Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 34819 

Packers and Stockyards Act, and 

whether any other Federal or state 

authorities are also relevant. 

(8) What role can reforms of lending 

and loan guarantee systems play to 

ensure better alignment between 

borrowers and lenders? Consider the 

following questions and please explain 

what authorities USDA or other relevant 

agencies might deploy, if any. 

(a) Should borrower income be 

evaluated by lending institutions for 

justification of loan cash-flow only 

based on the minimum or lowest 

quartile of returns, or based on median 

returns, or in some other way? 

(b) Should limitations or additional 

transparency cover the relationship 

between lenders and integrators? Are 

steering payments, prepayment 

penalties, or other finders’ fees of 

concern? 

(c) Should standards and oversight be 

improved for ensuring that credit is fair 

and nondiscriminatory? If so, how? 

(d) How might relevant agencies 

better monitor the lending marketplace, 

including through data collection, 

reporting, and supervision? 

(9) We also invite input on how to 

improve data collection and research 

generally. 

(a) What data and information should 

be collected to assist with analyzing the 

concerns highlighted above? 

(b) How can that information be more 

effectively collected? 

(c) In what ways can AMS or USDA’s 

research agencies make that information 

more available to growers, academics, 

smaller market participants, and other 

relevant parties? 

(d) Please discuss concerns or risks 

with respect to confidentiality or 

collusion that should be considered as 

well. 

(e) How might USDA support 

additional academic research with 

respect to poultry market practices and 

competition? 

(10) Are there other approaches or 

proposals pertaining to regulation of the 

tournament system that USDA should 

consider? 

We invite all comments, suggestions, 

information, and data that would inform 

our thinking on these areas. We are 

particularly interested in views and 

information from poultry companies 

that use tournament systems, from 

poultry growers who operate under such 

arrangements, from rural communities 

that have experience with them, and 

from other participants in the food 

supply chain. To the maximum extent 

possible, and to facilitate effectiveness 

by AMS in analyzing the information, 

please identify submitted comments by 

referring to the enumerated questions in 

this request. 

Additionally, please ensure that your 

comments to this ANPR are separate 

from any comments that you may 

submit to other proposed rules or 

requests for information under the 

Packers and Stockyards Act. To the 

extent that your comment to this ANPR 

repeats information you are filing in 

another comment file to AMS, you may 

reference that other filing by name and 

date of your submission or simply 

repeat that information in your 

submission to this ANPR. 

Comments received by the September 

6, 2022 deadline will be considered. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–11998 Filed 6–7–22; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 25 

[Docket No. TTB–2022–0006; Notice No. 

212] 

RIN 1513–AC48 

Modernization of Qualification 

Requirements for Brewer’s Notices 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: In this notice of proposed 

rulemaking, the Alcohol and Tobacco 

Tax and Trade Bureau (TTB) proposes 

deregulatory amendments to its 

regulations to modernize and streamline 

the qualification requirements for 

Brewer’s Notices. The proposed 

amendments also relax requirements 

associated with reporting certain 

changes to brewery businesses and other 

notification requirements. The proposed 

amendments are a result of TTB’s 

evaluation of its qualification 

requirements and consideration of 

relevant public comments submitted to 

the Treasury Department in response to 

its request for recommendations 

concerning regulations that can be 

eliminated, modified, or streamlined to 

reduce burdens. 

DATES: Comments must be received on 

or before August 8, 2022. 

ADDRESSES: You may electronically 

submit comments to TTB on this 

proposal using the comment form for 

this document as posted within Docket 

No. TTB–2022–0006 on the 

‘‘Regulations.gov’’ website at https://

www.regulations.gov. Within that 

docket, you also may view copies of this 

document, its supporting materials, and 

any comments TTB receives on this 

proposal. A direct link to that docket is 

available on the TTB website at https:// 

www.ttb.gov/beer/notices-of-proposedrulemaking under Notice No. 212. 

Alternatively, you may submit 

comments via postal mail to the 

Director, Regulations and Ruling 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G Street NW, Box 

12, Washington, DC 20005. Please see 

the Public Participation section below 

for further information on the comments 

requested regarding this proposal and 

on the submission, confidentiality, and 

public disclosure of comments. 

FOR FURTHER INFORMATION CONTACT: 

Jesse Longbrake, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW, Box 12, Washington, DC 20005; 

telephone (202) 453–1039, extension 

066. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

A. TTB Evaluation of Permit and 

Registration Application Requirements 

B. TTB Authority 

C. Relationship to Other Notices of 

Proposed Rulemaking 

II. Proposed Changes to the Regulations 

A. Retail Service Operations 

B. Premises Description 

C. Statements of Interest 

D. 30-Day Filing Requirements for Certain 

Changes in the Business 

E. Changes in Trade Names 

F. Retention of Records Off-Premises 

G. Inventory Requirements 

H. Discontinuance of Business 

I. Blanket Bond Form for Multiple 

Breweries 

J. Notice of Intent To Destroy Taxpaid Beer 

Off Premises 

K. Update of OMB Control Numbers 

III. Public Participation 

A. Comments Invited 

B. Submitting Comments 

C. Confidentiality and Disclosure of 

Comments 

IV. Regulatory Analyses and Notices 

A. Executive Order 12866 

B. Regulatory Flexibility Act 

C. Paperwork Reduction Act 

I. Background 

A. TTB Evaluation of Permit and 

Registration Application Requirements 

In fiscal year 2017, the Alcohol and 

Tobacco Tax and Trade Bureau (TTB) 

began an evaluation of the information 

collected in TTB’s permit and 

registration applications. The purpose 

was to identify ways to streamline the 


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application, reduce burden on the 

regulated industry, and ensure that the 

application collects, where possible, 

only information necessary for meeting 

the agency’s statutory obligations. TTB’s 

general approach was to identify 

information being collected that could 

be eliminated without hindering TTB’s 

ability to evaluate an applicant’s 

qualifications and to more narrowly 

focus the application questions to 

capture only the information that is 

needed. Additionally, TTB considered 

whether applicants made any types of 

requests that TTB routinely approved 

such that it might be reasonable to 

amend the regulations to remove the 

need for such requests. 

Similarly, on June 14, 2017, the 

Treasury Department (Treasury) 

published in the Federal Register (82 

FR 27217) a Request for Information 

inviting members of the public to 

submit recommendations for Treasury 

regulations that could be eliminated, 

modified, or streamlined to reduce 

burdens. TTB reviewed comments 

received in response to this request and 

identified proposals that related to 

beginning business in a TTB-regulated 

industry, including Brewer’s Notices. 

Through TTB’s internal evaluation 

and consideration of the public input, 

TTB has identified deregulatory 

measures that TTB could take by 

amending regulations and, also, where 

rulemaking is not required, by 

amending guidance and forms. While 

this document addresses breweries, TTB 

intends to engage in further rulemaking 

to address other regulated industries 

within the context of their respective 

statutory eligibility requirements. 

Specifically, TTB will address in 

separate rulemakings Internal Revenue 

Code (IRC) permit and notice 

requirements for wine producers, as 

well as IRC requirements for TTBregulated tobacco businesses. TTB has 

already published rulemaking 

concerning distilled spirits plants, users 

and dealers of specially denatured 

alcohol and tax-free alcohol, and 

Federal Alcohol Administration Act 

(FAA Act) basic permit holders (Notice 

No. 207, published in the Federal 

Register on December 3, 2021, at 86 FR 

68573). 

With respect to breweries, this 

document proposes to amend the 

regulations to eliminate or narrow the 

range of information that brewers must 

submit with Brewer’s Notices to 

respond more directly to TTB’s statutory 

obligations under the IRC. The proposed 

amendments include: 

• Removing requirements that 

brewers intending to sell and serve beer 

on brewery premises designate and 

maintain a separate ‘‘tavern’’ area 

within the brewery for such activities, 

and including instead general 

provisions to account for beer sold and 

served to customers anywhere on 

brewery premises. 

• Tailoring requirements to describe 

the brewery premises more narrowly. 

TTB also is proposing regulatory 

amendments that will increase industry 

flexibility without creating any new 

obligations. These proposed 

amendments include: 

• Extending deadlines for reporting 

certain changes to the brewer’s business 

from 30 days to 60 days. 

• Allowing brewers to use new trade 

names by notifying TTB in lieu of 

amending their Brewer’s Notice. 

