[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR17.21]

[Page 319-320]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 17_DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN MANUFACTURING NONBEVERAGE PRODUCTS--Table of Contents
 
                          Subpart C_Special Tax
 
Sec.  17.21  Payment of special tax.


    (a) General. Except as otherwise provided in paragraph (b) of this 
section, each person who uses taxpaid distilled spirits in the 
manufacture or production of nonbeverage products shall pay special tax 
as specified in Sec.  17.22 in order to be eligible to receive drawback 
on the spirits so used. Special tax shall be paid for each tax year 
during which spirits were used in the manufacture of a product covered 
by a drawback claim. If a claim is filed covering taxpaid distilled 
spirits used during the preceding tax year, and special tax has not been 
paid for the preceding tax year, then special tax for the preceding tax 
year shall be paid. Regardless of the portion of a tax year covered by a 
claim, the full annual special tax shall be paid. The manufacturer is 
not required to pay the special tax if drawback is not claimed.

[[Page 320]]

    (b) Suspension of tax. During the period from July 1, 2005, through 
June 30, 2008, the rate of the tax described in paragraph (a) of this 
section is zero. Accordingly, payment of the tax is not a prerequisite 
for claiming drawback on spirits used during that period. However, the 
drawback claimant still must register by filing the special tax return 
on Form 5630.5 during the suspension period even though the amount of 
tax due is zero.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB-36, 70 
FR 62241, Oct. 31, 2005]