[Federal Register: August 5, 1996 (Volume 61, Number 151)]
[Proposed Rules]
[Page 40568-40587]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
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DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
27 CFR Parts 4, 5, 7, 19, 20, 22, 24, 25, 27, 70, 250, and 251
[Notice No. 834]
RIN 1512-AA72
Importation of Distilled Spirits, Wine and Beer (90 D 003)
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
the Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: ATF is proposing to revise and recodify the regulations
pertaining to the importation of distilled spirits, wine and beer. The
purpose of this revision and recodification is to update and simplify
the regulations in 27 CFR part 251, and to reissue those regulations as
part 27 of the same chapter. The proposed changes will reduce the
regulatory burden on importers of distilled spirits, wine and beer.
DATES: Written comments must be received on or before October 4, 1996.
ADDRESSES: Send written comments to: Chief, Wine, Beer and Spirits
Regulations Branch, Alcohol and Tobacco Programs Division, Bureau of
Alcohol, Tobacco and Firearms, PO Box 50221, Washington, DC 20091-0221.
Attn: Notice No. 834.
FOR FURTHER INFORMATION CONTACT: Jennifer Kirn, Alcohol Import-Export
Branch, Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts
Ave., NW, Washington, DC 20226, telephone (202-927-8110).
SUPPLEMENTARY INFORMATION:
Background
These proposed regulations pertaining to the importation of
distilled spirits, wine and beer revise and recodify existing
regulations in part 251 in order to update and simplify present
requirements. The importation regulations now found in 27 CFR part 251
will be reissued as part 27 of the same chapter.
Certain restrictive regulations have been eliminated and, where
appropriate, ATF rulings and Internal Revenue Service (IRS) Revenue
Rulings have been incorporated into the proposed importation
regulations. Current United States Customs Service (Customs Service)
procedures are also incorporated in this notice where appropriate.
Also, many existing regulations have been rewritten in order to clarify
current requirements.
The organization of the proposed importation regulations has been
changed from the organization of 27 CFR part 251, in order to put
related regulations together. Some of the substantive proposed changes
from part 251 are noted below.
Change in Designation of Office
The designation of Product Compliance Branch has been changed where
it appeared in existing regulations in part 251 to Wine, Beer, and
Spirits Regulations Branch in conformity with the change of office
designations resulting from the executive level restructuring effective
October 2, 1994.
Alternate Methods or Procedures
Proposed subpart C contains proposed regulations changing the
alternate methods or procedures requirements for importers. Importers
will no longer be required to file an application in triplicate, with
the regional director (compliance) for each place of business. Under
the proposed regulations, importers will only be required to file one
application with the regional director (compliance) for each place of
business.
Special Occupational Taxes, Warehouse Receipts Covering Distilled
Spirits
Proposed subpart D contains clarifying amendments to existing
regulations pertaining to importers engaged in the business of selling,
or offering for sale, distilled spirits, wines or beer, and warehouse
receipts covering distilled spirits.
Commercial Samples--Tax Free
In proposed Subpart E, the quantity of distilled spirits, wine or
beer which may be imported free of internal revenue tax as samples for
use in soliciting orders for products of foreign countries has been
increased slightly and changed to metric quantities, to be consistent
with the metric quantities given in the Harmonized Tariff Schedule of
the United States (19 U.S.C. 1202).
ATF and IRS Rulings
Also, proposed Subpart E will incorporate pertinent parts of ATF
Ruling 77-33, 1977 ATF C.B. 179, into the proposed importation
regulations as recodified, and render the ruling obsolete. ATF Ruling
77-33 held that alcohol may be used to increase the alcohol content in
wine provided such use of alcohol is an authorized procedure and is
consistent with a standard winemaking process in the country of origin.
Wine produced in this manner which is imported into the United States
will be taxed as a wine, so long as the alcoholic content of that wine
does not exceed 24 percent by volume. Imported products which contain
distilled spirits and which do not meet the conditions described in
proposed 27 CFR 27.44, will be taxed as distilled spirits.
In proposed Subpart F, ATF Ruling 83-6, ATF Q.B. 1983-4, 93, and
ATF Ruling 84-3, ATF Q.B. 1984-4, 71, relating to the use of
certificates of label (COLA) approval by a person other than the owner,
will be declared obsolete, with pertinent parts of these rulings
incorporated into proposed subpart F as described below. These rulings
held that an importer may use COLAs to release products from customs
custody only if the certificates are issued to that importer but that
shipments may be released to an importer of record who is not the owner
of the COLA provided certain conditions are met.
Also in proposed subpart F, Revenue Ruling 56-579, C.B. 1956-2,
1031, will be declared obsolete, upon incorporation of pertinent parts
of that ruling into the proposed regulations. Revenue Ruling 56-579
held that distilled spirits withdrawn from customs bond solely for the
use of persons determined by the collector of customs to be entitled to
free withdrawal privileges such as duly accredited foreign embassy
personnel, the foreign diplomatic corps, or members of the armed
services of foreign countries on active duty in the United States are
not subject to labeling and liquor bottle regulations.
Alcoholic Beverage Health Warning Statement
Proposed subpart F contains information about the health warning
labeling requirements for alcoholic beverages bottled on or after
November 18, l989. The proposed regulations
[[Page 40569]]
require that a health warning statement appear on the labels of all
containers of alcoholic beverages sold or distributed. Sale and
distribution includes sampling or any other distribution not for sale.
Samples for Foreign Embassy Use--Exempt From Marking, Bottling and
Labeling Requirements
Proposed subpart F contains requirements relating to samples of
distilled spirits or wine solely for the use of foreign embassy
personnel. Under the proposed regulations, samples to be used solely
for the use of the embassy will be exempted from most of the marking,
bottling and labeling requirements otherwise applicable.
Certificates of Origin
Proposed subpart F provides that distilled spirits and wine
imported in bottles shall not be released from customs custody unless
the invoice for such products is accompanied by a certificate of age
and origin in accordance with 27 CFR 5.52 (relating to distilled
spirits) or a certificate of origin and identity in accordance with 27
CFR 4.45, (relating to wine).
Section 5010 Credit Provisions
Proposed subpart F also contains information regarding the credit
allowable under 26 U.S.C. 5010 against the tax imposed on distilled
spirits by 26 U.S.C. 5001. The credit against the tax imposed on
distilled spirits is allowed under 26 U.S.C. 5010 on each proof gallon
of alcohol derived from eligible wine, or from eligible flavors which
do not exceed 2\1/2\ percent of the finished product on a proof gallon
basis.
Wine Less Than 7 Percent Alcohol by Volume
In proposed subpart F, wine having less than 7 percent alcohol by
volume must be labeled prior to importation, or, if entered into
customs bond, at the time of withdrawal therefrom, under regulations
administered by the U.S. Food and Drug Administration (FDA), rather
than under the labeling requirements of the Federal Alcohol
Administration Act (FAA). In addition, under the Internal Revenue Code
of 1986 (IRC), such wine labels should name the kind of wine (class and
type), alcoholic content, net content and, if it is an effervescent
wine, whether it is sparkling wine or carbonated wine.
Closures
Subpart F proposes regulations requiring closures or other devices
on imported containers of distilled spirits. These proposed regulations
will explain the criteria for closures or other devices.
Use of Other Importer's Certificates of Label Approval
Proposed subpart F also discusses use of certificates of label
approval (COLA) (ATF F 5100.31) by persons other than the holder of
such certificates for purposes of obtaining release of imported
products from customs custody. The proposed regulations follow the
procedures provided for in ATF Rulings 83-6 and 84-3, supra.
Record/Filing Requirements
Proposed subpart H contains information instructing importers who
have obtained certificates of label approval (COLA) to maintain the
original COLAs on file at the basic permit location for not less than 3
years following the last importation of such products. This is the
usual retention period for required records under most ATF regulations.
A record retention requirement is necessary to facilitate the
enforcement of the labeling laws and to deter the use of false,
fraudulent, and inaccurate COLAs. Further, the paperless entry
procedures pursued by the Customs Service makes the retention of these
records particularly necessary.
Bulk Importations
Proposed Subpart I discusses the importation of distilled spirits,
wine and beer in bulk. Bulk beer may be imported in containers under
the provisions of 27 CFR, part 7. Bulk distilled spirits for
nonindustrial use will not be released from customs custody unless the
invoice is accompanied by a certificate of age and origin in accordance
with 27 CFR, part 5. Bulk wine for nonindustrial use may be imported in
containers in accordance with the provisions of 27 CFR, part 4.
Removal of Customs Officers from Customs Bonded Warehouses
Subpart K also proposes changes in importation procedures resulting
from removal of U. S. Customs officers from customs bonded warehouse
regulations.
These proposed changes implement procedures as a result of the
withdrawal of customs officers from both customs bonded warehouses and
customs manufacturing bonded warehouses. The Customs Service withdrew
these officers in accordance with Treasury Decision 82-204, 47 FR
49355, November 1, 1982.
Following the implementation of changes brought about by T.D. 82-
204, when spirits are transferred directly from the place of
importation to distilled spirits plant premises without being deposited
in a customs bonded warehouse, the customs officer remains responsible
for signing the transfer record. However, when spirits are transferred
from a customs bonded warehouse to distilled spirits premises, the
proprietor of the customs bonded warehouse is responsible for signing
the transfer record. While existing regulations specifically state that
distilled spirits plant proprietors are not required to file an
application on ATF Form 5100.16 to receive imported spirits from
customs custody, such statement has been deleted from the proposed
subpart K to avoid confusion. Finally, under the proposed regulations,
importers are no longer required to submit copies of the transfer
record and package gauge records to ATF. Instead, the proposed
regulations require that a copy of such records be retained as part of
the importer's records.
The following table is provided to give a better understanding of
the regulation changes proposed. The table provides the applicable
regulatory section from which the proposed regulation is derived. In
addition the table describes the extent to which a regulation is
revised or whether it is a new regulatory section.
Derivation Table for Part 27
------------------------------------------------------------------------
The requirements of Are derived from
------------------------------------------------------------------------
Subpart A
------------------------------------------------------------------------
Sec. Sec.
27.1...................................... 251.1 P
27.2...................................... N
27.3...................................... 251.2 P
27.4-27.10 [Reserved]
------------------------------------------------------------------------
[[Page 40570]]
Subpart B
------------------------------------------------------------------------
Sec. Sec.
27.11..................................... 251.11 P
Alcoholic beverage........................ 251.11 P
ATF Officer............................... 251.11 N
Beer...................................... 251.11 O
Bonded premises-distilled spirits plant... 251.11 O
Bulk beer................................. 251.11 N
Bulk distilled spirits.................... 251.11 O
Bulk wine................................. 251.11 N
Cereal beverage........................... 251.11 N
CFR....................................... 251.11 0
Commercial bank........................... 251.11 N
Container................................. 251.11 N
Customs bonded warehouse.................. 251.11 C
Customs officer........................... 251.11 O
Delegate.................................. 251.11 N
Director.................................. 251.11 P
Distilled spirits or spirits.............. 251.11 P
Distilled spirits plant................... 251.11 P
Effective tax rate........................ 251.11 O
Eligible flavor........................... 251.11 O
Eligible wine............................. 251.11 O
Foreign-trade zone or zone................ 251.11 N
5010 credit............................... 251.11 N
Gallon or wine gallon..................... 251.11 O
Importer.................................. 251.11 O
Industrial or nonindustrial use of spirits 251.11 N
or wine.
