procedure. Application for registration, Form 
5110.41, and application for an operating permit, Form 5110.25, modified 
in accordance with instructions of the appropriate TTB officer, shall be 
executed and filed with the appropriate TTB officer. No alcohol shall be 
repackaged until the approved application for registration and the 
operating permit are received.
    (b) Operations. Repackaging operations shall be conducted in 
accordance with the bottling and packaging requirements of Part 19 of 
this chapter. Packaging and labeling operations may be carried on 
without supervision of an TTB officer unless the appropriate TTB officer 
requires supervision.
    (c) Records. The dealer shall keep records, daily, showing the bulk 
alcohol received, dumped for packaging, packaged, and disposed of, 
including the name and address of each consignor and consignee. The 
dealer shall prepare a monthly report on Form 5110.28 of bulk alcohol 
received, packaged, and disposed of. Reports on Form 5110.28 shall be 
submitted to the appropriate TTB officer not later than the 15th day of 
the month succeeding the period for which rendered. Records, documents, 
or copies of documents supporting the records, and copies of reports 
submitted to the appropriate TTB officer shall be filed and retained as 
prescribed in Sec. Sec.  31.236 and 31.237.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1343, as amended, 1358, as amended, 
1360, as amended (26 U.S.C. 5116, 5205, 5206))

[T.D. ATF-62, 44 FR 71694, Dec. 11, 1979, as amended by T.D. ATF-206, 50 
FR 23953, June 7, 1985. Redesignated and amended by T.D. TTB-25, 70 FR 
19884, 19887 Apr. 15, 2005]



Sec.  31.272  Labeling.

    Every dealer packaging alcohol for industrial use shall affix to 
each package filled a label bearing in conspicuous print the words 
``Alcohol'' and ``For Industrial Use,'' the proof of the alcohol, the 
capacity of the container, and the packaging dealer's name and address. 
The dealer may incorporate in the label other appropriate statements; 
however, such statements shall not obscure or contradict the data 
required hereby to be shown on such labels.

(72 Stat. 1343, 1360; 26 U.S.C. 5116, 5206)



     Subpart S_Distilled Spirits for Export With Benefit of Drawback



Sec.  31.281  General.

    A state, or political subdivision thereof, or a person holding a 
wholesale liquor dealer's basic permit issued under Part 1 of this 
chapter, may export bottled taxpaid distilled spirits with benefit of 
drawback to the extent provided in Sec.  28.171 of this chapter. The 
marking of cases, preparation of notice of shipment on Form 5110.30, the 
removal and exportation of the distilled spirits, and the filing of 
claims by the processor of the spirits shall be in accordance with the 
applicable provisions of Parts 19 and 28 of this chapter.

[T.D. ATF-206, 50 FR 23953, June 7, 1985, as amended by T.S. 9112, 69 FR 
3830, Jan. 27, 2004. Redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 
2005]



Sec.  31.283  Records.

    The provisions of subpart O of this part regarding records and 
reports relating to liquors for domestic use are hereby extended to 
export transactions permitted under the provisions of this subpart.

[T.D. 7002, 34 FR 1592, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr. 
15, 1975, and further redesignated by T.D. TTB-25, 70 FR 19884, Apr. 15, 
2005]



                         Subpart T_Miscellaneous



Sec.  31.291  Destruction of marks and brands on wine containers.

    The dealer who empties any cask, barrel, keg, or other bulk 
container of wine shall scrape or obliterate from the empty container 
all marks, brands, tags, or labels placed thereon under the provisions 
of part 24 of this chapter as

[[Page 904]]

evidence of the payment or determination of the tax on the wine removed 
therein from the bonded wine cellar.

[25 FR 6270, July 2, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975, 
and amended by T.D. ATF-344, 58 FR 40355, July 28, 1993. Redesignated by 
T.D. TTB-25, 70 FR 19884, Apr. 15, 2005]



Sec.  31.292  Wine bottling.

    Each person desiring to bottle, package, or repackage taxpaid wines 
shall, before carrying on such operations, apply and receive permission 
from the appropriate TTB officer, as required under part 24 of this 
chapter. The decanting of wine by caterers or other retail dealers for 
table or room service, banquets, and similar purposes shall not be 
considered as ``bottling,'' if the decanters are not furnished for the 
purpose of carrying wine away from the area where served.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5352))

[T.D. ATF-62, 44 FR 71694, Dec. 11, 1979, as amended by T.D. ATF-344, 58 
FR 40355, July 28, 1993. Redesignated and amended by T.D. TTB-25, 70 FR 
19884, 19887 Apr. 15, 2005]



Sec.  31.293  Mixing cocktails in advance of sale.

    A retail liquor dealer shall not mix cocktails, or compound any 
alcoholic liquors in advance of sale, except for the purpose of filling, 
for immediate consumption on the premises, orders received at the bar or 
in the expectation of the immediate receipt of orders. (For further 
provisions, see Sec.  31.264.)

(Sec. 805, Pub. L. 96-39, 93 Stat. 277 (26 U.S.C. 5002))

[T.D. ATF-62, 44 FR 71694, Dec. 11, 1979. Redesignated and amended by 
T.D. TTB-25, 70 FR 19884, 19887, Apr. 15, 2005]

[[Page 905]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Material Approved for Incorporation by Reference
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 907]]

            Material Approved for Incorporation by Reference

                      (Revised as of April 1, 2008)

  The Director of the Federal Register has approved under 5 U.S.C. 
552(a) and 1 CFR Part 51 the incorporation by reference of the following 
publications. This list contains only those incorporations by reference 
effective as of the revision date of this volume. Incorporations by 
reference found within a regulation are effective upon the effective 
date of that regulation. For more information on incorporation by 
reference, see the preliminary pages of this volume.


27 CFR (PARTS 1 TO 39)

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY
                                                                  27 CFR


American Society for Testing and Materials

  100 Barr Harbor Drive, West Conshohocken, PA 
  19428-2959, Telephone (610) 832-9585, FAX (610) 
  832-9555
ASTM D 362-75 Standard Specification for                    21.6; 21.132
  Industrial Grade Toluene.
ASTM D 439-79 Standard Specifications for                   21.6; 21.110
  Automotive Gasoline.
ASTM E 100-72 (1978) Standard Specification for                    30.24
  ASTM Hydrometers.


AOAC International (Association of Official Analytical Chemists)

  481 N. Frederick Ave., Suite 500, Gaithersburg, 
  MD 20877-2407 Telephone: (301) 924-7077
AOAC Method 11.003-11.004, Color in White Wine,                   24.241
  AOAC Official Methods of Analysis, 13th Ed., 
  1980.


Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury

  Available From: Superintendent of Documents, 
  U.S. Government Printing Office, Washington, DC 
  20402, Telephone 202-512-1800
Gauging Manual Embracing Instructions and Tables                 30.1(c)
  for Determining Quantity of Distilled Spirits by 
  Proof and Weight, ATF Publication 5110.6 
  (November 1978).

[[Page 909]]



                    Table of CFR Titles and Chapters




                      (Revised as of April 1, 2008)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 100--
                199)
        II  Office of Management and Budget Circulars and Guidance 
                (200--299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300-- 
                399)
        VI  Department of State (Parts 600--699)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1880--1899)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)

[[Page 910]]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--99)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600-- 3699)
    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
      XXXV  Office of Personnel Management (Parts 4500--4599)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)

[[Page 911]]

       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)
     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
      XCIX  Department of Defense Human Resources Management and 
                Labor Relations Systems (Department of Defense--
                Office of Personnel Management) (Parts 9900--9999)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--99)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)

[[Page 912]]

        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)

[[Page 913]]

     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1303--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)

[[Page 914]]

         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board, Department of 
                Commerce (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board, 
                Department of Commerce (Parts 500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

[[Page 915]]

        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  Bureau of Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

[[Page 916]]

        IV  Bureau of Immigration and Customs Enforcement, 
                Department of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millenium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)

[[Page 917]]

        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                HousingCommissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)

[[Page 918]]

       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)

[[Page 919]]

        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)

[[Page 920]]

        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)

[[Page 921]]

        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvmeent, 
                Department of Education [Reserved]
        XI  National Institute for Literacy (Parts 1100--1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                301--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

[[Page 922]]

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)

[[Page 923]]

       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10010)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)

[[Page 924]]

         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)

[[Page 925]]

         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

[[Page 926]]

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 927]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of April 1, 2008)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX

[[Page 928]]

Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs and Border Protection Bureau              19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII

[[Page 929]]

  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, II
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                5, III, LXXVII; 14, VI; 
                                                  48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3

[[Page 930]]

  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102

[[Page 931]]

  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A,
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  6, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection Bureau            19, I
  Federal Emergency Management Agency             44, I
  Immigration and Customs Enforcement Bureau      19, IV
  Immigration and Naturalization                  8, I
  Transportation Security Administration          49, XII
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B, 2, 
                                                  XXIV; 2424
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration and Naturalization                    8, I
Immigration Review, Executive Office for          8, V
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
   Archives and Records Administration
[[Page 932]]

Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                2, XXVII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employee Benefits Security Administration       29, XXV
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50

[[Page 933]]

  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
  Copyright Royalty Board                         37, III
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Millenium Challenge Corporation                   22, XIII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI

[[Page 934]]

Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Privacy and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III

[[Page 935]]

Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection Bureau            19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 937]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations that were 
made by documents published in the Federal Register since January 1, 
2001, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, 1973-1985, and 1986-2000,'' published in 
11 separate volumes.

                                  2001

27 CFR
                                                                   66 FR
                                                                    Page
Chapter I
1.1 (a) amended....................................................42733
1.31 Amended.......................................................42733
1.35 Amended.......................................................42733
1.50 Amended.......................................................42733
1.51 Amended.......................................................42733
1.52 Amended.......................................................42733
1.57 Amended.......................................................42733
4 Cross references amended..................................38549, 42733
4.21 (d)(1)(i) and (e)(1)(i) amended...............................37578
    (e)(5) amended.................................................58944
4.22 (b)(5) amended................................................37578
4.91 Amended.......................................................49280
5.2 Amended.................................................38549, 42733
7.4 Amended.................................................38549, 42733
9.53 (c)(6) revised; (c)(7) removed................................50565
9.64 (c) introductory text and (1) revised.........................50565
9.74 (c)(43) and (44) revised......................................11542
9.91 Revised.......................................................11542
9.162 Added........................................................29479
9.164 Added........................................................23592
9.166 Added........................................................29698
9.167 Added........................................................18545
9.168 Added........................................................11539
9.170 Added........................................................26791
9.172 Added........................................................13430
12.3 (a) amended...................................................42733
13.2 Added.........................................................19085
13.11 Amended......................................................19085
13.20 Added........................................................19085
13.21 (a) amended; (b) revised.....................................19085
13.23 Amended......................................................19085
13.25 (a) and (b) amended..........................................19085
13.26 (a) and (b) amended..........................................19085
13.27 (c) amended..................................................19085
    (a) and (b) revised............................................19086
13.41 Amended......................................................19085
13.42 Amended......................................................19085
13.43 (a) and (b) amended..........................................19085
13.44 Revised......................................................19086
13.45 (a) and (b) amended..........................................19086
13.52 Amended......................................................19085
13.53 Amended......................................................19085
13.54 (a) and (b) amended...................................19085, 19086
13.61 (b) amended..................................................19085
13.62 Revised......................................................19086
13.71 Revised......................................................19086
13.72 (b) amended..................................................19086
13.74 Amended......................................................19086
13.92 Amended......................................................19086
17.2 (a) amended; (b) revised.......................................5470
17.3 (a) introductory text, (b) and (c) amended.....................5470
17.5 Amended.......................................................38549
17.6 Amended........................................................5470
17.7 Added..........................................................5470
17.11 Amended.......................................................5470
17.54 Amended.......................................................5471
17.55 Amended.......................................................5470
17.92 Amended.......................................................5471
17.101 Amended......................................................5471
17.105 (b) amended..................................................5471
17.107 Amended......................................................5471
17.108 (c) amended..................................................5471
17.111 (a) introductory text and (b) amended........................5471
17.112 Amended......................................................5471
17.113 Amended......................................................5471
17.114 Amended......................................................5471