• Allowing brewers to maintain 

required records at a location other than 

the permitted premises without first 

obtaining TTB approval. 

• Reducing the frequency of physical 

inventories in certain circumstances and 

allowing greater flexibility in the timing 

of physical inventories within the 

inventory period. 

• Allowing entities operating 

multiple breweries to secure one bond 

covering all brewery operations rather 

than separate bonds for each brewery. 

• Eliminating the twelve day waiting 

period prior to destroying taxpaid beer 

off brewery premises. 

Section II of this document includes 

more in-depth discussion of these and 

other proposed amendments. 

As noted above, TTB’s deregulatory 

strategy also includes streamlining its 

guidance and forms. TTB has already 

begun deploying such streamlining 

efforts in response to both TTB’s 

internal evaluation of its applications 

and to comments received from the 

public. 

B. TTB Authority 

The IRC, 26 U.S.C. chapter 51, 

imposes Federal excise taxes on beer, 

provides for payment and/or refund of 

those taxes, and prescribes requirements 

related to the operations of brewers. 

Chapter 51 also requires all persons 

intending to brew or produce beer for 

sale (i.e., brewers) to furnish qualifying 

documents to the Secretary of the 

Treasury (Secretary) before starting 

business, including a written notice 

containing the information prescribed 

by regulation as necessary to ensure 

collection of the revenue and, in certain 

cases, a bond to ensure protection of the 

revenue. See 26 U.S.C. 5401. 

With respect to the excise tax on beer, 

chapter 51 generally provides that such 

tax is determined when beer is removed 

for consumption or sale from a qualified 

brewery in the United States, or is 

imported. Beer ‘‘removed for 

consumption or sale’’ includes beer sold 

for consumption on brewery premises. 

See 26 U.S.C. 5052(c)(1). Section 5552 

of the IRC (26 U.S.C. 5552) authorizes 

the Secretary to require ‘‘installation of 

meters, tanks, pipes, or any other 

apparatus for the purpose of protecting 

the revenue,’’ such as requiring means 

to accurately measure the amount of 

beer transferred or removed. Section 

5061 governs the collection of excise tax 

on beer. Section 5061(d) prescribes the 

time periods and due dates for paying 

tax on a deferred basis, and generally 

requires that the taxes be paid on a 

semimonthly basis. However, section 

5061(d)(4) authorizes eligible taxpayers 

to use annual or quarterly tax return 

periods instead of semimonthly periods. 

Chapter 51 also imposes requirements 

governing the operation of breweries, 

including a requirement that brewers 

keep records in the form and manner 

prescribed by regulation, and a 

requirement that brewers make true and 

accurate reports of operations and 

transactions as prescribed by regulation. 

See 26 U.S.C. 5415. In addition, 26 

U.S.C. 7805(a) generally authorizes the 

Secretary to issue regulations to carry 

out the provisions of the IRC. 

TTB administers chapter 51 of the IRC 

pursuant to Treasury Order 120–01, 

dated December 10, 2013, through 

which the Secretary has delegated to 

TTB certain IRC administrative and 

enforcement authorities, including those 

related to Brewer’s Notices. 

Pursuant to its delegated IRC 

authorities, TTB has promulgated 

regulations setting forth qualification 

requirements for breweries at 27 CFR 

part 25. TTB’s regulations at 27 CFR 

25.61 through 25.68 set forth the 

requirements for the qualifying 

documents that brewers must submit to 

TTB, including form TTB F 5130.10, 

Brewer’s Notice. The TTB regulations 

prescribe additional information that 

brewers must include in the Brewer’s 

Notice when they intend to operate a 

‘‘tavern’’ on brewery premises. See 27 

CFR 25.25. A brewery may not 

commence operations until TTB 

approves the Brewer’s Notice. 27 CFR 

25.61(a). TTB proposes amendments to 

the regulations specifying the 

information brewers must provide on 

form TTB F 5130.10 or its electronic 

equivalent, as well as in certain 

supporting documents. 

Concerning determination and 

payment of the tax on beer, TTB’s 

regulations at 27 CFR 25.159 provide 

that the tax will be determined at the 

time of its removal for consumption or 

sale and will be paid by return as 

provided in part 25. TTB’s regulations 


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Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 34821 

generally require that breweries have 

suitable means to accurately measure 

beer for tax determination purposes. 

See, e.g., 27 CFR 25.41. Breweries 

operating taverns are currently required 

to have a ‘‘suitable method for 

measurement of the beer’’ that is tax 

determined for sale to customers for 

consumption at the tavern. 27 CFR 

25.25(c)(1). 

TTB regulations at 27 CFR 25.71 

through 25.79 require brewers to report 

certain changes in the business affecting 

the Brewer’s Notice (e.g., changes in 

address or location, changes in 

stockholders or officers, directors, 

managers, etc.). In addition, regulations 

at 27 CFR 25.291 through 24.301 

include recordkeeping requirements as 

authorized by 26 U.S.C. 5415. 

This notice of proposed rulemaking 

includes proposed amendments to the 

qualification process for breweries, the 

tax determination requirements for beer 

sold for consumption at the brewery, 

and the reporting and recordkeeping 

requirements described above. With 

respect to reporting requirements, in 

instances where TTB’s regulations refer 

to submitting a ‘‘letterhead notice,’’ 

industry members may provide such 

notices electronically in Permits Online. 

Unlike the brewer’s initial submission 

of qualifying documents, these 

‘‘letterhead notices’’ do not require TTB 

approval. TTB is proposing 

amendments to 25 CFR 25.81 to update 

the term ‘‘letterhead notice’’ to the term 

‘‘written notice’’ and to 27 CFR 25.11 to 

add a definition of ‘‘written notice.’’ 

C. Relationship to Other Notices of 

Proposed Rulemaking 

TTB recently published a notice of 

proposed rulemaking titled 

‘‘Modernization of Permit and 

Registration Application Requirements 

for Distilled Spirits Plants,’’ in which 

TTB proposed amendments, generally 

similar to those proposed in this 

document, in 27 CFR parts 1, 17, 19, 20, 

22, 26, 27, 28, and 31. Amendments 

related to FAA Act basic permits— 

including basic permits as importers 

and wholesalers of malt beverages— 

were included in that document and are 

not included in this document. See 

Notice No. 207, 86 FR 68573, 12/03/ 

2021. TTB plans to publish notices of 

proposed rulemaking to propose 

generally similar amendments to 

regulations related to wine, tobacco 

products, and processed tobacco-related 

applications and operations, set forth in 

27 CFR parts 24, 40, 41, and 44. 

II. Proposed Changes to the Regulations 

The amendments proposed in this 

document are intended to modernize 

and streamline the qualification 

processes for breweries under the IRC. 

The general approach TTB adopted in 

developing the proposed amendments 

was to identify information currently 

being collected that could be eliminated 

without hindering TTB’s ability to 

protect and ensure collection of the 

revenue, and to provide more clarity 

and specificity in the questions and 

instructions on the Brewer’s Notice. The 

proposed amendments also relax 

requirements associated with certain 

reporting requirements. 

A. Retail Service Operations 

For brewers who intend to operate a 

‘‘tavern’’ or ‘‘brewpub,’’ TTB proposes 

to remove requirements to designate and 

maintain a separate tavern area within 

the brewery where beer may be sold and 

served to customers for consumption on 

the premises, and replace these with 

general provisions related to 

determining tax on beer that is sold and 

served to customers on the brewery 

premises. (The TTB regulations use the 

term ‘‘tavern’’ although TTB forms and 

guidance also refer to a ‘‘brewpub’’ to 

recognize a term more commonly used 

in the industry.) TTB’s regulations at 27 

CFR 25.25 prescribe additional 

information that brewers must include 

in their Brewer’s Notice when seeking to 

operate a tavern on the brewery 

premises. For instance, a brewer is 

required to identify the areas of the 

brewery premises that will be operated 

as a tavern accessible to the public, and 

to describe the security measures used 

to separate these public areas from the 

non-public areas of the brewery. 

Brewers also are required to describe in 

detail the method they will use for 

measuring beer for the purposes of tax 

determination (i.e., measuring the beer 

set aside to serve to customers onpremises, upon which tax will later be 

paid). Brewers must also identify any 

tanks that will periodically contain taxdetermined beer, as well as any other 

areas of the brewery where taxdetermined beer will be stored. 

