[Title 27 CFR ]
[Code of Federal Regulations (annual edition) - April 1, 2003 Edition]
[From the U.S. Government Printing Office]
[[Page i]]
27
Part 200 to End
Revised as of April 1, 2003
Alcohol, Tobacco Products and Firearms
Containing a codification of documents of general
applicability and future effect
As of April 1, 2003
With Ancillaries
Published by
Office of the Federal Register
National Archives and Records
Administration
A Special Edition of the Federal Register
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Table of Contents
Page
Explanation................................................. v
Title 27:
Chapter I--Alcohol and Tobacco Tax and Trade Bureau,
Department of the Treasury (Continued) 3
Chapter II--Bureau of Alcohol, Tobacco, Firearms,
and Explosives, Department of Justice 87
Finding Aids:
Table of CFR Titles and Chapters........................ 265
Alphabetical List of Agencies Appearing in the CFR...... 283
List of CFR Sections Affected........................... 293
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Cite this Code: CFR
To cite the regulations in
this volume use title,
part and section number.
Thus, 27 CFR 252.1 refers
to title 27, part 252,
section 1.
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EXPLANATION
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Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
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[[Page vii]]
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Raymond A. Mosley,
Director,
Office of the Federal Register.
April 1, 2003.
THIS TITLE
Title 27--Alcohol, Tobacco Products, and Firearms is composed of two
volumes, parts 1-199 and part 200 to end. The contents of these volumes
represent all current regulations issued by the Bureau of Alcohol and
Tobacco Tax and Trade Bureau, Department of the Treasury, and the Bureau
of Alcohol, Tobacco, Firearms, and Explosives, Department of Justice, as
of April 1, 2003.
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TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
(This book contains part 200 to End)
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Part
chapter I--Alcohol and Tobacco Tax and Trade Bureau,
Department of the Treasury (Continued).................... 252
chapter II--Bureau of Alcohol, Tobacco, Firearms, and
Explosives, Department of Justice......................... 447
Cross References: U.S. Customs Service, Department of the Treasury: See
19 CFR chapter I.
Federal Trade Commission: See 16 CFR chapter I.
Food and Drug Administration, Department of Health and Human Services:
See 21 CFR chapter I.
Foreign Trade Statistics, Bureau of the Census, Department of
Commerce: See 15 CFR part 30.
Postal Service: See 39 CFR 111.5(a)(2)(iii) or Domestic Mail Manual
123.3.
Other regulations issued by the Department of the Treasury appear in
title 26 and 31 CFR chapter I.
Abbreviations:
The following abbreviations are used in this chapter:
ATF = Alcohol, Tobacco and Firearms.
TD = Treasury Decision.
[[Page 3]]
CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE
TREASURY (CONTINUED)
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Editorial Note: The regulations appearing in this title were
originally issued by the Federal Alcohol Administration, which was
abolished by Reorganization Plan No. III, Apr. 2, 1940, 5 FR 2107, 3
CFR, 1940 Supp. Treasury Order 30, June 12, 1940, 5 FR 2212, issued
under sections 2 and 8 of Reorganization Plan No. III (54 Stat. 1232)
provided that these regulations continue in effect as regulations of the
Bureau of Alcohol, Tobacco and Firearms.
SUBCHAPTER M--ALCOHOL, TOBACCO AND OTHER EXCISE TAXES (CONTINUED)
Part Page
200-251 [Reserved]
252 Exportation of liquors...................... 5
275 Importation of tobacco products and
cigarette papers and tubes.............. 51
285 [Reserved]
Supplementary Publications: Additional supplementary publications are
issued covering individual parts of the Alcohol, Tobacco and Firearms
Regulations, the Tobacco Tax Guide, and Regulations Under Tax
Conventions.
[[Page 5]]
SUBCHAPTER M--ALCOHOL, TOBACCO AND OTHER EXCISE TAXES (CONTINUED)
PART 252--EXPORTATION OF LIQUORS--Table of Contents
Subpart A--Scope
Sec.
252.1 General.
252.2 Forms prescribed.
252.3 Related regulations.
252.4 Delegations of the Director.
Subpart B--Definitions
252.11 Meaning of terms.
Subpart C--Miscellaneous Provisions
Withdrawal or Lading for Use on Certain Vessels and Aircraft
252.20 Alternate methods or procedures; and emergency variations from
requirements.
252.21 General.
252.22 Vessels employed in the fisheries.
252.23 Reciprocating foreign countries.
Manufacturing Bonded Warehouses
252.25 General.
Customs Bonded Warehouses
252.26 Entry of distilled spirits into customs bonded warehouses.
252.27 Entry of wine into customs bonded warehouses.
252.28 Withdrawal of wine and distilled spirits from customs bonded
warehouses.
Foreign-Trade Zones
252.30 Export status.
Voluntary Destruction of Liquors After Receipt in a Foreign-Trade Zone
252.35 General.
252.36 Application.
252.37 Action by regional director (compliance).
252.38 Action by district director of customs.
Evidence of Exportation and Use
252.40 Evidence of exportation: distilled spirits and wine.
252.41 Evidence of lading for use on vessles or aircraft: distilled
spirits and wine.
252.42 Evidence of deposit.
252.43 Evidence of exportation and lading for use on vessels and
aircraft: beer.
Retention of Records
252.45 Retention of records.
Penalties of Perjury
252.48 Execution under penalties of perjury.
Subpart D--Bands and Consents of Surety
252.51 General.
252.52 Corporate surety.
252.52a Filing of powers of attorney.
252.52b Execution of powers of attorney.
252.53 Deposit of securities in lieu of corporate surety.
252.54 Consents of surety.
252.55 Authority to approve bonds and consents of surety.
252.56 Disapproval of bonds or consents of surety.
252.57 Appeal to Director.
252.58 Operations or unit bond--distilled spirits.
252.59 Bond, Form 5120.36.
252.60 Brewer's bond, Form 5130.22.
252.61 Bond, Form 2734 (5100.25).
252.62 Bond, Form 2735 (5100.30).
252.63 Bond, Form 2736 (5100.12).
252.64 Bond, Form 2737 (5110.67).
252.65 Bond, Form 2738 (5110.68).
252.66 Strengthening bonds.
252.67 New or superseding bonds.
Termination of Bonds
252.70 Termination of bonds, Forms 2734 (5120.25) and 2736 (5100.12).
252.71 Termination of bonds, Forms 2735 (5100.30), 2737 (5110.67), and
2738 (5110.68).
252.72 Application of surety for relief from bond.
252.73 Relief of surety from bond.
252.74 Release of pledged securities.
Charges and Credits
252.80 Charges and credits on bonds.
Subpart E--Withdrawal of Distilled Spirits Without Payment of Tax for
Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade
Zone, or Transportation to a Manufacturing Bonded Warehouse
252.91 General.
252.92 Application or notice, ATF Form 5100.11.
252.93 Carrier to be designated.
252.94 Containers.
252.95 Change of packages for exportation.
252.96 Approval of application.
252.97 [Reserved]
252.98 Inspection and regauge.
252.100 [Reserved]
252.101 Packages to be stamped.
252.102 Bottles to have closures affixed.
252.103 Export marks.
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252.104 Certificates of origin.
252.105 Report of inspection and tax liability.
252.106 Consignment, shipment, and delivery.
252.107 Disposition of forms.
Losses
252.110 Losses.
Return of Spirits to Bonded Premises
252.115 General.
252.116 Notice of return of spirits withdrawn without payment of tax.
252.117 Responsibility for return of spirits.
252.118 Receipt of spirits.
Subpart F--Withdrawal of Wine Without Payment of Tax for Exportation,
Use on Vessels and Aircraft, Transfer to a Foreign-Trade Zone or to a
Customs Bonded Warehouse, or Transportation to a Manufacturing Bonded
Warehouse
252.121 General.
252.122 Application or notice, ATF Form 5100.11.
252.123 Export marks.
252.124 Consignment, shipment, and delivery.
252.125 Disposition of forms.
252.126 Proprietor's report.
252.127 Losses.
Return of Wines to Bonded Wine Cellar
252.130 General.
252.131 Application for return of wines withdrawn without payment of
tax.
252.132 Responsibility for return of wine.
252.133 Disposition of forms.
Subpart G--Removal of Beer and Beer Concentrate Without Payment of Tax
for Exportation, Use as Supplies on Vessels and Aircraft, or Transfer to
a Foreign-Trade Zone
252.141 General.
252.142 Notice, Form 1689.
252.143 Containers.
252.144 Export marks.
252.145 Consignment, shipment and delivery.
252.146 Disposition of forms.
252.147 Return of beer or beer concentrate.
252.148 Brewer's report.
252.149 Losses.
252.150 Charges and credits on bond.
Subpart H--Withdrawal of Specially Denatured Spirits, Free of Tax, for
Exportation or Transfer to a Foreign-Trade Zone
252.151 General.
252.152 Notice, ATF Form 5100.11.
252.153 Withdrawal procedure.
252.154 Export marks.
252.155 Consignment, shipment, and delivery.
252.156 Losses.
Return of Specially Denatured Spirits to Bonded Premises
252.160 General.
252.161 Notice of return of specially denatured spirits.
252.162 Responsibility for return of specially denatured spirits.
252.163 Receipt of specially denatured spirits.
Subpart I--Exportation of Distilled Spirits With Benefit of Drawback
252.171 General.
Filing of Notice and Removal
252.190 Notice, ATF Form 5110.30.
252.191 [Reserved]
252.192 Packages of distilled spirits to be gauged.
252.193 Export marks.
252.194-252.195 [Reserved]
252.195b Claims on spirits tax determined on and after January 1, 1980.
252.196 Consignment, shipment, and delivery.
252.197 Return of spirits withdrawn for export with benefit of
drawback.
252.198 Notice of return.
252.199 Responsibility for return of spirits withdrawn for export with
benefit of drawback.
Subpart J [Reserved]
Subpart K--Exportation of Wine With Benefit of Drawback
252.211 General.
252.212 Persons authorized.
252.213 [Reserved]
252.214 Notice and claim, Form 1582-A (5120.24).
252.215 Certificate of tax determination, Form 2605 (5120.20).
252.216 Export marks.
252.217 Consignment, shipment, and delivery.
252.218 Disposition of Forms 1582-A (5120.24).
252.219 Return of wine withdrawn for export with benefit of drawback.
252.220 Notice of return.
252.220a Responsibility for return of wine withdrawn for export with
benefit of drawback.
Subpart L--Exportation of Beer With Benefit of Drawback
252.221 General.
252.222 Claim, Form 1582-B (5130.6).
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252.223 Export marks.
Execution of Claims
252.225 Removals of beer by brewer.
252.226 Removals of beer by agent on behalf of brewer.
252.227 Removals of beer by persons other than the brewer or agent of
the brewer.
Consignment, Shipment, and Delivery
252.230 Consignment, shipment, and delivery.
Subpart M--Shipment or Delivery for Export
Consignment
252.241 Shipment for export, or for use on vessels.
252.242 Shipment for use on aircraft.
252.243 Shipment to armed services.
252.244 Shipment to manufacturing bonded warehouse.
252.244a Shipment to a customs bonded warehouse.
252.245 Shipment to foreign-trade zone.
252.246 Delivery for shipment.
252.247 Change in consignee.
Bills of Lading
252.250 Bills of lading required.
252.251 Railway express receipts.
252.252 Air express or freight bills of lading.
252.253 Certificate by export carrier.
Subpart N--Proceedings at Ports of Export
252.261 Notice to district director of customs.
252.262 Delay in lading at port.
252.263 [Reserved]
252.264 Lading for exportation.
252.265 Evidence of fraud.
252.266 Release of detained merchandise.
252.267 Exportation from interior port.
252.268 Receipt for liquors for use on vessels or aircraft.
252.269 Certification by district director of customs.
Receipt by Armed Services
252.275 Receipt by armed services.
Lading for Use on Aircraft
252.280 Distilled spirits and wines.
252.281 Certificate of use for distilled spirits and wines.
252.282 Beer.
Receipt in Manufacturing Bonded Warehouse
252.285 Receipt in manufacturing bonded warehouse.
Receipt in Customs Bonded Warehouse
252.286 Receipt in customs bonded warehouse.
Receipt in Foreign-Trade Zone
252.290 Receipt in foreign-trade zone.
Customs Gauge
252.291 Customs Form 6001.
Alternate Procedures
252.295 Exception for export of beer.
Subpart O--Losses
Distilled Spirits
252.301 Loss of distilled spirits in transit.
252.302 Notice to exporter.
252.303 Filing of claims.
252.304 Action on claim.
Specially Denatured Spirits
252.310 Loss of specially denatured spirits in transit.
Wine
252.315 Loss of wine in transit.
252.316 Notice to exporter.
252.317 Filing of claims.
252.318 Action on claim.
Beer and Beer Concentrate
252.320 Loss of beer and beer concentrate in transit.
252.321 Tax assessed on loss not accounted for.
Subpart P--Action on Claims
252.331 Claims supported by bond, Form 2738 (5110.68).
252.332 Claim against bond.
252.333 Where no bond is filed.
252.334 Credit allowance.
252.335 Disallowance of claim.
Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001,
5007, 5008, 5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 5122, 5124,
5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 U.S.C.
203, 205; 44 U.S.C. 3504(h).
Source: 25 FR 5734, June 23, 1960, unless otherwise noted.
Redesignated at 40 FR 16835, Apr. 15, 1975.
Editorial Note: Nomenclature changes to part 252 appear at 67 FR
18087 through 18090, Apr. 15, 2002.
Subpart A--Scope
Sec. 252.1 General.
The regulations in this part relate to exportation, lading for use
on vessels
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and aircraft, and the transfer to a foreign-trade zone or a
manufacturing bonded warehouse, class 6, of distilled spirits (including
specially denatured spirits), beer, and wine, and in the case of
distilled spirits and wine only, transfer to a customs bonded warehouse
as provided for in 26 U.S.C. 5066 and 5362, whether without payment of
tax, free of tax, or with benefit of drawback, and includes requirements
with respect to removal, shipment, lading, deposit, evidence of
exportation, losses, claims, and bonds.
[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981]
Sec. 252.2 Forms prescribed.
(a) The Appropriate ATF officer is authorized to prescribe all forms
required by this part. All of the information called for in each form
shall be furnished as indicated by the headings on the form and the
instructions on or pertaining to the form. In addition, information
called for in each form shall be furnished as required by this part. The
form will be filed in accordance with the instructions for the form.
(b) Forms may be requested from the ATF Distribution Center, P.O.
Box 5950, Springfield, Virginia 22150-5950, or by accessing the ATF web
site (http://www.atf.treas.gov/).
(5 U.S.C. 552(a) (80 Stat. 383, as amended))
[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-249,
52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D.
ATF-477, 67 FR 18087, Apr. 15, 2002]
Sec. 252.3 Related regulations.
Regulations relating to this part are listed below:
19 CFR Chapter I--Customs Regulations
27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol
Administration Act
27 CFR Part 4--Labeling and Advertising of Wine
27 CFR Part 19--Distilled Spirits Plants
27 CFR Part 21--Formulas for Denatured Alcohol and Rum
27 CFR Part 24--Wine
27 CFR Part 25--Beer
27 CFR Part 30--Gauging Manual
27 CFR Part 194--Liquor Dealers
31 CFR Part 225--Acceptance of Bonds, Notes, or Other Obligations Issued
or Guaranteed by the United States as Security in Lieu of Surety of
Sureties on Penal Bonds
[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; as amended by T.D. ATF-299, 55
FR 25033, June 19, 1990]
Sec. 252.4 Delegations of the Director.
Most of the regulatory authorities of the Director contained in this
part 252 are delegated to appropriate ATF officers. These ATF officers
are specified in ATF Order 1130.27, Delegation of the Director's
Authorities in this part 252, Exportation of Liquors. ATF delegation
orders, such as ATF Order 1130.27, are available to any interested
person by mailing a request to the ATF Distribution Center, P.O. Box
5950, Springfield, Virginia 22150-5950, or by accessing the ATF web site
(http://www.atf.treas.gov/).
[T.D. ATF-477, 67 FR 18087, Apr. 15, 2002]
Subpart B--Definitions
Sec. 252.11 Meaning of terms.
When used in this part and in forms prescribed under this part,
where not otherwise distinctly expressed or manifestly incompatible with
the intent thereof, terms shall have the meaning ascribed in this
section. Words in the plural form shall include the singular, and vice
versa, and words importing the masculine gender shall include the
feminine. The terms ``includes'' and ``including'' do not exclude things
not enumerated which are in the same general class.
Appropriate ATF Officer. An officer or employee of the Bureau of
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions
relating to the administration or enforcement of this part by ATF Order
1130.27, Delegation of the Director's Authorities in 27 CFR Part 252,
Exportation of Liquors.
Beer. Beer, ale, porter, stout, and other similar fermented
beverages (including sake or similar products) of any name or
description containing one-half of 1 percent or more of alcohol by
volume, brewed or produced from malt, wholly or in part, or from any
substitute therefor.
Bonded premises--distilled spirits plant. The premises of a
distilled spirits
[[Page 9]]
plant, or part thereof, on which distilled spirits operations defined in
26 U.S.C. 5002 are authorized to be conducted.
Bonded wine cellar. Premises established under part 24 of this
chapter for the production, blending, cellar treatment, storage,
bottling, packaging, or repackaging of untaxpaid wine.
Brewer. A proprietor of a brewery.
Brewery. Premises established under part 25 of this chapter for the
production of beer.
Bulk container. any container having a capacity of more than 1
gallon.
CFR. The Code of Federal Regulations.
Container. Any receptacle, vessel, or any form of package, bottle,
can, tank, or pipeline used, or capable of being used, for holding,
storing, transferring, or conveying liquors.
Customs bonded warehouse. A customs bonded warehouse, class 2, 3, or
8, established under the provisions of Customs Regulations (19 CFR
chapter I).
Customs officer. Any officer of the Customs Service or any
commissioned, warrant, or petty officer of the Coast Guard, or any agent
or other person authorized by law or designated by the Secretary of the
Treasury to perform the duties of an officer of the Customs Service.
Delegate. Any officer, employee, or agency of the Department of the
Treasury authorized by the Secretary of the Treasury directly, or
indirectly by one or more redelegations of authority, to perform the
function mentioned or described in the context.
Director. The Director, Bureau of Alcohol, Tobacco and Firearms,
Department of the Treasury, Washington, DC.
District director of customs. The district director of customs at a
headquarters port of the district (except the district of New York, NY),
the area directors of customs in the district of New York, NY, and the
port director at a port not designated as a headquarters port.
Distilled spirits or spirits. That substance known as ethyl alcohol,
ethanol, or spirits of wine, in any form (including all dilutions and
mixtures thereof, from whatever source or by whatever process produced)
but not denatured spirits.
Distilled spirits plant. An establishment qualified under the
provisions of part 19 of this chapter for the production, warehousing,
or processing of spirits, or for authorized combinations of such
operations.
District director. A district director of internal revenue.
Executed under penalties of perjury. Signed with the prescribed
declaration under the penalties of perjury as provided on or with
respect to the return, claim, form, or other document or, where no form
of declaration is prescribed, with the declaration:
I declare under the penalties of perjury that this ----------
(insert type of document such as statement, report, certificate,
application, claim, or other document), including the documents
submitted in support thereof, has been examined by me and, to the best
of my knowledge and belief, is true, correct, and complete.
Exportation. A severance of goods from the mass of things belonging
to the United States with the intention of uniting them to the mass of
things belonging to some foreign country and shall include shipments to
any possession of the United States. The export character of any
shipment shall be determined by the intention with which it is made, and
it assumes an export character only when destined for use in a foreign
country or in a possession of the United States. For the purposes of
this part, shipments to the Commonwealth of Puerto Rico, to the
territories of the Virgin Islands, American Samoa and Guam, and to the
Panama Canal Zone shall also be treated as exportations.
Foreign-trade zone or zone. A foreign-trade zone established and
operated pursuant to the Act of June 18, 1934, as amended.
Gallon or wine gallon. The liquid measure equivalent to the volume
of 231 cubic inches.
Liquor. Distilled spirits, wines, and/or beer.
Liter. A metric unit of capacity equal to 1,000 cubic centimeters of
alcoholic beverage, and equivalent to 33.814 fluid ounces. A liter is
divided into 1,000 milliliters. Milliliter or milliliters may be
abbreviated as ``ml''.
Manufacturing bonded warehouse. A manufacturing bonded warehouse,
class
[[Page 10]]
six, established under the provisions of Customs Regulations (19 CFR,
chapter I).
Package. Any cask, keg, barrel, drum, or similar portable container.
Person. An individual, a trust, an estate, a partnership, an
association, a company, or a corporation.
Proof. The ethyl alcohol content of a liquid at 60 degrees
Fahrenheit, stated as twice the percent of ethyl alcohol by volume.
Proof gallon. A gallon at 60 degrees Fahrenheit which contains 50
percent by volume of ethyl alcohol having a specific gravity of 0.7939
at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as
unity, or the alcoholic equivalent thereof.
Proprietor. The person who operates the brewery, distilled spirits
plant, bonded wine cellar, taxpaid wine bottling house, or manufacturing
bonded warehouse, as the case may be, referred to in this part.
Secretary. The Secretary of the Treasury or his delegate.
Specially denatured spirits. Alcohol or rum, as defined in part 21
of this chapter, denatured pursuant to the formulas authorized in part
21 for specially denatured alcohol or rum.
Tank truck. A tank-equipped semi-trailer, trailer, or truck.
Tax. The distilled spirits tax, the beer tax, or the applicable wine
tax, as the case may be, imposed by 26 U.S.C. chapter 51.
U.S.C. The United States Code.
Wine. All kinds and types of wine having not in excess of 24 percent
of alcohol by volume.
Zone operator. The person to which the privilege of establishing,
operating, and maintaining a foreign-trade zone has been granted by the
Foreign-Trade Zones Board created by the Act of June 18, 1934, as
amended.
(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended
(27 U.S.C. 205))
[T.D. ATF-48, 43 FR 13552, Mar. 31, 1978, as amended by T.D. ATF-51, 43
FR 24243, June 2, 1978; 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44 FR
71720, Dec. 11, 1979; T.D. ATF-199, 50 FR 9201, Mar. 6, 1985; T.D. ATF-
224, 51 FR 7698, Mar. 5, 1986; T.D. ATF-477, 67 FR 18088, Apr. 15, 2002]
Subpart C--Miscellaneous Provisions
Withdrawal or Lading for Use on Certain Vessels and Aircraft
Sec. 252.20 Alternate methods or procedures; and emergency variations from requirements.
(a) Alternate methods or procedures--(1) Application. An exporter,
after receiving approval from the appropriate ATF officer, may use an
alternate method or procedure (including alternate construction or
equipment) in lieu of a method or procedure prescribed by this part. An
exporter wishing to use an alternate method or procedure may apply to
the appropriate ATF officer. The exporter shall describe the proposed
alternate method or procedure and shall set forth the reasons for its
use.
(2) Approval by appropriate ATF officer. The appropriate ATF officer
may approve the use of an alternate method or procedure if:
(i) The applicant shows good cause for its use;
(ii) It is consistent with the purpose and effect of the procedure
prescribed by this part, and provides equal security to the revenue;
(iii) It is not contrary to law; and
(iv) It will not cause an increase in cost to the Government and
will not hinder the effective administration of this part.
(3) Exceptions. The appropriate ATF officer will not authorize an
alternate method or procedure relating to the giving of a bond or the
payment of tax.
(4) Conditions of approval. An exporter may not employ an alternate
method or procedure until the appropriate ATF officer has approved its
use. The exporter shall, during the terms of the authorization of an
alternate method or procedure, comply with the terms of the approved
application.
(b) Emergency variations from requirements--(1) Application. When an
emergency exists, an exporter may apply to the appropriate ATF officer
for a variation from the requirements of this part relating to
construction, equipment, and methods of operation.
[[Page 11]]
The exporter shall describe the proposed variation and set forth the
reasons for using it.
(2) Approval by appropriate ATF officer. The appropriate ATF officer
may approve an emergency variation from requirements if:
(i) An emergency exists;
(ii) The variation from the requirements is necessary;
(iii) It will afford the same security and protection to the revenue
as intended by the specific regulations;
(iv) It will not hinder the effective administration of this part;
and
(v) It is not contrary to law.
(3) Conditions of approval. An exporter may not employ an emergency
variation from the requirements until the appropriate ATF officer has
approved its use. Approval of variations from requirements are
conditioned upon compliance with the conditions and limitations set
forth in the approval.
(4) Automatic termination of approval. If the exporter fails to
comply in good faith with the procedures, conditions or limitations set
forth in the approval, authority for the variation from requirements is
automatically terminated and the exporter is required to comply with
prescribed requirements of regulations from which those variations were
authorized.
(c) Withdrawal of approval. If the appropriate ATF officer finds the
revenue is jeopardized or the effective administration of this part is
hindered by the approval, such ATF officer may withdraw approval for an
alternate method or procedure or for an emergency variation from
requirements, approved under paragraph (a) or (b) of this section.
(Act of August 16, 1954, Ch. 736, 68A Stat. 917 (26 U.S.C. 7805); sec.
