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Procedures
Note: This file contains IRS Revenue Procedures and
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- 2011-1 Payment of Tax by Electronic Fund Transfer
- 2010-1 Certification for the Analysis of Wine or Distilled Spirits for Export
- 2009-1 Procedure for Certain Tobacco Products and Cigarette Papers and Tubes Withdrawn from the Market
- 2004-1 TTB Procedure 2004-1, Testing of Calorie, Fat, Carbohydrate, and Protein Content of Alcohol Beverages; Acceptable Tolerance Levels.
- 2001-2 Alternate procedures which tobacco products manufacturers and importers may use to file claims after January 1, 2002 under 26 U.S.C. 5705 for credit or refund of tax on cigarettes withdrawn from the market.
- 2000-1 Alternate procedure for filing claims for cigarettes of tax increase imposed January 1, 2000 and for bearing the ultimate burden of the cigarette floor stocks tax by tobacco product manufacturers and importers.
- 98-3 Importation of Bulk Wine in Bond (note: previously reported as 98-1)
- 98-2 Importation of Bulk Beer in Bond
- 98-1 Labeling of Imported Malt Beverages Bottled or Packed in the United States, and for the Labeling of Blends of Imported and Domestic Malt Beverages Bottled or Packed in the United States (note: previously reported as 98-3)
- 95-1 New Materials To Be Used in the Production of Beer or Cereal Beverages
- 92-1 Payment of Firearms and Ammunition Excise Tax by Electronic Fund Transfer. (note: superseded by Procedure 2011-1)
- 91-1 Payment of Tax by Electronic Fund Transfer.(note: superseded by Procedure 2011-1)
- 90-2 Differentiating Between Pipe Tobacco and Roll-Your-Own Tobacco
- 88-2 Certification and Analysis of U.S. Wine for Export to the EEC
- 88-1 Certificate of Authenticity for Exported Straight Bourbon Whiskey
- 87-4 Tax Classification of Chewing Tobacco or Snuff
- 87-1 Submission of Samples of Alcoholic Beverages to the ATF National Laboratory Center for Testing
- 86-3 Label Approval for Imported Liqueurs, Cordials, Flavored Spirits and Distilled Gins
- 86-2 ATF Certification of Chemists, Enologists or Laboratories
- 86-1 Requirements of the European Economic Community (EEC) Applicable to Certification and Analysis of Commercial Shipments of U.S. Grape Table Wine and U.S. Sparkling Grape Wine
- 84-1 Preparation ATF Forms 2145 (5200.11), Notice of Release of Cigars, Cigarettes, Cigarette Papers or Cigarette Tubes
- 83-2 Automated Thermal Conductivity Analyzer Method for Determining Carbon Dioxide.
- 83-1 Alternate Optional Procedure for Filing Claims Under 26 U.S.C. 5705 for Credit or Refund of Tax On Cigarettes Withdrawn from the Market
- 81-1 Procedures for Adjusting Excise Tax Returns to Increase or Decrease the Amount of Tax Due
- 80-5 Procedures for Tax Exempt Sales of Tobacco Products by Proprietors of Export Warehouses to Persons Crossing the United States Border into Canada or Mexico
- 77-2 Infrared Spectrophotometer Method Authorized for Determining Carbon Dioxide
- 76-3 Manufacture and Use of Plastic Containers
- 76-2 Method for Sequential Solvent Extractions Used in Differentiating Cigars and Cigarettes
- 75-1 Removal of Tax-Exempt Tobacco Products for Use as Supplies on U.S. Navy Ships
- 74-1 Reciprocal Privileges for Iceland and Jordan
- 73-5 Tobacco Tests
- 73-1 Enzymatic Method Authorized for Determining Carbon Dioxide
- 72-20 Environmental Protection
- 71-22 Protecting Water Quality
- 71-5 Tobacco Products Sold to Aircraft Passengers
- 69-27 Receiving Incomplete Shipments of Tobacco Products
- 69-22 Qualification and Certification of Chemists and Laboratories To Analyze Distilled Spirits for Export
- 68-34 Determining Losses of Distilled Spirits
- 67-18 Withdrawal of Tobacco Products From Market
- 66-25 Markings on packages of tobacco product
- 66-22 Preparation and Distribution of Form 2149 Covering Replacement Shipments of Cigars and Cigarettes
- 66-21 Markings on Packages of Cigars
- 66-20 Claims for Cigars and Cigarettes Withdrawn From the Market
- 64-35 Recordkeeping Using ADP Systems
- 62-3 Testing for Spirits Content
Rev.
Proc. 62-3
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to set forth
the approved methods for testing for spirits content
certain chemicals produced and collected in the production
facility of a distilled spirits plant.
SEC.
2. BACKGROUND.
Section
201.278 of the Distilled Spirits Plants Regulations
provides that all chemicals produced, including chemical
by-products of the spirits production system, shall
be substantially free of spirits before being transferred
to storage tanks or removed from the production facilities;
the spirits content of such chemicals shall not, except
as authorized by the Director, Alcohol and Tobacco
Tax Division, exceed 10 percent volume; and the testing
of such chemicals for spirits content will be conducted
by the proprietor in accordance with methods approved
by the Director.
SEC.
3 REQUIRED APPARATUS AND REAGENTS.
The
apparatus and reagents required for testing the chemicals
for spirits content are as follows:
1.
Fusel oil tube-A&TTD type. (The bulb holds three
times the volume of the graduated neck portion. The
graduations are from the top line marked 0 to the
bottom line marked 100.)
2.
Flask or graduate-300 to 500 ml. capacity.
3.
Three graduates-25 ml. capacity.
4.
Saturated salt solution (sodium chloride).
5.
Sulfuric acid, concentrated, specific gravity 1.84
6.
Two percent sulfuric acid solution (2 ml. concentrated
sulfuric acid diluted with distilled water to 100
ml.).
7.
Sodium sulfate, anhydrous (Na2SO4).
8.
Ceric ammonium nitrate reagent. (Triturate 10 g. of
ceric ammonium nitrate ((NH4)2Ce(NO3)6)) with 3.5
ml. concentrated nitric acid (HNO3) and dilute with
distilled water to 125 ml. Filter if cloudy.)
9.
Standard acetone-alcohol solution. (To 90 ml. of acetone
(C.P.) add 10 ml. of ethyl alcohol (C.P.).)
10.
Standard alcohol solution (2 percent ethyl alcohol
(C.P.) 98 percent saturated salt solution).
11.
Chloroform (CHCI3)
12.
Nitric acid, concentrated (HN03).
SEC.
4. APPROVED METHODS FOR TESTING.
Samples
meeting test requirements contain no more than 10
percent ethyl alcohol by volume and, thus, the tests
serve as a rapid screening procedure. Failure to meet
test requirements is not conclusive proof of the presence
of more than 10 percent ethyl alcohol by volume since
other chemicals may be present which affect solubilities
or oxidation rate as in the case of acetone. Where
samples fail to meet the approved method for testing
and other laboratory analyses indicate that the sample
contains less than 10 percent ethyl alcohol by volume,
additional samples should be taken and forwarded to
the regional laboratory for analyses by other methods.
Approved methods for testing acetone, butyl alcohol,
ethyl ether, ethyl oil, and fusel oil are listed below.
1.
Acetone. - Put 5 ml. of ceric ammonium nitrate
reagent in a 25 ml. graduate, add 5 ml. of acetone
sample, close the graduate, and shake several times
to mix. Immediately compare the color with that produced
when 5 ml. of standard acetone-alcohol solution is
similarly treated. If the color of the acetone sample
being tested is not greater than the color of the
standard (made with 5 ml. of standard solution), the
acetone sample contains no more than 10 percent ethyl
alcohol by volume. If desired, both the acetone sample
and the standard may be diluted with equal quantities
of distilled water. The difference in color is more
apparent at 5 percent alcohol since at 10 percent
alcohol the color is quite dark.
2.
Butyl alcohol. - Put 20 ml. of saturated salt
solution in the fusel oil tube and add 2 percent sulfuric
acid solution until the 100 mark on the fusel oil
tube is reached. Add butyl alcohol sample until the
0 mark on the fusel oil tube is reached, close the
fusel oil tube, shake for about 5 minutes, and place
in an upright position to allow the two layers to
separate (30 minutes may be required to get a good
separation). A reading of 90 or less at a temperature
of 60 degrees to 80 degrees F. indicates more than
10 percent ethyl alcohol by volume.*
*(Note:
The ethyl alcohol in the sample is dissolved in saturated
salt solution and remains in the lower layer. The
decrease in the upper layer gives a measure of the
amount of ethyl alcohol contained in the sample.
3.
Ethyl ether. - Put saturated salt solution
in the fusel oil tube until the 100 mark on the fusel
oil tube is reached. Add ethyl ether sample until
the 0 mark on the fusel oil tube is reached, close
the fusel oil tube, shake, and place in an upright
position to allow the two layers to separate (about
2 or 3 minutes). A reading of 90 or less at a temperature
of 60 degrees to 80 degrees F. indicates more than
10 percent ethyl alcohol by volume.*
4.
Ethyl oil. - Either of the following methods
may be used:
(1)
Put saturated salt solution in the fusel oil tube
until the 100 mark on the fusel oil tube is reached.
Add ethyl oil sample until the 0 mark on the fusel
oil tube is reached, close the fusel oil tube, shake
and place in an upright position to allow the two
layers to separate. A reading below 90 at a temperature
of 60 degrees to 80 degrees F. indicates more than
10 percent ethyl alcohol by volume.*
(2)
Put 19 ml. of chloroform in a 25 ml. graduate, add
1 ml. of ethyl oil sample, close the graduate, shake
several times to mix, and then add 5 ml. of saturated
salt solution. Into another 25 ml. graduate put 20
ml. of chloroform, add 5 ml. of standard alcohol solution,
close the graduate, shake for 3 minutes, and place
in an upright position to allow the two layers to
separate. Into each of these two graduates add 5 ml.
of ceric ammonium nitrate reagent and stir several
times to mix reagent with the upper layer in the graduate.
If the color in the graduate containing the ethyl
oil sample is not greater than the color in the graduate
containing the standard alcohol solution, the ethyl
alcohol is not more than 10 percent by volume.
5.
Fusel oil. - Put saturated slat solution in
the fusel oil tube until the 100 mark on the fusel
oil tube is reached. Add fusel oil sample until the
0 mark on the fusel oil tube is reached, close the
fusel oil tube, shake, and place in an upright position
to allow the two layers to separate. A reading below
90 at a temperature of 60 degrees to 80 degrees F.
indicates more than 10 percent ethyl alcohol by volume.*
*(Note:
The ethyl alcohol in the sample is dissolved in saturated
salt solution and remains in the lower layer. The
decrease in the upper layer gives a measure of the
amount of ethyl alcohol contained in the sample.
SEC.
5. TEMPERATURE EFFECTS ON SAMPLE.
Oxidation
rate of acetone is increased by elevated temperatures
and decreased by lower temperatures. An increase in
temperature increases the solubility of the solvents
in the saturated salt solution.
SEC.
6. MOISTURE EFFECTS ON SAMPLE.
Except
for acetone, appreciable quantities of water have
a decided effect on the test results. The water is
completely dissolved in the saturated salt solution
and, thus, would be read in the fusel oil tube as
alcohol. When the solvents meet the requirements of
the test, there is no need to make a correction for
water; but, if the test indicates the presence of
more than 10 percent ethyl alcohol by volume, then
the following procedure may be used to dry the sample
before making the test:
Dehydration
of sample - Put 200 ml. of sample in the 300 to 500
ml. flask or graduate and add approximately 80 grams
of anhydrous sodium sulfate. Shake, let stand for
1 hour (butyl alcohol requires 36 hours contact),
and decant the supernatant liquid which is used as
the test sample in the preceding tests. The anhydrous
sodium sulfate is a fairly effective drying agent
and as such it removes most of the water.
SEC.
7. INQUIRIES.
Inquiries
regarding this Revenue Procedure should refer to its
number and be addressed to the office of the appropriate
Assistant Regional Commissioner, Alcohol and Tobacco
Tax.
26 U.S.C. 5201; 26 CFR 601.301
Return to Top
Rev.
Proc. 64-35
SECTION
1. PURPOSE.
.01
The purpose of this Revenue Procedure is to set forth
guidelines specifying the basic record requirements
which the Internal Revenue Service considers to be
essential where a proprietor or permittee operating
under chapter 51 (Distilled Spirits, Wines and Beer)
or chapter 52 (Tobacco, Cigars, Cigarettes, and Cigarette
Papers and Tubes) of the Internal Revenue Code of
1954 maintains records within an automatic data processing
(ADP) system. For the purpose of this Revenue Procedure,
ADP systems include all accounting systems which process
all or a part of the records, transactions, or other
applicable data of a proprietor or permittee by other
than manual methods.
.02
Because the technology of ADP is evolving rapidly,
these guidelines are not intended to restrict the
uses made by proprietors and permittees except where
such uses would result in noncompliance with record
keeping requirements of the regulations.
SEC.
2. BACKGROUND
The
inherent nature of ADP is such that it may not be
possible to trace transactions from source documents
to end results, or to reconstruct a given account,
unless the system is designed to provide audit trails.
Under regulations issued under chapter 51 of the Code,
it is necessary that records of transactions be such
as will enable any Internal Revenue Service officer
to verify and trace the production, receipt, storage,
and disposition of distilled spirits, wine, and beer
and certain other products made with or containing
wine or distilled spirits and certain other products
made with or containing wine or distilled spirits,
and to ascertain whether there has been compliance
with the law and regulations. Similarly, under regulations
issued under chapter 52 of the Code, it is necessary
that records of specified operations and transactions,
and the auxiliary and supplemental records from which
such records are compiled, be maintained by the proprietor
or permittee and be made available for inspection
by any Internal Revenue Service officer upon his request.
SEC.
3. OBJECTIVES.
Modern
machine accounting systems are capable of recording
business transactions much more rapidly and with greater
accuracy than manual systems, and they are capable
of retaining and producing vast amounts of data. The
ability to produce in legible form, when needed, the
data necessary to meet the requirements of law and
regulations must be carefully considered in designing
and programming a machine system. This factor may
add to the complexity or the systems and require additional
cost, but this cost may be negligible when compared
to the expense that may later be incurred if the systems
cannot practically and readily provide the required
information.
SEC.
4. ADP RECORD GUIDELINES.
.01
ADP accounting systems will vary, just as manual systems
vary, to meet the needs of a particular proprietor
or permittee. However, the procedures built into a
computer's accounting program must include a method
of producing from the punched cards or tapes visible
and legible records which will provide the necessary
details required by the regulations covering the respective
operations, or such details must be available in supplemental
records.
.02
In determining the adequacy of records required by
regulations issued under chapter 51 and chapter 52,
of the Code, maintained within an automatic data processing
system, the Service will consider as acceptable those
systems which comply with guidelines for records requirements
as follows:
(1)
The records maintained by ADP must be supplemented
by such other records as are necessary, so that the
entire records systems will fully comply with the
requirements of the applicable regulations.
(2)
The records must provide the opportunity to trace
any transaction back to the original source or forward
to a final total. If printouts are not made of transactions
at the time they are processed, the system must have
the ability to reconstruct these transactions.
(3)
The system must be such that the information required
by the regulations can be readily furnished without
delay.
(4)
Adequate record retention facilities must be available
for storing tapes and printouts as well as all applicable
supporting documents. These records must be retained
in accordance with the provisions of the Code and
the regulations prescribed thereunder.
(5)
A description of the ADP portion of the accounting
system should be available. The statements and illustrations
as to the scope of operations should be sufficiently
detailed to indicate (a) the application being performed,
(b) the procedures employed in each application (which,
for example, might be supported by flow charts, block
diagrams, or other descriptions of input or output
procedures), and (c) the controls used to insure accurate
and reliable processing. Once an ADP system is installed,
important changes, together with their effective dates,
should be noted in order to preserve an accurate chronological
record.
SEC.
5. NOTIFICATION TO ASSISTANT REGIONAL COMMISSIONER.
As
indicated in section 3, inadequate coverage at the
time an ADP system is installed can prove costly.
Therefore, proprietors and permittees are encouraged
to notify the appropriate Assistant Regional Commissioner,
Alcohol and Tobacco Tax, in advance of installation
of ADP, giving him the details of the records involved
and the proposed method of preparation and retention
so that he can, to the extent possible, determine
in advance the adequacy of the records.
SEC.
6. INQUIRIES
Comments
or inquiries relating to this Revenue Procedure should
be addressed to the appropriate Assistant Regional
Commissioner, Alcohol and Tobacco Tax.
26
U.S.C. 5555, 5741; 26 CFR 601.301
Return to Top
Rev.
Proc. 66-20
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to provide information
as to the date to be shown in claims for credit of
tax, Form 2635, Claim-Alcohol and Tobacco Taxes, or
claims for refund of tax, Form 843, Claim, filed under
section 5705 of the Internal Revenue Code of 1954,
on cigars and cigarettes withdrawn from the market.
SEC.
2. BACKGROUND.
The
period of limitation for filing claims for credit
or refund of tax, as set forth in section 5705(c)
of the Code, is 6 months after the date of withdrawal
from the market, loss (otherwise than by theft), or
destruction of the cigars and cigarettes to which
the claim relates.
SEC.
3. ACCEPTABLE DATES ON CLAIM.
It
will be acceptable for claimants to show on either
Form 2635 or Form 843 as the date of withdrawal from
the market, the date that cigars and cigarettes were
received on the factory premises (as described in
the manufacturer's application for permit), or were
voluntarily destroyed or reduced to tobacco, at a
place other than such premises. In lieu of a listing
of such specific date or dates, the claimant may certify
(under penalties of perjury) that the products covered
by the claim were received on the factory premises,
or voluntarily destroyed or reduced to tobacco, at
a place other than such premises, within 6 months
prior to the date that the claim is filed.
SEC.
4. INQUIRIES.
Inquiries
in regard to this Revenue Procedure should refer to
the number thereof and should be addressed to the
appropriate Assistant Regional Commissioner, Alcohol
and Tobacco Tax.
Revenue
Procedure 59-2, C.B. 1959-1, 800, is hereby superseded.
26
U.S.C. 5705; 26 CFR 601.315
Return to Top
Rev.
Proc. 66-21
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to explain the
requirement concerning the "notice" to appear on packages
of large cigars and to furnish suggestions for compliance
with the regulations.
SEC.
2. BACKGROUND.
The
Internal Revenue Service has received inquiries whether
the appearance of the word "cigars" in the class designation
on a package of large cigars would fulfill the requirements
of 26 CFR 270.214 and 275.73 or if the word "cigars"
must be separately stated on the package.
SEC.
3. REQUIREMENT OF REGULATIONS.
Under
the return system it is necessary that packages of
cigars and cigarettes have positive expressions of
the quantity, kind, and class of the cigars and cigarettes
contained in the packages. Therefore, for large cigars
26 CFR 270.214 and 275.73 specifically require that
packages of such products shall, before removal subject
to tax, have adequately imprinted thereon, or on a
label securely affixed thereto, the designation "cigars"
and the appropriate class designation.
This
means that the appearance on the package of the word
"cigars" in the class designation for large cigars
does not fulfill the requirement of 26 CFR 270.214
or 275.73 and that the word "cigars" must be separately
and adequately stated. While such descriptive words
as "cigarillos," "cheroots," "blunts," "panatelas,"
etc., may be used on packages of cigars, they will
not be considered as a substitute for the word "cigars."
SEC.
4. SUGGESTIONS FOR COMPLIANCE.
.01
The Internal Revenue Service suggests to manufacturers
and importers the following ways in which the word
"cigars" may appear on the package. The word "cigars"
may be imprinted directly on the package or on a label
securely affixed to the package. For example, it may
appear in connection with (1) a brand name, such as
"Perfect Cigars," (2) the quantity statement, such
as "25 cigars," or (3) a slogan, such as "finest quality
cigars." .02 Manufacturers and importers are urged
to submit packages to their Assistant Regional Commissioner,
Alcohol and Tobacco Tax, for advice where there is
any doubt about compliance with the requirement of
the regulations.
SEC.
5. INQUIRIES.
Inquiries
in regard to this Revenue Procedure should refer to
its number and be addressed to the office of the appropriate
Assistant Regional Commissioner, Alcohol and Tobacco
Tax.
Revenue
Procedure 62-5, C.B. 1962-1, 426, is hereby superseded.
26
U.S.C., 5723; 26 CFR 601.311
Return to Top
Rev.
Proc 66-22
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to outline the
procedure for the preparation and distribution by
manufacturers of tobacco products of Form 2149, Notice
of Removal of Cigars, Cigarettes, Cigarette Papers,
or Cigarette Tubes, from Factory for Export, covering
shipments of tax-exempt cigars and cigarettes replacing
products lost, damaged, or destroyed in transit for
exportation.
SEC.
2. BACKGROUND.
.01
26 CFR 290.198 and 290.199 provide for the preparation
and distribution of the several copies of Form 2149,
and 26 CFR 290.203 provides for the filing of two
copies of the form with the District Director of Customs
at the port of exportation, for each shipment removed
for exportation.
.02
Where cigars and cigarettes are lost, damaged, or
destroyed in transit for exportation (either the total
shipment of a part of the shipment) and the manufacturer
of tobacco products makes a replacement shipment,
the two sets of Form 2149 will, in the aggregate,
indicate the removal for exportation of more products
than are entered on the export declaration and ship's
manifest. Since the District Director of Customs certifies
to only the actual quantity exported, the additional
Form 2149 covering a replacement shipment often creates
confusing and additional work in his office. Therefore,
the following procedure should be used when replacement
shipments are made.
SEC.
3. PROCEDURE.
.01
Preparation and Disposition of Forms 2149 Covering
Replacement Shipments. - When tax-exempt cigars
and cigarettes are removed from the factory to replace
cigars and cigarettes lost, damaged, or destroyed
in transit for exportation, Form 2149 should contain
a statement to the effect that the cigars and cigarettes
listed thereon were removed from the factory to replace
cigars and cigarettes removed under Form 2149, serial
number, which were lost, damaged, or destroyed, as
applicable. It should also contain an explanation
of the loss, damage, or destruction. Only two copies
of the form need be prepared, one copy to be retained
by the manufacturer as a part of his records and one
copy to be forwarded to the Assistant Regional Commissioner,
Alcohol and Tobacco Tax. No copy should be sent to
the District Director of Customs for the reason stated
in section 2.02 above.
.02
Accounting for Lost, Damaged, or Destroyed Cigars
and Cigarettes. - Manufacturers are reminded that
lost, damaged, or destroyed cigars and cigarettes
must be accounted for by tax-payment, by return to
the factory, or by the filing of a claim for remission
of the tax liability with the Assistance Regional
Commissioner, Alcohol and Tobacco Tax.
SEC.
4. INQUIRIES.
Inquiries
in regard to this Revenue Procedure should refer to
its number and be addressed to the office of the Assistant
Regional Commissioner, Alcohol and Tobacco Tax.
Revenue
Procedure 62-22, C.B. 1962-2, 486, is hereby superseded.
26
U.S.C. 5704; 26 CFR 601.311
Return to Top
Rev.
Proc. 66-23
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to set forth
the procedure to be followed by manufacturers of tobacco
products for recording and reporting cigars and cigarettes
removed subject to tax and the treatment of tax determined
(including taxpaid) cigars and cigarettes received
into the factory.
SEC.
2. BACKGROUND.
Recent
inspections disclosed that some manufacturers of tobacco
products were not fully reporting the quantities of
cigars and cigarettes removed subject to tax because
they were reducing the quantity of products actually
removed to the extent of tax determined products returned
to the factory. The manufacturers based their action
on the consideration that (1) no claim for allowance
or refund of tax would be made on the returned products,
and (2) when such products were again removed subject
to tax, the tax would be redetermined and paid. However,
there is no basis for this practice in the applicable
laws and regulations.
SEC.
3. RECORDING AND REPORTING REMOVALS SUBJECT TO TAX.
A
manufacturer of tobacco products must enter in his
records and reports the total quantity of cigars and
cigarettes removed subject to tax, reflect such quantity
in the tax return for the period in which the removals
occurred, and pay the full amount of tax (except for
authorized adjustments). In no case may the manufacturer,
in his reports and tax returns, reduce the quantity
of products actually removed subject to tax by the
quantity of tax determined products returned to the
factory.
SEC.
4. TREATMENT OF TAX DETERMINED PRODUCTS RECEIVED INTO
FACTORY.
