3/3/2014

eCFR Code of Federal Regulations

ELECTRONICCODEOFFEDERALREGULATIONS eCFRDataiscurrentasofFebruary27,2014
Title27:Alcohol,TobaccoandFirearms PART1BASICPERMITREQUIREMENTSUNDERTHEFEDERALALCOHOL ADMINISTRATIONACT,NONINDUSTRIALUSEOFDISTILLEDSPIRITSANDWINE,BULK SALESANDBOTTLINGOFDISTILLEDSPIRITS Contents SubpartAScope 1.1General. 1.2Territorialextent. 1.3Formsprescribed. 1.4DelegationsoftheAdministrator. SubpartBDefinitions 1.10Meaningofterms. SubpartCBasicPermits WHENREQUIRED 1.20Importers. 1.21Domesticproducers,rectifiers,blenders,andwarehousemen. 1.22Wholesalers. 1.23Stateagencies. PERSONSENTITLEDTOBASICPERMITS 1.24Qualificationsofapplicants. APPLICATIONSFORPERMITS 1.25General. 1.26Incompleteorincorrectlyexecutedapplications. 1.27Changeinownership,management,orcontroloftheapplicant. 1.29Individualplantorpremises. 1.30PowerofattorneyForm5000.8(1534). 1.31Denialofpermitapplications. AUTHORIZATION 1.35Authoritytoissue,amend,deny,suspend,revoke,orannulbasicpermits. AMENDMENTANDDURATIONOFBASICPERMITS 1.40Changeofname.
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 1/14

3/3/2014

eCFR Code of Federal Regulations

1.41Changeofaddress. 1.42Changeinownership,management,orcontrolofbusiness. 1.43Durationofpermits. 1.44Automaticterminationofpermits. REVOCATION,SUSPENSION,ORANNULMENTOFBASICPERMITS 1.50Revocationorsuspension. 1.51Annulment. 1.52Dispositionofstocksofalcoholicbeveragesuponrevocation,annulment,orautomatic terminationofbasicpermit. MISCELLANEOUS 1.55Recallingpermitsforcorrection. 1.56Oathsandaffirmations. 1.57Procedure. 1.58Filingofpermits. 1.59Publicinformationastoapplicationsactedupon. SubpartDNonindustrialUseofDistilledSpiritsandWine USESREGARDEDASINDUSTRIAL 1.60Useofdistilledspirits. 1.61Useofwine. 1.62Useofdistilledspiritsorwineforexperimentalpurposesandinmanufactureofnonbeverage products. USESCLASSEDASNONINDUSTRIAL 1.70General. 1.71Distilledspiritsincontainersofacapacityofonegallonorless. SubpartEBulkSalesandBottlingofDistilledSpirits BULKSALESANDBOTTLING 1.80Salesofdistilledspiritsinbulk. 1.81Importationofdistilledspiritsinbulk. 1.82Acquiringorreceivingdistilledspiritsinbulkforredistillation,processing,rectification, warehousing,orwarehousingandbottling. 1.83Acquiringorreceivingdistilledspiritsinbulkforadditiontowine. 1.84AcquisitionofdistilledspiritsinbulkbyGovernmentagencies. WAREHOUSERECEIPTS 1.90Distilledspiritsinbulk. 1.91Bottleddistilledspirits. SALESOFDISTILLEDSPIRITSFORINDUSTRIALUSE 1.95General.
AUTHORITY:27U.S.C.203,204,206,211unlessotherwisenoted. SOURCE:T.D.ATF373,61FR26098,May24,1996,unlessotherwisenoted. EDITORIALNOTE:Nomenclaturechangestopart1appearbyT.D.ATF463,66FR42733,Aug.15,2001.
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 2/14

