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Electronic Code of Federal Regulations

e-CFR data is current as of April 1, 2020

Title 27Chapter ISubchapter APart 19Subpart Q → Subject Group


Title 27: Alcohol, Tobacco Products and Firearms
PART 19—DISTILLED SPIRITS PLANTS
Subpart Q—Return of Spirits to Bonded Premises and Voluntary Destruction


Conditions for Return of Spirits to Bond

§19.452   Return of taxpaid spirits to bonded premises for destruction, denaturation, redistillation, reconditioning, or rebottling.

(a) Allowable returns. A proprietor may return spirits to bonded premises if the spirits were taxpaid or tax determined by him, by another distilled spirits plant proprietor, or by an importer upon importation through U.S. Customs and Border Protection. However, consistent with section 5215(a) of the IRC the proprietor may return such spirits to bond only for one of the following reasons:

(1) Destruction, in accordance with §19.459;

(2) Denaturation, in accordance with subpart O of this part;

(3) Redistillation, in accordance with subpart L of this part;

(4) Reconditioning; or

(5) Rebottling.

(b) Dump and gauge of returned spirits. The proprietor must immediately dump spirits returned to bonded premises under this section unless the spirits are returned in the sealed metal drums in which they were withdrawn. The proprietor must gauge spirits returned under this section upon their receipt. The proprietor may gauge spirits in bottles based upon the case markings and label information in accordance with §19.286.

(c) Claims for credit or refund of tax. A proprietor may file a claim under §19.264 for credit or refund of tax on spirits returned to bonded premises under this section. In addition to the information specified in §19.264, a proprietor filing a claim for credit or refund of tax must have on file at the plant where spirits are returned to bond the following documentation for each lot of spirits returned:

(1) Documentation that establishes the amount of tax for which the claim for credit or refund is filed. If the spirits contain eligible wine or eligible flavors, the proprietor must have on file a copy of the record of tax determination as prescribed by §19.611, or other documentation that establishes the rate of tax that was paid on the product. In lieu of establishing the actual effective tax rate of the product, the proprietor may claim a credit or refund based on the lowest effective tax rate applied to the product; and

(2) Credit memoranda or comparable financial records evidencing the return of each lot of spirits.

(d) Applicability of Chapter 51 of the IRC. All provisions of chapter 51 of the IRC and of this part that apply to spirits under TTB bond also apply to spirits when returned to bond under this section.

(26 U.S.C. 5008, 5010, 5201, 5207, 5215)

§19.453   Return of bottled spirits for relabeling or reclosing.

A proprietor may return bottled distilled spirits to his bonded premises for relabeling or reclosing. When bottled spirits are returned for relabeling or reclosing, the proprietor may not claim credit or refund of tax on the returned spirits, and no tax will be due on their subsequent removal. The proprietor must relabel or reclose the bottles immediately and must promptly remove the spirits from bonded premises. The provisions of §19.363 apply to relabeling and reclosing performed under this section.

(26 U.S.C. 5215)

§19.454   Other authorized returns to bonded premises.

In addition to the returns to bonded premises specified in §§19.452 and 19.453, there are other permissible returns of distilled spirits products to a proprietor's bonded premises. These other products, the purposes for which they may be returned, and the conditions for their return are listed in the table below. All of these products must be gauged upon receipt.

Type of productPurpose of returnConditions
   (1) For redistillationTo any DSP authorized to produce or process.
(a) Denatured spirits withdrawn free of tax under part 20 of this chapter(2) For subsequent lawful withdrawalTo any DSP. The DSP proprietor must file a consent of surety, form TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
(b) Recovered denatured spirits(1) For restoration or redenaturation(i) To any DSP authorized to denature.
(ii) If SDA needs to be redistilled, the DSP must be authorized to produce or process spirits.
(iii) Returns must be in accordance with part 20 of this chapter.
(c) Recovered articles(1) For restoration or redenaturation(i) To any DSP authorized to denature.
   (ii) If recovered articles need to be redistilled, the DSP must be authorized to produce or process spirits.
   (iii) Returns must be in accordance with part 20 of this chapter.
(d) Articles manufactured under part 20 of this chapter and spirits residues from manufacturing processes(1) For recovery by redistillationTo a DSP authorized to produce or process spirits.
   (1) For redistillationTo any DSP authorized to produce or process.
(e) Specially denatured spirits withdrawn free of tax for export under part 28 of this chapter(2) For subsequent lawful withdrawalTo any DSP. The DSP proprietor must file a consent of surety, TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
(f) Tax-free spirits withdrawn under part 22 of this chapter(1) For redistillation(i) To any DSP authorized to produce or process.
   (2) For subsequent lawful withdrawal(ii) To any DSP. The DSP proprietor must file a consent of surety, TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
   (1) For redistillation(i) To any DSP authorized to produce or process.
(g) Recovered tax-free spirits withdrawn under part 22 of this chapter(2) For restoration (not including redistillation)(ii) To any DSP. The DSP proprietor must file a consent of surety, TTB F 5000.18, to extend the terms of the operations or unit bond to cover the return of spirits.
(h) Spirits withdrawn without payment of tax under part 28 of this chapter for export, for transfer to a customs bonded storage, manipulation, or manufacturing warehouse, for deposit in an FTZ, or for use on vessels or aircraft, and not so exported, transferred, deposited, or used(1) For redistillation(i) For (1)—To any to DSP authorized to produce or process spirits.
   (2) For later lawful removal(ii) For (2)—To the bonded premises from which withdrawn for later lawful removal.
   (iii) For (1) and (2)—Returns must be made in accordance with the provisions of part 28 of this chapter.
(i) Wine spirits withdrawn without payment of tax for use in wine production(1) Any lawful purpose(i) To any DSP.
   (ii) The proprietor must obtain approval as provided in §19.403.
   (iii) Removal of wine spirits from a winery must be in accordance with part 24 of this chapter.
(j) Spirits withdrawn without payment of tax for research, development, or testing(1) For destruction, or return to containers, or return to the distilling system(i) To the DSP from which the spirits were withdrawn.

(19 U.S.C. 81(c), 26 U.S.C. 5001, 5062, 5066, 5214, 5215, 5223, 5273, 5373)

[T.D. TTB-92, 76 FR 9090, Feb. 16, 2011, as amended by T.D. TTB-92a, 76 FR 19908, Apr. 11, 2011]

§19.455   Return of spirits withdrawn for export with benefit of drawback.

(a) Subject to the provisions of §§28.197 through 28.199 of this chapter, whole or partial shipments of spirits withdrawn for export with benefit of drawback may be returned to:

(1) The bonded premises of the distilled spirits plant, pursuant to §19.452; or

(2) To a wholesale liquor dealer or taxpaid storeroom.

(b) Claims for export drawback filed by proprietors on form TTB F 5110.30 which include the returned spirits shall be reduced by the amount of tax paid or determined on the returned spirits.

(26 U.S.C. 5215)

§19.457   Receipt of spirits abandoned to the United States.

Spirits abandoned to the United States may be sold, without payment of the tax, to a proprietor of a distilled spirits plant for denaturation or for redistillation and denaturation, provided that the plant is authorized to denature or redistill and denature spirits. The proprietor must gauge the spirits upon receipt and must keep the spirits apart from all other spirits or denatured spirits until denatured.

(26 U.S.C. 5243)

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