Rev. Ruling 60-368

Markings on Packages of Distilled Spirits

Section 201.516(a)(3) of the Distilled Spirits Plants Regulations provides that packages of distilled spirits filled on bonded premises must be marked to show the kind of spirits contained therein. Section 201.517(a)(1) of the regulations provides, in part, that where spirits marked with the designation "alcohol" are to be withdrawn on determination of tax, the designation "alcohol" shall be preceded or followed by a word or phrase descriptive of the material from which such spirits were produced. Section 5(e) of the Federal Alcohol Administration Act and section 5.38 of the Distilled Spirits Labeling and Advertising Regulations issued under that Act require that, with certain exceptions, beverage distilled spirits comprised in whole or in part of neutral spirits (alcohol) be labeled to state the name of the commodity from which such neutral spirits have been distilled. Held, the purpose of the provisions of sections 201.516 and 201.517 of he Distilled Spirits Plants Regulations requiring packages of taxpaid alcohol to describe the material from which produced is to provide information for the labeling of consumers containers, as required by the Federal Alcohol Administration Act, in instances where alcohol withdrawn of determination of tax is to be used for non-industrial purposes. Therefore, where alcohol withdrawn in drums on determination of tax is to be used for industrial purposes, proprietors of distilled spirits plants may make application under section 201.62(a) of the regulations for permission to omit markings describing the material from which such alcohol was produced and to substitute in lieu thereof markings or securely affixed labels reading "For industrial use," or "This alcohol solely for industrial use."

26 U.S.C. 5206; 27 CFR 201.517