201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552))
[T.D. ATF-199, 50 FR 9201, Mar. 6, 1985, as amended by T.D. ATF-477, 67
FR 18088, Apr. 15, 2002]
Sec. 252.21 General.
Liquors may be withdrawn without payment of tax for lading, and
liquors on which the tax has been paid or determined may be laden with
benefit of drawback of tax, subject to this part, for use on vessels and
aircraft as follows:
(a) Vessels or aircraft operated by the United States;
(b) Vessels of the United States employed in the fisheries as
provided in Sec. 252.22 or in the whaling business, or actually engaged
in foreign trade or trade between the Atlantic and Pacific ports of the
United States or between the United States and any of its possessions,
or between Hawaii and any other part of the United States or between
Alaska and any other part of the United States;
(c) Aircraft registered in the United States and actually engaged in
foreign trade or trade between the United States and any of its
possessions, or between Hawaii and any other part of the United States
or between Alaska and any other part of the United States;
(d) Vessels of war of any foreign nation;
(e) Foreign vessels employed in the fisheries as provided in
Sec. 252.22 or in the whaling business, or actually engaged in foreign
trade or trade between the United States and any of its possessions, or
between Hawaii and any other part of the United States or between Alaska
and any other part of the United States; where such trade by foreign
vessels is permitted; or
(f) Aircraft registered in any foreign country and actually engaged
in foreign trade or trade between the United States and any of its
possessions, or between Hawaii and any other part of the United States
or between Alaska and any other part of the United States, where trade
by foreign aircraft is permitted, and where the Secretary of the
Treasury shall have been advised by the Secretary of Commerce that he
has found such foreign country allows, or will allow, substantially
reciprocal privileges in respect to aircraft registered in the United
States.
(46 Stat. 690, as amended; 72 Stat. 1334, 1335, 1336, 1362, 1380; 19
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
[T.D. 6588, 27 FR 773, Jan. 26, 1962. Redesignated at 40 FR 16835, Apr.
15, 1975]
Sec. 252.22 Vessels employed in the fisheries.
Liquors may be withdrawn or laden under the provisions of paragraphs
(b) and (e) of Sec. 252.21 relating to vessels employed in the
fisheries, only for use on
[[Page 12]]
vessels of the United States documented to engage in the fisheries and
foreign fishing vessels of 5 net tons or over if the district director
of customs is satisfied by reason of the quantity requested in the light
of (a) whether the vessel is employed in substantially continuous
fishing activities, and (b) the vessel's complement, that none of the
liquors to be withdrawn or laden are intended to be removed from the
vessel in, or otherwise returned to, the United States. Such withdrawal
or lading shall be conditioned upon compliance with the applicable
provisions of this part. Lading of such liquors for use on such vessels
shall be subject to approval by the district director of customs of a
special written application by the withdrawer or the vessel's master on
customs Form 5125 (in duplicate) and a statement by the withdrawer in
his application or notice on the required ATF Form 5100.11, 5110.30,
1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may
be, that the liquors are to be laden for use as supplies on a vessel
employed in the fisheries. The original application on customs Form
5125, after approval, shall be stamped with the serial number of the ATF
Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689
(5130.12), as the case may be, and the date thereof, and shall be
returned by the district director of customs to the withdrawer or
vessel's master for use as prescribed below. Approval of each such
application shall be subject to the condition that the original shall be
presented thereafter by the withdrawer or the vessel's master to the
district director of customs within 24 hours (excluding Saturday,
Sunday, and holidays) after each subsequent arrival of the vessel at a
customs port or station and that an accounting shall be made at the time
of such presentation of the disposition of the liquors until the
district director of customs is satisfied that they have been consumed
on board, or landed under customs supervision, and takes up the
authorization. The approval of customs Form 5125 shall be subject to the
further condition that any such liquors remaining on board while the
vessel is in port shall be safeguarded in the manner and to such extent
as the director of the port or place of arrival shall deem necessary.
When such liquors have been accounted for to the satisfaction of the
district director of customs, he shall execute his certificate of lading
and use on both copies of the ATF Form 5100.11, 5110.30, 1582-A
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and
forward the original of the form according to its instructions. In the
event of a failure on the part of the withdrawer or the master of the
vessel to comply with the conditions of this section or upon receipt of
evidence that the liquors were not lawfully used as supplies on the
vessel, the district director of customs shall advise the appropriate
ATF officer of all the facts in the case for determination of any
liability incurred. In the case of liquors withdrawn without payment of
tax, assessment of tax liability found to have been incurred shall be
made against the principal on the bond. In the case of taxpaid or tax
determined liquors, the appropriate ATF officer shall determine as to
whether to make demand upon the principal and the surety on the bond or
to disallow the claim as the case may be.
Note: As used in this section, the word ``withdrawer'' shall mean
the person executing the application or notice, ATF Form 5100.11,
5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the
case may be.
(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting
Sec. 252.22, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Sec. 252.23 Reciprocating foreign countries.
The appropriate ATF officer may approve applications relating to the
withdrawal or lading of liquors for use on aircraft of those foreign
countries which will allow, to aircraft registered in the United States
and engaged in foreign trade, privileges substantially reciprocal to the
privileges allowed herein to aircraft of a foreign country. Where
application is made to withdraw or lade liquors for use on aircraft of
[[Page 13]]
other countries, which it is claimed reciprocate similar privileges to
aircraft of the United States, the applicant must first establish the
right of such withdrawal or lading. In appropriate cases, the applicant
should request the Secretary of Commerce to find and advise the
Secretary of the Treasury that such foreign country or countries allow,
or will allow, substantially reciprocal privileges to aircraft of the
United States.
(46 Stat. 690, as amended; 19 U.S.C. 1309)
Manufacturing Bonded Warehouses
Sec. 252.25 General.
The proprietor of a duly constituted manufacturing bonded warehouse,
established in accordance with law and the regulations in 19 CFR chapter
I, may withdraw distilled spirits or wine from any distilled spirits
plant or bonded wine cellar, as the case may be, without payment of tax,
for use in the manufacture of products for export, or for shipment in
bond to Puerto Rico, or for use by foreign governments, organizations,
and individuals, as authorized by 26 U.S.C. 5066, 5214(a)(6) and 5362;
and 19 U.S.C. 1311. The proprietor of the manufacturing bonded warehouse
shall furnish bond in accordance with the provisions of Sec. 252.63 or
Sec. 252.64.
(Sec. 311, Tariff Act of 1930, 46 Stat. 691, as amended (19 U.S.C.
1311); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as
amended (26 U.S.C. 5214, 5362); sec. 3, Pub. L. 91-659, 84 Stat. 1965,
as amended (26 U.S.C. 5066))
[T.D. ATF-88, 46 FR 39814, Aug. 5, 1981]
Customs Bonded Warehouses
Sec. 252.26 Entry of distilled spirits into customs bonded warehouses.
(a) Distilled spirits withdrawn without payment of tax. (1) Bottled
distilled spirits may, subject to this part, be withdrawn from bonded
premises for transfer to customs bonded warehouses in which imported
distilled spirits are permitted to be stored in bond for entry pending
withdrawal as provided in Sec. 252.27. Withdrawals from bonded premises
under the provisions of this paragraph shall be treated as withdrawals
for exportation under the provisions of 26 U.S.C. 5214(a)(4).
(2) Distilled spirits may, subject to this part, be withdrawn from
bonded premises for transfer (for the purpose of storage pending
exportation) to any customs bonded warehouse from which distilled
spirits may be exported. These withdrawals shall be treated as
withdrawals for exportation under the provisions of 26 U.S.C.
5214(a)(9).
(b) Bottled distilled spirits eligible for export with benefit of
drawback. Bottled distilled spirits eligible for export with benefit of
drawback may, subject to this part, be transferred to customs bonded
warehouses in which imported distilled spirits are permitted to be
stored, and entered pending withdrawal as provided in Sec. 252.28, as if
such spirits were for exportation.
(c) Time deemed exported. For the purpose of this part, distilled
spirits entered into a customs bonded warehouse as provided in this
section shall be deemed exported at the time so entered.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1381, 1382, (26
U.S.C. 5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26
U.S.C. 5066, 5370, 5371; 26 U.S.C. 7805))
[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-206, 50 FR 23956, June 7, 1985]
Sec. 252.27 Entry of wine into customs bonded warehouses.
Upon filing of the application or notice prescribed by
Sec. 252.122(a), wine may be withdrawn from a bonded wine cellar for
transfer to any customs bonded warehouse for entry pending withdrawal as
provided in Sec. 252.28. Such withdrawal from bonded wine cellars is
governed by the provisions of subpart F of this part. Wine so
transferred to customs bonded warehouses shall be entered, stored, and
accounted for in such warehouses under the appropriate provisions of 19
CFR chapter I.
(Sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981]
Sec. 252.28 Withdrawal of wine and distilled spirits from customs bonded warehouses.
Wine and bottled distilled spirits entered into customs bonded
warehouses as provided in Sec. 252.26 (a) or (b) and
[[Page 14]]
Sec. 252.27 may, under the appropriate provisions of 19 CFR chapter I,
be withdrawn from such warehouses for consumption in the United States
by and for the official or family use of foreign governments,
organizations, and individuals who are entitled to withdraw imported
wine and distilled spirits from a warehouse free of tax. Distilled
spirits and wine entered into customs bonded warehouses under the
provisions of Secs. 252.26(a)(2) and 252.27 may be withdrawn for
exportation, subject to the provisions of 19 CFR chapter I. Distilled
spirits and wine transferred to customs bonded warehouses shall be
entered into, stored and accounted for in, and withdrawn from, such
warehouses under the appropriate provisions of 19 CFR chapter I. Wine
and bottled distilled spirits, originally transferred to customs bonded
warehouses for the purpose of withdrawal by foreign embassies,
legations, etc., as authorized by law, may be withdrawn from such
warehouses for domestic use, in which event they shall be treated as
American goods exported and returned.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214);
sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066); sec.
2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981]
Foreign-Trade Zones
Sec. 252.30 Export status.
(a) Distilled spirits and wines manufactured, produced, bottled in
bottles packed in containers, or packaged in casks or other bulk
containers in the United States, and beer brewed or produced in the
United States may be transferred to a foreign-trade zone for the sole
purpose of exportation, or storage pending exportation. Liquors
deposited in a foreign-trade zone under this part solely for such
purposes are considered to be exported. Export status is not acquired
until application on Form 214 for admission of the liquors into the zone
has been approved by the district director of customs under the
appropriate provision of 19 CFR chapter I, and the required
certification of deposit has been made on the ATF form prescribed in
this part.
(b) The provisions of subpart H of this part do not apply to
specially denatured spirits transferred to a foreign-trade zone for use
in the manufacture of articles pursuant to the provisions of 19 U.S.C.
81c(c). Transfer of domestic specially denatured spirits to a qualified
user in a foreign-trade zone is made free of tax under the provisions of
part 20 of this chapter. Such transfer does not place the domestic
specially denatured spirits in an export status.
(48 Stat. 999, as amended (19 U.S.C. 81c))
[T.D. ATF-274, 53 FR 25157, July 5, 1988]
Voluntary Destruction of Liquors After Receipt in a Foreign-Trade Zone
Sec. 252.35 General.
Liquors may not, under the law, be transferred to a foreign-trade
zone for the purpose of destruction. However, liquors transported to and
deposited in a foreign-trade zone for exportation or for storage pending
exportation may be destroyed under the supervision of the district
director of customs, where it is shown to the satisfaction of the
appropriate ATF officer that the liquors, after deposit in a zone, have
become unmerchantable or unfit for export.
(48 Stat. 999, as amended; 19 U.S.C. 81c)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 252.36 Application.
Liquors deposited in a foreign-trade zone from the United States
which have become unmerchantable or unfit for export may be destroyed.
The exporter shall prepare a letter application, in duplicate, and
submit it to the appropriate ATF officer. The application shall identify
the name and address of the exporter and contain the following
information:
(a) The kind and quantity of the liquor, the serial numbers, if any,
of the containers thereof, and identification of the zone in which the
liquor is stored;
(b) The name and address of the producer bottler or packager of the
liquor, and the name, registry number, if any, and location of the
plant, warehouse or other establishment from which such
[[Page 15]]
liquors were withdrawn for transportation to and deposit in the foreign-
trade zone;
(c) The date, form, and serial number of the ATF Form 5100.11,
5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12), as the
case may be; and, in the case of liquors on which drawback of internal
revenue tax has been allowed, the ATF assigned claim number;
(d) Whether the liquor has become unmerchantable or unfit for export
after deposit in the zone, together with all the known facts relating
thereto; and
(e) Whether the unmerchantable or unfit liquor is covered by valid
insurance in excess of the market value thereof, exclusive of tax. If
the liquor is insured, the application shall show its market value, the
amount and date of each and every policy of insurance, the name and
location of the company by which each and every policy was issued, the
name and address of the bona fide owner of the liquor, and to the best
of the affiant's knowledge, whether any other person or party is
indemnified against the loss of the liquor by reason of its spoilage or
destruction.
Such application shall be signed by the exporter or his authorized agent
and be executed under the penalties of perjury. The appropriate ATF
officer may require any further evidence as is deemed necessary. The
operator of the foreign-trade zone shall countersign the application or
otherwise indicate thereon his knowledge of and concurrence in the
application to destroy the liquor. The exporter shall file the
application with the district director of customs in whose district the
foreign-trade zone is located; at the same time the exporter shall
likewise file Zone Form E in accordance with Customs Regulations (19 CFR
chapter I). On receipt of the application the district director of
customs shall determine the completeness thereof and shall report any
facts relating to the condition of the liquor of which he may have
knowledge. The original application shall be forwarded to the
appropriate ATF officer and the district director of customs shall
retain the copy for his files.
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting
Sec. 252.36, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Sec. 252.37 Action by appropriate ATF officer.
The appropriate ATF officer shall carefully examine the application
to see that all the required information has been furnished and shall
cause an investigation to be made or require any additional evidence,
including samples, to be submitted if necessary. If the appropriate ATF
officer finds that the liquors were transported to and deposited in a
foreign-trade zone in good faith for the purpose of exportation or
storage pending exportation, and that the liquors, after deposit in the
zone, have become unmerchantable or unfit for export, he may approve the
application and authorize the destruction of the liquor described
therein under the supervision of the district director of customs. On
approval or disapproval of the application, the appropriate ATF officer
shall advise the district director of customs of his action.
[T.D. ATF-51,43 FR 24244, June 2, 1978]
Sec. 252.38 Action by district director of customs.
On receipt of the appropriate ATF officer's authorization for
destruction of the liquor, or his disapproval of the application for
destruction, the district director of customs shall act upon the
exporter's application on Zone Form E and dispose of it in accordance
with the applicable provisions of Customs Regulations (19 CFR chapter
I). Where the appropriate ATF officer has authorized the destruction of
the liquor, such destruction shall be accomplished under customs
supervision.
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
[[Page 16]]
Evidence of Exportation and Use
Sec. 252.40 Evidence of exportation: distilled spirits and wine.
The exportation of any shipment of distilled spirits or wine may be
evidenced by:
(a) A copy of the export bill of lading (Sec. 252.250); or
(b) A copy of the railway express receipt (Sec. 252.251); or
(c) A copy of the air express receipt (Sec. 252.252); or
(d) A copy of the through bill of lading where exportation is to a
contiguous foreign country (Sec. 252.250); or
(e) A certificate by the export carrier, as provided for in
Sec. 252.253.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]
Sec. 252.41 Evidence of lading for use on vessels or aircraft: distilled spirits and wine.
The lading of distilled spirits or wine for use on vessels or
aircraft may be evidenced by submission of a receipt procured under the
provisions of Sec. 252.268.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 201, Pub. L. 85-859; 72 Stat. 1362, as amended, 1380, as
amended (26 U.S.C. 5214, 5362))
[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]
Sec. 252.42 Evidence of deposit.
The deposit of distilled spirits in a customs bonded warehouse or
distilled spirits and wines in a foreign-trade zone with benefit of
drawback may be evidenced by a copy of the transportation bill of lading
obtained under the provisions of Sec. 252.250.
(48 Stat. 999, as amended, 84 Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5066)
[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975]
Sec. 252.43 Evidence of exportation and lading for use on vessels and aircraft: beer.
(a) Exportation. The exportation of beer to a foreign country or
possession will be fully evidenced by any of the following documents:
(1) Customs certification of lading and clearance on Form 1582-B
(5130.6) or Form 1689 (5130.12) under subpart M of this part; or
(2) For shipment to the armed forces, certification by a military
officer on Form 1582-B (5130.6) or Form 1689 (5130.12) under
Sec. 252.275; or
(3) A bill of lading (Sec. 252.250), a railway express receipt
(Sec. 252.251), or an air express or air freight bill of lading
(Sec. 252.252), when such bills of lading or receipt show exportation to
a foreign country or possession; or
(4) A certificate issued by an export carrier under Sec. 252.253
attesting to exportation to a foreign country or possession; or
(5) A landing certificate issued by an official of the country or
possession where the beer has actually landed; or
(6) Any other evidence of exportation approved by the appropriate
ATF officer.
(b) Use as supplies on vessels and aircraft. The lading of beer for
use on vessels or aircraft will be fully evidenced by:
(1) For fishing vessels only, customs certification of lading and
use on Form 1582-B (5130.6) or Form 1689 (5130.12) under Sec. 252.23; or
(2) Customs certification of lading on Form 1582-B (5130.6) or Form
1689 (5130.12) under Secs. 252.264 or 252.282; or
(3) Any other evidence of exportation approved by the appropriate
ATF officer.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as
amended (26 U.S.C. 5053, 5055))
[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]
Retention of Records
Sec. 252.45 Retention of records.
File copies of forms required by this part to be retained by any
proprietor or claimant, and all records, documents, or copies of records
and documents supporting such forms, shall be preserved by such
proprietor or claimant for a period of not less than two years, and
during such period shall be
[[Page 17]]
available, during business hours, for inspection and the taking of
abstracts therefrom by appropriate ATF officers.
(Approved by the Office of Management and Budget under control number
1512-0385)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1381, as amended,
1390, as amended, 1395, as amended (26 U.S.C. 5114, 5367, 5415, 5555);
sec. 807, Pub. L. 96-39, 93 Stat. 283 (26 U.S.C. 5207))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D. ATF-172, 49
FR 14943, Apr. 16, 1984]
Penalties of Perjury
Sec. 252.48 Execution under penalties of perjury.
When a return, form, or other document called for under this part is
required by this part or in the instructions on or with the return,
form, or other document to be executed under penalties of perjury, it
shall be so executed, as defined in subpart B of this part, and shall be
signed by the proprietor, or other duly authorized person.
(68A Stat. 749 (26 U.S.C. 6065))
Subpart D--Bonds and Consents of Surety
Sec. 252.51 General.
Every person required by this part to file a bond or consent of
surety must prepare and execute it on the prescribed form and file it in
accordance with its instructions and the procedures of this part. The
procedures in parts 19, 24 or 25 of this chapter govern bonds covering
distilled spirits plants, bonded wine cellars and breweries,
respectively.
[T.D. ATF-477, 67 FR 18089, Apr. 15, 2002]
Sec. 252.52 Corporate surety.
(a) Surety bonds required by this part may be given only with
corporate sureties holding certificates of authority from, and subject
to the limitations prescribed by, the Secretary as set forth in the
current revision of Treasury Department Circular No. 570 (Companies
Holding Certificates of Authority as Acceptable Sureties on Federal
Bonds and as Acceptable Reinsuring Companies).
(b) Treasury Department Circular No. 570 is published in the Federal
Register annually as of the first workday of July. As they occur,
interim revisions of the circular are published in the Federal Register.
Copies may be obtained from the Audit Staff, Bureau of Government
Financial Operations, Department of the Treasury, Washington, DC 20226.
(July 30, 1947, ch. 390, 61 Stat. 648, as amended (6 U.S.C. 6, 7))
[T.D. ATF-92, 46 FR 46921, Sept. 23, 1981]
Sec. 252.52a Filing of powers of attorney.
Each bond, and each consent to changes in the terms of a bond, shall
be accompanied by a power of attorney authorizing the agent or officer
who executed the bond or consent to so act on behalf of the surety. The
appropriate ATF officer who is authorized to approve the bond, may, when
he deems it necessary, require additional evidence of the authority of
the agent or officer to execute the bond or consent.
(61 Stat. 648; 6 U.S.C. 6, 7)
[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835,
Apr. 15, 1975]
Sec. 252.52b Execution of powers of attorney.
The power of attorney shall be prepared on a form provided by the
surety company and executed under the corporate seal of the company. If
the power of attorney submitted is other than a manually signed
original, it shall be accompanied by certification of its validity.
(61 Stat. 648; 6 U.S.C. 6, 7)
[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835,
Apr. 15, 1975]
Sec. 252.53 Deposit of securities in lieu of corporate surety.
In lieu of corporate surety, the principal may pledge and deposit,
as surety for his bond, securities which are transferable and are
guaranteed as to both interest and principal by the United States, in
accordance with the provisions of 31 CFR part 225.
(61 Stat. 650; 6 U.S.C. 15)
[[Page 18]]
Sec. 252.54 Consents of surety.
Consents of surety to changes in the terms of bonds shall be
executed on Form 1533 by the principal and by the surety with the same
formality and proof of authority as is required for the execution of
bonds.
Sec. 252.55 Authority to approve bonds and consents of surety.
Appropriate ATF officers are authorized to approve all bonds and
consents of surety required by this part.
Sec. 252.56 Disapproval of bonds or consents of surety.
The appropriate ATF officer may disapprove any bond prescribed by
this part, or any consent of surety submitted in respect thereto, if the
principal or any person owning, controlling, or actively participating
in the management of the business of the principal shall have been
previously convicted, in a court of competent jurisdiction, of:
(a) Any fraudulent noncompliance with any provision of any law of
the United States, if such provision related to internal revenue or
customs taxation of spirits, wines, or beer, or if such offense shall
have been compromised with the person on payment of penalties or
otherwise; or
(b) Any felony under a law of any State, Territory, or the District
of Columbia, or the United States, prohibiting the manufacture, sale,
importation, or transportation of spirits, wine, beer, or other
intoxicating liquor.
(72 Stat. 1336, 1352, 1353, 1394; 26 U.S.C. 5062, 5175, 5177, 5551)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]
Sec. 252.57 Appeal to Director.
Where a bond or consent of surety is disapproved by the appropriate
ATF officer, the person giving the bond may appeal from such disapproval
to the Director, who will hear such appeal. The decision of the Director
shall be final.
(72 Stat. 1394; 26 U.S.C. 5551)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 252.58 Operations or unit bond--distilled spirits.
(a) Spirits. Where spirits are withdrawn without payment of tax, as
authorized in Sec. 252.91, from the bonded premises of a distilled
spirits plant on application of the proprietor thereof, the operations
or unit bond, given by the proprietor and approved under the provisions
of part 19 of this chapter, shall cover such withdrawals.
(b) Wine. Where, under the provisions of part 19 of this chapter, an
operations or unit bond has been given and approved to cover the
operations of a distilled spirits plant and an adjacent bonded wine
cellar, such bond shall cover the withdrawal of wine without payment of
tax, as authorized in Sec. 252.121, from such bonded wine cellar on
application for such withdrawal by the proprietor.
(c) Specially denatured spirits. Where specially denatured spirits
are withdrawn free of tax, as authorized in Sec. 252.151, from the
bonded premises of a distilled spirits plant on application of the
proprietor thereof, the proprietor shall file a consent of surety
extending the terms of the operations or unit bond, which consent shall
be in the following form:
The obligors agree to extend the terms of said bond to cover all
liability that may be incurred on all specially denatured spirits
withdrawn by the principal for exportation or transfer to a foreign-
trade zone, for which satisfactory evidence of exportation, or of
deposit in a foreign-trade zone, as required by law and regulations, is
not submitted to the appropriate ATF officer.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended
(26 U.S.C. 5175, 5214); Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as
amended (26 U.S.C. 5066); Sec. 805, Pub. L. 96-39, 93 Stat. 276 (26
U.S.C. 5173))
[T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]
Sec. 252.59 Bond, Form 5120.36.
Where the operations of a bonded wine cellar are covered by bond,
Form 5120.36, as provided in part 24 of this chapter, such bond shall
cover the withdrawal of wine without payment of tax, as authorized in
Sec. 252.121, from
[[Page 19]]
such bonded wine cellar by the proprietor of the bonded wine cellar.
(72 Stat. 1379, 1380; 26 U.S.C. 5354, 5362, as amended by T.D. ATF-299,
55 FR 25033, June 19, 1990]
Sec. 252.60 Brewer's bond, Form 5130.22.
When beer or beer concentrate is removed from a brewery without
payment of tax for any of the purposes authorized in Sec. 252.141, the
brewer's bond, Form 5130.22, furnished under the provisions of part 25
of this chapter will cover the removals.
(49 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72
Stat. 1334, as amended, 1388, as amended (26 U.S.C. 5053, 5401))
[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986]
Sec. 252.61 Bond, Form 2734 (5100.25).
