The Internal Revenue Code (IRC), at 26
U.S.C. 5111–5114, 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 product’s 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 TTB’s 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 product’s 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 “For TTB Use Only”
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