Kind...................................... 251.11 P
Liquors................................... 251.11 N
Liquor bottle............................. 251.11 O
Liter..................................... 251.11 N
Malt beverage............................. 251.11 N
Package................................... 251.11 N
Person.................................... 251.11 O
Port Director of Customs.................. 251.11 P
Proof..................................... 251.11 O
Proof Gallon.............................. 251.11 O
Region.................................... 251.11 O
Regional Director (Compliance)............ 251.11 O
Secretary................................. 251.11 N
Specially denatured spirits............... 251.11 N
Standard effective tax rate............... 251.11 N
Tank truck................................ 251.11 N
Tax....................................... 251.11 N
This chapter.............................. 251.11 N
United States............................. 251.11 O
U.S.C..................................... 251.11 O
Wine...................................... 251.11 C
27.12-27.20 [Reserved]
------------------------------------------------------------------------
Subpart C
------------------------------------------------------------------------
27.21..................................... 251.221 P
27.22-22.30 [Reserved]
------------------------------------------------------------------------
Subpart D
------------------------------------------------------------------------
27.31..................................... 251.30 P
27.32..................................... 251.31 P
27.33-27.40 [Reserved]
------------------------------------------------------------------------
Subpart E
------------------------------------------------------------------------
27.41..................................... 251.40 P
27.42..................................... 251.40a O
27.43..................................... 251.41 P
27.44..................................... 251.42 C
27.45..................................... 251.42a P
[[Page 40571]]
27.46..................................... 251.43 P
27.47..................................... 251.44 P
27.48..................................... 251.45 P
27.49..................................... 251.46 O
27.50..................................... 251.48 P
27.51..................................... 251.48a P
27.52..................................... 251.49 P
27.53-27.60 [Reserved]
------------------------------------------------------------------------
Subpart F
------------------------------------------------------------------------
27.61..................................... 251.55 P
27.62..................................... N
27.63..................................... 251.56 P
27.64..................................... 251.57 O
27.65..................................... 251.58 P
27.66..................................... N
27.67..................................... 251.59 P
27.68..................................... N
27.69..................................... 251.60 C
27.70..................................... N
27.71..................................... N
27.72..................................... 251.61 P
27.73..................................... 251.61 & 251.62 C
27.74..................................... 251.74 C
27.75..................................... 251.75 C
27.76..................................... 251.76 P
27.77..................................... 251.76 P
27.78..................................... 251.77 P
27.79-27.80 [Reserved]
------------------------------------------------------------------------
Subparts G-H [Reserved]
------------------------------------------------------------------------
27.81-27.110 [Reserved]
------------------------------------------------------------------------
Subpart I
------------------------------------------------------------------------
27.111.................................... 251.121 P
27.112.................................... 251.120 P
27.113.................................... N
27.114.................................... N
27.115-27.120 [Reserved]
------------------------------------------------------------------------
Subpart J
------------------------------------------------------------------------
27.121.................................... 251.133 C
27.122.................................... 251.134 O
27.123.................................... 251.136 P
27.124.................................... 251.137 P
27.125.................................... 251.138 O
27.126.................................... 251.139 O
27.127-27.130 [Reserved]
------------------------------------------------------------------------
Subpart K
------------------------------------------------------------------------
27.131.................................... 251.171 P
27.132.................................... 251.172 P
27.133.................................... 251.173 C
27.134.................................... 251.174 P
27.135.................................... 251.175 P
27.136-27.140 [Reserved]
------------------------------------------------------------------------
Subpart L
------------------------------------------------------------------------
27.141.................................... 251.181 P
27.142.................................... 251.182 O
27.143.................................... 251.183 O
27.144.................................... 251.184 O
27.145.................................... 251.185 O
[[Page 40572]]
27.146-27.150 [Reserved]
------------------------------------------------------------------------
Subpart M
------------------------------------------------------------------------
27.151.................................... 251.201 O
27.152.................................... 251.202 O
27.153.................................... 251.204 P
27.154.................................... 251.206 P
27.155.................................... 251.207 P
27.156.................................... 251.209 P
27.157-27.160 [Reserved]
------------------------------------------------------------------------
Action Legend:
C--Complete revision.
O--No revision.
P--Partial revision.
N--New section.
Distribution Table for Part 251
------------------------------------------------------------------------
The requirements of Are now found in
------------------------------------------------------------------------
Subpart A
------------------------------------------------------------------------
Sec. Sec.
251.1..................................... 27.1
251.2..................................... 27.3
------------------------------------------------------------------------
Subpart B
------------------------------------------------------------------------
251.11.................................... 27.11
------------------------------------------------------------------------
Subpart C
------------------------------------------------------------------------
251.30.................................... 27.31
251.31.................................... 27.32
------------------------------------------------------------------------
Subpart D
------------------------------------------------------------------------
251.40.................................... 27.41
251.40a................................... 27.42
251.41.................................... Obsolete.
251.42.................................... 27.44
251.42a................................... 27.45
251.43.................................... 27.46
251.44.................................... 27.47
251.45.................................... 27.48
251.46.................................... 27.49
251.48.................................... 27.50
251.48a................................... 27.51
251.49.................................... 27.52
------------------------------------------------------------------------
Subpart E
------------------------------------------------------------------------
251.55.................................... 27.61
251.56.................................... 27.63
251.57.................................... 27.64
251.58.................................... 27.65
251.59.................................... 27.67
251.60.................................... 27.69
251.61.................................... 27.72
251.62.................................... 27.72 & 27.73
251.74.................................... 27.74
251.75.................................... 27.75
251.76.................................... 27.76
251.77.................................... 27.77
------------------------------------------------------------------------
[[Page 40573]]
Subpart H
------------------------------------------------------------------------
251.120................................... 27.112
251.121................................... 27.111
------------------------------------------------------------------------
Subpart I
------------------------------------------------------------------------
251.133................................... 27.121
251.134................................... 27.122
251.136................................... 27.123
251.137................................... 27.124
251.138................................... 27.125
251.139................................... 27.126
------------------------------------------------------------------------
Subpart L
------------------------------------------------------------------------
251.171................................... 27.131
251.172................................... 27.132
251.173................................... 27.133
251.174................................... 27.134
251.175................................... 27.135
------------------------------------------------------------------------
Subpart M
------------------------------------------------------------------------
251.181................................... 27.141
251.182................................... 27.142
251.183................................... 27.143
251.184................................... 27.144
251.185................................... 27.145
------------------------------------------------------------------------
Subpart N
------------------------------------------------------------------------
251.201................................... 27.151
251.202................................... 27.152
251.204................................... 27.153
251.206................................... 27.154
251.207................................... 27.155
251.208................................... Obsolete.
251.209................................... 27.156
------------------------------------------------------------------------
Subpart O
------------------------------------------------------------------------
251.221................................... 27.21
------------------------------------------------------------------------
Public Participation--Written Comments
ATF requests written comments or suggestions concerning these
proposed regulations from all interested persons. All written comments
received on or before the closing date will be carefully considered.
Comments received after that date will be given the same consideration
if it is practical to do so, but assurance of consideration cannot be
given except as to comments received on or before the closing date.
ATF will not recognize any material in the comments as
confidential. Comments may be disclosed to the public. Any material
which the commenter considers to be confidential or inappropriate for
disclosure should not be included in the comment. The name of the
person submitting the comment is not exempt from disclosure.
Comments may also be submitted by facsimile transmission during the
hours of 8 a.m. to 3 p.m. (Eastern time) to (202)-927-8602, provided
the comment is: (1) Legible; (2) 8\1/2\'' x 11'' in size; (3) contains
a written signature; and (4) three pages or less in length. This
limitation is necessary in order to assure reasonable access to the
equipment. Comments sent by FAX in excess of three pages will not be
accepted. Receipt of FAX transmittals will not be acknowledged.
Facsimile transmitted comments will be treated as originals.
During the comment period, any person may request an opportunity to
present oral testimony at a public hearing. However, the Director
reserves the right, in light of all circumstances, to determine if a
public hearing will be held.
Disclosure
Copies of this notice, and the written comments will be available
for public inspection from 7 a.m. to 3:30 p.m. in the ATF Reference
Library, Office of Public Affairs and Disclosure, Room 6480, 650
Massachusetts Ave., NW, Washington, DC 20226.
Regulatory Flexibility Act
It is hereby certified that this proposed regulation will not have
a significant economic impact on a substantial number of small
entities. Accordingly, a regulatory flexibility analysis is not
required because the
[[Page 40574]]
proposal, if promulgated as a final rule, is not expected (1) to have a
secondary, or incidental effect on a substantial number of small
entities; or (2) to impose, or otherwise cause a significant increase
in the reporting, recordkeeping, or other compliance burdens on a
substantial number of small entities.
Pursuant to section 7805(f) of the Internal Revenue Code, this
regulation has been submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on its impact on small
business.
Executive Order 12866
It has been determined that this proposed rule is not a significant
regulatory action as defined in Executive Order 12866. Therefore, a
regulatory assessment is not required.
Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, Pub. L. 104-
13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR part
1320, do not apply to this notice since the only collection of
information involved was previously approved under OMB Control No.
1512-0352 and OMB Control No. 1512-0250 and is proposed to be
recodified without change.
Drafting Information
The principal author of this document is Jennifer Kirn, Alcohol
Import-Export Branch, Bureau of Alcohol, Tobacco and Firearms.
Lists of Subjects
27 CFR Part 4
Advertising, Consumer protection, Customs duties and inspection,
Imports, Labeling, Packaging and containers.
27 CFR Part 5
Advertising, Consumer protection, Customs duties and inspection,
Imports, Labeling, Packaging and containers.
27 CFR Part 7
Advertising, Consumer protection, Customs duties and inspection,
Imports, Labeling, Packaging and containers.
27 CFR Part 16
Beer, Consumer protection, Customs duties and inspection, Health,
Imports, Labeling, Liquors, Packaging and containers, Safety, and Wine.
27 CFR Part 19
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations (Government agencies), Chemicals,
Claims, Customs duties and inspection, Electronic fund transfers,
Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging
and containers, Puerto Rico, Reporting and recordkeeping requirements,
Research, Security measures, Spices and flavorings, Surety bonds,
Transportation, Vinegar, Virgin Islands, Warehouses, Wine.
27 CFR Part 20
Administrative practice and procedure, Advertising, Alcohol,
Authority delegations (Government agencies), Chemicals, Claims,
Cosmetics, Labeling, Packaging and containers, Reporting and
recordkeeping requirements, Surety bonds, Transportation.
27 CFR Part 22
Administrative practice and procedure, Advertising, Alcohol,
Authority delegations (Government agencies), Chemicals, Claims,
Cosmetics, Labeling, Packaging and containers, Reporting and
recordkeeping requirements, Surety bonds, Transportation.
27 CFR Part 25
Administrative practice and procedure, Authority delegations
(Government agencies), Beer, Claims, Electronic fund transfers, Excise
taxes, Labeling, Packaging and containers, Reporting and recordkeeping
requirements, Research, Surety bonds, Transportation.
27 CFR Part 27
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations (Government agencies), Beer,
Cosmetics, Customs duties and inspection, Excise taxes, Imports,
Labeling, Liquors, Packaging and containers, Perfume, Reporting and
recordkeeping requirements, Transportation, Wine.
27 CFR Part 70
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations (Government agencies), Claims, Excise
taxes, Firearms and ammunition, Government employees, Law enforcement,
Law enforcement officers, Tobacco.
27 CFR Part 250
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations, Beer, Customs duties and inspection,
Electronic Funds Transfers, Excise taxes, Liquors, Packaging and
containers, Reporting requirements, Surety bonds, Transportation, U.S.
possessions, Wine.
27 CFR Part 251
Administrative practice and procedure, Alcohol and alcoholic
beverages, Authority delegations, Beer, Customs duties and inspection,
Excise taxes, Imports, Labeling, Liquors, Packaging and containers,
Perfume, Reporting requirements, Transportation, Wine.
Authority and Issuance
Title 27, Chapter I, 27 CFR Parts 4, 5, 7, 19, 20, 22, 24, 25, 27,
70, 250 and 251 are proposed to be amended as follows:
PART 4--LABELING AND ADVERTISING OF WINE
Paragraph 1. The authority citation for 27 CFR part 4 continues to
read as follows:
Authority: 27 U.S.C. 205, unless otherwise noted.