3/3/2014

eCFR Code of Federal Regulations

BacktoTop

SubpartAScope
BacktoTop 1.1General. (a)Theregulationsinthispartrelatetorequirementsgoverningtheissuance,amendment,denial, revocation,suspension,automatictermination,andannulmentofbasicpermitsandthedurationof permits,exceptthattheprovisionsofpart71,RulesofPracticeinPermitProceedings,ofthischapter areherebymadeapplicabletoadministrativeproceedingswithrespecttotheapplicationfor,andtothe suspension,revocation,orannulmentof,basicpermitsundertheFederalAlcoholAdministrationAct. (b)Theregulationsinthispartalsospecifywhatusesofdistilledspiritsandwineare nonindustrial,asthattermisusedinsection117oftheFederalAlcoholAdministrationAct(27U.S.C. 211).Finally,thispart,inaccordancewithsection106oftheFederalAlcoholAdministrationAct(27 U.S.C.206),containsthesubstantiverequirementsrelativetobulksalesandbottlingofdistilledspirits undertheFederalAlcoholAdministrationAct,includingthetermsofwarehousereceiptsfordistilled spiritsinbulk.Noproceduralrequirementsareprescribed. BacktoTop 1.2Territorialextent. TheprovisionsofthispartareapplicabletotheseveralStatesoftheUnitedStates,theDistrictof ColumbiaandPuertoRico. BacktoTop 1.3Formsprescribed. (a)TheappropriateTTBofficerisauthorizedtoprescribeallformsrequiredbythispart.Allofthe informationcalledforineachformshallbefurnishedasindicatedbytheheadingsontheformandthe instructionsonorpertainingtotheform.Inaddition,informationcalledforineachformshallbe furnishedasrequiredbythispart.Theformwillbefiledinaccordancewiththeinstructionsfortheform. (b)FormsprescribedbythispartareavailableforprintingthroughtheTTBWebsite (http://www.ttb.gov )orbymailingarequesttotheAlcoholandTobaccoTaxandTradeBureau, NationalRevenueCenter,550MainStreet,Room1516,Cincinnati,OH45202.
[T.D.ATF373,61FR26098,May24,1996,asamendedbyT.D.ATF416,64FR49985,Sept.15,1999T.D. TTB44,71FR16920,Apr.4,2006]

BacktoTop 1.4DelegationsoftheAdministrator. MostoftheregulatoryauthoritiesoftheAdministratorcontainedinthispartaredelegatedto appropriateTTBofficers.TheseTTBofficersarespecifiedinTTBOrder1135.1,Delegationofthe Administrator'sAuthoritiesin27CFRPart1,BasicPermitRequirementsUndertheFederalAlcohol AdministrationAct,NonindustrialUseofDistilledSpiritsandWine,BulkSalesandBottlingofDistilled Spirits.YoumayobtainacopyofthisorderbyaccessingtheTTBWebsite(http://www.ttb.gov )orby mailingarequesttotheAlcoholandTobaccoTaxandTradeBureau,NationalRevenueCenter,550 MainStreet,Room1516,Cincinnati,OH45202.
[T.D.TTB44,71FR16920,Apr.4,2006]
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 3/14

3/3/2014

eCFR Code of Federal Regulations

BacktoTop

SubpartBDefinitions
BacktoTop 1.10Meaningofterms. Asusedinthispart,unlessthecontextotherwiserequires,termsshallhavethemeaningascribed inthispart. Act.TheFederalAlcoholAdministrationAct. Administrator.TheAdministrator,AlcoholandTobaccoTaxandTradeBureau,Departmentofthe Treasury,Washington,DC. Alcohol.Ethylalcoholdistilledatorabove190proof. Applicant.AnypersonwhohasfiledanapplicationforabasicpermitundertheFederalAlcohol AdministrationActwiththeappropriateTTBofficer. AppropriateTTBofficer.AnofficeroremployeeoftheAlcoholandTobaccoTaxandTradeBureau (TTB)authorizedtoperformanyfunctionsrelatingtotheadministrationorenforcementofthispartby TTBOrder1135.1,DelegationoftheAdministrator'sAuthoritiesin27CFRPart1,BasicPermit RequirementsUndertheFederalAlcoholAdministrationAct,NonindustrialUseofDistilledSpiritsand Wine,BulkSalesandBottlingofDistilledSpirits. Basicpermit.AdocumentissuedundertheActauthorizingapersontoengageinactivitiesata particularlocation. Brandy.Brandyorwinespiritsforadditiontowinesaspermittedbyinternalrevenuelaw. Distilledspirits.Section117(a)oftheFederalAlcoholAdministrationAct(27U.S.C.211(a)) definesdistilledspiritsasethylalcohol,hydratedoxideofethyl,spiritsofwine,whiskey,rum,brandy, gin,andotherdistilledspirits,includingalldilutionsandmixturesthereoffornonindustrialuse. Inbulk.Distilledspiritsincontainershavingacapacityinexcessofonewinegallon. Otherterm.AnyothertermdefinedintheFederalAlcoholAdministrationActandusedinthispart shallhavethesamemeaningassignedtoitbytheAct. Permittee.AnypersonholdingabasicpermitissuedundertheFederalAlcoholAdministrationAct. Person.Anyindividual,partnership,jointstockcompany,businesstrust,association,corporation, orotherformofbusinessenterprise,includingareceiver,trustee,orliquidatingagent. Resaleatwholesale.Asaletoanytradebuyer. Tradebuyer.Anypersonwhoisawholesalerorretailerofdistilledspirits,wine,ormalt beverages. Wine.Section117(a)oftheFederalAlcoholAdministrationAct(27U.S.C.211(a))defineswine asanyofthefollowingproductsfornonindustrialusethatcontainnotlessthan7percentandnotmore than24percentalcoholbyvolume: (1)Wineasdefinedinsection610andsection617oftheRevenueActof1918(26U.S.C.5381 5392)and
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 4/14