As part of TTB’s evaluation of the 

Brewer’s Notice, and in recognition of 

the comments and questions TTB has 

received over the years from brewers 

regarding tavern, brewpub, and taproom 

operations, TTB considered ways to 

simplify the relevant qualification 

requirements and to provide more 

flexibility for brewers considering 

different types of operations. The 

current regulations applicable to the 

concept of a tavern or brewpub have not 

been updated since they were issued in 

1988. They require a separately-defined 

area for retail sales of beer in the 

brewery. These regulations were 

implemented to protect the revenue on 

beer sold for consumption on brewery 

premises. The IRC does not require such 

a separately-defined area, and TTB 

considered if it could eliminate the 

regulatory distinction between a 

brewery and a brewery operating a 

tavern without jeopardizing the 

revenue. 

TTB considered the differences in 

operations between breweries and 

breweries operating taverns (hereinafter 

‘‘brewpubs’’), as currently defined, and 

the related differences in the statutory 

requirements for the permissible 

methods of ‘‘removing’’ beer ‘‘for 

consumption or sale’’ (that is, subject to 

tax). The IRC defines the term ‘‘removal 

for consumption or sale’’ at 26 U.S.C. 

5052(c) to mean: 

(1) The sale and transfer of possession 

of beer for consumption at the brewery; 

or 

(2) Any removal of beer from the 

brewery (except removals without 

payment of tax, e.g., for export or 

transfers in bond to another brewery). 

The first definition relates to beer sold 

and served to a customer for 

consumption at the brewery. The 

second definition relates to beer 

removed for distribution (however, this 

definition also captures, for example, 

beer sold to customers at the brewery to 

drink outside of the brewery, as defined 

by the Brewer’s Notice). 

Beer removed ‘‘from the brewery’’ is 

required by statute to be removed in 

containers. Pursuant to 26 U.S.C. 5412, 

‘‘Beer may be removed from the brewery 

for consumption or sale only in 

hogsheads, packages, and similar 

containers[.]’’ [Emphasis added.] The 

term ‘‘package’’ is further defined at 26 

U.S.C. 5416 as a ‘‘bottle, can, keg, barrel, 

or other original consumer container[.]’’ 

Section 5412’s container requirement 

does not apply to beer removed by sale 

and transfer of possession for 

consumption at the brewery. 

With that understanding of the 

statutory removal requirements, TTB 

recognized that its regulations must 

address three main avenues for the retail 

sale of beer for consumption occurring 

at a brewery, for example: 

(1) Sale of untaxpaid beer from tanks 

to drink on the brewery premises; 

(2) Sale of untaxpaid beer from 

containers (such as barrels or kegs) or in 

containers (such as bottles) to drink on 

the brewery premises; and 

(3) Sale of beer in containers to drink 

outside of the brewery premises. 

Any beer sold in containers at the 

brewery for consumption outside of the 

brewery in the third scenario would be 

a removal ‘‘from the brewery’’ subject to 

tax under 26 U.S.C. 5052(c)(2) and the 


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34822 Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 

container requirements of section 5412 

would apply. TTB is not proposing any 

regulatory amendments affecting this 

type of retail sale. This third scenario 

includes situations where brewers 

operate ‘‘tasting rooms’’ or ‘‘taprooms’’ 

that serve beer and may be adjacent to 

the brewery, but are not part of the 

brewery itself (as defined by their 

Brewer’s Notice). Brewers cannot make 

any sales of their beer at such a tasting 

room or taproom from a tank or by 

running lines from a tank in the brewery 

to an adjacent area that is not part of the 

defined brewery premises. Brewers 

wishing to make such sales could do so 

consistent with TTB’s proposed 

regulations, discussed further below, by 

amending their Brewer’s Notice to 

include the tasting room or taproom 

area in their brewery premises. 

TTB’s proposed amendments address 

the first two avenues of sale described 

above: Sales for consumption at the 

brewery (1) from tanks, and (2) from or 

in containers. The proposed regulations 

eliminate the distinction between a 

brewery and a brewpub, and instead 

outline the ‘‘retail service operations’’ 

brewers are authorized to engage in 

under a Brewer’s Notice. The 

amendments eliminate certain brewpub 

regulatory requirements, in particular 

the requirements to delineate the public 

and non-public areas of the brewery and 

to employ security measures to separate 

those areas. Eliminating these 

requirements would recognize that 

brewers have an interest in providing 

broader access to their brewery 

operations while also ensuring that 

visitors do not interfere with those 

operations. 

The proposed regulations also 

recognize the need to retain current 

policies authorizing breweries engaging 

in retail activities to serve food, taxpaid 

wine, taxpaid distilled spirits, taxpaid 

beer of another brewer’s production, 

brewery related merchandise, and 

anything else not contrary to law. 

The proposed regulations would 

eliminate the need for separate 

qualifications, such as are currently 

present in Permits Online, for breweries 

and brewpubs. Instead, brewers would 

merely provide basic information about 

any ‘‘retail service operations’’ in which 

they intend to engage. 

Brewers engaging in retail service 

operations would be required to keep 

records of such retail service operations, 

and properly account for, for tax 

purposes, any untaxpaid beer sold for 

consumption at the brewery. In general, 

in the case of (1) untaxpaid beer sold 

from tanks, the proposed regulations 

provide that tax will be determined 

based on a measurement of the beer 

dispensed for sale from a tank each day, 

as opposed to current procedures 

generally requiring that tanks be tax 

determined in their entirety when filled. 

TTB believes the proposed method of 

tax determination is simpler and will 

provide greater flexibility by eliminating 

the need for tax determination tanks 

that must be segregated from other 

untaxpaid beer on the brewery 

premises. TTB invites comments on 

whether to maintain tax determination 

tanks as another option for tax 

determination of beer to be sold for 

consumption at the brewery. In the case 

of (2), untaxpaid beer sold in containers, 

barrels and kegs must be tax determined 

at the time they are tapped for sale and 

consumption on premises, while bottles 

must be tax determined at the time they 

are sold for on-premises consumption. 

TTB’s proposed amendments setting 

forth authorized retail service 

operations would replace the current 

§ 25.25. Conforming amendments are 

proposed to §§ 25.11, 25.23, 25.24, 

25.35, 25.41, 25.62, 25.159, and 25.292. 

B. Premises Description 

TTB is proposing to more narrowly 

tailor requirements to describe the 

brewery premises to accelerate TTB’s 

review during initial qualification. TTB 

also is proposing to consolidate 

requirements to provide descriptions of 

alternation operations with the general 

brewery premises description. The TTB 

regulations at 27 CFR 25.62 prescribe, in 

general, information that a brewer must 

provide in a Brewer’s Notice, which 

includes a description of the brewery 

premises. TTB currently collects these 

descriptions in an open-ended narrative 

format. TTB requires more detailed 

narrative descriptions and/or diagrams 

where a brewer wishes to operate a 

tavern in the brewery or intends to 

alternate its premises with an adjacent 

bonded or taxpaid wine premises. See 

27 CFR 25.25 and 25.81. TTB believes 

that more direct questions and 

certifications could enable brewers to 

better understand what information they 

must submit, which may reduce the 

need for additional submissions and 

communication between TTB and 

brewers, and accelerate TTB’s review 

process. TTB therefore proposes 

amendments, described below, to alter 

the format in which descriptions of 

brewery premises and related 

information are collected and to 

consolidate the collection of certain 

such information. 

Currently, § 25.62(a)(5) requires that a 

Brewer’s Notice include a description of 

the brewery in accordance with § 25.68. 

Section 25.68(a) sets forth the specific 

information to be included in the 

description, which includes: (1) A 

description of each tract of land 

comprising the brewery; and (2) a listing 

of each brewery building by its 

designated letter or number, giving the 

approximate ground dimensions and the 

purpose for which ordinarily used. 

Section 25.68(b) also requires that the 

description must be in sufficient detail 

to enable TTB officers to determine the 

boundaries of the brewery. TTB 

proposes to amend § 25.68 to remove 

the requirements to provide a 

description of the tract of land, and to 

number each building. TTB proposes to 

further clarify the specific information 

to be submitted in the brewery 

description, to include: (1) The overall 

dimensions of the building(s) housing 

the brewery and, if the brewery 

occupies less than the entire building, 

the boundaries of the brewery within 

the building; and (2) any portions of the 

brewery that are outdoors, including the 

location of any outdoor tanks. 