If a specific lot of distilled spirits or wine is to be withdrawn
without payment of tax, as authorized in Sec. 252.91(a)(1), (2), (3),
(5), or Sec. 252.121(a), (b), (c), or (d), by a person other than the
proprietor of the bonded premises, a specific bond on ATF Form 2734
(5100.25) shall be filed by the exporter, as provided in Sec. 252.51.
The penal sum of the bond shall not be less than the tax prescribed by
law on the quantity of spirits or wine to be withdrawn. However, the
maximum penal sum of the bond shall not exceed $200,000 but in no case
shall the penal sum be less than $1,000.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended,
1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub.
L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))
[T.D. ATF-88, 46 FR 39815, Aug. 5, 1981]
Sec. 252.62 Bond, Form 2735 (5100.30).
(a) Requirement for bond. If a person other than the proprietor of
the bonded premises withdraws distilled spirits or wine without payment
of tax, as authorized by Sec. 252.91(a)(1), (2), (3), (5), or
Sec. 252.121(a), (b), (c), or (d), the exporter shall file a continuing
bond, ATF Form 2735 (5100.30), as provided in Sec. 252.51.
(b) Penal sum of bond. The penal sum of the bond shall be sufficient
to cover the tax on the maximum quantity of distilled spirits and wine
that may remain unaccounted for at any one time. However, the maximum
penal sum of the bond shall not exceed $200,000, but in no case shall
the penal sum be less than $1,000. Distilled spirits and wine withdrawn
for exportation, use on vessels or aircraft, transfer to a customs
bonded warehouse, or transfer to and deposit in a foreign-trade zone,
shall remain unaccounted for until the evidence of exportation, use,
deposit, transfer, or loss in transit has been filed with the
appropriate ATF officer.
(c) Apportioning bonds. If the bond, Form 2735 (5100.30), is in less
than the maximum penal sum, the principal shall apportion the bond, in
accordance with the requirements on the bond form. The exporter may
reapportion the bond coverage, if changing conditions make this
necessary, by filing a consent of surety, ATF Form 1533 (5000.18), in
accordance with its instructions.
(d) Withdrawal of wine for transfer to a customs bonded warehouse;
consent of surety. An exporter with a bond on Form 2735 (5100.30)
executed before April 1, 1981, shall obtain a consent of surety on Form
1533 (5000.18) before withdrawing wine without payment of tax from a
bonded wine cellar for transfer to a customs bonded warehouse. The
consent shall be executed in accordance with Sec. 252.54 and filed in
accordance with instructions on the form. Exporters with bonds executed
on or after April 1, 1981, do not need this consent of surety, because
such bonds automatically apply to withdrawals for transfer to customs
bonded warehouses.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1362, as amended,
1380, as amended, 1381, 1382 (26 U.S.C. 5175, 5214, 5362) sec. 3. Pub.
L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066, 5370, 5371))
[T.D. ATF-88, 46 FR 39815, Aug. 5, 1991, as amended by T.D. ATF-413, 64
FR 46845, Aug. 27, 1999]
Sec. 252.63 Bond, Form 2736 (5100.12).
Where the proprietor of a manufacturing bonded warehouse desires to
withdraw a specific lot of distilled spirits or wines without payment of
tax, as authorized in Sec. 252.25, he shall file, as provided in
Sec. 252.51, a specific bond, on Form 2736 (5100.12), to cover the
transportation of the distilled spirits or wines from the bonded
premises from
[[Page 20]]
which withdrawn to the manufacturing bonded warehouse. The penal sum of
such bond shall be not less than the tax prescribed by law on the
quantity of distilled spirits or wines to be withdrawn: Provided, That
the maximum penal sum of such bond shall not exceed $200,000, but in no
case shall the penal sum be less than $1,000.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended
(26 U.S.C. 5175, 5362))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]
Sec. 252.64 Bond, Form 2737.
(a) General. Where the proprietor of a manufacturing bonded
warehouse desires to withdraw distilled spirits and wines from time to
time without payment of tax, as authorized in Sec. 252.25, he shall
file, as provided in Sec. 252.51, a continuing bond on Form 2737
(5110.67). The bond shall be executed in a penal sum sufficient to cover
the tax at the rates prescribed by law on the maximum quantity of
distilled spirits and wines which may remain unaccounted for at any one
time: Provided, That the maximum penal sum of such bond shall not exceed
$200,000, but in no case shall the penal sum be less than $1,000.
Distilled spirits and wines withdrawn for transfer to a manufacturing
bonded warehouse shall remain unaccounted for until the evidence of
deposit in such warehouse, as required by this part, has been filed. The
proprietor shall, at the time of executing Form 2737 (5110.67),
designate the premises from which the withdrawals are to be made,
provided that, as to any one bond on Form 2737 (5110.67), such premises
shall be located in the same internal revenue region.
(b) Apportioning bonds. If the bond, Form 2737 (5110.67) is in less
than the maximum penal sum, the principal shall apportion the bond, in
accordance with the requirements on the bond form. The principal may
reapportion the bond coverage, if changing conditions make this
necessary, by filing a consent of surety, Form 1533, in accordance with
its instructions.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1352, as amended, 1380, as amended
(26 U.S.C. 5175, 5362))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979]
Sec. 252.65 Bond, Form 2738 (5110.68).
Whenever, under the provisions of this part, the claimant desires
drawback of tax on distilled spirits or wines to be exported, laden for
use on vessels or aircraft, or transferred to and deposited in a
foreign-trade zone, or, in the case of distilled spirits, transferred to
a customs bonded warehouse, as authorized in Secs. 252.171 and 252.211,
prior to the receipt of the certified copy of ATF Form 5110.30, or 1582-
A (5120.24), as the case may be, as prescribed by this part, he shall
file bond on Form 2738 (5110.68) as provided in Sec. 252.51. The penal
sum of the bond shall be sufficient to cover the amount of drawback
which will at any time constitute a charge against the bond:
Provided, That the maximum penal sum shall not exceed $200,000, but in
no case shall the penal sum be less than $1,000: Provided further, That
where the claimant desires to remove distilled spirits to a customs
bonded warehouse as provided in Sec. 252.171(d) and the terms of his
bond on Form 2738 (5110.68), then in force, do not cover such removals,
he shall either file a consent of surety on Form 1533 to extend the
terms of such bond to cover such removals or file a new bond on Form
2738 (5110.68).
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)
[T.D. 7112, 36 FR 8580, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-62, 44 FR 71721, Dec. 11, 1979; T.D.
ATF-198, 50 FR 8559, Mar. 1, 1985]
Sec. 252.66 Strengthening bonds.
In all cases where the penal sum of any bond becomes insufficient,
the principal shall either give a strengthening bond with the same
surety to attain a sufficient penal sum, or give a new bond to cover the
entire liability.
[[Page 21]]
Strengthening bonds will not be approved where any notation is made
thereon which is intended, or which may be construed, as a release of
any former bond, or as limiting the amount of any bond to less than its
full penal sum. Strengthening bonds shall show the current date of
execution and the effective date.
(72 Stat. 1352, 1394; 26 U.S.C. 5175, 5551)
Sec. 252.67 New or superseding bonds.
New bonds shall be required in case of insolvency or removal of any
surety, and may, at the discretion of the appropriate ATF officer, be
required in any other contingency affecting the validity or impairing
the efficiency of such bond. Executors, administrators, assignees,
receivers, trustees, or other persons acting in a fiduciary capacity,
continuing or liquidating the business of the principal, shall execute
and file a new bond or obtain the consent of the surety or sureties on
the existing bond or bonds. Where, under the provisions of Sec. 252.72,
the surety on any bond given under this subpart has filed an application
to be relieved of liability under said bond and the principal desires or
intends to continue the business or operations to which such bond
relates, he shall file a valid superseding bond to be effective on or
before the date specified in the surety's notice. If the principal does
not file a new or superseding bond when required, he shall discontinue
the operations intended to be covered by such bond forthwith. New or
superseding bonds shall show the current date of execution and the
effective date.
(72 Stat. 1336, 1362; 26 U.S.C. 5062, 5214)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]
Termination of Bonds
Sec. 252.70 Termination of bonds, Forms 2734 (5120.25) and 2736 (5100.12).
Bonds, Forms 2734 (5120.25) and 2736 (5100.12), covering a specific
lot of distilled spirits or wines withdrawn without payment of tax under
this part, will be canceled by the appropriate ATF officer on receipt by
him of ATF Form 5100.11 properly executed by the appropriate customs
official or armed services officer, as required by this part, evidencing
that the distilled spirits or wines have been duly exported, laden for
use on vessels or aircraft, deposited in a foreign-trade zone, or
deposited in a manufacturing bonded warehouse, as the case may be, or of
evidence satisfactory to him that the distilled spirits or wines have
been otherwise lawfully disposed of or accounted for: Provided, That all
liability under the bond to be canceled has been terminated.
(72 Stat. 1352; 26 U.S.C. 5175)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]
Sec. 252.71 Termination of bonds, Forms 2735 (5100.30), 2737 (5110.67), and 2738 (5110.68).
Continuing bonds, Forms 2735 (5100.30) and 2737 (5110.67), covering
distilled spirits and/or wines withdrawn from time to time without
payment of tax under this part and Form 2738 (5110.68) covering
allowance of claims for drawback on distilled spirits and/or wines
removed as authorized in Secs. 252.171 and 252.211, may be terminated as
to liability for future withdrawals or claims (a) pursuant to
application of surety as provided in Sec. 252.72, (b) on approval of a
superseding bond, or (c) on written notification to the appropriate ATF
officer by the principal of his discontinuance of withdrawals or claims,
as the case may be, under the bond. When no further withdrawals are to
be made under a bond on Form 2735 (5100.30) or 2737 (5110.67), or no
further claims for drawback are to be filed under bond Form 2738
(5110.68), the bond shall be canceled by the appropriate ATF officer in
the manner and subject to the conditions provided in Sec. 252.70.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended,
1353, as amended (26 U.S.C. 5062, 5175, 5176))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15,
1975,and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; T.D. ATF-
198, 50 FR 8559, Mar. 1, 1985]
[[Page 22]]
Sec. 252.72 Application of surety for relief from bond.
A surety on any bond given on Forms 2735 (5100.30), 2737 (5110.67),
or 2738 (5110.68), may at any time in writing notify the principal and
the appropriate ATF officer that he desires, after a date named, to be
relieved of liability under said bond. Such date shall be not less than
90 days after the date the notice is received by the appropriate ATF
officer. The surety shall also file with the appropriate ATF officer an
acknowledgment or other proof of service on the principal. If such
notice is not thereafter in writing withdrawn, the rights of the
principal as supported by said bond shall be terminated on the date
named in the notice, and the surety shall be relieved from liability to
the extent set forth in Sec. 252.73(b).
(68A Stat. 749, as amended (26 U.S.C. 6065); Sec. 201. Pub. L. 85-859,
72 Stat. 1336, as amended, 1352, as amended (26 U.S.C. 5062, 5175))
[T.D. 6895, 31 FR 11976, Sept. 13, 1966. Redesignated at 40 FR 16835,
Apr. 15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]
Sec. 252.73 Relief of surety from bond.
(a) Bonds, Forms 2734 (5120.25) and 2736 (5100.12). The surety on a
bond given on Form 2734 (5120.25) or Form 2736 (5100.12) shall be
relieved from his liability under the bond when the bond has been
canceled as provided for in Sec. 252.70.
(b) Bonds, Forms 2735 (5100.30), 2737 (5110.67), and 2738 (5110.68).
Where the surety on a bond given on Form 2735 (5100.30), Form 2737
(5110.67), or on Form 2738 (5110.68) has filed application for relief
from liability, as provided in Sec. 252.72, the surety shall be relieved
from liability for withdrawals or claims, as the case may be, made
wholly subsequent to the date specified in the notice, or on the
effective date of a superseding bond, if one is given. Notwithstanding
such relief, the liability of the surety shall continue until the
spirits and/or wines withdrawn without payment of tax or included in a
claim for drawback of tax allowed under the bond have been properly
accounted for.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended, 1352, as amended,
1353, as amended (26 U.S.C. 5062, 5175, 5176))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]
Sec. 252.74 Release of pledged securities.
Securities of the United States, pledged and deposited as provided
in Sec. 252.53, shall be released only in accordance with the provisions
of 31 CFR part 225. Such securities will not be released by the
appropriate ATF officer until liability under the bond for which they
were pledged has been terminated. When the appropriate ATF officer is
satisfied that they may be released, he shall fix the date or dates on
which a part or all of such securities may be released. At any time
prior to the release of such securities, the appropriate ATF officer may
extend the date of release for such additional length of time as he
deems necessary.
(61 Stat. 650; 6 U.S.C. 15)
Charges and Credits
Sec. 252.80 Charges and credits on bonds.
The withdrawal of liquors without payment of tax or of specially
denatured spirits free of tax, under the provisions of this part shall
constitute a charge against the bond under which the withdrawal is made
of (a) the tax on the liquors withdrawn or (b) of an amount equal to the
tax on specially denatured spirits withdrawn that will be due in the
event of failure to account for the specially denatured spirits as
provided in this part. The tax on liquors so withdrawn, or an amount
equal to the tax on specially denatured spirits so withdrawn that would
be due as set forth above, shall, on the required accounting for such
liquors or specially denatured spirits, constitute a credit to the bond
of such tax or amount equal to the tax, as the case may be. Provisions
regarding charges and credits on drawback bonds are contained in subpart
P of this part.
[[Page 23]]
Subpart E--Withdrawal of Distilled Spirits Without Payment of Tax for
Exportation, Use on Vessels and Aircraft, Transfer to a Foreign-Trade
Zone, or Transportation to a Manufacturing Bonded Warehouse
Sec. 252.91 General.
(a) Distilled spirits on which the internal revenue tax has not been
paid or determined may, subject to this part, be withdrawn from the
bonded premises of a distilled spirits plant without payment of tax for:
(1) Exportation;
(2) Use on the vessels or aircraft described in Sec. 252.21;
(3) Transfer to and deposit in a foreign-trade zone for exportation
or for storage pending exportation;
(4) Transportation to and deposit in a manufacturing bonded
warehouse; or
(5) Transfer to and deposit in a customs bonded warehouse as
provided for in Sec. 252.26.
(b) All withdrawals shall be made under the applicable bond
prescribed in subpart D of this part.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C.
5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C.
5066))
[T.D. ATF-51, 43 FR 24244, June 2, 1978, as amended by T.D. ATF-62, 44
FR 71722, Dec. 11, 1979]
Sec. 252.92 Application or notice, ATF Form 5100.11.
(a) Export, use on vessels and aircraft, and transfer to a foreign-
trade zone or a customs bonded warehouse. Application for or notice of
the withdrawal of distilled spirits without payment of tax for
exportation from the United States, or for use on vessels and aircraft,
or for transfer to a customs bonded warehouse or a foreign-trade zone,
shall be made by the exporter on ATF Form 5100.11. If the exporter is
not the proprietor of the bonded premises of the distilled spirits plant
from which the spirits are to be withdrawn, the exporter shall prepare
ATF Form 5100.11 as an application, in accordance with the instructions
on the form, and shall forward all copies of the form in accordance with
instructions for the form. If the exporter is the proprietor of the
bonded premises of the distilled spirits plant from which the spirits
are withdrawn, the exporter shall prepare ATF Form 5100.11 as a notice
in accordance with the instructions on the form.
(b) Manufacturing bonded warehouse. Application for the withdrawal
of distilled spirits without payment of tax for transportation to and
deposit in a manufacturing bonded warehouse shall be made by the
proprietor of such warehouse on ATF Form 5100.11, in accordance with the
instructions on the form.
(Approved by the Office of Management and Budget under control number
152-0190)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214);
Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066))
[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985]
Sec. 252.93 Carrier to be designated.
The name of the carrier or carriers to be used in transporting the
distilled spirits from the bonded premises of the distilled spirits
plant to the port of export, or to the customs bonded warehouse, or to
the manufacturing bonded warehouse, or to the foreign-trade zone, as the
case may be, shall be shown in the application. If the spirits are
shipped on a through bill of lading and all carriers handling the
spirits while in transit are not known, the name of the carrier to whom
the distilled spirits are to be delivered at the shipping premises shall
be shown.
(72 Stat. 1362, 84 Stat. 1965; 26 U.S.C. 5214, 5066)
[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]
Sec. 252.94 Containers.
Distilled spirits authorized to be withdrawn without payment of tax
from the bonded premises of a distilled spirits plant under the
provisions of this subpart may be withdrawn from such establishment in
such containers as may be authorized in part 19 of this chapter. Except
as otherwise provided
[[Page 24]]
in this part, the gauging, packing, bottling, casing, marking, closing
and reporting of distilled spirits prior to withdrawal shall be in
accordance with the provisions of part 19 of this chapter.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended,
1374, as amended (26 U.S.C. 5205, 5206, 5301))
[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979; as amended by T.D. ATF-206, 50
FR 23956, June 7, 1985]
Sec. 252.95 Change of packages for exportation.
Whenever the exporter desires to transfer distilled spirits from
packages filled in internal revenue bond to such other suitable packages
as may be desired for exportation, such change of packages shall be made
under the procedures of part 19 of this chapter, prior to the
preparation of ATF Form 5100.11 covering the removal of the distilled
spirits.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1360, as amended,
1374, as amended (26 U.S.C. 5205, 5206, 5301))
[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979]
Sec. 252.96 Approval of application.
When filed as an application, and ATF Form 5100.11 has been properly
executed, and the required bond has been filed in a sufficient amount,
the appropriate ATF officer shall approve the application on all copies
of the form and send them to the proprietor of the bonded premises from
which the spirits will be withdrawn.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))
[T.D. ATF-62, 44 FR 71722, Dec. 11, 1979, as amended by T.D. ATF-198, 50
FR 8559, Mar. 1, 1985]
Sec. 252.97 [Reserved]
Sec. 252.98 Inspection and regauge.
The proprietor shall inspect all containers to be withdrawn pursuant
to ATF Form 5100.11 and shall regauge all packages, except those which
are to be withdrawn on the filling or production gauge as authorized in
27 CFR part 19. If the withdrawal is to be made subject to regauge, the
proprietor shall prepare a package gauge record as provided in 27 CFR
part 19, enter the total proof gallons regauged on ATF Form 5100.11, and
attach a copy of the package gauge record to each copy of ATF Form
5100.11. If a proprietor wishes to reduce the proof of spirits contained
in packages to be withdrawn pursuant to ATF Form 5100.11, he shall make
such proof reduction incident to regauge of the packages.
(Approved by the Office of Management and Budget under control number
1412-0190 and 1512-0250)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5204))
[T.D. ATF-198, 50 FR 8559, Mar. 1, 1985]
Sec. 252.100 [Reserved]
Sec. 252.101 Packages to be stamped.
Each package and authorized bulk conveyance of spirits (including
tank cars and tank trucks but not pipelines) withdrawn without payment
of tax under the provisions of this subpart shall be marked with the
word ``EXPORT'' in accordance with the provisions of 27 CFR part 19
prior to its removal from the bonded premises.
(Approved by the Office of Management and Budget under control number
1512-0189)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended (26 U.S.C. 5205))
[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985; as amended by T.D. ATF-206, 50
FR 23956, June 7, 1985]]
Sec. 252.102 Bottles to have closures affixed.
Every bottle containing distilled spirits to be withdrawn under the
provisions of this subpart shall have a closure or other device affixed
in accordance with the provisions of part 19 of this chapter.
(Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301))
[T.D. ATF-206, 50 FR 23956, June 7, 1985]
Sec. 252.103 Export marks.
(a) General. In addition to the marks and brands required to be
placed on packages and cases of distilled spirits at the time they are
filled under the provisions of part 19 of this chapter, the proprietor
shall mark the word ``Export'' on the Government side of
[[Page 25]]
each case or Government head of each container before removal from the
bonded premises for any exportation authorized under this subpart.
(b) Exception. When containers are being removed to a contiguous
manufacturing bonded warehouse, the proprietor need not place the word
``Export'' on the containers if the appropriate ATF officer finds the
omission will not jeopardize the revenue.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C.
5214); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C.
5066))
[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981]
Sec. 252.104 Certificates of origin.
The entry of distilled spirits at ports in certain foreign countries
is permitted only upon the filing by the importer of an official
certificate showing the origin and age of such spirits. An appropriate
ATF officer may, on request of the applicant, furnish a certificate
showing the origin and age of the spirits described on ATF Forms 5100.11
or 5110.30. Such officer may require supporting documentation to be
provided by the applicant. Certificates of origin and age shall be
furnished on Form 2177 (5110.58). Form 2177 (5110.58) may also be issued
for distilled spirits removed to a foreign-trade zone, in which case the
number and location of the foreign-trade zone shall be shown on the form
in lieu of the name of the foreign country.
[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]
Sec. 252.105 Report of inspection and tax liability.
When the spirits are ready for shipment, the proprietor shall
execute his report of inspection and tax liability on all copies of ATF
Form 5100.11.
(72 Stat. 1362; 26 U.S.C. 5214)
[T.D. ATF-46, 42 FR 44773, Sept. 6, 1977, as amended by T.D. ATF-62, 44
FR 71723, Dec. 11, 1979]
Sec. 252.106 Consignment, shipment, and delivery.
The consignment, shipment, and delivery of distilled spirits
withdrawn without payment of tax under this subpart shall be made under
the provisions of subpart M.
(72 Stat. 1362; 26 U.S.C. 5214)
Sec. 252.107 Disposition of forms.
ATF Form 5100.11 and any accompanying package gauge record shall be
distributed by the proprietor in accordance with the instruction on ATF
Form 5100.11.
(Approved by the Office of Management and Budget under control number
1512-0250)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))
[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]
Losses
Sec. 252.110 Losses.
Where there has been a loss of distilled spirits while in transit
from the bonded premises of a distilled spirits plant to a port of
export, a customs bonded warehouse, a manufacturing bonded warehouse, a
vessel or aircraft, or a foreign-trade zone, the provisions of subpart O
of this part, with respect to losses of spirits after withdrawal without
payment of tax and to claims for remission of the tax thereon, shall be
applicable.
(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)
[T.D. 7112, 36 FR 8581, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975]
Return of Spirits to Bonded Premises
Sec. 252.115 General.
Spirits which have been lawfully withdrawn without payment of tax
under the provisions of this subpart for exportation, or for deposit in
a foreign-trade zone, a manufacturing bonded warehouse, or a customs
bonded warehouse, or for use on vessels and aircraft may, subject to the
requirements of Sec. 252.116, be returned:
(a) To the bonded premises of a distilled spirits plant for
redistillation; or
(b) To the bonded premises from which withdrawn, pending subsequent
removal for lawful purposes. However, such spirits may only be returned
before they are exported, deposited in a foreign-trade zone, a
manufacturing
[[Page 26]]
bonded warehouse, or a customs bonded warehouse, or laden as supplies
upon or used on vessels or aircraft, as the case may be.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365 as amended
(26 U.S.C. 5214, 5223); Sec. 3, Pub. L. 91-659, 84 Stat. 1365, as
amended (26 U.S.C. 5066))
[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]
Sec. 252.116 Notice of return of spirits withdrawn without payment of tax.
If a proprietor of a distilled spirits plant desires to return
spirits to his plant as provided in Sec. 252.115, he shall file a notice
with the appropriate ATF officer. A copy of the notice shall be prepared
for submission to the customs official, as required by Sec. 252.117. The
notice shall be executed under the penalties of perjury and shall show:
(a) Name, address, and plant number of the distilled spirits plant
to which the spirits are to be returned.
(b) Name, address, and plant number of the distilled spirits plant
which packaged or bottled the spirits.
(c) Name, address, and plant number of the distilled spirits plant
from which the spirits were withdrawn.
(d) Name and address of the principal on the bond under which the
spirits were withdrawn.
(e) Serial number of the ATF Form 5100.11 and the date withdrawn.
(f) Present location of spirits to be returned.
(g) Kind of spirits to be returned.
(h) Number, kind, and serial numbers of the containers to be
returned. In case of bottled spirits, the number and size of the bottles
in each case.
(i) Total quantity in proof gallons of spirits to be returned.
(j) Reason for return of spirits.
(k) Disposition to be made of returned spirits, i.e., redistillation
or return to bonded storage.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended
(26 U.S.C. 5214, 5223))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979]
Sec. 252.117 Responsibility for return of spirits.
The principal on the bond under which the spirits were withdrawn
without payment of tax shall be responsible for arranging the return of
the spirits to the distilled spirits plant receiving them. The principal
or his agent shall submit a copy of the notice required by Sec. 252.116
to the appropriate customs official. If the spirits are returned before
the ATF Form 5100.11 has been filed with the customs official, the
principal shall submit the form with the notice. The customs officer
shall, if the spirits are eligible for return under Sec. 252.115, accept
the notice as authority for the return of the spirits to the distilled
spirits plant identified in the notice. The customs officer shall retain
the notice and shall mark each copy of ATF Form 5100.11 ``Canceled'',
note the date thereon, return both copies to the principal, and, if the
spirits are in customs custody, release them for return. The principal
shall retain one copy of the canceled ATF Form 5100.11 and file one copy
with the appropriate ATF officer identified on the form.