[[Page 938]]

17.121 (d) amended..................................................5470
    (b) amended.....................................................5471
17.122 Amended................................................5470, 5471
17.125 (a) and (b) amended..........................................5471
17.126 (a) amended..................................................5471
17.131 Amended......................................................5471
17.134 Amended......................................................5470
17.136 Amended......................................................5471
17.141 Amended......................................................5471
17.142 (a) amended..................................................5471
17.143 Amended......................................................5471
17.144 Amended......................................................5471
17.145 Amended......................................................5471
17.147 (a) amended..................................................5471
17.161 Amended......................................................5470
17.166 (c) amended..................................................5471
17.167 (b) amended..................................................5471
17.168 (a) amended...........................................5471, 42736
17.170 Amended......................................................5471
17.171 Amended......................................................5470
17.182 Amended......................................................5470
17.183 (a) amended..................................................5470
    (b) and (c) amended.............................................5471
18 Authority citation revised......................................29481
18.11 Amended................................................5471, 29482
18.12 Added.........................................................5471
18.13 (a) introductory text amended; (b) revised....................5471
18.14 (a) introductory text and (b) amended.........................5472
18.15 Amended.......................................................5472
18.16 (a) amended...................................................5471
    (a) amended; (b) revised........................................5472
18.17 Amended.......................................................5472
18.19 Amended.......................................................5472
18.21 Amended.......................................................5472
18.22 (b) amended...................................................5472
18.23 Amended......................................................42736
18.24 Amended.......................................................5472
18.26 Amended.......................................................5472
18.27 (a) introductory text amended.................................5472
18.39 Added........................................................29482
18.40 Added........................................................29482
18.41 Added........................................................29482
18.42 Added........................................................29482
18.43 Added........................................................29482
18.52 (b) amended...................................................5471
18.56 Revised......................................................29482
18.61 (a) and (b) amended...........................................5472
18.65 Revised.......................................................5472
19.3 Amended.........................................38549, 42733, 42736
19.161 (c) amended.................................................42733
19.163 (f) amended.................................................42733
19.164 Amended.....................................................42733
19.169 Amended.....................................................42736
19.207 Added.......................................................29482
19.460 (a) amended.................................................12854
19.485 (a)(1) and (2) amended......................................38549
19.524 (a)(1), (b)(1) and (3) amended..............................38549
19.911 (c) amended.................................................42733
19.950 (f) amended.................................................42733
19.1005 (c)(2) amended.............................................12854
20.3 Amended.........................................38549, 42733, 42736
20.11 Amended.......................................................5473
20.20 Added.........................................................5473
20.21 (a) amended...................................................5473
    (a) amended; (b) revised........................................5474
20.22 (a)(1) revised; (a)(2), (3), (4), (b)(1), (2), (3) and (c) 
        amended.....................................................5474
20.23 Amended.......................................................5474
20.24 Amended.......................................................5474
20.25 Revised.......................................................5474
20.26 Amended.......................................................5474
20.27 Amended.......................................................5474
20.28 (a) and (b) amended...........................................5474
20.37 Amended.......................................................5474
20.41 (c) introductory text amended.................................5474
20.42 (a)(11) and (b) amended.......................................5474
20.43 (a) introductory text amended.................................5474
20.44 Introductory text amended..............................5474, 42733
20.45 (c)(1) revised................................................5474
20.48 (b) and (c) amended...........................................5474
20.50 Amended.......................................................5474
20.51 Introductory text amended..............................5474, 42733
20.52 Amended......................................................42733
20.53 Amended.......................................................5474
20.56 (a)(1), (b), (c)(1) and (3) amended...........................5474
20.57 (b)(1) and (2) amended........................................5474
20.60 Amended.......................................................5474
20.61 Amended.......................................................5474
20.62 (a) amended...................................................5474
20.63 (a) amended...................................................5474
20.64 Amended.......................................................5474
20.66 Amended......................................................42736
20.68 (a) introductory text amended.................................5474
20.72 (b) amended...................................................5474
20.74 Amended.......................................................5474
20.79 Amended.......................................................5474
20.80 Amended.......................................................5474
20.82 Amended.......................................................5474
20.91 (a) and (c) amended...........................................5474
20.92 (a) and (b) amended; (c) revised..............................5474

[[Page 939]]

20.95 (a) amended...................................................5474
20.100 (a) introductory text amended; (b) revised...................5474
20.103 Amended......................................................5474
20.111 Amended......................................................5474
20.117 (d)(2)(iv) and (v) amended...................................5474
20.132 (c) amended..................................................5474
20.133 (a) introductory text and (b) amended........................5474
20.134 (c) amended..................................................5474
    (b)(1)(ii) amended..............................................5475
20.144 Amended......................................................5474
20.147 (b) amended..................................................5475
20.161 (c)(3) amended...............................................5474
20.163 (c)(2) amended...............................................5474
20.164 (e) amended..................................................5474
20.166 Amended......................................................5474
20.170 Amended......................................................5474
20.178 (c)(1) amended...............................................5474
20.181 (a) amended..................................................5474
20.189 (e) amended..................................................5475
20.190 Revised......................................................5475
20.202 (a) amended..................................................5474
20.204 (b) amended..................................................5474
20.205 Introductory text and (f) amended............................5474
20.211 (b) amended..................................................5474
20.213 (a) and (b) amended..........................................5474
20.234 (b)(3) amended...............................................5474
20.235 (c) amended..................................................5474
20.241 Amended......................................................5475
20.242 (b) amended..................................................5475
20.244 Amended......................................................5475
20.245 Amended......................................................5474
20.246 Amended......................................................5474
20.251 (a) amended..................................................5475
20.252 (a) and (b) amended..........................................5474
20.261 Amended......................................................5474
20.262 (c) and (d) amended..........................................5474
20.263 (c) and (d) amended..........................................5474
20.265 (a) introductory text and (b) amended........................5474
20.267 (a) amended..................................................5475
21.2 (a) amended; (b) revised.......................................5475
21.3 (b) and (d) amended; (c) revised...............................5475
21.5 Introductory text amended......................................5475
21.7 Added..........................................................5475
21.11 Amended.......................................................5475
21.21 (b) and (c) amended...........................................5475
21.31 (b) and (c) amended...........................................5475
21.32 (a) amended..................................................12854
21.33 (c) amended...................................................5475
    (a) revised....................................................12854
21.34 (c) amended...................................................5475
21.56 (a) amended...................................................5475
21.65 (a) amended............................................5475, 12854
21.76 (a) amended..................................................12854
21.91 Amended................................................5475, 12854
21.95 Redesignated as 21.96; new 21.95 added.......................12854
21.96 Redesignated as 21.97; new 21.96 redesignated from 21.95.....12854
21.97 Redesignated as 21.98; new 21.97 redesignated from 21.96.....12854
21.98 Redesignated as 21.99; new 21.98 redesignated from 21.97.....12854
21.99 Redesignated as 21.100; new 21.99 redesignated from 21.98....12854
21.100 Redesignated as 21.101; new 21.100 redesignated from 21.99 
                                                                   12854
21.101 Redesignated as 21.102; new 21.101 redesignated from 21.100
                                                                   12854
21.102 Redesignated as 21.103; new 21.102 redesignated from 21.101
                                                                   12854
21.103 Redesignated as 21.104; new 21.103 redesignated from 21.102
                                                                   12854
21.104 Redesignated as 21.105; new 21.104 redesignated from 21.103
                                                                   12854
21.105 Redesignated as 21.106; new 21.105 redesignated from 21.104
                                                                   12854
21.106 Redesignated as 21.107; new 21.106 redesignated from 21.105
                                                                   12854
21.107 Redesignated as 21.108; new 21.107 redesignated from 21.106
                                                                   12854
21.108 Redesignated as 21.109; new 21.108 redesignated from 21.107
                                                                   12854
21.109 Redesignated as 21.210; new 21.109 redesignated from 21.108
                                                                   12854
21.110 Redesignated as 21.111; new 21.110 redesignated from 21.109
                                                                   12854
21.111 Redesignated as 21.112; new 21.111 redesignated from 21.110
                                                                   12854

[[Page 940]]

21.112 Redesignated as 21.113; new 21.112 redesignated from 21.111
                                                                   12854
21.113 Redesignated as 21.114; new 21.113 redesignated from 21.212
                                                                   12854
21.114 Redesignated as 21.115; new 21.114 redesignated from 21.213
                                                                   12854
21.115 Redesignated as 21.116; new 21.115 redesignated from 21.214
                                                                   12854
21.116 Redesignated as 21.117; new 21.116 redesignated from 21.215
                                                                   12854
21.117 Redesignated as 21.118; new 21.117 redesignated from 21.216
                                                                   12854
21.118 Redesignated as 21.119; new 21.118 redesignated from 21.117
                                                                   12854
21.119 Redesignated as 21.120; new 21.119 redesignated from 21.118
                                                                   12854
21.120 Redesignated as 21.121; new 21.120 redesignated from 21.119
                                                                   12854
21.121 Redesignated as 21.122; new 21.121 redesignated from 21.120
                                                                   12854
21.122 Redesignated as 21.123; new 21.122 redesignated from 21.121
                                                                   12854
21.123 Redesignated as 21.124; new 21.123 redesignated from 21.122
                                                                   12854
21.124 Redesignated as 21.125; new 21.124 redesignated from 21.123
                                                                   12854
21.125 Redesignated as 21.126; new 21.125 redesignated from 21.124
                                                                   12854
21.126 Redesignated as 21.127; new 21.126 redesignated from 21.125
                                                                   12854
21.127 Redesignated as 21.128; new 21.127 redesignated from 21.126
                                                                   12854
21.128 Redesignated as 21.129; new 21.128 redesignated from 21.127
                                                                   12854
21.129 Redesignated as 21.130; new 21.129 redesignated from 21.128
                                                                   12854
21.130 Redesignated as 21.131; new 21.130 redesignated from 21.129
                                                                   12854
21.131 Redesignated as 21.132; new 21.131 redesignated from 21.130
                                                                   12854
21.132 Redesignated as 21.133; new 21.132 redesignated from 21.131
                                                                   12854
21.133 Redesignated from 21.132....................................12854
21.141 Footnote 1 amended...........................................5475
    Table amended..................................................12854
21.151 Amended.....................................................12854
22.3 Amended.........................................38550, 42733, 42736
22.11 Amended.......................................................5475
22.20 Added.........................................................5476
22.21 (a) amended; (b) revised......................................5476
    (a) amended; eff. 5-1-01.......................................13015
22.22 (a)(1) through (4), (b)(1), (2) and (3) amended; (c) revised
                                                                    5476
22.23 Amended.......................................................5476
22.24 (a) and (b) amended...........................................5476
22.25 Amended.......................................................5476
    Removed; new 22.25 redesignated from 22.26.....................13015
22.26 Amended.......................................................5476
    Redesignated as 22.25; new 22.26 redesignated from 22.27.......13015
22.27 (a) and (b) amended...........................................5476
    Redesignated as 22.26..........................................13015
22.36 Amended.......................................................5476
22.39 (c) amended...................................................5476
22.41 (b) amended...................................................5476
22.42 (a)(11) and (b) amended.......................................5476
22.43 (a) introductory text amended.................................5476
    (a)(2) and (b) revised.........................................13015
22.44 Introductory text amended..............................5476, 42733
22.45 (c)(1) amended................................................5476
22.50 Amended.......................................................5476
22.51 Introductory text amended..............................5476, 42733
22.52 Amended......................................................42733
22.53 Amended.......................................................5476
22.57 (a)(1), (b), (c)(1) and (3) amended...........................5476
22.58 (b)(1) and (2) amended........................................5476
22.59 Amended......................................................13015
22.60 (b) removed; (c) and (d) redesignated as new (b) and (c).....13015
22.61 Amended.......................................................5476
22.62 Amended................................................5476, 13015
22.63 (a) amended...................................................5476

