1513-0028 Law and Regs.

1513-0028

26 U.S.C.

Sec. 5271. - Permits

(a) Requirements

No person shall -

(1) procure or use distilled spirits free of tax under the provisions of section 5214(a)(2) or (3); or

(2) procure, deal in, or use specially denatured distilled spirits; or

(3) recover specially or completely denatured distilled spirits, until he has filed an application with and received a permit to do so from the Secretary.

(b) Form of application and permit

(1) The application required by subsection (a) shall be in such form, shall be submitted at such times, and shall contain such information, as the Secretary shall by regulations prescribe.

(2) Permits under this section shall, under such regulations as the Secretary shall prescribe, designate and limit the acts which are permitted, and the place where and time when such acts may be performed. Such permits shall be issued in such form and under such conditions as the Secretary may by regulations prescribe.

(c) Disapproval of application

Any application submitted under this section may be disapproved and the permit denied if the Secretary, after notice and opportunity for hearing, finds that -

(1) in case of an application to withdraw and use distilled spirits free of tax, the applicant is not authorized by law or regulations issued pursuant thereto to withdraw or use such distilled spirits; or

(2) 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 this chapter; or

(3) the applicant has failed to disclose any material information required, or made any false statement as to any material fact, in connection with his application; or

(4) the premises on which it is proposed to conduct the business are not adequate to protect the revenue.

(d) Changes after issuance of permit

With respect to any change relating to the information contained in the application for a permit issued under this section, the Secretary may by regulations require the filing of written notice of such change and, where the change affects the terms of the permit, require the filing of an amended application.

(e) Suspension or revocation

If, after notice and hearing, the Secretary finds that any person holding a permit issued under this section -

(1) has not in good faith complied with the provisions of this chapter or regulations issued thereunder; or

(2) has violated the conditions of such permit; or

(3) has made any false statement as to any material fact in his application therefor; or

(4) has failed to disclose any material information required to be furnished; or

(5) has violated or conspired to violate any law of the United States relating to intoxicating liquor, or has been convicted of any offense under this title punishable as a felony or of any conspiracy to commit such offense; or

(6) is, in the case of any person who has a permit under subsection (a)(1) or (a)(2), by reason of his operations, no longer warranted in procuring or using the distilled spirits or specially denatured distilled spirits authorized by his permit; or

(7) has, in the case of any person who has a permit under subsection (a)(2), manufactured articles which do not correspond to the descriptions and limitations prescribed by law and regulations; or

(8) has not engaged in any of the operations authorized by the permit for a period of more than 2 years;

such permit may, in whole or in part, be revoked or be suspended for such period as the Secretary deems proper.

(f) Duration of permits

Permits issued under this section, unless terminated by the terms of the permit, shall continue in effect until suspended or revoked as provided in this section, or until voluntarily surrendered.

(g) Posting of permits

Permits issued under this section, to use distilled spirits free of tax, to deal in, or use specially denatured distilled spirits, or to recover specially or completely denatured distilled spirits, shall be kept posted available for inspection on the premises covered by the permit.

(h) Regulations

The Secretary shall prescribe all necessary regulations relating to issuance, denial, suspension, or revocation, of permits under this section, and for the disposition of distilled spirits (including specially denatured distilled spirits) procured under permit pursuant to this section which remain unused when such permit is no longer in effect

27 CFR

Sec. 20.41 Application for industrial alcohol user permit.

Application for Permit, Form 5150.22

(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 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 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. 20.45 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 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]

Sec. 22.41 Application for industrial alcohol user permit.

Application for Permit, Form 5150.22

(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 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 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. 22.45 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]