(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended
(26 U.S.C. 5214, 5223))
[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979]
Sec. 252.118 Receipt of spirits.
The receipt, gauge, and disposition of the distilled spirits at the
distilled spirits plant shall be in accordance with the applicable
provisions of subpart U of part 19 of this chapter.
(Sec. 201, Pub. L. 85-859, 72 Stat 1362, as amended, 1365, as amended
(26 U.S.C. 5214, 5223))
[T.D. ATF-62, 44 FR 71723, Dec. 11, 1979]
Subpart F--Withdrawal of Wine Without Payment of Tax for Exportation,
Use on Vessels and Aircraft, Transfer to a Foreign-Trade Zone or to a
Customs Bonded Warehouse, or Transportation to a Manufacturing Bonded
Warehouse
Sec. 252.121 General.
Wine may, subject to this part, be withdrawn from a bonded wine
cellar, without payment of tax, for:
(a) Exportation;
(b) Use on the vessels and aircraft described in Sec. 252.21;
[[Page 27]]
(c) Transfer to and deposit in a foreign-trade zone for exportation
or for storage pending exportation;
(d) Transfer to and deposit in a customs bonded warehouse as
provided in Sec. 252.27; or
(e) Transportation to and deposit in a manufacturing bonded
warehouse.
All such withdrawals shall be made under the applicable bond prescribed
in subpart D.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1380; 19
U.S.C. 1309, 81c, 26 U.S.C. 5362, 7805; (sec. 201, Pub. L. 85-859. 72
Stat. 1381, 1382 (26 U.S.C. 5370, 5371)))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71723, Dec. 11, 1979; T.D. ATF-88, 46
FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982]
Sec. 252.122 Application or notice, ATF Form 5100.11.
(a) Export, use on vessels and aircraft, transfer to a customs
bonded warehouse, and transfer to a foreign-trade zone. Where the
exporter is not the proprietor of the bonded wine cellar from which the
wine is to be withdrawn, the exporter must make an application on ATF
Form 5100.11 for approval of the withdrawal. Where the exporter is the
proprietor of the bonded wine cellar from which the wine is to be
withdrawn, the exporter must, at the time of withdrawal of the wine,
prepare a notice of the withdrawal and shipment on ATF Form 5100.11. ATF
approval is not required if the exporter is the proprietor of the bonded
wine cellar from which the wine is to be withdrawn.
(b) Manufacturing bonded warehouse. The proprietor of the
manufacturing bonded warehouse must make an application on ATF Form
5100.11 to withdraw wine without payment of tax for transportation to
and deposit in such warehouse before withdrawal of the wine.
(c) Action by appropriate ATF officer. Where, under the provisions
of paragraphs (a) and (b) of this section, an ATF Form 5100.11 is
submitted to the appropriate ATF officer for approval, the appropriate
ATF officer shall, if satisfied that the application is in order and
that the applicant has on file a good and sufficient bond, approve the
application and forward it to the proprietor of the premises from which
the wines are to be withdrawn.
(d) Restriction on shipment. Where, under the provisions of
paragraphs (a) and (b) of this section, prior approval of ATF Form
5100.11 by the appropriate ATF officer is required, the proprietor of
the bonded wine cellar may not ship the wine until the approved ATF
Forms 5100.11 have been received by him. In such cases, the proprietor
of the bonded wine cellar shall, on removal of the wines, execute his
certificate of removal on ATF Form 5100.11.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362))
[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]
Editorial Note: For Federal Register citations affecting
Sec. 252.122, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Sec. 252.123 Export marks.
(a) General. In addition to the marks and brands required to be
placed on packages or cases of wine at the time they are filled under
the provisions of part 24 of this chapter, the proprietor shall mark the
word ``Export'' on the Government side of each case or Government head
of each container before removal from the bonded premises for any
exportation authorized under this subpart, including withdrawals under
26 U.S.C. 5362(c)(4).
(b) Exception. When containers are being removed to a contiguous
manufacturing bonded warehouse, the proprietor need not place the word
``Export'' on the containers if the appropriate ATF officer finds the
omission will not jeopardize the revenue.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C.
5362, 7805))
[T.D. ATF-82, 46 FR 21158, Apr. 9, 1981, as amended by T.D. ATF-88, 46
FR 39816, Aug. 5, 1981; 47 FR 20303, May 12, 1982; T.D. ATF-299, 55 FR
25033, June 19, 1990]
Sec. 252.124 Consignment, shipment, and delivery.
The consignment, shipment, and delivery of wines withdrawn without
payment of tax under this subpart shall be
[[Page 28]]
made under the provisions of subpart M of this part.
(72 Stat. 1380; 26 U.S.C. 5362)
Sec. 252.125 Disposition of forms.
On removal of the wines from the premises of the bonded wine cellar,
the proprietor shall forward one copy of ATF Form 5100.11 to the
appropriate ATF officer, retain one copy for his files, and deliver the
original and remaining copy to the officer to whom the shipment is
consigned, or in whose care it is shipped, as required by subpart M.
Where the shipment is for delivery for use on aircraft, the copy marked
``Consignee's Copy'', provided for in Sec. 252.122, shall be forwarded
to the airline company at the airport.
(72 Stat. 1380; 26 U.S.C. 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]
Sec. 252.126 Proprietor's report.
The records of the proprietor of the bonded wine cellar shall
reflect the quantity of wine removed without payment of tax under this
subpart, and he shall report the quantity of wine so removed on ATF F
5120.17.
(72 Stat. 1380; 26 U.S.C. 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-299, 55 FR 25033, June 19, 1990]
Sec. 252.127 Losses.
Where there has been a loss of wine while in transit from a bonded
wine cellar to a port of export, a foreign-trade zone, a vessel or
aircraft, a customs bonded warehouse, or a manufacturing bonded
warehouse, the provisions of subpart O of this part, with respect to
losses of wine after withdrawal without payment of tax and to claims for
remission of the tax thereon, shall be applicable.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382, (26 U.S.C. 5370, 5371))
[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]
Return of Wines to Bonded Wine Cellar
Sec. 252.130 General.
On application of the proprietor of a bonded wine cellar, wine which
has been lawfully withdrawn without payment of tax under the provisions
of this subpart for exportation, or for use on vessels and aircraft, or
for deposit in a foreign-trade zone, in a manufacturing bonded
warehouse, or in a customs bonded warehouse, may for good cause be
returned to the bonded wine cellar from which withdrawn, for storage
pending subsequent removal for lawful purposes. However, such wine must
be returned before being exported, laden as supplies or used aboard
vessels or aircraft, or deposited in a foreign-trade zone, in a
manufacturing bonded warehouse, or in a customs bonded warehouse, as the
case may be.
[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]
Sec. 252.131 Application for return of wines withdrawn without payment of tax.
Where a proprietor of a bonded wine cellar desires to return wines
to his bonded wine cellar as provided in Sec. 252.130, he shall submit a
written application, in duplicate, to the appropriate ATF officer, for
approval of the return of the wines. The application shall show.
(a) Name, address, and registry number of the bonded wine cellar.
(b) Name and address of the principal on the bond under which the
wines were withdrawn.
(c) Serial number of the ATF Form 5100.11 and the date withdrawn.
(d) Present location of wines to be returned.
(e) Kind of wines to be returned.
(f) Number, kind, and serial numbers of the containers to be
returned. In the case of bottled wines, the number and size of the
bottles in each case.
(g) Total quantity in wine gallons for each separate tax class of
wines to be returned.
(h) Reason for return of the wines.
[[Page 29]]
The application shall be executed under the penalties of perjury. On
approval of the application the appropriate ATF officer shall return
both copies to the proprietor, who, in turn, shall deliver them to the
exporter.
(72 Stat. 1380; 26 U.S.C. 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]
Sec. 252.132 Responsibility for return of wine.
The principal on the bond under which the wines were withdrawn
without payment of tax shall be responsible for arranging the return of
the wines to the bonded wine cellar from which they were withdrawn. In
case of emergency, the principal on the bond may arrange the return of
wines to bonded premises without an approved application, but such wines
shall be kept separate at the bonded premises and shall not be recorded
in the records and reports of the proprietor until an approved
application for such return has been obtained as provided in
Sec. 252.131. Such principal or his agent shall present to the
appropriate customs official the two copies of the approved application
authorizing the return unless the wines are returned before the ATF Form
5100.11 has been filed with the customs official. The customs officer
shall, if he finds that the wines are eligible for return under
Sec. 252.130, accept the approved application as authority for the
return of the wines to the bonded wine cellar noted on the application
and shall mark each copy of ATF Form 5100.11 ``Canceled'', note the date
thereon, affix a copy of the approved application to each of the
canceled ATF Forms 5100.11, return both ATF Forms 5100.11 to the
principal, and, where the wines are in his custody, release them for
return. The canceled ATF Forms 5100.11, with attachments, shall be
delivered by such principal or his agent to the proprietor of the bonded
wine cellar. When wines have been returned before the ATF Forms 5100.11
were filed with customs officials, the two copies of the approved
application shall be submitted, by the principal or his agent, to the
proprietor of the bonded wine cellar who shall cancel and date each copy
of ATF Form 5100.11 and affix copies of the approved application
thereto.
(72 Stat. 1380; 26 U.S.C. 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]
Sec. 252.133 Disposition of forms.
On receipt of the wines at the bonded wine cellar, the proprietor
shall endorse, on each copy of the approved application to return the
wines, the date received, the total amount in wine gallons of each tax
class of wine returned, and affix his signature. He shall forward the
original ATF Form 5100.11, with attached application, to the appropriate
ATF officer, and retain the remaining copy for his files. The storage,
disposition, and records pertaining to such returned wines shall be in
accordance with the applicable provisions of part 24 of this chapter.
(72 Stat. 1380; 26 U.S.C. 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]
Subpart G--Removal of Beer and Beer Concentrate Without Payment of Tax
for Exportation, Use as Supplies on Vessels and Aircraft, or Transfer to
a Foreign-Trade Zone
Source: T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, unless otherwise
noted.
Sec. 252.141 General.
(a) Beer. Beer may, subject to this part, be removed from the
brewery without payment of tax for:
(1) Export to a foreign country;
(2) Use as supplies on the vessels and aircraft described in
Sec. 252.21; or
(3) Transfer to and deposit in a foreign-trade zone for exportation
or for storage pending exportation.
(b) Beer concentrate. Concentrate, produced from beer under the
provisions of subpart R of part 25 of this chapter may, subject to this
part, be removed from the brewery without payment of tax for:
(1) Export to a foreign country; or
[[Page 30]]
(2) Transfer to and deposit in a foreign-trade zone for exportation
or for storage pending exportation.
(c) Bond. All removals of beer or beer concentrate will be made by
the brewer under the provisions of the brewer's bond, Form 5130.22 as
prescribed in Sec. 252.60.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C.
5053))
Sec. 252.142 Notice, Form 1689 (5130.12).
When a brewer intends to remove beer or beer concentrate without
payment of tax from a brewery for exportation or for transportation to
and deposit in a foreign-trade zone, or remove beer for use as supplies
on vessels and aircraft, the brewer shall prepare a notice on Form 1689
(5130.12) for each withdrawal. The brewer shall execute Form 1689
(5130.12) in quadruplicate, except when the shipment is for use on
aircraft the brewer shall execute an extra copy which will be marked
``Consignee's Copy.''
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C.
5053))
Sec. 252.143 Containers.
(a) Beer. Beer being exported, used as supplies on vessels and
aircraft, or transferred to and deposited in a foreign-trade zone,
without payment of tax, may be removed in bottles, kegs, or bulk
containers.
(b) Beer concentrate. Concentrate may not be removed for export, or
for transfer to and deposit in a foreign-trade zone, in containers of
the kind ordinarily used by brewers for the removal of beer for
consumption or sale.
Sec. 252.144 Export marks.
(a) General Requirement. In addition to the marks and brands
required to be placed on containers of beer or beer concentrate under
the provisions of part 25 of this chapter, the brewer shall mark the
word ``Export'' on each container or case of beer, or the words ``Beer
concentrate for export'' on each container of beer concentrate, before
removal from the brewery for any exportation authorized under this
subpart.
(b) Exceptions. A brewer need not apply the mark ``Export'' on cases
of beer being exported under the following circumstances:
(1) When beer is being directly exported by the brewer, and the
brewer can furnish documentation (such as an ocean or air freight bill
of lading, or a foreign landing certificate) that the beer was directly
exported to a foreign country;
(2) When cased beer is transferred from a brewery to a foreign-trade
zone for export or for storage pending exportation; or
(3) When cased beer is exported to the military.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C.
5053))
Sec. 252.145 Consignment, shipment and delivery.
The consignment, shipment and delivery of beer or beer concentrate
removed from a brewery without payment of tax under this subpart will be
in accordance with the applicable provisions of subpart M of this part.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
Sec. 252.146 Disposition of forms.
On removal of the beer or beer concentrate withdrawn under the
provisions of this subpart, the brewer shall forward one copy of Form
1689 (5130.12) to the appropriate ATF officer, retain one copy for the
files, and deliver the original and remaining copy to the officer to
whom the shipment is consigned, or in whose care it is shipped, as
required by subpart M of this part. When the shipment is for delivery
for use on aircraft, the copy marked ``Consignee's Copy,'' provided for
in Sec. 252.142, will be forwarded to the airline company at the
airport.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C.
5053))
[[Page 31]]
Sec. 252.147 Return of beer or beer concentrate.
Beer or beer concentrate removed without payment of tax under the
provisions of this subpart may be returned to be brewery from which
removed if lading of the beer or beer concentrate is delayed more than
the period provided in Sec. 252.262 or when the brewer has other good
cause for return. The brewer shall request the district director of
customs to release the beer or beer concentrate for return to the
brewery and, on such release, the district director of customs shall
endorse both copies of the appropriate Form 1689 (5130.12) to show the
release of the beer or beer concentrate and shall return the forms to
the brewer. On return of the beer or beer concentrate to the brewery,
the brewer shall record the quantity in the brewery daily records, mark
the two copies of Form 1689 (5130.12) returned by the district director
of customs, ``Canceled--Returned to Brewery,'' and forward one copy to
the appropriate ATF officer.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended
(26 U.S.C. 5053, 5056))
Sec. 252.148 Brewer's report.
The brewer's records shall reflect the quantity of beer or beer
concentrate removed without payment of tax under this subpart, and the
brewer shall report the quantity of beer or beer concentrate so removed
on Form 5130.9. The total quantity of beer or beer concentrate involved
in all export shipments returned during any reporting period will be
reported as a separate entry on Form 5130.9.
(Approved by the Office of Management and Budget under control number
1512-0052)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053))
[T.D. ATF-224, 51 FR 7699, Mar. 5, 1986, as amended by T.D. ATF-345, 58
FR 40358, July 28, 1993]
Sec. 252.149 Losses.
When there has been a loss of beer or beer concentrate while in
transit from the brewery to a port for exportation, or for lading as
supplies on a vessel or aircraft, or to a foreign-trade zone, the
provisions of subpart O of this part, with respect to losses are
applicable.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended
(26 U.S.C. 5051, 5053))
Sec. 252.150 Charges and credits on bond.
The removal of beer concentrate from the brewery without payment of
tax under this subpart will constitute a charge against the brewer's
bond, Form 5130.22, of an amount equal to the tax which would be due on
removal for consumption or sale, including penalties and interest, on
all beer used to produce the concentrate which is removed. The
satisfactory accounting for concentrate so removed will constitute a
credit to the bond.
[T.D. ATF-224, 51 FR 7698, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986]
(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended
(26 U.S.C. 5051, 5053))
Subpart H--Withdrawal of Specially Denatured Spirits, Free of Tax, for
Exportation or Transfer to a Foreign-Trade Zone
Sec. 252.151 General.
Specially denatured spirits may, under this part, be withdrawn from
the bonded premises of a distilled spirits plant, free of tax, for:
(a) Exportation; or
(b) Transfer to and deposit in a foreign-trade zone for exportation
or for storage pending exportation.
All such withdrawals shall be made under a consent of surety on the
proprietor's operations or unit bond, as prescribed in Sec. 252.58(c).
(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]
Sec. 252.152 Notice, ATF Form 5100.11.
Notice of withdrawal of specially denatured spirits, as authorized
in Sec. 252.151 shall be made on ATF Form 5100.11 by the proprietor of
the distilled
[[Page 32]]
spirits plant from which the denatured spirits are to be withdrawn.
[T.D. ATF-198, 50 FR 8560, Mar. 1, 1985]
Sec. 252.153 Withdrawal procedure.
The provisions of Secs. 252.93, 252.94, 252.98, 252.105, and 252.117
in respect of method of conveyance, authorized containers, gauging,
inspection, approval and shipment, report of removal, and disposition of
forms shall be applicable to specially denatured spirits to be withdrawn
under the provisions of this subpart.
(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)
[T.D. ATF-46, 42 FR 44774, Sept. 6, 1977]
Sec. 252.154 Export marks.
In addition to the marks and brands required to be placed on
packages and cases at the time they are filled under the provisions of
part 19 of this chapter, the proprietor shall mark the word ``Export''
on the Government side of each case or Government head of each container
before removal from the bonded premises for any exportation authorized
under this subpart.
(Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c);
sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended (26 U.S.C. 5214))
[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]
Sec. 252.155 Consignment, shipment, and delivery.
The consignment, shipment, and delivery of specially denatured
spirits withdrawn free of tax under this subpart shall be made under the
provisions of subpart M of this part.
(48 Stat. 999, as amended, 72 Stat. 1362; 19 U.S.C. 81c, 26 U.S.C. 5214)
Sec. 252.156 Losses.
Where there has been a loss of specially denatured spirits while in
transit from the bonded premises of a distilled spirits plant to a port
of export or a foreign-trade zone, the exporter shall file claim for
allowance of the loss in accordance with the provisions of subpart O of
this part.
Return of Specially Denatured Spirits to Bonded Premises
Sec. 252.160 General.
Specially denatured spirits, which have been lawfully withdrawn free
of tax under the provisions of this part for exportation, or for deposit
in a foreign-trade zone, may, subject to the requirements of
Sec. 252.161, be returned:
(a) To the bonded premises of a distilled spirits plant for
redistillation; or
(b) To the bonded premises of any distilled spirits plant pending
subsequent lawful withdrawal free of tax. However, such specially
denatured spirits may only be returned before they are exported, or
deposited in a foreign-trade zone. If the specially denatured spirits
are to be returned to bonded premises for storage without
redistillation, the proprietor shall also execute a consent of surety
Form 1533 to extend the terms of his operations or unit bond to cover
the return and storage of such specially denatured spirits.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended
(26 U.S.C. 5214, 5223))
[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985]
Sec. 252.161 Notice of return of specially denatured spirits.
If a proprietor of a distilled spirits plant desires to return
specially denatured spirits to his plant as provided in Sec. 252.160, he
shall file a notice with the appropriate ATF officer. A copy of the
notice shall be prepared for submission to the customs official, as
required by Sec. 252.162. The notice shall be executed under the
penalties of perjury and shall show:
(a) Name, address, and plant number of the distilled spirits plant
to which the specially denatured spirits are to be returned.
(b) Name, address, and plant number of the distilled spirits plant
from which the specially denatured spirits were withdrawn.
(c) Serial number of the ATF Form 5100.11 and the date withdrawn.
(d) Present location of specially denatured spirits to be returned.
(e) Description of the specially denatured spirits--kind, serial
numbers of containers, and quantity in wine gallons.
[[Page 33]]
(f) Reason for return of the specially denatured spirits.
(g) Disposition to be made of specially denatured spirits, i.e.
redistillation or return to processing on the bonded premises.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended
(26 U.S.C. 5214, 5223))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71724, Dec. 11, 1979; T.D. ATF-198, 50
FR 8561, Mar. 1, 1985]
Sec. 252.162 Responsibility for return of specially denatured spirits.
The principal on the bond under which the specially denatured
spirits were withdrawn free of tax shall be responsible for arranging
the return of the spirits to the distilled spirits plant receiving them.
The principal or his agent shall submit a copy of the notice required by
Sec. 252.161 to the appropriate customs official. If the specially
denatured spirits are returned before the ATF Form 5100.11 has been
filed with the customs official, the principal shall submit the form
with the notice. The customs officer shall, if the specially denatured
spirits are eligible for return under Sec. 252.160, accept the notice as
authority for the return of the specially denatured spirits to the
distilled spirits plant identified in the notice. The customs officer
shall retain the notice and shall mark each copy of ATF Form 5100.11
``Canceled'', note the date thereon, return both copies to the
principal, and, if the spirits are in customs custody, release them for
return. The principal shall retain one copy of the canceled ATF Form
5100.11 and file one copy with the appropriate ATF officer identified on
the form.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended
(26 U.S.C. 5214, 5223))
[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]
Sec. 252.163 Receipt of specially denatured spirits.
The receipt, gauge, and disposition of the specially denatured
spirits at the distilled spirits plant shall be in accordance with the
applicable provisions of subpart U of part 19 of this chapter.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1362, as amended, 1365, as amended
(26 U.S.C. 5214, 5223))
[T.D. ATF-62, 44 FR 71724, Dec. 11, 1979]
Subpart I--Exportation of Distilled Spirits With Benefit of Drawback
Sec. 252.171 General.
Distilled spirits manufactured, produced, bottled in bottles, packed
in containers, or packaged in casks or other bulk containers in the
United States on which an internal revenue tax has been paid or
determined, and which have been marked under the provisions of 27 CFR
part 19 and of this part, as applicable, especially for export with
benefit of drawback may be:
(a) Exported;
(b) Laden for use on the vessels or aircraft described in
Sec. 252.21; or
(c) Transferred to and deposited in a foreign-trade zone for
exportation or for storage pending exportation; or
(d) Transferred to and deposited in a customs bonded warehouse as
provided for in Sec. 252.26(b).
On receipt by the appropriate ATF officer of required evidence of
exportation, lading for use, or transfer, there shall be allowed to the
bottler (or packager) of the spirits, drawback equal in amount to the
tax found to have been paid or determined on the spirits.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C.
5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C.
5066))
[25 FR 5734, June 23, 1960, as amended by T.D. 7112, 36 FR 8581, May 8,
1971. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting
Sec. 252.171, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Filing of Notice and Removal
Sec. 252.190 Notice, ATF Form 5110.30.
Notice of shipment of distilled spirits for export, for use as
supplies on vessels or aircraft, for deposit in a foreign-trade zone, or
for deposit in a customs
[[Page 34]]
bonded warehouse, shall be prepared by the exporter on ATF Form 5110.30,
in accordance with the instructions on the form.
(48 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)
[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985]
Sec. 252.191 [Reserved]
Sec. 252.192 Packages of distilled spirits to be gauged.
Except for spirits which may be tax determined on the basis of the
original gauge, spirits in packages which are to be removed for export
with benefit of drawback, shall be gauged by the distilled spirits plant
proprietor prior to preparation of notice on ATF Form 5110.30. When
spirits in packages are gauged, a package gauge record shall be prepared
by the proprietor, as provided in 27 CFR part 19, and a copy of the
package gauge record shall be attached to each copy of ATF Form 5110.30
and considered a part of the claim.
(Approved by the Office of Management and Budget under control number
1512-0250 and 1512-0199)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985]
Sec. 252.193 Export marks.
In addition to the marks and brands required to be placed on
packages or other bulk containers and cases under the provisions of part
19 of this chapter, the exporter shall mark the word ``Export'' on the
Government side of each case or Government head of each container before
removal for export, for use on vessels or aircraft, or for transfer to a
foreign-trade zone or a customs bonded warehouse.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C.
5062); sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C.
5066))
[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981]
Secs. 252.194-252.195 [Reserved]
Sec. 252.195b Claims on spirits tax determined on and after January 1, 1980.
(a) Preparation. Claims for drawback of tax on spirits tax
determined on and after January 1, 1980, and withdrawn for any purpose
authorized by Sec. 252.171, shall be prepared in duplicate by the
bottler or packager on parts II and III of ATF Form 5110.30.
(b) Supporting documents. Each claim shall be supported by an
invoice, bill of lading or other document which identifies the date of
tax determination, unless the bill of lading required by Sec. 252.250
identifies this date. Additional supporting documents are required if
the claim covers distilled spirits products on which the claimed
drawback rate exceeds the rate of tax imposed by 26 U.S.C. 5001 or 7652
on each proof gallon or part thereof of distilled spirits produced in or
imported into the United States (e.g., a product containing alcoholic
flavoring materials on which drawback has been claimed by the
manufacturer of the material under 26 U.S.C. 5131-5134). For each such
product, the additional supporting documents shall consist of a copy of
each related dump and batch record, package gauge record as prescribed
in 27 CFR part 19, and/or bottling and packaging record. The appropriate
ATF officer may also require these or other supporting documents for any
distilled spirits product.
(c) Filing. One copy of the claim, with supporting documents, if
required, shall be filed with the appropriate ATF officer. The bottler
or packager shall retain the other copy on file.
(Approved by the Office of Management and Budget under control number
1512-0198)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-212, 50
FR 34123, Aug. 23, 1985]
Sec. 252.196 Consignment, shipment, and delivery.