.01
All tax determined (including taxpaid) cigars and
cigarettes (those which have not been returned to
an "in bond" status) received into the factory must
be segregated and identified as tax determined products
and their receipt and disposition entered in the records
in the account of taxpaid or tax determined products
received. If reshipped, supporting records (such as
copies of invoices, bills of lading, shipping tickets,
etc.) must clearly identify the products as reshipped
tax determined products. Lack of such identifications
may result in the assessment of tax on the reshipped
products. Tax determined cigars and cigarettes so
handled would not be included in monthly reports.
.02
If tax determined cigars and cigarettes received into
the factory are later to be returned to an "in bond"
status, such disposition must be recorded in the taxpaid
or tax determined account and the products concurrently
picked up in the "received by return to bond" account.
Thus, when the cigars and cigarettes are picked up
as received by return to bond, they will be included
in the monthly reports. When such cigars and cigarettes
are then removed subject to tax, they will be so reported
and fully covered in the tax return for the period
in which they were removed. If the manufacturer wishes
to obtain allowance, credit, or refund of tax which
has been previously determined or paid on the products
returned to bond, he may file claim on Form 2635,
Claim-Alcohol and Tobacco Taxes, or Form 843, Claim,
as applicable, and follow the procedures prescribed
in 26 CFR 270.282, 270.283, 270.311, and 270.313 which
involve notifying the Assistant Regional Commissioner,
Alcohol and Tobacco Tax, before returning the products
to an "in bond" status.
SEC.
5. INQUIRIES.
Inquiries
in regard to this Revenue Procedure should refer to
its number and be addressed to the office of the appropriate
Assistant Regional Commissioner, Alcohol and Tobacco
Tax.
Revenue
Procedure 63-13, C.B. 1963-1, 501, is hereby superseded.
26
U.S.C. 5703, 5705, 5741; 26 CFR 601.311
Return to Top
Rev.
Proc. 66-25
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to furnish instructions
as to which manufacturer's name and location, or permit
number (to be shown in the mark as required by 26
CFR 270.212), should appear on packages of cigars
or cigarettes produced and packaged by one manufacturer
and transferred in bond to another such manufacturer.
SEC.
2. BACKGROUND.
Under
the provisions of section 5704(b) of the Internal
Revenue Code of 1954 and 26 CFR 270.233, a manufacturer
of tobacco products may transfer cigars and cigarettes
under his bond, without payment of tax, to the factory
of any manufacturer of tobacco products. When so transferred,
the cigars and cigarettes are exempt from the packaging
requirements of 26 CFR 270.211. However, the regulations
contemplate that the cigars or cigarettes may be shipped
in bulk or in packages, as desired. When the cigars
or cigarettes are transferred in packages, the question
has been raised as to which manufacturer the mark
on the package should identify.
SEC.
3. IDENTIFICATION OF MANUFACTURER LIABLE FOR TAX
Packages
containing cigars or cigarettes produced by one manufacturer
and transferred in bond, without payment of tax, to
another manufacturer of such products should, in the
mark required by the regulations, identify by name
and location (by city and State), or by permit number,
the manufacturer who will remove the cigars and cigarettes
subject to tax. He becomes liable for the tax on such
products upon their receipt and will usually be the
proper claimant in respect to credit, refund, or allowance
provided by law.
SEC.
4. INQUIRIES.
Inquiries
regarding this Revenue Procedure should refer to its
number and be addressed to the appropriate Assistant
Regional Commissioner, Alcohol and Tobacco Tax.
Revenue
Procedure 64-6, C.B. 1964-1, (Part 1), 664, is hereby
superseded.
26
U.S.C. 5704, 5723; 26 CFR 601.311
Return to Top
Rev.
Proc. 67-18
SECTION
1. PURPOSE.
Revenue
Procedure 66-24, C.B. 1966-1, 652, established procedures
to be followed by a manufacturer of tobacco products
(or by his authorized representative) in executing
Form 3069, Schedule of Cigars, Cigarettes, or Cigarette
Papers or Tubes Withdrawn from the Market. In order
to make such procedures applicable to Form 3069 without
regard to revision date, they are restated herein
to omit reference, in sections 3 and 4, to specific
item numbers appearing on the form.
SEC.
2. BACKGROUND.
.01
Damaged cigars and cigarettes were destroyed at the
premises of a wholesale tobacco dealer under the supervision
of an alcohol and tobacco tax inspector. The dealer
prepared Form 3069 with the intention of transmitting
the schedule to the manufacturer who would file claim
for credit or refund of tax under section 5705 of
the Internal Revenue Code of 1954. However, the manufacturer
was not aware of the destruction of such products.
The matter did not come to his attention until after
the destruction of the cigars and cigarettes. Therefore,
the manufacturer could not properly claim that he
had withdrawn them from the market. Accordingly, a
claim for credit or refund of tax on such products
is not allowable.
.02
One condition to the credit or refund of tax on domestic
cigars and cigarettes under section 5705 of the Code
is the withdrawal of the products from the market
by the manufacturerwho paid the tax. However,
the law and regulations do not preclude the allowance
of a claim where the cigars and cigarettes are destroyed
or reduced to tobacco at a location other than the
factory premises if the manufacturer takes possession
or acquires ownership of the cigars and cigarettes
prior to destruction or reduction to tobacco.
SEC.
3. SIGNATURE REQUIRED ON FORM 3069.
The
action of the manufacturer in withdrawing cigars and
cigarettes from the market must be evidenced by the
signature of the manufacturer (or by the signature
of the manufacturer's authorized representative) on
the schedule, Form 3069.
SEC.
4. EXECUTION OF SCHEDULE FOR THE MANUFACTURER BY HIS
REPRESENTATIVE.
Whenever
a manufacturer withdraws cigars and cigarettes from
the market and the schedule, Form 3069, is to be executed
in his behalf by an employee such as a district manager,
distribution manager, etc., not otherwise authorized
to sign documents filed with the Assistant Regional
Commissioner, Alcohol and Tobacco Tax, the manufacturer
is responsible for timely filing Form 1534, Power
of Attorney, as provided for in 26 CFR 270.68 authorizing
such person to so act. It is the responsibility of
the manufacturer to have on file with the Assistant
Regional Commissioner, Alcohol and Tobacco Tax, for
the region where the claim will be filed a Form 1534
prior to the execution of any schedule for the manufacturer
by the person named in the power of attorney. Execution
of Form 3069 by a person not authorized to do so may
result in the disallowance of the claim. After cigars
and cigarettes have been disposed of and a claim for
credit or refund filed, the determination will be
made in alcohol and tobacco tax offices as to whether
the person who executed Form 3069 was duly authorized
to act in behalf of the manufacturer. Manufacturers
should fully instruct their representatives in the
proper preparation of Form 3069.
SEC.
5. INQUIRIES.
Inquiries
in regard to this Revenue Procedure should refer to
its number and be addressed to the office of the appropriate
Assistant Regional Commissioner, Alcohol and Tobacco
Tax.
SEC.
6. EFFECT ON OTHER DOCUMENTS.
Revenue
Procedure 66-24, C.B. 1966-1, 652, is hereby superseded.
26
U.S.C. 5705; 26 CFR 601.315
Return to Top
Rev.
Proc. 68-34
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to modify the
provisions of Revenue Procedure 68-18, C.B. 1968-1,
808, to allow for soakage in determining losses from
tampered packages of distilled spirits in bonded storage.
(See paragraphs 3.01 (a) and (d).) For convenience,
the provisions of the Revenue Procedure, as modified,
are restated.
SEC.
2. BACKGROUND.
Section
5006(b)(1) of the Internal Revenue Code of 1954 and
26 CFR 201.310(a) provide that when it is found that
a package of distilled spirits in bond has sustained
a loss due to theft or unauthorized voluntary destruction,
immediate taxpayment of the original quantity of spirits
entered for deposit in storage in the package may
be required. An exception is made that where losses
from any cause other than theft or unauthorized voluntary
destruction can be established by the proprietor to
the satisfaction of the Assistant Regional Commissioner,
Alcohol and Tobacco Tax, the tax on the loss so established
may be credited against the tax on the original quantity.
Acceptable procedures for determining normal storage
losses for packages filled by individual gauge and
by average fill methods are prescribed below.
SEC.
3. METHODS FOR DETERMINING LOSSES.
.01
Packages filled by the individual gauge method.
- In order to credit the tax on normal storage losses
against the tax on the original quantity of spirits
entered for deposit in a package filled by the individual
gauge method, when such package has sustained a loss
due to theft or unauthorized voluntary destruction,
the proprietor should:
(a)
Determine the loss from the tampered package by actual
gauge or by using the present gross weight, present
proof, and original tare of the package, and subtracting
the tax gallons so obtained from the original tax
gallons entered into the package.
(b)
Weigh ten similar packages containing the same kind
of spirits produced on the same day as the spirits
in the tampered package and stored under similar conditions.
(c)
Select, from the ten packages weighed, the package
which, on the basis of original and present gross
weights, appears to have sustained the least loss.
(d)
Determine the loss from the comparison package by
the same method used to determine the loss from the
tampered package. The tax gallon loss so determined
will be considered the normal storage loss from the
tampered package.
(e)
Subtract the tax gallons considered to be the normal
storage loss from the total tax gallon loss from the
tampered package.
The
quantity determined in (e) above will be considered
as a loss due to theft or unauthorized voluntary destruction
and must be taxpaid in accordance with the provisions
of 26 CFR Part 201.
.02
Packages filled by average fill methods. -
In order to credit the tax on normal storage losses
against the tax on the original quantity of spirits
entered for deposit in a package filled by an average
fill method, when such package has sustained a loss
due to theft or unauthorized voluntary destruction,
the proprietor should:
(a)
Gauge the tampered package by weight and proof.
(b)
Weigh ten similar packages containing the same kind
of spirits produced on the same day as the spirits
in the tampered package and stored under similar conditions.
(c)
Select from the ten packages weighed the package with
the heaviest gross weight.
(d)
Subtract the gross weight of the tampered package
from the gross weight of the comparison package.
(e)
Convert the difference between the gross weights of
the two packages to tax gallons, using the proof of
the spirits in the tampered package.
The
quantity determined in (e) above will be considered
as a loss due to theft or unauthorized voluntary destruction
and must be taxpaid in accordance with the provisions
of 26 CFR Part 201.
SEC.
4. EFFECT ON OTHER DOCUMENTS.
This
Revenue Procedure supersedes Revenue Procedure 68-18,
C.B. 1968-1, 808.
SEC.
5. INQUIRIES.
Inquiries
concerning this Revenue Procedure should refer to
its number and be addressed to the appropriate Assistant
Regional Commissioner, Alcohol and Tobacco Tax.
26
U.S.C. 5006, 5204; 26 CFR 601.301
Return to Top
Rev.
Proc. 69-22
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to establish
procedures for the qualification and certification
of chemists and laboratories desiring to analyze distilled
spirits that are to be exported to foreign countries.
SEC.
2. BACKGROUND.
Many
countries require that imported distilled spirits
be chemically analyzed before their customs authorities
may release them into commercial channels. Some of
these countries provide that such spirits must be
analyzed by their own government laboratories or by
laboratories certified by their government. Others
permit the analysis to be made in the exporting country,
as long as such analysis is made by a chemist or laboratory
certified as qualified to perform such analysis by
the government of the exporting country. Italy is
one such country in the latter category, and Revenue
Procedure 65-9, C.B. 1965-1, 735, as amended by Revenue
Procedure 65-24, C.B. 1965-2, 1006, established procedures
whereby the Director, Alcohol, Tobacco and Firearms
Division, could certify that chemists or laboratories
were qualified to analyze distilled spirits to be
exported to that country. The Service has been requested
to provide similar procedures with respect to distilled
spirits to be exported to countries other than Italy.
SEC.
3. APPLICATION FOR CERTIFICATION.
Applications
for certification that a chemist or laboratory is
qualified to analyze distilled spirits to be exported,
may be filed by a graduate chemist, by a laboratory
under the direction of a graduate chemist, or by an
exporter on behalf of such a chemist or laboratory.
The application shall be filed in duplicate, on the
applicant's letterhead, with the Director, Alcohol,
Tobacco and Firearms Division, Internal Revenue Service,
Washington, D.C. 20224. It will be supported by documentation
of the graduate chemist's educational qualifications
and professional experience (this information may
be subject to verification). Chemists or laboratories
already certified by the Director under the provisions
of Revenue Procedure 65-9 need not again apply for
certification. They will automatically be considered
qualified to analyze distilled spirits under this
Revenue Procedure, and their will be included on the
lists of certified chemists and laboratories to be
distributed by the Director.
SEC.
4. QUALIFICATION FOR CERTIFICATION.
.01
To qualify for certification by the Director, Alcohol,
Tobacco and Firearms Division, the chemist or laboratory
must:
(a)
Have access to such laboratory equipment and facilities
as may, be necessary to analyze distilled spirits
according to the techniques described in subdivisions
(1)-(10) of the following subparagraph (b). The adequacy
of such equipment and facilities may be subject to
verification or inspection.
(b)
Submit to the Director, Alcohol, Tobacco and Firearms
Division (Attention: National Office Laboratory),
Internal Revenue Service, Washington, D.C. 20224,
a report of the analysis of any sample of straight
whisky and any sample of blended whisky, together
with a one-pint sample of each of the whiskies analyzed.
This report should show the following with respect
to each sample:
(1)
Proof and Percent Alcohol by Volume, as determined
using the techniques described in 26 CFR 186.31 and
186.32 (Gauging Manual of the U.S. Treasury Department,
Internal Revenue Service, 1962 edition). Proof should
be reported to the nearest 0. 1° proof; percent
alcohol by volume to the nearest 0.05%.
(2)
Specific Gravity in air at 60° F.,
as calculated from the proof, table 6 of the Gauging
Manual (1962 edition). Report to the nearest 0.00001.
(3)
Methvl Alcohol, as determined using
the chromotropic acid colorimetric method described
at sections 9.051-9.054 of the Official Methods of
Analysis of the Association of Official Agricultural
Chemists (OMA, 10th edition). The determination will
be made on a straight distillate from the sample,
without concentration of the methyl alcohol as provided
for in the latter half of section 9.053. Report to
the nearest 0. 1 cc per 100 cc anhydrous alcohol.
(4)
Total Solids, as determined using the techniques
described at section 9.023 of the OMA, 10th edition.
Report to the nearest 0.1 mg per 100 cc anhydrous
alcohol.
(5)
Total Acidity (as acetic acid), as determined
using the techniques described at section 9.030 of
the OMA, 10th edition. Report to the nearest 0. 1
mg per 100 cc anhydrous alcohol.
(6)
Esters (as ethyl acetate), as determined using
the techniques described at sections 9.034-9.035 of
the OMA, 10th edition, or the gas liquid chromatographic
method as described in 51 456-457 (1968) of
the journal of the Association of Official Analytical
Chemists. Report to the nearest 0. 1 mg per 100 cc
anhydrous alcohol.
(7)
Aldehydes, as determined using the techniques
described at sections 9.034 and 9.036 of
the OMA, 10th edition. Report to the nearest 0.
1 mg per 100 cc anhydrous alcohol.
(8)
Furfural, as determined using the techniques
described at sections 9.046 and 9.047 of
the OMA, 10th edition. Report to the nearest 0.
1 mg per 100 cc anhydrous alcohol.
(9)
Higher Alcohol (fusel oil), as determined using
the P-Dimethylaminobenzaldehyde method as described
at sections 9.037-9.039 of the OMA, 10th edition,
the 4- Hydroxybenzaldehyde-3-sulfonic acid method
as described at sections 9.040- 9.045 of the
OMA, 10th edition, or the gas liquid chromatographic
method. as described in 51 456-457 (1968) of the journal
of the Association of Official Analytical Chemists.
Report to the nearest 0.1 mg per 100 cc anhydrous
alcohol.
(10)
Total Secondary Products (volatile impurities)
calculated as the sum total of items (5), (6),
(7), (8), and (9). Report to the nearest 0. 1
mg per 100 cc anhydrous alcohol.
(c)
Submit to the Director, Alcohol, Tobacco and Firearms
Division, a report of the analysis (performed in accordance
with subdivision (3) above) of the methyl alcohol
content of a sample that will be furnished by the
Director. A sample is furnished in this instance because
methyl alcohol will usually not be present in the
straight and blended whiskies analyzed under subparagraph
(b) above.
SEC.
5. CERTIFICATION OF APPLICANTS.
If
U.S. Government chemists verify the reports of analysis
submitted by the applicant, and other requirements
have been met, the Director, Alcohol, Tobacco and
Firearms Division, will certify the laboratory or
chemist and so notify the applicant. Any person, agency
of a foreign government, etc., desiring to obtain
a list of the chemists and laboratories so
certified, should submit a request for such list to
the Director, Alcohol, Tobacco and Firearms Division.
If the laboratory or chemist does not meet the requirements
for certification, the applicant will be so notified.
SEC.
6. ANALYSES BY CERTIFIED CHEMISTS OR LABORATORIES.
Certified
chemists or laboratories will perform their analyses
of distilled spirits using the techniques described
at subdivisions 4.01(b)(1)-4.01(b)(10) of this
Revenue Procedure, Where tests other than those listed
are required by a foreign government, the Director,
Alcohol, Tobacco and Firearms Division, may, upon
application in duplicate, authorize the reporting
of data relating to such additional tests on the certificate
of analysis. Approval of such applications may be
conditioned upon compliance with any additional qualifying
requirements the Director may prescribe.
SEC.
7. CERTIFICATES OF ANALYSIS.
.01
Certificates of analysis will be signed by the certified
chemist, or, where a laboratory under the direction
of a graduate chemist has been certified by the Director,
by such graduate chemist. Directly under his signature,
the chemist may enter the designation "Chemist certified
by United States Internal Revenue Service under Revenue
Procedure 69-22."
.02
As an alternative, where the certificate of analysis
is being prepared for a country that requires a statement
by a governmental authority of the exporting country
on the certificate of analysis, the following procedure
may be followed. The signed certificate will be forwarded
to the Internal Revenue Officer assigned to the distilled
spirits plant at which the spirits were bottled or
packaged, or, where no officer is assigned to such
plant, to the Assistant Regional Commissioner, Alcohol,
Tobacco and Firearms. The assigned officer or Assistant
Regional Commissioner may, if the chemist or laboratory
making the analysis has been duly certified by the
Director, Alcohol, Tobacco and Firearms Division,
attest as follows on the certificate of analysis:
"I hereby attest that (name of certified chemist or
laboratory) is duly certified to make analyses under
Revenue Procedure 69-22 of the U.S. Treasury Department,
Internal Revenue Service." One copy of the certificate
of analysis will be retained by the assigned officer
or Assistant Regional Commissioner, and the remaining
copy or copies will be forwarded to the exporter.
SEC.
8. EFFECT ON OTHER DOCUMENTS.
Sections
1, 2, 3, and 5 of Revenue Procedure 65-9, C.B. 1965-1,
735, and Revenue Procedure 65-24, C.B. 1965-2, 1006,
are hereby superseded.
SEC.
9. INQUIRIES.
Inquiries
regarding this Revenue Procedure should refer to its
number and be addressed to the office of the appropriate
Assistant Regional Commissioner Alcohol, Tobacco and
Firearms.
26
U.S.C. 7805; 26 CFR 601.301
Return to Top
Rev.
Proc. 69-27
SECTION
1. PURPOSE.
This
Revenue Procedure establishes the procedure to be
followed when tobacco articles are transferred in
bond to or between export warehouses or are returned
to a factory from an export warehouse and part of
the shipment is delayed and later delivered to the
consignee.
SEC.
2. BACKGROUND.
Occasionally
proprietors of export warehouses receive shipments
of tobacco articles from factories or other export
warehouses and find the shipment is incomplete in
relation to the quantities shown on the covering Form
2149 or 2150. Manufacturers may also occasionally
receive incomplete shipments of tobacco articles being
returned to factories from export warehouses. The
regulations in 26 CFR 290.200 and 290.201 require
that immediately upon receipt of a shipment the person
receiving the shipment (consignee) shall execute the
certificate of receipt on each copy of the notice
of removal, noting thereon any discrepancy, and return
one copy of the notice to the person who made the
shipment (consignor). In some instances the missing
articles are later delivered to the consignee.
SEC.
3. TRANSFER TO EXPORT WAREHOUSE.
.01
When tobacco articles which have been delayed during
a transfer in bond are delivered to an export warehouse
after the proprietor has received part of the shipment
and properly disposed of the covering Form 2149 or
2150, he will enter in his records and on his record
copy of the covering Form 2149 or 2150 the quantities
of articles so received and the actual date of receipt.
He shall also prepare a letter, in original and three
copies, to the consignor informing him of the receipt.
All copies of the letter should be signed and it should
identify, by serial number and date, the Form 2149
or 2150 covering the shipment from which the articles
were delayed, specify the kind and quantity of articles
belatedly received, and give the date of actual receipt.
The original and one copy of the letter should be
sent to the consignor, one copy should be submitted
with the proprietor's monthly report for the month
in which the delayed articles were received, and the
remaining copy retained by the proprietor as part
of his record. .02 When the consignor receives the
two copies of the letter he should send the original
to his assistant regional commissioner to obtain relief
from the tax liability on the articles accounted for
(or submit it with a claim if the tax has been paid
or assessed), and associate the remaining copy of
the letter with the related Form 2149 or 2150 and
retain it as part of his records.
SEC.
4. RETURN TO FACTORY.
.01
When the delayed portion of a shipment of tobacco
articles being returned from an export warehouse is
delivered to a factory after the manufacturer has
received part of the shipment and properly disposed
of the covering Form 2150, he will enter in his records
and on his record copy of the covering Form 2150 the
quantities of articles so received and the actual
date of receipt. He shall also prepare a letter, in
original and two copies, to the export warehouse proprietor
informing him of the receipt. All copies of the letter
should be signed and it should identify, by serial
number and date, the Form 2150 covering the shipment
from which the articles were delayed, specify the
kind and quantity of articles belatedly received,
and give the date of actual receipt. The original
and one copy of the letter should be sent to the export
warehouse proprietor, and the remaining copy should
be retained by the manufacturer as part of his records.
.02
Upon receipt of the two copies of the letter the export
warehouse proprietor should forward the original to
his assistant regional commissioner to obtain relief
from the tax liability on the tobacco articles accounted
for (or submit it with a claim if the tax has been
paid or assessed), and associate the remaining copy
of the letter with the related Form 2150 and retain
it as part of his records.
SEC.
5. INQUIRIES.
Inquiries
regarding this Revenue Procedure should refer to its
number and be addressed to the office of your Assistant
Regional Commissioner, Alcohol, Tobacco and Firearms.
26
U.S.C. 5704; 26 CFR 601.311
Return to Top
Rev.
Proc. 71-5
SECTION
1. PURPOSE.
This
Revenue Procedure expresses procedures which may be
followed by proprietors of export warehouses at international
airports when tobacco articles are sold to passengers
of aircraft departing for destinations outside the
United States.
SEC.
2. BACKGROUND.
Section
5704 of the Internal Revenue Code of 1954 provides
that an export warehouse proprietor may remove tobacco
articles, without payment of tax, for consumption
beyond the jurisdiction of the internal revenue laws
of the United States. Regulations in 26 CFR 290.198
require that the export warehouse proprietor prepare
a notice of removal, Form 2150, for each shipment
removed from his warehouse. In connection with sales
to airline passengers this requires that a separate
Form 2150 be prepared for each shipment of tobacco
articles sold to each passenger. It is reasonable
that an alternate procedure should be established
which would be in compliance with the intent of regulations
and afford equivalent security to the revenue, but
would not require a separate Form 2150 for each passenger.
Therefore, after review and concurrence of his assistant
regional commissioner (alcohol, tobacco and firearms),
an export warehouse proprietor making such removals
may follow the procedures in Section 3 below which
the Director, Alcohol, Tobacco and Firearms Division,
finds in compliance with the intent of law and regulations.
SEC.
3. ACCEPTABLE PROCEDURES
.01
Sales slips and lading receipts. The export
warehouse proprietor will prepare a separate sales
slip for each sale of tobacco articles. The minimum
information which must be included on the sales slip
is a pre-printed serial number; a list of the articles
sold; the name of the passenger; and identity of the
flight by airline name (or abbreviation), flight number,
and date. A lading receipt on which all sales slips
for a flight are itemized will be prepared by the
proprietor and presented to the purser or other appropriate
aircrew member, who will certify that the tobacco
articles were received on board and that delivery
to the passengers will not be made until the aircraft
has left the territorial limits of the United States.
The lading receipt may or may not be certified by
a customs officer, depending on local Customs' requirements.