Par. 2. The table of contents is amended by removing from the CROSS
REFERENCES section the phrase ``27 CFR Part 251--Importation of
Distilled Spirits, Wine and Beer.'' and by adding the phrase ``27 CFR
Part 27--Importation of Distilled Spirits, Wine and Beer.'' immediately
after ``27 CFR Part 16--Alcoholic Beverage Health Warning Statement.''.
PART 5--LABELING AND ADVERTISING OF DISTILLED SPIRITS
Par. 3. The authority citation for 27 CFR part 5 continues to read
as follows:
Authority: 26 U.S.C. 5301, 7805, 27 U.S.C. 205.
Sec. 5.2 [Amended]
Par. 4. Section 5.2 is amended by removing the reference to ``27
CFR Part 251--Importation of Distilled Spirits, Wine and Beer.'' and by
adding the reference ``27 CFR Part 27--Importation of Distilled
Spirits, Wine and Beer'' immediately after ``27 CFR Part 19--Distilled
Spirits Plants.''.
PART 7--LABELING AND ADVERTISING OF MALT BEVERAGES
Par. 5. The authority citation for 27 CFR part 7 continues to read
as follows:
Authority: 27 U.S.C. 205.
Sec. 7.4 [Amended]
Par. 6. Section 7.4 is amended by removing the reference to ``27
CFR Part 252--Importation of Distilled Spirits, Wine and Beer.'', and
by adding the reference ``27 CFR Part 27--Importation of Distilled
Spirits, Wine and Beer.''
[[Page 40575]]
immediately after ``27 CFR Part 25--Beer.''.
PART 19--DISTILLED SPIRITS PLANTS
Par. 7. The authority citation for 27 CFR Part 19 continues to read
as follows:
Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006,
5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5113, 5142,
5143, 5146, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207,
5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273,
5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561,
5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806,
7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
Sec. 19.3 [Amended]
Par. 8. Section 19.3 is amended by removing the reference to ``27
CFR Part 251--Importation of Distilled Spirits, Wine and Beer.'' and by
adding the reference ``27 CFR Part 27--Importation of Distilled
Spirits, Wine and Beer'' immediately after ``27 CFR Part 24--Wine.''.
Sec. 19.524 [Amended]
Par. 9. Section 19.524(a)(1) is amended by removing the phrase
``parts 250 and 251'' and adding the phrase ``parts 27 and 250'' in the
first sentence.
Par. 10. Section 19.524(b)(1) is amended by removing the phrase
``parts 250 and 251'' and adding the phrase ``parts 27 and 250'' in the
first sentence.
Par. 11. Section 19.524(b)(3) is amended by removing the phrase
``part 250 and 251'' and adding the phrase ``part 27 and 250'' in the
first sentence.
Sec. 19.538 [Amended]
Par. 12. Section 19.538(a)(1)(iii) is amended by removing the
phrase ``part 251'' and by adding the phrase ``part 27''.
Par. 13. In Sec. 19.662, the undesignated paragraph is redesignated
as paragraph (a) and paragraph (b) is added to read as follows:
Sec. 19.662 Affixing closures.
* * * * *
(b) Closures or other devices need bear no letter or design;
however, if a closure or other device bears any lettering or design
which was not approved for use on such closure or other device as part
of the certificate of label approval, ATF Form 5100.31, or which does
not appear on a label used in connection with a closure or device, then
such lettering or design is required to be approved for use by the
Director in response to a letterhead application from the importer.
Such application shall contain a copy of the lettering or design which
is to appear on the closure or other device and identify the label or
labels with which such closures or other devices will be used.
PART 20--DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM
Par. 14. The authority citation for 27 CFR part 20 continues to
read as follows:
Authority: 26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552,
5555, 5607, 6065, 7805.
Sec. 20.3 [Amended]
Par. 15. Section 20.3 is amended by removing the reference to ``27
CFR Part 251--Importation of Distilled Spirits, Wine and Beer.'' and by
adding the reference ``27 CFR Part 27--Importation of Distilled
Spirits, Wine and Beer.'' immediately after ``27 CFR Part 21--Formulas
for Denatured Alcohol and Rum.''.
PART 22--DISTRIBUTION AND USE OF TAX-FREE ALCOHOL
Par. 16.The authority citation for 27 CFR part 22 continues to read
as follows:
Authority: 26 U.S.C. 5001, 5121, 5142, 5143, 5146, 5206, 5214,
5271-5276, 5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806,
7011, 7805; 31 U.S.C. 9304, 9306.
Sec. 22.3 [Amended]
Par. 17. Section 22.3 is amended by removing the reference to ``27
CFR Part 251--Importation of Distilled Spirits, Wine and Beer.'' and by
adding the reference ``27 CFR Part 27--Importation of Distilled
Spirits, Wine and Beer.'' immediately after ``27 CFR Part 19--Distilled
Spirits Plants.''.
PART 24--WINE
Par. 18. The authority citation for part 24 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042,
5044, 5061, 5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5173,
5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-
5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684,
6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7011, 7302, 7342,
7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304 and 9306.
Sec. 24.4 [Amended]
Par. 19. Section 24.4 is amended by removing the reference to ``27
CFR Part 251--Importation of Distilled Spirits, Wine and Beer.'' and by
adding the reference ``27 CFR Part 27--Importation of Distilled
Spirits, Wine and Beer.'' immediately after ``27 CFR Part 19--Distilled
Spirits Plants.''.
Sec. 24.272 [Amended]
Par. 20. Section 24.272(a)(1) is amended by removing ``parts 250
and 251'' and by adding ``parts 27 and 250'' in the first sentence.
Par. 21. Section 24.272(b)(1) is amended by removing ``parts 250
and 251'' and by adding ``parts 27 and 250'' in the first sentence.
Par. 22. Section 24.272(b)(3) is amended by removing ``parts 250
and 251'' and by adding ``parts 27 and 250''.
PART 25--BEER
Par. 23. The authority citation for 27 CFR Part 25 continues to
read as follows:
Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061,
5091, 5111, 5113, 5142, 5143, 5146, 5222, 5401-5403, 5411-5417,
5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091,
6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806,
7011, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308.
Sec. 25.4 [Amended]
Par. 24. Section 25.4 is amended by adding the reference ``27 CFR
Part 27--Importation of Distilled Spirits, Wine and Beer.'' immediately
after ``27 CFR Part 7--Labeling and Advertising of Malt Beverages.''.
Sec. 25.165 [Amended]
Par. 25. Section 25.165(a)(1) is amended by removing ``parts 250
and 251'' and by adding ``parts 27 and 250'' in the first sentence.
Par. 26. Section 25.165(b)(1) is amended by removing ``parts 250
and 251'' and by adding ``parts 27 and 250'' in the first sentence.
Par. 27. Section 25.165(b)(3) is amended by removing ``parts 250
and 251'' and by adding ``parts 27 and 250'' in the first sentence.
Par. 28. Part 27 is added to read as follows:
PART 27--IMPORTATION OF DISTILLED SPIRITS, WINE AND BEER
Subpart A--Scope Of Regulations
Sec.
27.1 Imported distilled spirits, wine and beer.
27.2 Related regulations.
27.3 Forms prescribed.
27.4-27.10 [Reserved]
Subpart B--Definitions
27.11 Meaning of terms.
27.12-27.20 [Reserved]
Subpart C--Miscellaneous Provisions
27.21 Alternate methods or procedures.
27.22-27.30 [Reserved]
[[Page 40576]]
Subpart D--Special (Occupational) Taxes
27.31 Special (occupational) taxes.
27.32 Warehouse receipts covering distilled spirits.
27.33-27.40 [Reserved]
Subpart E--Tax On Imported Distilled Spirits, Wine, and Beer
Distilled Spirits
27.41 Distilled spirits.
27.42 Computation of effective tax rate.
27.43 Perfumes containing distilled spirits.
Wine
27.44 Wine.
27.45 Still wine containing carbon dioxide.
Liqueurs, Cordials, and Other Compounds and Preparations
27.46 Liqueurs, cordials, and similar compounds.
27.47 Other compounds and preparations.
Beer
27.48 Rate of tax.
27.49 Computation of tax.
Collection of Internal Revenue Taxes
27.50 Imported distilled spirits, wine and beer.
27.51 Payment of tax by electronic fund transfer. (EFT).
Exemption of Certain Samples From Internal Revenue Taxes
27.52 Commercial samples of alcoholic beverages.
27.53-27.60 [Reserved]
Subpart F--General Requirements
Permit for Importation of Distilled Spirits, Wine and Beer
27.61 Federal Alcohol Administration Act permit.
Certificate of Origin
27.62 Certificate of origin for distilled spirits and wine.
Packaging and Marking of Distilled Spirits
27.63 Distilled spirits containers of a capacity of not more than 1
gallon (3.785 liters).
27.64 Containers in excess of 1 gallon (3.785 liters).
Labeling of Distilled Spirits
27.65 Containers of 1 gallon (3.785 liters) or less.
Labeling and Marking of Wine and Malt Beverages or Beer
27.66 Wine containing from one-half of one percent to less than 7
percent alcohol by volume.
27.67 Wine containing 7 percent to 24 percent alcohol by volume.
27.68 Mixtures of wine and distilled spirits.
27.69 Malt beverages (Beer).
Alcoholic Beverage Health Warning Statement
27.70 Containers of imported alcoholic beverages to bear health
warning statement.
Use of Another Importer's Certificate of Label Approval
27.71 Use of certificates of label approval by other importers.
Closures for Containers of Distilled Spirits
27.72 Containers of distilled spirits to bear closures or other
devices.
27.73 Criteria for closures or other devices, and marks appearing
thereon.
Exemptions
27.74 Exemption from requirement pertaining to marks, bottles, and
labels.
27.75 Imported samples of distilled spirits, wine and beer.
Wine and Flavors Content of Distilled Spirits
27.76 Approval and certification of wine and flavors content.
27.77 Certificate of effective tax rate computation.
27.78 Standard effective tax rate.
27.79-27.80 [Reserved]
Subparts G-H [Reserved]
27.81-27.110 [Reserved]
Subpart I--Importation Of Distilled Spirits, Wine and Beer in Bulk
27.111 Distilled spirit containers.
27.112 Persons authorized to receive distilled spirits imported in
bulk.
27.113 Persons authorized to receive wine imported in bulk.
27.114 Persons authorized to receive beer imported in bulk.
27.115-27.120 [Reserved]
Subpart J--Importer's Records and Reports
Records and Reports of Imported Liquors
27.121 General requirements.
27.122 Proprietors of qualified premises.
Filing and Retention of Records and Reports
27.123 Filing.
27.124 Retention.
Other Records
27.125 Transfer record.
27.126 Package gauge record.
27.127-27.130 [Reserved]
Subpart K--Transfer Of Distilled Spirits From Customs Custody To Bonded
Premises Of Distilled Spirits Plant
27.131 General provisions.
27.132 Preparation of transfer record and package gauge record.
27.133 Inspection and release.
27.134 Sealing of bulk conveyances.
27.135 Receipt by consignee.
27.136-27.140 [Reserved]
Subpart L--Withdrawal Of Imported Distilled Spirits From Customs
Custody Free Of Tax For Use Of The United States
27.141 General.
27.142 Application and permit, Form 5150.33.
27.143 Use of permit, Form 5150.33.
27.144 Entry documents.
27.145 Customs release.
27.146-27.150 [Reserved]
Subpart M--Requirements For Liquor Bottles
27.151 Scope of subpart.
27.152 Standards of fill.
27.153 Distinctive liquor bottles.
27.154 Bottles not constituting approved containers.
27.155 Bottles to be used for display purposes.
27.156 Used liquor bottles.
27.157-27.160 [Reserved]
Authority: 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008,
5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 5122, 5124, 5201,
5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 U.S.C. 203,
205, 206, 215.
Cross References: For regulations with respect to distilled
spirits, wine, and beer arriving in the United States from Puerto
Rico and the Virgin Islands, see part 250 of this chapter.