3/3/2014

eCFR Code of Federal Regulations

(2)Otheralcoholicbeveragesnotsodefined,butmadeinthemannerofwine,includingsparkling andcarbonatedwine,winemadefromcondensedgrapemust,winemadefromotheragricultural productsthanthejuiceofsound,ripegrapes,imitationwine,compoundssoldaswine,vermouth,cider, perry,andsake. Winegallon.Theliquidmeasureequivalenttothevolumeof231cubicinches.

[T.D.ATF373,61FR26098,May24,1996.RedesignatedandamendedbyT.D.ATF416,64FR49985,Sept.15, 1999T.D.TTB44,71FR16920,Apr.4,2006T.D.TTB91,76FR5476,Feb.1,2011]

BacktoTop

SubpartCBasicPermits
EDITORIALNOTE:NomenclaturechangestosubpartCofpart1appearbyT.D.ATF416,64FR49985,Sept. 15,1999.

BacktoTop

WHENREQUIRED
BacktoTop 1.20Importers. Noperson,exceptpursuanttoabasicpermitissuedundertheAct,shall: (a)EngageinthebusinessofimportingintotheUnitedStatesdistilledspirits,wine,ormalt beveragesor (b)Whilesoengaged,sell,offerordeliverforsale,contracttosell,orship,ininterstateorforeign commerce,directlyorindirectlyorthroughanaffiliate,distilledspirits,wine,ormaltbeveragesso imported. BacktoTop 1.21Domesticproducers,rectifiers,blenders,andwarehousemen. Noperson,exceptpursuanttoabasicpermitissuedundertheAct,shall: (a)Engageinthebusinessofdistillingdistilledspirits,producingwine,rectifyingorblending distilledspiritsorwine,orbottling,orwarehousingandbottling,distilledspiritsor (b)Whilesoengaged,sell,offerordeliverforsale,contracttosell,orship,ininterstateorforeign commerce,directlyorindirectlyorthroughanaffiliate,distilledspiritsorwinesodistilled,produced, rectified,blended,orbottled,orwarehousedandbottled. BacktoTop 1.22Wholesalers. Noperson,exceptpursuanttoabasicpermitissuedundertheAct,shall: (a)Engageinthebusinessofpurchasingforresaleatwholesale,distilledspirits,wine,ormalt beveragesor, (b)Whilesoengaged,receive,sell,offerordeliverforsale,contracttosell,orshipininterstateor foreigncommerce,directlyorindirectlyorthroughanaffiliate,distilledspirits,wine,ormaltbeverages
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 5/14

3/3/2014

eCFR Code of Federal Regulations

sopurchased. BacktoTop 1.23Stateagencies. ThissubpartshallnotapplytoanyagencyofaStateorpoliticalsubdivisionthereofortoany officeroremployeeofanysuchagency,andnosuchagencyorofficeroremployeethereofshallbe requiredtoobtainabasicpermitunderthissubpart. BacktoTop