The needs of Customs and the airline companies will
be considered in determining the numbers of copies
and disposition of sales tickets and lading receipts.
.02
Other responsibilities of proprietor. The purchaser
must be clearly informed that the tobacco articles
are for consumption outside the United States and
if returned to the United States must be declared
to Customs and are subject to duty or tax. This may
be accomplished by a conspicuous statement on a copy
of the sales slip furnished the passenger, or by some
other method acceptable to Customs and the assistant
regional commissioner (alcohol, tobacco and firearms).
If a flight does not depart or is diverted or returns
without reaching a destination outside the United
States the proprietor is responsible for recovering
and returning the unexported tobacco articles to his
warehouse.
.03
Notice of removal, Form 2150. Notice of removal,
Form 2150, may be prepared daily, weekly, or semi-monthly
on the basis of the lading receipts executed during
the removal period. The frequency of preparation of
Forms 2150 will be dictated by the volume of operations
and administrative convenience to all concerned. If
the Form 2150 is prepared weekly and any week overlaps
two months, a separate Form 2150 must be filed for
removals during that portion of the week falling in
each of the months. The Form 2150 will be prepared
in triplicate and presented to Customs for execution
of the certificate of export. The original completed
form will be immediately submitted to the assistant
regional commissioner (alcohol, tobacco and firearms),
one copy will be furnished to Customs, and one copy
will be retained by the proprietor.
.04
Acceptance of procedures to Customs and assistant
regional commissioner (alcohol, tobacco and firearms).
Procedures which an export warehouse proprietor wishes
to establish in accordance with the foregoing criteria
must be acceptable to the appropriate local customs
officer as evidenced by his written consent. Specifics
of the proposed procedures must also be approved in
all respects by the assistant regional commissioner
(alcohol, tobacco and firearms) before the proprietor
begins operating under the procedures.
SEC.
4. ALTERNATE PROCEDURES.
The
export warehouse proprietor may not use procedures
other than those specifically set forth in 26 CFR
Part 290 or conforming to this Revenue Procedure unless
they are approved by the Director, Alcohol, Tobacco
and Firearms Division, as provided in 26 CFR 290.72
relating to authorizations for alternate methods or
procedures. Those proprietors who already have such
specific authorizations may continue to operate as
approved therein.
SEC.
5. INQUIRIES.
Inquiries
concerning this Revenue Procedure should refer to
its number and be addressed to the office of the appropriate
assistant regional commissioner (alcohol, tobacco
and firearms).
26
U.S.C. 5704; 26 CFR 601.311
Return to Top
Rev.
Proc. 71-22
SECTION
1. PURPOSE.
The
purpose of this Revenue Procedure is to prescribe
procedures for obtaining information relating to water
quality consideration as a part of applications for
licenses or permits issued by Assistant Regional Commissioners,
Alcohol, Tobacco and Firearms.
SEC.
2. BACKGROUND.
.01
Section 21(b)(1) of the Federal Water Pollution Control
Act, as amended (33 U.S.C. 1171(b)), provides in effect
that any applicant for a Federal license or permit
(or any type of authorization which "permits" an operation
under Internal Revenue laws) to conduct any activity
which may result in any discharge into the navigable
waters of the United States shall obtain a certification
from the State in which the discharge originates that
there is reasonable assurance that such activity will
be conducted in a manner which will not violate applicable
water quality standards.
.02
Regulations 18 CFR Part 615, State Certification of
Activities Requiring A Federal License or Permit,
(36 F.R. 8563) implementing section 21(b) of the Act
provide that the licensing or permitting agency shall
require that an applicant for a license or permit
include in the form of the application, information
relating to water quality considerations.
.03
The Alcohol, Tobacco and Firearms Division of the
Internal Revenue Service has developed Form 4805,
Supplemental Information on Water Quality Considerations
Under 33 U.S.C. 1171(b), which is to be completed
by the applicant and submitted with and as a part
of his application for license or permit. The information
provided for on the form will meet the requirements
of section 21(b) of the Act and the regulations issued
thereunder as to water quality considerations.
SEC.
3. OBTAINING FORMS 4805.
Form
4805 will be furnished each applicant by the Assistant
Regional Commissioner, Alcohol, Tobacco and Firearms,
along with the license or permit application form
requested.
SEC.
4. FILING FORM 4805.
.01
The applicant will prepare an original and four copies
of Form 4805 and submit all of them as an attachment
to and as part of his application for a license or
permit.
.02
Form 4805 will contain an authorization, to be signed
by the applicant, that copies of the form may be furnished
to the applicable State water quality agency and the
Regional Administrator, EPA.
SEC.
5. INQUIRIES.
Inquiries
regarding this Revenue Procedure should refer to its
number and be addressed to the office of the appropriate
Assistant Regional Commissioner, Alcohol, Tobacco
and Firearms.
26
U.S.C. 5171, 5271, 5401, 5502, 5511; 26 CFR 601.301
Return to Top
Rev.
Proc. 72-20
SECTION
1. PURPOSE.
This
Revenue Procedure sets out procedures for furnishing
environmental information concerning proposed activities
for which applications, notices, bonds, and formulas
(hereinafter referred to as applications) are filed
with the Internal Revenue Service, Alcohol, Tobacco
and Firearms Division.
SEC.
2. BACKGROUND.
.01
The National Environmental Policy Act of 1969 (NEPA),
83 Stat. 852, 42 U.S.C. 4321, established national
policy, goals, and procedures for protecting and enhancing
the environment. The Act applies to all Federal departments
and agencies and requires an analysis of the environmental
consequences of proposed major Federal actions which
might have a significant effect on the environment.
.02
NEPA further requires that all Federal agencies prepare
a detailed statement of the environmental impact for
every major Federal action which the agency concludes
could significantly affect the environment. The President's
Council on Environmental Quality issued Guidelines
which set forth procedures to be followed by Federal
agencies in implementing NEPA. Within these Guidelines,
projects and continuing activities involving Federal
licenses, permits, leases, certificates or other entitlements
for use such as those administered by the Alcohol,
Tobacco and Firearms Division, have been determined
to be in that category of major Federal actions that
may require preparation of environmental statements.
.03
Regarding proposed activities for which licenses,
permits, authorizations, rulings or approvals are
required, the Service must, to fulfill its responsibilities
under NEPA, have information concerning the environmental
effect of the proposed activity to determine the need
for preparation of environmental statements. Therefore,
it will usually be necessary for applicants to submit
this information.
SEC.
3. ACTIONS WHICH MAY REQUIRE ENVIRONMENTAL STATEMENTS.
.01
Internal Revenue Service actions which may have a
significant adverse effect on the environment and
therefore require preparation of environmental statements
include, but are not limited to, the following Alcohol,
Tobacco and Firearms actions:
1.
The issuance of licenses and permits, including:
a.
Permits under Chapter 51 (other than withdrawal permits)
and permits under Chapter 52, I.R.C.
b.
Permits under Section 4 of the Federal Alcohol Administration
Act (27 U.S.C. 204).
c.
Licenses under Chapters 40 and 44 of title 18 U.S.C.
2.
The approval of authorizations which "permit" the
operation of an activity under Internal Revenue laws,
including but not limited to:
a.
Form 27-C, Brewer's Notice.
b.
Form 27-F, Registration of Vinegar Plant.
c.
Form 27-G, Registration of Volatile Fruit-Flavor Concentrate
Plant.
d.
Form 1676, Bond Covering Removal to an Use of Wine
at Vinegar Plant.
e.
Form 2102, Bond-Manufacturer of Cigarette Papers and
Tubes.
f.
Form 4328, Notice of Intent to Manufacture Liquor
Bottles, and Assignment of Manufacturer's Number.
g.
Letter applications for operation of experimental
or pilot plants.
3.
The approval of special applications and formulas,
and issuance of letter rulings, by the Alcohol, Tobacco
and Firearms National or Regional Offices. This would
not, however, include "notices" submitted if approval
by ATF is not required for the operation covered by
the notice.
4.
Any further action by the Service after the original
issuance or approval under 1, 2 or 3 above, such as
renewal, amendment, or reissuance.
.02
If the activities contemplated under 3.01 above would
have a significant adverse effect on the environment
as a consequence of the Service's action, the Service
is required to prepare an environmental impact statement.
A proposed activity would be considered to significantly
affect the environment when it would, for example:
1.
Lead to a noticeable change in the ambient noise level
for a substantial number of people, or significantly
contribute to congestion.
2.
Divide or disrupt an established community as to its
physical, social, historical, cultural, or natural
aspects.
3.
Have a significant adverse aesthetic or visual effect.
4.
Destroy or derogate from important recreational areas,
places of unique interest or scenic beauty.
5.
Substantially alter the pattern of behavior of a nonhuman
species.
6.
Interfere with important breeding, nesting, or feeding
grounds.
7.
Lead to a significant increase in air or water pollution
in a given area.
8.
Disturb the ecological balance of a land or water
area.
9.
Involve a reasonable possibility of contamination
of a public water supply source, treatment facility,
or distribution system.
SEC.
4. REQUIREMENT FOR FORM 4871.
Persons
filing applications, notices, registrations, or bonds
for licenses, permits, or authorizations, such as
those listed under items 1 and 2 of 3.01 above, should
furnish environmental information with their applications
by attaching an original and one copy of Form 4871,
Environmental Information. When specifically requested
by the Assistant Regional Commissioner, Alcohol, Tobacco
and Firearms, or the Director, Alcohol, Tobacco and
Firearms Division, persons filing special applications,
requests for rulings, or formulas, as covered in items
3 and 4 of 3.01 above, should also prepare and submit
Form 4871 in original and one copy. In most instances,
and applicant for special authorization or ruling
can avoid unnecessary delay and preparation of Form
4871 if a request adequately described any effect
on the environment of the proposed activity.
SEC.
5. ACTION WHEN ENVIRONMENTAL STATEMENT IS REQUIRED.
If
the Assistant Regional Commissioner, Alcohol, Tobacco
and Firearms, or the Director, Alcohol, Tobacco and
Firearms Division, determines that a proposed activity
would significantly affect the environment, he is
required by NEPA to prepare an environmental impact
statement. The responsible official will request applicants
to furnish any additional information regarding the
environmental effects of the proposed activity necessary
for preparation of the environmental statement. The
statement will be prepared, circulated, and made available
to the public in accordance with the Guidelines of
the Council on Environmental Quality.
SEC.
6. TIMELY FILING OF ENVIRONMENTAL INFORMATION.
It
is extremely important that applications, Forms 4871,
and any other necessary environmental information
be submitted by the applicant as early as possible.
The Service is required by NEPA to consider the environmental
effects of a proposed action prior to issuance of
any license, permit, authorization or other entitlement.
If an environmental statement is necessary the time
required for preparation, circulation, and public
notice may cause considerable delay in final action
on the application. The minimum time between receipt
of application and final action after statements are
prepared will be about 120 days, and longer periods
should usually be expected.
SEC.
7. INQUIRIES.
Any
inquiries regarding this Revenue Procedure should
refer to its number and be addressed to the office
of the appropriate Assistant Regional Commissioner,
Alcohol, Tobacco and Firearms.
18
U.S.C. 843, 923; 26 U.S.C. 5008, 5703; 27 U.S.C. 204;
26 CFR 601.301
Return to Top
ATF Proc. 73-1
SECTION
1. PURPOSE.
The
purpose of this ATF Procedure is to announce that
the enzymatic method is an authorized test procedure
for determining the amount of carbon dioxide added
to or retained in still wines under the provisions
of 26 CFR 240.531 and 240.534.
SEC.
2. BACKGROUND.
Public
Law 85-859 amended 26 U.S.C. 5041(a) to provide that
a limited quantity of carbon dioxide may be added
to or retained in still wines. 26 CFR 240.534 provides
that the Director, Bureau of Alcohol, Tobacco and
Firearms may prescribe test methods for determining
the carbon dioxide content of still wines. Revenue
Procedure 59-33, C.B. 1959-2, 953 (Internal Revenue),
authorized two procedures, the manometric method and
the volumetric (referred to in that Revenue Procedure
as the "Gasometric Procedure" and the "Titrimetric
Procedure").
SEC.
3. THE ENZYMATIC METHOD.
The
Director, Bureau of Alcohol, Tobacco and Firearms
has determined that the enzymatic method is an acceptable
test procedure for determining the amount of carbon
dioxide retained in or added to still wines. Any of
the three methods -- the enzymatic method, the manometric
method, or the volumetric method -- may be used to
determine the carbon dioxide content of still wines.
As a matter of convenience, all three procedures are
described in detail in section 4. Except for minor
editorial changes, these procedures are the same as
those appearing on pages 189-191 of the Eleventh Edition
of the Official Methods of Analysis, published by
the Association of Official Analytical Chemists, Washington,
D.C.
SEC.
4. DESCRIPTION OF TEST PROCEDURES
.01
Manometric method
1.
Reagents
(a)
Sodium bicarbonate standard solutions.--Dry 150-200
grams NaHCO3 over H2SO4
for 24 hours. Weigh designated amounts of dried NaHCO3,
transfer to 1 liter volumetric flasks with approximately
700 milliliters recently boiled H20, and
add 15 milliliters NaOH solution, (c). Add 200 milliliters
absolute alcohol, mix, cool, and dilute to volume
with boiled H20. Use 4.2955 grams for 255
milligrams CO2/100 milliliters standard;
4.7727 grams for 250; 5.2500 grams for 275; and 5.7273
grams for 300.
(b)
Hydrogen peroxide solution.--10%. Dilute 20 milliliters
30% H2O2with 40 milliliters
recently boiled H2O.
(c)
Sodium hydroxide solution. -- 50%. Transfer 763 grams
reagent grade NaOH pellets to 1 liter Pyrex graduated
cylinder, add recently boiled H2O, cool,
and dilute to 1 liter. Mix until solution is complete
and set aside at least 5 days until Na2CO3
settles, leaving clear solution.
2.
Apparatus
(a)
Carbon dioxide apparatus.--Volume of system is approximately
350 milliliters (Available from New York Laboratory
Supply Co. and Scott Labs, Inc., 860 South 19 Street,
Richmond, California 94804). Test all glass joints
with vacuum tester after evacuation.
(b)
Vacuum tester. -- High frequency self-contained generator
operated from 115 volt ac outlet. Consists of adjustable
interrupter, vibrating spark gap, condenser, resonator
coil, and gap tip.
(c)
Magnetic Stirrer with Teflon stirring bar.--Fisher
Flexa-Mix or equivalent with stirring bars 1-1 3/8"
long.
(d)
Vacuum pump. -- Welch Dist-O-Pump or equivalent, with
motor, single stage, vented exhaust; to be operated
with vented exhaust valve open for pumping condensable
vapors. Insert 3-way stopcock between pump and apparatus
to allow air to enter system. Ordinary high vacuum
pump can be used if H2SO4 trap
with 3-way stopcock is inserted between pump and apparatus.
Change acid frequently.
(e)
Silicone grease, high vacuum type. -- Stable to heat
and contains no carbon-to-carbon linkages. Grease
may be removed from glassware with Varsol or hot kerosene.
3.
Calibration of Vacuum system
Pipet
50 milliliters standard NaHCO3 solution
and 3 milliliters 10% H2O2 solution
into reaction flask, and carefully grease joints.
Start magnetic stirrer and evacuate system approximately
1 minute. Close system to pump at 3-way stopcock,
gently tap Hg columns, and read manometer to nearest
0.5 mm to obtain initial reading. Hg levels should
remain constant; changes indicate leak, probably caused
by insufficient grease at joints.
Add
10 milliliters H3PO4 and continue
rapid stirring 5 minutes. Gently tap Hg columns and
read total pressure in centimeters Hg to nearest 0.5
mm to obtain final reading.
Record
gas temperature in oC.
Open
3-way stopcock on apparatus to pump. Then slowly open
3-way stopcock between pump and apparatus to let air
flow into system. Disconnect apparatus and thoroughly
wash inner portion of acid dispensing unit and reaction
flask. Rinse with acetone and dry with suction.
Determine
total pressure from each NaHCO3 standard
solution in triplicate and calculate average volume
of system as follows:
From
final pressure reading in centimeters Hg, subtract
initial reading and vapor pressure increase due to
H3PO4 effect as given in table:
Percent Alcohol |
Vapor Pressure, centimeters
increase due to H3PO4 |
0 |
0.67 |
5 |
0.68 |
10 |
0.69 |
15 |
0.75 |
20 |
0.77 |
25 |
0.77 |
50 |
1.00 |
75 |
1.53 |
100 |
2.80 |
Then
V = 76RTg/MP, where V is system volume in liters;
R is gas constant in liter-atmospheres /degree /mole,
0.08205; T is absolute temperature, 273 + room temperature
in 0C; g is grams CO2 in 50
milliliter sample; M is molecular weight of C02
in grams; and P is corrected pressure of CO2
in centimeters Hg.
Calculate
correction for Hg displaced in manometer tubing, V
= p r2L/2, where L is difference in height
of column in centimeters and r is radius of manometer
tubing.
Calibrated
volume of system, Vo=V-Vm.
In
calculating weight CO2 in sample, Hg displaced
in tubing, Vm, is added to calibrated volume
of system, Vo.(V=Vo+Vm)
4.
Preparation of Sample
Chill
unopened bottle of wine in ice-salt bath to slightly
below 32oF (30 minutes for 1/10 gallon
bottle and 1 hour for 1/5). Open bottle and rapidly
add 1.5 milliliters 50% NaOH solution for each 100
milliliters of wine. Quickly close bottle with rubber
stopper, remove from bath, and shake several minutes.
Let contents come to room temperature.
5.
Determination
Pipet
50 milliliters sample and 3 milliliters 10% H2O2
into reaction flask, carefully grease joints, and
proceed as in Calibration of Vacuum System.
From
total pressure in centimeters Hg, subtract vapor pressure
of alcohol-H2O and pressure due to H3PO4
effect. Calculate grams CO2/100 milliliters
wine = 14.327PV/T.
.02
Volumetric method
1.
Reagents
(a)
Sodium hydroxide standard solution--0.25N. Prepare
according to instructions in Appendix, using phenolphthalein-thymolphthalein
indicator. Restandardize daily against standard HCl,
(b), in presence of 5 milliliters BaCl2
solution, (c), and indicator (e).
(b)
Hydrochloric acid standard solution.--O.25N. Standardize
against standard NaOH, (a), using indicator (e).
(c)
Barium chloride solution.--Dissolve 60-65 grams BaCl2·
2H2O in 1 liter H2O and neutralize
to phenolphthalein.
(d)
Acid phosphate solution.--Dissolve 20 grams NaH2PO4·
H2O in H2O, add 3 milliliters
H3PO4, and dilute to 100 milliliters.
(e)
Phenolphthalein - thymolphthalein mixed indicator.--Dissolve
1 gram phenolphthalein and 0.5 gram thymolphthalein
in 100 milliliters alcohol.
2.
Apparatus
Connect
500 milliliter special distilling flask (rubber stopper
and ordinary distilling flask may be used) through
approximately 8 mm glass tubing to series of 3 Pyrex
test tubes, 25 X 200 mm, each fitted at inlet with
gas dispersion tube with 12 mm fritted end of coarse
porosity and 8 mm stem (Fisher No. 11-138 or equivalent).
Connect final exit tube to trapped vacuum line or
filter pump.
3.
Determination
Connect
apparatus and place test tube receivers in beaker
of H2O at below 27oC. Pipet
20 milliliters standard 0.25N NaOH into first 2 receivers
and 10 milliliters 0.25N NaOH and 10 milliliters BaCl2
solution into third.
Prepare
sample as in Manometric Procedure above.
Pipet
50 milliliters of the alkaline wine into distilling
flask an add 3 milliliters 10% H2O2
(See .01, 1. (b)). Add boiling chips (not marble).
Attach vacuum line to last receiver and slowly increase
vacuum until bubbling practically stops; then open
vacuum line fully. (This keeps system under partial
vacuum so that stoppers will not be blown out on heating
by sudden surge of steam or CO2.) Add approximately
35 milliliters acid phosphate solution to dropping
funnel and carefully admit approximately 30 milliliters
into distilling flask. Agitate flask gently to mix
acid and sample.
Heat
gently and when CO2 evolution slows, heat
vigorously. After a few milliliters of liquid distills
and top of first receiver is warm, all CO2
will have been driven into receivers. Close vacuum
line between trap and receivers and slowly admit air
through dropping funnel until pressure equilibrium
is reached.
Transfer
contents and rinsings of first 2 receivers and dispersion
tubes into titration flask. (Also add contents of
third if BaC03 has precipitated.) Add 50
milliliters BaCl2 solution and titrate
with standard HCl to phenolphthalein end point.
Weight
C02 in grams/100 milliliters = [(ml. NaOH
X normality) - (ml. HCl X normality)] X 0.022 X 1.015
X (100/50)
.03
Enzymatic method
1.
Reagent
Carbonic
anhydrase solution.--Prepare aqueous solution containing
approximately 1 milligram enzyme /milliliter. This
solution is stable approximately 2 weeks in refrigerator.
2.
Determination
Cool
sample to OoC. or less, so that it can
be pipetted without loss of CO2. Gently
mix by inverting bottle several times. With automatic
25 or 30 milliliter pipet with Teflon stopcock, dispense
aliquot of 0.1N NaOH into beaker. Rinse 20 milliliter
pipet with sample to prevent warming sample with possible
loss of CO2. Pipet sample with tip submerged
just below surface of NaOH in beaker. Add 3-4 drops
enzyme, and place beaker under glass and calomel electrodes.
(Beckman 41263 and 40463 are satisfactory.) Titrate
to pH 8.45 with 0.1N H2SO4 from
5 milliliter buret graduated in 0.01 milliliter.
To
correct for presence of acids other than H2CO3,
place 50 milliliters wine in 500 milliliter heavy-walled
flask at room temperature and agitate 1 minute under
vacuum of approximately 27". Titrate 20 milliliters
to pH 7.75 with 0.1N NaOH as above. Subtract milliliters
used from that used in first titration. Calculate
as follows: [(Net milliliters NaOH X normality) -
(milliliters H2SO4 X normality)]
X 100 X 44 /milliliters sample = milligrams CO2
/100 milliliters wine.
.04
Appendix: Standardization of Sodium Hydroxide Using
Potassium Hydrogen Phthalate
1.
Apparatus
Use
buret and pipet calibrated by National Bureau of Standards
or by analyst. Protect exists to air of automatic
burets from CO2 contamination by suitable
guard tubes containing soda-lime. Use containers of
alkali-resistant glass.
2.
Reagents
(a)
Carbonate-free water.--Prepare by one of following
methods: (1) Boil H2O 20 minutes and cool
with soda-lime protection; (2) bubble air, freed from
CO2 by passing through tower of soda-lime,
through H2O for 12 hours.
(b)
Sodium hydroxide solution.--(1 + 1). To 1 part NaOH
(reagent quality containing less than 5% Na2C03)
in flask add 1 part H20 and swirl until
solution is complete. Close with rubber stopper. Set
aside until Na2CO3 has settled,
leaving perfectly clear liquid (approximately 10 days).
(c)
Acid potassium phthalate.--National Bureau of Standards
Standard Sample for Acidimetry 84. Crush to pass Number
100 sieve. Dry 2 hours at 120o. Cool in
desiccator containing H2SO4.
3.
Preparation of Standard Solution
Following
table gives approximate quantities of NaOH solution
(1 + 1) necessary to make 10 liters of standard solutions:
Approximate normality |
Milliliters NaOH to
be diluted to 10 liters |
0.01 |
5.4 |
0.02 |
10.8 |
0.10 |
54.0 |
0.50 |
270.0 |
1.0 |
540.0 |
Add
required quantity of NaOH (1 + 1) to 10 liters CO2-free
H2O. Check normality, which should be slightly
high, and adjust to desired concentration by following
formula: V1=V2xN2/N1,
where N2 and V2 represent normality
and volume of the stock solution, respectively, and
V1, the volume to which stock solution
should be diluted to obtain desired normality, N1.
Standardize final solution by the following procedure:
Accurately
weigh enough dried KHC8H4O4
to titrate approximately 40 milliliters and transfer
to 300 milliliter flask that has been swept free from
CO2. Add 50 milliliters cool C02-free
H20. Stopper flask and swirl gently until
sample dissolves. Titrate to pH 8.6 with solution
being standardized, taking precautions to exclude
C02 and using as indicator either glass-electrode
pH meter or 3 drops of phenolphthalein. In latter
case, determine end point by comparison with pH 8.6
buffer solution, containing 3 drops of phenolphthalein.