[[Page 941]]

    (a) designation, heading and (b) removed.......................13015
22.64 Amended.......................................................5476
22.66 Amended......................................................42736
22.68 (a) amended...................................................5476
    (a) designation, heading and (b) removed.......................13015
22.71--22.82 (Subpart E) Removed...................................13015
22.72 (b) amended...................................................5476
22.74 Amended.......................................................5476
22.79 Amended.......................................................5476
22.80 Amended.......................................................5476
22.82 Amended.......................................................5476
22.102 (c) introductory text amended................................5476
22.103 Amended......................................................5476
22.111 (c)(3) amended...............................................5476
22.113 (a) and (c) amended..........................................5476
22.122 (a) amended..................................................5476
22.124 (b) amended..................................................5476
22.125 (a) introductory text and (c) amended........................5476
22.142 (a), (c) and (d) amended.....................................5476
22.152 (b) removed; (c) redesignated as new (b)....................13015
22.154 (b)(3) amended...............................................5476
22.161 (a) and (d) amended..........................................5476
22.162 Amended......................................................5476
22.164 (a) amended..................................................5476
22.171 (a) amended..................................................5476
22.172 (b) amended..................................................5476
22.174 Amended......................................................5476
22.175 Amended......................................................5476
22.176 (c) amended..................................................5476
24.4 Amended..................................38550, 42734, 42736, 58944
24.114 Amended.....................................................42737
24.135 (a) amended.................................................29483
24.178 (b)(3) and (4) revised......................................37578
24.257 (a) revised.................................................58944
24.272 (a)(1), (b)(1) and (3) amended..............................38550
25.3 (a) amended; (b) revised.......................................5478
25.4 Amended.......................................................42737
25.6 Added..........................................................5478
25.11 Amended.......................................................5478
25.22 Amended.......................................................5478
25.23 (b) introductory text and (c) amended.........................5478
25.24 (a)(7) amended................................................5478
25.25 (a) amended...................................................5478
25.31 (a) amended...................................................5478
25.42 Introductory text and (c) amended.............................5478
25.51 Revised.......................................................5478
25.52 (a)(1) through (5), (b)(1), (2) and (3) amended...............5478
    (d) revised.....................................................5479
25.61 (a) and (c) amended...........................................5478
    (b) amended.....................................................5479
25.62 (b) amended...................................................5479
25.63 Amended.......................................................5478
25.64 Amended.......................................................5478
25.65 Amended.......................................................5479
25.66 (c)(1) and (d) amended........................................5478
25.68 (b) amended...................................................5478
25.71 (a)(2) and (b)(1) amended.....................................5478
    (a)(1) amended..................................................5479
25.72 (b)(2) amended................................................5478
25.74 Amended.......................................................5478
25.75 Amended.......................................................5478
25.77 Amended.......................................................5478
25.78 Amended.......................................................5479
25.81 (e) amended...................................................5478
    (b) introductory text and (c) introductory text amended.........5479
25.85 Amended.......................................................5479
25.91 (c) and (d) amended...........................................5478
    (a) amended.....................................................5479
25.95 Amended.......................................................5478
25.96 Amended.......................................................5478
25.101 (a) introductory text and (b) amended........................5478
    (b) revised.....................................................5479
25.103 Amended......................................................5478
25.104 Amended......................................................5478
25.105 Amended......................................................5478
25.114 (a) amended..................................................5478
25.127 Amended......................................................5478
25.141 (b)(2) amended...............................................5479
25.142 (c) amended..................................................5478
    (b)(2) amended..................................................5479
25.144 (b) amended..................................................5478
25.152 (a) amended..................................................5478
25.155 Amended......................................................5478
25.158 (c) amended..................................................5478
25.165 (b)(3) and (e) amended.......................................5478
    (b)(1) amended..................................................5479
    (a)(1), (b)(1) and (3) amended.................................38550
25.167 (a) amended..................................................5478
25.173 (a) amended..................................................5478
25.182 Amended......................................................5478
25.184 (d) amended..................................................5478
    (c) amended.....................................................5479
25.196 (b) amended..................................................5478
25.213 (c) amended..................................................5478
    (b) amended.....................................................5479
25.222 (a) and (b) amended..........................................5479
25.223 (a) amended..................................................5478
    (b) revised.....................................................5479
25.225 (b)(2) amended.........................................5478, 5479
25.251 (c) amended..................................................5478
25.252 (c) amended..................................................5478

[[Page 942]]

25.272 (a) introductory text and (b) through (e) amended............5478
25.273 Revised......................................................5480
25.274 (a) amended..................................................5478
25.276 (b) amended..................................................5479
    (c) amended.....................................................5480
25.277 Amended......................................................5478
25.281 (c) amended..................................................5478
25.282 (b), (c), (d) and (f) amended................................5478
    (e) revised.....................................................5480
25.283 (d) amended..................................................5478
    (e) amended.....................................................5480
25.284 (b) amended..................................................5478
    (d) amended.....................................................5480
    (d) corrected..................................................17809
25.285 (a) amended..................................................5480
25.286 (a) amended..................................................5479
25.291 (c)(2)(ii) and (d)(3) amended................................5478
25.294 (c) amended..................................................5478
25.297 (b)(4) amended...............................................5478
    (a) and (b) amended.............................................5480
25.300 (a), (c) and (d)(3) amended..................................5478
26 Redesignated from Part 250......................................38550
26.3 Amended.......................................................38550
26.11 Amended......................................................38550
26.30 Amended......................................................38550
26.35 (a) amended..................................................38550
26.45 Amended......................................................38551
26.47 Amended......................................................38550
26.50 (a) and (b) amended..........................................38551
26.51 (c) amended..................................................38551
26.55 Amended......................................................38551
26.68a Amended.....................................................38551
26.70 Amended......................................................38551
26.71 (a) amended..................................................38551
26.72 Amended......................................................38551
26.73 Amended......................................................38551
26.74 Amended......................................................38551
26.77 (c) amended..................................................38551
26.79 (a) amended..................................................38551
26.80 (a) amended..................................................38551
26.81 (a) amended..................................................38551
26.82 Amended......................................................38551
26.87 Amended......................................................38551
26.95 (b) amended..................................................38551
26.96b Amended.....................................................38551
26.104 (b) amended.................................................38551
26.105a Amended....................................................38551
26.107 Amended.....................................................38550
26.108 (a), (b) and (c) amended....................................38551
26.109 (a), (b) and (c) amended....................................38551
26.110 Amended.....................................................38551
26.112 (a), (c)(2), (d)(2) and (e) amended.........................38551
26.112a (a)(1), (b)(2) and (3) amended.............................38551
26.113 (c) through (f) amended.....................................38551
26.114 Amended.....................................................38552
26.115 Amended.....................................................38552
26.163 Amended.....................................................38552
26.165 (a)(2) and (3) amended......................................38552
26.173 (b)(4) amended..............................................38552
26.193 (a) and (b) amended.........................................38552
26.194 (a) and (b) amended.........................................38552
26.196 Amended.....................................................38552
26.199a (a) amended................................................38551
26.199b Amended....................................................38551
26.200 (a) amended.................................................38552
26.204 Amended.....................................................38552
26.205 (a)(8) introductory text, (iv) and (b) amended..............38552
26.211 Amended.....................................................38552
26.220 (a) and (b) amended.........................................38552
26.221 (c) amended.................................................38552
26.225 Amended.....................................................38552
26.260 Amended.....................................................38552
26.261 Amended.....................................................38552
26.262 (a) and (c) amended.........................................38552
26.263 Amended.....................................................38552
26.264 Amended.....................................................38552
26.265 Amended.....................................................38552
26.272 Amended.....................................................38552
26.273a Introductory text amended..................................38552
26.291 (a), (b)(1), (2) and (c) amended............................38552
26.301 Amended.....................................................38552
26.302 (a) and (b) amended.........................................38552
26.303 Amended.....................................................38552
26.309 (b)(4) and (c)(2)(viii) amended.............................38552
26.318 Amended.....................................................38552
29 Redesignated from Part 170; heading revised; authority citation 
        revised....................................................42737
29.42 Amended......................................................42737
29.45 Amended......................................................42737
29.47 (c) amended..................................................42737
29.49 (c) amended..................................................42737
29.59 Amended......................................................42737
30.11 Amended.......................................................5481
30.21 (c) revised...................................................5481
30.24 (a) and (b) amended...........................................5481
30.31 (b) amended...................................................5481
30.36 Amended.......................................................5481
30.43 Amended.......................................................5481
30.51 Amended.......................................................5481

[[Page 943]]

                                  2002

27 CFR
                                                                   67 FR
                                                                    Page
Chapter I
4 Amended..........................................................30797
4.1--4.4 (Subpart A) Undesignated cross-references and center 
        heading removed............................................62857
4.5 Added..........................................................62857
4.91 Added.........................................................11918
    Amended........................................................56481
4.101 (Subpart K) Added............................................62858
5.2 Amended........................................................30797
    Revised........................................................62858
5.71 (Subpart I) Added.............................................62858
7.4 Amended........................................................30798
    Revised........................................................62858
7.81 (Subpart I) Added.............................................62858
9.107 (b) and (c) revised..........................................56484
9.173 Added.........................................................9193
9.174 Added........................................................72839
9.176 Added........................................................77924
13.1 Amended.......................................................62858
13.3 Added.........................................................62858
13.51 Amended......................................................62858
13.61 (a) text redesignated as (a)(1); new (a)(1) heading and (2) 
        added......................................................62859
13.101 (Subpart G) Added...........................................62859
19.3 Amended.......................................................30798
19.524 (a)(1), (b)(1) and (3) amended..............................30798
19.538 (a)(1)(iii) amended.........................................30798
20.3 Amended................................................17938, 30798
20.21 (a) amended..................................................17938
20.22 (a)(3) removed; (a)(4) redesignated as new (a)(3)............17938
20.26 Removed......................................................17938
20.43 (a)(2) and (b) revised.......................................17938
20.58 Amended......................................................17939
20.59 (b) removed; (c) and (d) redesignated as new (b) and (c).....17939
20.61 Amended......................................................17939
20.62 (a) designation, heading and (b) removed.....................17939
20.68 (b) removed; (c) redesignated as new (b).....................17939
20.71--20.82 (Subpart E) Removed...................................17939
20.175 (c) revised.................................................17939
    Corrected......................................................20868
20.177 (b) amended.................................................17939
20.232 (b) removed; (c) redesignated as new (b)....................17939
20.241 Amended.....................................................17939
22.3 Amended.......................................................30798
22.171 (b) amended.................................................30798
24.4 Amended.......................................................30798
24.272 (a)(1), (b)(1) and (3) amended..............................30798
25.165 (a)(1), (b)(1) and (3) amended..............................30798
26.112a (a)(1), (b)(1) and (3) amended.............................30798
26.267 (a) amended.................................................30798
27 Redesignated from Part 251......................................30799
27.3 Amended.......................................................30799
27.11 Amended......................................................30799
27.31 Amended......................................................30799
27.40 (c) amended..................................................30799
27.44 Amended......................................................30799
27.74 Amended......................................................30799
27.76 (c)(3) amended...............................................30799
27.77 (a), (b)(1), (2), (3)(iii) and (d) amended...................30799
27.120 Amended.....................................................30799
27.133 Amended.....................................................30799
27.138 Introductory text amended...................................30799
27.172 Amended.....................................................30799
27.185 (b) amended.................................................30799
27.208 Amended.....................................................30799