The consignment, shipment, and delivery of distilled spirits removed
under this subpart for export, use on vessels or aircraft, transfer to a
customs bonded warehouse, or transfer to
[[Page 35]]
a foreign-trade zone, shall be in accordance with the applicable
provisions of subpart M of this part.
(72 Stat. 1336, 84 Stat. 1965; 26 U.S.C. 5062, 5066)
[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975]
Sec. 252.197 Return of spirits withdrawn for export with benefit of drawback.
When notice is filed by an exporter as provided in Sec. 252.198,
spirits on which the tax has been paid or determined, and which were
withdrawn especially for export with benefit of drawback as provided in
Sec. 252.171, but which spirits have not been laden for export, laden
for use, or deposited in a customs bonded warehouse or foreign-trade
zone, may for good cause be returned under the applicable provisions of
this part and 27 CFR part 19:
(a) To the bonded premises of the distilled spirits plant for
purposes authorized under 26 U.S.C.; or
(b) To a wholesale liquor dealer; or
(c) To a taxpaid storeroom.
The export marks on spirits returned under this section shall be removed
by obliteration, relabeling or recasing.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8561, Mar. 1, 1985, as amended by T.D. ATF-206, 50
FR 23956, June 7, 1985]
Sec. 252.198 Notice of return.
If an exporter desires to return spirits to a distilled spirits
plant, wholesale liquor dealer or taxpaid storeroom, as provided in
Sec. 252.197, he shall file a notice, executed under the penalties of
perjury, with the appropriate ATF officer. The notice shall be prepared
in triplicate for submission to the customs official as required in
Sec. 252.199. The notice shall show the:
(a) Name, address, and plant number of the distilled spirits plant
which packaged or bottled the spirits;
(b) Date and serial number of the ATF Form 5110.30 on which the
spirits were withdrawn;
(c) Present location of the spirits to be returned;
(d) Number, size and identification of the containers;
(e) Proof of spirits;
(f) Reason for the return; and
(g) Planned disposition of the returned spirits.
(Approved by the Office of Management and Budget under control number
1512-0206)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]
Sec. 252.199 Responsibility for return of spirits withdrawn for export with benefit of drawback.
The exporter shall be responsible for arranging the return of the
spirits under this subpart to the proprietor or wholesale liquor dealer
who will receive them. The exporter or his agent shall submit the
original and copies of the notice required by Sec. 252.198 to the
appropriate customs official. If the spirits are returned before ATF
Form 5110.30 has been filed with the customs official, the exporter
shall submit Form 5110.30 with the notice. The customs officer shall, if
the spirits are eligible for return under Sec. 252.197, accept the
notice as authority for the return of the spirits to the premises
identified in the notice. The customs official shall acknowledge receipt
on the notice, retain a copy, and return the original and one copy of
the notice to the exporter. The exporter shall retain the copy of the
notice and file the original of the notice with the appropriate ATF
officer.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]
Subpart J [Reserved]
Subpart K--Exportation of Wine With Benefit of Drawback
Sec. 252.211 General.
Wines manufactured, produced, bottled in bottles packed in
containers, or packaged in casks or other bulk containers in the United
States on which an internal revenue tax has been paid or determined, and
which are filled on premises qualified under this chapter to package or
bottle wines, may, subject to this part, be:
(a) Exported;
[[Page 36]]
(b) Laden for use on the vessels or aircraft described in
Sec. 252.21; or
(c) Transferred to and deposited in a foreign-trade zone for
exportation or for storage pending exportation.
On receipt by the appropriate ATF officer of required evidence of
exportation, lading for use, or transfer, there shall be allowed a
drawback equal in amount to the tax found to have been paid or
determined on the wines.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); Sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C.
5062))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-51, 43 FR 24245, June 2, 1978]
Sec. 252.212 Persons authorized.
Persons who have qualified under this chapter as proprietors of
distilled spirits plants, bonded wine cellars, or taxpaid wine bottling
houses, and persons who are wholesale liquor dealers as defined in
section 5112, I.R.C., and have paid the required tax as a wholesale
liquor dealer, are authorized to remove wines under the provisions of
this subpart.
(72 Stat. 1336; 26 U.S.C. 5062)
Sec. 252.213 [Reserved]
Sec. 252.214 Notice and claim, Form 1582-A (5120.24).
Claim for allowance of drawback of internal revenue taxes on wines
removed under the provisions of Sec. 252.211 and Sec. 252.212, shall be
prepared by the exporter on Form 1582-A (5120.24), in quadruplicate:
Provided, That where the withdrawal is for use on aircraft, an extra
copy, marked ``Consignee's Copy'', shall be prepared. Each Form 1582-A
(5120.24) shall be given, by the exporter, a serial number beginning
with ``1'' for the first day of January of each year and running
consecutively thereafter to December 31, inclusive.
(46 Stat. 690, as amended, 72 Stat. 1336; 19 U.S.C. 1309, 26 U.S.C.
5062)
Sec. 252.215 Certificate of tax determination, Form 2605 (5120.20).
Every claim for drawback of tax on Form 1582-A (5120.24) shall be
supported by a certificate, Form 2605 (5120.20), which shall be
executed, in duplicate, (a) by the person who withdrew the wine from
bond on tax determination, certifying that all taxes have been properly
determined on such wine, or (b) where the wine was bottled or packaged
after tax determination, by the person who did such bottling or
packaging, certifying that the wines so bottled or packaged were
received in taxpaid status and specifying from whom they were so
received. The appropriate ATF officer may require other evidence of tax
payment whenever such officer deems it necessary. The exporter is
responsible for securing Form 2605 (5120.20), properly executed, and
submitting the original of such form with the claim. The exporter shall
retain the copy of Form 2605 (5120.20) for his files.
(72 Stat. 1336; 26 U.S.C. 5062)
Sec. 252.216 Export marks.
In addition to the marks and brands required to be placed on
packages or other bulk containers and cases under the provisions of
parts 24 of this chapter, the exporter shall mark the word ``Export'' on
the Government side of each case or Government head of each container
before removal for export, for use on vessels or aircraft, or for
transfer to a foreign-trade zone.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C.
5062))
[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-299, 55
FR 25034, June 19, 1990; T.D. ATF-372, 61 FR 20725, May 8, 1996]
Sec. 252.217 Consignment, shipment, and delivery.
The consignment, shipment, and delivery of wines removed under this
subpart shall be made under the provisions of subpart M of this part.
(72 Stat. 1336; 26 U.S.C. 5062)
Sec. 252.218 Disposition of Forms 1582-A (5120.24).
On removal of the wines from the premises, the exporter shall
forward one copy of Form 1582-A (5120.24) to the
[[Page 37]]
appropriate ATF officer, retain one copy for his files, and deliver the
original and remaining copy to the officer to whom the shipment is
consigned, or in whose care it is shipped, as required by subpart M of
this part. Where the shipment is for delivery for use on aircraft, the
copy marked ``Consignee's Copy'', provided for in Sec. 252.214, shall be
forwarded to the airline company at the airport.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336; 19
U.S.C. 1309, 81c, 26 U.S.C. 5062)
Sec. 252.219 Return of wine withdrawn for export with benefit of drawback.
When notice is filed by an exporter as provided in Sec. 252.220,
wine on which the tax has been paid or determined, and which was
withdrawn especially for export with benefit of drawback as provided in
Sec. 252.211, but which wine has not been laden for export, laden for
use, or deposited in a foreign-trade zone, may for good cause be
returned under the applicable provisions of this part and 27 CFR part
24:
(a) To a taxpaid storeroom at a bonded wine celler; or
(b) To a wholesale liquor dealer.
The export marks on wines returned under this section shall be removed
from the containers.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985, as amended by T.D. ATF-344, 58
FR 40355, July 28, 1993]
Sec. 252.220 Notice of return.
If an exporter desires to return wine to a bonded wine cellar or
wholesale liquor dealer as provided in Sec. 252.219, he shall file a
notice, executed under the penalties of perjury, with the appropriate
ATF officer. The notice shall be prepared in triplicate for submission
to the customs official as required in Sec. 252.220a. The notice shall
show the:
(a) Name, address, and registration number of the bonded wine cellar
from which withdrawn;
(b) Date and serial number of the Form 1582-A (5120.24) on which the
wine was withdrawn;
(c) Present location of the wine to be returned;
(d) Number, size and identification of the containers;
(e) Total wine gallons for each tax class of wine; and
(f) Reason for the return.
(Approved by the Office of Management and Budget under control number
1512-0292)
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985; 50 FR 23410, June 4, 1985]
Sec. 252.220a Responsibility for return of wine withdrawn for export with benefit of drawback.
The exporter shall be responsible for arranging the return of wine
under this subpart to the proprietor or wholesale liquor dealer
receiving the wine. The exporter or his agent shall submit the original
and copies of the notice required by Sec. 252.220 to the appropriate
customs official. If the wine is returned before Form 1582-A (5120.24)
has been filed with the customs official, the exporter shall submit ATF
Form 1582-A with the notice. The customs officer shall, if the wine is
eligible for return under Sec. 252.219, accept the notice as authority
for the return of the wine to the premises identified in the notice. The
customs officer shall acknowledge receipt of the notice, retain a copy,
and return the original and one copy of the notice to the exporter. The
exporter shall retain the copy and file the original of the notice with
the appropriate ATF officer.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336, as amended (26 U.S.C. 5062))
[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]
Subpart L--Exportation of Beer With Benefit of Drawback
Sec. 252.221 General.
Beer brewed or produced in the United States and on which the
internal revenue tax has been paid may, subject to this part, be:
(a) Exported;
(b) Delivered for use as supplies on the vessels and aircraft
described in Sec. 252.21; or
[[Page 38]]
(c) Transferred to and deposited in a foreign-trade zone for
exportation or for storage pending exportation.
Claim for drawback of taxes found to have been paid may be filed only by
the producing brewer or his duly authorized agent. On receipt by the
appropriate ATF officer of required evidence of such exportation,
delivery for use, or transfer, there shall be allowed a drawback equal
in amount to the tax found to have been paid on such beer.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19
U.S.C. 1309, 81c, 26 U.S.C. 5055)
Sec. 252.222 Claim, Form 1582-B (5130.6).
Claim for allowance of drawback of internal revenue taxes on beer
brewed or produced in the United States shall be prepared on Form 1582-B
(5130.6), in quadruplicate, as required by this part. Each Form 1582-B
(5130.6) shall be given, by the person initiating the form, a serial
number beginning with ``1'' for the first day of January of each year
and running consecutively thereafter to December 31, inclusive.
(72 Stat. 1335; 26 U.S.C. 5055)
Sec. 252.223 Export marks.
In addition to the marks and brands required to be placed on kegs,
barrels, cases, crates or other packages under the provisions of part 25
of this chapter, the exporter shall mark the word ``Export'' on each
container or case before removal for export, for use on vessels or
aircraft, or for transfer to a foreign-trade zone.
(Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C.
1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C.
81c); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C.
5055))
[T.D. ATF-82, 46 FR 21159, Apr. 9, 1981, as amended by T.D. ATF-224, 51
FR 7700, Mar. 5, 1986]
Execution of Claims
Sec. 252.225 Removals of beer by brewer.
Where a brewer removes taxpaid beer from the brewery or from its
place of storage elsewhere for exportation, for lading for use as
supplies on vessels or aircraft, or for deposit in a foreign-trade zone,
he shall execute the notice and claim on Form 1582-B (5130.6). On
removal of the beer for shipment the brewer shall file one copy of Form
1582-B with the appropriate ATF officer, retain one copy for his files,
and immediately forward the original and one copy of the form:
(a) In case of shipments for export or for use as supplies on
vessels or aircraft, to the district director of customs at the port of
export; or
(b) In the case of shipments to the armed services of the United
States for export, to the commanding or supply officer to whom the
shipment is consigned; or
(c) In the case of shipments to a foreign-trade zone, to the customs
officer in charge of the zone.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19
U.S.C. 1309, 81c, 26 U.S.C. 5055)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 252.226 Removals of beer by agent on behalf of brewer.
Where proper power of attorney authorizing an agent to execute a
claim on behalf of the brewer has been filed with the appropriate ATF
officer, such agent may, for any of the purposes authorized in
Sec. 252.221, remove taxpaid beer from the brewery where produced or
from its place of storage elsewhere, and execute the notice and claim on
Form 1582-B (5130.6) on behalf of the brewer. On removal of the beer,
such agent shall dispose of Form 1582-B in accordance with the
applicable procedure set forth in Sec. 252.225.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19
U.S.C. 1309, 81c, 26 U.S.C. 5055)
Sec. 252.227 Removals of beer by persons other than the brewer or agent of the brewer.
Where there is a removal of taxpaid beer by a person other than the
brewer or the agent of the brewer for any of the purposes authorized in
Sec. 252.221, such person shall execute the notice, only, on Form 1582-B
(5130.6). Where the removal consists of the products of more than one
brewer, separate Forms 1582-B shall be prepared for the products of each
brewer. On removal of the
[[Page 39]]
beer for shipment such person shall forward two copies of Form 1582-B
(5130.6) to the producing brewer, and immediately forward the original
and one copy of the form as prescribed in Sec. 252.225(a), (b), or (c),
as the case may be. On receipt of the two copies of Form 1582-B (5130.6)
from the exporter, the brewer shall, if he wishes to claim drawback on
the beer covered thereby, execute the claim for drawback on both copies
of the form, file one copy of the claim with the appropriate ATF
officer, and retain the remaining copy for his files.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335; 19
U.S.C. 1309, 81c, 26 U.S.C. 5055)
Consignment, Shipment, and Delivery
Sec. 252.230 Consignment, shipment, and delivery.
The consignment, shipment, and delivery of taxpaid beer removed
under this subpart shall be made under the provisions of subpart M of
this part.
(72 Stat. 1335; 26 U.S.C. 5055)
Subpart M--Shipment or Delivery for Export
Consignment
Sec. 252.241 Shipment for export, or for use on vessels.
All liquors and specially denatured spirits intended for export or
liquors intended for use as supplies on vessels shall be consigned to
the district director of customs at the port of exportation, or port of
lading for supplies on vessels, except that when the shipment is for
export to a contiguous foreign territory it shall be consigned to the
foreign consignee at destination in care of the district director of
customs at the port of export.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 252.242 Shipment for use on aircraft.
(a) Distilled spirits and wine. All distilled spirits and wines
intended for use on aircraft shall be consigned to the airline at the
airport from which the aircraft will depart in international travel, in
care of the district director of customs. On receipt of the distilled
spirits or wines they shall be stored at the airport under customs
custody until laden on aircraft.
(b) Beer. Beer intended for use on aircraft shall be consigned to
the district director of customs at the port of lading.
(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 1309, 26
U.S.C. 5214, 5362)
[25 FR 5734, June 23, 1969, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 252.243 Shipment to armed services.
On removal of distilled spirits, wines, or beer for export to the
armed services of the United States, the shipment shall be consigned to
the commanding officer or supply officer at the supply base or other
place of delivery.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
Sec. 252.244 Shipment to manufacturing bonded warehouse.
Distilled spirits and wines withdrawn for shipment to a
manufacturing bonded warehouse shall be consigned to the proprietor of
such warehouse in care of the customs officer in charge of the
warehouse.
(72 Stat. 1362, 1380; 26 U.S.C. 5214, 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979]
Sec. 252.244a Shipment to a customs bonded warehouse.
Distilled spirits and wine withdrawn for shipment to a customs
bonded warehouse shall be consigned in care of the customs officer in
charge of the warehouse.
(Sec. 3, Pub. L. 91-659, 84 Stat. 1965, as amended (26 U.S.C. 5066);
sec. 2, Pub. L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]
Sec. 252.245 Shipment to foreign-trade zone.
Where distilled spirits (including specially denatured spirits),
wines, or beer, are transferred to a foreign-trade
[[Page 40]]
zone for exportation or for storage pending exportation, the shipment
shall be consigned to the Zone Operator in care of the customs officer
in charge of the zone.
(48 Stat. 999, as amended, 72 Stat. 1362, 1380; 19 U.S.C. 81c, 26 U.S.C.
5214, 5362)
Sec. 252.246 Delivery for shipment.
The proprietor or exporter may deliver the shipment directly to the
consignees designated in Secs. 252.241 through 252.245, or he may
deliver it to a carrier for transportation and delivery to such
consignees, or, when the exportation is to a contiguous foreign country,
to the foreign consignee.
(72 Stat. 1334, 1335, 1336, as amended, 1362, 1380; 26 U.S.C. 5053,
5055, 5062, 5214, 5362)
[T.D. 7002, 34 FR 1599, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr.
15, 1975]
Sec. 252.247 Change in consignee.
Where a change of consignee is desired after the liquors (including
specially denatured spirits) have been removed from the shipping
premises, the exporter shall notify the appropriate officer to whom the
shipment is required by Secs. 252.241-252.245 to be consigned or in
whose care it is required to be shipped, and forward a copy of such
notification to the appropriate ATF officer. Such notice shall identify
the withdrawal or claim form, as the case may be, covering the shipment.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
Bills of Lading
Sec. 252.250 Bills of lading required.
A copy of the export bill of lading covering transportation from the
port of export to the foreign destination, or a copy of the through bill
of lading to the foreign destination, if so shipped, covering the
acceptance of the shipment by a carrier for such transportation, shall
be obtained and filed by the claimant or exporter with the appropriate
ATF officer. Where the shipment consists of distilled spirits for
deposit in a customs bonded warehouse, or distilled spirits or wines,
for deposit in a foreign-trade zone, with benefit of drawback, and the
principal has filed bond, Form 2738 (5110.68), a copy of the
transportation bill of lading covering the shipment shall be obtained
and filed by the claimant or exporter with the appropriate ATF officer:
Provided, That such transportation bill of lading will not be required
when delivery is made directly to the foreign-trade zone or the customs
bonded warehouse by the shipper. Bills of lading shall be signed by the
carrier or by an agent of the carrier and shall contain the following
minimum information:
(a) As to spirits specially denatured spirits, and wines:
(1) The name of the exporter (if different from the shipper),
(2) The name and address of the consignee (foreign consignee in case
of export or through bill of lading),
(3) The number of packages or cases,
(4) The serial number of the ATF Form 5100.11, 5110.30, or 1582-A
(5120.24), as the case may be, and
(5) The total quantity in wine gallons or liters,
(b) As to beer:
(1) The name of the shipper,
(2) The name and address of the consignee (foreign consignee in case
of export or through bill of lading), and
(3) The number and size of containers.
Where a copy of an export bill of lading or a copy of the through bill
of lading is required and is not obtainable, a certificate given by an
agent of such carrier, as prescribed in Sec. 252.253, may be procured
and transmitted by the claimant or exporter to the appropriate ATF
officer.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, 1335, 1336, as amended, 1362,
1380, (26 U.S.C. 5053, 5055, 5062, 5214, 5362); sec. 3(a), Pub. L. 91-
659, 84 Stat. 1965 (26 U.S.C. 5066))
[T.D. 7002, 34 FR 1599, Feb. 1, 1969, as amended by 36 FR 8583, May 8,
1971. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting
Sec. 252.250, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Sec. 252.251 Railway express receipts.
Where the exportation is to a contiguous foreign country and the
shipment is by railway express, a receipt issued by the railway express
agency may be
[[Page 41]]
accepted in lieu of an export bill of lading if the receipt furnishes
all of the information required in an export bill of lading.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
Sec. 252.252 Air express or freight bills of lading.
Where the exportation is made by air express or air freight, a bill
of lading issued by the conveying airline is considered for the purpose
of this part to be an export bill of lading if it otherwise conforms to
the requirements of Sec. 252.250.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
Sec. 252.253 Certificate by export carrier.
A certificate, executed under the penalties of perjury, by an agent
or representative of the export carrier, showing actual exportation of
the liquors (including specially denatured spirits) may be furnished by
an exporter as evidence of exportation. The certificate shall contain a
description of the shipment, including the serial number of the
withdrawal form, or the claim and entry form, as the case may be, the
name of the exporter, the name of the consignee, the date received, the
place where received by such carrier, and the name of the carrier from
which received.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
Subpart N--Proceedings at Ports of Export
Sec. 252.261 Notice to district director of customs.
On arrival at the port of exportation, of distilled spirits
(including specially denatured spirits), wines, or beer, withdrawn or
shipped for exportation or for use on vessels or aircraft, the exporter
or his agent shall immediately notify the director of the port. At the
same time, or prior thereto, the exporter or his agent shall file with
the director two copies of the application, claim, or notice, ATF Form
5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12),
as the case may be, covering the shipment: Provided, That where the
shipment is for direct exportation, such forms shall be filed at least
six hours prior to lading.
(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting
Sec. 252.261, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Sec. 252.262 Delay in lading at port.
If, on arrival of a shipment withdrawn for export without payment of
tax or free of tax, the exporting vessel is not prepared to receive the
shipment, the district director of customs may permit such shipment to
remain in possession of a carrier for a period not exceeding 30 days.
Storage elsewhere for a like cause, and not exceeding the same period,
may be approved by the district director of customs. In the event of
further delay, the facts shall be reported to the appropriate ATF
officer, who shall issue appropriate instructions concerning the
disposition of the shipment.
(72 Stat. 1334, 1362, 1380; 26 U.S.C. 5053, 5214, 5362)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 252.263 [Reserved]
Sec. 252.264 Lading for exportation.
On receipt of the notifcation required in Sec. 252.261, the district
director of customs shall deliver both copies of the application, claim,
or notice, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6),
or 1689 (5130.12), as the case may be, covering the shipment, together
with any forms which may be attached thereto, to a customs officer for
inspection and supervision of lading. Such shipment shall be subject to
the same requirements for inspection and supervision of lading at the
port of exportation as may be required by Customs Regulations (19 CFR
chapter I) in the case of similar shipments of imported merchandise to
be exported in customs bond. When an inspection of
[[Page 42]]
the shipment is made before it is laden on board the exporting carrier
and such inspection discloses any discrepancy, the customs officer shall
make note of the nature and extent of the discrepancy on each copy of
the application, claim, or notice, ATF Form 5110.11, 5110.30, 1582-A
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be, and
where the discrepancy involves one or more packages of distilled spirits
or wine, he shall prepare customs Form 6001 in accordance with the
instructions in Sec. 252.291, and attach the original and copy of
customs Form 6001 to the original and copy of the appropriate
transaction form. The forms shall be disposed of according to the
instructions thereon.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended,
1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C. 5053,
5055, 5062, 5214, 5362))
[T.D. ATF-198, 50 FR 8562, Mar. 1, 1985]
Editorial Note: For Federal Register citations affecting
Sec. 252.264, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Sec. 252.265 Evidence of fraud.
If the customs inspection discloses evidence of fraud, the customs
officer shall detain the merchandise and notify the district director of
customs who shall report the facts forthwith to the appropriate ATF
officer. The appropriate ATF officer shall make investigation and take
such action as the facts may warrant. Where the detained merchandise has
been withdrawn for transfer and deposit in a manufacturing bonded
warehouse, the merchandise shall be deemed not to have been deposited in
said warehouse, and the designated officer shall hold in abeyance the
processing of ATF Form 5100.11 until advised by the district director of
customs that the detained merchandise may be entered for deposit. Where
the detained merchandise has been withdrawn or entered for deposit in a
foreign-trade zone or a customs bonded warehouse, it shall be deemed to
not have been deposited in the zone or the warehouse and the customs
officer shall hold in abeyance the processing of the application,
notice, or claim, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B
(5130.6), or 1689 (5130.12), as the case may be, and Zone Form D, until
advised by the district director of customs that the detained
merchandise may be entered for deposit.
(48 Stat. 999, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380, 84
Stat. 1965; 19 U.S.C. 81c, 26 U.S.C. 5053, 5055, 5062, 5214, 5362, 5066)
[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-62, 44 FR 71725, Dec. 11, 1979]
Sec. 252.266 Release of detained merchandise.
When any merchandise has been detained under the provisions of
Sec. 252.265, the district director of customs shall not release such
merchandise until he is advised so to do by the appropriate ATF officer.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 252.267 Exportation from interior port.
Where a shipment made under this part is to be exported to a
contiguous foreign country through a frontier port, and it is desired to
avoid the delay of customs inspection at such port, the shipment may,
subject to approval of the district director of customs, be entered for
exportation at an interior customs port. Subject to such approval, the
inspection and supervision of lading, and the affixing of customs seals,
shall be done by a customs officer in accordance with the provisions of
U.S. Customs regulations (19 CFR chapter I). On completion of the
lading, the seals shall be affixed and the customs officer shall execute
the certificate of lading on both copies of the application, notice, or
claim, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6) or
1689 (5130.12), as the case may be, and forward them, with attachments
(if any), to the district director of customs at the interior port of
entry. The district director of customs shall forward both copies of the
form, with attachments (if any), to the customs officer at the frontier
port. When the customs officer at the frontier port is satisfied that
the shipment as described on the appropriate form
[[Page 43]]
has been exported, he shall execute his certificate on both copies of
the form and return them with attachments (if any), to the district
director of customs at the interior port of entry.
[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]
Sec. 252.268 Receipt for liquors for use on vessels or aircraft.