Determine volume of NaOH required to produce end point
of blank by matching color in another flask containing
3 drops of phenolphthalein and the same volume of
CO2-free H2O. Subtract the volume
required from that used in the first titration and
calculate normality.
grams KHC8H404 X
1000
Normality = --------------------------
milliliters NaOH X 204.229
SEC.
5. EFFECT ON OTHER DOCUMENTS. This ATF Procedure supersedes
Revenue Procedure 59-33, C.B. 1959-2, 953 (Internal
Revenue).
SEC.
6. INQUIRIES.
Inquiries
regarding this ATF Procedure should refer to its number
and be addressed to the appropriate Regional Director,
Bureau of Alcohol, Tobacco and Firearms.
26 CFR 601.301: IMPOSITION OF TAXES, QUALIFICATION
REQUIREMENTS, AND REGULATIONS. (Also 240.534)[26 U.S.C.
240.534 recodified as 27 CFR 24.245]
Revenue
Procedure 59-33 superseded. [See also ATF procedurs
77-2 and 83-2]
Return to Top
ATF
Proc. 73-5
(Synopsis)
Tobacco
Tests. Methods used by ATF to determine if specific
reconstituted tobacco material is acceptable as a
cigar wrapper, and to determine if a product wrapped
in such material is a cigar or cigarette for tax purposes
are described. (Superseded in part by ATF Proc. 76-2
)
26
CFR 270.11, 275.11, and 601.301.
Return to Top
ATF
Proc. 74-1
(Synopsis)
Reciprocal
Privileges for Iceland and Jordan. Iceland and Jordan
are added to the list of foreign countries to which
the reciprocal privileges provided by section 309
of the Tariff Act of 1930, as amended (19 U.S.C. 1309),
may be extended. Alcohol, distilled spirits, beer,
and wine may be withdrawn free of tax, or with benefit
of drawback, for use as supplies on aircraft registered
in Iceland and Jordan and engaged in foreign trade.
26
CFR 601.301, 252.23.
Return to Top
ATF
Proc. 75-1
(Synopsis)
Removal
of Tax-Exempt Tobacco Products for Use as Supplies
on U.S. Navy Ships. Manufacturers of tobacco products
and proprietors of tobacco export warehouses may accept
the certification of the commanding officer or supply
officer for procurement of tax-exempt tobacco products
for listed classes (generally excludes harbor craft)
of U.S. Navy ships on orders to proceed beyond the
jurisdiction of the internal revenue laws of the United
States. The proper certification is as follows:
These
tobacco products will be held as sea stores for issue
and consumption outside the three-mile limits of the
United States.
Commanding
Officer
(or
Supply Officer of a listed vessel)
26
CFR 290.64, 290.206, 601.311.
Return to Top
ATF Proc. 76-2
(Synopsis)
Method
for Sequential Solvent Extractions Used in Differentiating
Cigars and Cigarettes. The sequential solvent extraction
method used by ATF to differentiate between a cigar
or cigarette for tax purposes is described. (ATF Proc.
73-5 superseded in part
26
CFR 270.11, 275.11, 290.14, 290.15, 295.11, and 601.311.
Return to Top
ATF Proc. 76-3
Section
1. Purpose.
This
ATF Procedure sets forth the position of the Bureau
of Alcohol, Tobacco and Firearms (ATF) with regard
to the possible use of plastic containers for bottling
distilled spirits and provides procedural guidelines
for affected industries.
SEC.
2. BACKGROUND.
.01
The concept of utilizing plastic for manufacturing
liquor bottles is not new. Several years ago an experimental
packaging and marketing program was authorized for
distilled spirits plant proprietors who proposed to
bottle distilled spirits in polyvinyl chloride (PVC)
plastic bottles. The experimental program was terminated,
however, on May 11, 1973 (Industry Circular 73-10),
as a result of a Food and Drug Administration (FDA)
proposal that PVC resin not be used as a component
of food packaging material where such material would
come in contact with alcoholic foods. Since that time,
there has been no authorization given to package distilled
spirits in plastic containers of any kind.
.02
ATF is aware of a renewed interest on the part of
the distilled spirits industry regarding the development
and acceptability of a plastic liquor bottle. Over
the past few years, plastics technology has progressed
to the point that plastic barrier resins other than
PVC may now be capable of meeting FDA requirements
for alcoholic beverage packaging. It is conceivable,
therefore, that rigid or semirigid containers manufactured
with one or more of these plastic resins may ultimately
be considered feasible by the industry for packaging
distilled spirits products.
SEC.
3. PRIMARY CONSIDERATIONS.
.01
No action will be taken by the Bureau with regard
to industry applications for the use of plastic liquor
bottles until the following conditions and considerations
have been appropriately taken into account:
1.
Bottle Specifications
(a)
Bottles must be rigid or semirigid, i.e., having a
molded shape or design which cannot be permanently
altered by pressure without damage to the bottle.
(b)
The plastic compound must be approved by the Food
and Drug Administration for use in containers for
packaging alcoholic beverage products for human consumption.
Written verification from FDA will be required to
assure that the plastic formulation meets all applicable
FDA requirements.
(c)
Bottles must be manufactured only in approved sizes.
2.
Laboratory Tests
The
ATF laboratory will conduct tests of plastic bottles
regarding their suitability for packaging distilled
spirits. These tests will take into consideration
proof gain or loss, volume reduction, and other parameters.
3.
Environmental Assessments
Under
the National Environmental Policy Act of 1969, we
are required to consider the environmental impacts
of any major action taken by the Bureau. In addition
to the Environmental Impact Statement which was issued
regarding the proposed PVC liquor bottles, there will
be a need for further studies into the environmental
aspects of other plastics prior to our taking any
action regarding their proposed use in the manufacture
of liquor bottles. Environmental Impact Statements
pertaining to liquor bottles proposed to be manufactured
with other plastic formulations may have to be prepared
and issued before a decision can be reached.
SEC.
4. BUREAU PROCEDURE.
.01
Preliminary Testing Program
The
Bureau has no objection to the experimental use of
plastic liquor bottles for shelf testing, organoleptic
research, or other applicable tests conducted under
laboratory conditions. Such tests shall utilize samples
withdrawn in accordance with 27 CFR Part 201 and may
not involve distribution of distilled spirits packaged
in plastic containers to consumers in any way. Test
results may be provided to the Bureau to assist the
ATF laboratory in its analysis of the plastic material.
.02
Application for Approval
Any
authorized bottler or importer desirous of seeking
permanent approval to package distilled spirits in
plastic containers for distribution will be required
to submit a formal letter application to the Director.
Verification must be provided with this application
that the plastic compound in question meets all applicable
FDA requirements for alcoholic beverage packaging.
Any extractive and toxicity data received in support
of this verification will be subject to confirmation
by the Food and Drug Administration. Applicants should
also furnish any available environmental information
regarding the plastic formulation to the Bureau as
an aid in the preparation of any Environmental Assessments
that may have to be prepared. This information may
be submitted with, or at any time prior to, the formal
application.
.03
Samples
Samples
of plastic containers shall be made available to the
Bureau before an application may be considered. Such
samples may be submitted with the formal application
or in conjunction with any preliminary testing program.
The samples submitted should include at least six
empty plastic bottles of each size to be used, two
filled plastic bottles of each distilled spirits product
and two filled glass bottles of each product for purposes
of control and comparison.
.04
Final Action
We
anticipate that satisfying the foregoing requirements
will be a time-consuming task. Therefore, we feel
that a final decision on any formal application could
not be made in the near future.
SEC.
5. INQUIRIES.
Inquiries
concerning this procedure should refer to its number
and be addressed to the Assistant Director, Regulatory
Enforcement, Bureau of Alcohol, Tobacco and Firearms,
1200 Pennsylvania Avenue, NW., Washington, DC 20226.
Return to Top
ATF
Proc. 77-2
A
test procedure using an infrared spectrophotometer
is an acceptable test procedure for the determination
of the amount of carbon dioxide added to or retained
in still wine. ATF Proc. 73-1 amplified.
SECTION
1. PURPOSE.
The
purpose of this ATF Procedure is to announce that
a test procedure using an infrared spectrophotometer
is authorized for determining the amount of carbon
dioxide added to, or retained in, still wines under
the provisions of 27 CFR 240.531 and 240.534.
SEC.
2. BACKGROUND
Public
Law 85-859 amended 26 U.S.C. 5041(a) to provide that
a limited quantity of carbon dioxide may be present
in still wines. 27 CFR 240.534 provides that the Director,
Bureau of Alcohol, Tobacco and Firearms, will announce
the test procedures authorized for determining the
carbon dioxide content in such wine. Revenue Procedure
59-33, 1959-2 C.B. 953 (Internal Revenue), -- which
was subsequently superseded by ATF Proc. 73-1 -- authorized
the manometric and volumetric methods. ATF Procedure
73- 1, 1973 ATF C.B. 108, added the enzymatic method
of testing to those methods previously authorized
and described all three procedures in detail. Except
for minor editorial changes, the procedures are the
same as those appearing in the Twelfth Edition of
the Official Methods of Analysis of the Association
of Official Analytical Chemists, Washington, DC.
The
Director is now authorizing the use of an infrared
spectrophotometer for determining the C02
content in wines as follows:
SEC.
3.DETERMINATION OF C02 IN WINE BY INFRARED
SPECTROPHOTOMETRY.
.01
Infrared Method
1.
Apparatus
(a)
A nondispersive infrared specrtophotometer
(b)
An electronic intergrator --To be attached to the
output of the infrared analyzer through a variable-voltage
divider to permit readings to be made directly in
desired units of C02 concentration.
.02
Procedure
The
wine sample is brought to a pH 11 or greater with
NaOH. A 15-microliter sample is injected into a reaction
chamber partially filled with diluted sulfuric acid.
Nitrogen is bubbled through the sulfuric acid solution
to carry the evolved carbon dioxide into the nondispersive
infrared analyzer.
.03
Results
Standard
deviation, 4mg C02/100ml, comparable to
results obtained by manometric, volumetric and enzymatic
methods. Analysis time, 60 seconds. (For detailed
description of the infrared method see, American Journal
of Enology and Viticulture, Vol. 24, No. 3, pp 116-119,
1973.)
SEC.
4. EFFECT ON OTHER DOCUMENTS.
ATF
Procedure 73-1, 1973 ATF C.B. 108, is hereby amplified.
SEC.
5. INQUIRIES.
Inquiries
regarding this ATF Procedure should refer to its number
and be addressed to the Assistant Director (Regulatory
Enforcement), Bureau of Alcohol, Tobacco and Firearms,
1200 Pennsylvania Avenue, NW., Washington, DC 20226
27
CFR 240.534[recodified as 24.245]: TEST OF CARBON
DIOXIDE IN STILL WINE
ATF
Proc. 73-1 amplified. [see also ATF Proc. 83-2]
Return to Top
ATF
Proc. 80-5
Section
1. Purpose.
This
ATF Procedure establishes guidelines which tobacco
export warehouse proprietors may follow in recording
sales of tobacco products to persons crossing the
United States border into Canada or Mexico when individual
sales to such persons do not exceed 1000 cigarettes
or 1000 cigars. These guidelines become effective
February 16, 1981.
SEC.
2. BACKGROUND.
Section
5704, Title 26 of the United States Code, provides
that an export warehouse proprietor may remove tobacco
articles, without payment of tax, for consumption
beyond the jurisdiction of the internal revenue laws
of the United States. Regulations in 27 CFR 290.198
require that the export warehouse proprietor prepare
Form 2150, Notice of Removal of Cigars, Cigarettes,
Cigarette Papers, or Cigarette Tubes, for each shipment
removed from his warehouse.
Revenue
Procedure 72-27 provided an alternative to this requirement
by authorizing the removals to be documented on sales
slips with the daily summarization of the individual
sales slips on a Form 2150, when the quantities purchased
by an individual for his personal use did not exceed
400 cigarettes or 100 cigars in any calendar week,
or when purchases did not exceed the quantity the
purchaser was legally entitled to take into the country
being entered without payment of duty or tax, whichever
quantity was greater. All other transactions were
considered to be commercial exportations and were
subject to the provisions of 27 CFR 290.198, 290.199
and 290.205.
ATF
Procedure 76-1 extended the authority to use sales
slips as the basic documentation for smaller commercial
transactions, by providing for documentation of the
individual transactions on sales slips, and the consolidation
of these transactions on a Form 2150, when individual
sales did not exceed 4500 cigarettes or 1000 cigars.
This extension of the authorized use of sales slips
to document small commercial transactions was made
at the request of several export warehouse operators,
who said it would greatly reduce their paperwork,
and at the same time facilitate Customs' certification
of the transactions.
However,
since ATF Procedure 76-1 was issued, the Bureau has
revised the regulations in 27 CFR Part 290 to authorize
Customs to require landing certificates for exportations
to contiguous countries. (T.D. ATF-52, 43 F.R. 59286,
December 19, 1978). This change was made because it
was found that cigarettes which were ostensibly being
entered into Mexico were in fact being retained in
or returned to the United States. The United States
Customs Service simultaneously changed its policy
to require landing certificates for commercial exportations.
In
order to combat abuses of the personal-use exportation
privilege, Customs published Treasury Decision 79-1
(43 F.R. 59288, December 19, 1978), setting forth
this change in policy regarding those exportations.
Customs determined that 5 cartons of cigarettes (1000
cigarettes) are a quantity of cigarettes appropriate
for normal personal use. Accordingly, proprietors
of export warehouses along the United States-Mexican
border were required to present landing certificates
to confirm that purchases of more than 5 cartons of
cigarettes (1000 cigarettes) are presented or declared
through Mexican customs.
SEC.
3. CHANGES IN PROCEDURE.
In
recognition of these changes and clarifications, ATF
has concluded that it is no longer appropriate for
official documentation of commercial exportations
(more than 1000 cigarettes and 1000 cigars) to be
made on sales slips. Such documentation of commercial
transactions causes administrative difficulties for
both ATF and Customs.
Accordingly,
this procedure supersedes ATF Procedure 76-1 and discontinues
the authority of export warehouse proprietors to officially
document commercial exportations of tobacco products
(more than 1000 cigarettes and 1000 cigars) on sales
slips. Effective February 16, 1981, all of these commercial
exportations must be properly documented on ATF Form
2150 as required by the regulations in 27 CFR 290.198,
290.199, and 290.205.
Within
the newly prescribed limits for small exportations
of tobacco products, this new ATF Procedure continues
in effect essentially the same procedural requirements
for documentation of individual small transactions
by sales slips consolidated onto a single Form 2150.
However, this new ATF Procedure provides alternative
points for obtaining the purchaser's signature and
recording license plate information on a sales slip.
All
previous authorizations to operate under the procedures
set out in Revenue Procedure 72-27 or Procedure 76-1
are herby cancelled effective February 16, 1981. Any
previously approved alternate procedures other than
those specifically based on either Revenue Procedure
72-27 or ATF Procedure 76-1 will continue in effect
to the extent they apply to non-commercial type transactions
(i.e., the sale of not more that 1000 cigarettes or
1000 cigars) and have not otherwise been terminated.
Export warehouse proprietors are authorized to use
the sales slip form of documentation for personal-use
quantities (not more than 1000 cigarettes and 1000
cigars) as set forth in this procedure. No specific
approval from ATF is required as long as these procedures
are followed exactly.
SEC.
4. ACCEPTABLE PROCEDURES.
.01
Limitation of Procedures. A daily summarized Form
2150 may be prepared for reporting removals of cigars
or cigarettes for exportation by individuals entering
Canada or Mexico with not more than 1000 cigarettes
or not more than 1000 cigars in any calendar day.
The procedures for exportation in 27 CFR 290.198,
290.199 and 290.205 shall be followed, with a separate
Form 2150 for each exportation, when the quantities
exported are more than 1000 cigarettes or more than
1000 cigars in a calendar day. Any sale to an individual
involving more than 1000 cigarettes or 1000 cigars
per day must be documented on an individual Form 2150.
If more than one sale is made to an individual during
a day, the total of the sales that day are considered
to be a single transaction.
An
export warehouse proprietor may use multiple sales
slips or invoices for recording components of a total
sale involving 1000 or more cigarettes or cigars.
However, the records and Customs certification for
ATF purposes must be documented on an individual Form
2150 showing the total number of cigarettes and cigars
involved in the transaction.
For
example, if an individual on a given day makes three
separate purchases of 1000 cigarettes (5 cartons)
each from an export warehouse, the export warehouse
proprietor may record the first sale of 1000 cigarettes
on a sales slip, and that sale may be reported on
the daily summarized Form 2150. The second and third
sales must be recorded (A) on two separate Forms 2150
showing removal of 1000 cigarettes each, or, alternatively,
(B) the second and third sales may be reported on
a single Form 2150 showing the removal of 2000 cigarettes.
The U.S. Customs Service will require the export warehouse
proprietor to present a landing certificate with any
Form 2150 submitted under (A) or (B).
.02
Preparation of Sales Slips. The export warehouse proprietor
shall prepare a separate sales slip (original and
3 copies) for each daily sale of tobacco products
totaling not more than 1000 cigarettes or 1000 cigars.
The minimum information that must be included on the
sales slip is (1) a pre-printed serial number, (2)
the name and address of the purchaser, (3) the date
of purchase, (4) a list of the products sold, (5)
license plate identification of the vehicle in which
the cigarettes and cigars are to be transported to
Canada and Mexico, (6) signature of receipt by purchaser,
(7) a space for certification of export by Customs,
and (8) a conspicuous statement that the products
are sold exempt from U.S. Federal tax for consumption
outside the United States and that if such products
are returned to the United States they must be declared
to Customs and are then subject to duty or tax.
Item
5, the license plate identification, must be completed
in all instances except those where the purchaser
will carry the tobacco products over the border by
foot. Item 5 is to be completed by the proprietor
at the time of delivery of the articles to the purchaser.
Alternatively, the license plate of the vehicle in
Item 5 may be recorded on the sales slip at the point
where the order is given. When license plate identification
is recorded on sales slips at the point where the
order is taken, the proprietor is responsible for
verifying, and if necessary, correcting the license
plate information at the point where the tobacco products
are delivered to the purchaser. The proprietor is
also responsible for assuring with reasonable certainty
(by examining passports, drivers licenses, border
crossing cards, etc.) that the purchaser's name and
address, and all other information on the sales slip,
are correct and complete.
.03
Distribution and Certification of Sales Slip. At the
time of sale, the export warehouse proprietor shall
furnish the purchaser with two copies of the sales
slip. In addition, he shall attach one copy of the
sales slip to the shipment of the tobacco products.
The remaining copy will be retained by the proprietor
at the export warehouse until the signed copy is returned
to him after delivery of the tobacco products. When
the shipment is delivered to the purchaser at the
border, the purchaser will sign both the copy he surrenders
to obtain delivery of the articles and the copy that
will be furnished to the Customs officer who supervises
the exportation. Alternatively, the purchaser may
at the point where the order is given, sign an original
and one copy of the sales slip, but no other copies;
take the signed original and signed copy to the border
crossing point; give them both to an employee of the
export warehouse at the time the products and a copy
of the sales slip are delivered to the purchaser.
The
export warehouse employee making delivery of the tobacco
products will visually determine the transporting
vehicle's license number and the State, Province or
country issuing such license and will record (or verify
if recorded at the point of sale) the information
on the two signed copies of the sales slip. The customs
officer will receive one of the signed copies, as
noted above, and the proprietor will retain the other
as part of his records.
.04
Preparation and Disposition of Daily Summarized Form
2150. At the close of each business day a consolidated
Form 2150 will be prepared, in triplicate. The form
shall be marked to show that it is a consolidated
form, and it shall include all the information called
for by the form except items 6, 7, 8, 9, and columns
(b) and (e) or item 12. At item 11 there shall be
entered the words "as shown on individual sales slips,"
and the serial numbers of such individual sales slips
shall be entered in column (a) of item 12. All copies
will be submitted to the Customs officer at the border
for execution of the certificate of export. After
certification, the Customs officer will retain a copy
and return the original and remaining copy to the
warehouse proprietor. The proprietor will retain as
part of his records the copy of the consolidated Form
2150 and the receipted copies of the related sales
slips. He will transmit the original of the consolidated
Form 2150 to the Regional Regulatory Administrator,
Bureau of Alcohol, Tobacco and Firearms, no later
than the close of the business day following the day
the removals were made.
SEC.
5. ALTERNATE PROCEDURES.
The
export warehouse proprietor may not use procedures
other than those in 27 CFR Part 290 or as set forth
in this ATF procedure unless they are approved by
the Director, Bureau of Alcohol, Tobacco and Firearms,
as provided in 27 CFR 290.72 relating to the authorizations
for alternate methods or procedures. All previous
authorizations for alternate methods or procedures
under Revenue Procedure 72-27 and ATF Procedure 76-1
are terminated effective February 16, 1981.
SEC.
6. EFFECTS ON OTHER DOCUMENTS.
ATF
Proc. 76-1, ATF C.B. 1976, 121, is hereby superseded
effective February 16, 1981
SEC.
7. INQUIRIES.
Inquiries
concerning this ATF Procedure should refer to its
number and be addressed to the office of the appropriate
Regional Regulatory Administrator, Bureau of Alcohol,
Tobacco and Firearms.
Return to Top
ATF
Proc. 81-1
Section
1. Purpose.
The
purpose of this procedure is to inform proprietors
of distilled spirits plants, brewers, and winemakers
of the types of adjustments which may be made on their
respective excise tax returns to increase or decrease
the amount of tax due. General information is also
provided on the method to be used in making such adjustments.
SEC.
2. BACKGROUND.
The
Bureau of Alcohol, Tobacco and Firearms recognizes
the need to furnish some guidelines with respect to
the types of adjustments which may be made on excise
tax returns to increase or decrease the amount of
tax due. That information is furnished in this procedure,
as well as information on the methods which should
be used to make such adjustments.
The
information in this procedure applies to prepayment
and deferred payment excise tax returns filed by proprietors
of breweries, wineries and distilled spirits plants.
Adjustments
to distilled spirits excise tax returns (both to increase
and to decrease the tax) were previously addressed
in Revenue Procedure 68-6, C.B. 1968-1, 748 (Internal
Revenue), which is superseded by this new procedure.
A large part of Revenue Procedure 68-6 pertains to
distilled spirits tax return forms which are no longer
in use. Some pertinent parts of Revenue Procedure
68-6 are now explained in regulations or in the instructions
on forms, and it is therefore deemed unnecessary to
restate those parts in this new procedure. Some pertinent
parts of Revenue Procedure 68-6 do not appear elsewhere.
These parts are retained or restated below.
SEC.
3. ADJUSTMENTS DECREASING THE AMOUNT OF TAX DUE.
(a)
Claims. Where a claim for credit has been filed, no
credit may be applied to the amount of tax due on
a return until advice is received from the regional
regulatory administrator that the claim has been allowed.
If the credit on an approved claim is larger than
the amount of taxes due on a single tax return, any
remaining credit should be carried over to the next
tax return. Claims for credit of tax need be filed
only for reasons specified in regulations.
(b)
Official Notice. A proprietor may make an adjustment
to decrease the amount of tax due when so notified
by ATF. Such notification is sent when an error is
discovered by ATF upon examination of a tax return.
(c)
Errors Discovered by Proprietors. A proprietor may
make adjustments on a current tax return to decrease
the amount of tax due when he discovers past clerical
or mathematical errors which resulted in higher taxpayment
than was required. Examples of such errors are using
the wrong conversion factor for metric conversion
and simple arithmetical errors.
A
proprietor may also make an adjustment decreasing
the tax due on a current tax return when he finds
that taxes have been overpaid on a prior tax return
due to overstated removals. A notation should be made
on the current tax return in sufficient detail to
enable ATF personnel to make a judgment as to the
validity of the purpose for which the adjustment is
being made.
A
brewer, winemaker or distilled spirits plant proprietor
need not file a claim in order to make an adjustment
on a current tax return to correct a previous overpayment
based on overstated removals. This is so even if the
overstatement of removals is due to so-called "short
shipments." However, the fact that such claims are
not necessary does not lessen the need for industry
to satisfy ATF that removals were, in fact, overstated.
(d)
Interest. Interest on any of the above items, as permitted
by statute, constitutes an authorized deduction from
taxes. Interest, when permitted, should be computed
from the date of the overpayment to the due date of
the return on which the credit is taken.
Tax
returns are carefully examined by ATF inspectors,
auditors, and/or technical services specialists. If
deductions from tax returns cannot be substantiated,
these ATF personnel are instructed to recommend that
the deduction from tax be disallowed. If the disallowance
is upheld, after review of all pertinent facts, industry
members will be required to reenter the amount as
an increase in taxes on a subsequent tax return, including
interest thereon.