                                  2003

27 CFR
                                                                   68 FR
                                                                    Page
Chapter I
Chapter I Heading revised...........................................3747
4.21 (h)(2) introductory text revised..............................39455
4.22 (b)(5) revised................................................39455
4.25 Removed; new 4.25 redesignated from 4.25a.....................39455
4.25a Redesignated as 4.25.........................................39455
4.30 (a) amended...................................................39455
4.35 Removed; new 4.35 redesignated from 4.35a.....................39455
4.35a Redesignated as 4.35.........................................39455
4.39 (h) revised; eff. 6-2-03......................................10103
4.64 (i) revised; eff. 6-2-03......................................10103
4.72 Removed; new 4.72 redesignated from 4.73......................39455
4.73 Redesignated as 4.72..........................................39455
5.42 (b)(8) revised; eff. 6-2-03...................................10104
5.65 (d) revised; eff. 6-2-03......................................10105
7.29 (e) revised; eff. 6-2-03......................................10104
7.54 (e) revised; eff. 6-2-03......................................10106
9.66 (c)(9) amended; (c)(10) and (11) revised; (c)(12) through 
        (24) redesignated as (c)(14) through (26); new (c)(12) and 
        (13) added.................................................67370
9.128 Added........................................................39835

[[Page 944]]

9.142 Added........................................................61748

                                  2004

27 CFR
                                                                   69 FR
                                                                    Page
Chapter I
1--30 (Subchapter A) Heading revised................................3829
4.5 Amended.........................................................3829
4.32 (d) removed...................................................33573
5.2 Amended.........................................................3829
5.32 (b)(6) removed................................................33574
7.22 (b)(5) removed................................................33574
9.50 Heading, (a), (b) introductory text and (c) introductory text 
        revised; (d) added.........................................20825
9.56 (c)(24) and (25) revised; (c)(26) and (27) added..............38836
9.161 Added; eff. 4-26-04...........................................8564
9.163 Added........................................................38833
9.169 Added........................................................41754
9.171 Added........................................................38836
9.178 Added........................................................25833
9.179 Added........................................................70892
9.180 Added........................................................69527
9.183 Added........................................................71374
13.3 Amended........................................................3829
19.3 Amended........................................................3829
19.46 Amended.......................................................3829
19.396 Amended......................................................3829
19.397 Amended......................................................3829
19.531 (h) amended..................................................3829
19.540 (a) amended..................................................3829
19.605 (a)(1) amended...............................................3829
19.606 (c) amended..................................................3829
19.607 (a)(6) amended...............................................3829
19.608 (a)(7) amended...............................................3829
19.685 (a) amended..................................................3829
19.686 (a) amended..................................................3830
19.687 Amended......................................................3830
19.769 Introductory text amended....................................3830
24.4 Amended........................................................3830
24.67 (a) amended...................................................3830
24.246 Table amended...............................................67643
24.248 Table amended...............................................67644
24.292 (a) and (b) amended..........................................3830
25.4 Amended........................................................3830
25.145 (b)(4) amended...............................................3830
25.203 Amended......................................................3830
25.261 (a)(4) amended...............................................3830
28 Redesignated from Part 252.......................................3830
    Heading revised.................................................3831
28.2 (a) and (b) amended............................................3831
28.4 Heading and text amended.......................................3831
28.11 Amended.......................................................3831
28.20 (a)(1), (2) heading, introductory text, (3), (4), (b)(1), 
        (2) introductory text heading and text, (3) and (c) 
        amended.....................................................3831
28.21 (b) and (e) amended...........................................3831
28.22 Text and note amended.........................................3831
28.23 Amended.......................................................3831
28.25 Amended.......................................................3831
28.26 (a)(1) and (b) amended........................................3831
28.27 Amended.......................................................3831
28.28 Amended.......................................................3831
28.30 (a) amended...................................................3831
28.35 Amended.......................................................3831
28.36 Introductory text, (c) and concluding text amended............3831
28.37 Heading and text amended......................................3831
28.38 Amended.......................................................3831
28.40 (a), (b) and (c) amended......................................3831
    (d) and (e) amended.............................................3832
28.41 Amended.......................................................3832
28.42 Amended.......................................................3832
28.43 (a)(2), (3), (4), (6), (b)(1), (2) and (3) amended............3832
28.45 Amended.......................................................3832
28.52a Amended......................................................3832
28.55 Amended.......................................................3832
28.56 Introductory text amended.....................................3832
28.57 Heading and text amended......................................3832
28.58 (a), (b) and (c) amended......................................3832
28.59 Amended.......................................................3832
28.60 Amended.......................................................3832
28.61 Amended.......................................................3832
28.62 (a) through (d) amended.......................................3832
28.63 Amended.......................................................3832
28.64 (a) amended...................................................3832
28.65 Amended.......................................................3832
28.67 Amended.......................................................3832
28.70 Amended.......................................................3832
28.71 Amended.......................................................3832
28.72 Amended.......................................................3832
28.73 (a) and (b) amended...........................................3832
28.74 Amended.......................................................3832
28.91 (a)(2) and (5) amended........................................3832
28.92 Heading, (a) and (b) amended..................................3832
28.95 Amended.......................................................3832
28.96 Amended.......................................................3832
28.98 Amended.......................................................3832
28.103 (b) amended..................................................3832
28.104 Amended......................................................3832
28.105 Amended......................................................3832
28.107 Amended......................................................3832
28.115 Introductory text amended....................................3832

[[Page 945]]

28.116 Introductory text amended..............................3832, 3833
    (e) amended.....................................................3833
28.117 Amended......................................................3833
28.121 (b) and (d) amended..........................................3833
28.122 Heading and (a) through (d) amended..........................3833
28.123 (b) amended..................................................3833
28.125 Amended......................................................3833
28.126 Amended......................................................3833
28.131 Introductory text, (c) and concluding text amended...........3833
28.132 Amended......................................................3833
28.133 Amended......................................................3833
28.141 (a)(2) and (c) amended.......................................3833
28.146 Amended......................................................3833
28.147 Amended......................................................3833
28.151 Amended......................................................3833
28.152 Heading and text amended.....................................3833
28.153 Amended......................................................3833
28.160 Introductory text amended....................................3833
28.161 Introductory text and (c) amended............................3833
28.162 Amended......................................................3833
28.171 (b), (d) and concluding text amended.........................3833
28.190 Heading and text amended.....................................3833
28.192 Amended......................................................3833
28.195b (a), (b) and (c) amended....................................3833
28.197 Introductory text amended....................................3833
28.198 Introductory text and (b) amended............................3833
28.199 Amended......................................................3833
28.211 (b) and concluding text amended..............................3833
28.214 Amended......................................................3833
28.215 Amended......................................................3833
28.218 Amended......................................................3833
28.219 Introductory text amended..............................3833, 3834
28.220 Introductory text amended....................................3834
28.220a Amended.....................................................3834
28.221 (b) and concluding text amended..............................3834
28.225 Introductory text amended....................................3834
28.226 Amended......................................................3834
28.227 Amended......................................................3834
28.246 Amended......................................................3834
28.247 Amended......................................................3834
28.250 Introductory text, (a)(4) and concluding text amended........3834
28.252 Amended......................................................3834
28.261 Amended......................................................3834
28.262 Amended......................................................3834
28.264 Amended......................................................3834
28.265 Amended......................................................3834
28.266 Amended......................................................3834
28.267 Amended......................................................3834
28.268 Amended......................................................3834
28.269 (a), (b) and (c) amended.....................................3834
28.275 Amended......................................................3834
28.281 Amended......................................................3834
28.282 Amended......................................................3834
28.285 Amended......................................................3834
28.286 Amended......................................................3834
28.290 Introductory text amended....................................3834
28.291 Introductory text, (f), (g) and (h) amended..................3834
28.295 Amended......................................................3834
28.301 Amended......................................................3834
28.302 Introductory text and concluding text amended................3834
28.303 Introductory text amended....................................3834
28.304 Amended......................................................3834
28.310 Amended......................................................3834
28.315 Amended......................................................3834
28.316 Introductory text and concluding text amended................3834
28.317 Introductory text and concluding text amended................3834
28.318 Amended......................................................3834
28.320 (a) and (b) amended..........................................3835
28.321 Amended......................................................3835
28.331 Amended......................................................3835
28.332 Amended......................................................3835
28.333 Amended......................................................3835
28.334 Amended......................................................3835
28.335 Amended......................................................3835

                                  2005

27 CFR
                                                                   70 FR
                                                                    Page
Chapter I
4.21 (f)(1)(i) amended..............................................2801
4.45 Heading revised; existing text designated as (a); new (a) 
        amended; (b) added.........................................49482
7.10 Amended; eff. 1-3-06............................................234
7.11 Added; eff. 1-3-06..............................................234
7.22 (a)(5) added; eff. 1-3-06.......................................234
7.29 (a) introductory text revised; (a)(7) added; eff. 1-3-06........234

[[Page 946]]

7.31 (d) redesignated as (e); new (d) added; eff. 1-3-06.............235
7.54 (a) introductory text revised; (a)(8) added; eff. 1-3-06........235
9.66 (b) and (c)(8) through (14) revised; (c)(15) through (26) 
        redesignated as (c)(23) through (34); new (c)(15) through 
        (22) added.................................................53299
9.162 Heading, (a), (b) introductory text and (c) introductory 
        text revised; (d) added....................................72713
9.175 Added........................................................59995
9.177 Added........................................................38003
9.182 Added........................................................31344
9.181 Added.........................................................2804
9.182 Added........................................................31344
9.184 Added; eff. 4-29-05...........................................9530
9.185 Added........................................................72716
9.186 Added........................................................53303
9.188 Added; eff. 8-1-05...........................................38007
9.189 Added........................................................38001
9.190 Added........................................................60001
9.191 Added........................................................72719
9.192 Added........................................................72710
17 Authority citation revised......................................62241
17.21 Existing text designated as (a) and amended; (b) added.......62241
17.22 Amended......................................................62241
17.23 Amended......................................................62241
17.24 Existing text designated as (a) and amended; (b) added.......62241
17.31 Amended......................................................62241
17.32 (a)(5) amended; (b) revised..................................62241
17.51 Existing text designated as (a) and amended; (b) added.......62241
17.61 Revised......................................................62241
17.62 Amended......................................................62242
17.71 Existing text designated as (a) and amended; (b) added.......62242
17.73 Amended......................................................62242
17.75 Revised......................................................62242
17.76 Revised......................................................62242
17.77 Revised......................................................62242
17.81 Amended......................................................62242
17.82 Amended......................................................62242
17.83 Amended......................................................62242
17.187 Amended.....................................................19882
19 Authority citation revised......................................62242
19.3 Amended.......................................................19882
19.49 (b)(1) amended...............................................19882
    (a)(3) added; (b)(2) and (c) revised...........................62242
19.50 (a) and (b) amended..........................................62243
19.51 (a), (b)(5) and (c) revised..................................62243
19.53 (a) revised..................................................62243
19.54 (a) amended; (b) and (d) revised.............................62243
19.634 Amended.....................................................19882
19.906 (a) amended.................................................62243
24 Authority citation revised......................................62244
24.4 Amended.......................................................19882
24.50 (a) and (b) amended; (c) and authority citation added; OMB 
        number.....................................................62244
24.51 (a) and (b) amended..........................................62244
24.52 (d) amended..................................................19882
    (a) through (d) amended........................................62244
24.53 (a), (b)(5), (c) introductory text, (1) and (2) amended......62244
24.54 (a) revised..................................................62244
24.55 (a) amended; (b) and (d) revised; authority citation added; 
        OMB number.................................................62244
24.202 Amended......................................................2801
24.203 Revised......................................................2801
24.301 (i) and (j) amended; (k) added..............................49483
24.302 (h) and (i) amended; (j) added..............................49483
25 Authority citation revised......................................62245
25.11 Amended; eff. 1-3-06...........................................235
25.15 Undesignated center heading and section added; eff. 1-3-06 
                                                                     235
25.24 (a)(2) and (6) amended.......................................19883
25.53 Undesignated center heading and section added; eff. 1-3-06 
                                                                     235
25.55 Undesignated center heading and section added; eff. 1-3-06 
                                                                     235
25.56 Added; eff. 1-3-06.............................................235
25.57 Added; eff. 1-3-06.............................................235
25.58 Added; eff. 1-3-06.............................................235
25.62 (a)(7) removed; eff. 1-3-06....................................237
25.67 Removed; eff. 1-3-06...........................................237
25.76 Removed; eff. 1-3-06...........................................237
25.111 (a) amended; (c) added......................................62245
25.111a (b) amended................................................62245
25.111b (a) amended................................................62245
25.112 Amended.....................................................19883
25.113 (a) and (b) amended.........................................62245
25.114 (a) and (b) amended.........................................62245
25.117 Amended.....................................................62245
25.118 (e) amended.................................................62245
25.119 Introductory text, (a) and (b) amended......................62245
25.125 Existing text designated as (a) and amended; (b) added......62245
25.131 Amended.....................................................62246