Section 25.25 currently requires that a 

brewer desiring to operate a tavern on 

the brewery premises submit certain 

additional information with the 

Brewer’s Notice. Paragraph (b)(1) 

requires the brewer to identify the 

portion of the brewery that will be 

operated as a tavern ‘‘by providing a 

diagram or narrative description of the 

boundaries of the tavern,’’ including 

identification of the areas of the brewery 

that will be accessible to the public. As 

described in section II(A) of this 

document, TTB is proposing to replace 

the current requirements of § 25.25 

entirely with new regulations governing 

retail service operations at the brewery 

and to require a statement concerning 

retail service operations as part of the 

Brewer’s Notice under a new 

§ 25.62(a)(14). 

Section 25.81 sets forth requirements 

related to alternation of the brewery 

premises with a contiguous bonded 

winery or taxpaid wine bottling house, 

including requirements for certain 

qualifying documents. Among those 

qualifying documents, paragraph (b)(2) 

currently requires that brewers seeking 

to engage in such alternation provide 

‘‘special diagrams,’’ in duplicate, 

delineating the brewery premises and 

the bonded or taxpaid wine premises as 

they will exist in their relative operating 

sequence. Paragraph (b)(2) provides that 

the diagrams must clearly depict all 

areas, buildings, floors, rooms, 

equipment, and pipelines which are to 

be subject to alternation in their relative 

operating sequence. TTB believes that 

the information captured in the ‘‘special 

diagrams’’ currently required under 

paragraph (b)(2) can instead be 

consolidated into the premises 


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Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 34823 

1For purposes of 26 U.S.C. sections 5061(e) and 

5051(a)(5)(A), a ‘‘controlled group of corporations’’ 

has the meaning given to such term by 26 U.S.C. 

1563(a), except that ‘‘more than 50 percent’’ must 

be substituted for ‘‘at least 80 percent’’ each place 

it appears in section 1563(a). Section 5061(e)(3)(B) 

clarifies that rules similar to paragraph (3)(A) apply 

to a group of persons under common control where 

one or more of such persons is not a corporation. 

descriptions required under proposed 

§ 25.68. Accordingly, TTB proposes to 

amend § 25.81(b)(2) to require that the 

description submitted under proposed 

§ 25.68 contain the information 

concerning the alternation. TTB also 

proposes clarifying amendments to 

§ 25.81 to capture brewery alternation 

with an adjacent distilled spirits plant 

(DSP). This amendment is consistent 

with TTB’s existing regulations at 27 

CFR 19.143, which allow alternation 

between a DSP and brewery. 

C. Statements of Interest 

TTB proposes amendments to clarify 

the scope of the collection of 

information related to persons holding 

ownership interests in a business. TTB 

collects these statements of interest in 

accordance with TTB’s statutory 

obligations to collect the information 

necessary to protect and ensure 

collection of the revenue. See 26 U.S.C. 

5401(a). 

TTB must identify circumstances in 

which a brewery’s ownership structure 

would affect the brewery’s required 

method of tax payment and/or the 

brewery’s eligibility for certain reduced 

rates of tax. Pursuant to 26 U.S.C. 

5061(e), any taxpayer who, in any 

calendar year, was liable for at least 

$5,000,000 in taxes on distilled spirits, 

wines, or beer must pay such taxes in 

the following year by electronic fund 

transfer. Paragraph (3)(A) of that 

subsection provides that, in the case of 

a controlled group of corporations, all 

component members of the group are 

treated as one taxpayer.1 To determine 

whether a brewer belongs to a 

controlled group, and thereby to enforce 

section 5061(e), TTB must collect 

information identifying the persons 

holding ownership interests in the 

business. 

Determining whether a prospective 

brewery is a member of a controlled 

group is also necessary to determine 

whether the brewer may be eligible for 

certain reduced tax rates upon TTB 

approval of a Brewer’s Notice. Pursuant 

to 26 U.S.C. 5051(a)(1)(A), a reduced 

rate of tax is available on the first 

6,000,000 barrels of beer brewed by the 

brewer and removed during the 

calendar year for consumption or sale. 

Section 5051(a)(2) provides a further 

reduced rate on the first 60,000 barrels 

of beer brewed and removed during a 

calendar year, available to brewers who 

produce not more than 2,000,000 barrels 

of beer during the calendar year. 

The reduced rates under sections 

5051(a)(1)(A) and (a)(2) each take into 

account the collective production and 

removal activity of a controlled group. 

See 26 U.S.C. 5051(a)(5)(A). For 

example, if a Brewer’s Notice is to be 

issued to a brewery that produces 

50,000 barrels per year, but which is 

part of a controlled group with another 

brewery producing 3,000,000 barrels per 

year, TTB will need to collect 

information to identify the controlled 

group structure and thereby ensure that 

the breweries within the controlled 

group do not claim reduced tax rates for 

which they are ineligible. 

TTB proposes amendments to 27 CFR 

25.66 to clarify and standardize the 

collection of the basic identifying 

information of persons with an interest 

in the business. The amended § 25.66 

provides that: (1) The requirement to 

disclose basic identifying information 

(i.e. names and addresses) of persons 

with an ownership interest in the 

business applies to persons with an 

interest at least equivalent to that of a 

principal stockholder in a corporation— 

that is, an ownership interest of 10 

percent or greater; and (2) where a 

‘‘person’’ holding such an interest is a 

legal entity other than an individual, the 

brewer must provide the name, title, 

and place of residence (city and State) 

of a representative individual for that 

entity. The representative individual 

generally will be the individual 

designated by the entity to represent the 

entity’s interest in the business or, in 

the absence of a designated individual, 

an owner, chief officer or manager, or 

person with similar authority within the 

entity. 

TTB believes that this is the minimum 

amount of information required to 

identify the individuals with an interest 

in the business and to evaluate the 

brewer as to any potential controlled 

group affiliations. 

D. 30-Day Filing Requirements for 

Certain Changes in the Business 

TTB proposes to extend the reporting 

period for certain changes in a brewery’s 

business to 60 days. The TTB 

regulations generally require that, when 

there is a change in the information 

submitted in a Brewer’s Notice, the 

proprietor of the business must notify 

TTB of the change. The timing and form 

of this notification differs depending on 

the type of business change. 

Proprietors must report some business 

changes to TTB within a certain amount 

of time following the change, generally 

within 30 days. For example, the TTB 

regulations at 27 CFR 25.75 require that 

the brewer submit an amended Brewer’s 

Notice within 30 days of any change in 

the list of officers or directors furnished 

with the original Brewer’s Notice. 

Comments received in response to 

Treasury’s 2017 request for information, 

described in section I(A) of this 

document, suggest that 30 days is too 

short a time for regulated entities to 

assemble the information that is 

required. These comments suggested 

that TTB should extend such filing 

deadlines to 60 days. 

TTB reviewed these proposals and 

concluded that extending existing 

deadlines for reporting changes in the 

business (including in some cases by 

amending Brewer’s Notices) from 30 to 

60 days may not pose risk to the 

revenue or raise other concerns. 

Accordingly, TTB proposes 

amendments to extend such deadlines 

in 27 CFR 25.71, 25.74, and 25.75. 

Section 25.71 currently requires that, 

unless another time period is specified, 

a brewer submit an amended notice 

within 30 days of ‘‘a change with 

respect to the information shown in the 

Brewer’s Notice, Form 5130.10.’’ 

Section 25.74 requires a brewer to 

submit an amended notice to TTB 

within 30 days of a change in control or 

management of a business caused by the 

sale or transfer of capital stock. Section 

25.75 generally requires that a brewer 

submit an amended Brewer’s Notice 

within 30 days of a change to the list of 

officers or directors. TTB proposes to 

extend each of the above reporting 

deadlines from 30 to 60 days. 

E. Changes in Trade Names 

TTB proposes to revise currentlyreserved section 27 CFR 25.76 to allow 

changes to, or additions of, trade names 

through a written notice to TTB rather 

than through an amended Brewer’s 

Notice. The regulations at § 25.71(a)(1) 

currently require that brewers submit an 

amended Brewer’s Notice for a change 

with respect to information shown in 

the Brewer’s Notice, which includes the 

list of trade names required by 27 CFR 

25.62(a)(6). The proposed regulation 

clarifies that a brewer need only notify 

TTB of the addition of a trade name 

prior to using such name for marking or 

labeling purposes as required by subpart 

J of part 25 (27 CFR 25.141—25.145). 