Where liquors are withdrawn or removed for use on vessels or
aircraft, the exporter shall procure and forward to the appropriate ATF
officer, a receipt executed under the penalties of perjury by the master
or other authorized officer of the vessel, steamship company, or
airline, as the case may be. The receipt shall give the number of
containers, the serial numbers of the containers (if any), and the
quantity received, and shall show that the liquors are in customs
custody and have been or will be laden on board the vessel or aircraft,
that they will be lawfully used on board the vessel or aircraft, and
that no portion of the shipment has been or will be unladen in the
United States or any of its territories or possessions. A receipt is not
required, in the case of any shipment for use on vessels, when the
liquors are laden on vessels of war, or, in cases other than supplies
for vessels employed in the fisheries, where the amount of the tax on
the liquors does not exceed $200. In the case of supplies for vessels
employed in the fisheries, compliance with the provisions of Sec. 252.22
is also required.
(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, as amended, 1362,
1380; 19 U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
[T.D. 7002, 34 FR 1600, Feb. 1, 1969. Redesignated at 40 FR 16835, Apr.
15, 1975]
Sec. 252.269 Certification by district director of customs.
(a) Exportation. When the district director of customs is satisfied
that merchandise described on the application, notice, or claim, ATF
Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689
(5130.12), as the case may be, has been laden and cleared for export, he
shall execute his certificate of lading and clearance on both copies of
the form.
(b) Distilled spirits and wines as supplies on vessels and aircraft.
When the district director of customs is satisfied that the distilled
spirits and wines described on ATF Form 5100.11, 5110.30, or 1582-A
(5120.24), as the case may be, have been duly laden for use on vessels
and aircraft, and that proper accounting for such spirits or wines has
been submitted to him as required by this part, he shall execute his
certificate of lading for use on both copies of the form.
(c) Disposition of forms. After executing his certificate, the
district director of customs shall forward the original of ATF Form
5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6), or 1689 (5130.12),
as the case may be, with attachments (if any), to the appropriate ATF
officer designated on the form, and retain the remaining copy, with any
attached forms, for his files.
(46 Stat. 690, as amended, 72 Stat. 1334, 1335, 1336, 1362, 1380; 19
U.S.C. 1309, 26 U.S.C. 5053, 5055, 5062, 5214, 5362)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting
Sec. 252.269, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
Receipt by Armed Services
Sec. 252.275 Receipt by armed services.
When liquors which have been withdrawn or removed for export to the
armed services of the United States are received at the supply base or
other designated place of delivery, the officer to whom consigned, or
other authorized supply officer, at the supply base or other place of
delivery shall enter the quantity of liquors received on both copies of
the application, notice, or claim, ATF Form 5100.11, 5110.30, 1582-A
(5120.24), 1582-B (5130.6), or 1689 (5130.12), as the case may be. After
signing the form, he shall forward the original with attachments, if
any, to the appropriate ATF officer designated
[[Page 44]]
on the form, and retain the other copy for his records.
(72 Stat. 1334, 1335, 1336, 1362, 1380; 26 U.S.C. 5053, 5055, 5062,
5214, 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]
Lading for Use on Aircraft
Sec. 252.280 Distilled spirits and wines.
When an airline desires to withdraw distilled spirits or wines from
its stock being held at the airport under customs custody, for use on a
particular aircraft, a requisition in triplicate shall be prepared for
presentation to the customs officer. The requisition shall show the
flight number, the registry number of the aircraft on which the
distilled spirits or wines are to be laden, the country for which the
aircraft is to be cleared, the date of departure of the aircraft, and
the brand, kind, and quantity of distilled spirits or wines. Where the
distilled spirits or wines are contained in kits which have been
previously prepared while under customs custody, the kit number shall
also be shown on the requisition. Where the kits are not prepared and
the distilled spirits or wines are withdrawn for direct lading on
aircraft, the requisition shall be serially numbered in lieu of the
insertion of the kit number. When the distilled spirits or wines are
withdrawn and laden aboard the aircraft, the lading shall be verified by
the customs officer by an appropriate stamp or notation on the
requisition. One copy of the requisition shall be retained by the
customs officer who certifies to the lading for attachment to the
outgoing manifest. The other two copies shall be delivered to the
airline which shall retain both copies until the return of the flight.
In case any of the distilled spirits or wines are removed from the
aircraft on its return, they shall be returned to customs custody,
appropriate notation made on both copies of the requisition retained by
the airline and one copy shall be delivered to the customs officer for
attachment to the incoming manifest. The remaining copy shall be
retained by the airline.
(Approved by the Office of Management and Budget under control number
1512-0384)
(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26
U.S.C. 5062, 5214, 5362)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984]
Sec. 252.281 Certificate of use for distilled spirits and wines.
When all of the distilled spirits or wines represented by a single
application, notice, or claim, ATF Form 5100.11, 5110.30, or 1582-A
(5120.24), as the case may be, have been withdrawn from customs custody
and laden and used on aircraft, the airline shall prepare a certificate
of use on which are itemized all the requisitions pertaining to such
distilled spirits or wines. The certificate shall be executed under the
penalties of perjury by an officer of the airline and shall show the
name of the exporter, the entry number, the brand and kind of distilled
spirits or wines, and the number of bottles to be accounted for; and, as
to each requisition, the requisition (or kit) number, the date laden,
the registry number of the aircraft, the country for which the aircraft
was cleared, and the number of bottles used. When completed, the
certificate shall be presented to the customs officer at the airport who
shall then execute his certificate on both copies of the appropriate
application, notice, or claim, ATF Form 5100.11, 5110.30, or 1582-A
(5120.24), as the case may be, noting thereon any exception, such as
shortages or breakage. The customs officer shall then attach the
certificate of use to the copy of the appropriate form and forward both
copies of the form to the district director of customs.
(46 Stat. 690, as amended, 72 Stat. 1336, 1362, 1380; 19 U.S.C. 1309, 26
U.S.C. 5062, 5214, 5362)
[25 FR 5734, June 23, 1960, as amended by T.D. 7006, 34 FR 2251, Feb.
15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting
Sec. 252.281, see the List of CFR Sections Affected in the Finding Aids
section of this volume.
[[Page 45]]
Sec. 252.282 Beer.
When beer has been laden on board the aircraft for use as supplies,
the customs officer shall execute his certificate on both copies of the
Form 1582-B (5130.6) or Form 1689 (5130.12), as the case may be, forward
the original to the appropriate ATF officer designated on the form, and
retain the copy for his files.
(46 Stat. 690, as amended, 72 Stat. 1334, 1335; 19 U.S.C. 1309, 26
U.S.C. 5053, 5055)
Receipt in Manufacturing Bonded Warehouse
Sec. 252.285 Receipt in manufacturing bonded warehouse.
On receipt of the distilled spirits or wines, the related ATF Form
5100.11 (with any attachments), such inspection as is necessary will be
made to establish that the shipment corresponds with its description on
ATF Form 5100.11 (and any attachments) and customs Form 6001 will be
prepared according to Sec. 252.291. Any discrepancy disclosed by the
inspection and gauge will be noted on each copy of ATF Form 5100.11.
When the shipment corresponds with the description of ATF Form 5100.11
(and any attachments), the certificate of deposit will be executed on
both copies of ATF Form 5100.11 and the original of ATF Form 5100.11
(and any attachments) and the original of his customs Form 6001 will be
forwarded to the appropriate ATF officer. The remaining copies shall be
kept on file.
(Sec. 201. Pub. L. 85-859, 72 Stat. 1362, as amended, 1380, as amended
(26 U.S.C. 5214, 5362))
[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]
Receipt in Customs Bonded Warehouse
Sec. 252.286 Receipt in customs bonded warehouse.
On receipt of the distilled spirits or wine and the related ATF Form
5100.11 or 5110.30 as the case may be, the customs officer in charge of
the customs bonded warehouse shall make such inspection as is necessary
to establish to his satisfaction that the shipment corresponds with the
description thereof on the appropriate form. The customs officer shall
note on each copy of the Form 5100.11 or 5110.30, as the case may be,
any deficiency in quantity or discrepancy between the merchandise
inspected and that described on the form. Where the inspection discloses
no loss, or where a loss is disclosed and there is no evidence to
indicate fraud, the officer shall execute his certificate of deposit on
both copies of the form, forward the original as required by the
instructions on the form, and retain the remaining copy for his files.
(Sec. 3(a), Pub. L. 91-659, 84 Stat. 1965 (26 U.S.C. 5066); sec. 2, Pub.
L. 96-601, 94 Stat. 3495 (26 U.S.C. 5362))
[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]
Receipt in Foreign-Trade Zone
Sec. 252.290 Receipt in foreign trade zone.
On receipt at the zone, the shipment shall be inspected by the
customs officer in charge of the zone who shall determine if the
shipment agrees with the description thereof on the application, notice,
or claim, ATF Form 5100.11, 5110.30, 1582-A (5120.24), 1582-B (5130.6),
or 1689 (5130.12), as the case may be. If the customs officer regauges
spirits or wine in the course of his inspection, he shall prepare
customs Form 6001 according to Sec. 252.291. The customs officer shall
note on both copies of the ATF Form 5100.11, 5110.30, 1582-A (5120.24),
1582-B (5130.6), or 1689 (5130.12), as the case may be any deficiency in
quantity or discrepancy between the merchandise inspected or gauged and
that described in the form. Where the inspection or gauge discloses no
loss, or where a loss is disclosed by such inspection or gauge and there
is no evidence to indicate fraud, the officer shall execute his
certificate on both copies of the form covering the deposit, and forward
to the appropriate ATF officer:
(a) Original of the deposit from (with any attachments); and
(b) Original of the officer's customs Form 6001, if any. The
remaining copy of the deposit form (with any attachments), and the copy
of any customs
[[Page 46]]
Form 6001, shall be retained by the customs officer for his files.
(48 Stat. 999, as amended (19 U.S.C. 81c); Sec. 201, Pub. L. 85-859, 72
Stat. 1336, as amended, 1362, as amended, 1380, as amended (26 U.S.C.
5062, 5214, 5362))
[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]
Customs Gauge
Sec. 252.291 Customs Form 6001.
When spirits or wines are gauged as required in Secs. 252.264,
252.285, or 252.290, the customs officer shall prepare in duplicate
customs Form 6001 to show:
(a) Date;
(b) Name of exporter;
(c) Serial number and designation of the related transaction form;
(d) Kind of liquor (show whether alcohol, whiskey, brandy, rum, gin,
vodka, wine, etc.);
(e) Name and registry number of producer;
(f) If gauged under Sec. 252.264, the location of the port;
(g) If gauged under Sec. 252.285, the location and number of the
manufacturing bonded warehouse;
(h) If gauged under 252.290, the location and number of the foreign-
trade zone;
(i) Kind and serial numbers or lot identification numbers of
containers; and
(j) For each container:
(1) Proof of spirits, or percent of alcohol by volume in wine;
(2) Proof gallons, if spirits;
(3) Wine gallons, if wine; and
(4) Variation from the last gauge (proof, percent of alcohol by
volume or wine gallons).
[T.D. ATF-198, 50 FR 8563, Mar. 1, 1985]
Alternate Procedures
Sec. 252.295 Exception for export of beer.
The provisions of this subpart do not apply in the case of beer when
the exporter or claimant obtains proof of exportation other than
certification by the military or customs certification of lading and use
under Sec. 252.43. Brewers and exporters shall prepare Forms 1582-B
(5130.6) or 1689 (5130.12), as applicable, to cover exportation of beer,
but customs or military certification on them is not required when other
proof of exportation is used.
[LT.D.ATF-224, 51 FR 7700, Mar. 5, 1986]
Subpart O--Losses
Distilled Spirits
Sec. 252.301 Loss of distilled spirits in transit.
The tax on distilled spirits withdrawn without payment of tax under
this part and which are lost during transportation from the bonded
premises of the distilled spirits plant from which withdrawn to (a) the
port of export, (b) the manufacturing bonded warehouse, (c) the vessel
or aircraft, (d) the foreign-trade zone, or (e) the customs bonded
warehouse, as the case may be, may be remitted if evidence satisfactory
to the appropriate ATF officer establishes that such distilled spirits
have not been unlawfully diverted, or lost by theft with connivance,
collusion, fraud, or negligence on the part of the exporter, owner,
consignor, consignee, bailee, or carrier or the employees or agents of
any of them: Provided, That such remission in the case of loss of
distilled spirits by theft shall only be allowed to the extent that the
claimant is not indemnified against or recompensed in respect of the tax
for such loss.
(72 Stat. 1323, as amended, 84 Stat. 1965; 26 U.S.C. 5008, 5066)
[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975]
Sec. 252.302 Notice to exporter.
If, on examination of the ATF Form 5100.11 (and attached gauge
reports, if any) received from the officer required to certify the same
under the provisions of subpart N of this part, the appropriate ATF
officer is of the opinion that the distilled spirits reported lost had
been unlawfully diverted, or had been lost by theft, he will advise the
exporter by letter:
(a) Of the identity of the containers;
(b) Of the amount of the loss;
(c) Of the circumstances indicating diversion or theft;
(d) That allowance of the loss will be subject to filing (1) proof
that such loss is allowable under the provisions of 26
[[Page 47]]
U.S.C. 5008 (a) and (f), and (2) claim for remission of the tax on the
spirits so lost; and
(e) That action in respect of the loss will be withheld for a period
of not more than 30 days to afford an opportunity to file such proof and
claim.
In any case in which distilled spirits are lost during transportation,
as described in Sec. 252.301, whether by theft or otherwise, the
appropriate ATF officer may require the exporter to file a claim for
relief in accordance with Sec. 252.303. When circumstances may warrant,
extensions of additional time for submission of the proof and claim may
be granted by the appropriate ATF officer. Where such proof and claim
are not filed within the 30-day period, or such extensions as the
appropriate ATF officer may grant, the tax on the distilled spirits
diverted or lost will be assessed, or liability asserted against the
bond covering the shipment, as the case may be.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44
FR 71726, Dec. 11, 1979]
Sec. 252.303 Filing of claims.
Claims, for remission of tax on the distilled spirits under
Sec. 252.301, shall be filed on Form 2635 (5620.8), in duplicate, and
shall set forth the following:
(a) Name, address, and capacity of the claimant;
(b) Identification (including serial numbers, if any) and location
of the container or containers from which the spirits were lost;
(c) Quantity of spirits lost from each container, and the total
quantity of spirits covered by the claim;
(d) Total amount of tax for which the claim is filed;
(e) The date, penal sum, and form number of the bond under which
withdrawal and shipment were made;
(f) Name, number, and address of the distilled spirits plant from
which withdrawn without payment of tax;
(g) Date of the loss (or, if not known, date of discovery), the
cause thereof, and all the facts relative thereto;
(h) Name of the carrier;
(i) If lost by theft, facts establishing that the loss did not occur
as the result of any connivance, collusion, fraud, or negligence on the
part of the exporter, owner, consignor, consignee, bailee, or carrier,
or the employees or agents of any of them;
(j) In the case of a loss by theft, whether the claimant is
indemnified or recompensed in respect of the tax on the spirits lost,
and, if so, the amount and nature of such indemnity or recompense and
the actual value of the spirits, less the tax.
The claim shall be executed by the exporter or his authorized agent
under the penalties of perjury, and shall be supported (whenever
possible) by affidavits of persons having personal knowledge of the
loss. The appropriate ATF officer may require such further evidence as
he deems necessary.
(68A Stat. 749, 72 Stat. 1323; 26 U.S.C. 6065, 5008)
Sec. 252.304 Action on claim.
The appropriate ATF officer will allow or disallow claims filed
under Sec. 252.303 in accordance with existing law and regulations. If
the appropriate ATF officer finds that there has been a diversion or
theft of the distilled spirits as the result of any connivance,
collusion, fraud, or negligence on the part of the exporter, owner,
consignor, consignee, bailee, or carrier, or the employees or agents of
any of them, the tax on the distilled spirits diverted or lost by theft
will be assessed, or liability asserted against the bond covering the
shipment, as the case may be.
(68A Stat. 867, 72 Stat. 1323; 26 U.S.C. 7302, 5008)
Specially Denatured Spirits
Sec. 252.310 Loss of specially denatured spirits in transit.
Losses of specially denatured spirits withdrawn free of tax under
this part during transportation from the bonded premises of the
distilled spirits plant from which withdrawn to (a) the port of export,
or (b) the foreign-trade zone, as the case may be, may be allowed if
evidence satisfactory to the appropriate ATF officer establishes that
such specially denatured spirits have not been unlawfully diverted, or
lost by
[[Page 48]]
theft as the result of any connivance, collusion, fraud, or negligence
on the part of the exporter, owner, consignor, consignee, bailee, or
carrier, or the employees or agents of any of them. The giving of notice
to the exporter, filing claims for allowance of loss, and action on the
claims shall be, insofar as applicable, in accordance with the procedure
prescribed in Secs. 252.302 through 252.304.
Wine
Sec. 252.315 Loss of wine in transit.
The tax on wine withdrawn without payment of tax under this part and
which is lost during transportation from the bonded wine cellar from
which withdrawn to (a) the port of export, (b) the vessel or aircraft,
(c) the foreign-trade zone, (d) the manufacturing bonded warehouse, or
(e) the customs bonded warehouse, as the case may be, may be remitted if
evidence satisfactory to the appropriate ATF officer establishes that
such wine has not been unlawfully diverted, or lost by theft with
connivance, collusion, fraud, or negligence on the part of the exporter,
owner, consignor, consignee, bailee, or carrier or the employees or
agents of any of them. However, the remission of tax on wine withdrawn
without payment of tax under this part and which is lost while in
transit may be allowed only to the extent that the claimant is not
indemnified or recompensed for such tax.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, 1382 (26 U.S.C. 5370, 5371))
[T.D. ATF-88, 46 FR 39816, Aug. 5, 1981]
Sec. 252.316 Notice to exporter.
If, on examination of the ATF Form 5100.11 received from the officer
required to certify the same under the provisions of subpart N, the
appropriate ATF officer is of the opinion that wine reported lost had
been unlawfully diverted, or had been lost by theft, he will advise the
exporter by letter:
(a) Of the identity of the containers;
(b) Of the amount of the loss;
(c) Of the circumstances indicating diversion or theft;
(d) That allowance of the loss will be subject to filing (1) proof
that such loss is allowable under the provisions of 26 U.S.C. 5370, and
(2) claim for remission of the tax on the wine so lost; and
(e) That action in respect of the loss will be withheld for a period
of not more than 30 days to afford an opportunity to file such proof and
claim.
In any case in which wines are lost during transportation, as described
in Sec. 252.315, whether by theft or otherwise, the appropriate ATF
officer may require the exporter to file a claim for relief in
accordance with Sec. 252.317. Where circumstances may warrant,
extensions of additional time for submission of the proof and claim may
be granted by the appropriate ATF officer. Where such proof and claim
are not filed within the 30-day period, or such extensions as the
appropriate ATF officer may grant, the tax on the wine diverted or lost
will be assessed, or liability asserted against the bond covering the
shipment, as the case may be.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370))
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-48, 44 FR 55854, Sept. 28, 1979; T.D. ATF-62, 44
FR 71726, Dec. 11, 1979]
Sec. 252.317 Filing of claims.
Claims, for remission of tax on the wine under Sec. 252.315, shall
be filed on Form 2635 (5620.8), in duplicate, and shall set forth the
following:
(a) The name, address, and capacity of the claimant;
(b) The name, registry number, and location of the bonded wine
cellar from which the wine was withdrawn;
(c) The date, penal sum, and form number of the bond under which
withdrawal and shipment was made;
(d) Identification (including serial numbers, if any) and location
of the container or containers from which the wine was lost;
(e) The quantity of wine lost from each container, and the total
quantity of wine covered by the claim;
(f) The total amount of tax for which the claim is filed;
(g) The date of the loss (or, if not known, date of discovery), the
cause thereof, and all the facts relative thereto;
(h) Name of the carrier;
[[Page 49]]
(i) If lost by theft, the facts establishing that the loss did not
occur as the result of any connivance, collusion, fraud, or negligence
on the part of the exporter, owner, consignor, consignee, bailee, or
carrier, or the agents or employees of any of them; and
(j) Whether the claimant is indemnified or recompensed in respect of
the tax on the wine lost, and, if so, the amount and nature of such
indemnity or recompense and the actual value of the wine, less the tax.
The claim shall be signed by the exporter or his authorized agent under
the penalties of perjury, and shall be supported (whenever possible) by
affidavits of persons having personal knowledge of the loss. The
appropriate ATF officer may require such further evidence as he deems
necessary.
(68A Stat. 749, 72 Stat. 1381, 1382; 26 U.S.C. 6065, 5370, 5371)
Sec. 252.318 Action on claim.
Action on claims filed under Sec. 252.317 shall be, insofar as
applicable, in accordance with the procedure prescribed in Sec. 252.304.
(72 Stat. 1381; 26 U.S.C. 5370)
Beer And Beer Concentrate
Sec. 252.320 Loss of beer and beer concentrate in transit.
(a) Losses not requiring inspection. When, on receipt by the
appropriate ATF officer of Form 1689 (5130.12) from the officer required
to certify it under the provisions of subpart N of this part, it is
disclosed that there has been a loss of beer or beer concentrate after
removal from the brewery without payment of tax while in transit to the
port of export, the vessel or aircraft, or the foreign-trade zone, and
the report of the certifying officer shows that the loss was a normal
one caused by casualty, leakage, or spillage, the appropriate ATF
officer will allow the loss.
(b) Losses requiring inspection. When it is disclosed that the loss
of beer or beer concentrate is large or unusual, the appropriate ATF
officer will conduct an investigation of the loss. When it is disclosed
that the loss in transit has occurred by reason of casualty, leakage or
spillage, credit for the loss will be allowed. When the investigation
discloses evidence indicating that the loss resulted from theft or from
fraud, the appropriate ATF officer will afford the brewer opportunity to
submit a written explanation with respect to the causes of the loss
before taking further action.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended,
1335, as amended (26 U.S.C. 5051, 5053, 5056))
[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986]
Sec. 252.321 Tax assessed on loss not accounted for.
The appropriate ATF officer shall make demand on the brewer for an
amount equal to the tax which would be due on removal for consumption or
sale, including penalties and interest, on; (a) The quantity of beer not
satisfactorily accounted for, or (b) the quantity of beer used to
produce the quantity of beer concentrate which is not satisfactorily
accounted for.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended
(26 U.S.C. 5051, 5053))
[T.D. ATF-224, 51 FR 7700, Mar. 5, 1986]
Subpart P--Action on Claims
Sec. 252.331 Claims supported by bond, Form 2738 (5110.68).
On receipt of a claim for drawback of tax on distilled spirits or
wines on which the tax has been determined, and of the evidence of
exportation required by Sec. 252.40, or of lading for use on vessels or
aircraft required by Sec. 252.41, or of deposit in a foreign-trade zone
or of deposit of distilled spirits in a customs bonded warehouse, as
required by Sec. 252.42, as the case may be, the appropriate ATF officer
shall, if a good and sufficient bond has been filed as provided in
Sec. 252.65, and the notice of removal has been properly completed,
allow the claim in accordance with the rate of drawback established in
respect of the particular spirits or wines on which claim is based and
charge the amount allowed against the bond. On receipt of the original
of the claim properly executed by the appropriate customs official or
armed services officer, as required by this part, and, in the case of
claims on Form 1582-A
[[Page 50]]
(5120.24), the certificate of tax determination, Form 2605 (5120.20),
the appropriate ATF officer shall give appropriate credit to the bond.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1336, as
amended, 84 Stat. 1965; 19 U.S.C. 1309, 81c, 26 U.S.C. 5062, 5066)
[T.D. 7112, 36 FR 8583, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975]
Sec. 252.332 Claim against bond.
When any claim supported by a bond has been allowed and changed
against the bond under the provisions of Sec. 252.331, and the original
of the claim properly executed by the appropriate customs official or
armed services officer as required by this part is not received by the
appropriate ATF officer within three months of the date the claim was
allowed, or where the distilled spirits or wines are not otherwise
accounted for in accordance with this part, the appropriate ATF officer
shall advise the claimant of the facts, and notify him that unless the
original of the claim, properly executed as required by this part, is
received by the appropriate ATF officer within 30 days, a written demand
will be made upon the principal and the surety for repayment to the
United States of the full amount of the drawback, plus interest at the
rate prescribed by law from the time the drawback was paid. However, the
appropriate ATF officer may, if in his opinion the circumstances warrant
it, grant the claimant any additional extension of time beyond 30 days
as may be necessary to accomplish the required filing.
(Sec. 201, Pub. L. 85-859, 72 Stat. 1336 as amended, (26 U.S.C. 5062))
[T.D. ATF-70, 45 FR 33981, May 21, 1980]
Sec. 252.333 Where no bond is filed.
