1513-0058 Laws and Regs.

-12-

1513-0058

26 U.S.C.

§ 5415. Records and returns

(a) Records

Every brewer shall keep records, in such form and containing such information as the Secretary shall prescribe by regulations as necessary for protection of the revenue. These records shall be preserved by the person required to keep such records for such period as the Secretary shall by regulations prescribe, and shall be available during business hours for examination and taking of abstracts therefrom by any internal revenue officer.

(b) Returns

Every brewer shall make true and accurate returns of his operations and transactions in the form, at the times, and for such periods as the Secretary shall by regulation prescribe.

§ 5555. Records, statements, and returns

(a) General

Every person liable to any tax imposed by this chapter, or for the collection thereof, shall keep such records, render such statements, make such returns, and comply with such rules and regulations as the Secretary may prescribe.

(b) Authority to waive

Whenever in this chapter any record is required to be made or kept, or statement or return is required to be made by any person, the Secretary may by regulation waive, in whole or in part, such requirement when he deems such requirement to no longer serve a necessary purpose. This subsection shall not be construed as authorizing the waiver of the payment of any tax.

(c) Photographic copies

Whenever in this chapter any record is required to be made and preserved by any person, the Secretary may by regulations authorize such person to record, copy, or reproduce by any photographic, photostatic, microfilm, microcard, miniature photographic, or other process, which accurately reproduces or forms a durable medium for so reproducing the original of such record and to retain such reproduction in lieu of the original. Every person who is authorized to retain such reproduction in lieu of the original shall, under such regulations as the Secretary may prescribe, preserve such reproduction in conveniently accessible files and make provision for examining, viewing, and using such reproduction the same as if it were the original. Such reproduction shall be treated and considered for all purposes as though it were the original record and all provisions of law applicable to the original shall be applicable to such reproduction. Such reproduction, or enlargement or facsimile thereof, shall be admissible in evidence in the same manner and under the same conditions as provided for the admission of reproductions, enlargements, or facsimiles of records made in the regular course of business under section 1732(b) of title 28 of the United States Code.

27 CFR

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))

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

1513-0085)

(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. 25.186 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]

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]

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 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]

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. 25.252 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))

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.

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]

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 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. 25.291 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 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;

(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

(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)

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 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))