[[Page 947]]

25.132 Revised.....................................................62246
25.134 Revised.....................................................62246
26 Authority citation revised......................................62246
26.44 Amended......................................................19883
    Existing text designated as (a) and amended; (b) added.........62246
26.45 Revised......................................................62246
26.46 Existing text designated as (a) and amended; (b) added.......62246
26.163 Amended.....................................................19883
26.171 Existing text designated as (a) and amended; (b) added......62246
26.210 Amended.....................................................19883
    Existing text designated as (a) and amended; (b) added.........62246
26.211 Revised.....................................................62247
26.272 Amended.....................................................19883
26.307 Existing text designated as (a) and amended; (b) added......62247
26.319 Amended.....................................................19883
27 Authority citation revised...............................49483, 62247
27.30 Amended......................................................19883
    Existing text designated as (a) and amended; (b) added.........62247
27.31 Revised......................................................62247
27.133 Amended.....................................................19883
27.140 Aded........................................................49483
27.209 Amended.....................................................19883
28.3 Amended.......................................................19883
31 Redesignated from Part 194; heading revised.....................19884
    Authority citation revised.....................................62247
31.1 Amended.......................................................19884
31.4 Amended.......................................................19884
31.11 Amended......................................................19884
31.21 Amended......................................................19884
    Existing text designated as (a) and amended; (b) added.........62247
31.23 (a), (b) and (c) amended.....................................19884
    Revised........................................................62247
31.24 (a), (b) and (c) amended.....................................19884
    Revised........................................................62248
31.25 (a), (b) and (c) amended.....................................19884
    Revised........................................................62248
31.26 (a), (b) and (c) amended.....................................19884
    Revised........................................................62248
31.29 Amended......................................................19885
    Revised........................................................62249
31.30 Amended......................................................62249
31.31 Existing text designated as (a) and amended; (b) added.......62249
31.32 Amended......................................................62249
31.33 Existing text designated as (a) and amended..................62249
31.34 Amended......................................................62249
31.35 Revised......................................................62249
31.41 (a) amended; (b) revised.....................................19884
31.42 Amended......................................................19885
31.51 Amended......................................................19885
    Revised........................................................62249
31.53 Amended......................................................62249
31.54 Amended......................................................19885
    Revised........................................................62249
31.55 (c) amended..................................................19885
    Revised........................................................62250
31.56 Amended...............................................19885, 62250
31.57 Amended......................................................62250
31.58 Amended......................................................62250
31.59 Amended......................................................62250
31.71 Amended......................................................19885
    Existing text designated as (a) and amended; (b) added.........62250
31.72 (b) amended..................................................19885
    (b) revised....................................................62250
31.91 Revised......................................................62250
31.92 Revised......................................................62250
31.93 Revised......................................................62251
31.94 Amended...............................................19885, 62251
31.101 (b) existing text redesignated as (b)(1) and amended; 
        (b)(2) added...............................................62251
31.102 Revised.....................................................62251
31.104 Amended..............................................19885, 62251
31.104a Amended.............................................19885, 62251
31.105 Amended.....................................................19885
31.106 (a), (b) and (c) amended....................................19885
    (a), (b)(5) and (c) revised....................................62251
31.107 Amended.....................................................19885
31.109 Amended.....................................................19885
    (a) amended....................................................62251
31.110 (b) amended.................................................19885
31.111 Amended.....................................................19885
31.121 Amended.....................................................19885
    (a) revised....................................................62251
31.121a Amended....................................................19885
31.123 Amended.....................................................19885
31.124 Amended.....................................................19885
    Revised........................................................62251
31.125 Amended.....................................................19885
    Revised........................................................62252
31.126 Amended.....................................................19885
    Revised........................................................62252
31.127 Amended.....................................................19885
    Heading revised; existing text designated as (a) and amended; 
(b) added..........................................................62252
31.131 Amended..............................................19885, 62252
31.132 Amended.....................................................19885
31.133 Amended.....................................................19885
31.134 Amended.....................................................19885
31.135 Amended.....................................................19885

[[Page 948]]

31.136 Amended..............................................19885, 62252
31.137 Amended.....................................................19885
31.138 Amended.....................................................19885
31.139 Amended.....................................................19885
31.151 (a) and (b) amended.........................................19885
    (a) existing text redesignated as (a)(1) and amended; (a)(2) 
added..............................................................62252
31.152 Amended.....................................................19885
    Existing text designated as (a) and amended; (b) added.........62253
31.153 Amended.....................................................19885
31.161 Amended..............................................19885, 62253
31.162 Revised.....................................................62253
31.163 Revised.....................................................62253
31.164 Amended.....................................................62253
31.165 Amended.....................................................62253
31.166 Amended.....................................................62253
31.167 Amended.....................................................62253
31.168 Amended.....................................................62253
31.169 Amended.....................................................19886
    Introductory text and concluding text amended..................62253
31.170 Amended.....................................................19886
    Existing text designated as (a) and amended; (b) added.........62253
31.181 Amended.....................................................62253
31.182 (a) and (b) amended..................................19886, 62253
31.183 (a) and (b) amended.........................................19886
    (a), (b) and (c) amended.......................................62253
31.183a (a) and (b) amended........................................19886
    (a), (b) and (c) amended.......................................62254
31.184 (a) and (b) amended.........................................19886
    (a), (b) and (d) amended.......................................62254
31.185 (a) and (b) amended.........................................62254
31.186 Amended.....................................................62254
31.187 Amended.....................................................62254
31.187a Amended.............................................19886, 62254
31.187b Amended....................................................19886
31.188 Concluding text amended.....................................62254
31.189 Concluding text amended.....................................62254
31.190 Amended.....................................................62254
31.191 (b) amended.................................................62254
31.193 Amended.....................................................19886
31.201 Amended.....................................................19886
31.211 Amended.....................................................19886
    (a) introductory text amended; (b) redesignated as (c); new 
(b) added..........................................................62254
31.221 Amended.....................................................19886
31.222 Amended.....................................................19886
31.223 Amended.....................................................19886
31.227 Amended.....................................................19886
31.228 Amended.....................................................19886
31.229 (a) amended.................................................19887
31.230 (a) and (d) amended.........................................19887
31.232 Amended.....................................................19887
31.233 (a), (b) and (c) amended....................................19887
31.234 (a) amended.................................................19887
31.235 Amended.....................................................19887
31.236 Amended.....................................................19887
31.237 Amended.....................................................19887
31.262 Amended.....................................................19887
31.264 Amended.....................................................19887
31.271 (a), (b) and (c) amended....................................19887
31.292 Amended.....................................................19887
31.293 Amended.....................................................19887

                                  2006

27 CFR
                                                                   71 FR
                                                                    Page
Chapter I
1.3 (a) amended; (b) revised.......................................16920
1.4 Revised........................................................16920
1.10 Amended.......................................................16920
1.24 Introductory text amended.....................................16920
1.25 Amended.......................................................16920
1.27 Amended.......................................................16920
1.31 Amended.......................................................16920
1.35 Amended.......................................................16920
1.42 Amended.......................................................16920
1.50 Amended.......................................................16920
1.51 Amended.......................................................16920
1.52 Amended.......................................................16920
1.55 Amended.......................................................16920
1.56 (b) amended...................................................16920
1.58 Amended.......................................................16920
1.59 Introductory text and (c) amended.............................16920
4.3 (a) amended; (b) revised.......................................16920
4.4 Revised........................................................16920
4.10 Amended.......................................................16921
4.21 (b)(3)(ii) and (iii) amended..................................16921
4.23 (c)(2) introductory text and (e) amended......................16921
4.24 (a)(1), (b)(1), (c)(1) and (3) amended........................16921
4.25 (e)(2) amended................................................16921
4.30 (b)(1) amended................................................16921
4.32a Added; interim...............................................42267
4.32b Added; interim...............................................42267
4.33 (b) amended...................................................16921
4.37 (c) amended...................................................16921
4.38 (h) amended...................................................16921
4.39 (a)(4), (5), (d), (g), (i)(2)(iii), (3) and (j) amended.......16921
4.40 (a), (b) and (c) amended......................................16921
4.50 (a) and (b) amended...........................................16921
4.52 Amended.......................................................16921

[[Page 949]]

4.64 (a)(4) and (5) amended........................................16921
4.91 Introductory text amended.....................................16921
4.93 (a) introductory text, (c) introductory text, (d) and (e) 
        amended....................................................16921
5.3 (a) amended; (b) revised.......................................16921
5.4 Revised........................................................16921
5.11 Amended.......................................................16921
5.22 (k)(1), (2) and (l)(2) amended................................16922
5.23 (a)(2) amended................................................16922
5.26 (b) amended...................................................16922
5.28 Introductory text amended.....................................16922
5.32a Added; interim...............................................42268
5.32b Added; interim...............................................42268
5.33 (g) amended...................................................16922
5.34 (a) amended...................................................16922
5.35 (a) amended...................................................16922
5.36 (d) amended...................................................16922
5.38 (b) and (c) amended...........................................16922
5.42 (a)(4), (5) and (b)(7) amended................................16922
5.46 (d)(1) amended................................................16922
5.51 (a) through (d) amended.......................................16922
5.55 (a), (b) and (c) amended......................................16922
5.65 (a)(4), (5) and (g) amended...................................16922
6.5 Revised........................................................16922
6.6 (a) through (c)(3) amended.....................................16922
6.11 Amended.......................................................16922
7.3 (a) amended; (b) revised.......................................16922
7.5 Revised........................................................16922
7.10 Amended.......................................................16923
7.20 (c)(1) amended................................................16923
7.22a Added; interim...............................................42269
7.22b Added; interim...............................................42269
7.23 (b) amended...................................................16923
7.24 (g) amended...................................................16923
7.25 (a)(1) amended................................................16923
7.29 (a)(4), (5) and (d) amended...................................16923
7.31 (a), (b) and (c) amended......................................16923
7.41 (a) amended...................................................16923
7.54 (a)(4) and (5) amended........................................16923
8.5 Revised........................................................16923
8.6 (a) through (c)(3) amended.....................................16923
8.11 Amended.......................................................16923
9.3 (a) amended....................................................16923
9.11 Amended.......................................................16923
9.32 (a) revised...................................................66455
9.46 (b) and (c) revised...........................................34531
9.59 (c)(13) revised; (c)(14) through (19) redesignated as (c)(16) 
        through (21); new (c)(14) and (15) added...................34527
9.75 (b) introductory text and (c)(10) through (16) revised; 
        (b)(40) and (41) amended; (b)(42) and (43) added...........34524
9.139 (c)(9) and (10) revised; (c)(11) through (21) redesignated 
        as (c)(12) through (22); new (c)(11) added.................34527
9.157 (b) introductory text and (c)(13) through (18) revised; 
        (b)(41) and (42) amended; (b)(43) added....................34524
9.187 Added.........................................................8205
9.193 Added.........................................................8211
9.194 Added........................................................33242
9.195 Added........................................................40414
9.196 Added........................................................40414
9.197 Added........................................................40414
9.198 Added........................................................40414
9.199 Added........................................................40414
9.200 Added........................................................40414
9.201 Added........................................................40414
9.202 Added........................................................40404
9.203 Added........................................................40400
9.204 Added........................................................65411
9.205 Added........................................................68462
9.206 Added........................................................68471
10.5 Revised.......................................................16923
10.6 (a) through (c)(3) amended....................................16924
10.11 Amended......................................................16924
11.5 Revised.......................................................16924
11.6 (a) and (b) amended...........................................16924
11.11 Amended......................................................16924
12.1 Amended.......................................................16924
12.3 (a) and (b) amended...........................................16924
12.31 Introductory text amended....................................16924
13.2 Revised.......................................................16924
13.11 Amended......................................................16924
13.20 (a) amended; (b) revised.....................................16924
13.21 (a) and (b) amended..........................................16925
13.22 Amended......................................................16925
13.23 Amended......................................................16925
13.25 (a) and (b) amended..........................................16925
13.26 (a) and (b) amended..........................................16925
13.27 (a), (b) and (c) amended.....................................16925
13.41 Amended......................................................16925
13.42 Amended......................................................16925
13.43 (a) and (b) amended..........................................16925
13.44 (a) and (b) amended..........................................16925
13.45 (a) and (b) amended..........................................16925
13.51 Amended......................................................16925
13.52 Amended......................................................16925
13.53 Amended......................................................16925
13.54 (a) and (b) amended..........................................16925
13.61 (a)(2), (b) and (d) amended..................................16925