TTB’s Permits Online system already 

includes a function for reporting 

additional trade names, which will 

satisfy the proposed § 25.76’s 

requirement for a written notice. 

TTB notes that it remains the 

responsibility of the brewer to ensure 

that any trade name is properly 


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34824 Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 

registered with the applicable State or 

local government. Brewers should 

further note that the FAA Act prohibits 

false or misleading statements on malt 

beverage labels, and TTB will not 

approve an application for label 

approval proposing to use a trade name 

on a malt beverage label that gives a 

misleading impression as to the age, 

origin, or identity of the product. 27 

U.S.C. 205(e). The FAA Act also 

prohibits the use of misleading trade 

names when advertising malt beverages. 

27 U.S.C. 205(e)(5). 

F. Retention of Records Off-Premises 

TTB is proposing amendments to 

allow records to be stored at a location 

other than the brewery and to allow 

brewers to simply notify TTB of their 

intention to store records at an offbrewery location, rather than apply for 

approval. As part of its evaluation of 

permit and registration applications, 

TTB sought to identify any types of 

requests to vary from the regulations 

that applicants commonly submitted 

with their permit or registration 

applications that TTB routinely 

approved. One common request from 

brewers has been for approval to retain 

required records at a location other than 

the premises covered by the Brewer’s 

Notice. As a result, TTB proposes to 

amend 27 CFR 25.300 to allow brewers 

to keep records at another location upon 

providing a written notice to TTB. The 

amendments provide that required 

records must still be made available at 

the brewery premises upon request, but 

that copies will generally satisfy this 

requirement (consistent with current 

TTB policy, ‘‘copies’’ includes 

electronic copies). 

G. Inventory Requirements 

TTB is proposing amendments 

reducing the frequency of physical 

inventories in certain circumstances and 

allowing greater flexibility in the timing 

of physical inventories within the 

inventory period. The TTB regulations 

at 27 CFR 25.294 require that brewers 

take physical inventories of beer and 

cereal beverages on hand at least once 

each calendar month and prescribe the 

information required on the inventory 

record. Section 25.294 requires that 

brewers take the required inventory 

within seven days of the close of the 

calendar month for which it is made. 

One comment received in response to 

Treasury’s request for information seeks 

elimination of § 25.294 or, alternatively, 

relaxation of its requirements to allow 

inventories to be taken within the final 

15 days of the month. The comment 

suggests that these amendments would 

reduce burdens on both TTB and 

industry. TTB considered these 

suggestions and proposes to relax 

inventory requirements as described 

below. 

With respect to the frequency of 

physical inventories, TTB proposes to 

align the taking of inventories with the 

filing of tax returns for brewers who file 

less frequently than monthly. As 

described in section I(B) of this 

document, 26 U.S.C. 5061(d) requires 

that the taxes on beer be paid on a 

semimonthly basis. However, section 

5061(d)(4) authorizes eligible taxpayers 

to use annual or quarterly tax return 

periods instead of semimonthly periods. 

Specifically, section 5061(d)(4)(A)(ii) 

allows a taxpayer who reasonably 

expects to be liable for not more than 

$1,000 in excise taxes for the calendar 

year and who was liable for not more 

than $1,000 in such taxes in the 

preceding calendar year to make returns 

annually. Section 5061(d)(4)(A)(i) 

allows a taxpayer who reasonably 

expects to be liable for not more than 

$50,000 in excise taxes for the calendar 

year and who was liable for not more 

than $50,000 in such taxes in the 

preceding calendar year to make returns 

quarterly. TTB has implemented these 

provisions in its regulations at 27 CFR 

25.164. TTB proposes to amend § 25.294 

to allow brewers authorized by 26 

U.S.C. 5061(d) and § 25.164 of the TTB 

regulations to file tax returns on an 

annual or quarterly basis to complete 

physical inventories on an annual or 

quarterly basis, respectively. Brewers 

required to file semimonthly tax returns 

will still be required to conduct 

monthly physical inventories. 

TTB further proposes to amend 

§ 25.294 to allow physical inventories to 

be taken within 15 days of the close of 

the applicable inventory period (i.e., 

month, quarter, or year), rather than 

within 7 days of the close of the 

applicable inventory period. 

H. Discontinuance of Business 

TTB proposes to amend 27 CFR 25.85 

to streamline procedures for 

discontinuing business as a brewer. The 

current § 25.85 requires a brewer 

discontinuing its business to first file a 

notice to that effect using the Brewer’s 

Notice form, TTB F 5130.10, or its 

electronic equivalent in Permits Online. 

Under the regulations, TTB must 

approve and return a copy of the notice 

to the brewer once ‘‘all beer has been 

lawfully disposed of.’’ This may require 

additional communication with the 

brewer prior to approving the 

discontinuance notice. Once TTB 

approves and returns the notice, the 

brewer must file a ‘‘final report’’ on 

form TTB F 5130.9, ‘‘Brewer’s Report of 

Operations,’’ or its electronic 

equivalent, showing no beer or cereal 

beverage on hand. 

TTB proposes to amend § 25.85 to 

allow a written notice to the appropriate 

TTB officer to serve as adequate notice 

of discontinuance of business, rather 

than requiring submission of form TTB 

F 5130.10 and TTB approval. The notice 

must indicate the date on which 

business discontinued or will 

discontinue. The proposed amendments 

also dispose of the blanket requirement 

for a final report and provide that the 

brewer must submit such report only 

upon request of the appropriate TTB 

officer. While TTB will continue to 

examine the operations of closing 

businesses on a case-by-case basis to 

ensure that there are no outstanding tax 

liabilities, this examination would no 

longer impact TTB’s processing of 

notices of discontinuance of business. 

TTB believes this proposal will ease 

burdens on brewers exiting the industry. 

TTB is also proposing conforming 

amendments to 27 CFR 25.102, 

Termination of surety’s liability, to 

remove a reference to TTB’s ‘‘approval’’ 

of a discontinuance notice. Under the 

proposed § 25.85, a notice of 

discontinuance of business is effective 

on the date indicated on the notice 

submitted to TTB. 

I. Blanket Bond Form for Multiple 

Breweries 

TTB is proposing amendments 

allowing entities operating multiple 

breweries to secure one bond covering 

all brewery operations rather than 

separate bonds for each brewery. The 

TTB regulations at 27 CFR 25.91 

generally require that every person 

intending to commence business as a 

brewer must file a bond covering 

operations at the brewery at the time of 

filing the original Brewer’s Notice. 

There is an exemption to the bond 

requirement at 27 CFR 25.91(e) for 

brewers who are eligible to pay tax on 

a deferred basis annually or quarterly 

pursuant to 27 CFR 25.164. Section 

25.91 further requires the brewer to file 

a new bond or continuation certificate 

every four years. A comment received in 

response to Treasury’s request for 

information requests that TTB allow 

entities operating multiple breweries to 

obtain blanket bonds covering all 

locations under one bond. The comment 

suggests that this would reduce the 

amount of effort required to procure and 

maintain multiple bonds with differing 

expiration dates. 

TTB agrees that allowing entities 

operating multiple breweries to secure 

one bond covering all operations is an 

appropriate measure to reduce burden 


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Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 34825 

on both industry and TTB. TTB is 

proposing amendments to §§ 25.91 and 

25.93 to provide this option and set 

forth the penal sum requirements 

associated with such blanket bonds. 

TTB’s proposed amendments generally 

provide that the penal sum required for 

a blanket bond will be equal to the 

aggregate of such sums applicable to 

each brewery location, as calculated 

under current regulation. TTB will also 

amend form TTB F 5130.22, Brewer’s 

Bond, to allow coverage of multiple 

breweries. 

J. Notice of Intent To Destroy Taxpaid 

Beer Off Premises 

TTB is proposing to eliminate the 

requirement that brewers notify TTB 

prior to destroying taxpaid beer off 

brewery premises. The TTB regulations 

at 27 CFR 25.222 require that brewers 

destroying taxpaid beer off brewery 

premises submit to TTB a notice of 

intent (NOI) containing specific 

information about the destruction at 

least 12 days prior to the destruction. 

Generally, TTB requires brewers to 

submit the information contained in the 

NOI with a subsequent claim for refund 

or credit of tax pursuant to 27 CFR 

25.283. The NOI is intended to provide 

TTB an opportunity to assign personnel 

to witness a destruction under 25.223. 