PERSONSENTITLEDTOBASICPERMITS
BacktoTop 1.24Qualificationsofapplicants. TheapplicationofanypersonshallbegrantedandthepermitissuedbytheappropriateTTB officeriftheapplicantprovestothesatisfactionoftheappropriateTTBofficerthat: (a)Suchperson(orincaseofacorporation,anyofitsofficers,directors,orprincipal stockholders)hasnot,within5yearspriortothedateofapplication,beenconvictedofafelonyunder FederalorStatelaw,andhasnot,within3yearspriortodateofapplication,beenconvictedofa misdemeanorunderanyFederallawrelatingtoliquor,includingthetaxationthereofand (b)Suchperson,byreasonoftheperson'sbusinessexperience,financialstandingortrade connections,islikelytocommenceoperationsasadistiller,warehousemanandbottler,rectifier,wine producer,wineblender,importer,orwholesaler,asthecasemaybe,withinareasonableperiodandto maintainsuchoperationsinconformitywithFederallawand (c)Theoperationsproposedtobeconductedbysuchpersonarenotinviolationofthelawofthe Stateinwhichtheyaretobeconducted. BacktoTop

APPLICATIONSFORPERMITS
BacktoTop 1.25General. Applicationsforbasicpermitstoengageinanyoftheoperationssetforthin1.20to1.22must bemadeonTTBForm5100.24,or5100.18,verifiedasrequiredby1.56,andwillbeaccompaniedby suchaffidavits,documents,andothersupportingdata,astheappropriateTTBofficermayrequire.The applicationwillincludealldata,writtenstatements,affidavits,documents,orotherevidencesubmitted insupportoftheapplication,oruponahearing.
[T.D.ATF416,64FR49985,Sept.15,1999T.D.ATF416a,64FR54776,Oct.8,1999]

BacktoTop 1.26Incompleteorincorrectlyexecutedapplications. Incompleteorincorrectlyexecutedapplicationswillnotbeactedupon,buttheapplicantshallbe entitledtofileanewapplicationwithoutprejudice,ortocompletetheapplicationalreadyfiled. BacktoTop

http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 6/14

3/3/2014

eCFR Code of Federal Regulations

1.27Changeinownership,management,orcontroloftheapplicant. Intheeventofanychangeintheownership,management,orcontroloftheapplicant(incaseofa corporation,anychangeintheofficers,directors,orpersonsholdingmorethan10percentofthe corporatestock),afterthedateoffilingofanyapplicationforabasicpermitandpriortofinalactionon suchapplication,theapplicantshallnotifytheappropriateTTBofficerimmediatelyofsuchchange. BacktoTop 1.29Individualplantorpremises. Anapplicationforabasicpermitmustbefiled,andpermitissued,tocovereachindividualplantor premiseswhereanyofthebusinessesspecifiedinsection103oftheActisengagedin.

[T.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop 1.30PowerofattorneyForm5000.8(1534). Iftheapplicationandotherdocumentsinsupportofsuchapplicationaresignedbyanattorneyin factofanindividual,partnership,association,orcorporation,orbyoneofthemembersofa copartnershiporassociation,or,inthecaseofacorporationbyanofficerorotherpersonnot authorizedbythecorporation'sbylawsorbyitsboardofdirectorstosignsuchapplicationsand supportingdocuments,theapplicationsmustbesupportedbyadulyauthenticatedcopyofthepower ofattorneyconferringauthorityuponthepersonsigningthedocumentstoexecutethesame.Such powersofattorneywillbeexecutedonForm5000.8(1534).

(ApprovedbytheOfficeofManagementandBudgetundercontrolnumber15120079) [T.D.ATF373,61FR26098,May24,1996,asamendedbyT.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop 1.31Denialofpermitapplications. If,uponexaminationofanyapplicationforabasicpermit,theappropriateTTBofficerhasreason tobelievethattheapplicantisnotentitledtosuchapermit,theappropriateTTBofficershallinstitute proceedingsforthedenialoftheapplicationinaccordancewiththeproceduresetforthinpart71ofthis chapter. BacktoTop

