Every year, the Bureau of Alcohol, Tobacco and Firearms (ATF) authorizes the refund of about $200 million in federal excise tax to manufacturers who used taxpaid alcohol to make medicines, foods and flavorings. To qualify for a refund (drawback of the tax), these products must be unfit for beverage use.
We in the Nonbeverage Products section of the ATF's National Laboratory Center examine formulas and analyze product samples sent to us by those manufacturers seeking tax refunds on the alcohol they use to manufacture the types of products mentioned above. These companies and the individuals that represent them are our direct customers, whom we serve and with whom we interact on a daily basis. Our examinations and laboratory analyses are intended to benefit our indirect customers -- the American people.
We serve our indirect customers in two key ways:
- We protect the American tax dollar by ensuring that the products on which refunds are given are in fact entitled to such a refund. In other words, we make sure these products would not be consumed as beverages.
- We protect the American consumer by verifying that the product formulas we approve meet federal government and other organizations' standards for product safety and effectiveness.
Services We Provide Our Direct Customers
If you manufacture or plan to manufacture medicines, foods or flavorings using tax paid alcohol, we determine whether your products qualify for a refund of the federal excise tax and meet federal government and other organizations' standards.
Although these are core services we provide, we also:
- Assist in completing Form 5154.1, Formula and Processes for Nonbeverage Product.
- Assist in interpreting applicable regulations.
- Evaluate the impact of your new manufacturing processes on your eligibility for a tax refund.
- Share with you the procedures we use to analyze the product samples you send us.
- Provide the results of our analysis of your samples when requested.
The Nonbeverage Products Section of the ATF Laboratory has developed standards for service based on your input.
When you deal with us you have a right to expect that we will:
- Approve, disapprove or identify deficiencies of submissions within ten (10) working days. Unusually complex products may require additional time, but these account for less than 10% of submissions.
- Respond to your telephone requests for information and assistance by the end of the following business day.
- Hold in the strictest confidence all information you provide us about your product formulas and manufacturing processes.
- Apply the same criteria to the evaluation of formula submission from all our customers.
We realize that there are areas in which we can improve our service to you and that it can be frustrating when your submissions are not processed promptly. We want you to know that we are committed to making the following improvements:
- We will continually look for ways to cut down on the time it takes us to process your formula submissions.
- To better ensure the confidentiality of the information you send us, we plan to establish a system to identify and confirm authorized company contacts and representatives.
- We plan to develop and distribute a document which will provide you with detailed guidelines on the proper submission of Form 1678 and descriptions of the procedures we follow in evaluating formulas.
- We plan to conduct educational seminars to better explain our requirements and give you an opportunity to ask questions.
- Understanding your needs and priorities is important to us. To that end, we intend to establish more face-to-face contacts through meetings, such as industry conferences and plant visits.
You may contact us in writing, by telephone or by fax.
Bureau of Alcohol,
Tobacco and Firearms
National Laboratory
Nonbeverage Products Section
1401 Research Blvd
Rockville, MD 20850-3188
Telephone:
(301) 413-LABS / (310) 413-5227
Fax: (301) 413-WINE / (301) 413-9463
Hours of Operation are Monday through Friday, 7:30 a.m. to 4:30 p.m. Eastern Time.