Where a claim for drawback of tax on distilled spirits or wines on
ATF Form 5110.30 or 1582-A (5120.24), is not supported by a bond on Form
2738 (5110.68), and in all cases where claim for drawback of tax on beer
is made on Form 1582-B (5130.6), the appropriate ATF officer shall, on
receipt by him of the original of the claim properly executed by the
appropriate customs official or armed services officer, as required by
this part, examine the claim to determine that it has been properly
completed. He shall then, on receipt of the evidence of exportation
required by Sec. 252.40, or of lading for use on vessels or aircraft
required by Sec. 252.41, or of deposit in a foreign-trade zone or a
customs bonded warehouse as required by Sec. 252.42, as the case may be,
and, in the case of claims on Form 1582-A (5120.24), the certificate of
tax determination, Form 2605 (5120.20), allow the claim in the amount of
the tax paid on the beer or the tax paid or determined on the distilled
spirits or wines on which the claim is based and which were exported,
laden as supplies on vessels or aircraft, or deposited in a foreign-
trade zone or a customs bonded warehouse, as the case may be.
(46 Stat. 690, 691, as amended, 48 Stat. 999, as amended, 72 Stat. 1335,
1336, 84 Stat. 1965; 19 U.S.C. 1309, 1311, 81c, 26 U.S.C. 5055, 5062,
5066)
[T.D. 7112, 36 FR 8584, May 8, 1971. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]
Sec. 252.334 Credit allowance.
Where the credit relates to internal revenue taxes on beer that have
been determined but not yet paid by the claimant, the appropriate ATF
officer will notify the claimant in writing. Where the credit relates to
tax determined distilled spirits, procedure for taking the credit shall
be in accordance with the procedures set forth in part 19 of this
chapter. Where the credit relates to tax-determined wines, procedure for
taking the credit shall be in accordance with the procedures set forth
in part 24 of this chapter. No credit may be given for drawback of the
tax on beer nor may one class of tax be credited to another.
(72 Stat. 1336; 26 U.S.C. 5062)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]
[[Page 51]]
Sec. 252.335 Disallowance of claim.
If a claim for drawback of tax is not allowed in full, the
appropriate ATF officer shall notify the claimant in writing of the
reasons for any disallowance.
(46 Stat. 690, as amended, 48 Stat. 999, as amended, 72 Stat. 1335,
1336; 19 U.S.C. 1309, 81c, 26 U.S.C. 5055, 5062)
[25 FR 5734, June 23, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975,
and amended by T.D. ATF-62, 44 FR 71726, Dec. 11, 1979]
PART 275--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES--Table of Contents
Subpart A--Scope of Regulations
Sec.
275.1 Importation of tobacco products and cigarette papers and tubes.
Subpart B--Definitions
275.11 Meaning of terms.
Subpart C--General
275.21 Forms prescribed.
275.22 Retention of records.
275.23 Authority of ATF officers to enter premises.
275.24 Interference with administration.
275.25 Disposal of forfeited, condemned, and abandoned tobacco products
and cigarette papers and tubes.
275.26 Alternate methods or procedures.
275.27 Emergency variations from requirements.
275.28 Penalties and forfeitures.
275.29 Delegations of the Director.
Subpart D--Taxes
Tax Rates
275.30 Pipe tobacco and roll-your-own tobacco.
275.31 Cigar tax rates.
275.32 Cigarette tax rates.
275.33 Smokeless tobacco tax rates.
275.34 Cigarette papers.
275.35 Cigarette tubes.
Classification of Large Cigars and Cigarettes
275.37 Statistical classification of large cigars.
275.38 Cigarettes.
275.39 Determination of sale price of large cigars.
Liability for and Payment of Taxes
275.40 Persons liable for tax.
275.41 Determination and payment of tax.
Exemptions from Taxes and Permits
275.50 Exemptions.
Assessment of Taxes
275.60 Assessment.
Customs' Collection of Taxes
275.62 Customs' collection of internal revenue taxes on tobacco
products and cigarette papers and tubes, imported or brought
into the United States.
275.63 Payment of tax by electronic fund transfer.
Subpart E--Packages
275.71 Package.
275.72 Notice for smokeless tobacco.
275.72a Notice for pipe tobacco.
275.72b Notice for roll-your-own tobacco.
275.72c Package use-up rule.
275.73 Notice for cigars.
275.74 Notice for cigarettes.
275.75 Exemptions.
Subpart F--Tobacco Products and Cigarette Papers and Tubes, Imported
Into or Returned to the United States
275.81 Taxpayment.
Release From Customs Custody of Tobacco Products and Cigarette Papers
and Tubes Without Payment of Tax or Certain Duty
275.82 Restrictions on tobacco products labeled for export.
275.83 Penalties and forfeiture for products labeled or shipped for
export.
275.85 Release from customs custody of imported tobacco articles.
275.85a Release from customs custody of returned articles.
275.86 Procedure for release.
Subpart G--Puerto Rican Tobacco Products and Cigarette Papers and Tubes,
Brought Into the United States
275.101 General.
Prepayment of Tax in Puerto Rico on Tobacco Products and Cigarette
Papers and Tubes
275.105 Prepayment of tax.
275.106 Examination and record of shipment by taxpayer.
275.107-275.108 [Reserved]
Deferred Payment of Tax in Puerto Rico on Tobacco Products
275.109 Bond required for deferred taxpayment.
[[Page 52]]
275.110 Record of tax computation and shipment by bonded manufacturer
under deferred taxpayment.
275.111 Agreement to pay tax.
275.112 Tax return.
275.113 Return periods.
275.114 Time for filing.
275.114a Qualification for extended deferral.
275.115 Remittance with return.
275.115a Payment of tax by electronic fund transfer.
275.116 Default.
275.117-275.118 [Reserved]
275.119 Corporate surety.
275.120 Deposit of securities in lieu of corporate surety.
275.121 Amount and account of bond.
275.122 Strengthening bond.
275.123 Superseding bond.
275.124 Extension of coverage of bond.
275.125 Approval of bond and extension of coverage of bond.
275.126 Termination of bond.
275.127 Application of surety for relief from bond.
275.128 Relief of surety from bond.
275.129 Release of pledged securities.
275.135-275.138 [Reserved]
275.139 Records.
275.140 Taxpayment in the United States.
275.141 Reports.
Subpart H [Reserved]
275.151-275.153 [Reserved]
Subpart I--Claims
General
275.161 Abatement of assessment.
275.162 Losses caused by disaster occurring after September 2, 1958.
275.163 Refund of tax.
Tobacco Products, and Cigarette Papers and Tubes Lost or Destroyed
275.165 Action by taxpayer.
Tobacco Products and Cigarette Papers and Tubes Withdrawn From the
Market
275.170 Reduction of tobacco products to materials; ATF action.
275.171 Reduction of tobacco products to materials, action by regional
director (compliance).
275.172 Return to nontaxpaid status; action by taxpayer.
275.173 Return to nontaxpaid status; action by regional director
(compliance).
275.174 Disposition of tobacco products and cigarette papers and tubes,
and schedule.
Subpart J--Records and Reports
275.181 Records of large cigars.
275.182 Availability of records.
275.183 [Reserved]
Subpart K--Tobacco Products Importers
275.190 Persons required to qualify.
275.191 Application for permit.
275.192 Transitional rule.
275.193 Corporate documents.
275.194 Articles of partnership or association.
275.195 Trade name certificate.
275.196 Power of attorney.
275.197 Additional information.
275.198 Investigation of applicant.
275.199 Notice of contemplated disapproval.
275.200 Issuance of permit.
275.201 Duration of permit.
275.202 Renewal of permit.
275.203 Retention of permit and supporting documents.
Required Records and Reports
275.204 General.
275.205 Recordkeeping requirements.
Filing and Retention of Records and Reports
275.206 Reports.
275.207 Filing.
275.208 Retention.
Subpart L--Changes After Original Qualification of Importers
Changes in Name
275.220 Change in individual name.
275.221 Change in trade name.
275.222 Change in corporate name.
Changes in Ownership and Control
275.223 Fiduciary successor.
275.224 Transfer of ownership.
275.225 Change in officers, directors, or stockholders of a
corporation.
275.226 Change in control of a corporation.
Changes in Location or Address
275.227 Change in location.
275.228 Change in address.
Authority: 18 U.S.C. 2342; 26 U.S.C. 5701, 5703, 5704, 5705, 5708,
5712, 5713, 5721, 5722, 5723, 5741, 5754, 5761, 5762, 5763, 6301, 6302,
6313, 6404, 7101, 7212, 7342, 7606, 7651, 7652, 7805; 31 U.S.C. 9301,
9303, 9304, 9306.
Editorial Note: Nomenclature changes to part 275 appear at T.D. ATF-
460, 66 FR 39093, July 27, 2001.
Subpart A--Scope of Regulations
Sec. 275.1 Importation of tobacco products and cigarette papers and tubes.
This part contains regulations relating to tobacco products and
cigarette
[[Page 53]]
papers and tubes imported into the United States from a foreign country
or brought into the United States from Puerto Rico, the Virgin Islands,
or a possession of the United States; the removal of tobacco products
from a customs bonded manufacturing warehouse, class 6; restrictions on
the importation of previously exported tobacco products and cigarette
papers and tubes; and the release of tobacco products and cigarette
papers and tubes from customs custody, without payment of internal
revenue tax or customs duty attributable to the internal revenue tax.
[T.D. ATF-421, 64 FR 71924, Dec. 22, 1999]
Subpart B--Definitions
Sec. 275.11 Meaning of terms.
When used in this part and in forms prescribed under this part, the
following terms shall have the meanings given in this section, unless
the context clearly indicates otherwise. Words in the plural form shall
include the singular, and vice versa, and words indicating the masculine
gender shall include the feminine. The terms ``includes'' and
``including'' do not exclude things not listed which are in the same
general class.
Appropriate ATF officer. An officer or employee of the Bureau of
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions
relating to the administration or enforcement of this part by ATF Order
1130.16A, Delegation Order--Delegation of the Director's Authorities in
27 CFR Part 275, Importation of Tobacco Products and Cigarette Papers
and Tubes and ATF Order 1130.15, Delegation Order--Delegation of Certain
of the Director's Authorities in 27 CFR Parts 270, 275 and 296.
Associate Director (Compliance Operations). The Associate Director
(Compliance Operations) in the Bureau of Alcohol, Tobacco and Firearms,
who is responsible to, and functions under the direction and supervision
of, the Director.
ATF. The Bureau of Alcohol, Tobacco and Firearms.
ATF officer. An officer of the Bureau of Alcohol, Tobacco and
Firearms (ATF) authorized to perform any function relating to the
administration or enforcement of this part.
Bank. Any commercial bank.
Banking day. Any day during which a bank is open to the public for
carrying on substantially all its banking functions.
Business day. Any day, other than a Saturday, Sunday, or a legal
holiday. (The term legal holiday includes all holidays in the District
of Columbia and, in the case of bonded manufacturers in Puerto Rico, all
legal holidays in the Commonwealth of Puerto Rico.)
Bonded manufacturer. A manufacturer of tobacco products in Puerto
Rico who has an approved bond, in accordance with the provisions of this
part, authorizing him to defer the payment in Puerto Rico on the
internal revenue tax imposed on such products by 26 U.S.C. 7652(a) as
provided in this part.
CFR. The Code of Federal Regulations.
Chewing Tobacco. Any leaf tobacco that is not intended to be smoked.
Chief, Puerto Rico Operations. The primary representative in Puerto
Rico of the Bureau of Alcohol, Tobacco and Firearms.
Cigar. Any roll of tobacco wrapped in leaf tobacco or in any
substance containing tobacco (other than any roll of tobacco which is a
cigarette within the meaning of paragraph (2) of the definition for
cigarette).
Cigarette. (1) Any roll of tobacco wrapped in paper or in any
substance not containing tobacco, and
(2) Any roll of tobacco wrapped in any substance containing tobacco
which, because of its appearance, the type of tobacco used in the
filler, or its packaging and labeling, is likely to be offered to, or
purchased by, consumers as a cigarette described in paragraph (1) of
this definition.
Cigarette paper. Paper, or any other material except tobacco,
prepared for use as a cigarette wrapper.
Cigarette tube. Cigarette paper made into a hollow cylinder for use
in making cigarettes.
Commercial bank. A bank, whether or not a member of the Federal
Reserve System, which has access to the Federal Reserve Communications
System (FRCS) or Fedwire. The ``FRCS'' or
[[Page 54]]
``Fedwire'' is a communications network that allows Federal Reserve
System member banks to effect a transfer of funds for their customers
(or other commercial banks) to the Treasury Account at the Federal
Reserve Bank in New York.
Computation or computed. When used with respect to the tax on
tobacco products of Puerto Rican manufacture, computation or computed
shall mean that the bonded manufacturer has ascertained the quantity and
kind (small cigars, large cigars, small cigarettes, large cigarettes,
chewing tobacco, snuff, pipe tobacco, or roll-your-own tobacco) of
tobacco products and the sale price of large cigars being shipped to the
United States; that adequate bond has been posted to cover the payment,
in Puerto Rico, of the tax on such products to be deferred under subpart
G of this part; that the tax imposed on such products by 26 U.S.C.
7652(a) has been calculated; that the bonded manufacturer has executed
an agreement to pay the internal revenue tax which will become due with
respect to such products, as provided in this part; and that an ATF
officer has verified and executed a certification of such calculation.
Customs officer. Any officer of the Customs Service or any
commissioned, warrant, or petty officer of the Coast Guard, or any agent
or other person authorized by law or designated by the Secretary of the
Treasury to perform any duties of an officer of the Customs Service.
Determine. To establish enough information about taxable products at
the time of removal to calculate the tax, specifically the quantity
(pounds or number) and kind (for example, cigarettes, snuff, paper
tubes). Where the tax rate depends on additional information (such as
number of cigarette papers to a set before 1/1/2000 or sale price of
large cigars), that information must also be established as part of tax
determination.
Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the
Department of the Treasury, Washington, DC.
District director. A district director of internal revenue.
Electronic fund transfer or EFT. Any transfer of funds effected by a
bonded manufacturer's commercial bank, either directly or through a
correspondent banking relationship, via the Federal Reserve
Communications System (FRCS) or Fedwire to the Treasury Account at the
Federal Reserve Bank of New York.
Export warehouse. A bonded internal revenue warehouse for the
storage of tobacco products and cigarette papers and tubes, upon which
the internal revenue tax has not been paid, for subsequent shipment to a
foreign country, Puerto Rico, the Virgin Islands, or a possession of the
United States, or for consumption beyond the jurisdiction of the
internal revenue laws of the United States.
Export warehouse proprietor. Any person who operates an export
warehouse.
Factory. The premises of a manufacturer of tobacco products or
cigarette papers or tubes in which he carries on such business.
Fiscal year. The period which begins October 1 and ends on the
following September 30.
HTS. The Harmonized Tariff Schedule of the United States, as
published by the United States International Trade Commission.
Importer. Any person in the United States to whom non-taxpaid
tobacco products or cigarette papers or tubes manufactured in a foreign
country, Puerto Rico, the Virgin Islands, or a possession of the United
States are shipped or consigned; any person who removes cigars for sale
or consumption in the United States from a Customs bonded manufacturing
warehouse; and any person who smuggles or otherwise unlawfully brings
tobacco products or cigarette papers or tubes into the United States.
Large cigarettes. Cigarettes weighing more than three pounds per
thousand.
Large cigars. Cigars weighing more than three pounds per thousand.
Manufacturer of cigarette papers and tubes. Any person who
manufactures cigarette paper, or makes up cigarette paper into tubes,
except for his own personal use or consumption.
[[Page 55]]
Manufacturer of tobacco products. Any person who manufactures
cigars, cigarettes, smokeless tobacco, pipe tobacco, or roll-your-own
tobacco but does not include:
(1) A person who produces tobacco products solely for that person's
own consumption or use; or
(2) A proprietor of a Customs bonded manufacturing warehouse with
respect to the operation of such warehouse.
Package. The container in which tobacco products or cigarette papers
or tubes are put up by the manufacturer or the importer for delivery to
the consumer.
Person. An individual, partnership, association, company,
corporation, estate, or trust.
Pipe tobacco. Any tobacco which because of its appearance, type,
packaging, or labeling, is suitable for use and likely to be offered to,
or purchased by, consumers as tobacco to be smoked in a pipe.
Port Director of Customs. The director of any port or port of entry
as defined in 19 CFR 101.1. A list of ports is set forth in 19 CFR
101.3.
Records. Statements, declarations, books, papers, correspondence,
accounts, technical data, automated record storage devices (e.g.,
magnetic discs and tapes), computer programs necessary to retrieve
information in a usable form, and other documents that:
(1) Pertain to any importation of tobacco products or cigarette
papers or tubes, or to the information contained in the documents
required by law or regulation under the Tariff Act of 1930, as amended,
in connection with the importation or shipment into the United states
from Puerto Rico of merchandise; and
(2) Are of the type normally kept in the ordinary course of
business; and
(3) Are sufficiently detailed to:
(i) Establish the right to make the importation or shipment into the
United States from Puerto Rico;
(ii) Establish the correctness of any importation or shipment into
the United States from Puerto Rico;
(iii) Determine the liability of any person for duties and taxes
due, or which may be due, to the United States;
(iv) Determine the liability of any person for fines, penalties, and
forfeitures; and
(v) Determine whether the person has complied with the laws and
regulations administered by ATF and the Customs Service, and any other
documents required under laws or regulations administered by ATF and the
Customs Service.
Region. A Bureau of Alcohol, Tobacco and Firearms Region.
Regional Director (compliance). The principal regional official
responsible for administering regulations in this part.
Relanding. Any tobacco products, cigarette papers or tubes, which
have been labeled or shipped for exportation (including to Puerto Rico)
as prescribed in this chapter, previously exported and returned within
the jurisdiction of the United States.
Removal or Remove. The removal of tobacco products or cigarette
papers or tubes from the factory or release from internal revenue bond
under 26 U.S.C. 5704, or release from customs custody, including
conditional release in accordance with 19 CFR 141.0a(i), and shall also
include the smuggling or other unlawful importation of such articles
into the United States.
Roll-your-own tobacco. Any tobacco which, because of its appearance,
type, packaging, or labeling, is suitable for use and likely to be
offered to, or purchased by, consumers as tobacco for making cigarettes.
Sale price. The price for which large cigars are sold by the
importer or manufacturer, determined in accordance with Sec. 275.39 and
used for computation of the excise tax.
Small cigarettes. Cigarettes weighing not more than three pounds per
thousand.
Small cigars. Cigars weighing not more than three pounds per
thousand.
Smokeless tobacco. Any chewing tobacco or snuff.
Snuff. Any finely cut, ground, or powdered tobacco that is not
intended to be smoked.
This chapter. Chapter I, title 27, Code of Federal Regulations.
Tobacco products. Cigars, cigarettes, smokeless tobacco, pipe
tobacco, and roll-your-own tobacco.
[[Page 56]]
Treasury Account. The Department of the Treasury's General Account
at the Federal Reserve Bank of New York.
United States. When used in a geographical sense shall include only
the States and the District of Columbia.
U.S.C. The United States Code.
(Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6301);
June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))
[T.D. ATF-48, 43 FR 13554, Mar. 31, 1978; 44 FR 55855, Sept. 28, 1979,
as amended by T.D. ATF-77, 46 FR 3009, Jan. 13, 1981; T.D. ATF-232, 51
FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D.
ATF-251, 52 FR 19340, May 22, 1987; T.D. ATF-284, 54 FR 12190, Mar 24,
1989; T.D. ATF-289, 54 FR 48840, Nov. 27, 1989; T.D. ATF-421, 64 FR
71924, Dec. 22, 1999; T.D. ATF-424, 64 FR 71932, Dec. 22, 1999; T.D.
ATF-420, 64 FR 71942, Dec. 22, 1999; T.D. ATF-422, 64 FR 71948, Dec. 22,
1999; T.D. ATF-422c, 65 FR 63545, Oct. 24, 2000; T.D. ATF-444, 66 FR
13850, Mar. 8, 2001; T.D. ATF-465, 66 FR 45618, Aug. 29, 2001; T.D. ATF-
467, 66 FR 49532, Sept. 28, 2001]
Subpart C--General
Sec. 275.21 Forms prescribed.
(a) The Director is authorized to prescribe all forms required by
this part. All of the information called for in each form shall be
furnished as indicated by the headings on the form and the instructions
on or pertaining to the form. In addition, information called for in
each form shall be furnished as required by this part. When a return,
form, claim, or other document called for under this part is required by
this part, or by the document itself, to be executed under penalties of
perjury, it shall be executed under penalties of perjury.
(b) Requests for forms should be mailed to the AFT Distribution
Center, 7943 Angus Court, Springfield, Virginia 22153.
(5 US.C. 552(a) (80 Stat. 383, as amended)
[T.D. ATF-92, 46 FR 46922, Sept. 23, 1981, as amended by T.D. ATF-232,
51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1, 1986; T.D.
ATF-372, 61 FR 20725, May 8, 1996]
Sec. 275.22 Retention of records.
All records required to be kept under this part, including copies of
claims and schedules, authorizations, notices of release, reports, and
returns, shall be retained for three years following the close of the
year in which filed or made, or in the case of an authorization, for
three years following the close of the calendar year in which the
operation under such authorization is concluded. Such records shall be
made available for inspection by any ATF officer upon his request.
(72 Stat. 1423; 26 U.S.C. 5741)
[26 FR 8189, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 275.23 Authority of ATF officers to enter premises.
Any ATF officer may enter in the daytime any premises where tobacco
products or cigarette papers or tubes are produced or kept so far as it
may be necessary for the purpose of examining such articles. When such
premises are open at night, any ATF officer may enter them, while so
open, in the performance of his official duties. The owner of such
premises, or person having the superintendence of the same, who refuses
to admit any ATF officer or permit him to examine such articles shall be
liable to the penalties prescribed by law for the offense.
(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
[T.D. 6871, 31 FR 40, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D.
ATF-243, 51 FR 43194, Dec. 1, 1986]
Sec. 275.24 Interference with administration.
Whoever, corruptly or by force or threats of force, endeavors to
hinder or obstruct the administration of this part, or endeavors to
intimidate or impede any ATF officer acting in his official capacity, or
forcibly rescues or attempts to rescue or causes to be rescued any
property, after it has been duly seized for forfeiture to the United
States in connection with a violation of the internal revenue laws,
shall be liable to the penalties prescribed by law.
(68A Stat. 855; 26 U.S.C. 7212)
[26 FR 8189, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
[[Page 57]]
Sec. 275.25 Disposal of forfeited, condemned, and abandoned tobacco products and cigarette papers and tubes.
When any Federal, State, or local officer having custody of
forfeited, condemned, or abandoned tobacco products or cigarette papers
or tubes, upon which the Federal tax has not been paid, is of the
opinion that the sale thereof will not bring a price equal to the tax
due and payable thereon, and the expenses incident to the sale thereof,
he shall not sell, nor cause to be sold, such articles for consumption
in the United States. Where the articles are not sold, the officer may
deliver them to a Federal or State hospital or institution (if they are
fit for consumption) or cause their destruction by burning completely or
by rendering them unfit for consumption. Where such articles are sold,
they shall not be released by the officer having custody thereof until
they are properly packaged and taxpaid, which tax shall be considered as
a portion of the sales price. Except where the tax is to be paid to the
Port Directors of Customs or other authorized customs officer in
accordance with Customs regulations (19 CFR part 127) on sales of
articles by customs officers, the payment of tax on such articles must
be evidenced by presentation, to the officer having custody of the
articles, of a receipt from the appropriate ATF officer showing such
payment. In the case of such articles held by or for the Federal
Government, the sale thereof shall be subject to the applicable
provisions of the Regulations of the General Services Administration,
Title 1, Personal Property Management.
(68A Stat. 872, 903; 26 U.S.C. 7342, 7606)
[T.D. 6871, 31 FR 40, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D.
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-422, 64 FR 71948, Dec. 22,
1999]
Sec. 275.26 Alternate methods or procedures.
An importer, on specific approval by the Director as provided in
this section, may use an alternate method or procedure in lieu of a
method or procedure specifically prescribed in this part. The Director
may approve an alternate method or procedure, subject to stated
conditions, when he finds that--
(a) Good cause has been shown for the use of the alternate method or
procedure,
(b) The alternate method or procedure is within the purpose of, and
consistent with the effect intended by, the specifically prescribed
method or procedure, and affords equivalent security to the revenue, and
(c) The alternate method of procedure will not be contrary to any
provision of law, and will not result in an increase in cost to the
Government or hinder the effective administration of this part.
No alternate method or procedure relating to the giving of any bond or
to the assessment, payment, or collection of tax, shall be authorized
under this section. When an importer desires to employ an alternate
method or procedure, he shall submit a written application to do so, in
triplicate, to the regional director (compliance) for transmittal to the
Director. The application shall specifically describe the proposed
alternate method or procedure, and shall set forth the reasons therefor.
Alternate methods or procedures shall not be employed until the
application has been approved by the Director. The importer shall,
during the period of authorization of an alternate method or procedure,
comply with the terms of the approved application. Authorization for any
alternate method or procedure may be withdrawn whenever in the judgment
of the Director the revenue is jeopardized or the effective
administration of this part is hindered. The importer shall retain, as
part of his records, any authorization of the Director under this
section.
[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 275.27 Emergency variations from requirements.
