NONBEVERAGE DRAWBACK FORMULAS AND PRODUCTS
Manufacturers of Nonbeverage Products,
and Others Concerned:
Purpose. This circular is issued to remind manufacturers
of nonbeverage products that claims for drawback of taxes paid
on distilled spirits used in the manufacture of nonbeverage
products will not be allowed unless those products are manu-
factured in strict accordance with approved formulas. Manufac-
turers of nonbeverage products are also advised that, effective
with the publication of this circular, any future amendment,
revision, or restatement of a nonbeverage product formula on
file with this Bureau will require the submission of Form 1678,
Formula and Process for Nonbeverage Product, bearing a new
formula number.
Background. The Bureau of Alcohol, Tobacco and Firearms
has, on occasion, permitted changes to be made to Forms 1678
by rider, without requiring a change in the original formula
number. However, it has been found that riders and amendments
to nonbeverage drawback formulas complicate ATF claims inspec-
tion procedures. Moreover, it has been found that some manu-
facturers have used certain substitute coloring and flavoring
materials in their products in lieu of those called for by their
approved formulas. ATF has, therefore, decided to adhere, with-
out exception, to that provision of 27 CFR 197.95 which states
that "Amended or revised formulas will be considered as new
formulas and serially numbered accordingly."
Conclusions. Manufacturers of nonbeverage products are
required to file a new formula, bearing a new serial number,
in order to effect any amendment, revision, or restatement of
an approved formula, on Form 1678. Unless a manufacturer is
otherwise notified, however, new Forms 1678 need not be sub-
mitted to perfect those formulas for which amendments or revi-
sions have been approved prior to the date of this circular.
However, it is suggested that such formulas be reviewed to
determine if they might create problems related to the subject
of this circular.
Claims for drawback of taxes paid on distilled spirits
used in nonbeverage products will not be approved where it
is found that the products were not manufactured in strict
accordance with the approved formula or, for formulas
approved prior to the date of this circular, with the
latest revision of the approved formula.
Inquiries. Inquiries concerning this circular 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,
D. C. 20226.
Rex D. Davis
Director |