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26 U.S.C.
§ 5181. Distilled spirits for fuel use
(a) In general
(1) Purposes for which plant may be established
On such application and bond and in such manner as the Secretary may prescribe by regulation, a person may establish a distilled spirits plant solely for the purpose of -
(A) producing, processing, and storing, and
(B) using or distributing, distilled spirits to be used exclusively for fuel use.
(2) Regulations
In prescribing regulations under paragraph (1) and in carrying out the provisions of this section, the Secretary shall, to the greatest extent possible, take steps to -
(A) expedite all applications;
(B) establish a minimum bond; and
(C) generally encourage and promote (through regulation or otherwise) the production of alcohol for fuel purposes.
(b) Authority to exempt
The Secretary may by regulation provide for the waiver of any provision of this chapter (other than this section or any provision requiring the payment of tax) for any distilled spirits plant described in subsection (a) if the Secretary finds it necessary to carry out the provisions of this section.
(c) Special rules for small plant production
(1) Applications
(A) In general
An application for an operating permit for an eligible distilled spirits plant shall be in such a form and manner, and contain such information, as the Secretary may by regulations prescribe; except that the Secretary shall, to the greatest extent possible, take steps to simplify the application so as to expedite the issuance of such permits.
(B) Receipt of application
Within 15 days of receipt of an application under subparagraph (A), the Secretary shall send a written notice of receipt to the applicant, together with a statement as to whether the application meets the requirements of subparagraph (A). If such a notice is not sent and the applicant has a receipt indicating that the Secretary has received an application, paragraph (2) shall apply as if a written notice required by the preceding sentence, together with a statement that the application meets the requirements of subparagraph (A), had been sent on the 15th day after the date the Secretary received the application.
(C) Multiple applications
If more than one application is submitted with respect to any eligible distilled spirits plant in any calendar quarter, the provisions of this section shall apply only to the first application submitted with respect to such plant during such quarter. For purposes of the preceding sentence, if a corrected or amended first application is filed, such application shall not be considered as a separate application, and the 15-day period referred to in subparagraph (A) shall commence with receipt of the corrected or amended application.
(2) Determination
(A) In general
In any case in which the Secretary under paragraph (1)(B) has notified an applicant of receipt of an application which meets the requirements of paragraph (1)(A), the Secretary shall make a determination as to whether such operating permit is to be issued, and shall notify the applicant of such determination, within 45 days of the date on which notice was sent under paragraph (1)(B).
(B) Failure to make determination
If the Secretary has not notified an applicant within the time prescribed under subparagraph (A), the application shall be treated as approved.
(C) Rejection of application
If the Secretary determines under subparagraph (A) that a permit should not be issued -
(i) the Secretary shall include in the notice to the applicant of such determination under subparagraph (A) detailed reasons for such determination, and
(ii) such determination shall not prejudice any further application for such operating permit.
(3) Bond
No bond shall be required for an eligible distilled spirits plant. For purposes of section 5212 and subsection (e)(2) of this section, the premises of an eligible distilled spirits plant shall be treated as bonded premises.
(4) Eligible distilled spirits plant
The term "eligible distilled spirits plant" means a plant which is used to produce distilled spirits exclusively for fuel use and the production from which does not exceed 10,000 proof gallons per year.
(d) Withdrawal free of tax
Distilled spirits produced under this section may be withdrawn free of tax from the bonded premises (and any premises which are not bonded by reason of subsection (c)(3)) of a distilled spirits plant exclusively for fuel use as provided in section 5214(a)(12).
(e) Prohibited withdrawal, use, sale, or disposition
(1) In general
Distilled spirits produced under this section shall not be withdrawn, used, sold, or disposed of for other than fuel use.
(2) Rendering unfit for use
For protection of the revenue and under such regulations as the Secretary may prescribe, distilled spirits produced under this section shall, before withdrawal from the bonded premises of a distilled spirits plant, be rendered unfit for beverage use by the addition of substances which will not impair the quality of the spirits for fuel use.
(f) Definition of distilled spirits
For purposes of this section, the term "distilled spirits" does not include distilled spirits produced from petroleum, natural gas, or coal.