In response to the COVID–19 pandemic, 

TTB suspended the NOI requirement 

and instead has relied on the supporting 

information submitted with claims, and 

TTB has requested additional proof of 

destruction where necessary (as such 

proof is not specifically required as 

supporting information under § 25.283). 

To provide brewers additional 

flexibility in the timing of beer 

destructions, and to avoid requiring 

brewers to store taxpaid beer longer 

than is necessary to arrange its 

destruction, TTB is proposing to 

permanently eliminate the requirement 

that brewers notify TTB prior to 

destroying taxpaid beer off brewery 

premises, as well as the provision 

concerning routine TTB supervision of 

such destruction. TTB is proposing to 

amend § 25.283 to instead require that 

brewers submit, with a claim for refund 

or credit of tax on taxpaid beer 

destroyed off brewery premises, proof of 

destruction in the form of commercial 

records. TTB is also proposing to amend 

27 CFR 25.221 to give TTB discretion to 

require a brewer to submit an NOI 

before destruction if the appropriate 

TTB officer determines that prenotification is necessary to protect the 

revenue. 

K. Update of OMB Control Numbers 

In this document, TTB also proposes 

to update the Office of Management and 

Budget (OMB) control numbers and, as 

needed, the list of regulatory sections in 

27 CFR part 25 containing information 

collections covered by those numbers. 

Therefore, in 27 CFR 25.5, TTB 

proposes to: (1) Update the OMB control 

numbers previously assigned to TTB’s 

predecessor agency, the former Bureau 

of Alcohol, Tobacco and Firearms (ATF) 

(OMB No. 1512–l), to the control 

numbers currently assigned to TTB 

(OMB No. 1513–l); (2) add 

inadvertently missing OMB control 

numbers for existing information 

collections and remove control numbers 

for obsolete collections; and (3) add 

inadvertently missing sections, remove 

obsolete sections, or otherwise correct 

the list of sections containing 

information collections. 

OMB has previously reviewed and 

approved all of the information 

collections contained in the part 25 

regulations listed below in accordance 

with the Paperwork Reduction Act of 

1995 (44 U.S.C. 3507). The update, 

addition, or removal of OMB control 

numbers and regulatory sections in 

§ 25.5 is merely informational in nature, 

and these proposed technical and 

conforming amendments do not change 

the requirements or burden of any 

currently approved TTB information 

collection contained in part 25. 

The OMB control numbers and the 

regulatory sections containing 

information collections in part 25 are as 

follows: 

OMB Control No. Occurs in part 25 in section(s) 

1513–0005 (Letterhead Applications & Notices Filed by Brewers, & 

Brewer’s Notice).

25.23, 25.52, 25.61, 25.62, 25.64, 25.66, 25.68, 25.71–25.81, 25.85, 

25.141, 25.142, 25.144, 25.158, 25.167, 25.184, 25.213, 25.221, 

25.272, 25.273, 25.277, & 25.282. 

1513–0007 (Brewer’s Report of Operations, and Quarterly Brewer’s 

Report of Operations).

25.296(b), & 25.297. 

1513–0009 (Application to Operate Wine Premises, & Wine Bond) ....... 25.81(b)(3). 

1513–0013 (Change of Bond (Consent of Surety)) ................................. 25.72, 25.73, 25.77, 25.81, 25.92, 25.95, 25.103, & 25.271. 

1513–0014 (Power of Attorney) ............................................................... 25.65. 

1513–0015 (Brewer’s Bonds and Brewer’s Bonds Continuation Certificates).25.73, 25.77, 25.91, 25.93, 25.94, 25.95, 25.97, 25.98, & 25.274. 

1513–0030 (Claims—Alcohol, Tobacco, and Firearms Taxes) ............... 25.281–25.283, 25.285, & 25.286. 

1513–0048 (Registration of Distilled Spirits Plants) ................................. 25.81(b)(5). 

1513–0058 (Usual & Customary Records Maintained by Brewers) ........ 25.42, 25.186, 15.192, 25.195, 25.196, 25.211, 25.252, 25.263, 

25.264, 25.276, 25.291–25.296, 25.300, & 25.301. 

1513–0083 (Excise Tax Return) .............................................................. 25.160, 25.163–25.166, 25.168, 25.175, 25.224, 25.285, & 25.298. 

1513–0085 (Principal Place of Business Address & Place of Production 

Coding on Beer & Malt Beverage Labels).

25.241–25.143. 

1513–0086 (Marks on Brewery Equipment & Structures, & Marks & Labels on Containers of Beer).25.24, 25.35, 25.141–25.143, 25.145, 25.192, 25.196, 25.213, 25.231, 

25.242, 25.251, & 25.263. 

1513–0088 (Alcohol, Tobacco, and Firearms Related Documents for 

Tax Returns and Claims).

25.72–25.75, 25.77, 25.78, 25.151, 25.163, 25.276, 25.281–25.286, 

25.291, 25.298, & 25.300. 

1513–0118 (Formulas for Fermented Beverage Products) ..................... 25.53, & 25.55–25.58. 

1513–0122 (Formula & Process for Domestic & Imported Alcohol Beverages.25.53, & 25.55–25.58. 

The proposed § 25.5 also includes 

changes to existing information 

collections as discussed in section IV(C) 

of this document. 

III. Public Participation 

A. Comments Invited 

TTB invites comments from interested 

members of the public on the proposals 

described in this document. TTB also 

invites comments on any additional 

means to streamline the Brewer’s Notice 

within the parameters of TTB’s statutory 

obligations. As noted in section II(A) of 


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34826 Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 

this document, TTB specifically invites 

comments from brewers on whether to 

maintain tax determination tanks as 

another option for tax determination of 

beer to be sold for consumption at the 

brewery. 

B. Submitting Comments 

You may submit comments on this 

proposal as an individual or on behalf 

of a business or other organization via 

the Regulations.gov website or via 

postal mail, as described in the 

ADDRESSES section of this document. 

Your comment must reference Notice 

No. 212 and must be submitted or 

postmarked by the closing date shown 

in the DATES section of this document. 

You may upload or include attachments 

with your comment. You also may 

submit a comment requesting a public 

hearing on this proposal. The TTB 

Administrator reserves the right to 

determine whether to hold a public 

hearing. 

C. Confidentiality and Disclosure of 

Comments 

All submitted comments and 

attachments are part of the rulemaking 

record and are subject to public 

disclosure. Do not enclose any material 

in your comments that you consider 

confidential or that is inappropriate for 

disclosure. 

TTB will post, and you may view, 

copies of this document, its supporting 

materials, and any comments TTB 

receives about this proposal within the 

related Regulations.gov docket. In 

general, TTB will post comments as 

submitted, and it will not redact any 

identifying or contact information from 

the body of a comment or attachment. 

Please contact TTB’s Regulations and 

Rulings division by email using the web 

form available at https://www.ttb.gov/ 

contact-rrd, or by telephone at 202–453– 

2265, if you have any questions 

regarding comments on this proposal or 

to request copies of this document, its 

supporting materials, or the comments 

received. 

IV. Regulatory Analysis and Notices 

A. Executive Order 12866 

It has been determined that this 

proposed rule is not a significant 

regulatory action as defined by 

Executive Order 12866. Therefore, a 

regulatory impact assessment is not 

required. 

B. Regulatory Flexibility Act 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.), 

TTB has analyzed the potential 

economic effects of this action on small 

entities. In lieu of the initial regulatory 

flexibility analysis required to 

accompany proposed rules under 5 

U.S.C. 603, section 605 allows the head 

of an agency to certify that a rule will 

not, if promulgated, have a significant 

economic impact on a substantial 

number of small entities. The following 

analysis provides the factual basis for 

TTB’s certification under section 605. 