[[Page 950]]

13.62 Amended......................................................16925
13.71 (a) and (b) amended..........................................16925
13.72 (b) amended..................................................16925
13.74 Amended......................................................16925
13.75 Heading amended..............................................16925
13.76 (a) amended..................................................16925
13.81 Amended......................................................16925
13.92 Amended......................................................16925
16.10 Amended......................................................16925
16.30 Amended......................................................16925
17.2 (a) amended; (b) revised......................................16925
17.3 (a) introductory text, (b) and (c) amended....................16926
17.6 Amended.......................................................16926
17.7 Revised.......................................................16926
17.11 Amended......................................................16926
17.31 Amended......................................................16926
17.32 Heading and (a)(6) amended...................................16926
17.33 Heading amended..............................................16926
17.34 Amended......................................................16926
17.41 Amended......................................................16926
17.42 (b) amended..................................................16926
17.51 (a) amended..................................................16926
17.52 Amended......................................................16926
17.53 (a) and (b) amended..........................................16926
17.54 Amended......................................................16926
17.55 Amended......................................................16926
17.62 Amended......................................................16926
17.71 (a) amended..................................................16926
17.73 Amended......................................................16926
17.92 Amended......................................................16926
17.101 Amended.....................................................16926
17.106 Amended.....................................................16926
17.107 Amended.....................................................16926
17.108 (c) amended.................................................16926
17.111 Introductory text and (b) amended...........................16926
17.112 Amended.....................................................16926
17.113 Amended.....................................................16926
17.114 Amended.....................................................16926
17.121 (b) and (d) amended.........................................16926
17.122 Amended.....................................................16926
17.123 Amended.....................................................16926
17.125 (a) and (b) amended.........................................16926
17.126 (a) amended.................................................16926
17.127 Amended.....................................................16926
17.131 Amended.....................................................16926
17.132 (a) amended.................................................16926
17.133 Introductory text amended...................................16926
17.134 Amended.....................................................16926
17.135 (a)(2) amended..............................................16926
17.136 Amended.....................................................16926
17.141 Amended.....................................................16926
17.142 (a) and (b) amended.........................................16927
17.143 amended.....................................................16927
17.144 Amended.....................................................16927
17.147 (a) amended.................................................16927
17.151 Amended.....................................................16927
17.161 Amended.....................................................16927
17.164 (c) amended.................................................16927
17.166 (c) amended.................................................16927
17.167 (a) and (b) amended.........................................16927
17.168 (a) amended.................................................16927
17.170 Amended.....................................................16927
17.171 Amended.....................................................16927
17.182 Amended.....................................................16927
17.183 (a), (b) and (c) amended....................................16927
17.185 (c) amended.................................................16927
17.187 Amended.....................................................16927
18.11 Amended......................................................16927
18.12 Revised......................................................16927
18.13 (a) introductory text and (b) amended........................16927
18.14 (a) introductory text, concluding text and (b) amended.......16927
18.15 Amended......................................................16927
18.16 (a) amended; (b) revised.....................................16927
18.17 Amended......................................................16927
18.19 Amended......................................................16927
18.22 (b) amended..................................................16927
18.24 Amended......................................................16928
18.27 (a) introductory text amended................................16928
18.39 Introductory text and (a) amended............................16928
18.40 Introductory text and (a) amended............................16928
18.41 Amended......................................................16928
18.42 (a) amended..................................................16928
18.52 (b) amended..................................................16928
18.61 (a) and (b) amended..........................................16928
19.4 Added.........................................................16928
19.11 Amended.......................................................5601
    amended........................................................16928
    Correctly amended..............................................25753
19.31 Amended......................................................16928
19.32 Amended......................................................16928
19.35 Amended......................................................16928
19.36 (b) amended..................................................16928
19.37 (b) amended..................................................16928
19.38 (b) amended..................................................16928
19.41 (a) introductory text, (4) and (b) introductory text amended
                                                                   16928
19.42 (a) introductory text amended................................16928
19.44 mended.......................................................16928
19.46 Amended......................................................16928
19.49 (b)(2) amended...............................................16928

[[Page 951]]

19.51 (b) heading, (6), (d) heading, (3) and (4) amended...........16928
19.53 (b) and (c) amended..........................................16928
19.58 (c) and (d) amended..........................................16928
19.61--19.71 Undesignated center heading removed...................16929
19.61 (a) amended; (b) revised.....................................16929
19.62 Introductory text and (c) amended............................16929
19.63 Amended......................................................16929
19.65 amended......................................................16929
19.66 amended......................................................16929
19.67 (a)(2), (3)(ii), (b)(1), (2)(vi) and (c) amended.............16929
19.68 Amended......................................................16929
19.70 Amended......................................................16929
19.71 (a) through (d) amended......................................16929
19.72--19.79 Undesignated center heading removed...................16929
19.72 Amended......................................................16929
19.73 Introductory text and concluding text amended................16929
19.74 Amended......................................................16929
19.75 (a) introductory text through (c)(1) and (d) amended.........16929
19.76 Amended......................................................16929
19.77 Amended......................................................16929
19.78 Amended......................................................16929
19.79 Amended......................................................16929
19.81--19.84 Undesignated center heading removed...................16930
19.81 Amended......................................................16930
19.82 Amended......................................................16930
19.83 Amended......................................................16930
19.84 Amended......................................................16930
19.86 Amended......................................................16930
19.91 (a) and (b) amended..........................................16930
19.92 (b)(10) amended..............................................16930
19.96 (b)(1), (c)(2), (iii) and (d) amended........................16930
19.98 Introductory text and (c) amended............................16930
19.99 (c) amended..................................................16930
19.132 Amended.....................................................16930
19.133 (b) amended.................................................16930
19.134 (a)(2), (c)(1), (2) and (d) amended.........................16930
19.151 (c) amended.................................................16930
19.152 Concluding text amended.....................................16930
19.153 (b) amended.................................................16930
19.155 Amended.....................................................16930
19.156 Amended.....................................................16930
19.157 (a)(7) amended..............................................16930
19.158 (f) and concluding text amended.............................16930
19.161 Introductory text and (c) amended...........................16930
19.162 Amended.....................................................16930
19.163 Introductory text and (f) amended...........................16930
19.167 (c)(1) and (d) amended......................................16930
19.168 (b)(2) amended..............................................16930
19.184 Amended.....................................................16930
19.185 Amended.....................................................16930
19.187 (a) amended.................................................16930
19.190 Amended.....................................................16930
19.193 (a), (b)(3) and (c) amended.................................16931
19.201 (a) amended.................................................16931
19.202 (a), (b) and (c) amended....................................16931
19.203 (a), (b) introductory text and (d) amended..................16931
19.204 (a), (b) introductory text and (d) amended..................16931
19.205 (b) introductory text, (c) introductory text and (d) 
        amended....................................................16931
19.206 (b) introductory text, (c) introductory text and (d) 
        amended....................................................16931
19.211 Amended.....................................................16931
19.231 Amended.....................................................16931
19.236 (a) amended.................................................16931
19.237 (a) introductory text and (b) amended.......................16931
19.247 Amended.....................................................16931
19.250 Amended.....................................................16931
19.252 Amended.....................................................16931
19.273 (b)(3) and (c)(4) amended...................................16931
19.274 (a)(1) and (b) amended......................................16931
19.277 (c) amended.................................................16931
19.279 (a) and (b) amended.........................................16931
19.281 (e) concluding text and (f) amended.........................16931
19.282 Amended.....................................................16931
19.311 (a) and (b) amended.........................................16931
19.319 (a) amended.................................................16931
19.326 Amended.....................................................16931
19.327 Amended.....................................................16931
19.329 Amended.....................................................16931
19.342 (b) and (c) amended.........................................16931
19.347 Amended.....................................................16931
19.353 Amended.....................................................16931
19.378 Amended.....................................................16931
19.382 Amended.....................................................16931
19.385 Amended.....................................................16931
19.386 (a)(2) amended..............................................16931
19.395 Concluding text amended.....................................16931
19.401 Amended.....................................................16931

[[Page 952]]

19.402 (a)(1), (2) introductory text, (3) introductory text and 
        (b)(1) through (d) amended.................................16931
19.453 (a) and (b) amended.........................................16931
19.454 Amended.....................................................16931
19.456 Amended.....................................................16931
19.460 (e) amended.................................................16932
19.461 (c) amended.................................................16932
19.464 Amended.....................................................16932
19.485 (b) amended.................................................16932
19.487 (a) amended.................................................16932
19.506 Amended.....................................................16932
19.507 (b) amended.................................................16932
19.508 (b) amended.................................................16932
19.510 (a) and (c) amended.........................................16932
19.519 Amended.....................................................16932
19.522 (a) revised..................................................5601
    (b)(1) and (2) amended.........................................16932
19.523 (a) amended; (d) added.......................................5602
    (b) amended....................................................16932
19.524 (a)(3), (b)(1), (3), (c)(1) and (e) amended.................16932
19.525 (a) amended.................................................16932
19.533 Amended.....................................................16932
19.538 (a)(1) introductory text amended............................16932
19.539 Amended.....................................................16932
19.540 (c)(2)(ii) and (B) amended..................................16932
19.561 (b)(1) and (c) amended......................................16932
19.562 (a)(2) through (e) amended..................................16932
19.563 (a) and (b) amended.........................................16932
19.581 (b) amended.................................................16932
19.585 Amended.....................................................16932
19.588 (b) amended.................................................16932
19.593 (c) amended.................................................16932
19.594 (a) amended.................................................16932
19.597 (b) and (c) amended.........................................16932
19.604 Amended.....................................................16932
19.633 (a), (b) introductory text and concluding text amended......16932
19.634 Amended.....................................................16932
19.637 Amended.....................................................16932
19.638 Amended.....................................................16932
19.641 (a) amended.................................................16932
19.643 (c)(1) and (3) amended......................................16932
19.645 (e) amended.................................................16932
19.681 (d) amended.................................................16932
19.687 Amended.....................................................16932
19.691 (b) amended.................................................16932
19.701 (a), (c) and (e) amended....................................16932
19.721 (d) amended.................................................16932
19.723 (a), (b)(1) and (c)(1) amended..............................16932
19.723 (d)(3) amended..............................................16933
19.724 (a) introductory text, (2) and (b) amended..................16933
19.725 (a) introductory text and (b) amended.......................16933
19.731 (b)(2)(iii) introductory text and (c)(3) amended............16933
19.732 (f) amended.................................................16933
19.741 (d) amended.................................................16933
19.750 (b) introductory text amended...............................16933
19.761 Amended.....................................................16933
19.768 Introductory text amended...................................16933
19.770 (a)(2) and (6)(i) amended...................................16933
19.773 Introductory text and (b) amended...........................16933
19.774 (e) amended.................................................16933
19.778 (b), (d) and (e) amended....................................16933
19.791 Amended.....................................................16933
19.792 (a) and (c) amended.........................................16933
19.822 Introductory text and concluding text amended...............16933
19.823 Amended.....................................................16933
19.824 Amended.....................................................16933
19.903 Introductory text and (c) amended...........................16933
19.904 Introductory text and (c) amended...........................16933
19.907 Amended.....................................................16933
19.910 Amended.....................................................16933
19.911 Introductory text amended...................................16933
19.912 (a) introductory text and (2) amended.......................16933
19.913 (a) heading, (1), (2), (b) and (c) amended..................16933
19.914 (a) introductory text amended...............................16933
19.915 (a) introductory text amended...............................16933
19.916 (b)(1) and (c) amended......................................16933
19.917 Amended.....................................................16933
19.918 Amended.....................................................16933
19.919 Amended.....................................................16933
19.921 (c) amended.................................................16933
19.930 (a)(1)(ii), (b) introductory text and (4) amended...........16933
19.945 Introductory text amended...................................16933
19.950 Introductory text and (f) amended...........................16934
19.955 Amended.....................................................16934
19.565 Revised......................................................5602
19.967 Introductory text amended...................................16934