§ 5182. Cross references
For provisions requiring payment of special (occupational) tax as wholesale liquor dealer, see section 5111, or as retail liquor dealer, see section 5121.
§ 5207. Records and reports
(a) Records of distilled spirits plant proprietors
Every distilled spirits plant proprietor shall keep records in such form and manner as the Secretary shall by regulations prescribe of:
(1) The following production activities -
(A) the receipt of materials intended for use in the production of distilled spirits, and the use thereof,
(B) the receipt and use of distilled spirits received for redistillation, and
(C) the kind and quantity of distilled spirits produced.
(2) The following storage activities -
(A) the kind and quantity of distilled spirits, wines, and alcoholic ingredients entered into storage,
(B) the kind and quantity of distilled spirits, wines, and alcoholic ingredients removed, and the purpose for which removed, and
(C) the kind and quantity of distilled spirits returned to storage.
(3) The following denaturation activities -
(A) the kind and quantity of denaturants received and used or otherwise disposed of,
(B) the kind and quantity of distilled spirits denatured, and
(C) the kind and quantity of denatured distilled spirits removed.
(4) The following processing activities -
(A) all distilled spirits, wines, and alcoholic ingredients received or transferred,
(B) the kind and quantity of distilled spirits packaged or bottled, and
(C) the kind and quantity of distilled spirits removed from his premises.
(5) Such additional information with respect to activities described in paragraphs (1), (2), (3), and (4), and with respect to other activities, as may by regulations be required.
(b) Reports
Every person required to keep records under subsection (a) shall render such reports covering his operations, at such times and in such form and manner and containing such information, as the Secretary shall by regulations prescribe.
(c) Preservation and inspection
The records required by subsection (a) and a copy of each report required by subsection (b) shall be available for inspection by any internal revenue officer during business hours, and shall be preserved by the person required to keep such records and reports for such period as the Secretary shall by regulations prescribe.
(d) Penalty For penalty and forfeiture for refusal or neglect to keep records required under this section, or for false entries therein, see sections 5603 and 5615(5).
27 CFR
§ 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
(10) Signature and title of the consignor with the penalties of perjury statement required by §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 §19.100.
§ 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, for transmittal 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 AFT officers, any application approved by the appropriate TTB officer under the provisions of this section.
§ 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
(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.
The supporting information required by paragraph (a)(5) of §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 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 §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))
§ 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.
§ 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 §19.914 or §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 §19.915. A new or strengthening bond may be required (see §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.
§ 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 §19.914, §19.915 or §19.916, the proprietor shall submit, within 30 days of any such change, a notice in letter form stating the changes in officers, director, or principal persons. A new list reflecting the changes will be submitted with the letter notice.
(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 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 §19.921 regarding change in type of plant are applicable to each proprietor. Entries into these records will be in the manner prescribed in §§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))
§ 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").
§ 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 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.
§ 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 §19.988. The results of the inventory shall be posted in the applicable records required by §19.982.
§ 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.
§ 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
§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 §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 unfit for beverage use to the first receptacle where spirits are to be deposited.
§ 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.
§ 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).
§ 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 §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 §§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.
§ 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 §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 §19.723 apply.
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]
§ 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 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 §19.999 or for fuel alcohol by §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.
§ 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 §19.986(c).
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))
§ 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 §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 §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.
c) Transfer procedures.
The procedures in §§19.999 through 19.1001 pertain only to the transfer of spirits between alcohol fuel plants. The procedures in §§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 §19.1008(b). The procedures in §§19.508, 19.510 and 19.770 pertain to the transfer of spirits from a distilled spirits plant to an alcohol fuel plant.
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))
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))
§ 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 area supervisor, 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 §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 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.
§ 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.
§ 19.1006 Other materials.
If a proprietor desires to use a material not authorized under §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 §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.
§ 19.1007 Samples.
A proprietor may take samples of spirits and fuel alcohol for testing and analysis. Samples of spirits may not be 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 §19.986.
§ 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.
| File Type | application/msword |
| File Title | §19 |
| Author | ATF |
| Last Modified By | TTB |
| File Modified | 2009-12-09 |
| File Created | 2009-12-09 |