Home.Industrial.Requirements for establishing an alcohol fuel plant (AFP)
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These regulations and those pertaining to the production of alcohol fuel can be found in part 19, subpart X, of Title 27 of the Code of Federal Regulations (27 CFR part 19, subpart X). For the complete and regularly updated set of regulations please visit the CFR online.
TTB's statutory authority to regulate AFPs.
TTB has been delegated authority under 26 U.S.C. Chapter 51 of the Internal Revenue Code of 1986 (IRC ) to promulgate regulations pertaining to AFPs. The statutory provisions under which TTB promulgates such regulations includes Section 5181 of the IRC (26 U.S.C. 5181). Section 5181 of the IRC provides for the establishment of AFPs to produce, process, store, and use or distribute distilled spirits to be used exclusively for fuel use. Â Â Â
An AFP is a type of distilled spirits plant that is qualified under 27 CFR part 19, subpart X, solely for producing, processing, and storing, and using or distributing distilled spirits to be used exclusively for fuel use.
Application requirement for an AFP permit.
As provided in 27Â CFRÂ 19.673, 19.675, and 19.676, a person wishing to establish an AFP can apply for an alcohol fuel producer's permit on TTBÂ FÂ 5110.74. Two copies of the application should be sent to the TTB National Revenue Center. The address is:
Alcohol and Tobacco Tax and Trade Bureau
National Revenue Center
550 Main Street, Suite 8002
Cincinnati, Ohio 45202
TTB has promulgated regulations creating definitions and varying application and bond requirements for small, medium, and large AFPs. The definitions for small, medium, and large AFPs are set forth in 27Â CFRÂ 19.662. They are:
Application, power of attorney, and corporate and LLC officials requirements for small AFPs.
Application. In accordance with §Â 19.673 , an application for a small AFP permit must be made on TTB F 5110.74 . The application should be mailed to the address listed above.  The application must provide the following information:Â
Power of attorney. The proprietor of a small AFP shall execute and file TTB F 5000.8, Powers of Attorney, for each person authorized to sign or act on behalf of the proprietor. This form is not required for persons whose authority is furnished in the application. TTB F 5000.8 should be mailed to the TTB National Revenue Center at the address listed above.   Â
Corporate and LLC Officials. The proprietor of a small AFP organized as a corporation or limited liability company shall execute and file TTB F 5100.1 , Signing Authority for Corporate and LLC Officials, for each person authorized to sign or act on behalf of the proprietor. TTB F 5100.1 should be mailed to the TTB National Revenue Center at the address listed above.   Â
Bond. The applicant is not required to provide a bond in order to establish a small plant, unless the applicant will not conduct bona fide production operations. Plants for the receipt of spirits without production must furnish a bond in accordance with 27Â CFRÂ 19.699 with a penal sum as prescribed in 27Â CFRÂ 19.700. The appropriate TTB officer must approve the bond before issuance of the perm
Application, power of attorney, corporate and LLC officials, and bond requirement for medium AFPs.
Application. In accordance with §Â 19.675 , an application for a medium AFP permit must be made on TTB F 5110.74 . The application should be mailed to the address listed above. The application must provide the following information:Â
Power of attorney. The proprietor of a medium AFP shall execute and file TTB F 5000.8 , Powers of Attorney, for each person authorized to sign or act on behalf of the proprietor. This form is not required for persons whose authority is furnished in the application. TTB F 5000.8 should be mailed to the TTB National Revenue Center at the address listed above.   Â
Corporate and LLC Officials. The proprietor of a medium AFP organized as a corporation or limited liability company shall execute and file TTB F 5100.1, Signing Authority for Corporate and LLC Officials, for each person authorized to sign or act on behalf of the proprietor. TTB F 5100.1 should be mailed to the TTB National Revenue Center at the address listed above.   Â
Bond. In accordance with §§ 19.675 and 19.699 , a bond of sufficient sum, as prescribed in §Â 19.700 , is required for medium AFPs. The bond must be filed on TTB F 5110.56 and can be submitted with the application. The bond must be submitted before a permit is issued.
A bond shall be conditioned on payment of all taxes (including any penalties and interest) imposed by 26 U.S.C. Chapter 51, on compliance with all requirements of law and regulations, and on payment of all penalties incurred or fines imposed for violations of any such provisions.Â
In accordance with §Â 19.699 , the applicable provisions pertaining to bonds in 27 CFR part 19, Subpart F , are applicable to bonds of AFPs.
Application, supporting information requirements, power of attorney, corporate and LLC officials, and bond for large AFPs.
Application. In accordance with 27 CFR 19.676, an application for a large AFP permit must be made on TTB F 5110.74. The application should be mailed to the address listed above. Â The application must provide the following information:Â
Supporting information. In accordance with §Â 19.677, the supporting information required by §Â 19.676, includes, as applicable, copies of—
Power of attorney. In accordance with §Â 19.676 the proprietor of a large AFP shall execute and file TTB F 5000.8 , Powers of Attorney, for each person authorized to sign or act on behalf of the proprietor. This form is not required for persons whose authority is furnished in the application. TTB F 5000.8 should be mailed to the TTB National Revenue Center at the address listed above.    Â
Corporate and LLC Officials. The proprietor of a large AFP organized as a corporation or limited liability company shall execute and file TTB F 5100.1, Signing Authority for Corporate and LLC Officials, for each person authorized to sign or act on behalf of the proprietor. TTB F 5100.1 should be mailed to the TTB National Revenue Center at the address listed above.   Â
Bond. In accordance with §§Â 19.676 and 19.699, a bond of sufficient sum, as prescribed in §Â 19.700, is required for large plants. The bond must be filed on TTB F 5110.56 and can be submitted with the application. The bond must be submitted before a permit is issued.  Â
In accordance with §Â 19.699, the applicable provisions pertaining to bonds in 27 CFR part 19, Subpart F, are applicable to bonds of AFPs.
In accordance with 27 CFR 19.680 , the description of stills on the approved alcohol fuel producer's permit (TTB F 5110.74 ) application constitutes registration of stills. A change in type or location of a still constitutes amendment of the permit. Permits can be amended on TTB F 5110.74 .
The TTB regulations at 27 CFR 19.679 provide that an AFP permit is continuing unless automatically terminated under 27 CFR 19.684, suspended or revoked as provided in 27Â CFRÂ 19.697, or voluntarily surrendered.
In accordance with §Â 19.684, automatic termination of an AFP permit occurs when the lease, sale, or other transfer of business operations are transferred. In the case of a corporation holding a permit under 27 CFR part 19, subpart X, if actual or legal control of the permittee corporation changes, directly or indirectly, whether by reason of change in stock ownership or control (in the permittee corporation or in any other corporation), by operation of law, or in any other manner, the permit may remain in effect until the expiration of 30 days after the change, whereupon the permit will automatically terminate. However, if operations are to be continued after the change in control, and an application for a new permit is filed within 30 days of the change, then the outstanding permit may remain in effect until final action is taken on the new application. When final action is taken on the application, the outstanding permit automatically terminates.
In accordance with §Â 19.697, the Deputy Assistant Administrator for TTB Field Operations has the authority to revoke or suspend an AFP permit if he/she has reason to believe that the proprietor:
The Director, TTB National Revenue Center has the authority to revoke or suspend an AFP permit if he/she has reason to believe that the proprietor:
TTB G: 2011-2
OPR: RRD
April 7, 2011