Ruling 68-467

Rev. Ruling 68-467

Advice has been requested whether, under the provisions of 27 U.S.C. 203(c) and 27 CFR 1.22, a wholesaler's basic permit would be required of a person, who holds a bottler's basic permit under Section 3(b) of the Federal Alcohol Administration Act, to cover the purchase of distilled spirits which he bottles and then sells to the trade.

27 U.S.C. 203(b) and (c) read in part as follows:

(b) It shall be unlawful, except pursuant to a basic permit issued under this Act by the Secretary of the Treasury-

(1) to engage in the business of distilling distilled spirits, producing wine, rectifying or blending distilled spirits or wine, or bottling, or warehousing and bottling, distilled spirits; or

(2) for any person so engaged to sell, offer or deliver for sale, contract for sell, or ship, in interstate or foreign commerce, directly or indirectly through an affiliate, distilled spirits or wine so distilled, produced, rectified, blended, or bottled or warehoused and bottled.

(1) to engage in the business of purchasing for resale at wholesale distilled spirits, wine, or malt beverage; or

(2) for any person so engaged to receive or to sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so
purchased.

It is held that a person engaging in the business of bottling distilled spirits, under permit, as required by Section 3(b) of the Act would not be required by Section 3(c) to obtain a wholesaler's basic permit, notwithstanding the fact that the distilled spirits thus bottled by him were purchased from others. However, if any such person sells, offers or delivers for sale, contracts to sell, or ships, in interstate or foreign commerce, distilled spirits produced and bottled by any other person, he would be required, by Section 3(c) of the Act, to obtain a wholesaler's basic permit.

27 U.S.C. 203; 27 CFR 1.22