AUTHORIZATION
BacktoTop 1.35Authoritytoissue,amend,deny,suspend,revoke,orannulbasicpermits. Theauthorityandpowerofissuing,amending,ordenyingbasicpermits,oramendmentsthereof, isconferredupontheappropriateTTBofficerexceptastoagencyinitiatedcurtailment.The Administrator,uponconsiderationofappealsonpetitionsforreviewinpart71ofthischapter,may ordertheappropriateTTBofficertoissue,deny,suspend,revoke,orannulbasicpermits.
[T.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 7/14

3/3/2014

eCFR Code of Federal Regulations

AMENDMENTANDDURATIONOFBASICPERMITS
BacktoTop 1.40Changeofname. Intheeventofanychangeinthename(tradeorcorporatename)ofapermittee,or,intheeventa permitteedesirestoengageinoperationsunderanadditionaltradename,suchpermitteemustfile applicationForm5100.18foranamendedbasicpermit,whichapplicationmustbeapproved,and amendedpermitissued,beforeoperationsmaybecommencedunderthenewname.
(ApprovedbytheOfficeofManagementandBudgetundercontrolnumber15120090) [T.D.ATF373,61FR26098,May24,1996,asamendedbyT.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop 1.41Changeofaddress. IntheeventofachangeinaddressthepermitteemustfileapplicationForm5100.18foran amendedbasicpermit.

[T.D.ATF373,61FR26098,May24,1996,asamendedbyT.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop 1.42Changeinownership,management,orcontrolofbusiness. Intheeventofanychangeintheownership,management,orcontrolofanybusinessoperated pursuanttoabasicpermit(ifthepermitteeisacorporation,ifanychangeoccursintheofficers, directors,orpersonsowningorcontrollingmorethan10percentofthevotingstockofsaidcorporation) thepermitteeshallimmediatelynotifytheappropriateTTBofficerofsuchchange,givingthenamesand addressesofallnewpersonsparticipatingintheownership,management,orcontrolofsuchbusiness, orinthecaseofacorporation,thenamesandaddressesofsuchnewofficers,directors,orpersons owningorcontrollingmorethan10percentofthevotingstock.NoticetotheappropriateTTBofficerof anysuchchangeshallbeaccompaniedorsupplementedbysuchdatainreferencetothepersonalor businesshistoryofsuchpersonsastheappropriateTTBofficermayrequire. BacktoTop 1.43Durationofpermits. Abasicpermitshallcontinueineffectuntilsuspended,revoked,annulled,voluntarilysurrendered, orautomaticallyterminated,asprovidedintheActandinthispart. BacktoTop 1.44Automaticterminationofpermits. Nobasicpermitshallbeleased,sold,orotherwisevoluntarilytransferred,and,intheeventof suchlease,sale,orothervoluntarytransfer,suchbasicpermitshallautomaticallyterminatethereupon. Ifanybasicpermitistransferredbyoperationoflaworifactualorlegalcontrolofthepermitteeis acquired,directlyorindirectlywhetherbystockownershiporinanyothermanner,byanyperson,then suchpermitshallbeautomaticallyterminatedattheexpirationof30daysthereafter:Provided,Thatif withinsuch30dayperiodapplicationforanewbasicpermitismadebythetransfereeorpermittee, respectively,thentheoutstandingbasicpermitshallcontinueineffectuntilsuchtimeastheapplication isfinallyactedupon.
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 8/14

3/3/2014

eCFR Code of Federal Regulations

BacktoTop

REVOCATION,SUSPENSION,ORANNULMENTOFBASICPERMITS
BacktoTop 1.50Revocationorsuspension. WhenevertheappropriateTTBofficerhasreasontobelievethatanypermitteehaswillfully violatedanyoftheconditionsofthepermittee'sbasicpermitorhasnotengagedintheoperations authorizedbythepermitforaperiodofmorethantwoyears,theappropriateTTBofficershallinstitute proceedingsfortherevocationorsuspensionofsuchpermit,inaccordancewiththeprocedureset forthinpart71ofthischapter,whichpartismadeapplicabletosuchproceedings. BacktoTop 1.51Annulment. WhenevertheappropriateTTBofficerhasreasontobelievethatanybasicpermitwasprocured throughfraud,ormisrepresentationorconcealmentofmaterialfact,theappropriateTTBofficershall instituteproceedingsfortheannulmentofsuchpermitinaccordancewiththeproceduresetforthin part71ofthischapter,whichpartismadeapplicabletosuchproceedings. BacktoTop 1.52Dispositionofstocksofalcoholicbeveragesuponrevocation,annulment,orautomatic terminationofbasicpermit. Intheeventoftherevocationorannulmentofabasicpermit,pursuanttopart71ofthischapter,or intheeventsuchpermitisautomaticallyterminatedbyoperationoflaw(27U.S.C.204(g)and1.44of thispart),theappropriateTTBofficermayauthorizetheorderlydispositionofstocksofdistilledspirits, wines,ormaltbeveragesthenheldbythepermitteeorformerpermitteeuponsuchconditionsasmay beconsideredproper. BacktoTop