With
respect to inventory overages, the fact that a partial
or complete physical inventory exceeds book inventory
does to, in itself, constitute an authorized adjustment
decreasing tax. The physical inventory overage does
indicate that an error or inappropriately documented
transaction has occurred - whether it be in overstated
removals, understated packaged goods production, or
some other reason. Of course, once the reason for
the inventory overage is discovered, that reason might
very well serve as the basis for an authorized deduction
from taxes, as set out above.
SEC.
4. ADJUSTMENTS INCREASING THE AMOUNT OF TAX DUE.
A
proprietor may correct errors which resulted in underpayment
of tax for a previous tax return period on a subsequent
tax return. Such errors may be discovered by the proprietor,
or the regional regulatory administrator may notify
the proprietor to correct for errors which were discovered
by ATF upon examination of the proprietor's tax return.
If the errors result in a substantial underpayment
of tax, the regional regulatory administrator may
require the taxpayer to file an amended return. See
Section 5 of this procedure for information pertaining
to amended returns.
Interest
is due on underpayments. Interest on underpayments
should be computed from the due date of the return
in error to the date of filing the return (and remittance)
on which the adjustment of the error is made.
The
proprietor may also make an adjustment to increase
the tax when he or she exports alcoholic beverages
under bond and is unable to furnish documentation
to satisfy the regional regulatory administrator of
the quantity of products allegedly exported. In this
case, the proprietor may voluntarily make an adjustment
on a tax return for the amount of the tax, plus interest,
on the products for which proof of exportation is
not furnished.
SEC.
5. AMENDED RETURNS.
Where
an underpayment of tax on a previously filed excise
tax return is discovered by the proprietor, or when
the proprietor receives a notice from the regional
regulatory administrator of such an underpayment,
the proprietor may make an adjustment therefor on
a subsequent return or he may file an amended return.
As pointed out above, where the amount of the underpayment
is substantial, the regional regulatory administrator
may require the proprietor to file an amended return.
Where
an amended return is to be filed, it need show only
such entries as are necessary to correct and appropriately
identify the error on the original return for the
period (or day, in the case of a prepayment return)
in question. Such returns should be clearly marked
"Amended Return," should identify the period covered
by the original return, and should bear the same serial
number as the original return. An amended tax return
filed to correct an underpayment should reflect as
a separate item any interest, at the prevailing rate
per annum, due the Government.
SEC.
6. GENERAL.
An
underpayment or overpayment on a prepayment return
may be adjusted on a semimonthly return or an underpayment
or overpayment on a semimonthly return may be adjusted
on a prepayment return.
SEC.
7. EFFECT ON OTHER DOCUMENTS.
Revenue
Procedure 68-6, C.B. 1968-1, 748 (Internal Revenue)
is hereby superseded.
SEC.
8. INQUIRIES.
Inquiries
concerning this ATF procedure should refer to its
number and be addressed to the appropriate regional
regulatory administrator.
Return to Top
ATF
Proc. 83-1
Section
1. Purpose.
This
ATF Procedure establishes an optional alternate procedure
which tobacco products manufacturers may use to file
claims after January 1, 1983, under 26 U.S.C. 5705
for credit or refund of tax on cigarettes withdrawn
from the market.
SEC.
2. BACKGROUND.
Small
cigarettes comprise the vast majority of cigarettes
on which claims are filed under Section 5705. Therefore,
this procedure is written in terms of the current
and new tax rates specific to small cigarettes. However,
the procedure, in conjunction with the current and
new tax rates specific to large cigarettes, may be
used for claims under Section 5705 relating to large
cigarettes.
ATF
Ruling 82-11 holds that manufacturers of tobacco products
are entitled only to refund or credit of taxes actually
paid by them on cigarettes withdrawn from the market
under the provisions of Section 5705, and that cigarette
floor stocks taxes paid by others, i.e. distributors
and wholesalers, are not refundable or creditable
to manufacturers under such circumstances.
Cigarettes
removed by manufacturers before January 1, 1983, and
still in commercial channels on that date will have
been originally taxpaid by the manufacturer at the
rate of $4 a thousand. Section 283 of the Tax Equity
and Fiscal Responsibility Act imposes a floor stocks
tax of $4 a thousand on cigarettes held for sale by
certain persons on January 1, 1983. A manufacturer
is required to pay an additional $4 a thousand floor
stocks tax on those cigarettes removed from bond prior
to January 1, 1983, which are held for sale by the
manufacturer on that date. Distributors and wholesalers
are required to pay $4 a thousand floor stocks tax
on cigarettes which they hold for sale on January
1, 1983. Retailers are exempt from the floor stocks
tax to the extent that they hold cigarettes for sale
on January 1, 1983, at the place where they are intended
to be sold at retail. Cigarettes removed from factories
on or after January 1, 1983, are required to be taxpaid
by the manufacturer at the rate of $8 a thousand.
The
nature of the cigarette distribution system and the
manner in which damaged and stale cigarettes are returned
to the manufacturer make the status of particular
returned cigarettes extremely difficult if not impossible
to determine. Only a comprehensive change in the manner
of collecting and returning these damaged and stale
products, and the institution of a complex records
system, would enable a manufacturer to reasonably
make this determination for even part of the returns
from the market. The status of some returns could
not even be known after instituting these costly changes.
Consequently, under the usual procedures for proof
manufacturers could obtain refund or credit of only
part of the taxes they paid even after instituting
such an extensive new system of returns and recordkeeping.
Given
these circumstances, the Bureau has determined that
a reasonable alternative exists to the usual proof
of the amount of tax refundable or creditable, which
can be used for the transition period following the
cigarettes tax increase and floor stocks tax imposition
effective January 1, 1983. Manufacturers may, at their
option, after January 1, 1983, submit claims under
Section 5705 under the procedure described below.
The
procedure is based on past statistical data. ATF estimates
of cigarette inventories which will be at different
levels of distribution on January 1, 1983, and the
normal cigarette "shelf-life." The Bureau believes
that the procedure conforms with the intent and requirements
of Section 5705.
SEC.
3. ACCEPTABLE ALTERNATE PROCEDURE.
In
the case of each manufacturer a base quantity of cigarettes,
calculated using Federal fiscal year data as explained
below, must be amortized i.e., depleted, by the cigarettes
on which claims filed by the manufacturer under this
procedure are approved before credit or refund of
tax at the $8 a thousand rate will be allowed on all
cigarettes withdrawn from the market by the manufacturer.
A
manufacturer who wishes to file a claim under Section
5705 on and after January 1, 1983, under this procedure
must first calculate the base quantity of cigarettes
to which the ratios set forth herein will be applied.
This is done by (a) establishing the total number
of cigarettes removed subject to tax from all factories
operated by the manufacturer for the period October
1, 1981, through September 30, 1982, inclusive, and
(b) multiplying this number by the semi-annual factor
for his average rate of withdrawals from the market
with refund/credit allowed. In narrative form the
equations for determining this factor are:
(FY80
&FY81) Withdrawals
(FY80 & FY81)
Refund/Credit
divided by Taxable
Removals =
Annual Factor
Allowed
2
2
Annual
Factor = Semi-Annual Factor
2
On
each claim involving cigarettes withdrawn from the
market on or after January 1, 1983, up to the base
quantity, it will be presumed that the manufacturer
taxpaid 11 percent of the cigarettes involved at the
$4 a thousand rate and 89 percent at the $8 a thousand
rate.
These
percentages will be applied to each claim filed by
the manufacturer relating to withdrawals from the
market which occur on or after January 1, 1983, regardless
of the factories involved, until the total quantity
of cigarettes in allowed claims reaches the manufacturer's
base quantity. Thereafter cigarettes withdrawn from
the market will be presumed to have been taxpaid at
the $8 a thousand rate.
Each
claim filed by the manufacturer under this procedure
must include (a) the company's base quantity as determined
above, (b) the total quantity of cigarettes on which
refund or credit has been claimed company-wide under
the procedure up to an including the current claim,
and (c) the quantity of cigarettes, if any, on which
those claims were disallowed.
SEC.
4. LIMITATION OF PROCEDURE.
Unless
the Regional Regulatory Administrator authorizes otherwise,
this procedure must be used for all withdrawals from
the market on which the manufacturer intends to claim
refund or credit of the excise tax.
Cigarettes
in the ownership or possession of a manufacturer on
January 1, 1983, which are in the process of withdrawal
at that time may not be included in claims filed under
this procedure. Any claim for such cigarettes is to
be filed under customary procedures.
Manufacturers
who do not follow this alternate procedure exclusively
will be authorized refund or credit of tax on cigarettes
withdrawn from the market after January 1, 1983, based
on the procedures for proof customarily applied by
ATF.
SEC.
5. INQUIRIES.
Inquiries
concerning this ATF Procedure should refer to its
number and be addressed the office of the appropriate
Regional Regulatory Administrator, Bureau of Alcohol,
Tobacco and Firearms.
Return to Top
ATF
Proc. 83-2
Section
1. Purpose.
The
purpose of this ATF Procedure is to authorize a test
procedure using an automated thermal conductivity
analyzer to determine the carbon dioxide content of
still wines under the provisions of 27 CFR 240.531
and 240.534.
SEC.
2. BACKGROUND.
Regulations
in 27 CFR 240.534 require that the carbon dioxide
contained in wine be determined in accordance with
authorized test procedures announced by the Director.
Revenue
Procedure 59-33, 1959-2 C.B. 953 (Internal Revenue),
authorized the manometric and volumetric methods.
ATF Procedure 73-1, 1973 ATF C.B. 108, superseded
the earlier procedure and added the enzymatic method
of testing to those methods previously authorized.
This procedure was amplified by ATF Procedure 77-2,
1977 ATF C.B. 197, which authorized the use of an
infrared spectrophotometric method to the previously
authorized methods. The Director is now authorizing
the use of an automated thermal conductivity analyzer
for determining the carbon dioxide content in still
wines as described on the Journal of the Association
of Official Analytical Chemists. See: Mitchell &
Benjamin, Automated Thermal Conductivity Determination
of Carbon Dioxide in Wine. J. ASSOC. OFF. ANAL. CHEM.
(Vol. 64, No. 3 at 547-549, 1981).
SEC.
3. EFFECT ON OTHER DOCUMENTS.
ATF
Procedure 71-1, 1973 ATF C.B. 108, and ATF Procedure
77-2, 1977 ATF C.B. 197, are hereby amplified.
SEC.
4. INQUIRIES.
Inquiries
regarding this ATF Procedure should refer to its number
and be addressed to the Assistant Director (Regulatory
Enforcement), Bureau of Alcohol, Tobacco and Firearms,
1200 Pennsylvania Avenue, NW., Washington, DC 20226.
Return to Top
ATF
Proc. 83-3
Section
1. Purpose.
This
ATF Procedure informs proprietors of distilled spirits
plants, bonded wine cellars, importers and exporters
who transfer distilled spirits and wine, between their
premises and Customs Bonded Warehouses and Customs
Manufacturing Bonded Warehouses of the requirements
for completing certain transfer documents.
SEC.
2. BACKGROUND.
Effective
December 1, 1982, the United States Customs Service
removed Customs Officers from Customs Bonded Warehouses
and Customs Manufacturing Bonded Warehouses in accordance
with Treasury Decision 82-204. ATF operations concerned
with the exportation and importation of distilled
spirits and wine involving Customs Bonded Warehouses
have been affected by the removal of the Customs Officers.
This procedure specifies the procedures to be followed
when completing forms previously completed by Customs
Officers.
SEC.
3. FORM PROCEDURES.
a.
Transfer of taxpaid spirits to a Customs Bonded Warehouse.
Distilled Spirits can be entered into a Customs Bonded
Warehouse under the provisions of 27 CFR 252.26(b)
with drawback privileges. The exporter depositing
such bottled spirits will prepare ATF Form 5110.30,
Drawback on Distilled Spirits Exported, in quadruplicate,
as required by 27 CFR 252.190. The exporter will modify
Item 6 of Form 5110.30 by lining out the words "Customs
Officer in Charge" and entering the word "Proprietor".
The exporter will give the original and one copy of
the form to the proprietor of the Customs Bonded Warehouse.
When the distilled spirits are received by the proprietor
of the Customs Bonded Warehouse, he will complete
Part IV of Form 5110.30. He will modify Item 21 by
lining out the words "Customs Officer" and entering
the word "Proprietor". The proprietor of the Customs
Bonded Warehouse will then forward the original of
the Form 5110.30 to the Regional Regulatory Administrator
and file one copy in a Customs file at the Customs
Bonded Warehouse.
b.
Transfer of untaxpaid distilled spirits or wine from
an exporter to a Customs Bonded Warehouse or a Manufacturing
Bonded Warehouse. Distilled spirits and wine may be
withdrawn, without payment of tax, from a distilled
spirits plant or bonded wine cellar for transfer to
a Customs Bonded Warehouse or a Manufacturing Bonded
Warehouse (27 CFR 252.25, and 252.26(a)). Form 5100.11,
Withdrawal of Spirits, Denatured Spirits, or Wines
for Exportation, will be prepared, in quadruplicate
as required by the instructions on the form, by the
exporter or the Manufacturing Bonded Warehouse proprietor
as appropriate under the provisions of 27 CFR 252.28,
252.92 or 252.122. The proprietor will modify Item
7 of the form by lining out the words "Customs Officer
in Charge" and entering the word "Proprietor".
When
the goods are received at the Customs Bonded Warehouse
or Manufacturing Bonded Warehouse, the proprietor
will complete Part V of the form. The proprietor shall
modify the heading of Part V and Item 34 by lining
out "Customs Officer's" and "Customs Officer" respectively
and substituting the words "Proprietor's" and "Proprietor"
respectively. The proprietor shall then sign in Item
34. In addition, the proprietor of a Manufacturing
Bonded Warehouse may be required to complete a Form
5180.1, Customs Gauge Report, under the provisions
of 27 CFR 252.285. The proprietor will modify Item
7 of the form by lining out the word "Proprietor".
c.
Transfer of distilled spirits from Customs custody
to the bonded premises of a distilled spirits plant.
Imported distilled spirits can be withdrawn, in bulk,
from Customs custody without payment of tax under
the provisions of 27 CFR 251.171. Form 5100.16, Application
for Transfer of Spirits and/or Denatured Spirits in
Bond, will be completed by the distilled spirits plant
proprietor. One copy of the Form 5100.16 will be forwarded
to the Customs Bonded Warehouse proprietor for his
records. The proprietor of the Customs Bonded Warehouse
will prepare Form 5110.27, Transfer of Spirits. Denatured
Spirits or Wines in Bond, and, as necessary, ATF Form
5110.45, Package Gauge Report. Both forms will be
completed using the instructions on the forms. Serial
numbers in Item 1 of Form 5110.27 may be required
by Customs. Item 12A, Form 5110.27, and Item 7, Form
5110.45, will be completed by the proprietor of the
Customs Bonded Warehouse. Item 3, Form 5110.27, will
be completed by the proprietor of the Customs Bonded
Warehouse using information from his file copies of
ATF Form 5100.16.
SEC.
4. DISTRIBUTION OF NEW EDITIONS OF FORMS 5100.11,
5110.30 AND 5180.1.
Each
distilled spirits plant and bonded wine cellar will
receive an initial distribution of the new editions
of each form from the ATF Distribution Center when
they are published. Additional forms should be ordered
from the ATF Distribution Center, 3800 S. Four Mile
Run Drive, Arlington, Virginia 22206.
SEC.
5. INQUIRIES.
Inquiries
concerning this procedure should refer to its number
and be addressed to the Assistant Director, (Regulatory
Enforcement) Bureau of Alcohol, Tobacco and Firearms,
1200 Pennsylvania Avenue, N.W., Washington, DC 20226.
Return to Top
ATF
Proc. 84-1
Section
1. Purpose.
This
ATF Procedure establishes procedures to be followed
by the manufacturers of tobacco products when completing
ATF Form 2145 (5200.11), Notice of Release of Cigars,
Cigarettes, Cigarette Papers or Cigarette Tubes.
SEC.
2. BACKGROUND.
Effective
December 1, 1982, the United States Customs Service
removed Customs officers from Customs Bonded Warehouses
and Customs Bonded Manufacturing Warehouses in accordance
with Treasury Decision 82-204. ATF operations concerned
with the importation of tobacco products involving
Customs Bonded Warehouses were affected by the removal
of the Customs Officers. This procedure specifies
the procedures to be followed when completing the
portions of Form 2145 previously completed by Customs
Officers.
SEC.
3. FORMS PROCEDURES.
Release
of Cigars, Cigarettes and Cigarette Papers and Tubes
from Customs Custody without Payment of Tax. (27 CFR
275.86).
Manufacturers
of tobacco products may obtain release of cigars,
cigarettes and cigarette papers and tubes from a Customs
Bonded Warehouse, in bond, without payment of tax.
Part III of Form 2145 (5200.11), Notice of Release
of Cigars, Cigarettes, Cigarette Papers, or Cigarette
Tubes, will be prepared by the proprietor of the Customs
Bonded Warehouse. He will modify Item 9 by deleting
the words "Customs Officer" and entering the word
"Proprietor" and sign the form, entering his title
and the date. The CBW proprietor will provide one
copy of the form to the manufacturer, maintain one
copy in the Customs file and send the original to
the certifying Regional Director (Compliance).
SEC.
4. DISTRIBUTION OF NEW EDITIONS OF FORM 2145.
Each
manufacturer of tobacco products will receive an initial
distribution of the new form from the ATF Distribution
Center. Additional forms should be ordered from the
ATF Distribution Center, 3800 S. Four Mile Run Drive,
Arlington, Virginia 22206.
SEC.
5. INQUIRIES.
Inquiries
concerning this procedure should refer to it by number
and be addressed to the Associate Director, (Compliance
Operations) Bureau of Alcohol, Tobacco and Firearms,
1200 Pennsylvania Avenue, N.W., Washington, DC 20226.
Return to Top
ATF
Proc. 86-1
(Note:
EEC regulations provided as attachments to this Procedure
are not reproduced here. This Procedure modified by
ATF Procedure 88-2).
Section
1. Purpose.
1.01
The purpose of this procedure is to outline the new
requirements of the European Economic Community (hereinafter
referred to as the EEC or the Community) as they apply
to certification and analysis of commercial shipments
of U.S. grape table wine and U.S. sparkling grape
wine, only.
SEC.
2. DEFINITIONS.
2.01
U.S. Wine. For the purposes of this procedure, the
term, U.S. wine, refers only to U.S. grape table wine
and U.S. sparkling grape wine intended for export
to the Community for marketing for direct human consumption.
2.02
The Member States of the Community. The Member States
of the Community presently include: Belgium, Denmark,
Federal Republic of Germany, France, Greece, Ireland,
Italy, Luxembourg, the Netherlands, Portugal, Spain
and the United Kingdom.
2.03
Consignment. For the purposes of this procedure, a
consignment is the quantity of the same wine consigned
by one consignor to one consignee for the purpose
of marketing.
2.04
Actual Alcoholic Strength. For the purposes of this
procedure, actual alcoholic strength means percent
alcohol content by volume at 20 degrees C.
2.05
Potential Alcoholic Strength. For the purposes of
this procedure, potential alcoholic strength means
the percent alcohol content by volume at 20 degrees
C. which would result from complete fermentation of
all fermentable sugars.
2.06
Total Alcoholic Strength. For the purposes of this
procedure, total alcoholic strength means the sum
of the actual and potential alcoholic strength.
SEC.
3. BACKGROUND.
3.01
ATF Procedure 73-6 outlined the EEC certification
and analysis requirements which were applicable at
the time that procedure was issued in 1973.
3.02
Subsequent to the issuance of that procedure, the
EEC issued "Commission Regulation (EEC) No. 2115/76
of August 20, 1976, laying down general rules for
the import of wines, grape juice and grape must."
This regulation exempted U.S. wine in containers of
four liters or less from certification and analysis
requirements on the basis that annual U.S. exports
of such products to the Community totaled less than
1000 hectoliters. Thus, from the time of this exemption
to the present, U.S. wineries did not have to comply
with EEC certification and analysis requirements for
such products.
3.03
On December 20, 1985, the Community published "Commission
Regulation (EEC) No. 3590/85 of December 18, 1985
on the certificate and analysis report required for
the importation of wine, grape juice and grape must".
This regulation makes three fundamental changes to
the present EEC certification and analysis requirements,
i.e.,"
(a)
except as provided in Section 5.02, effective April
2, 1986, it no longer exempts the United States from
certification and analysis for shipments of wine in
containers of four liters or less;
(b)
except as specified in Section 5.01, it requires that
U.S. wine exported from the U.S. on or after April
2, 1986, be accompanied by Forms V.I.1 (see Section
5.06). (The procedures outlined herein relate only
to this new model of Form V.I.1.); and, (c) it makes
provision for use of new, simplified procedures for
completing the new Forms V.I.1 for shipments of wine
meeting the conditions referenced in Section 7.01.
3.04
The EEC established April 2, 1986, as the effective
date of Commission Regulation No. 3590/85 (Attachment
I) to allow those wishing to export to the Community
sufficient time to adjust to the new procedures and
to print the new forms.
3.05
The simplified procedures noted in Section 3.03(c)
considerably minimize administrative burdens by allowing
authorized U.S. Producers to self-certify the new
Forms V.I.1. They also minimize financial burdens
by reducing the number of analyses required from a
total of eight to a total of three, i.e., actual alcoholic
strength, total sulfur dioxide and total acidity.
SEC.
4. EEC REGULATIONS.
4.01
"Commission Regulation (EEC) No. 3590/85 of December
18, 1985, on the certificate and analysis report required
for the importation of wine, grape juice and grape
must" is included as Attachment I. This regulation
outlines the certification and analysis procedures
referenced in Sections 6 and 7.
4.02.
"Council Regulation (EEC) No. 1873/84 of June 28,
1984, authorizing the offer or disposal for direct
human consumption of certain imported wines which
may have undergone oenological processes not provided
for in Regulation (EEC) No. 337/79" is included as
Attachment II. This regulation specifies the wine
treating materials which the EEC accepts for use in
the production of U.S. wine.
4.03.
ATF will make every effort to alert the public to
any other information having a significant bearing
on certification, analysis and treatment of U.S. wine;
however, the ultimate responsibility to keep abreast
of EEC regulations lies with U.S. exporters. U.S.
exporters and other concerned should contact the European
Community Information Service at 2100 M Street, NW,
Washington, DC 20037 for additional copies of, or
further information concerning, Community regulations.
SECTION
5. GENERAL INSTRUCTIONS APPLICABLE TO FORMS V.I.1.
5.01.
Forms V.I.1 are not required for any wine originating
in or coming from non-EEC countries in containers
of two liters or less, where the total quantity transported,
even if it is composed of two or more individual consignments,
does not exceed 60 liters.
5.02.
Forms V.I.1 are not required for U.S. wine packaged
in containers of four liters or less which enters
the Community before September 30, 1986, provided
satisfactory proof is offered to Community customs
authorities that it left the U.S. before April 2,
1986.
5.03.
Except as indicated in Section 5.01, Forms V.I.1 shall,
as in the past, accompany each consignment of U.S.
wine which is not packaged in containers of four liters
or less. U.S. exporters may continue to use existing
supplies of the present model of Forms V.I.1 for shipments
of such wine which enter the Community before September
30, 1986, provided satisfactory proof is offered to
Community customs authorities that it left the U.S.
before April 2, 1986.
5.04.
Except as indicated in Section 5.01, the new model
of Forms V.I.1, as described in Section 5.06, shall
accompany each consignment of U.S. wine shipped on
or after April 2, 1986 (see Sections 6 and 7).
5.05.
An original Form V.I.1 and four carbon copies shall
be prepared, when required, for each consignment of
U.S. wine.
5.06.
Exporters are required to provide their own supply
of Forms V.I.1 following the model shown in Annex
II of Commission Regulation No. 3590/85 (Attachment
I). Forms V.I.1 shall:
(a)
be approximately 210 mm x 297 mm in size;
(b)
be printed on white paper weighing at least 40 grams
per square meter;
(c)
bear the name and address or the mark of the printer;
(d)
be printed in English.
5.07.
Forms V.I.1 shall be completed in the English language.
The information provided on the original shall be
clearly legible on all four copies and shall be either
typed or printed in ink using block letters. They
shall contain no erasures or alterations. Where necessary,
changes shall be made by striking out the wrong entry
and inserting the required details. Any change made
in this way shall be approved by its author and stamped,
as the case may be, by the official agency, the laboratory
or the customs authorities.