Impact on Small Entities 

While TTB believes the majority of 

businesses subject to this proposed rule 

are small businesses, the changes 

proposed in this document will not 

have a significant economic impact on 

those small entities. The proposed 

amendments are generally aimed at 

reducing burden on regulated entities of 

all sizes by: 

(1) Eliminating the collection of 

certain information from Brewer’s 

Notices; 

(2) Replacing required narrative 

descriptions of the premises with more 

specific information; 

(3) Extending deadlines for reporting 

certain changes in the brewer’s 

business; 

(4) Streamlining procedures for 

brewers using new trade names; 

(5) Allowing the maintenance of 

required records at locations other than 

the brewery premises through a 

notification rather than an application 

for an alternate procedure; 

(6) Clarifying which individuals are 

required to submit statements of 

financial interest in the business in 

connection with an application for a 

Brewer’s Notice; 

(7) Reducing the frequency of 

physical inventories for certain brewers 

and providing additional flexibility in 

the timing of inventories; 

(8) Streamlining procedures for 

discontinuing business as a brewer; 

(9) Allowing entities operating 

multiple breweries to secure one bond 

covering all operations; and 

(10) Eliminating the requirement that 

brewers notify TTB before voluntarily 

destroying taxpaid beer off brewery 

premises. 

On June 14, 2017, the Treasury 

Department (Treasury) published in the 

Federal Register (82 FR 27217) a 

Request for Information inviting 

members of the public to submit views 

and recommendations for Treasury 

regulations that can be eliminated, 

modified, or streamlined to reduce 

burdens. TTB reviewed comments 

received in response to this request and 

identified proposals that related to the 

permit application or, more generally, to 

beginning business in a TTB-regulated 

industry. Many of the proposed changes 

are consistent with recommendations 

submitted by industry in response to 

Treasury’s request. 

To reduce the information collected 

in applications for Brewer’s Notices, 

TTB proposes amendments to 27 CFR 

25.25 to eliminate requirements for 

brewers interested in engaging in retail 

service operations to specifically 

delineate and identify the locations 

within the brewery where such 

operations will take place and to 

describe the security measures they will 

employ to segregate the public service 

area (the ‘‘tavern,’’ as described in 

current regulation) from the brewing 

areas. 

To streamline brewery description 

requirements, TTB proposes 

amendments to 27 CFR 25.68 and 25.81 

to replace requirements for narrative 

descriptions of the brewery premises 

with requirements to submit more 

specific information regarding the 

premises. For example, § 25.68 currently 

requires a detailed narrative description 

of the brewery premises, including each 

tract of land covered by the brewery, 

featuring ‘‘approximate ground 

dimensions.’’ The proposed 

amendments to § 25.68 remove the 

narrative description requirements and 

instead require the submission of more 

limited information illustrating certain 

specified attributes. 

An example of extending deadlines 

for reporting changes in a permitted or 

registered business is the proposed 

amendment to § 25.71, which provides 

the general rules for notifying TTB of 

any changes in the information included 

in a Brewer’s Notice. Section 25.71 

generally requires that when such 

changes occur, the brewer must file an 

amended Brewer’s Notice within 30 

days. The proposed amendments to 

§ 25.71 extend this deadline to 60 days. 

TTB proposes similar amendments at 

§§ 25.74 and 25.75. 

Regarding changes in trade names, 

TTB’s regulations at 27 CFR 25.71(a)(1) 

currently require that brewers submit an 

amended Brewer’s Notice when there is 

a change in the information shown on 

the notice, which includes the list of 

trade names required by 27 CFR 

25.62(a)(6). The proposed amendments 

to 27 CFR 25.76 clarify that a brewer 

need only notify TTB of the addition of 

a trade name prior to using such name 

for labeling purposes as required by 

subpart J of part 25 (27 CFR 25.141– 

25.145), and may notify TTB through a 

written notice. TTB’s Permits Online 

system already includes a function for 

reporting additional trade names, which 

will satisfy the proposed § 25.76’s 

requirement for a written notice. 

Concerning records maintenance, 

current recordkeeping requirements 


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Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 34827 

require that brewers maintain 

prescribed records at the brewery. The 

proposed amendments to 27 CFR 25.300 

generally allow for the maintenance of 

required records at locations other than 

the brewery upon written notice to TTB. 

With respect to the collection of 

background information, TTB proposes 

amendments to 27 CFR 25.66 to clarify 

the individuals who are required to 

submit statements of ownership interest 

in a business submitting a Brewer’s 

Notice. The proposed amendments 

clarify that: (1) such statements of 

interest are required only from persons 

with an ownership interest in the 

applicant business of 10 percent or 

greater; and (2) where a ‘‘person’’ 

holding such an interest is a legal entity 

other than an individual, a brewer must 

submit basic identifying information 

about a representative individual for 

that entity. 

To ease burdens associated with 

conducting physical inventories of beer, 

TTB proposes amendments to 27 CFR 

25.294 to reduce the frequency with 

which brewers are required to conduct 

inventories where such brewers are 

eligible to file annual or quarterly tax 

returns under 26 U.S.C. 5061(d)(4). 

Section 5061(d)(4) allows brewers 

falling under certain annual tax liability 

thresholds to file annual or quarterly tax 

returns, rather than semimonthly 

returns. The proposed amendment 

aligns inventories with the annual or 

quarterly return periods, where 

applicable. The proposed amendments 

to § 25.294 also provide additional 

flexibility to all brewers by allowing 

inventories to be taken within the final 

15 days of the applicable inventory 

period (i.e., month, year, or quarter), 

rather than within the final 7 days. 

To streamline procedures for 

discontinuing business as a brewer, TTB 

proposes to amend § 25.85 to allow a 

written notice to the appropriate TTB 

officer to serve as adequate notice of 

discontinuance of business, rather than 

requiring the outgoing brewer to file and 

receive TTB approval of a new Brewer’s 

Notice. The proposed notice must 

indicate the date on which the business 

discontinued or will discontinue. The 

proposed amendments also dispose of 

the blanket requirement for a final 

report and provide that a brewer must 

submit such report only upon request of 

the appropriate TTB officer. 

To provide additional flexibility in 

securing brewery bond coverage, TTB 

proposes amendments to 27 CFR 25.91 

and 25.93 to allow entities operating 

multiple breweries to secure one bond 

covering all operations rather than 

requiring separate bonds for each 

brewery. The amendments allowing 

blanket bonds will reduce the amount of 

effort required to procure and maintain 

multiple bonds with differing expiration 

dates. 

To provide brewers additional 

flexibility in the timing of beer 

destructions, and to avoid requiring 

brewers to store taxpaid beer longer 

than is necessary to arrange its 

destruction, TTB is proposing to 

eliminate the requirement that brewers 

notify TTB prior to destroying taxpaid 

beer off brewery premises. TTB is 

proposing to amend § 25.283 to instead 

require that brewers submit, with a 

claim for refund or credit of tax on 

taxpaid beer destroyed off brewery 

premises, proof of destruction. 

In conclusion, while the entities 

affected by the proposed rule include a 

substantial number of small entities, 

TTB expects the effects of the changes 

in this proposed rule to include modest 

burden reductions for the affected 

entities. 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.), 

TTB certifies that this proposed rule, if 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities. The proposed 

rule will not impose, or otherwise 

cause, a significant increase in 

reporting, recordkeeping, or other 

compliance burdens on a substantial 

number of small entities. Accordingly, a 

regulatory flexibility analysis is not 

required. Pursuant to 26 U.S.C. 7805(f), 

TTB will submit the proposed 

regulations to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on the 

impact of the proposed regulations on 

small businesses. 

C. Paperwork Reduction Act 

As discussed above, in 27 CFR part 

25, TTB proposes to update the Office 

of Management and Budget (OMB) 

control numbers and the list of 

regulatory sections containing 

information collections. OMB has 

previously reviewed and approved all of 

the information collections contained in 

the part 25 regulations in accordance 

with the Paperwork Reduction Act of 

1995 (44 U.S.C. 3507). The OMB control 

numbers assigned to information 

collections currently contained in part 

25 are: 1513–0005, 1513–0007, 1513– 

0009, 1513–0013, 1513–0014, 1513– 

0015, 1513–0030, 1513–0058, 1513– 

0083, 1513–0085, 1513–0086, 1513– 

0088, 1513–0118, and 1513–0122. 

The update, addition, or removal of 

OMB control numbers and section 

numbers containing information 

collections in part 25 is merely 

informational in nature, and these 

technical amendments do not change 

the requirements or burden of any 

currently approved TTB information 

collection. An agency may not conduct 

or sponsor, and a person is not required 

to respond to, a collection of 

information unless it displays a valid 

control number assigned by OMB. 