MISCELLANEOUS
BacktoTop 1.55Recallingpermitsforcorrection. Wheneveritshallbediscoveredthatanybasicpermithasbeenissuedauthorizingacts,or combinationsofacts,whichmaynotproperly,underthelawandregulations,asofnoworhereafterin force,beauthorized,orthatanymaterialmistakehasoccurredintheissuancethereof,theholderof suchpermitshallforthwithsurrenderthesameforcorrectionoramendmentupondemandofthe appropriateTTBofficer. BacktoTop 1.56Oathsandaffirmations. Adocumentmustbeverifiedbyanoathoraffirmationtakenbeforeapersonauthorizedbythe lawsoftheUnitedStatesorbyStateorlocallawtoadministeroathsoraffirmationsinthejurisdiction wherethedocumentisexecutedwhenrequiredby: (a)Regulationor
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 9/14

3/3/2014

eCFR Code of Federal Regulations

(b)AnappropriateTTBofficer.
[T.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop 1.57Procedure. Theproceduresprescribedbytherulesofpracticeinpermitproceedings(part71ofthischapter) areapplicabletoadministrativeproceedingsfortheissuance,amendment,denial,revocation, suspension,orannulmentofbasicpermits,theissuanceofsubpoenasandthetakingofdepositions undertheAct. BacktoTop 1.58Filingofpermits. Everypersonreceivingabasicpermitundertheprovisionsofthispartmustfilethesame,atthe placeofbusinesscoveredbythebasicpermit,sothatitmaybeexaminedbyappropriateTTBofficers.
[T.D.ATF373,61FR26098,May24,1996,asamendedbyT.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop 1.59Publicinformationastoapplicationsactedupon. TheappropriateTTBofficershallcausetobemaintainedcurrentlyintheappropriateTTBofficer's officeforpublicinspection,untiltheexpirationofoneyearfollowingfinalactionontheapplication,the followinginformationwithrespecttoeachapplicationforbasicpermitfiled: (a)Thename,includingtradenameornames,ifany,andtheaddressoftheapplicantthekindof permitappliedforandthelocationofthebusinesswhethertheapplicantisanindividual,apartnership oracorporationifapartnership,thenameandaddressofeachpartnerifacorporation,thenameand addressofeachoftheprincipalofficersandofeachstockholderowning10percentormoreofthe corporatestock. (b)Thetimeandplacesetforanyhearingontheapplication. (c)Thefinalactiontakenontheapplication.Intheeventahearingishelduponanapplicationfora basicpermit,theappropriateTTBofficershallmakeavailableforinspectionattheappropriateTTB officer'soffice,uponrequesttherefor:Thetranscriptofthehearing,acopyoftheadministrativelaw judge'srecommendeddecision,acopyoftheappropriateTTBofficer'sdecisionand,intheeventofan appealtotheAdministrator,thedecisiononappealwiththereasonsgiveninsupportthereof.
[T.D.ATF373,61FR26098,May24,1996,asamendedbyT.D.ATF416,64FR49985,Sept.15,1999]

BacktoTop

SubpartDNonindustrialUseofDistilledSpiritsandWine
BacktoTop

USESREGARDEDASINDUSTRIAL
BacktoTop 1.60Useofdistilledspirits.
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 10/14