[[Page 953]]

19.970 Amended.....................................................16934
19.703 (a) amended..................................................5602
19.980 (a) amended.................................................16934
19.982 (c)(1) and (3) amended......................................16934
19.987 Amended.....................................................16934
19.988 Amended.....................................................16934
19.1001 (a) and (c) amended........................................16934
19.1005 (a) and (b) amended........................................16934
19.1006 Amended....................................................16934
20.11 Amended......................................................16934
20.20 Revised......................................................16934
20.21 (a) amended; (b) revised.....................................16934
20.22 (a)(1), (2) heading and introductory text, (3), (b)(1), (2) 
        heading and introductory text, (3) and (c) amended.........16934
20.23 Amended......................................................16934
20.24 Amended......................................................16934
20.25 Amended......................................................16934
20.27 Amended......................................................16935
20.28 (a) and (b) amended..........................................16935
20.37 Amended......................................................16935
20.38a (a), (b) heading, (6), (c)(1), (2), (d) heading, (3) and 
        (4) amended................................................16935
20.40 (a), (b) and (c) amended.....................................16935
20.40a (a), (b)(2) and (d) amended.................................16935
20.41 (c) introductory text amended................................16935
20.42 (a)(11) and (b) amended......................................16935
20.43 (a) introductory text, (2) and (b) amended...................16935
20.44 Introductory text amended....................................16935
20.45 (c)(1) amended...............................................16935
20.45--20.55 Undesignated center heading amended...................16935
20.48 (b) and (c) amended..........................................16935
20.50 Amended......................................................16935
20.51 Introductory text amended....................................16935
20.56 (a)(1), (b), (c)(1) and (3) amended..........................16935
20.57 (b)(1) and (2) amended.......................................16935
20.60 Amended......................................................16935
20.61 Amended......................................................16935
20.62 Amended......................................................16935
20.63 (a) and (b) amended..........................................16935
20.64 Amended......................................................16935
20.68 (a) introductory text amended................................16935
20.91 (a) and (c) amended..........................................16935
20.92 (a), (b), and (c) introductory text amended..................16935
20.100 (a) introductory text and (b) amended.......................16935
20.103 Amended.....................................................16935
20.111 (a) and (b) amended.........................................16935
20.117 (d)(2)(iv) amended..........................................16935
20.132 (c) amended.................................................16935
20.133 (a) introductory text and (b) amended.......................16935
20.134 (b)(1)(ii) and (c) amended..................................16935
20.144 Amended.....................................................16935
20.147 (b) amended.................................................16935
20.161 (c)(3) amended..............................................16935
20.163 (c)(2) amended..............................................16935
20.164 (e) amended.................................................16935
20.166 Amended.....................................................16935
20.170 Amended.....................................................16935
20.178 (a) introductory text and (c)(1) amended....................16935
20.181 (a) amended.................................................16935
20.182 (a) amended.................................................16936
20.190 Amended.....................................................16936
20.191 Amended.....................................................16936
20.202 (a) amended.................................................16936
20.204 (b) amended.................................................16936
20.205 (f) amended.................................................16936
20.211 (b) amended.................................................16936
20.213 (a) and (b) amended.........................................16936
20.234 (b)(3) amended..............................................16936
20.235 (c) amended.................................................16936
20.244 Amended.....................................................16936
20.245 Amended.....................................................16936
20.246 Amended.....................................................16936
20.252 (a) and (b) amended.........................................16936
20.261 Amended.....................................................16936
20.262 (c) and (d) amended.........................................16936
20.263 (c) and (d) amended.........................................16936
20.265 (a) introductory text and (b) amended.......................16936
20.267 (a) and (c) amended.........................................16936
21.2 (a) amended; (b) revised......................................16936
21.3 (b), (c) and (d) amended......................................16936
21.5 Introductory text amended.....................................16936
21.7 Revised.......................................................16936
21.11 Amended......................................................16936
21.21 (b) amended..................................................16936
21.21 (c) amended..................................................16937
21.31 (b) and (c) amended..........................................16937
21.33 (c) amended..................................................16937
21.34 (c) amended..................................................16937
21.56 (a) amended..................................................16937
21.65 (a) amended..................................................16937
21.91 Amended......................................................16937
21.123 Amended.....................................................16937
21.141 Footnote 2 amended..........................................16937
22.11 Amended......................................................16937
22.20 Revised......................................................16937

[[Page 954]]

22.21 (a) amended; (b) revised.....................................16937
22.22 (a)(1), (2) heading and introductory text, (3), (4), (b)(1), 
        (2) heading and introductory text, (3) and (c) amended.....16937
22.23 Amended......................................................16937
22.24 (a) and (b) amended..........................................16937
22.25 Amended......................................................16937
22.26 (a) and (b) amended..........................................16937
22.36 Amended......................................................16937
22.38 (a), (b) heading, (6), (c)(1), (2), (d) heading, (3) and (4) 
        amended....................................................16937
22.39 (a), (b) and (c) amended.....................................16937
22.40 (a), (b)(2) and (d) amended..................................16938
22.41 (b) introductory text amended................................16938
22.42 (a)(11) and (b) amended......................................16938
22.43 (a) introductory text, (2) and (b) amended...................16938
22.44 Introductory text amended....................................16938
22.45 (c)(1) amended...............................................16938
22.48--22.55 Undesignated center heading amended...................16938
22.50 Amended......................................................16938
22.51 Introductory text amended....................................16938
22.57 (a)(1), (b), (c)(1) and (3) amended..........................16938
22.58 (b)(1) and (2) amended.......................................16938
22.61 Amended......................................................16938
22.62 Amended......................................................16938
22.63 Amended......................................................16938
22.64 (b) amended..................................................16938
22.68 Introductory text amended....................................16938
22.102 (c) introductory text amended...............................16938
22.103 Amended.....................................................16938
22.111 (c)(3) amended..............................................16938
22.113 (a) and (c) amended.........................................16938
22.122 (a) amended.................................................16938
22.124 (b) amended.................................................16938
22.125 (c) amended.................................................16938
22.142 (a)(1), (2), (c) and (d) amended............................16938
22.154 (b)(3) amended..............................................16938
22.155 (a) amended.................................................16938
22.161 (a) and (d) amended.........................................16938
22.162 Amended.....................................................16938
22.164 (a) amended.................................................16938
22.171 (a) amended.................................................16938
22.174 Amended.....................................................16938
22.175 Amended.....................................................16938
22.176 Amended.....................................................16938
24.10 Amended.......................................................5602
     Amended.......................................................16938
24.19 Revised......................................................16938
24.20 (a) amended; (b) revised.....................................16938
24.21 (a) introductory text, (b) and (c) amended...................16939
24.22 (a) introductory text, (b) and (c) amended...................16939
24.25 (a) introductory text, (b), (c) and (d) amended..............16939
24.26 Amended......................................................16939
24.27 Amended......................................................16939
24.28 Amended......................................................16939
24.29 Amended......................................................16939
24.30 Amended......................................................16939
24.31 Amended......................................................16939
24.32 Amended......................................................16939
24.35 Amended......................................................16939
24.36 Amended......................................................16939
24.37 Amended......................................................16939
24.40 Amended......................................................16939
24.41 Amended......................................................16939
24.50 (b) amended..................................................16939
24.52 (a) and (b) amended..........................................16939
24.53 (a), (b) heading, (6), (c)(1), (2), (d) heading, (3) and (4) 
        amended....................................................16939
24.54 (b) and (c) amended..........................................16939
24.55 (a) amended..................................................16939
24.60 Amended......................................................16939
24.62 Amended......................................................16939
24.65 (a) introductory text, (b) introductory text and (c) 
        introductory text amended..................................16939
24.66 (a) amended..................................................16939
24.69 (a) introductory text and (b) amended........................16939
24.70 Amended......................................................16939
24.75 (f) amended..................................................16939
24.77 (b) and (c) amended..........................................16939
24.77 (d) and (e) amended..........................................16940
24.80 Amended......................................................16940
24.81 Amended......................................................16940
24.82 Amended......................................................16940
24.86 Amended......................................................16940
24.87 Amended......................................................16940
24.91 Introductory text and (c) amended............................16940
24.96 (a) amended..................................................16940
24.103 Amended.....................................................16940
24.105 Amended.....................................................16940
24.106 Amended.....................................................16940
24.107 Amended.....................................................16940
24.108 Amended.....................................................16940
24.109 Introductory text and (k) amended...........................16940

[[Page 955]]