For regulations with respect to the exportation of distilled
spirits, denatured spirits, wine, beer or beer concentrate without
payment of tax or with benefit of drawback of tax, see part 252 of
this chapter.
Subpart A--Scope Of Regulations
Sec. 27.1 Imported distilled spirits, wine, and beer.
This part, ``Importation of Distilled Spirits, Wine, and Beer,''
contains the regulations relating to the importation of distilled
spirits, wine, and beer into the United States from foreign countries,
including special (occupational) and commodity taxes, permits, marking,
branding, closing and labeling of containers, and records and reports.
Sec. 27.2 Related regulations.
Regulations related to this part are listed below:
19 CFR Chapter I--Customs Regulations.
27 CFR Part 1--Basic Permit Requirements under the Federal Alcohol
Administration Act, Nonindustrial Use of Spirits and Wine, Bulk Sales
and Bottling of Distilled Spirits.
27 CFR Part 4--Labeling and Advertising of Wine.
27 CFR Part 5--Labeling and Advertising of Distilled Spirits.
27 CFR Part 7--Labeling and Advertising of Malt Beverages.
27 CFR Part 16--Alcoholic Beverage Health Warning Statement.
27 CFR Part 19--Distilled Spirits Plants.
27 CFR Part 21--Formulas for Denatured Alcohol and Rum.
27 CFR Part 24--Wine.
27 CFR Part 25--Beer.
27 CFR Part 30--Gauging Manual.
27 CFR Part 194--Liquor Dealers.
31 CFR Part 225--Acceptance of Bonds, Notes, or Other
Obligations Issued or Guaranteed by the United States as Security in
Lieu of Surety or Sureties on Penal Bonds.
[[Page 40577]]
Sec. 27.3 Forms prescribed.
(a) The Director is authorized to prescribe all forms required by
this part, including reports, returns and records. All of the
information called for in each form shall be furnished as indicated by
the headings on the form and the instructions on or pertaining to the
form. In addition, information called for in each form shall be
furnished as required by this part.
(b) Requests for forms should be mailed to the ATF Distribution
Center, P.O. Box 5950, Springfield, Virginia 22150-5950.
Secs. 27.4--27.10 [Reserved]
Subpart B--Definitions
Sec. 27.11 Meaning of terms.
When used in this part and in forms prescribed under this part,
unless the context otherwise requires, terms shall have the meaning
ascribed in this section. Words in the plural form shall include the
singular, and vice versa, and words importing the masculine gender
shall include the feminine. The terms ``includes'' and ``including'' do
not exclude things not enumerated which are in the same general class.
Alcoholic beverage. Any beverage in liquid form which contains not
less than one-half of one percent (.5%) of alcohol by volume and is
intended for human consumption.
ATF Officer. An officer or employee of the Bureau of Alcohol,
Tobacco and Firearms (ATF) authorized to perform any function relating
to the administration or enforcement of this part.
Beer. Beer, ale, porter, stout, and other similar fermented
beverages (including sake or similar products) of any name or
description containing one-half of one percent or more of alcohol by
volume, brewed or produced from malt, wholly or in part, or from any
substitute for malt.
Bonded premises-distilled spirits plant. The premises of a
distilled spirits plant, or part thereof, on which distilled spirits
operations defined in 26 U.S.C. 5002 are authorized to be conducted.
Bulk beer. Beer in a container other than an authorized original
consumer container.
Bulk distilled spirits. Distilled spirits in a container having a
capacity in excess of 1 gallon.
Bulk wine. Wine in a container having a capacity in excess of 60
liters.
Cereal beverage. A beverage produced either wholly or in part from
malt (or a substitute for malt), and either fermented or unfermented,
which contains, when ready for consumption, less than one-half of 1
percent of alcohol by volume.
CFR. The Code of Federal Regulations.
Commercial bank. A bank, whether or not a member of the Federal
Reserve System, which has access to the Federal Reserve Communications
System (FRCS) or Fedwire. The ``FRCS'' or ``Fedwire'' is a
communications network that allows Federal Reserve System member banks
to effect a transfer of funds for their customers (or other commercial
banks) to the Treasury Account at the Federal Reserve Bank of New York.
Container. Any receptacle, vessel, or form of package, bottle, can,
tank, or pipeline used, or capable of being used, for holding, storing,
transferring, or conveying liquor or specially denatured spirits.
Customs bonded warehouse. A customs bonded warehouse, class 2, 3, 6
or 8, established under the provisions of customs regulations (19 CFR
Ch. I).
Customs officer. Any officer of the Customs Service or any
commissioned, warrant, or petty officer of the Coast Guard, or any
agent or other person authorized by law or designated by the Secretary
of the Treasury to perform any duties of an officer of the Customs
Service.
Delegate. Any officer, employee, or agency of the Department of the
Treasury authorized by the Secretary of the Treasury directly, or
indirectly by one or more redelegations of authority, to perform the
function mentioned or described in the context.
Director. The Director, Bureau of Alcohol, Tobacco and Firearms,
the Department of the Treasury, Washington, DC 20226 or his/her
delegate.
Distilled spirits or spirits. That substance known as ethyl
alcohol, ethanol, or spirits of wine, in any form (including all
dilutions and mixtures thereof, from whatever source or by whatever
process produced), including alcohol, whisky, brandy, gin, rum and
vodka, but not denatured spirits. Distilled spirits does not include
beer or wine.
Distilled spirits plant. An establishment qualified under the
provisions of Part 19 of this chapter for the production, storage or
processing of distilled spirits.
Effective tax rate. The net tax rate after reduction for any credit
allowable under 26 U.S.C. 5010 for wine and flavor content at which the
tax imposed on distilled spirits by 26 U.S.C. 5001 is paid or
determined.
Eligible flavor. A flavor which:
(1) Is of a type that is eligible for drawback of tax under 26
U.S.C. 5134,
(2) Was not manufactured on the premises of a distilled spirits
plant, and
(3) Was not subjected to distillation on distilled spirits plant
premises such that the flavor does not remain in the finished product.
Eligible wine. A wine containing not more than 0.392 gram of carbon
dioxide per 100 milliliters of wine which has not been subject to
distillation at a distilled spirits plant after receipt in bond.
Foreign-trade zone or zone. A foreign-trade zone established and
operated pursuant to the Act of June 18, l934, as amended. See customs
regulations.
5010 credit. A credit against the tax imposed on distilled spirits
by 26 U.S.C. 5001 is allowable under 26 U.S.C. 5010 on each proof
gallon of alcohol derived from eligible wine or from eligible flavors
which do not exceed 2\1/2\ percent of the finished product on a proof
gallon basis. The credit is allowable at the time the tax is payable as
if it constituted a reduction in the rate of tax.
Gallon or wine gallon. A United States gallon of liquid measure
equal to the volume of 231 cubic inches.
Importer. Any person who imports distilled spirits, wine or beer
into the United States.
Industrial or nonindustrial use of spirits or wine. The use of
spirits or wine shall, for the purposes of this part, be regarded as
industrial or nonindustrial based on the provisions of 27 CFR part 1.
Kind. As applied to spirits, kind shall mean class and type as
prescribed in 27 CFR part 5. As applied to wine, kind shall mean the
classes and types of wine as prescribed in 27 CFR parts 4 and 24.
Liquors. Distilled spirits, wine and beer which are fit for
beverage use. The word liquor does not include specially denatured
spirits, nonbeverage wine or beer concentrate.
Liquor bottle. A bottle made of glass or earthenware, or of other
suitable material approved by the Food and Drug Administration, which
has been designed or is intended for use as a container for distilled
spirits for sale for beverage purposes and which has been determined by
the Director to adequately protect the revenue.
Liter. A metric unit of capacity equal to 1,000 cubic centimeters
at 20 degrees C. or 33.814 United States fluid ounces at 68 degrees F.
of alcoholic beverage.
Malt beverage. When used in connection with the Federal Alcohol
Administration Act, a beverage made by the alcoholic fermentation of an
infusion or decoction, or combination of both, in potable brewing
water, of
[[Page 40578]]
malted barley with hops, or their parts, or their products, and with or
without other malted cereals, and with or without the addition of
unmalted or prepared cereals, other carbohydrates or products prepared
therefrom, and with or without the addition of carbon dioxide, and with
or without other wholesome products suitable for human food
consumption. The term includes such products containing alcohol in an
amount of less than one-half of one percent alcohol by volume.
Package. Any cask, keg, barrel, drum, or similar portable
container.
Person. An individual, a trust, estate, partnership, association,
company, or corporation.
Port Director of customs. The chief customs official at a customs
port.
Proof. The ethyl alcohol content of a liquid at 60 degrees
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
Proof gallon. A gallon of liquid at 60 degrees Fahrenheit which
contains 50 percent by volume of ethyl alcohol having a specific
gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60
degrees Fahrenheit as unity, or the alcoholic equivalent thereof.
Region. A Bureau of Alcohol, Tobacco and Firearms region.
Regional Director (Compliance). The principal ATF regional official
responsible for administering regulations in this part.
Secretary. The Secretary of the Treasury or his/her delegate.
Specially denatured spirits. Alcohol, or rum, as defined in part 2l
of this chapter, denatured pursuant to the formulas authorized in part
21 for specially denatured alcohol or rum, and including denatured
spirits for export as authorized by 27 CFR 21.5.
Standard effective tax rate. The rate of tax established based on
the least quantity and the lowest alcohol content of eligible wine or
eligible flavors used in the manufacture of a distilled spirits
product.
Tank truck. A tank-equipped trailer, semi-trailer, or truck.
Tax. The distilled spirits, wine or beer tax imposed by 26 U.S.C.
Chapter 51.
This chapter. Title 27, Code of Federal Regulations, Chapter I (27
CFR Ch. I).
United States. ``United States'' includes only the States and the
District of Columbia.
U.S.C. The United States Code.
Wine. When used without qualification, the term includes every kind
(class and type) of product produced from fruit, berries, or other
suitable agricultural products, excluding a product containing less
than one-half percent of alcohol by volume or more than 24 percent of
alcohol by volume. The term includes all imitation, other than
standard, or artificial wine and compounds sold as wine.
(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as
amended (27 U.S.C. 205))
Secs. 27.12-27.20 [Reserved]
Subpart C--Miscellaneous Provisions
Sec. 27.21 Alternate methods or procedures.
(a) Application. An importer who desires to use an alternate method
or procedure in lieu of a method or procedure prescribed by this part
shall file an application with the regional director (compliance) of
the appropriate region, (in which the place of business is located, as
determined by the address shown on the importer's basic permit). If the
importer has several places of business at which such alternate method
or procedure will be used, a separate application shall be submitted
for each location. Each application shall:
(1) Specify the name, address, and permit number of the importer to
which it relates;
(2) State the purpose for which filed; and
(3) Specifically describe the alternate method or procedure and set
forth the reasons therefor.
(b) Approval. When an application for use of an alternate method or
procedure is received, the regional director (compliance) shall
determine whether approval thereof would unduly hinder the effective
administration of this part or would result in jeopardy to the revenue.
No alternate method or procedure relating to the assessment, payment,
or collection of tax shall be authorized under this paragraph. The
regional director (compliance) shall forward the application to the
Director, together with a report of findings and a recommendation. The
Director may approve the alternate method or procedure if it is found
that:
(1) Good cause has been shown for the use of the alternate method
or procedure;
(2) 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
(3) The alternate method or procedure will not be contrary to any
provision of law, and will not result in an increase in cost to the
Government or hinder the effective administration of this part.
(c) Conditions for use. No alternate method or procedure shall be
used until approval has been received from the Director. Authorization
for the alternate method or procedure may be withdrawn whenever in the
judgment of the Director the revenue is jeopardized or the effective
administration of this part is hindered by the continuation of such
authorization.
(Approved by the Office of Management and Budget under control
number 1512-0352)
Secs. 27.22-27.30 [Reserved]
Subpart D--Special (Occupational) Taxes
Sec. 27.31 Special (occupational) taxes.