3/3/2014

eCFR Code of Federal Regulations

Thefollowingusesofdistilledspiritsareregardedasindustrialandwillbeexcludedfromany applicationofthetermnonindustrialuse.Theuseofdistilledspirits: (a)Freeoftaxby,andfortheuseof,theUnitedStatesoranygovernmentalagencythereof,any State,anypoliticalsubdivisionofaState,ortheDistrictofColumbia,fornonbeveragepurposesor (b)Freeoftaxfornonbeveragepurposesandnotforresaleoruseinthemanufactureofany productforsale: (1)Fortheuseofanyeducationalorganizationdescribedin26U.S.C.170(b)(1)(A)(ii)whichis exemptfromincometaxunder26U.S.C.501(a),orfortheuseofanyscientificuniversityorcollegeof learning (2)Foranylaboratoryforuseexclusivelyinscientificresearch (3)Foruseatanyhospital,bloodbank,orsanitarium(includinguseinmakinganalysisortestat suchhospital,bloodbank,orsanitarium),oratanypathologicallaboratoryexclusivelyengagedin makinganalyses,ortests,forhospitalsorsanitariumsor (4)Fortheuseofanyclinicoperatedforcharityandnotforprofit(includinguseincompoundingof bonafidemedicinesfortreatmentoutsideofsuchclinicsofpatientsthereof)or (c)Freeoftax,afterdenaturationofsuchspiritsinthemannerprescribedbylawfor: (1)Useinthemanufactureofether,chloroform,orotherdefinitechemicalsubstancewheresuch distilledspiritsarechangedintosomeotherchemicalsubstanceanddonotappearinthefinished productor (2)Anyotheruseintheartsandindustries(exceptforusesprohibitedby26U.S.C.5273(b)or (d))andforfuel,light,andpower. BacktoTop 1.61Useofwine. Thefollowingusesofwineareregardedasindustrialandwillbeexcludedfromanyapplicationof thetermnonindustrial.Theuseofwine: (a)Withoutpaymentoftaxforuseintheproductionofvinegaror (b)Freeoftaxforexperimentalorresearchpurposesbyanyscientificuniversity,collegeof learning,orinstitutionofscientificresearchor (c)FreeoftaxforusebytheUnitedStatesoranyagencythereof,andforuseforanalysis, testing,research,orexperimentationbythegovernmentsoftheseveralStatesandtheDistrictof Columbiaorofanypoliticalsubdivisionthereoforbyanyagencyofsuchgovernmentsor (d)Whichhasbeenrenderedunfitforbeverageuse. BacktoTop 1.62Useofdistilledspiritsorwineforexperimentalpurposesandinmanufactureof nonbeverageproducts. Theuseofdistilledspiritsorwineforexperimentalpurposesandinthemanufactureof(a) medicinal,pharmaceutical,orantisepticproducts,includingprescriptionscompoundedbyretail druggists(b)toiletpreparations(c)flavoringextracts,syrups,orfoodproductsor(d)scientific, chemical,mechanical,orindustrialproducts,providedsuchproductsareunfitforbeverageuse,is
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 11/14

3/3/2014

eCFR Code of Federal Regulations

regardedasindustrial,andwillbeexcludedfromanyapplicationofthetermnonindustrialuse. BacktoTop

USESCLASSEDASNONINDUSTRIAL
BacktoTop 1.70General. Allusesofdistilledspiritsandwines,exceptasprovidedin1.60,1.61,and1.62ofthispart,are regardedasnonindustrial.Suchnonindustrialuseshallinclude,butnotbelimitedto,distilledspirits orwineusedforbeveragepurposes,orinthemanufacture,rectification,orblendingofalcoholic beveragesorinthepreparationoffoodordrinkbyahotel,restaurant,tavern,orsimilarestablishment orforsacramentalpurposesorasamedicine. BacktoTop 1.71Distilledspiritsincontainersofacapacityofonegallonorless. Distilledspiritsincontainersofacapacityofonewinegallonorless,exceptanhydrousalcohol andalcoholwhichmaybewithdrawnfreeoftaxundertheinternalrevenuelaws,willbedeemedtobe fornonindustrialuse. BacktoTop