SECTION
6. PROCEDURES FOR PREPARING FORMS V.I.1 FOR THE EXPORT
OF U.S. WINE WHICH DOES NOT MEET THE REQUIREMENTS
OF SECTION 7.01.
6.01.
The exporter shall complete Forms V.I.1 as follow:
(a)
Exporter (Box 1). Identify the name and complete address
of the exporter. If the exporter is a wine producer,
the name and address shall be that as shown on the
"Wine Producer's and Blender's Basic Permit" (ATF
F 5120.18) issued to the producer. Otherwise, the
name and address shall be that as shown on the "Wholesaler's
Basic Permit" (ATF F 5170.03) issued to the exporter.
(b)
Third Country of Issue and Serial Number (upper right
hand corner). Identify the country of issue as either
"United States of America" or "U.S.A.". Assign a serial
number consisting of the last two digits of the calendar
year in which the Forms are prepared followed by a
dash and the number "1" for the first set of Forms
prepared, "2" for the second, etc. (e.g., 86-1, 86-2,
etc.)
(c)
Consignee (Box 2). Identify the name and address of
the consignee.
(d)
Marks and reference numbers-Number and nature of Packages-Description
of product (Box 6). Provide sufficient shipping information
to identify the consignment to the proper authorities
(e.g., bill of lading number, invoice number, etc).
Enter the number and nature of the packaging used
(e.g., 100 cases) and describe the wine giving at
least the following information:
-
for non-appellation U.S. grape table wine, indicate
"U.S. Wine";
-
for non-appellation U.S. sparkling wine, indicate
"U.S. Sparkling Wine";
-
for appellation U.S. wine, indicate the country of
origin, appellation, vintage date and, if applicable,
the varietal designation and whether it is sparkling
e.g., "U.S. 1983 Napa Valley Cabernet Sauvignon,"
"U.S. 1980 New York State Sparkling Wine."
(e)
Quantity (liters/hectoliters/kilograms) (Box 7). Select
the unit of volume preferred and delete the other
two. Identify the total quantity in the consignment
using the chosen unit of measure.
(f)
Number of Bottles (Box 8). If the consignment is a
bottled shipment, specify the number of bottles in
the consignment.
(g)
Colour of the product (Box 9). Describe the color
of the wine in the consignment as being either red,
white or rose.
(h)
CERTIFICATE (Box 10). Place an "X" in the appropriate
square. To determine if the consignment of wine covered
by the Forms V.I.1 "has not been subjected to oenological
practices which are not permitted under current Community
provisions relating to the import of the product in
question," refer to Section 4.02 and Attachment II.
6.02
After completing the Forms V.I.1 as specified in Section
6.01, the exporter shall attach to the set of Forms
V.I.1 a certification statement as referenced in Attachment
III. Attachment III or photocopies thereof may be
used for submission of the certification statement
if appropriately completed with original signature.
6.03
The exporter shall forward one 750 mL sample of the
wine referenced in the Forms V.I.1 to a chemist, enologist
or laboratory certified by ATF for the analysis of
wine for export in accordance with ATF Procedure 86-2.
The list of ATF-certified chemists, enologists and
laboratories are published in the "C" series of the
Official Journal of the European Communities and may
be obtained at the following address:
Certified
Laboratories - Wine
National Laboratory Center
Bureau of Alcohol, Tobacco and Firearms
1401 Research Boulevard
Rockville, Maryland 20850
6.04
The sample shall be accompanied by the original and
all four copies of the applicable Forms V.I.1 to which
shall be attached the certification statement referenced
in Section 6.02.
6.05
Upon receipt of the sample, set of Forms V.I.1 and
certification statement from the exporter, the certified
chemist, enologist or laboratory, using the techniques
described in ATF Procedure 86-2, shall perform the
chemical tests specified in Box 11 (with the exception
of the test for "density") and complete Box 11, in
full, insuring that the precise analytical units of
measurement are specified (e.g., total acidity: x
g/100 mL calculated as tartaric acid).
6.06
The certified chemist, enologist or laboratory shall
then retain one copy of Form V.I.1 and forward the
original, the remaining three copies and the certification
statement referenced in Section 6.02, to the Regional
Director (Compliance), Bureau of Alcohol, Tobacco
and Firearms, serving the region in which the exporter
is located, Attention: Chief, Technical Services.
6.07
Upon receipt of the duly completed Forms V.I.1, the
Regional Director (Compliance) shall complete Box
10 identifying the Bureau address as referenced in
Section 7.07. The Regional Director (Compliance) shall
then retain one copy of Form V.I.1 as well as the
certification statement referenced in Section 6.02
and return the original and two remaining copies of
Forms V.I.1 to the exporter.
6.08
The exporter shall retain one copy of Form V.I.1 and
forward the original and remaining copy with the consignment.
6.09
The documents to be retained shall be kept on file
for five years.
SEC.
7. SIMPLIFIED PROCEDURES FOR PREPARING FORMS V.I.1.
7.01
The procedures outlined in this section apply only
to U.S. wine produced by U.S. wineries authorized
in accordance with Section 8 and exported by these
wineries, on or after April 2, 1986, in labeled containers,
of 60 liters or less, fitted with non-reusable closing
devices.
7.02
The producer shall complete Forms V.I.1 as indicated
in Section 6.01.
7.03
The producer shall include in Box 1 the bonded winery
registry number as shown on the "Wine Producer's and
Blender's Basic Permit" (ATF F 5120.18) issued to
the producer.
7.04
The producer shall then follow the procedure outlined
in Section 6.03. The sample shall be accompanied by
the original and all four copies of Forms V.I.1.
7.05
Upon receipt of the sample and set of Forms V.I.1
from the producer, the certified chemist, enologist
or laboratory, using the techniques described in ATF
Procedure 86-2, shall determine only actual alcoholic
strength, total acidity and total sulfur dioxide and
complete Box 11 only with respect to these analyses,
insuring that the precise analytical units of measurement
are specified (e.g., total acidity: x g/100 mL calculated
as tartaric acid).
7.06
The certified chemist, enologist or laboratory shall
leave the other areas of Box 11 blank, retain one
copy of Form V.I.1 and forward the original and three
remaining copies to the producer.
7.07
With respect to Box 10, a person recognized by ATF
as having authority to sign on behalf of the winery
shall delete the words "name and title of official",
sign under the word "Signature" and insert the place
and date of signature in the appropriate areas. In
this case, a stamp is not required and the producer
shall insert the following in the area headed "Full
name and address of the official agency":
Bureau
of Alcohol, Tobacco and Firearms
1200 Pennsylvania Avenue, NW
Washington, DC 20226
U.S.A.
7.08
With respect to Box 11, a person recognized by ATF
as having authority to sign on behalf of the winery
shall delete the words "name and title of official,"
sign under the word "Signature" and insert the place
and date of signature in the appropriate areas. In
this case, neither a stamp nor the name and address
of the laboratory is required.
7.09
The producer shall forward one copy of Form V.I.1
to the Regional Director (Compliance), Bureau of Alcohol,
Tobacco and Firearms, serving the region in which
the producer is located, Attention: Chief, Technical
Services.
7.10
The producer shall retain one copy of Form V.I.1 and
forward the original and remaining copy with the consignment.
7.11
The documents to be retained shall be kept on file
for five years.
SEC.
8. PROCEDURES FOR THE AUTHORIZATION OF U.S. PRODUCERS
WISHING TO BE ELIGIBLE TO USE THE PROCEDURES REFERENCED
IN SECTION 7.
8.01
U.S. producers shall submit to ATF a certification
statement as referenced in Attachment IV. Attachment
IV may be used for this purpose provided it has been
appropriately completed with original signature. The
certification statement shall be mailed to the following
address:
Chief,
Alcohol Import-Export Branch
Bureau of Alcohol, Tobacco and Firearms
Attn: Certification Statement (EEC)
P.O. Box 385
Washington, DC 20226
8.02
ATF will submit, to the European Economic Community,
the names, addresses and bonded winery registry numbers
of the wineries which have submitted the certification
statement referenced in Section 8.01 and will identify
these wineries as being authorized, until such time
as this authorization is withdrawn, to draw up V.I.1
documents in accordance with "Commission Regulation
(EEC) No. 3590/85 of December 18, 1985, on the certificate
and analysis report required for the importation of
wine, grape juice and grape must."
8.03
The EEC will publish the list of authorized wineries
in the "C" series of the Official Journal of the European
Communities and will update the list as needed.
SEC.
9. EFFECT ON OTHER DOCUMENTS.
9.01
The provisions of ATF Procedure 73-6 which dealt with
the documentation requirements for U.S. wine exported
to the EEC are hereby superseded.
SEC.
10. INQUIRIES.
10.01
Inquiries concerning this procedure should refer to
its number and should be addressed to:
Chief,
Alcohol Import-Export Branch
Bureau of Alcohol, Tobacco and Firearms
Attn: Industry Circular 86-2
P.O. Box 385
Washington, DC 20226
Return to Top
ATF
PROC. 86-2
SECTION
1. PURPOSE.
1.01
This procedure establishes the guidelines to be followed
by chemists, enologists or laboratories desiring to
be certified by the Bureau of Alcohol, Tobacco and
Firearms (ATF) for the analysis of wine for export.
SEC.
2. BACKGROUND.
2.01
Many countries require the presentation of specific
chemical analyses as a condition of entry for imported
wine. Wish respect to U.S. wine, many of these countries
will accept analyses performed by persons or laboratories
certified by ATF.
2.02
The Member States of the European Economic Community
(hereinafter referred to as the EEC or the Community)
are among such countries, and ATF Procedure 73-6 which
dealt with EEC documentation requirements for wine,
established the procedures to be followed by chemists
and laboratories wishing to be certified to analyze
wine for export to the EEC.
2.03
The Japanese Ministry of Health and Welfare now also
accepts chemical analyses performed by ATF-certified
persons or laboratories, and the number of such foreign
governmental bodies may increase in the future.
2.04
This being the case, the provisions relative to certification
of chemists and laboratories previously included in
ATF Procedure 73-6 have been dissociated from EEC
documentation requirements and are reissued herewith
to make it clear that those certified for wine analysis
by ATF are authorized to analyze wine exported not
only to the European Economic Community but also to
Japan and any other countries which have agreed to
accept chemical analyses performed by ATF certified
persons or laboratories. In this connection, it should
be noted that, although ATF Procedure 73-6 identified
only graduate chemists and laboratories under the
direction of a graduate chemist as being eligible
for certification, the new procedure expands eligibility
to include graduate enologists and laboratories under
the direction of a graduate enologist. ATF has concluded
that the enologists warrants such recognition.
SEC.
3. APPLICATION FOR CERTIFICATION.
3.01
Application for certification that a chemist, enologist
or laboratory is qualified to analyze wine for export
may be filed by a graduate chemist, a graduate enologist,
a laboratory under the direction of a graduate chemist
or graduate enologist, or an exporter on behalf of
such a chemist, enologist or laboratory.
3.02
The application shall be submitted, in duplicate,
on the applicant's letterhead, to the Director, National
Laboratory Center, Bureau of Alcohol, Tobacco and
Firearms, at the address given in Section 7.01. It
shall be accompanied by the analysis reports referenced
in Section 4.01(b) and by documentation supporting
the educational qualifications and professional experience
of the chemist or enologist. This information is subject
to verification.
SEC.
4. QUALIFICATION FOR CERTIFICATION.
4.01
To qualify for certification by the Director, ATF
National Laboratory Center, the applicant shall:
(a)
have access to such laboratory equipment and facilities
as are necessary to perform the wine analyses described
in following subparagraph (b). The adequacy of such
equipment and facilities is subject to verification
or inspection:
(b)
submit to the Director, ATF National Laboratory Center,
a report of the analysis of any sample of white wine
and any sample of red wine together with one 750 mL
sample of each wine to be analyzed. These reports
shall include the following analytical data as determined
in accordance with the latest edition of the Methods
of Analysis, published by the Association of Official
Analytical Chemists:
(1)
Specific gravity;
(2)
Alcohol by volume;
(3)
Total extract;
(4)
Reducing sugar;
(5)
Sucrose;
(6)
Ash;
(7)
Alkalinity of ash;
(8)
Total acidity;
(9)
Volatile acidity;
(10)
Fixed acidity;
(11)
Tartaric acid;
(12)
Citric acid;
(13)
Sulfur dioxide;
(14)
pH
SEC.
5. CERTIFICATION OF APPLICANTS.
5.01
If U.S. Government chemists verify the reports of
analyses submitted by the applicant, and the other
requirements have been met, the Director, ATF National
Laboratory Center, will certify the chemist, enologist
or laboratory and so notify the applicant. If the
chemist, enologist or laboratory does not meet the
requirements for certification, the applicant will
be so notified.
SEC.
6. EFFECT ON OTHER DOCUMENTS.
6.01
The provisions of ATF Procedure 73-6 which set out
the requirements to be met by chemists or laboratories
wishing to be certified by the Bureau of Alcohol,
Tobacco and Firearms (ATF) for the analysis of wine
for export are hereby superseded.
SEC.
7. INQUIRIES.
7.01
Inquiries concerning this circular, including requests
for the listing of chemists, enologists and laboratories
certified by ATF for the analysis of wine for export,
should refer to its number and should be addressed
to:
National
Laboratory Center
Bureau of Alcohol, Tobacco and Firearms
Certified Laboratories - Wine
1401 Research Boulevard
Rockville, Maryland 20580
Return to Top
ATF
PROC. 86-3
Section
1. Purpose.
This
procedure provides guidelines for obtaining Federal
label approval for imported liqueurs, cordials, flavored
spirits and distilled gins.
SEC.
2. BACKGROUND.
Liqueurs,
Cordials and Flavored Spirits
The
Bureau has consistently held that importers of all
imported liqueurs, cordials and flavored spirits must
obtain a statement from the foreign producer listing
all ingredients and must submit a minimum 750 ml sample
for analysis prior to issuing certificates of label
approval.
Section
5.33(g) of Title 27, Code of Federal Regulations,
reads as follows:
(g)
Contents of Bottles. A complete and accurate statement
of the contents of the bottles to which labels are
to be or have been affixed shall be submitted, on
request, to the Director or the regional director
(compliance).
Distilled
Gins
Section
5.22(c), Class 3, defines "gin" as a product obtained
by original and continuous distillation from mash,
or by redistillation of distilled spirits, or by mixing
neutral spirits, with or over juniper berries and
other aromatics, or with or over extracts derived
from infusions, percolations, or maceration of such
materials, and includes mixtures of gin and neutral
spirits. It shall derive its main characteristic flavor
from juniper berries and be bottled at not less than
80 proof. Gin produced exclusively by the original
distillation or by redistillation may be further designated
as "distilled."
In
order to properly determine the class of an imported
gin, the Bureau has always required that a statement
of process be submitted prior to issuing label approvals
for gins designated as "distilled" in accordance with
26 CFR 5.51(d). Section 5.51(d) reads as follows:
(d)
Statements of Process. Forms 1649 covering labels
for gin bearing the word "distilled" as a part of
the designation shall be accompanied by a statement
prepared, by the manufacturer, setting forth a step-by-step
description of the manufacturing process.
The
Bureau has determined that several reasonable alternatives
exist as to obtaining certificates of label approval
for imported liqueurs, cordials and gins.
SEC.
3. ACCEPTABLE PROCEDURES
Prior
to issuing certificates of label approval, the Bureau
will require one of the following pieces of documentation:
Liqueurs,
Cordials and Flavored Spirits
1.
A statement of ingredients from the manufacturer and
a 750 ml sample; or
2.
A statement from the manufacturer that the product
to be imported is identically formulated for world-wide
distribution, provided ATF has a list of the ingredients
on record, and a 750 ml sample; or
3.
A 750 ml sample, and a statement from the importer
setting forth the specific contents of the product.
Such statement must be supported by a laboratory analysis
performed by a commercial laboratory as to the specific
ingredients contained in the product, and should differentiate
between natural and artificial ingredients, colors,
flavors, etc.
Distilled
Gins
1.
A statement of process from the manufacturer specifying
the step-by-step process by which the "Distilled Gin"
is manufactured; or
2.
A statement from the manufacturer that the product
to be imported is identically formulated for world-wide
distribution, provided ATF has a statement of process
on record.
SEC.
4. LIMITATIONS.
The
Bureau reserves the right to require resubmission
of the appropriate documentation and/or samples in
situations where the Bureau has reason to believe
the product has been changed, or when required by
the Director.
Return to Top
ATF
PROC. 87-1
Section
1. Purpose.
This
procedure provides guidelines for submission of samples
of alcoholic beverages to the ATF National Laboratory
Center for testing.
SEC.
2. BACKGROUND.
Frequently,
samples are received by the ATF Laboratory without
explanation or reason for submission. In addition,
some samples are submitted without being accompanied
by manufacturer's statement of ingredients/process,
or other appropriate documentation necessary to permit
laboratory analysis. These problems have contributed
to delays in testing alcoholic beverages.
SEC.
3. PROCEDURE.
The
following steps should be followed by industry members
when submitting samples of alcoholic beverages to
the Bureau for testing:
1.
Samples should be sent directly to:
ATF
National Laboratory
ATTN: Beverage Alcohol Section
1401 Research Boulevard
Rockville, MD 20850
The
Bureau has frequently encountered instances in which
samples were shipped air freight to a Washington,
DC airport, but no arrangements were made for delivery
of the samples from the airport to the ATF Lab. Industry
members are reminded that the shipping costs and arrangements
for delivery of samples to the ATF Lab are their responsibility.
Samples
should not be shipped or submitted to Compliance Operations,
Product Compliance Branch.
2.
Each sample container (bottle, can, etc.) should be
identified with the following information:
a.
unique identifying number or designation,
b.
name and address of industry member submitting the
sample,
c.
reason for submission.
3.
Each sample should be accompanied by manufacturer's
statement of ingredients/process or other appropriate
documentation necessary to permit laboratory analysis.
A copy of the documentation should also be sent to
Compliance Operations, Product Compliance Branch.
When
products contain flavors, the documentation should
include percentage by volume of each ingredient, the
commercial name and number under which each flavor
is marketed, the name and address of the flavor manufacturer,
and the drawback number (if available). The source
from which the alcohol is derived (e.g. neutral spirits
grain, cane, grape) and the proof at which distilled
should also be included for distilled spirits specialty
products, gins and vodkas.
Samples
received without appropriate documentation will be
retained for sixty days after which time they will
be destroyed.
4.
The ATF Lab will acknowledge receipt of samples.
5.
The status of samples submitted for testing should
be checked by contacting the Compliance Operations,
Product Compliance Branch at (202) 566-7595, not earlier
than 21 days after receipt. Please avoid contacting
the ATF Laboratory to determine the status of sample
testing.
Return to Top
ATF
PROC. 87-4
(Note:
Laboratory work sheets are not reproduced here).
Section
1. Purpose.
The
purpose of this ATF Procedure is to advise of the
testing method used by the Bureau of Alcohol, Tobacco
and Firearms (ATF) in determining whether smokeless
tobacco products are chewing tobacco or snuff under
26 U.S.C. Secs. 5701 and 5702.
SEC.
2. BACKGROUND.
.01
Section 13202 of the Consolidated Omnibus Budget Reconciliation
Act of 1985, Public Law 99-272, amended 26 U.S.C.
5701 to impose taxes on chewing tobacco and snuff
(smokeless tobacco) effective July 1, 1986. As amended
by that Act, 26 U.S.C. 5702 defines these products
as follows:
Chewing
tobacco is any leaf tobacco that is not intended to
be smoked.
Snuff
is any finely cut, ground, or powdered tobacco that
is not intended to be smoked.
.02
Though different rates of tax are imposed on these
two products, the statutory definitions do not provide
a clear delineation between what is a leaf tobacco
(chewing tobacco) and what is a finely cut tobacco
(snuff).
.03
In an effort to better carry out its responsibilities
in making this fine distinction, ATF procured samples
of many smokeless tobacco products on the market shortly
after the effective date of the tax imposition, to
evaluate the distinction being made in the marketplace
between the two products. Over 100 products were tested
in ATF's laboratory, using variations of some techniques
suggested by members of the smokeless tobacco industry.
.04
As a result of these tests. ATF determined that a
carefully conducted sieving operation based on tobacco
particle size effectively distinguished between the
products which traditionally have been considered
to be chewing tobacco (tobacco leaves of larger particle
size) and those considered to be snuff (finer tobacco
particle size). Further, ATF believes this procedure
properly recognizes and applies the statutory definitions
in 26 U.S.C. 5702.
.05
The procedure found to make this delineation involved
the use of 10 mesh screen in an operation which resulted
in 50 percent or more of the particles falling through
the sieve in the case of snuff, and less than 50 percent
falling through the sieve in the case of chewing tobacco.
Consequently, ATF issuing the procedure, described
in detail in Section 3, whenever it is administratively
necessary to make distinctions between chewing tobacco
and snuff under 26 U.S., Secs. 5701 or 5702.
.06
The procedure is employed only when it is not readily
apparent from other available information (visual
appearance, method of manufacture, etc.) whether the
product is chewing tobacco or is snuff. When it is
unclear from the other available evidence whether
a product is a "leaf tobacco" or is a "finely cut,
ground, or powdered tobacco," then the procedure is
employed to provide objective information as to the
nature of the product.
SEC.
3. DISTINGUISHING BETWEEN CHEWING TOBACCO AND SNUFF
BY SIEVE TESTING.
.01
Sieve Testing Method
1.
General Methodology.
The
sieving operation consists of mechanically vibrating
on a sieve, during a 4 minute cycle, approximately
equal triplicate samples of smokeless tobacco to determine
the percentage of the sample which is retained on
the sieve and the percentage of the sample which passes
through the sieve.
2.
Apparatus
(a)
U.S.A. testing sieves, ASTM E.-11, 8 inch diameter,
No. 10 mesh (0.0787 inch), with covers and collecting
pans
(b)
Electric 8 inch sieve shaker, ROTAP (Reg. TM)
(c)
Standard analytical balance
.02
Sample Preparation
Triplicate
samples of approximately the same size are selected
for each test. If the samples are in consumer packages
in the range of 25 to 35 grams each, then the product
from three individual packages is used for the test.
Otherwise, samples of about 30 grams each are weighed
out.
If
the moisture content of a sample should be so low
that the vibration would likely cause disintegration
of the tobacco leaves, the sample would not be used.
The
three samples are spread by hand over the surfaces
of the respective screens as the screens rest on the
respective pans.
.03
Testing Procedure.
(a)
The tares of the varying component combinations are
obtained by weighing and entering lines 2, 5, and
8 of the Laboratory Worksheet (See Exhibit).
(b)
The weight of the samples and the associated components
is taken and entered in Line 1. Line 2 is subtracted
from this to provide the net weight of the sample
in Line 3. The covers are removed from the two sieves
which will not be at the top of the shaker array.
(c)
The three samples are stacked in the sieve shaker,
and the shaker is activated for 4 minutes. The sieve
are removed from the shaker and the two covers are
replaced. (Note: Covers are used on all sieves during
the manipulations of the samples to prevent moisture
loss between the initial and final weighing).
(d)
The weights of the cover and sieve and of the cover
and pan are determined and entered in worksheet Lines
4 and 7, respectively.
.04
Computations.
(a)
The net weight of the sample retained on the sieve
is determined by subtracting from the combined weight
of the cover and the sieve and its contents (Line
4), the tare of the cover and the sieve (Line 5),
and the result entered in Line 6.
(b)
The net weight of the sample which passed through
the sieve is determined by subtracting from the combined
weight of the cover and the pan and its contents (Line
7), the tare of the cover and the pan (Line 8), and
the result entered in Line 9.
(c)
The total weight of the sieved sample is determined
by adding the net weights of the sample retained on
the sieve and the sample which passed through the
sieve (Lines 6 and 9) and the result entered in Line
10.
(d)
The percentage of the sample retained on the sieve
is determined by dividing the net weight of the sample
which passed through the sieve (Line 6) by the total
weight of the sieved sample (Line 10), multiplying
the result by 100, and entering on Line 11.
(e)
The percentage of the sample which passed through
the sieve is determined by dividing the net weight
of the sample which passed through the sieve (Line
9) by the total weight of the sieved sample (Line
10), multiplying the result by 100, and entering on
Line 12.
(f)
The mean percentages (item 13) will be determined
by taking the average of the results of the three
samples tested. The mean for percentage on the sieve
(item 13a) will be the average of the figures on line
11. The mean for percentage on the pan (item 13b)
will be average of the figures on line 12.
(g)
The product will be classified as chewing tobacco
if the mean percentage in item 13a exceeds 50 percent.
