1513-0022 Law and Regs.

1513-0022

26 U.S.C.

Sec. 5511. Establishment and operation

This chapter (other than sections 5178(a)(2)(C), 5179, 5203(b), (c), and (d), and 5552) shall not be applicable with respect to the manufacture, by any process which includes evaporations from the mash or juice of any fruit, of any volatile fruit-flavor concentrate if--

(1) such concentrate, and the mash or juice from which it is produced, contains no more alcohol than is reasonably unavoidable in the manufacture of such concentrate; and

(2) such concentrate is rendered unfit for use as a beverage before removal from the place of manufacture, or (in the case of a concentrate which does not exceed 24 percent alcohol by volume) such concentrate is transferred to a bonded wine cellar for use in production of natural wine as provided in section 5382; and

(3) the manufacturer thereof makes such application, keeps such records, renders such reports, files such bonds, and complies with such other requirements with respect to the production, removal, sale, transportation, and use of such concentrate and of the mash or juice from which such concentrate is produced, as the Secretary may by regulations prescribe as necessary for the protection of the revenue.

(Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1392; amended Pub. L. 88-653, Sec. 3, Oct. 13, 1964, 78 Stat. 1085; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

27 CFR

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

1513-0022)

[T.D. ATF-104, 47 FR 23921, June 2, 1982, as amended by T.D. ATF-381, 61

FR 37003, July 16, 1996]

Sec. 18.54 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 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

1513-0022)

[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

1513-0022)

[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

1513-0022)

[T.D. ATF-455, 66 FR 29482, May 31, 2001]

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

1513-0022)

[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.

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

1513-0022)

(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

1513-0022)

(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. 18.65 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]