The Internal Revenue Code (IRC), at 26 U.S.C. 5111â5114, authorizes drawback (refund) of excise tax paid on distilled spirits that are subsequently used in the manufacture medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume that are unfit for beverage purposes, and it authorizes the Secretary to prescribe regulations to ensure that drawback is not paid for unauthorized purposes. Under these authorities, TTB has issued regulations to require that nonbeverage drawback claimants show that the taxpaid distilled spirits for which a drawback claim is made were used in the manufacture of a product unfit for beverage use. This showing is based on the productâs formula and process, which is submitted on form TTB F 5154.1 or electronically via TTB's Formulas Online system. This information collection is necessary to protect the revenue as it allows TTB to determine if a given product is unfit for beverage use and is of a type authorized for drawback by the IRC. This information collection also is beneficial to respondents as TTBâs determination allows claimants to know in advance of actual manufacture if a product is or is not fit for beverage purposes and thus eligible or not eligible for drawback. In addition, by filing a letterhead notice, manufacturers may adopt approved nonbeverage product formulas for use at other plants they operate, and they may adopt such formulas from predecessor proprietors.
Program changes: As a matter of agency discretion, TTB has revised the TTB F 5154.1 form and its instructions for clarity, and has eliminated certain data fields and added others to better match the data collected by the Formula and Process for Nonbeverage Product approval application in its FONL system. Specifically, TTB has removed fields that collected data regarding finished products that were to be used in alcohol beverages (item 12 on the previous edition of TTB F 5154.1) since that information is not needed for TTB to determine if the finished product described on the form is or is not fit for beverage use. TTB has added a data field for a respondent to supply a mailing address if different from the address where the product will be produced, and has added data fields for the productâs theoretical yield, actual yield, density of the final product, manufacturing process, and unfit for beverage purposes statement (new Items 12a through 12e) to match data fields contained in the equivalent FONL application. In addition, TTB has revised the âFor TTB Use Onlyâ portion of the form to only state any sample and attachment identification number, and the submission identification number. TTB will no longer record the alcohol by volume percentage, the TTB analyst, and date in its section of the form. TTB does not believe that these changes to the form effect its estimated burden. As for the instructions provided on TTB F 5154.1, TTB has grouped the instructions into General and Specific Instructions, has removed the requirement to submit the form in triplicate and the requirement to send a self-addressed stamped envelope with a submission, has updated the TTB Laboratory mailing address, and has noted that the information may be submitted to TTB via its FONL system. TTB also has updated the instructions to provide better guidance and examples, and to direct the respondent to the Drawback Tutorial on the TTB website (see https://www.ttb.gov/ssd/drawbacktutorial.shtml). In addition, TTB has added Privacy Act Notice to TTB F 5154.1.
Adjustments: Due to changes in agency estimates based on recent data supplied by the TTB Laboratory, which processes this information collection, we are decreasing the number of respondents, but we are increasing the number of responses filed per respondent, the total number of responses, and the resulting estimated burden hours. These increases result from more comprehensive data now available to TTB via its electronic FONL system and an increase in the number of nonbeverage product formulas submitted to TTB for evaluation as to their eligibility for drawback under the IRC.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form TTB F 5154.1 Formula and Process for Nonbeverage Products
1513-0021 Supporting Statement (10-2018).docx
FONL User Guide 2.0.pdf
Formula and Process for Nonbeverage Products