Importers engaged in the business of selling liquors (whether
distilled spirits, wine or beer) or offering liquors for sale, are
subject to the provisions of Part 194 of the chapter relating to
special (occupational) taxes. Part 194 requires that before commencing
business the special tax registration and return, Form 5630.5, with
payment of the tax, shall be filed with ATF in accordance with the
instructions on the form. Subsequently, Form 5630.5 with tax shall be
filed each year on or before July 1, as long as the proprietor
continues in business.
(Sec 201, Pub. L. 85-859, 72 Stat. 1340 as amended, 1343 as amended,
1344 as amended (26 U.S.C. 5111, 5112, 5121, 5122))
Sec. 27.32 Warehouse receipts covering distilled spirits.
The sale of warehouse receipts for distilled spirits is equivalent
to the sale of distilled spirits, and every person engaged in business
as an importer of distilled spirits, who sells, or offers for sale,
warehouse receipts for distilled spirits stored in customs bonded
warehouses, or elsewhere, incurs liability for special tax as a dealer
in liquors at the place where the warehouse receipts are sold or
offered for sale, and must file a return and pay special tax as
provided in Sec. 27.31.
(68A Stat. 618, 620, 621 (26 U.S.C. 5111, 5112, 5121, 5122))
Secs. 27.33-27.40 [Reserved]
Subpart E--Tax on Imported Distilled Spirits, Wine, and Beer
Distilled Spirits
Sec. 27.41 Distilled spirits.
(a) A tax is imposed on all distilled spirits in customs bonded
warehouses or imported into the United States at the rate prescribed by
26 U.S.C. 5001 on each proof gallon and a proportionate tax at a like
rate on all fractional parts of each proof gallon. All products of
distillation, by whatever name known, which contain distilled spirits,
are
[[Page 40579]]
considered to be distilled spirits and are taxed as such. The tax will
be determined at the time of importation, or, if entered into customs
bond, at the time of removal therefrom.
(b) A credit against the tax imposed on distilled spirits by 26
U.S.C. 5001 is allowable under 26 U.S.C. 5010 on each proof gallon of
alcohol derived from eligible wine or from eligible flavors which do
not exceed 2\1/2\ percent of the finished product on a proof gallon
basis. The credit is allowable at the time tax is payable as if it
constituted a reduction in the rate of tax.
(c) Where credit against the tax is desired, the person liable for
the tax shall establish an effective tax rate in accordance with
Sec. 27.42. The effective tax rate established will be applied to each
entry.
Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C.
5001); Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26
U.S.C. 5201); Sec 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26
U.S.C. 5010))
Sec. 27.42 Computation of effective tax rate.
(a) The proprietor shall compute the effective tax rate for
distilled spirits containing eligible wine or eligible flavors as the
ratio of the numerator and denominator as follows:
(1) The numerator will be the sum of:
(i) The proof gallons of all distilled spirits used in the product
(exclusive of distilled spirits derived from eligible flavors),
multiplied by the tax rate prescribed by 26 U.S.C. 5001;
(ii) The wine gallons of each eligible wine used in the product,
multiplied by the tax rate prescribed by 26 U.S.C. 5041(b) (1), (2),
(3), as applicable; and
(iii) The proof gallons of all distilled spirits derived from
eligible flavors used in the product, multiplied by the tax rate
prescribed by 26 U.S.C. 5001, but only to the extent that such
distilled spirits exceed 2\1/2\ percent of the denominator prescribed
in paragraph (a)(2) of this section.
(2) The denominator will be the sum of:
(i) The proof gallons of all distilled spirits used in the product,
including distilled spirits derived from eligible flavors; and
(ii) The wine gallons of each eligible wine used in the product,
multiplied by twice the percentage of alcohol by volume of each,
divided by 100.
(b) In determining the effective tax rate, quantities of distilled
spirits, eligible wine, and eligible flavors will be expressed to the
nearest tenth of a proof gallon. The effective tax rate may be rounded
to as many decimal places as the proprietor deems appropriate, provided
that, such rate is expressed no less exactly than the rate rounded to
the nearest whole cent, and the effective tax rates for all products
will be consistently expressed to the same number of decimal places. In
such case, if the number is less than five it will be dropped; if it is
five or over, a unit will be added.
(c) The following is an example of the use of the formula:
Batch Record
------------------------------------------------------------------------
------------------------------------------------------------------------
Distilled spirits....................... 2249.1 proof gallons.
Eligible wine (14% alcohol by volume)... 2265.0 wine gallons.
Eligible wine (19% alcohol by volume)... 1020.0 wine gallons.
Eligible flavors........................ 100.9 proof gallons.
------------------------------------------------------------------------
[GRAPHIC] [TIFF OMITTED] TP05AU96.000
(Approved by the Office of Management and Budget under control
number 1512-0352)
* Proof gallons by which distilled spirits derived from eligible
flavors exceed 2\1/2\ percent of the total proof gallons in the
batch (100.9-(2\1/2\%) x 3.371.8 = 16.6).
---------------------------------------------------------------------------
(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
Sec. 27.43 Perfumes containing distilled spirits.
(a) Perfumes imported into the United States containing distilled
spirits are subject to the internal revenue tax at the rate prescribed
by 26 U.S.C. 5001 per wine gallon, and a proportionate tax at a like
rate on all fractional parts of such wine gallon.
(b) This section does not apply to importations after December 31,
1994.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C.
5001))
Wine
Sec. 27.44 Wine.
(a) A tax is imposed by 26 U.S.C. 5041 on all wine imported into
the United States at the rate prescribed in such section on each wine
gallon and a proportionate tax at a like rate on all fractional parts
of such wine gallon. Fractions of less than one-tenth gallon shall be
converted to the nearest one-tenth gallon, and five-hundredths gallon
shall be converted to the next full one-tenth gallon. The tax shall be
determined at the time of importation, or, if entered into customs
bond, at the time of removal therefrom for consumption or sale. All
wine containing more than 24 percent of alcohol by volume shall be
classed as distilled spirits and shall be taxed accordingly.
(b) Imported wine may contain added spirits and remain taxable as
wine under 26 U.S.C. 5041 provided:
(1) Such spirits were added to increase the alcoholic content of
the wine as part of an authorized fortification procedure and as a
standard winemaking process in the country of origin; and
(2) The alcoholic content of the wine is not increased to more than
24 percent by volume.
(72 Stat. 1331, as amended; 26 U.S.C. 5041)
Sec. 27.45 Still wine containing carbon dioxide.
Still wine may contain not more than 0.392 gram of carbon dioxide
per 100 milliliters of wine; except that a tolerance to this maximum
limitation, not to exceed 0.009 gram of carbon dioxide per 100
milliliters of wine, will be allowed where the amount of carbon dioxide
in excess of 0.392 gram per 100 milliliters of wine was due to
mechanical variations which could not be completely controlled under
good commercial practices. Such tolerance
[[Page 40580]]
will not be allowed where it is found that the limitation of 0.392 gram
of carbon dioxide per 100 milliliters of wine is continuously or
intentionally exceeded. The carbon dioxide contained in wine will be
determined in accordance with authorized test procedures approved by
the Director. Penalties are provided in 26 U.S.C. 5662 for any person
who, whether by manner of packaging or advertising or by any other form
of representation, represents any still wine to be effervescent wine or
a substitute for effervescent wine.
Liqueurs, Cordials, and Other Compounds and Preparations
Sec. 27.46 Liqueurs, cordials, and similar compounds.
A tax is imposed by 26 U.S.C. 5001 on all liqueurs, cordials, and
similar compounds containing distilled spirits, in customs bonded
warehouses or imported into the United States, at the rate prescribed
in such section on each proof gallon, and a proportionate tax at a like
rate on all fractional parts of such proof gallon. The tax shall be
determined at the time of importation, or, if entered into customs
bond, at the time of removal. Fortified or unfortified wine, containing
not over 24 percent alcohol by volume, to which sweetening or flavoring
materials, but no distilled spirits, have been added are not classified
as liqueurs, cordials, or similar compounds, but are considered to be
flavored wine only, and are subject to internal revenue tax at the
rates applicable to wine.
(Sec. 201, Pub.L. 85-859, 72 Stat. 1314, as amended, 1331, as
amended (26 U.S.C. 5001, 5041))
Sec. 27.47 Other compounds and preparations.
Compounds and preparations, other than those specified in
Sec. 27.46, containing distilled spirits, which are fit for beverage
purposes, in customs bonded warehouses or imported into the United
States, are subject to internal revenue tax at the rates applicable to
distilled spirits. Compounds and preparations containing fortified or
unfortified wine, but no distilled spirits, which are fit for beverage
purposes and which are sold as wine, are subject to internal revenue
tax at the rates applicable to wine.
(68A Stat. 595, as amended, 609, as amended; 26 U.S.C. 5001, 5041)
Beer
Sec. 27.48 Rate of tax.
A tax is imposed by 26 U.S.C. 5051, on all beer imported into the
United States, at the rate prescribed in such section, for every barrel
containing not more than 31 gallons, and at a like rate for any other
quantity or for the fractional parts of a barrel. The tax on beer shall
be determined at the time of importation, or, if entered into customs
bond, at the time of removal.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as
amended (26 U.S.C. 5051, 5054))
Sec. 27.49 Computation of tax.
The tax on imported beer shall be computed on the basis of the
actual quantity in a container, at the rate prescribed by law.
(72 Stat. 1333; 26 U.S.C. 5051)
Collection of Internal Revenue Taxes
Sec. 27.50 Imported distilled spirits, wine, and beer.
Internal revenue taxes payable on imported distilled spirits, wine,
and beer, are collected, accounted for, and deposited as internal
revenue collections by directors of customs in accordance with customs
requirements. However, the taxes on distilled spirits withdrawn from
customs custody without payment of tax under the provisions of subpart
I of this part and thereafter withdrawn from the bonded premises of a
distilled spirits plant subject to tax, shall be collected and paid
under the provisions of part 19 of this chapter.
(72 Stat. 1314, 1366; 26 U.S.C. 5001, 5232)
Sec. 27.51 Payment of tax by electronic fund transfer (EFT).
(a) General. (1) Each importer who was liable, during a calendar
year, for a gross amount equal to or exceeding five million dollars in
distilled spirits taxes combining tax liabilities incurred under this
part and parts 19 and 250 of this chapter, a gross amount equal to
exceeding five million dollars in wine taxes combining tax liabilities
incurred under this part and parts 24 and 250 of this chapter, or a
gross amount equal to or exceeding five million dollars in beer taxes
combining tax liabilities incurred under this part and parts 25 and 250
of this chapter, shall use a commercial bank in making payment by
electronic fund transfer (EFT), as defined in paragraph (c) of this
section, of such taxes during the succeeding calendar year. Payment of
such taxes by cash, check, or money order is not authorized for an
importer who is required, by this section, to make remittances by EFT.
For purposes of this section, the dollar amount of tax liability is to
be summarized separately for distilled spirits taxes, wine taxes, or
beer taxes, and is defined as the gross tax liability on all taxable
withdrawals from premises within the United States and importations
(including products of the same tax class brought into the United
States from Puerto Rico or the Virgin Islands) during the calendar
year, without regard to any drawbacks, credits, or refunds, for all
premises from which such activities are conducted by the taxpayer.
(b) For the purposes of this section, a taxpayer includes a
controlled group of corporations, as defined in 26 U.S.C. 1563, and
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except
the words ``at least 80 percent'' shall be replaced by the words ``more
than 50 percent'' in each place it appears in subsection (a) of 26
U.S.C. 1563, as well as in the implementing regulations. Also, the
rules for a ``controlled group of corporations'' apply in a similar
fashion to groups which include partnerships and/or sole
proprietorships. If one entity maintains more than 50 percent control
over a group consisting of corporations and one, or more, partnerships
and/or sole proprietorships, all of the members of the controlled group
are one taxpayer for the purpose of determining who is required to make
remittances by EFT.
