[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: 27CFR24.295]

[Page 662-663]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 24_WINE--Table of Contents
 
              Subpart N_Removal, Return and Receipt of Wine
 
Sec.  24.295  Return of unmerchantable wine to bond.

    (a) General. Wine produced in the United States which has been 
taxpaid, removed from bonded wine premises, and subsequently determined 
to be unmerchantable may be returned to bonded wine premises for 
reconditioning, reformulation or destruction. The tax paid on United 
States wine may, when such wine is returned to bond, be refunded or 
credited, without interest, to the proprietor of the bonded wine 
premises to which such wine is delivered. However, no tax paid on any 
United States wine for which a claim has been or will be made under the 
provisions of 27 CFR Part 70, subpart G will be refunded or credited. If 
the tax on the United States wine has been determined but not paid, the 
person liable for the tax may, when such wine is returned to bond, be 
relieved of the liability. Claims for refund or credit, or relief from 
tax paid or determined on United States wine returned to bond are filed 
in accordance with Sec.  24.66.
    (b) Receipt. The quantity of unmerchantable taxpaid United States 
wine returned to bond is determined upon receipt on bonded wine 
premises. The quantity determined will be entered on the TTB F 5120.17, 
Report of Bonded Wine Premises Operations for the reporting period 
during which the United States wine is returned.
    (c) Records. The proprietor shall maintain records covering each lot 
of unmerchantable taxpaid wine returned to bond in accordance with Sec.  
24.312. (Sec. 201, Pub. L. 85-859, 72 Stat. 1332,

[[Page 663]]

as amended, 1382, as amended (26 U.S.C. 5044, 5371))

(Approved by the Office of Management and Budget under control numbers 
1512-0216, 1512-0298 and 1512-0492)

[T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 
56 FR 31082, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; 
T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-376, 61 FR 31030, 
June 19, 1996]

                         Taxpaid Wine Operations