The product will be classified as snuff if the mean
percentage in item 13b equals or exceeds 50 percent.
SEC.
4. INQUIRIES.
Any
inquiries concerning this ATF Procedure should refer
to its number and be addressed to:
Chief,
Distilled Spirits and Tobacco Branch
Bureau of Alcohol, Tobacco and Firearms
1200 Pennsylvania Avenue, NW
Washington, DC 20226
Return to Top
ATF
PROC. 88-1
Section
1. Purpose.
1.01
The purpose of this ATF Procedure is to provide instructions
for certification of bottled and/or packaged straight
bourbon whiskey shipped to the European Economic Community
(EEC) and other countries, using ATF Form 5110.42
(4-88), Certificate of Authenticity-Bourbon Whiskey.
SEC.
2. BACKGROUND.
2.01
The European Economic Community (EEC) permits importations
of straight bourbon whiskey from the United States
into its Member States, subject to the presentation
of a properly endorsed Form 5110.42 (4-88). The responsible
authority, in this case, is the Bureau of Alcohol,
Tobacco and Firearms (ATF).
SEC.
3. OBTAINING FORMS 5110.42 (4-88).
3.01
An exporter may request blank Forms 5110.42 (4-88)
by contacting the ATF Distribution Center, 7943 Angus
Court, Springfield, VA 22153.
SEC.
4. INSTRUCTIONS FOR COMPLETING ATF FORM 5110.42 (4-88).
4.01
For each transaction, an exporter will complete a
set of forms consisting of two original Forms 5110.42
(4-88). All items on the forms should be completed,
except items numbered 12 and 13. Where the entries
to be listed in item 5 are too numerous to fit on
this set of forms, one or more additional sets of
forms should be prepared. All entries will be made
in English.
4.02
All items are self explanatory, but the following
should be noted:
(a)
"Certificate of Authenticity Bourbon Whiskey No. Original,"
will be a number assigned by the proprietor. The number
will consist of two digits representing the year,
followed by a dash and a sequenced numbering system
beginning with the number 1. Examples are 88-1, 88-2,
and 88-3. Where it has been necessary to use more
than one set of Forms 5110.42 (4-88) to describe a
particular shipment, a different serial number will
be assigned to each set.
(b)
Serial numbers and marks. In item 5, the serial numbers
of the first and last cases in a series should be
shown (for example. A21730-A21986). The serial numbers
of packages (casks, barrels, etc.) should be listed
in numerical order. The entry for "marks" should consist
of the plant registry number (e.g., DSP-KY-0000).
(c)
Observations: In item 11, appropriate entries may
be made to indicate any unusual conditions or circumstances
in connection with the shipment described on Form
5110.42 (4-88).
SEC.
5. INSTRUCTIONS FOR FILING FORMS 5110.42 (4-88) WITH
ATF OFFICIAL.
5.01
Both copies of the completed Form 5110.42 (4-88),
shall be forwarded to the local ATF Compliance Office
along with appropriate documentation to substantiate
the accuracy of the certificate. After verifying the
accuracy of the certificate, the ATF officer will
complete item 12, placing a stamp showing the seal
of the Department of the Treasury, in the space allocated.
The area office will retain the one copy for its files,
and return the other to the proprietor. The proprietor's
copy will accompany the shipment to be exported.
SEC.
6. FORMS 5110.42 (4-88) PREPARED BY PROPRIETORS OF
CUSTOMS MANUFACTURING BONDED WAREHOUSES.
6.01
A proprietor of a class six Customs Manufacturing
Bonded Warehouse (CMBW) preparing Form 5110.42 (4-88)
should do so in accordance with Section 4 above, with
the following modifications:
6.02
In item 5, the proprietor should report the registry
number of the distilled spirits plant from which the
spirits were received, preceded by "CMBW".
6.03
The proprietor should then attach to the Form 5110.42
(4-88) a statement which contains the identification
of the Form 5110.11, Withdrawal of Spirits, Specially
Denatured Spirits, or Wine for Exportation, covering
the transfer of spirits into the warehouse and a description
of the manipulation of the spirits while in the warehouse.
If there was no manipulation of the spirits, the proprietor
should so certify on the statement. The customs officer
should examine Form 5110.42 (4-88) and the proprietor's
statement, and if the information is found to be correct,
should certify on the statement and return the documents
to the proprietor for filing with ATF in accordance
with Section 5 above.
SEC.
7. EEC REGULATIONS.
7.01
The EEC regulations provide that the completed certificate,
Form 5110.42 (4-88), shall be submitted to the customs
authorities of the importing Member State within three
months of its date of issue, together with the goods
to which it refers. Invoices produced in support of
import declarations shall bear the serial number of
the corresponding certificate.
7.02
The customs authority of the Member State in which
the products are presented may request a translation
of the certificate.
SEC.
8. USE OF FORMS 5110.42 (4-88) FOR EXPORTS TO OTHER
COUNTRIES.
8.01
Other countries requiring certification for straight
bourbon whiskey may use Form 5110.42 (4-88), if acceptable
to the foreign countries involved. Procedures indicated
above must be followed, except that Section 7 may
not be applicable.
8.02
With respect to Japan and other countries which require
that Form 5110.42 (4-88) be accompanied by a certified
true copy of an approved Form 5100.31 (10-85). Application
for an Certification/Exemption of Label/Bottle Approval,
the proprietor files an ATF Form 5100.31 (10-85) in
the usual manner, with the exceptions that (1) in
the section marked "Qualifications," the exporter
shall write "For Export to Only," with the appropriate
name of the country put in the blank, and (2) the
exporter shall file his Form 5100.31 (10-85) in triplicate.
8.03
When the approval for Forms 5100.31 (For Export Only)
has been received; and the exporter still needs additional
copies, an original and a photocopy should be submitted
to a regional ATF area office where an ATF officer
will certify that the photocopy is a true copy of
the original. This certified photocopy shall then
be included along with the approved original Form
5110.42 (4-88) and all other papers required for the
shipment.
SEC.
9. EFFECT ON OTHER DOCUMENTS.
9.01
Revenue Procedures 70-14 and 71-13 are hereby superseded.
SEC.
10. INQUIRIES.
10.01
Inquiries regarding this procedures should refer to
its number and be addressed to the office of the appropriate
Regional Director (Compliance), Bureau of Alcohol,
Tobacco and Firearms.
Return to Top
ATF
PROC. 88-2
Section
1. Purpose.
1.01
The purpose of this procedure is to revise Section
8.02 of ATF Procedure 86-1 to explain the new time
frames ATF will use in registering, with the EEC,
the names, addresses and bonded winery registry numbers
of the wineries which have complied with the certification
requirements referenced in Section 8.01 of ATF Procedure
86-1.
SEC.
2. BACKGROUND.
2.01
ATF Procedure 86-1 outlined the requirements of the
European Economic Community (hereinafter referred
to as the EEC or the Community) as they apply to certification
and analysis of commercial shipments of U.S. grape
table wine and U.S. sparkling grape wine.
2.02
Subsequent to the issuance of ATF Procedure 86-1,
ATF accepted the EEC's recommendation to establish
a biannual time frame for registering, with the Community,
the names, addresses and bonded winery registry numbers
of the wineries which have complied with the certification
requirements referenced in Section 8.01 of ATF Procedure
86-1, the purpose of this time frame being to facilitate
the administrative demands associated with this registration
process.
SEC.
3. AMENDMENTS TO ATF PROCEDURE 86-1.
3.01
Section 8.02 of ATF Procedure 86-1 is amended to read
as follows:
"8.02
Subject to the time frames specified in Section 8.02(a),
ATF will submit, to the European Economic Community,
the names, addresses and bonded winery registry numbers
of the wineries which have correctly completed and
submitted the certification statement referenced in
Section 8.01 and will identify these wineries as being
authorized, until such time as this authorization
is withdrawn, to draw up V.I.1 documents in accordance
with 'Commission Regulation (EEC) No. 3590/85 of December
18, 1985 on the certificate and analysis report required
for the importation of wine, grape juice and grape
must.'
(a)
Except as provided for in Section 8.02(b), ATF's time
frame for notifying the EEC of the identity of authorized
wineries will depend on when the required certification
statement is received by ATF, that is:
-
if the certification statement is received prior to
January 1, 1989, ATF will notify the EEC as soon as
possible after receipt of the statement;
-
as of 1989, if the certification statement is received
during the period covering January 1-June 30, ATF
will notify the EEC as soon as possible after June
30 of the given year;
-
as of 1989, if the certification statement is received
during the period covering July 1-December 31, ATF
will notify the EEC as soon as possible after December
31 of the given year.
(b)
Regardless of time of receipt, if a certification
statement is submitted to ATF for the purpose of amending
the name and/or address of a producer whose bonded
winery registry number has already been identified
to the EEC, ATF will notify the EEC of the amended
name and/or address as soon as possible after receipt
of the revised statement."
SEC.
4. INQUIRIES.
5.01
An ATF acknowledgment of the receipt of a certification
statement will be sent to the submitting winery within
two weeks of receipt. If this acknowledgment is not
received, the winery should contact ATF without delay.
Such inquiries and all others concerning this procedure
should refer to its number and should be addressed
to:
Chief,
Alcohol Import-Export Branch
Bureau of Alcohol, Tobacco and Firearms
Attn: V.I.1 Certification
Ariel Rios Federal Building
1200 Pennsylvania Avenue, NW
Return to Top
ATF
PROC. 90-2
(Note:
Tables attached to this Procedure are not reproduced
here).
Section
1. Purpose.
The
purpose of this ATF procedure is to advise of the
testing method used by the Bureau of Alcohol, Tobacco
and Firearms(ATF) to aid in differentiating between
pipe tobacco, upon which tax is imposed pursuant to
26 U.S.C. 5701(f), and smoking tobacco that is not
subject to tax.
SEC.
2. BACKGROUND.
.01
The Technical and Miscellaneous Revenue Act of 1988,
Pub. L. 100-647, was enacted on November 10, 1988.
Section 5061 of the Act amended 26 U.S.C. 5701, to
impose a tax at the rate of 45 cents per pound (and
a proportionate tax at the like rate on all fractional
part of a pound), on all pipe tobacco manufactured
in or imported into the United States after December
31, 1988. Pipe tobacco is defined in the Act to mean
"any tobacco which because of its appearance, type,
packaging, or labeling, is suitable for use and likely
to be offered to, or purchased by, consumers as tobacco
to be smoked in a pipe."
The
term "pipe tobacco" does not include smoking tobacco
that is not suitable for use or likely to be offered
to or purchased by consumers for use in a pipe.
.02
To assist in making the distinction between pipe tobacco
and roll-your-own cigarette tobacco (i.e., smoking
tobacco that is not suitable for or likely to be used
in a pipe), ATF has developed a new and separate procedure
which is a modification of the sequential solvent
extraction method described in ATF Procedure 76-2,
ATF C.B. 1976, 111-121, for differentiating between
cigars and cigarettes. The original sequential extractions
procedure was developed to aid the Bureau in making
cigar/cigarette distinctions for tax purposes, as
required for administration of 26 U.S.C., Chapter
52.
ATF
Procedure 76-2 is based on cigar and cigarette standards
as represented by filler tobacco of typical cigars
and typical cigarettes obtained from the retail market,
which have been subjected to sequential extraction
with six successive solvents of increasing extractability.
The sequential solvent extraction method utilized
by ATF in this procedure to aid in making distinctions
between pipe tobacco and roll-your-own tobacco is
modified from that set forth in ATF Procedure 76-2
in that three solvents are used (petroleum ether,
ethyl alcohol, and water), rather than six.
.03
Using methodology similar to that of ATF Procedure
76-2, samples of roll-your-own tobacco and pipe tobacco
obtained from the retail market were subjected to
the modified sequential differential solvent extraction
procedure using the three solvents indicated above.
The resultant standards are shown in Tables I and
II. (Not reproduced here). Subsequently, smoking tobacco
samples of unknown character are subjected to the
same extraction method and their results mathematically
compared with extractions of the standards to determine
the degree of roll-your-own tobacco character.
.04
As a result of these tests, ATF determined that the
sequential solvent extraction method and formulas
described in this procedure effectively assist in
differentiating between smoking tobacco that has been
traditionally considered as "pipe tobacco" and smoking
tobacco considered to be "roll-your-own tobacco."
Further, ATF believes this procedure properly recognizes
and applies the definition of pipe tobacco set forth
in 26 U.S.C. 5702(o).
.05
In addition to utilizing the sequential solvent extraction
method and formulas described in this procedure, ATF
may consider a combination of other factors in making
a distinction between pipe tobacco and roll-your-own
tobacco. These factors include the type and cut of
tobacco used, flavorings, packaging, advertising and
point of sale merchandising, purchasing patterns,
etc.
SEC.
3. SOLVENTS AND EQUIPMENT.
.01
Solvent
Petroleum
ether (30 degrees-58 degrees C), ACS reagent grade.
Ethanol
95%, U.S.P. grade.
Water,
demineralized, with anti-foam added, as described
in section 4 below.
.02
Apparatus and Equipment
Balance,
analytical-semimicro (type H-15, Mettler Instrument
Corp., Princeton, N.J.)
Bottle,
wash-polyethylene
Demineralizing
cartridge, double research model.
Desiccator
Evaporator,
rotary (Rotavapor, BUCHI, made in Switzerland)
Extraction
apparatus - Soxhlet standard, with vapor trail portion
of thimble receptacle insulated with single thickness
of 1" x 1/32" asbestos type, applied wet. No other
portion of the apparatus is insulated (See Figure
1, ATF Procedure 76-2).
Extraction
thimble - glass, 25mm x 85mm, coarse porosity fritted
disk.
Extraction
heaters six unit electric (Cat. No. 6500, GCA/Precision
Scientific, Chicago, IL)
Flask,
drying - glass 250 ml round bottom funnel, 45mm diameter.
Flask,
receiving - glass, 125 ml flat bottom
Mill,
cutting - Wiley, intermediate (cutting chamber 40mm
inside diameter x 20mm depth) with 20 mesh screen
Oven,
convection
Funnel,
45mm
Fisher,
Kendall Wrist action Solid Mixed (Fisher Scientific,
Columbia, MD)
Pipette
- with rubber bulb
Regulator,
water pressure (installed between water supply and
water condenser of Rotavapor)
Stopcock
- 3-way (inserted between rotary evaporator and water
aspirator vacuum pump--used to break vacuum before
disconnecting 250 ml round-bottom flasks)
Vacuum
hose
Vacuum
pump - water aspirator type
Valve,
needle
.03
Supplies
Chips,
boiling - Chemfluor TFE (Norton Chemplast, 150 Dey
Road Wayne, N.J. 07470)
Cotton
- Sterile grade medicinal
Desiccant
- indicating silica gel
Antifoam
- Anti-Foam 820, (Scientific Industries, Inc., 15
Park Street, Springfield, Mass.)
SEC.
4. PREPARATION OF SOLVENTS.
Petroleum
ether and ethyl alcohol are distilled in glass within
24 hours of use under normal atmosphere. Water is
purified by passing through the research model double
demineralizing cartridge resulting in water equivalent
to triple distilled. One drop of freshly shaken antifoam
is added for each 100 ml water.
SEC.
5. PREPARATION OF SAMPLES
Pulverize
about ten grams of the tobacco sample in a Wiley intermediate
cutting mill with 20 mesh screen on the delivery tube.
After pulverizing, cap the receiving jar and mix thoroughly
by using a Fisher Kendall wrist-action solid mixer
ca. 30 minutes. Transfer one and one-half grams of
the pulverized tobacco sample to a tared glass thimble
and weigh. Insert a small cotton plug, about 30 mm
x 30 mm, in the thimble on top of the sample. Place
thimble into thimble receptacle portion of Soxhlet
apparatus, and connect 125 mil receiving flask containing
fresh boiling chips. Repeat for each additional sample
to run. (From three to six replicate samples are run
simultaneously.) Determine the moisture content of
tobacco by placing three grams of pulverized tobacco
into a previously dried and weighed aluminum dish
and weigh. Place aluminum dish in oven at 103 +/-
2 degrees C for 24 hours. Cool to room temperature
in a dessicator containing silica gel and reweigh.
Calculate the loss in weight as the percent of moisture.
Use this percent moisture value to correct for moisture
content of extraction samples.
SEC.
6. EXTRACTIONS.
01.
Petroleum Ether
To
create a vapor seal at the joint connecting the Soxhlet
apparatus and the receiving flask, moisten the male
joint of the Soxhlet apparatus with a drop of demineralized
water (without antifoam), and connect to the receiving
flask with a twisting motion. Add 100 ml of freshly
distilled petroleum ether slowly to the thimble within
the Soxhlet apparatus, which should cause two to three
zero solvent trips. Set control on heating units to
"15" and bring solvent to boil, adjusting control
an necessary to achieve a trip cycle rate of one every
three minutes. Occasionally it is necessary to add
a measured quantity of petroleum ether through the
top of the condenser to replace loss by evaporation.
Extract for 24 hours. (During this time clean, dry
overnight in the oven at 103 +/- 2 degrees C, and
store in the dessicator, the 250 ml round-bottom flasks
to be later used in the ethyl alcohol extract.) After
petroleum ether extraction for 24 hours turn off heater
and let cool to room temperature. Transfer extraction
solvent in thimble, thimble chamber and in the receiving
flask to a tared 250 ml round-bottom flask. Remove
the excess solvent from the thimble using a bulb and
pipette, and then remove the last traces of petroleum
ether by placing the bottom of the thimble into a
funnel containing a plug of cotton and connect to
a vacuum line. (Return thimble containing tobacco
sample to the Soxhlet apparatus, and replace the boiling
chips in the receiving flask with fresh ones.) Remove
solvent from the extract in the 250 ml round-bottom
flask with rotary evaporator. The needle valve is
either closed or left to bleed in a small amount of
air after having been so set at a previous water extraction
setting. Make a corrective blank for petroleum ether,
if appropriate. Place the drying flasks containing
extracts in the oven for 30 minutes at 103 +/- 2 degrees
C. Place in desiccator until flasks reach room temperature,
and then weigh. Calculate the percentage of extract
on a moisture-free basis as follows:
(Calculations
not reproduced here)
.02
95% Ethyl Alcohol
Using
freshly distilled ethyl alcohol, slowly add 100 ml
of solvent to the thimbles within the Soxhlet apparatus,
which should cause two to three zero solvent trips.
Set control on heating units to "80" and bring solvent
to boil. Adjust control as necessary to achieve a
trip cycle of one
every
six minutes. Extract for 24 hours and then turn off
heater. (During this time prepare 250 ml round-bottom
flasks to be used in drying the extract of water.)
Let cool about 30 minutes or until at room temperature.
Transfer extraction solvent in thimble, thimble chamber,
and in the receiving flask, using a bulb and pipette
to achieve maximum removal from the thimbles. Remove
residue from the receiving flask using a wash bottle
and 2 or 3 ml of demineralized water (without antifoam),
adding the washing to the drying flask. (Return thimble
and content to the Soxhlet apparatus, replace the
boiling chips in the receiving flask with fresh ones,
and connect the flask and apparatus). Remove solvent
from the tobacco extract in the 250 ml round-bottom
flask with rotary evaporator. Proceed with drying,
weighing and calculating in the same way as with petroleum
ether in step .01. The ethyl alcohol extract is dried
in oven at 103 +/- 2 degrees C for four hours.
.03
Water
Add
100 ml of demineralized water containing a drop of
antifoam slowly to the thimble within the Soxhlet
apparatus, which should cause two to three zero solvent
trips. Set control on heating units to "100" and bring
solvent to boil, adjusting control as necessary to
achieve a trip cycle of one every ten minutes. Bring
solvent to boil and extract for 24 hours and then
turn off heaters. Let cool until room temperature.
Transfer extraction solvent in the thimble chamber,
and in the receiving flask to a tared 250 ml round-bottom
flask, using a bulb and pipette to achieve maximum
removal from the thimble. Remove residue from the
receiving flask with a wash bottle and about 5 ml
of demineralized water (without antifoam), and with
an aluminum spatula to aid in removing any possible
charred solid residue, adding this washing to the
250 ml round-bottom flask. Remove solvent from the
tobacco extract in the 250 ml round-bottom flask with
rotary evaporator. To avoid excess foaming, which
can occur with certain types of tobacco, adjust bleeder
valve attached to condenser of rotary evaporator to
bleed just enough air to retard foaming and to ensure
continued condensation of water vapor on the spiral
condenser. The water extract is dried in oven at 103
+/- 2 degrees C for four hours. Proceed with weighing
and calculating in the same way as with ethyl alcohol
in step .02.
.04
Summary of Extractions
(Summary
not reproduced here)
SEC.
7. STATISTICAL EXPRESSION OF RESULTS
.01
The percent roll-your-own tobacco character of smoking
tobacco is computed from two different combinations
of three dry-weight extractions. The computations
for roll-your-own tobacco character are based largely
on the different casing materials added to smoking
tobacco, with pipe tobacco having heavier casing or
saucing additives than roll-your-own tobacco. Using
the data tabulated in Tables I and II for roll-your-own
and pipe tobacco respectively, we have developed two
formulas for roll-your-own tobacco character computations.
(Formulas
not reproduced here)
SEC.
8. INQUIRIES.
Any
inquiries concerning this ATF Procedure should refer
to its number and be addressed to the Director, Bureau
of Alcohol, Tobacco and Firearms, 1200 Pennsylvania
Avenue NW, Washington, DC 20226.
Return to Top
ATF Procedure 95-1
(27
CFR 24.249 EXPERIMENTATION WITH NEW TREATING MATERIAL
OR PROCESS)
(27
24.250 APPLICATION FOR USE OF NEW TREATING MATERIAL
OR PROCESS)
(27
CFR 25.61 GENERAL REQUIREMENTS FOR NOTICE)
(27
CFR 25.62 DATA FOR NOTICE)
ATF
establishes guidelines for submission of requests
for approval of new materials to be used in the production
of beer (or cereal beverages).
SECTION
1. PURPOSE.
The
purpose of this procedure is to establish guidelines
that will assist brewers and their chemical suppliers
in obtaining approval from the Bureau of Alcohol,
Tobacco and Firearms (ATF) for the use of materials
not previously authorized for use in the production
of beer (and cereal beverages).
SEC.
2. CANCELLATION
ATF
Procedure 77-1 is hereby cancelled. The procedures
for a winemaker to use in applying for permission
to experiment with or use new treating materials or
processes were incorporated in 27 CFR 24.249 and 24.250,
respectively, by Treasury Decision ATF-299. The procedures
outlined herein supersede ATF Procedure 77-1 as it
relates to beer (and cereal beverages).
SEC.
3. BACKGROUND.
01.
To insure that the substances used in the production
and processing of beer (and cereal beverages) are
safe for human consumption and to insure proper classification
of such products, ATF exercises control over the materials
that may be used in the production of beer (and cereal
beverages). Materials authorized by ATF for the production
of beer (and cereal beverages) are periodically included
in the Adjunct Reference Manual published by Beer
Institute.
02.
To avoid unnecessary expansion of the official approved
materials lists and to avoid the administrative expense
of processing premature applications, ATF must have
assurance that brewers have a genuine interest in
using a new material before consideration will be
given to its authorization. Therefore, ATF will accept
applications for use of new materials only from brewers.
Chemical manufacturers should work with interested
brewers to obtain authorization for the use of new
products, using the guidelines provided herein.
SEC.
4. GUIDELINES.
01.
Application for approval of the use of a new material
in brewing may be submitted by any brewer and must
be accompanied by the following, as applicable:
A.
The name and description of the material;
B.
The purpose, the manner, and the extent to which the
material is to be used together with any technical
bulletin or other pertinent information relative to
the material;
C.
A sample of the proposed material (upon request from
ATF);
D.
Documentary evidence of the Food and Drug Administration's
approval of the material for its intended purpose
in the amounts proposed for the particular treatment
contemplated;
E.
The test results of any laboratory scale pilot studies
conducted by the brewer in testing the material and
an evaluation of the product and of the treatment
including the results of tests on the shelf life of
the treated product;
F.
A tabulation of pertinent information derived from
the testing program conducted by the chemical manufacturer
demonstrating the function of the material;
G.
A list of all chemicals used in compounding the treating
material and the quantity of each component;
H.
The recommended maximum and minimum amounts, if any,
of the material proposed to be used in the treatment;
and
I.
Two 750-milliliter samples representative of the beer
(or cereal beverage) before and after treatment. Three
12-ounce bottles or cans may be substituted for each
750-milliliter sample.
02.