(c) Electronic funds transfer (EFT) means any transfer of funds,
other than a transaction originated by cash, check or similar paper
instrument, that is initiated through an electronic terminal,
telephone, computer or magnetic tape, for the purpose of ordering,
instructing, or authorizing a financial institution to debit or credit
an account. The term includes, but is not limited to, Fed Wire
transfers, Automated Clearing House (ACH) transfers, transfers made at
automatic teller machines (ATM) and Point-of-Sale (POS) terminals (to
include use of the Government small purchase card), and other means of
credit card transactions.
(d) An importer who is required by this section to make remittances
by EFT, shall make the EFT remittance in accordance with the
requirements of the U.S. Customs Service.
(e) Failure to request an electronic fund transfer message. The
taxpayer is subject to a penalty imposed by 26 U.S.C. 5684, 6651, or
6656, as applicable, for failure to make a tax payment by EFT on or
before the close of business on the prescribed last day for filing.
(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302);
Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C.
5061))
[[Page 40581]]
Exemption of Certain Samples From Excise Taxes
Sec. 27.52 Commercial samples of alcoholic beverages.
Samples of distilled spirits, wine, and beer, to be used in the
United States by persons importing alcoholic beverages in commercial
quantities are, subject to the limitations in this section, exempt from
the payment of any internal revenue tax imposed on, or by reason of,
importation. This exemption applies only to samples to be used for
soliciting orders for products of foreign countries. In no case shall
this exemption apply to more than one sample of each alcohol beverage
product admitted during any calendar quarter for the use of each such
person. No sample of beer shall contain more than 300 milliliters, no
sample of wine shall contain more than 150 milliliters, and no sample
of distilled spirits shall contain more than 100 milliliters.
(76 Stat. 72, as amended; 19 U.S.C. 1202)
Secs. 27.53-27.60 [Reserved]
Subpart F--General Requirements
Permit for Importation of Distilled Spirits, Wine and Malt Beverages or
Beer
Sec. 27.61 Federal Alcohol Administration Act permit.
Under the Federal Alcohol Administration Act and the regulations
issued pursuant thereto, (27 CFR part 1) any person, except an agency
of a State or political subdivision thereof, or any officer or employee
of any such agency, intending to engage in the business of importing
distilled spirits, wine or malt beverages (including beer and cereal
beverages) for nonindustrial use is required to procure an importer's
basic permit.
(49 Stat. 978, as amended; 27 U.S.C. 203)
Certificate of Origin
Sec. 27.62 Certificate of origin for distilled spirits and wine.
(a) Distilled spirits (for nonindustrial use) imported in bottles
shall not be released from customs custody for consumption unless the
invoice is accompanied by a certificate of age and origin when required
by 27 CFR 5.52.
(b) Imported wine (which contains 7 percent or more alcohol by
volume and not more than 24 percent alcohol by volume) shall not be
released from customs custody for consumption unless the invoice is
accompanied by a certificate of origin and identity when required by 27
CFR 4.45.
Packaging and Marking of Distilled Spirits
Sec. 27.63 Distilled spirits containers of a capacity of not more
than 1 gallon (3.785 liters).
Except as provided in Sec. 27.74, bottled distilled spirits
imported into the United States for sale shall be in liquor bottles
which conform to the requirements of subpart K of this part and part 5
of this chapter. Such liquor bottles shall bear closures as described
in Secs. 27.72 and 27.73. Empty bottles imported for the packaging of
distilled spirits shall conform to the requirements of subpart K of
this part. (For customs marking requirements, see 19 CFR parts 11 and
12.)
Sec. 27.64 Distilled spirits containers in excess of 1 gallon (3.785
liters).
Imported containers of distilled spirits in excess of 1 gallon are
required to be marked in accordance with customs regulations (19 CFR
parts 11 and 12).
Labeling of Distilled Spirits
Sec. 27.65 Containers of 1 gallon (3.785 liters) or less.
(a) All imported distilled spirits in bottles are required to be
labeled in conformity with the Federal Alcohol Administration Act and
regulations issued pursuant thereto (27 CFR part 5), before they are
removed from customs custody. Labels on imported containers of
distilled spirits, and on containers of distilled spirits bottled in
customs custody, are required to be covered by a certificate of label
approval, ATF Form 5100.31, issued pursuant to part 5 of this chapter.
(b) Containers of imported distilled spirits bottled after tax
payment and removal from customs custody are required to be covered by
a certificate of label approval or a certificate of exemption from
label approval, ATF Form 5100.31 issued pursuant to part 5 of this
chapter.
(c) When imported distilled spirits are labeled under a certificate
of exemption from label approval, the labels affixed to containers are
required to conform to the provisions of part 19 of this chapter.
Labeling and Marking of Wine and Malt Beverages or Beer
Sec. 27.66 Wine containing from one-half of one percent to less than 7
percent alcohol by volume.
Wine containing from one-half of one percent to less than 7 percent
alcohol by volume which is imported in bottles shall be labeled, prior
to removal from customs custody, under regulations administered by the
United States Food and Drug Administration. In addition, the IRC
requires that the labels shall, as a minimum, reflect the kind of wine
(class and type), alcoholic content, net content, and indicate whether
effervescent wine is sparkling or carbonated. Imported containers of
wine are also required to be marked, branded and labeled in accordance
with customs regulations (19 CFR parts 11 and 12).
Sec. 27.67 Wine containing 7 percent to 24 percent alcohol by volume.
``Wine,'' in this section, refers in all cases to wine containing
not less than 7 percent and not more than 24 percent of alcohol by
volume.
(a) All imported bottled or packaged wine is required to be
packaged, marked, branded, and labeled in conformity with the Federal
Alcohol Administration Act and regulations issued pursuant thereto in
27 CFR part 4 before they are removed from customs custody. Labels on
imported containers of wine are required to be covered by a certificate
of label approval, ATF Form 5100.31, issued pursuant to part 4 of this
chapter.
(b) Containers of imported wine bottled or packaged after tax
payment and removal from customs custody are required to be covered by
a certificate of label approval, ATF Form 5100.31, or a certificate of
exemption from label approval, ATF Form 5100.31, issued pursuant to the
regulations in 27 CFR part 4. The label on such wine must conform with
27 CFR part 24.
(c) Imported containers of wine must also be marked, branded and
labeled in accordance with customs regulations (19 CFR parts 11 and
12).
Sec. 27.68 Mixtures of wine and distilled spirits.
(a) Imported wine which contains distilled spirits in accordance
with the provisions of Sec. 27.44(b) shall be labeled as wine.
(b) Imported wine which contains distilled spirits other than in
accordance with Sec. 27.44(b) shall be labeled as distilled spirits.
Sec. 27.69 Malt Beverages (Beer).
All imported malt beverages (including beer and cereal beverages)
must conform with the provisions of the FederalAlcohol Administration
Act and regulations issued pursuant thereto in 27 CFR part 7 upon
release from customs custody. In addition, labels on containers of
cereal beverages shall bear the phrase ``Nontaxable under Section 5051
I.R.C.''. Imported containers of malt beverages are also required to be
marked and labeled in accordance with customs regulations (19 CFR parts
11 and 12).
[[Page 40582]]
Alcoholic Beverage Health Warning Statement
Sec. 27.70 Containers of imported alcoholic beverages to bear health
warning statement.
On and after November 18, 1989, no person shall import for sale or
distribution in the United States any alcoholic beverage unless the
container of such beverage bears the health warning statement required
by part 16 of this chapter, in conformity with the requirements
prescribed by that part. The alcoholic beverage health warning
statement is required on the labels of all containers (as defined in
Sec. 16.10 of this chapter) of alcoholic beverages for sale or
distribution. Sale and distribution includes sampling or any other
distribution not for sale. This requirement does not apply to alcoholic
beverages that were bottled in the foreign country prior to November
18, l989.
Use of Another Importer's Certificate of Label Approval
Sec. 27.71 Use of certificates of label approval by other importers.
(a) An importer may use certificates of label approval to release
distilled spirits, wine or malt beverages or beer from customs custody
only if such certificates are issued in that importer's name, except
that such products may be released from customs custody upon
presentation of a certificate of label approval by an importer who is
not the owner of the certificate of label approval if all of the
following 3 conditions are met:
(1) The certificate owner has authorized such use.
(2) Each bottle or individual container bears the name or trade
name and address of the certificate owner.
(3) The certificate owner maintains records of the companies
authorized by such owner to use the certificate.
(b) The certificate owner is considered to have granted
authorization to use a label approval to another importer if either:
(1) The certificate owner's name or trade name appears in the
sales-in-transit invoice required by 19 CFR 141.86(c) or other invoice
such as the bill of lading or in other shipping documents, such as the
bill of lading, pertaining to an importation; or
(2) The certificate owner has granted such authorization, by
letter, to the importer.
Closures for Containers of Distilled Spirits
Sec. 27.72 Containers of distilled spirits to bear closures or other
devices.
No person shall transport, buy, possess, sell, or transfer any
imported distilled spirits in containers of 1 gallon (3.785 liters) or
less, unless the immediate containers of distilled spirits withdrawn
from bonded premises or customs custody, on determination of tax, bears
a closure or other device affixed in accordance with the provisions of
this part.
(Sec. 454, Pub. L. 98-369. 98 Stat. 494 (26 U.S.C. 5301))
Sec. 27.73 Criteria for closures or other devices, and marks appearing
thereon.
(a) Closures or other devices on containers of imported distilled
spirits which have been tax determined, having a capacity of 1 gallon
(3.785 liters) or less shall be constructed so that such closures or
other devices must be broken or torn in order to gain access to the
contents in such a manner giving visual evidence to the consumer that
the container has been opened and cannot be resealed again to appear
unopened.
(b) Closures or other devices need bear no letter or design;
however, if a closure or other device bears any lettering or design
which was not approved for use on such closure or other device as part
of the certificate of label approval, ATF Form 5100.31, or which does
not appear on a label used in connection with a closure or device, then
such lettering or design is required to be approved for use by the
Director in response to a letterhead application from the importer.
Such application shall contain a copy of the lettering or design which
is to appear on the closure or other device and identify the label or
labels with which such closures or other devices will be used.
Exemptions
Sec. 27.74 Exemption from requirements pertaining to marks, bottles,
and labels.
(a) The provisions of this part pertaining to closures, the
requirements for containers prescribed by subpart K of this part, and
the labeling of containers as prescribed by part 5 of this chapter are
not applicable to imported distilled spirits.
(1) Not for sale or for any other commercial purpose whatever;
(2) On which no internal revenue tax is required to be paid or
determined on or before withdrawal from customs custody;
(3) For use as ship supplies; or
(4) For personal use.
(b) Distilled spirits or wine withdrawn from customs bond solely
for the use of foreign embassy personnel, the foreign diplomatic corps,
members of the armed forces of foreign countries on active duty in the
United States or certain other persons are not subject to excise taxes,
labeling, liquor bottle or closure regulations. The United States
Customs Service determines whether a person is a qualified person
entitled to tax-exempt withdrawal under this subsection.
(c) Exemptions from the requirement that imported distilled
spirits, wine and malt beverages (beer) be marked to indicate the
country of origin are set forth in customs regulations (19 CFR part
11.)
(d) The health warning statement in part 16 of this chapter is
required on labels of all containers sold or distributed.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1374, as
amended (26 U.S.C. 5301)
Sec. 27.75 Imported samples of distilled spirits, wine and beer.
(a) Samples of distilled spirits, wine and beer in containers of
not more than 1.75 liters, imported solely for organoleptic testing,
quality control testing, research and product development testing, and
not for sale or for use in the manufacture or production of any article
for sale, shall be exempt from any requirements relating to marks,
bottles, labels and standards of fill. However, the health warning
statement in part 16 of this chapter is required on labels of all
containers of imported samples.
(b) Samples imported for the purposes indicated above shall not be
exempt from the payment of any internal revenue tax or duty imposed on,
or by reason of, importation, or from the provisions in this part
pertaining to closures.
