Industry Circular

Number: 62-22
Date: June 12, 1962

Office of the Commissioner of Internal Revenue Alcohol and Tobacco Tax Division

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ANNOUNCING AMENDMENT OF STANDARDS OF FILL PROVISIONS OF REGULATIONS APPLICABLE TO DISTILLED SPIRITS, AND PROPOSED CHANGE IN ITS EFFECTIVE DATE.

Proprietors of Distilled Spirits Plants, Importers, and others concerned:

Purpose. The purpose of this Industry Circular is to inform importers of distilled spirits and bottlers of imported and domestic distilled spirits of the amendment of the standards of fill provisions of the distilled spirits labeling regulations and of a proposed change in the effective date of that amendment.

Background. Prior to the amendment, the regulations limited the use of 4/5 pint containers to the packaging of Scotch Whisky, Irish Whisky, Brandy, and Rum. (Standards of fill are not applicable to cordials, liqueurs, highballs, bitters, and other specialties.) Amended Regulation. The standards of fill for distilled spirits (27 CFR Part 5) have been amended by Treasury Decision 6601 (approved May 29, 1962, and published in the Federal Register on June 5, 1962; 27 F.R. 5259) to authorize the use of the 4/5 pint bottle for the packaging of all classes and types of distilled spirits.

Postponement of Effective Date. Treasury decision 6601, as published in the Federal Register on June 5, 1962, was made effective 30 days after publication. The Director, Alcohol and Tobacco Tax Division, having been advised that the industry is not equipped with molds, glass, and supplies to permit uniform use of the 4/5 pint by all members of the industry upon the effective date of July 5, 1962, and taking cognizance of the fact that in a number of states substantial advance notice is required to be given by industry in relation to the posting of prices (a factor to be considered in connection with the introduction of a new size of container), has determined to recommend to the Treasury Department a postponement of the effective date of the Treasury decision to September 1, 1962.

Application of Effective Date Provisions to Importers.

With respect to the classes and types of distilled spirits for which the 4/5 pint bottle was not authorized prior to the effective date of T.D. 6601 it should be observed that any withdrawals prior to that effective date from U. S. Customs bond of such distilled spirits in bottles of 4/5 pint capacity would be in violation of the Federal Alcohol Administration Act and of the terms and conditions of the Importer's Basic Permit.

Application of Effective Date Provisions to Domestic Bottlers.

It has been administratively determined that as to the new bottle size, the regulations in 26 CFR Part 201, will be interpreted, in conformance with the intent of Treasury decision 6601, to permit the use of the 4/5 pint bottle for the bottling of distilled spirits prior to the effective date of that Treasury decision. However, any removals of such filled 4/5 pint bottles from the distilled spirits plants where filled (or from storage premises in the immediate vicinity operated in connection with the plant), prior to the effective date of the Treasury decision will not be permitted since this would be in violation of the Federal Alcohol Administration Act and of the terms and conditions of the bottler's basic permit.

Restriction as to Use of 4/5 Pint Bottles for Bottling in Bond.

Section 201.328, relating to the use of liquor bottles for the bottling of spirits in bond, does not now authorize the use of the 4/5 pint bottle. An amendment of this regulation to permit the use of the 4/5 pint bottle, to conform with the provisions of 27 CFR Part 5, amended by Treasury Decision 6601, is being proposed. Until such time as the proposed amendment has been approved, 4/5 pint bottles may not be used for the bottling-in-bond of distilled spirits. Since 4/5 pint strip stamps are not now available it is proposed, as an interim procedure, to authorize the over-printing of 1 pint bottled-in-bond stamps for use on 4/5 pints.

Inquiries. Correspondence in regard to this Industry Circular should refer to its number and be addressed to the Director, Alcohol and Tobacco Tax Division (CP:AT:B), Washington 25, D. C.

Harold A. Serr
Acting Director, Alcohol and Tobacco Tax Division