Information of a confidential or proprietary nature
to the manufacturer or supplier of the treating material
may be forwarded by the manufacturer or supplier directly
to the Alcohol and Tobacco Programs Division, with
a reference to the application filed by the brewer.
Information contained within the brewer's application
can be disclosed to the public, subject to the limitations
of 26 U.S.C. 6103 and 7213.
SEC
5. INQUIRIES.
Inquiries
concerning this procedure should refer to it by number
and be addressed to the Alcohol and Tobacco Programs
Division, Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue, NW, Washington DC, 20226.
Return to Top
ATF Procedure 98-1
(27
U.S.C. 205, Unfair Competition and Unlawful Practices)
(27
CFR Part 7, Labeling and Advertising of Malt Beverages)
ATF
is providing guidelines for brewers and bottlers for
the labeling of imported malt beverages bottled or
packed in the United States, and for the labeling
of blends of imported and domestic malt beverages
bottled or packed in the United States
SECTION
1. Purpose. The purpose of this procedure is to provide
guidance to bottlers and packers of imported malt
beverages which are bottled or packed at domestic
breweries, and to provide guidance to bottlers and
packers for the labeling of blends of imported and
domestic malt beverages bottled or packed in the United
States.
SEC.
2. Background. As part of the Taxpayer Relief Act
of 1997, Public Law 105-34, Congress
enacted a new provision in the Internal Revenue Code
of 1986 which permits the transfer of beer in
bulk containers from customs custody to internal revenue
bond at a brewery. After transfer to internal
revenue bond at a brewery, imported beer may be bottled
or packed without change or with only the
addition of water and carbon dioxide, or may be blended
with domestic or other imported beer and
bottled or packed. This provision of the Taxpayer
Relief Act of 1997 is effective on April 1, 1998.
SEC.
3. Existing law and regulations. The Federal Alcohol
Administration Act, 27 U.S.C. § 205(e), gives
the Secretary authority to prescribe regulations regarding
the labeling and advertising of malt beverages. Regulations
at 27 CFR Part 7, Labeling and Advertising of Malt
Beverages, contain requirements for the labeling of
malt beverages. Section 7.22 prescribes mandatory
information which must appear on malt beverage labels.
Section 7.25 prescribes mandatory label language identifying
the importer, bottler, or packer of a malt beverage.
These existing provisions of part 7 address the labeling
of imported malt beverages which are bottled prior
to their importation into the United States, and the
labeling of domestic malt beverages bottled or packed
in the United States. Regulations in part 7 do not
address either the labeling of imported malt beverages
which are bottled in the United States, or imported
malt beverages which are blended with other imported
malt beverages or with domestic malt beverages, and
then bottled or packed in the United States.
SEC.
4. Country of origin requirements for imported malt
beverages.
.01
Malt beverages which are imported into the United
States, transferred from customs custody to
internal revenue bond at a brewery, and bottled or
packed at the brewery, without change following
importation, retain their identity as products of
their country of origin.
02.
Imported malt beverages which are not blended with
domestic malt beverages, and which do not
contain flavors or any other ingredients (other than
water) added at a domestic brewery, retain their
status as products of foreign origin. The addition
of water and/or carbon dioxide to an imported malt
beverage does not change its status as a product of
its country of origin.
.03
Malt beverages of foreign origin bottled at a domestic
brewery must be labeled with the country of origin
under U.S. Customs Service regulations.
04.
Treatment of an imported malt beverage at a domestic
brewery with functional materials such as preservatives,
stabilizers, clarifying agents, and the like, recognized
for use in the brewing industry, will not result in
the loss of its identity as a product of its country
of origin unless the country of origin prohibits the
treatment of malt beverages with such materials.
SEC.
5. Name and address requirements for imported malt
beverages.
.01
Under § 7.25(b), the name and address of
the importer of a malt beverage which is bottled or
packed at a domestic brewery must appear on the label,
preceded by the phrase "imported by," or a similar
appropriate phrase.
.02
Under § 7.25(a), the name and address of
the bottler or packer must appear on labels of domestic
malt beverages bottled or packed in the United States.
Accordingly, labels of imported malt beverages
which are bottled or packed in the United States at
a domestic brewery must contain, in addition to the
required name and address of the importer, the name
and address of the domestic bottler or packer, preceded
by the phrase "bottled by" or "packed by." The address
will be the place where the malt beverage is bottled
or packed, or may be the principal place of business
of the bottler or packer, if the address shown is
a location where bottling or packing takes place.
03.
If the importer and the bottler or packer of an imported
malt beverage are the same person, the
label may show a single name and address preceded
by the phrase "imported and bottled by," "imported
and packed by," or similar phrase. The address shown
on the label may be that of the principal place of
business of the importer who is also the bottler or
packer, provided the address shown is a location where
bottling or packing takes place.
SEC.
6. Labeling of imported malt beverages which are treated
or blended at domestic breweries. Malt beverages which
are imported into the United States and transferred
from customs custody to internal revenue bond at a
brewery may be blended with domestic or other foreign
malt beverages, and may be treated with flavors and
other ingredients at the brewery. These imported malt
beverages which are subsequently blended with domestic
or other foreign malt beverages lose their identity
as products of their country of origin.
01.
The blending of an imported malt beverage with a malt
beverage produced in the United States, or with a
malt beverage produced in a different foreign nation,
results in the malt beverage losing its identity as
a product of its country of origin. Similarly, the
addition of flavors or any other ingredients other
than water or functional materials (such as adjuncts
used for clarifying or stabilizing) to an imported
malt beverage at a domestic brewery results in the
malt beverage losing its identity as a product of
its country of origin.
02.
Imported bulk malt beverages which have lost their
identity as products of their countries of origin
may not be labeled with a country of origin statement,
and the name and address of an importer may
not appear on the label of such malt beverages. The
name and address of the brewer who bottles or
packs such malt beverage will appear on the label
preceded by the phrase "bottled by" or "packed by."
If the malt beverage is a blend of an imported malt
beverage with another malt beverage of foreign or
domestic production, the phrase "blended and bottled
by," or "blended and packed by" shall appear on the
label in lieu of "bottled by" or "packed by."
SEC.
7. Labeling of sake. The labeling of imported sake,
whether or not blended with domestic sake, which has been transferred to a domestic brewery from
customs custody and which is bottled or
packed at a domestic brewery, is governed by regulations
in 27 CFR Part 4, Labeling and Advertising
of Wine.
SEC.
8. Certificate of label approval requirements. Bottlers
and packers of imported malt beverages,
including blends of imported and domestic malt beverages,
bottled or packed at a domestic brewery,
are responsible for obtaining Certificates of Label
Approval to cover the bottling or packing of such
malt beverages. Blends of imported and domestic malt
beverages will receive the class and type code
for a domestic malt beverage of the appropriate class
and type.
SEC.
9. Effective date. This procedure is effective as
of April 1, 1998, and will remain in effect until
revoked or superseded, or replaced by regulations
implementing the provisions of section 1421 of
Public Law 105-34.
SEC.
10. For further information contact:
Chief,
Regulations Division
Bureau of Alcohol, Tobacco and Firearms
650 Massachusetts Avenue, NW
Washington, DC 20226
Telephone (202) 927-8230.
signed
by: Bradley Buckles 3/25/98
Return to Top
ATF
Procedure 98-2
(26
U.S.C. 5418, Beer imported in bulk)
(27
CFR Part 25, Beer)
(27
CFR Part 251, Importation of Distilled Spirits, Wines,
and Beer)
ATF
is providing guidelines to importers and brewers in
order to permit the importation of beer in bulk containers
and its transfer, without payment of tax, from customs
custody, to internal revenue bond at a brewery.
Section
1. PURPOSE.
The
purpose of this procedure is to provide brewers and
importers with immediate guidance for
importing beer in bulk containers and transferring
it to internal revenue bond at a brewery where it
may be bottled, filled into kegs, and removed on determination
of tax, or without payment of tax.
Sec.
2. BACKGROUND.
As
part of the Taxpayer Relief Act of 1997, Public Law
105-34, Congress included a new provision which permits
the transfer of beer in bulk containers from customs
custody to internal revenue bond at a brewery, without
payment of tax. Section 1421 of the Taxpayer Relief
Act added a new 5418 to the Internal Revenue Code
of 1986 (IRC), effective April 1, 1998, which reads
as follows:
Sec.
5418. Beer imported in bulk.
Beer
imported or brought into the United States in bulk
containers may, under such regulations as the Secretary
may prescribe, be withdrawn from customs custody and
transferred in such bulk containers to the premises
of a brewery without payment of the internal revenue
tax imposed on such beer. The proprietor of a brewery
to which such beer is transferred shall become liable
for the tax on the beer withdrawn from customs custody
under this section upon release of the beer from customs
custody, and the importer, or the person bringing
such beer into the United States, shall thereupon
be relieved of the liability for such tax.
Sec.
3. EXISTING LAW AND REGULATIONS.
Under
provisions of the IRC in effect both before and after
April 1, 1998, beer may be imported or brought into
the United States in containers of any size. Section
5051(a)(1) imposes an internal revenue excise tax
of $18 per barrel of 31 U.S. gallons on all beer imported
into the United States. Under 5054(a)(2), the tax
on imported beer is payable at the time of importation,
or if entered for warehousing, at the time of removal
from the first such warehouse. Imported beer brought
into the United States in bottles or kegs is taxpaid
at the time of its release from customs custody, and
is moved into wholesale and retail distribution channels
for sale to consumers. Before April 1, 1998, imported
beer brought into the United States in bulk containers
was required to be taxpaid at the time the containers
were released from customs custody. This procedure
may still be followed; however, taxpaid beer may not
be brought onto bonded brewery premises. After imported
bulk beer is taxpaid and released, such beer may be
taken to an unbonded facility and bottled or placed
into kegs for sale to consumers. Before April 1, 1998,
there was no provision in the IRC or implementing
regulations in 27 CFR parts 25 or 251 to import beer
into the United States and transfer it to internal
revenue bond, thus deferring the tax payment on such
beer until such time as the beer is removed from internal
revenue bond.
Sec.
4. CHANGES MADE BY PUBLIC LAW 105-34.
Under
the provisions of Section 1421 of Public Law 105-34,
beer may be imported in bulk containers, released
from customs custody and transferred to internal revenue
bond at a brewery. Upon release of the beer from customs
custody, the importer is relieved of the liability
for the tax on the beer, and the brewer assumes the
liability for the tax on the Brewer's Bond. The tax
on such imported beer is ultimately determined at
the time beer is removed from the brewery for consumption
or sale, and is paid by the brewer by return as provided
by 5061. Such beer may also be removed from the brewery
without payment of tax for any purpose authorized
by 5053.
Sec.
5. BOND COVERAGE REQUIRED.
Prior
to receiving beer transferred from customs custody
to internal revenue bond, the brewer must obtain bond
coverage for the internal revenue tax liability on
bulk beer transferred from customs custody to internal
revenue bond. Until the Brewer's Bond, Form 5130.22,
is revised to include this coverage, a brewer may
file a Consent of Surety, Form 1533, to cover the
tax liability. Consents of Surety will be executed
as provided in 25.92, and the "change covered by this
consent" will read as follows:
"To
continue in effect and extend the terms and conditions
of such bond, including all exclusions and limitations
of such terms and conditions previously consented
to and approved, to cover the tax for which the principal
shall become liable, on all beer withdrawn from customs
custody in bulk containers and transferred to internal
revenue bond at a brewery premises."
Brewers
holding a Brewer's Bond, Form 5130.22, in less than
the maximum penal sum must ensure that the penal sum
of their existing bond is adequate to cover any additional
tax liability resulting from the transfer of imported
beer to internal revenue bond. A superseding or strengthening
bond, accompanied by the consent described above,
should be used to increase the penal sum, if necessary.
Sec.
6. CONDITIONS FOR THE IMPORTATION OF BEER IN BULK
CONTAINERS AND ITS TRANSFER TO BREWERY PREMISES.
Beginning
April 1, 1998, beer may be imported in bulk containers
and transferred without payment of tax from customs
custody to internal revenue bond at the brewery. Importers
and brewers shall comply with the following conditions
in order to transfer beer under 5418.
.01
The brewer will obtain appropriate bond coverage as
outlined in Section 5.
.02
Beer will be imported in containers larger than one
barrel of 31 gallons. Imported beer containing any
distilled spirits, wine, or cider; sake containing
any distilled spirits; and beer concentrated by the
removal of water, may not be imported and transferred
to internal revenue bond under section 5418 because
these products are generally not classified as beer
under the IRC. Sake containing no added distilled
spirits and high gravity beer are considered beer
for purposes of transfer to internal revenue bond.
.03
If a brewer imports the beer, the brewer shall hold
a basic permit issued under the Federal Alcohol Administration
Act (FAA Act) as an importer of malt beverages. If
purchasing the beer from an importer for resale at
wholesale, the brewer shall hold a basic permit issued
under the FAA Act as a wholesaler of malt beverages.
If sake is being imported, the brewer shall hold a
basic permit under the FAA Act as an importer or wholesaler
of wine.
.04
On release of the beer from customs custody, the importer
will prepare a transfer record documenting the transfer
of the beer and maintain such record. This record
will identify the importer and will show the number
of containers transferred and quantity of beer within
each container, the foreign origin of the beer, the
customs entry number, amount of duty paid, kind of
beer, and identification of the foreign brewer. A
copy of this record will be furnished to and maintained
by the brewer if the brewer is not the importer.
.05
Imported beer is subject to tax at the rate prescribed
by 5051(a)(1) on its removal from the brewery for
consumption or sale. Imported beer is not eligible
to be taxpaid at the reduced rate of tax provided
for by 5051(a)(2). For the purpose of determining
the 2,000,000 annual barrel limitation for eligibility
to pay the reduced rate of tax, a brewer may exclude
the quantity of imported beer transferred to internal
revenue bond during a calendar year, provided such
imported beer is not produced by that brewer or by
a member of a controlled group which includes that
brewer. Imported beer removed from the brewery subject
to tax will not be counted in determining an eligible
brewer's first 60,000 barrels of beer removed from
the brewery during a calendar year. In the case of
blends of foreign and domestic beer, the reduced rate
goes only to the domestic part of the blend.
.06
Imported beer may be mingled with domestic beer at
the brewery, and may be removed from a brewery without
payment of tax for any purpose authorized by 5053.
Imported beer may not be removed or withdrawn from
brewery premises in the same container in which transferred
from customs custody except for transfers to another
brewery of the same ownership under 25.181.
.07
Imported beer is not eligible for credit or refund
of tax for any reason prescribed by 5056. Imported
beer is not eligible to be exported with benefit of
drawback under 5055. Imported beer may not be returned
to the brewery from which removed for an offset as
provided by 25.159.
.08
Brewers will keep records documenting the transfer
of imported beer from customs custody to brewery premises,
the quantity of imported beer removed from the brewery
subject to tax and without payment of tax, and the
quantity of imported beer in any mixtures of beer
removed or transferred from the brewery. Imported
beer transferred to brewery premises will be reported
on line 5a of the Brewer's Report of Operations, Form
5130.9.
.09
Brewers must maintain adequate records evidencing
the appropriate tax payment of beer or the entitlement
to credit or refund for beer lost, destroyed, or returned
to the brewery. Records are necessary to assure that
different components in a blend of imported and domestic
beers receive the appropriate tax treatment. Adequate
records as contemplated by this paragraph include,
for example, a statement on the label or on a commercial
invoice accompanying a shipment as follows "___ %
Domestic Beer, ___ % Foreign Beer." A country of origin
statement may be substituted for the term "foreign
beer" on labels or on invoices.
.10
Transfer of beer from customs bond to internal revenue
bond under 5418 does not constitute tax determination.
Therefore, a brewer need not file claims for losses
of imported beer on brewery premises in circumstances
for which claims are not required for domestic beer
under current regulations (such as in the case of
losses during storage or bottling).
Sec.
7. EFFECTIVE DATE.
This
procedure is effective April 1, 1998, and will remain
in effect until revoked or superseded, or replaced
by regulations implementing the provisions of section
1421 of Public Law 105-34.
Sec.
8. FOR FURTHER INFORMATION CONTACT:
Chief,
Regulations Division
Bureau of Alcohol, Tobacco and Firearms
650 Massachusetts Avenue, NW
Washington, DC 20226
Telephone (202) 927-8230.
signed
by: Bradley Buckles 3/25/98
Return to Top
ATF
Procedure 98-3
(26
U.S.C. 5364 - WINE IMPORTED IN BULK)
(27
CFR Part 24 - WINE)
(27
CFR Part 251 - IMPORTATION OF DISTILLED SPIRITS, WINES
AND BEER)
SECTION
1. PURPOSE.
The
purpose of this procedure is to establish guidelines
that will assist importers and bonded wine premises
proprietors in importing bulk wine in bond as authorized
in 26 U.S.C. 5364, effective April 1, 1998. This procedure
will remain in effect until the Bureau of Alcohol,
Tobacco and Firearms (ATF) issues amended regulations
covering operations on bonded wine premises and importation
of wine to take this new law into account.
SEC.
2. BACKGROUND.
Section
1422 of the Taxpayer Relief Act of 1997 amended the
Internal Revenue Code of 1986 (IRC) by adding a new
section 5364, effective April 1, 1998, which provides
as follows:
SEC.
5364. WINE IMPORTED IN BULK.
Wine
imported or brought into the United States in bulk
containers may, under such regulations as the Secretary
may prescribe, be withdrawn from customs custody and
transferred in such bulk containers to the premises
of a bonded wine cellar without payment of the internal
revenue tax imposed on such wine. The proprietor of
a bonded wine cellar to which such wine is transferred
shall become liable for the tax on the wine withdrawn
from customs custody under this section upon release
of the wine from customs custody, and the importer,
or the person bringing such wine into the United States,
shall thereupon be relieved of the liability for such
tax.
Before
the effective date of section 5364, all imported wine
is required to be taxpaid upon removal from customs
custody, and taxpaid bulk imported wine was transferred
to the taxpaid premises of a bonded wine cellar or
to a taxpaid wine bottling house because taxpaid wines
are not permitted on bonded premises. Only treatments
such as stabilizing, mixing and bottling (which do
not increase the volume of taxpaid wine) are allowed
on taxpaid premises. After April 1,1998, bulk imported
wine may be transferred from customs bond to the premises
of a bonded wine cellar. ATF will issue amended regulations
covering this newly authorized activity, but this
procedure is issued in the interim to insure that
such transfers take place without jeopardy to the
revenue, and to answer other questions resulting from
this change.
SEC.
3. GUIDELINES.
.01
Before transferring imported wine in bulk containers
from customs bond to internal revenue bond, a wine
premises proprietor must obtain bond coverage for
the internal revenue tax liability on bulk wine transferred
from customs custody to internal revenue bond. Until
the Wine Bond, Form 5120.36, is revised to include
this coverage, proprietors must file a Consent of
Surety. The Consent of Surety will be executed on
ATF Form 1533 as provided in § 24.152, and
will read as follows:
"To
continue in effect and extend the terms and conditions
of such bond, including all exclusions and limitations
of such terms and conditions previously consented
to and approved, to cover the tax for which the principal
shall become liable, on all wine withdrawn from customs
custody in bulk containers and transferred to internal
revenue bond at a bonded wine premises."
Wine
premises proprietors holding a Wine Bond, Form 5120.36,
in less than the maximum penal sum must ensure that
the penal sum of their existing bond is adequate to
cover any additional tax liability resulting from
the transfer of imported wine to internal revenue
bond. A superseding or strengthening bond, accompanied
by the consent described above, should be used to
increase the penal sum, if necessary.
.02
Conditions on importation of bulk wine in bond prior
to issuance of regulations implementing 26 U.S.C.
5364:
A.
Bulk containers are defined in 27 CFR part 24 as containers
larger than 60 liters (15.8502 gallons). No smaller
container may be imported in bond.
B.
The importer of wine must have an importer's basic
permit issued under the Federal Alcohol
Administration Act. If the bonded wine premises proprietor
purchases the wine from the importer for resale at
wholesale, the proprietor must have a wholesaler's
basic permit issued under the Federal Alcohol Administration
Act.
C.
The same certificates of origin and identity that
are required to support importation and label claims
for taxpaid imports of bottled and bulk wines will
be required for bulk wines imported in bond.
D.
On release of the wine from customs custody, the importer
will prepare and maintain a transfer record documenting
the transfer of the wine. This record will identify
the importer and will show the number of containers
transferred and quantity of wine within each container,
the origin of the wine, the customs entry number,
amount of duty paid, kind of wine, and identification
of the foreign producer. A copy of this record will
be furnished to and maintained by the bonded wine
premises proprietor if the proprietor is not the importer.
E.
Imported wine transferred to bonded wine premises
will be reported along with other wine received in
bond on line 7 of Section A of the Report of Wine
Premises Operations, ATF Form 5120.17.
F.
Records of wine operations conducted on imported wine
should be expanded to show the country of origin of
the wine.
G.
The limitations on wine treatments in part 24 will
apply to imported wine on bonded wine premises. For
example, amelioration is permitted only at the bonded
wine premises where the wine is produced; if a natural
wine has been ameliorated, it may only be sweetened
by the winemaker who produced it; and wine spirits
may only be added to natural still wine in the same
State where it was produced by fermentation.
H.
Imported wine may be subjected to authorized treatments
or blended with other wine at the wine premises. However,
if wine is to be labeled as a product of another country,
it may only be subjected to treatments authorized
for taxpaid wine under 27 CFR 24.296(b) and to other
treatments only if such other treatments are permitted
for wine made in the country of origin.
I.
Imported wine is subject to tax at the rate prescribed
by 26 U.S.C. 5041(b) on its removal from the wine
premises for consumption or sale. Imported wine is
not eligible for small domestic producer's wine tax
credit provided for by 26 U.S.C. 5051(c). In the case
of blends of foreign and domestic wine, any small
domestic producer's wine tax credit will be computed
only on the domestic part of the blend. Imported wine
removed from the wine premises subject to tax will
not be counted in determining an eligible small producer's
first 100,000 gallons of wine removed from the premises
during a calendar year.
J.
Imported wine may be removed from bonded wine premises
free of tax or without payment of tax for any purpose
authorized by 26 U.S.C. 5362.
K.
Bulk imported wine which is taxpaid by the domestic
bonded wine premises proprietor is not eligible for
credit or refund of tax for any reason. The refund
and credit provisions of 26 U.S.C. 5044 are limited
to domestic wines. However, blends of imported and
domestic wines may be returned to bond, and credit
or refund of tax may be claimed for the domestic portion
of such blend. Imported wine and blends of domestic
and imported wine may be returned to taxpaid wine
premises for reconditioning.
L.
Imported wine packaged in the United States may be
exported with benefit of drawback under 26
U.S.C. 5062. Imported wine stored on bonded premises
may be removed without payment of tax for
export under 26 U.S.C. 5362. Exportation of imported
wine is subject to the same requirements as exportation
of domestic wine.
M.
Taxpayers are reminded that they must maintain adequate
records evidencing the appropriate tax payment or
entitlement to credit or refund for product returned
to bond. This information is needed in order to assure
that the different component products receive the
appropriate tax treatment. Adequate records as contemplated
by this paragraph include, for example, a statement
on the label or a commercial invoice accompanying
the shipment as follows: " __% Domestic and __% Foreign
wine, blended in internal revenue bond." (Specific
appellations of origin may be substituted for the
terms "domestic" and "foreign" where the wine so labeled
qualifies for such appellation under the FAA Act)
03.
Existing ATF policies concerning labeling of taxpaid
imported bulk wine will be applied to bulk wine imported
in bond. Any new questions which arise will be decided
on a case by case basis.
04.
Taxpayers are responsible for maintaining adequate
records evidencing the appropriate tax
payment or entitlement to credit or refund for product
returned to bond. Failure to comply with any of the
above conditions may result in the assessment of tax
on any wine transferred from customs custody to internal
revenue bond at the wine premises. Likewise, failure
to maintain adequate supporting records may result
in loss of varietal designation, appellation of origin,
or other label claims.
SEC
4. EFFECTIVE DATE.
This
procedure takes effect April 1, 1998 and will remain
in effect until revoked, superseded. This procedure
will be replaced by a temporary rule implementing
the provisions of 26 U.S.C. 5364 on its effective
date.
SEC
5. INQUIRIES.
Inquiries
concerning this procedure should refer to it by number
and be addressed to:
Regulations
Division,
Bureau of Alcohol, Tobacco and Firearms,
650 Massachusetts Avenue, NW
Washington DC, 20226
Telehone: (202) 927-8230
signed
by: Bradley Buckles 3/25/98