(c) Samples of distilled spirits imported for any purposes not
described above, with the exception of those samples of distilled
spirits provided for in Sec. 27.52 or Sec. 27.74, are not exempt from
the requirements pertaining to closures, marks, bottles and labels.
Samples of wine, distilled spirits or beer brought into the United
States pursuant to Sec. 27.52 or Sec. 27.74 are exempt from the
labeling requirements of parts 4, 5 and 7 of this chapter,
respectively.
(d) Samples of alcoholic beverages imported for display and taste
testing at trade fairs (as defined in the Trade Fair Act of 1959, 19
U.S.C. Chapter 6) are exempt from any requirements relating to
closures, marks, bottles, labels, and standards of fill.
[[Page 40583]]
Wine and Flavors Content of Distilled Spirits
Sec. 27.76 Approval and certification of wine and flavors content.
(a) Any person, who imports into the United States distilled
spirits on which the tax is to be paid or determined at an effective
tax rate based in whole, or in part, on the alcohol content derived
from eligible wine or eligible flavors which have not been previously
approved on ATF Form 5530.5 (1678) shall, before the first tax
determination at that rate, request and receive a statement of
eligibility for each wine or flavor to be used in the computation of
the effective tax rate.
(b) To receive a statement of eligibility, the importer shall cause
to be submitted to the ATF National Laboratory, 1401 Research
Boulevard, Attn: NBA, Rockville, Maryland 20850, the following:
(1) The kind (class and type) of the distilled spirits product to
which the request applies;
(2) An 8-ounce sample of each distilled spirits, wine and flavor
contained in the product; and
(3) A statement of composition for the wine and flavors listing--
(i) For wine, the kind (class and type) and percentage of alcohol
by volume (if stated as a range, the entire range must be within one
tax class); and
(ii) For flavors, the name and percentage of alcohol by volume, and
the name and quantity of each ingredient used in the manufacture of the
flavor.
Sec. 27.77 Certificate of effective tax rate computation.
(a) Each time distilled spirits containing eligible wine or
eligible flavors are imported into the United States (unless a standard
effective tax rate has been approved under Sec. 27.78) the importer
shall prepare a certificate of effective tax rate computation showing
the following:
(1) Name, address, and permit number of the importer;
(2) Kind (class and type) of product;
(3) Elements necessary to compute the effective tax rate in
accordance with Sec. 27.42 as follows--
(i) Proof gallons of distilled spirits (exclusive of distilled
spirits derived from eligible flavors);
(ii) Wine gallons of each eligible wine and the percentage of
alcohol by volume of each; and
(iii) Proof gallons of distilled spirits derived from eligible
flavors;
(4) The date of the statement of eligibility of each eligible wine
and of each eligible flavor;
(5) Effective tax rate applied to the product; and
(6) Signature of the importer or other duly authorized person under
the following declaration:
I declare under the penalties of perjury that this certificate
of effective tax rate computation has been examined by me and, to
the best of my knowledge and belief, is true, correct, and complete.
(b) The importer shall file the certificate of effective tax rate
computation with the port director of customs at the port of entry, at
the time of entry summary, or, for distilled spirits to be withdrawn
from customs custody under the provisions of subpart K of this part,
and attach it to the transfer record required by Sec. 27.132.
(Approved by the Office of Management and Budget under control
number 1512-0352)
(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
Sec. 27.78 Standard effective tax rate.
(a) In lieu of preparing a certificate of effective tax rate
computation each time distilled spirits containing eligible wine or
eligible flavors are imported as prescribed in Sec. 27.77, an importer
may have a standard effective tax rate established. The standard
effective tax rate shall be equal to the highest effective tax rate
that may be applicable to the product within the range of possible
manufacturing variations.
(b) To have a standard effective tax rate established, the importer
shall cause to be submitted to the ATF National Laboratory, 1401
Research Boulevard, Rockville, MD 20850, the following:
(1) The samples and information prescribed in Sec. 27.76(b);
(2) An 8-ounce sample of the finished product;
(3) A statement of composition for the finished product listing
the--
(i) Name of the product;
(ii) The least quantity, minimum alcohol content (percentage of
alcohol by volume), and kind (class and type) of each eligible wine;
(iii) The least quantity, minimum alcohol content (percentage of
alcohol by volume), and the name of each eligible flavor used in the
manufacture of the product; and
(iv) Standard effective tax rate for the product computed in
accordance with Sec. 27.42, based on the least quantity and the lowest
alcohol content of eligible wine or eligible flavors used in the
manufacture of the product.
(c) Where a standard effective tax rate has been previously
approved for a product, an importer, other than the person to whom the
approval was issued, may use the approved rate in accordance with the
following procedure: The importer shall obtain a copy of the approval
from the person to whom it was issued and, over the signature of the
importer or other duly authorized person, place the following
declaration.
I declare under the penalties of perjury that this approval has
been examined by me and, to the best of my knowledge and belief, the
standard effective tax rate established for this product is
applicable to all like products contained in this shipment.
(d) A standard effective tax rate may not be employed until
approved by the ATF National Laboratory, 1401 Research Boulevard, Attn:
NBA, Rockville, Maryland 20850. At the time of importation, the
importer shall file with the port Director of Customs, or attach a copy
to the transfer record, a copy of the standard effective tax rate
approval in the manner prescribed in 27.77(b). The use of a standard
effective tax rate shall not relieve an importer from the payment of
any tax found to be due. The Director may at any time require an
importer to immediately discontinue the use of a standard effective tax
rate.
(Approved by the Office of Management and Budget under control
Number 1512-0352)
(Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
Secs. 27.79-27.80 [Reserved]
Subpart G-H--[Reserved]
Secs. 27.81-27.110 [Reserved]
Subpart I--Importation of Distilled Spirits, Wine and Beer in Bulk
Sec. 27.111 Distilled spirits containers.
Imported distilled spirits for nonindustrial use may be bottled
only in containers conforming to the provisions of subpart M of this
part.
(72 Stat. 1374; 26 U.S.C. 5301)
Sec. 27.112 Persons authorized to receive distilled spirits imported
in bulk.
Distilled spirits for nonindustrial use which are imported in bulk
(i.e., in containers having a capacity in excess of 1 gallon (3.785
liters)) may be entered into a class 8 Customs bonded warehouse for
bottling, or may be withdrawn in bulk from Customs custody, only if
entered for exportation or if withdrawn by a person to whom it is
lawful to sell or otherwise dispose of distilled spirits in bulk
pursuant to the Federal Alcohol Administration Act and regulations
issued pursuant thereto (27 CFR part 1). The importation and
disposition of distilled spirits imported in bulk shall be reported as
prescribed by Secs. 27.121 and 27.122.
[[Page 40584]]
(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, 1361, 1374, 1395, (26
U.S.C. 5114. 5207, 5301, 5555))
Sec. 27.113 Persons authorized to receive wine imported in bulk.
Bulk wine for nonindustrial use may be imported in containers in
accordance with the provisions of 27 CFR parts 4 and 24. The
importation and disposition of wine imported in bulk shall be reported
as prescribed by Secs. 27.121 and 27.122.
Sec. 27.114 Persons authorized to receive beer imported in bulk.
Bulk beer may be imported in containers under the provisions of 27
CFR parts 7 and 25. The importation and disposition of beer imported in
bulk shall be reported as prescribed by Secs. 27.121 and 27.122.
Secs. 27.115-27.120 [Reserved]
Subpart J--Importer's Record and Reports
Record and Report of Imported Liquors
Sec. 27.121 General requirements.
(a) Except as provided in Sec. 27.122, every importer who imports
distilled spirits, wine, or beer shall keep such records and render
such reports of the physical receipt and disposition of such liquors as
are required to be kept by a wholesale or retail dealer, depending upon
whether the importer is selling as a wholesaler or retailer, under the
provisions of part 194 of this chapter.
(b) Any importer who does not take physical possession of the
liquors at the time of, but is responsible for, their release from
customs custody shall keep commercial records reflecting such release.
Such records shall identify the kind and quantity of the liquors
released, the name and address of the person receiving the liquors from
customs custody, and the date of release. These records may be
maintained in any system of filing the importer chooses provided the
required information is readily available for examination by ATF
officers.
(c) Importers who have obtained certificates of label approval
shall maintain the originals of such certificates, if in active use, on
file at the premises covered by the importer's basic permit for a
period of not less than 3 years following the last importation of
products covered by such certificates.
(d) Importers who have obtained certifications of label approval
and are no longer using such certificates shall, after 3 years
following the last inportation using such certificate, submit the
original certificate and any copies of such certificate should be
submitted to the Product Compliance Branch, 650 Massachusetts Avenue,
NW, Washington, DC 20226, for cancellation. A letter from the importer
should accompany the certificates of label approval requesting that the
attached certificates be cancelled.
(e) Records of receipt and disposition, as required under
paragraphs (a) or (b) of this section, shall be filed at the premises
covered by the importer's basic permit not later than one business day
following the date of transaction.
(f) Records and reports will not be required under this part with
respect to liquors while in customs custody.
(72 Stat. 1342, 1345, 1395; 26 U.S.C. 5114, 5124, 5555)
Sec. 27.122 Proprietors of qualified premises.
Importing operations conducted by proprietors of premises qualified
under the provisions of this chapter shall be recorded and reported in
accordance with the regulations governing the operations of each such
premises.
(72 Stat. 1342, 1361, 1395; 26 U.S.C. 5114, 5207, 5555)
Filing and Retention of Records and Reports
Sec. 27.123 Filing.
(a) All records and reports required by this part shall be
maintained separately, by transaction or reporting date, at the
premises covered by the importer's basic permit. The regional director
(compliance) may, pursuant to an application, authorize an importer to
maintain files or an individual record at another business location
under the control of the importer, if the alternative location does not
cause undue inconvenience to ATF or customs officers desiring to
examine the files, or delay in the timely submission of documents.
(b) If an importer conducts wholesale operations, one legible copy
of each required record of receipt and disposition shall be filed not
later than one business day following the date of transaction.
(c) If an importer conducts only retail operations, they may
maintain either loose-leaf or book records of the daily receipt of
liquors which contain all the required information.
(d) Supporting documents, such as consignors' invoices, delivery
receipts, bills of lading, etc., or exact copies of the same, may be
filed in accordance with the importer's regular accounting and
recordkeeping practices.
(e) Customs will release shipments to importers when the
certificate of label approval (COLA), ATF F 5100.31, is presented by
the responsible importer. Customs date stamps the COLA with the actual
release date. When additional shipments of the same products arrive at
the port of entry, importers shall exclusively either use the original
COLAs or a copy of the COLA without the release date on it, in order to
obtain release of such additional shipments.
(Approved by the Office of Management and Budget under control
number 1512-0352)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as
amended (26 U.S.C. 5114, 5555))
Sec. 27.124 Retention.
(a) All records required by this part, documents or copies of
documents supporting these records, and file copies of reports required
by this part to be submitted to the regional director (compliance) or
to the port director of customs, shall be retained for not less than
three years.
(b) During this period the records shall be available, during
business hours, for inspection and copying by ATF or customs officers.
Any records, or copies thereof, containing any of the information
required by this part to be prepared, wherever kept, shall also be made
available for inspection and copying.
(c) The regional director (compliance) may require these records to
be kept for an additional period of not more than three years in any
case where he or she determines such retention necessary or advisable.
(72 Stat. 1342, 1345, 1361, 1395; 26 U.S.C. 5114, 5124, 5207, 5555)
Other Records
Sec. 27.125 Transfer record.
The transfer record for imported distilled spirits prescribed in
Sec. 27.132 shall show the following information:
(a) Date prepared;
(b) Serial number of the transfer record, beginning with ``1'' each
January 1;
(c) Name and distilled spirits plant number of the proprietor who
received the spirits from customs custody;
(d) Country of origin;
(e) Name of foreign producer;
(f) Class and type of spirits
(g) Age, in years, months and days of the spirits;
(h) Proof of the spirits;
(i) Type and number of containers; and
(j) Proof gallons of spirits in the shipment.