The Director may approve methods of operation other than as
specified in this part, where he finds that an emergency exists and the
proposed variations from the specified requirements are necessary, and
the proposed variations--
[[Page 58]]
(a) Will afford the security and protection to the revenue intended
by the prescribed specifications,
(b) Will not hinder the effective administration of this part, and
(c) Will not be contrary to any provision of law.
Variations from requirements granted under this section are conditioned
on compliance with the procedures, conditions, and limitations set forth
in the approval of the application. Failure to comply in good faith and
with such procedures, conditions, and limitations shall automatically
terminate the authority for such variations and the importer thereupon
shall fully comply with the prescribed requirements of regulations from
which the variations were authorized. Authority for any variations may
be withdrawn whenever in the judgment of the Director the revenue is
jeopardized or the effective administration of this part is hindered by
the continuation of such variation. Where an importer desires to employ
such variation, he shall submit a written application to do so, in
triplicate, to the regional director (compliance) for transmittal to the
Director. The application shall describe the proposed variations and set
forth the reasons therefor. Variations shall not be employed until the
application has been approved. The importer shall retain, as part of his
records, any authorization of the Director under this section.
[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 275.28 Penalties and forfeitures.
Anyone who fails to comply with the provisions of this part becomes
liable to the civil and criminal penalties, and forfeitures, provided by
law.
(72 Stat. 1425, 1426; 26 U.S.C. 5761, 5762, 5763)
[26 FR 8190, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 275.29 Delegations of the Director.
The Director has general authority to take action on all matters
under the regulations in this part 275. Some of the authorities in this
part are redelegated to ``appropriate ATF officers''. The title of the
appropriate ATF officer for each delegation is listed by section in ATF
Order 1130.16A, Delegation Order--Delegation of Certain of the
Director's Authorities in 27 CFR parts 270, 275, and 296. ATF delegation
orders, such as ATF Order 1130.16A, are available from the ATF
Distribution Center, PO Box 5950, Springfield, Virginia 22150-5190, or
from the ATF web site (http://www.atf.treas.gov).
[T.D. ATF-420, 64 FR 71942, Dec. 22, 1999, as amended by T.D. ATF-444,
66 FR 13850, Mar. 8, 2001]
Subpart D--Taxes
Tax Rates
Sec. 275.30 Pipe tobacco and roll-your-own tobacco.
Pipe tobacco and roll-your-own tobacco are taxed at the following
rates under 26 U.S.C. 5701(f) and (g), respectively:
----------------------------------------------------------------------------------------------------------------
Tax rate per pound \1\ for removals during the years
Product -------------------------------------------------------------------------
1993 to 1999 2000 and 2001 2002 and after
----------------------------------------------------------------------------------------------------------------
Pipe tobacco.......................... $0.675 $0.9567 $1.0969
Roll-your-own tobacco................. No tax 0.9567 1.0969
----------------------------------------------------------------------------------------------------------------
\1\ Prorate tax for fractions of a pound.
[T.D. ATF-420, 64 FR 71942, Dec. 22, 1999]
Sec. 275.31 Cigar tax rates.
(a) Cigars are taxed at the following rates under 26 U.S.C. 5701(a):
[[Page 59]]
----------------------------------------------------------------------------------------------------------------
Tax rate for removals during the years
Product -------------------------------------------------------------------------
1993 to 1999 2000 and 2001 2002 and after
----------------------------------------------------------------------------------------------------------------
Small cigars (per thousand)........... $1.125 $1.594 $1.828
Large cigars \1\
percentage of sale price.......... 12.75% 18.063% 20.719%
but not to exceed per thousand.... $30 $42.50 $48.75
----------------------------------------------------------------------------------------------------------------
\1\ For large cigars, the percentage tax rate applies when the sale price is $235.294 per thousand or less, and
the flat tax rate applies when the sale price is more than $235.294.
(b) See Sec. 275.39 of this part for rules concerning determination
of sale price of large cigars.
(c) Cigars not exempt from tax under 26 U.S.C. chapter 52 and the
provisions of this part which are removed but not intended for sale
shall be taxed at the same rate as similar cigars removed for sale.
[T.D. ATF-420, 64 FR 71942, Dec. 22, 1999]
Sec. 275.32 Cigarette tax rates.
Cigarettes are taxed at the following rates under 26 U.S.C. 5701(b):
----------------------------------------------------------------------------------------------------------------
Tax rate per thousand for removals during the years
Product -------------------------------------------------------------------------
1993 to 1999 2000 and 2001 2002 and after
----------------------------------------------------------------------------------------------------------------
Small cigarettes...................... $12 $17 $19.50
Large cigarettes up to 6\1/2\ long.
Large cigarettes over 6\1/2\ long. fraction thereof of the length of each as one cigarette.
----------------------------------------------------------------------------------------------------------------
[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]
Sec. 275.33 Smokeless tobacco tax rates.
Smokeless tobacco products are taxed at the following rates under 26
U.S.C. 5701(e):
------------------------------------------------------------------------
Tax rate per pound \1\ for removals
during the years
Product --------------------------------------
1993 to 2000 or 2002 and
1999 2001 after
------------------------------------------------------------------------
Snuff............................ $0.36 $0.51 $0.585
Chewing tobacco.................. $0.12 $0.17 $0.195
------------------------------------------------------------------------
\1\ Prorate tax for fractions of a pound.
[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]
Sec. 275.34 Cigarette papers.
Cigarette papers are taxed at the following rates under 26 U.S.C.
5701(c):
------------------------------------------------------------------------
Tax rate for each 50 papers \1\ for
removals during the years
Product --------------------------------------
1993 to 2000 or 2002 and
1999 \2\ 2001 after
------------------------------------------------------------------------
Cigarette papers up to 6\1/2\ long....................
Cigarette papers over 6\1/2\ long.................... Use rates above, but count each 2\3/
4\ inches, or fraction thereof, of
the length of each as one cigarette
paper.
------------------------------------------------------------------------
\1\ Tax rate for less than 50 papers is the same. The tax is not
prorated.
\2\ Before January 1, 2000, books or sets containing 25 papers or less
were not taxable. On and after January 1, 2000, all cigarette papers
are taxable.
[[Page 60]]
[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]
Sec. 275.35 Cigarette tubes.
Cigarette tubes are taxed at the following rates under 26 U.S.C.
5701(d):
------------------------------------------------------------------------
Tax rate for each 50 tubes \1\ for
removals during the years
Product --------------------------------------
1993 to 2000 and 2002 and
1999 2001 after
------------------------------------------------------------------------
Cigarette tubes up to 6\1/2\ long....................
Cigarette tubes over 6\1/2\ long.................... Use rates above, but count each 2\3/
4\ inches, or fraction thereof, of
the length of each as one cigarette
tube.
------------------------------------------------------------------------
\1\ Tax rate for less than 50 tubes is the same. The tax is not
prorated.
[T.D. ATF-420, 64 FR 71943, Dec. 22, 1999]
Classification of Large Cigars and Cigarettes
Sec. 275.37 Statistical classification of large cigars.
Large cigars are divided into eight classes for statistical
purposes, according to the wholesale price or sale price, as applicable.
The eight classes are as follows:
(a) Class A. Large cigars with a wholesale price or sale price, as
applicable of not more than $33.00 per thousand,
(b) Class B. Large cigars with a wholesale price or sale price, as
applicable of more than $33.00 per thousand but not more than $51.00 per
thousand,
(c) Class C. Large cigars with a wholesale price or sale price, as
applicable of more than $51.00 per thousand but not more than $66.00 per
thousand,
(d) Class D. Large cigars with a wholesale price or sale price, as
applicable of more than $66.00 per thousand but not more than $105.00
per thousand,
(e) Class E. Large cigars with a wholesale price or sale price, as
applicable of more than $105.00 per thousand but not more than $120.00
per thousand,
(f) Class F. Large cigars with a wholesale price or sale price, as
applicable of more than $120.00 per thousand but not more than $154.00
per thousand,
(g) Class G. Large cigars with a wholesale price or sale price, as
applicable of more than $154.00 per thousand but not more than $235.294
per thousand, and
(h) Class H. Large cigars with a wholesale price or sale price, as
applicable of more than $235.294 per thousand.
[T.D. ATF-40, 42 FR 5003, Jan. 26, 1977; as amended by T.D. ATF-307, 55
FR 52744, Dec. 21, 1990]
Sec. 275.38 Cigarettes.
For internal revenue tax purposes, small cigarettes are designated
Class A and large cigarettes are designated Class B.
(72 Stat. 1414; 26 U.S.C. 5701)
[26 FR 8191, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
Sec. 275.39 Determination of sale price of large cigars.
The tax imposed on large cigars is computed based on the sale price
(the price for which the large cigars are sold by the importer or
manufacturer). In addition to money, goods or services exchanged for
cigars may be considered as part of the sale price. See Sec. 40.22(b) of
this chapter for information on determining the sale price in special
cases.
[T.D. ATF-420, 64 FR 71944, Dec. 22, 1999; T.D. ATF-422, 64 FR 71948,
Dec. 22, 1999; T.D. ATF-422a, 65 FR 15058, Mar. 31, 2000; T.D. ATF-460,
66 FR 39093, July 27, 2001]
Liability for and Payment of Taxes
Sec. 275.40 Persons liable for tax.
The importer of tobacco products or cigarette papers and tubes will
be liable for the internal revenue taxes imposed thereon by 26 U.S.C.
5701 or 7652: Provided, That tobacco products or cigarette papers or
tubes (other than those previously exported and returned) imported or
brought into the United States, may be released from
[[Page 61]]
customs custody without payment of tax, for delivery to the proprietor
of an export warehouse, to a manufacturer of tobacco products, or to a
manufacturer of cigarette papers or tubes (except for tobacco products),
if such articles are not put up in packages (see Sec. 275.11). Under
these circumstances the transferee will become liable for the internal
revenue tax on such articles upon release from customs custody and the
importer will thereupon be relieved of the liability for such tax. If
the transferee is also the importer, then the importer will not be
relieved of the liability for such tax.
(Aug. 16, 1954, Chapter 736, 68A Stat. 907, as amended (26 U.S.C. 7652);
sec. 201, Pub. L. 85-859, Stat. 1417, as amended (26 U.S.C. 5703))
[T.D. ATF-422, 64 FR 71948, Dec. 22, 1999]
Sec. 275.41 Determination and payment of tax.
Tobacco products and cigarette papers and tubes, imported or brought
into the United States, on which internal revenue taxes are due and
payable, must not be released from customs custody until such taxes have
been determined and paid.
(68A Stat. 907, as amended, 72 Stat. 1417; 26 U.S.C. 7652, 5703)
[T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]
Exemptions From Taxes and Permits
Sec. 275.50 Exemptions.
The Harmonized Tariff Schedule of the United States (19 U.S.C. 1202)
and Customs Regulations, 19 CFR, chapter I, provide for certain
exemptions from internal revenue taxes with respect to tobacco products
and cigarette papers and tubes imported into the United States. These
exemptions include, but are not limited to, certain importations in
passengers' baggage, for use of crew members, and by foreign officials.
Those persons importing tobacco products and cigarette papers or tubes
as described in this section are not required to obtain a permit.
[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D.
ATF-243, 52 FR 43194, Dec. 1, 1986; T.D. ATF-284, 54 FR 12190, Mar. 24,
1989; T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]
Assessment of Taxes
Sec. 275.60 Assessment.
Whenever any person required by law to pay internal revenue tax on
tobacco products or cigarette papers or tubes fails to pay such tax, the
tax shall be ascertained and assessed against such person, subject to
the limitations prescribed in 26 U.S.C. 6501. The tax so assessed shall
be in addition to the penalties imposed by law for failure to pay such
tax when required. Except in cases where delay may jeopardize collection
of the tax, or where the amount is nominal or the result of an evident
mathematical error, no such assessment shall be made until and after
notice has been afforded such person to show cause against assessment.
The person will be allowed 45 days from the date of such notice to show
cause, in writing, against such assessment.
(72 Stat. 1417; 26 U.S.C. 5703)
[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-48, 44 FR 55855, Sept. 28, 1979; T.D.
ATF-232, 51 FR 28084, Aug. 5, 1986; T.D. ATF-243, 51 FR 43194, Dec. 1,
1986]
Customs' Collection of Taxes
Sec. 275.62 Customs' collection of internal revenue taxes on tobacco products and cigarette papers and tubes, imported or brought into the United States.
Internal revenue taxes on tobacco products and cigarette papers and
tubes, imported or brought into the United States, which are to be paid
to the Port Director of Customs or other authorized customs employee, in
accordance with this part, must be collected, accounted for, and
deposited as internal revenue collections by the Port Director of
Customs, in accordance with customs procedures and regulations.
[T.D. ATF-422, 64 FR 71949, Dec. 22, 1999]
Sec. 275.63 Payment of tax by electronic fund transfer.
(a) Each importer who was liable, during a calendar year, for a
gross amount equal to or exceeding five million dollars in taxes on
cigars, cigarettes, cigarette papers, and cigarette
[[Page 62]]
tubes combining tax liabilities incurred under this part and part 40 of
this chapter, shall use a commercial bank in making payment by
electronic fund transfer (EFT) of such taxes during the succeeding
calendar year. Payment of such taxes by cash, check, or money order is
not authorized for an importer who is required, by this section, to make
remittances by EFT. For purposes of this section, the dollar amount of
tax liability is defined as the gross tax liability on all taxable
withdrawals and importations (including similar products brought into
the United States from Puerto Rico or the Virgin Islands) during the
calendar year, without regard to any drawbacks, credits, or refunds, for
all premises from which such activities are conducted by the taxpayer.
(b) For the purposes of this section, a taxpayer includes a
controlled group of corporations, as defined in 26 U.S.C. 1563, and
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except
that the words ``at least 80 percent'' shall be replaced by the words
``more than 50 percent'' in each place it appears in subsection (a) of
26 U.S.C. 1563, as well as in the implementing regulations. Also, the
rules for a ``controlled group of corporations'' apply in a similar
fashion to groups which include partnerships and/or sole
proprietorships. If one entity maintains more than 50% control over a
group consisting of corporations and one, or more, partnerships and/or
sole proprietorships, all of the members of the controlled group are one
taxpayer for the purpose of determining who is required to make
remittances by EFT.
(c) For the purposes of this section, (1) electronic fund transfer
or EFT means any transfer of funds, other than a transaction originated
by check, draft, or similar paper instrument, which is initiated through
an electronic terminal, telephonic instrument, or computer of magnetic
tape, so as to order, instruct, or authorize a financial institution to
either debit or credit an account, in accordance with procedures
established by the U.S. Customs Service, and (2) electronic fund
transfer or EFT does not have the meaning defined in Sec. 275.11 for use
elswhere in this part.
(d) An importer who is required by this section to make remittances
by EFT, shall make the EFT remittance in accordance with the
requirements of the U.S. Customs Service.
(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302);
Sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))
[T.D. ATF-245, 52 FR 534, Jan. 7, 1987, as amended by T.D. ATF-384, 61
FR 54095, Oct. 17, 1996]
Subpart E--Packages
Sec. 275.71 Package.
All tobacco products, cigarette papers and tubes, except as provided
in Sec. 275.75, shall, before removal subject to internal revenue tax,
be put up in packages which shall be of such construction as will
securely contain the articles therein and maintain the notice thereon as
required by this subpart. No package of tobacco products or cigarette
papers or tubes shall have contained in, attached to, or stamped,
marked, written, or printed thereon (a) any certificate, coupon, or
other device purporting to be or to represent a ticket, chance, share,
or an interest in, or dependent on, the event of a lottery, (b) any
indecent or immoral picture, print, or representation, or (c) any
statement or indication that United States tax has been paid.
(72 Stat. 1422; 26 U.S.C. 5723)
[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.
15, 1975, and amended by T.D. ATF-232, 51 FR 28084, Aug. 5, 1986; T.D.
ATF-243, 51 FR 43194, Dec. 1, 1986]
Sec. 275.72 Notice for smokeless tobacco.
(a) Product designation. Every package of chewing tobacco or snuff
shall, before removal subject to internal revenue tax, have adequately
imprinted thereon, or on a label securely affixed thereto, the
designation ``chewing tobacco'' or ``snuff.'' As an alternative,
packages of chewing tobacco may be designated ``Tax Class C,'' and
packages of snuff may be designated ``Tax Class M.''
(b) Product weight. Every package of chewing tobacco or snuff shall,
before removal subject to internal revenue
[[Page 63]]
tax, have adequately imprinted thereon, or on a label securely affixed
thereto, a clear statement of the actual pounds and ounces of the
product contained therein. As an alternative, the shipping cases
containing packages of chewing tobacco or snuff may, before removal,
have adequately imprinted thereon, or on a label securely affixed
thereto, a clear statement, in pounds and ounces, of the total weight of
the product, the tax class of the product, and the total number of the
packages of product contained therein.
(Approved by the Office of Management and Budget under control number
1512-0502)
(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
[T.D. ATF-243, 51 FR 43194, Dec. 1, 1986, as amended by T.D. ATF-446, 66
FR 16602, Mar. 27, 2001]
Sec. 275.72a Notice for pipe tobacco.
(a) Product designation. Every package of pipe tobacco shall, before
removal subject to internal revenue tax, have adequately imprinted
thereon, or on a label securely fixed thereto, the designation ``pipe
tobacco.'' As an alternative, packages of pipe tobacco may be designated
``Tax Class L.''
(b) Product weight. Every package of pipe tobacco shall, before
removal subject to internal revenue tax, have adequately imprinted
thereon, or on a label securely affixed thereto, a clear statement of
the actual pounds and ounces of the product contained therein.
[T.D. ATF-289, 54 FR 48841, Nov. 27, 1989. Redesignated by T.D. ATF-381,
61 FR 37004, July 16, 1996]
Sec. 275.72b Notice for roll-your-own tobacco.
(a) Product designation. Before removal subject to tax, roll-your-
own tobacco must have adequately imprinted on, or on a label securely
affixed to, the package, the designation ``roll-your-own tobacco'' or
``cigarette tobacco'' or ``Tax Class J.''
(b) Product weight. Before removal subject to tax, roll-your-own
tobacco must have a clear statement of the actual weight in pounds and
ounces of the product in the package. This statement must be adequately
imprinted on, or on a label securely affixed to, the package.
(Approved by the Office of Management and Budget under control number
1512-0502)
[T.D. ATF-429, 65 FR 57547, Sept. 25, 2000]
Sec. 275.72c Package use-up rule.
(a) An importer must have used such packaging for roll-your-own
tobacco before January 1, 2000.
(b) An importer of roll-your-own tobacco may continue to place roll-
your-own tobacco in packages that do not meet the marking requirements
of Sec. 275.72b(b) until April 1, 2000.
(c) An importer of roll-your-own tobacco may continue to place roll-
your-own tobacco in packages that do not meet the requirements of
Sec. 275.72b(a) until October 1, 2000.
[T.D. ATF-427, 65 FR 40051, June 29, 2000]
Sec. 275.73 Notice for cigars.
Before removal subject to internal revenue tax, every package of
cigars, except as provided in Sec. 275.75, shall have adequately
imprinted on it, or on a label securely affixed to it--
(a) The designation ``cigars'';
(b) The quantity of cigars contained in the package; and
(c) For small cigars, the classification of the product for tax
purposes (i.e., either ``small'' or ``little'').
(Sec. 202, Pub. L. 85-859, 72 Stat. 1422 (26 U.S.C. 5723))
[T.D. ATF-80, 46 FR 18310, Mar. 24, 1981]
Sec. 275.74 Notice for cigarettes.
Every package of cigarettes, except as provided in Sec. 275.75,
shall, before removal subject to internal revenue tax, have adequately
imprinted thereon, or on a label securely affixed thereto, the
designation ``cigarettes'', the quantity of such product contained
therein; and the classification for tax purposes, i.e., for small
cigarettes either ``small'' or ``Class A'', and for large cigarettes,
either ``large'' or ``Class B''.
(72 Stat. 1422; 26 U.S.C. 5723)
[26 FR 8192, Aug. 31, 1961. Redesignated at 40 FR 16835, Apr. 15, 1975]
[[Page 64]]
Sec. 275.75 Exemptions.
The provisions of this subpart requiring that tobacco products and
cigarette papers and tubes be put up in packages and that proper notice
be placed on such packages shall not apply to imported tobacco products
and cigarette papers and tubes authorized to be released from customs
custody, without payment of internal revenue tax, pursuant to
Sec. 275.50, and shall not apply to tobacco products imported in
passengers' baggage, or by mail where the value does not exceed $250,
where such products are solely for the personal consumption of the
importer or for disposition as his bona fide gift.
(72 Stat. 1422; 26 U.S.C. 5723)
[T.D. 6871, 31 FR 41, Jan. 4, 1966. Redesignated at 40 FR 16835, Apr.
15, 1975, as amended by T.D. ATF-232, 51 FR 28085, Aug. 5, 1986; T.D.
ATF-243, 51 FR 43194, Dec. 1, 1986]
Subpart F--Tobacco Products and Cigarette Papers and Tubes, Imported
Into or Returned to the United States
Sec. 275.81 Taxpayment.
(a) General. The provisions of this section apply to tobacco
products, cigarette papers, and cigarette tubes upon which internal
revenue tax is payable, and which are imported into the United States
from a foreign country or are brought into the United States from Puerto
Rico, the Virgin Islands, or a possession of the United States. For
provisions relating to the importation of previously exported tobacco
products and cigarette papers and tubes, see section 275.82.
(b) Method of payment. Except in the case of articles imported or
brought into the United States under Secs. 275.85 and 275.85a, the
internal revenue tax must be determined and paid to the Port Director of
Customs before the tobacco products, cigarette papers, or cigarette
tubes are removed from customs custody. The tax must be paid on the
basis of a return on the customs form or by authorized electronic
transmission by which the tobacco products, cigarette papers, or
cigarette tubes are duty and tax paid to Customs.
(c) Required information. When tobacco products, cigarette papers,
or cigarette tubes enter the United States for consumption, or when they
are removed for consumption, the importer must include on the customs
form or authorized electronic transmission the following internal
revenue tax information.
(1) For cigarette papers: For cigarette papers imported on or after
January 1, 2000, the importer will show the total number of cigarette
papers, the rate of tax, and the amount of tax due. For cigarette papers
imported prior to January 1, 2000, the importer will show the number of
books or sets, the number of papers in each book or set, the rate of
tax, and the amount of tax due.
(2) For cigarette tubes: The importer will show the number of tubes,
the rate of tax, and the tax due.
(3) For cigarettes: The importer will show whether the cigarettes
are small (class A) or large (class B), the number of cigarettes, the
rate of tax, and the tax due.
(4) For cigars. The importer will show:
(i) The number imported under each HTS item number;
(ii) For large cigars with a sale price of not more than $235.294
per thousand, the number and total sale price of such cigars;
(iii) For large cigars with a sale price of more than $235.294 per
thousand, the number of cigars;
(iv) The applicable tax rate, as specified by Sec. 275.31; and
(v) The tax due.
(5) For smokeless tobacco: The importer will show whether the
product is chewing tobacco or snuff, the number of pounds and ounces,
the rate of tax and the tax due.
(6) For pipe tobacco: The importer will show the designation ``pipe
tobacco'' or ``Tax Class L,'' the number of pounds and ounces, the rate
of tax and the tax due.
(7) For roll-your-own tobacco: The importer will show the
designation ``roll-your-own'' or ``Tax Class J'', the number of pounds
and ounces, the rate of tax and the amount of tax due.
(d) Exceptions. The provisions of this section shall not apply to:
(1) Tobacco products, cigarette papers, or cigarette tubes released
from customs custody and transferred in bond to a U.S. manufacturer of
tobacco
[[Page 65]]
products or cigarette papers and tubes (see Secs. 275.85, 275.85a, or
275.135);
(2) Puerto Rican products on which the tax is prepaid or deferred
(see subpart G); and
(3) Tax payments of cigars from class 6, customs bonded
manufacturing warehouses (see Sec. 275.151).
(68A Stat. 907, as amended (26 U.S.C. 7652); sec. 202, Pub. L. 85-859,
72 Stat. 1417 (26 U.S.C. 5703))
[T.D. ATF-27, 41 FR 23951, June 14, 1976, as amended by T.D. ATF-40, 42
FR 5005, Jan. 26, 1977; T.D. ATF-232, 51 FR 28085, Aug. 5, 1986; T.D.
ATF-243, 51 FR 43194, Dec. 1, 1986; T.D. ATF-246, 52 FR 669, Jan. 8,
1987; T.D. ATF-284, 54 FR 12190, Mar. 24, 1989; T.D. ATF-289, 54 FR
48841, Nov. 27, 1989; T.D. ATF-307, 55 FR 52744, Dec. 21, 1990: T.D.
ATF-421, 64 FR 71924, Dec. 22, 1999; T.D. ATF-424, 64 FR 71932, Dec. 22,
1999; T.D. ATF-420, 64 FR 71944, Dec. 22, 1999; T.D. ATF-422a, 65 FR
15059, Mar. 21, 2000]
Release From Customs Custody of Tobacco Products and Cigarette Papers
and Tubes Without Payment of Tax or Certain Duty