24.110 (c)(1) and (d) amended......................................16940
24.111 Amended.....................................................16940
24.112 Amended.....................................................16940
24.113 Amended.....................................................16940
24.115 Amended.....................................................16940
24.116 Amended.....................................................16940
24.117 Amended.....................................................16940
24.120 Amended.....................................................16940
24.123 Amended.....................................................16940
24.124 Amended.....................................................16940
24.125 (c) amended.................................................16940
24.127 Amended.....................................................16940
24.131 Amended.....................................................16940
24.135 (b)(1), (4), (c), (d) and (e) amended.......................16940
24.136 (d) amended.................................................16940
24.137 (a), (b)(1), (3) and (c) amended............................16940
24.140 (a), (b)(3) concluding text and (c) amended.................16940
24.141 Amended.....................................................16940
24.145 Amended.....................................................16940
24.146 (a), (b) and (c) amended....................................16940
24.148 (b) amended.................................................16940
24.150 Amended.....................................................16940
24.154 Amended.....................................................16940
24.155 (a) introductory text and (b) amended.......................16940
24.157 Amended.....................................................16940
24.159 Amended.....................................................16940
24.165 Amended.....................................................16940
24.166 Amended.....................................................16940
24.167 (a) amended.................................................16940
24.169 Amended.....................................................16940
24.170 (a) and (b) amended.........................................16940
24.176 (b) amended.................................................16940
24.183 Amended.....................................................16940
24.191 Amended.....................................................16940
24.197 Amended.....................................................16940
24.230 Amended.....................................................16940
24.231 Amended.....................................................16940
24.235 (b) amended.................................................16940
24.236 Amended.....................................................16940
24.237 Amended.....................................................16940
24.242 (a) introductory text, (b), (c)(1) introductory text and 
        (2) amended................................................16941
24.245 Amended.....................................................16941
24.246 (a)(1) amended..............................................16941
24.247 Introductory text amended...................................16941
24.248 Introductory text amended...................................16941
24.249 (a), (b) and (c) amended....................................16941
24.250 (a), (b)(9), (c) and (d) amended............................16941
24.257 (c)(2)(i) amended...........................................16941
24.259 (c) amended.................................................16941
24.260 Amended.....................................................16941
24.265 Amended.....................................................16941
24.266 (a) amended.................................................16941
24.267 Amended.....................................................16941
24.268 Amended.....................................................16941
24.271 Heading, (a), (b) and (c) heading revised; (c)(1) and (i) 
        headings added..............................................5602
24.272 (b)(1), (3), (c)(1) and (e) amended.........................16941
24.273 Revised......................................................5602
24.275 (a) introductory text, concluding text and (b)(1) amended 
                                                                   16941
24.276 Amended.....................................................16941
24.277 (a) amended.................................................16941
24.278 (f) and (h) amended.........................................16941
24.279 (a) amended.................................................16941
24.291 (c) amended.................................................16941
24.292 (b) amended.................................................16941
24.293 (b) amended.................................................16941
24.294 (a) and (b) amended.........................................16941
24.295 (b) amended.................................................16941
24.296 (a) and (b) amended.........................................16941
24.300 (g) revised..................................................5603
    (b), (d) and (e)(3) amended....................................16941
24.303 (d) amended.................................................16941
24.304 (a) introductory text and (b) amended.......................16941
24.308 (b) amended.................................................16941
24.313 Amended......................................................5603
    Introductory text and (d) amended..............................16941
24.314 Amended.....................................................16941
24.316 Amended.....................................................16941
24.323 Amended.....................................................16941
25.3 (a) amended; (b) revised......................................16941
25.6 Heading and text revised......................................16941
25.11 Amended......................................................16942
25.22 Amended......................................................16942
25.23 (b) introductory text and (c) amended........................16942
25.24 (a)(7) amended...............................................16942
25.25 (a) and (b) amended..........................................16942
25.31 Amended......................................................16942
25.42 (a) introductory text and (c) amended........................16942
25.51 Amended......................................................16942
25.52 (a)(1) introductory text, (2), (3), (b) introductory text, 
        (3) and (d) amended........................................16942
25.61 (a) and (c) amended..........................................16942
25.62 (b) amended..................................................16942
25.63 Amended......................................................16942

[[Page 956]]

25.64 Amended......................................................16942
25.66 (c)(1) and (d) amended.......................................16942
25.68 (b) amended..................................................16942
25.71 (a)(2) and (b)(1) amended....................................16942
25.72 (b)(2) amended...............................................16942
25.74 Amended......................................................16942
25.75 Amended......................................................16942
25.77 Amended......................................................16942
25.81 (b)(1), (c) and (e) amended..................................16942
25.85 Amended......................................................16942
25.91 (c) and (d) amended..........................................16942
25.93 (a) revised...................................................5603
    Amended........................................................16942
25.96 Amended......................................................16942
25.101 (a) introductory text and (b) amended.......................16942
25.103 Amended.....................................................16942
25.104 Amended.....................................................16942
25.105 Amended.....................................................16942
25.114 (a) amended.................................................16942
25.117 Amended.....................................................16942
25.118 Heading and (f) amended.....................................16942
25.119 (a) amended.................................................16942
25.119 (b) amended.................................................16943
25.120 Heading, (c) and (d) amended................................16943
25.125 (a) amended.................................................16943
25.127 Amended.....................................................16943
25.141 (b)(2) amended..............................................16943
25.142 (b)(2) and (c) amended......................................16943
25.144 (b) introductory text amended...............................16943
25.152 (a) Concluding text amended.................................16943
25.155 Amended.....................................................16943
25.158 (c) amended.................................................16943
25.164 Heading, (c) and (d) revised; (a), (e)(1) and (2) amended 
                                                                    5603
25.164a Heading and (a)(1) revised..................................5604
25.165 (b)(1), (3), (c)(1) and (e) amended.........................16943
25.166 (a) amended..................................................5604
25.167 (a) amended.................................................16943
25.173 (a) amended.................................................16943
25.182 Amended.....................................................16943
25.184 (d) amended.................................................16943
25.196 (b) amended.................................................16943
25.213 (b) introductory text and (c) amended.......................16943
25.222 (a) and (b) amended.........................................16943
25.223 (a) and (b) amended.........................................16943
25.225 (b)(2) amended..............................................16943
25.251 (c) amended.................................................16943
25.252 (c) amended.................................................16943
25.272 (a) introductory text and (b) through (e) amended...........16943
25.273 Amended.....................................................16943
25.274 (a) amended.................................................16943
25.276 (c) amended.................................................16943
25.277 Amended.....................................................16943
25.281 (c) amended.................................................16943
25.282 (b) through (f) amended.....................................16943
25.283 (d) amended.................................................16943
25.284 (b) and (d) amended.........................................16943
25.286 (a) amended.................................................16943
25.291 (c)(2)(ii) and (d)(3) amended...............................16943
25.294 (c) amended.................................................16943
25.297 (b)(4) amended..............................................16943
25.300 (a), (c) and (d)(3) amended.................................16943
26.2 (a) amended; (b) revised......................................16943
26.3 Revised.......................................................16944
26.11 Amended.......................................................5604
26.37 Revised......................................................16944
26.40 (e) amended..................................................16944
26.43 Amended......................................................16944
26.44 (a) amended..................................................16944
26.46 (a) amended..................................................16944
26.47 Amended......................................................16944
26.50 (a) and (b) amended..........................................16944
26.50a (a), (b) introductory text and (2) introductory text 
        amended....................................................16944
26.51 (b)(2) amended...............................................16944
26.52 (b) and (c) amended..........................................16944
26.54 Amended......................................................16944
26.62a Amended.....................................................16944
26.65 Amended......................................................16944
26.66 Heading, (a) and (b) amended.................................16944
26.68a Amended.....................................................16944
26.70 Amended......................................................16944
26.70a Amended.....................................................16944
26.71 (c) and (d) amended..........................................16944
26.72 Amended......................................................16944
26.74 Amended......................................................16944
26.75 Amended......................................................16944
26.76 Amended......................................................16944
26.78 Amended......................................................16944
26.79 Introductory text and (a) amended............................16944
26.80 (a) and (b) amended..........................................16944
26.81 (a), (b) and (c) amended.....................................16944
26.87 Amended......................................................16944
26.95 (b) amended..................................................16944
26.96 (a), (b) and (c) amended.....................................16944
26.104 (b) amended.................................................16944
26.105 (a), (b) and (c) amended....................................16945
26.108 Heading amended.............................................16945

[[Page 957]]

26.110 Amended.....................................................16945
26.112 Heading, (b) and (d) heading revised; (d)(1) heading added 
                                                                    5604
    (a), (c)(1), (4) and (e) amended...............................16945
26.112a (b)(1), (3), (c)(1) and (e) amended........................16945
26.113 (c), (d) and (e) amended....................................16945
26.116 Amended.....................................................16945
26.119 Amended.....................................................16945
26.126 Amended.....................................................16945
26.128 Amended.....................................................16945
26.165 (a) introductory text and (1) amended.......................16945
26.172 (b) amended.................................................16945
26.173 (a), (c) introductory text and (2)(viii) amended............16945
26.174 (a) and (e) amended.........................................16945
26.193 (b) amended.................................................16945
26.194 (a) and (b) amended.........................................16945
26.197 Amended.....................................................16945
26.199 Amended.....................................................16945
26.199a (a) amended................................................16945
26.199b Amended....................................................16945
26.199c Amended....................................................16945
26.199d Introductory text and (b) amended..........................16945
26.199f (a) amended................................................16945
26.204a (b) introductory text amended..............................16945
26.205 (a)(8)(iv) amended..........................................16945
26.209 Amended.....................................................16945
26.210 (a) amended.................................................16945
26.220 (a) and (b) amended.........................................16945
26.221 (b)(2) amended..............................................16945
26.222 (b) and (c) amended.........................................16945
26.224 Amended.....................................................16945
26.275 (a) amended.................................................16945
26.276 Amended.....................................................16945
26.303 Amended.....................................................16945
26.305 Amended.....................................................16945
26.308 (b) amended.................................................16945
26.309 (a) and (c) introductory text amended.......................16945
26.310 (a) and (e) amended.........................................16945
26.314 (a), (b) introductory text and concluding text amended......16945
26.316 Amended.....................................................16945
26.318 Amended.....................................................16945
26.319 Amended.....................................................16945
26.331 (a) introductory text, (b) introductory text and concluding 
        text amended...............................................16945
27.2 (a) amended; (b) revised......................................16946
27.3 Revised.......................................................16946
27.11 Amended......................................................16946
27.30 (a) amended..................................................16946
27.58 Amended......................................................16946
27.59 Amended......................................................16946
27.76 (a) and (b) introductory text amended........................16946
27.77 (b) introductory text and (d) amended........................16946
27.136 (a) amended.................................................16946
27.137 Amended.....................................................16946
27.171 Amended.....................................................16946
27.172 Amended.....................................................16946
27.175 Amended.....................................................16946
27.181 (a) amended.................................................16946
27.182 (b)(1) and (d) amended......................................16946
27.204 (a), (b) introductory text and concluding text amended......16946
27.206 Amended.....................................................16946
27.208 Amended.....................................................16946
27.209 Amended.....................................................16946
27.221 (a) introductory text, (b) introductory text and concluding 
        text amended...............................................16946
28.4 Revised.......................................................16946
29.42 Revised......................................................16947
29.43 (a) amended; (b) revised.....................................16947
29.45 Amended......................................................16947
29.47 (a) and (c) amended..........................................16947
29.49 (a), (b) and (c) amended.....................................16947
29.55 (a) and (c) amended..........................................16947
29.59 Amended......................................................16947
30.1 (c) amended...................................................16947
30.11 Amended......................................................16947
30.21 (c) amended..................................................16947
30.24 (a) and (b) amended..........................................16947
30.31 (b) amended..................................................16947
30.36 Amended......................................................16947
30.43 Amended......................................................16947
30.51 Amended......................................................16947
31.11 Amended......................................................16947
31.42 Amended......................................................16948
31.43 Added........................................................16948
31.55 (c) amended..................................................16948
31.94 Amended......................................................16948
31.131 Amended.....................................................16948
31.135 Amended.....................................................16948
31.136 Amended.....................................................16948
31.137 Amended.....................................................16948
31.138 Amended.....................................................16948
31.223 Amended.....................................................16948
31.230 (d) amended.................................................16948
31.234 (a) amended.................................................16948
31.236 Amended.....................................................16948
31.237 Amended.....................................................16948

[[Page 958]]

                                  2007

27 CFR
                                                                   72 FR
                                                                    Page
Chapter I
9.57 Heading, (a), (b) introductory text and (c) introductory text 
        revised; (d) added; eff. 4-23-07...........................13692
9.207 Added.........................................................6167
9.208 Added; eff. 4-9-07...........................................10602
24.148 Revised.....................................................65454
24.246 Table amended...............................................51709
24.278 Revised.....................................................65454
24.279 Revised.....................................................65455

                                  2008

   (Regulations published from January 1, 2008, through April 1, 2008)

27 CFR
                                                                   73 FR
                                                                    Page
Chapter I
9.53 (c) heading and (5) revised; (c)(6) through (44) redesignated 
        as (c)(9) through (47); new (c)(6), (7) and (8) added; 
        eff. 4-10-08...............................................12877
9.157 (b) introductory text, (c) introductory text and (24) 
        revised; (b)(42) and (43) amended; (c)(25) through (38) 
        redesignated as (c)(31) through (44); (b)(44) through (47) 
        and new (c)(25) through (30) added.........................12880
9.210 Added; eff. 4-10-08..........................................12874


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