(Approved by the Office of Management and Budget under control
number 1512-0250).
Sec. 27.126 Package gauge record.
When required in this part, a package gauge record shall be
prepared to show:
[[Page 40585]]
(a) The date prepared;
(b) The related transaction record and its serial number; and
(c) For each package:
(1) Package identification or serial number;
(2) Class and type of spirits
(3) Gross weight;
(4) Proof;
(5) Proof gallons;
(6) Name of warehouseman who received the spirits from customs
custody; and
(7) Name of importer.
(Approved by the Office of Management and Budget under control
number 1512-0250)
Secs. 27.127-27.130 [Reserved]
Subpart K--Transfer of Distilled Spirits From Customs Custody to
Bonded Premises of Distilled Spirits Plant
Sec. 27.131 General provisions.
(a) Imported distilled spirits in bulk containers may, under the
provisions of this subpart, be withdrawn by the proprietor of a
distilled spirits plant from customs custody and transferred in such
bulk containers or by pipelines to the bonded premises of the distilled
spirits plant without payment of the internal revenue tax imposed on
imported spirits by 26 U.S.C. 5001. Imported spirits so withdrawn and
transferred to a distilled spirits plant:
(1) May be redistilled or denatured only if of 185 degrees or more
of proof, and
(2) May be withdrawn from internal revenue bond for any purpose
authorized by 26 U.S.C. Chapter 51, in the same manner as domestic
distilled spirits.
(b) Imported distilled spirits transferred from customs custody to
the bonded premises of a distilled spirits plant under the provisions
of this subpart shall be received and stored thereat, and withdrawn or
transferred therefrom, subject to the applicable provisions of 27 CFR
part 19. The person operating the distilled spirits plant receiving the
imported spirits shall become liable for the tax on distilled spirits
withdrawn from customs custody under 26 U.S.C. 5232. Upon release of
the spirits from customs custody, the importer shall then be relieved
of liability for such tax.
(Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended 26 U.S.C. 5232))
Sec. 27.132 Preparation of transfer record and package gauge record.
The person importing spirits under this subpart shall prepare a
transfer record according to Sec. 27.125. A separate transfer record
shall be prepared for each conveyance. If the spirits are in packages
he/she shall prepare a package gauge record according to Sec. 27.126
and attach it to the transfer record. If the spirits are subject to an
effective tax rate based on the alcohol content eligible for 5010
credit, either the certificate of effective tax rate computation
prescribed by Sec. 27.77 or a copy of the approved standard effective
tax rate issued under Sec. 27.78 shall be attached to the transfer
record. The transfer record and appropriate attachments shall be
prepared in triplicate and, upon release of the spirits from customs
custody, dispersed in the following method:
(a) the original will be forwarded to the consignee;
(b) one copy will be given to the customs officer or proprietor of
the customs bonded warehouse, whichever is appropriate;
(c) the final copy will be retained as part of the importer's
records.
(Approved by the Office of Management and Budget control number
1512-0250)
Sec. 27.133 Inspection and release.
(a) Transfer from customs custody without being deposited in a
customs bonded warehouse. Imported spirits shall be released from
customs custody under procedures administered by the U.S. Customs
Service. The transfer record presented to the proprietor of the
distilled spirits plant shall reflect (in addition to the information
required by Sec. 27.125) the amount of spirits transferred to such
plant, the port of entry, carrier identification, applicable rate of
duty, and serial number of any customs seals affixed to bulk
conveyances.
(b) Transfer from customs bonded warehouse. (1) The proprietor of
the customs bonded warehouse shall not release distilled spirits under
this subpart until the proprietor receives from the importer a transfer
record, if the spirits are in a bulk conveyance, or a package gauge
record and a transfer record, if the spirits are in packages. The
proprietor will enter the elements of the gauge on the appropriate
record and will also enter on the transfer record the port of entry,
carrier identification, warehouse entry number, applicable rate of
duty, and serial number of any customs seals affixed to bulk
conveyances.
(2) When all customs requirements are complied with, the
proprietor of the customs bonded warehouse shall release the spirits
for transfer to the distilled spirits plant by dating and signing on
the transfer record with his title and the statement:
``To the best of my knowledge the information herein is accurate
and the spirits are released.''
The original of the transfer record with any attachments shall be
retained by the consignee.
(Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232))
Sec. 27.134 Sealing of bulk conveyances.
Whenever a shipment of distilled spirits is made from customs
custody to the distilled spirits plant in a tank car or tank truck, all
openings affording access to the spirits shall be sealed under customs
supervision in accordance with customs procedures in such manner as
will prevent unauthorized removal of spirits through such openings
without detection.
(72 Stat. 1314, 1322, 1366; 26 U.S.C. 5001, 5007, 5232)
Sec. 27.135 Receipt by consignee.
Proprietors of distilled spirits plants who receive imported
spirits under this subpart shall follow the requirements in 27 CFR part
19 for spirits received by transfer in bond.
Secs. 27.136-27.140 [Reserved]
Subpart L--Withdrawal of Imported Distilled Spirits From Customs
Custody Free of Tax for Use of the United States
Sec. 27.141 General.
The United States or any of its Government agencies may, upon
filing proper customs entry, withdraw imported distilled spirits free
of tax from customs custody, for non-beverage purposes as authorized by
26 U.S.C. 5313 and under the provisions of this subpart. Before any
distilled spirits may be withdrawn, a permit to procure the spirits
shall be obtained from the Director. A bond is not required for any
Government agency to procure and withdraw spirits free of tax under
this subpart. The provisions of subpart N of part 22 of this chapter
cover the withdrawal of domestically produced tax-free spirits for use
of the United States or any of its Government agencies.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1372, as amended, 1375, as
amended (26 U.S.C. 5273, 5313))
Sec. 27.142 Application and permit, Form 5150.33.
(a) General. All permits previously issued to the United States or
any of its Government agencies on Form 1444 shall remain valid and will
be regulated by the same provisions of this subpart which refer to
permits on Form 5150.33.
[[Page 40586]]
(b) Application. (1) A Government agency of the United States shall
apply to the Director for a permit to procure and withdraw spirits free
of tax on Form 5150.33. Upon approval by the Director, Form 5150.33
will be returned to the agency.
(2) If a Government agency intends to withdraw spirits free of tax
under this part and part 22 of this chapter, Form 5150.33 may be
annotated to cover both types of withdrawals.
(3) A separate permit is not required for each port of entry. The
application, Form 5150.33, may be completed to indicate the applicable
ports of entry in which spirits will be withdrawn from customs custody.
(4) A Government agency may specify on its application that it
desires a single permit authorizing all sub-agencies under its control
to procure and withdraw spirits free of tax under this subpart and
subpart N of part 22 of this chapter; or, each Government location may
individually file an application for a permit, Form 5150.33.
(5) Each application for a permit shall be signed by the head of
the agency or sub-agency, or the incumbent of an office which is
authorized by the head of the agency or sub-agency, to sign. Evidence
of authorization to sign on behalf of the head of an agency or sub-
agency shall be furnished with the application.
(c) Use of spirits. Spirits withdrawn under this subpart may not be
used for non-Government purposes.
(d) Cancellation of permit. All permits on Form 5150.33 and
previous editions on Form 1444 shall remain in force until surrendered
or canceled. Upon surrender or cancellation, the Government agency
shall obtain and destroy all photocopies of the permit furnished to
district directors of customs, and forward the original to the Director
for cancellation.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C.
5313))
Sec. 27.143 Use of permit, Form 5150.33.
Each Government agency shall retain the original of its permit,
Form 5150.33, on file until such time as such permit is surrendered or
cancelled. When filing an initial customs entry to withdraw spirits
free of tax from a port of entry, the agency shall furnish a photocopy
of its permit to the district director of customs for retention. In the
case of an agency holding a single permit for use of its sub-agencies,
an attachment to the permit shall list all locations authorized to
withdraw spirits free of tax from customs custody. Any subsequent
requests for customs entry from the same port shall refer to the permit
number.
(Sec. 201 Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C.
5313))
Sec. 27.144 Entry documents.
Entry documents for importation of tax-free spirits under this
subpart shall record the serial numbers or other identifying numbers of
the containers and the total quantity in proof gallons of the spirits
to be entered.
Sec. 27.145 Customs release.
(a) Upon receipt of appropriate customs entry and a photocopy of a
permit, Form 5150.33 or previous editions on Form 1444, the port
director of customs shall, following an inspection of the shipment,
release spirits free of tax to the Government agency named on the
permit, or attachment thereto.
(b) Customs officers shall not release spirits for shipment until
the shipment has been inspected for losses in transit. If it appears
that a container or containers have sustained losses in transit, the
customs officers shall gauge the damaged container and prepare a
package gauge record for the entire shipment, according to Sec. 27.126.
A copy of the package gauge record will be retained for the customs
files and the original forwarded to the consignee agency.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C.
5313)
Secs. 27.146-27.150 [Reserved]
Subpart M--Requirements For Liquor Bottles
Sec. 27.151 Scope of subpart.
The provisions of this subpart shall apply only to liquor bottles
having a capacity of 200 ml or more, except where expressly applied to
liquor bottles of less than 200 ml capacity.
Sec. 27.152 Standards of fill.
Distilled spirits imported into the United States in containers of
1 gallon (3.785 liters) or less for sale shall be imported only in
liquor bottles, including liquor bottles of less than 200 ml capacity,
which conform to the applicable standards of fill provided in
Sec. 5.47a of this chapter. Empty liquor bottles, including liquor
bottles of less than 200 ml capacity, which conform to the provisions
of part 19, or subpart E of part 5 of this chapter, may be imported for
packaging distilled spirits in the United States as provided in part 19
of this chapter.
Sec. 27.153 Distinctive liquor bottles.
(a) Application. Liquor bottles of distinctive shape or design,
including bottles of less than 200 ml. capacity, may be imported by an
importer (filled bottles) or a bottler (empty bottles). For filled
bottles, the importer shall submit Form 5100.31 to the Director for
bottle approval prior to importation of such bottles into the United
States. For empty bottles, the bottler shall obtain approval from the
Director on Form 5100.31 prior to using the bottles. The importer or
bottler, as applicable, shall certify as to the total capacity of a
representative sample bottle before closure (expressed in milliliters)
on each copy of the form. In addition, the applicant shall affix a
readily legible photograph of the bottle (both front and back) to the
front of each copy of Form 5100.31 along with the label(s) to be used
on the bottle. The applicant shall not submit an actual bottle or an
authentic model unless specifically requested to do so.
(b) Approval or Disapproval. Properly submitted Form 5100.31 to
import distinctive liquor bottles (filled or empty) which have been
imported shall be approved provided such bottles are found by the
Director to:
(1) Meet the requirements of 27 CFR part 5;
(2) Be other than a standard liquor bottle (distinctive);
(3) Be suitable for their intended purpose;
(4) Not jeopardize the revenue; and
(5) Not be deceptive to the consumer. If Form 5100.31 is
disapproved, the applicant shall be notified by the Director of the
reasons for disapproval.
(c) Maintenance and Use of Approved Copy. The applicant shall keep
a copy of the approved Form 5100.31, including an approved photograph
of the distinctive liquor bottle (both front and back), on file at the
applicant's premises. The applicant importer is responsible for
furnishing a copy of the approved Form 5100.31, including a photograph
of the distinctive liquor bottle, to customs officials at each affected
port of entry where the merchandise is examined.
(Sec 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C.
5301))
Sec. 27.154 Bottles not constituting approved containers.
The Director is authorized to disapprove any bottle, including a
bottle of less than 200 ml capacity, for use as a liquor bottle which
is determined to be deceptive. The customs officer at the port of entry
shall deny entry of any such bottle containing distilled spirits upon
advice from the Director that such bottle is not an approved container
for
[[Page 40587]]
distilled spirits for consumption in the United States.
(Sec. 20