SubpartEBulkSalesandBottlingofDistilledSpirits
BacktoTop

BULKSALESANDBOTTLING
BacktoTop 1.80Salesofdistilledspiritsinbulk. Itisunlawfulforanypersontosell,offertosell,contracttosell,orotherwisedisposeofdistilled spiritsinbulk,fornonindustrialuse,exceptforexportortotheclassesofpersonsenumeratedin 1.82,1.83,and1.84. BacktoTop 1.81Importationofdistilledspiritsinbulk. Itisunlawfulforanypersontoimportdistilledspiritsinbulk,fornonindustrialuse,exceptforsale toorforusebytheclassesofpersonsenumeratedin1.82,1.83and1.84. BacktoTop 1.82Acquiringorreceivingdistilledspiritsinbulkforredistillation,processing,rectification, warehousing,orwarehousingandbottling. (a)Proprietorsofdistilledspiritsplants.Personsholdingbasicpermits(issuedundersubpartBof thispart)authorizingthedistilling,processing,rectifying,orwarehousingandbottlingofdistilledspirits, oroperatingpermits(issuedunder19.91andsucceedingsectionsofthischapter)mayacquireor receiveinbulkandredistill,warehouse,orprocessdistilledspirits,sofaraspermittedbylaw.
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 12/14

3/3/2014

eCFR Code of Federal Regulations

(b)Proprietorsofclass8customsbondedwarehouses.Ifthepermitteeoperatesaclass8 customsbondedwarehouse,thepermitteemayacquireorreceiveinbulk,andwarehouseandbottle, importeddistilledspirits,sofaraspermittedbythecustomslaws.

(26U.S.C.7805(68AStat.917,asamended)27U.S.C.205(49Stat.981,asamended)) [T.D.ATF373,61FR26098,May24,1996,asamendedbyT.D.TTB92,76FR9090,Feb.16,2011]

BacktoTop 1.83Acquiringorreceivingdistilledspiritsinbulkforadditiontowine. Personsholdingpermitsasproducersandblendersofwine,may,pursuanttosuchpermit, acquireorreceiveinbulkalcoholorbrandyforadditiontowines. BacktoTop 1.84AcquisitionofdistilledspiritsinbulkbyGovernmentagencies. AnyagencyoftheUnitedStates,orofanyStateorpoliticalsubdivisionthereof,mayacquireor receiveinbulk,andwarehouseandbottle,importedanddomesticdistilledspiritsinconformitywiththe internalrevenuelaws. BacktoTop

WAREHOUSERECEIPTS
BacktoTop 1.90Distilledspiritsinbulk. BythetermsoftheAct(27U.S.C.206),allwarehousereceiptsfordistilledspiritsinbulkmust requirethatthewarehousemanshallpackagesuchdistilledspirits,beforedelivery,inbottleslabeled andmarkedinaccordancewithlaw,ordeliversuchdistilledspiritsinbulkonlytopersonstowhomitis lawfultosellorotherwisedisposeofdistilledspiritsinbulk. BacktoTop 1.91Bottleddistilledspirits. TheprovisionsoftheAct,whichforbidanypersontosell,offertosell,contracttosell,or otherwisedisposeofwarehousereceiptsfordistilledspiritsinbulk,donotapplytowarehousereceipts forbottleddistilledspirits.
CROSSREFERENCE:Forlabelingofdistilledspirits,seepart5ofthischapter.

BacktoTop

SALESOFDISTILLEDSPIRITSFORINDUSTRIALUSE
BacktoTop 1.95General. Distillers,rectifiers,andotherpermitteesengagedinthesaleorotherdispositionofdistilledspirits fornonindustrialuseshallnotsellorotherwisedisposeofdistilledspiritsinbulk(otherthanalcohol)for industrialuse,unlesssuchdistilledspiritsareshippedordelivereddirectlytotheindustrialuser thereof.
http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5 13/14

3/3/2014

eCFR Code of Federal Regulations

BacktoTop

ForquestionsorcommentsregardingeCFReditorialcontent,features,ordesign,emailecfr@nara.gov . ForquestionsconcerningeCFRprogramminganddeliveryissues,emailwebteam@gpo.gov .

http://www.ecfr.gov/cgi-bin/text-idx?SID=c25852e5300e4ef6b47e2fb1d3ddf083&node=27:1.0.1.1.1&rgn=div5

14/14