In addition to those technical updates, 

several regulations specifically 

addressed in this document affect 

current collections of information under 

control numbers 1513–0005, 1513–0015, 

1513–0030, 1513–0058, 1513–0083, and 

1513–0086. The specific regulatory 

sections in this proposed rule that 

contain such collections of information, 

either current or proposed, are §§ 25.23, 

25.24, 25.25, 25.35, 25.62, 25.66, 25.68, 

25.71, 25.74, 25.75, 25.76, 25.81, 25.85, 

25.91, 25.93, 25.167, 25.221, 25.222, 

25.225, 25.283, 25.284, 25.292, 25.294, 

and 25.300. 

The amendments that TTB proposes 

in this document, along with certain 

corresponding policy changes, are 

designed to reduce the overall burden 

associated with the information 

collections noted above. In general, the 

proposed amendments involve: 

(1) Eliminating the collection of 

certain information from Brewer’s 

Notices; 

(2) Replacing required narrative 

descriptions of a brewer’s premises with 

more specific information; 

(3) Extending deadlines for reporting 

certain changes in the brewer’s 

business; 

(4) Streamlining procedures for 

brewers using new trade names; 

(5) Allowing the maintenance of 

required records at locations other than 

the brewery premises; 

(6) Clarifying which individuals are 

required to submit certain background 

information in connection with a 

Brewer’s Notice; 

(7) Reducing the frequency of 

physical inventories for certain brewers 

and providing additional flexibility in 

the timing of inventories; 

(8) Streamlining procedures for 

discontinuing business as a brewer; 

(9) Allowing entities operating 

multiple breweries to secure one bond 

covering all operations; and 

(10) Eliminating the requirement that 

brewers notify TTB before voluntarily 

destroying taxpaid beer off brewery 

premises. 

To reduce the amount of information 

collected in applications for Brewer’s 

Notices, TTB proposes to amend 27 CFR 

25.25 to remove requirements that a 

brewer designate and maintain a 

separate ‘‘tavern’’ area within the 

brewery where brewers may sell and 

serve beer to customers. Instead, TTB 


khammond on DSKJM1Z7X2PROD with PROPOSALS
34828 Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 

proposes to replace these requirements 

with general provisions related to 

accounting for beer sold and served to 

customers on the brewery premises. The 

amendments eliminate certain 

requirements associated with the 

current tavern regulations, in particular 

the requirements to delineate the public 

and non-public areas of the brewery, 

and to employ security measures to 

separate those areas. Under the 

proposed 27 CFR 25.62, brewers are 

merely required to disclose whether 

they intend to engage in retail service 

operations, and if so what kind. TTB 

proposes to amend 27 CFR 25.292 to 

incorporate recordkeeping requirements 

related to the retail service operations 

authorized under the proposed § 25.25. 

Section 25.25 is currently included in 

the collections of information assigned 

OMB control numbers 1513–0005 and 

1513–0086; § 25.62 is currently 

included in the collection of 

information assigned OMB control 

number 1513–0005; and § 25.292 is 

currently included in the collection of 

information assigned OMB control 

number 1513–0058. Under the proposed 

amendments, § 25.25 no longer imposes 

a collection of information. 

Accordingly, TTB has submitted to 

OMB revisions of information collection 

numbers 1513–0005 and 1513–0086 to 

account for the reduced burden of the 

proposed amendments. TTB has 

submitted a revision of information 

collection number 1513–0058 to 

account for the related recordkeeping 

requirements under proposed § 25.292. 

Conforming amendments related to 

retail service operations are also made 

in proposed 27 CFR 25.23, 25.24, and 

25.35; section 25.23 is currently 

included in the collection of 

information assigned OMB control 

number 1513–0005, while §§ 25.24 and 

25.35 are currently included the 

collection of information assigned OMB 

control number 1513–0086. However, 

the amendments to those sections 

proposed in this document are 

unrelated to the collections of 

information included in those sections. 

To replace required narrative 

descriptions of brewery premises with 

more specific information, TTB 

proposes amendments to §§ 25.68 and 

25.81. The proposed amendments to 

§ 25.68 eliminate requirements to 

submit detailed narrative descriptions of 

the brewery and certain of its attributes 

and replace these requirements with a 

more specific set of information. Section 

25.81 relates to qualifying to alternate 

the brewery premises. TTB believes 

that, in general, the more direct 

questions in the proposed regulations 

will enable brewers to better understand 

what information they must submit, 

reduce the need for additional 

submissions and communication 

between TTB and brewers, and 

accelerate TTB’s review process. TTB 

proposes amendments to § 25.81 to 

allow descriptions or diagrams of areas 

to be alternated and how the alternated 

areas will be separated from other parts 

of the premises to be consolidated with 

the general premises description or 

diagram provided under § 25.68. 

Sections 25.68 and 25.81 are currently 

included in the collection of 

information assigned OMB control 

number 1513–0005. TTB has submitted 

to OMB a revision of that information 

collection to account for the reduced 

burden of the proposed amendments. 

The TTB regulations generally require 

that, when there is a change in the 

information shown in the Brewer’s 

Notice, the brewer must notify TTB of 

the change. To extend deadlines for 

reporting certain changes in the brewery 

business, TTB proposes amendments to 

27 CFR 25.71, 25.74, and 25.75. In each 

case, TTB proposes to extend the 

deadline for reporting the specified 

change in the business to 60 days from 

30 days. Sections 25.71, 25.74, and 

25.75 are currently included in the 

collection of information assigned OMB 

control number 1513–0005. TTB has 

submitted to OMB a revision of that 

information collection to account for the 

reduced burden of the proposed 

amendments. 

The TTB regulations generally require 

that brewers report changes to, or 

additions of, the trade names under 

which a brewery may operate to TTB by 

submitting an amended Brewer’s Notice. 

See 27 CFR 25.62 and 26.71. TTB 

proposes a new 27 CFR 25.76 to clarify 

that a brewer need only notify TTB of 

the addition of a trade name prior to 

using such name for marking or labeling 

purposes as required by subpart J of part 

25 (27 CFR 25.141–25.145) and may 

notify TTB through a written notice. 

TTB’s Permits Online system already 

includes a function for reporting 

additional trade names, which will 

satisfy the proposed § 25.76’s 

requirement for a written notice. The 

proposed § 25.76 does not require 

conforming amendments to §§ 25.62 and 

25.71. Sections 25.62 and 25.71 are 

currently included in the collection of 

information assigned OMB control 

number 1513–0005. TTB has submitted 

to OMB a revision of information 

collection 1513–0005 to account for the 

reduced burden of the proposed § 25.76. 

The current applicable recordkeeping 

requirements do not explicitly allow 

brewers to maintain records at a 

location other than the brewery 

premises. As a result, brewers generally 

must submit a request for specific 

authorization to retain records at a 

central recordkeeping location rather 

than the brewery premises. To allow the 

maintenance of required records at 

locations other than the brewery 

premises, TTB proposes amendments to 

27 CFR 25.300. These amendments also 

clarify that a brewer generally may 

satisfy a request for documents by 

providing copies of such documents, 

including electronic copies. Section 

25.300 is currently included in the 

collection of information assigned OMB 

control number 1513–0058. TTB has 

submitted to OMB a revision of that 

information collection to account for the 

reduced burden of the proposed 

amendments. 

With respect to the collection of 

background information, TTB proposes 

amendments to 27 CFR 25.66 to specify 

the individuals who are required to 

submit statements of ownership interest 

in the business. Section 25.66 generally 

requires that brewers submit a statement 

disclosing the identities of persons 

holding certain levels of ownership in a 

business submitting a Brewer’s Notice. 

The proposed amendments clarify that: 

(1) Such statements of interest are 

required only from persons with an 

ownership interest in the business of 10 

percent or greater; and (2) where a 

‘‘person’’ holding such an interest is a 

legal entity other than an individual, a 

brewer must submit basic identifying 

information about a representative 

individual for that entity. Section 25.66 

is currently included in the collection of 

information assigned OMB control 

number 1513–0005. TTB has submitted 

to OMB a revision of that information 

collection to account for the reduced 

burden of the proposed amendments. 

To reduce burdens associated with 

physical inventories, TTB proposes to 

amend § 25.294 to allow brewers 

authorized by sections 5061(d) of the 

IRC and § 25.164 of the TTB regulations 

to file tax returns on an annual or 

quarterly basis to complete physical 

inventories on an annual or quarterly 

basis, respectively. TTB further 

proposes to amend § 25.294 to allow 

physical inventories to be taken within 

the final 15 days of the applicable 

inventory period (i.e., month, year, or 

quarter). Section 25.294 is currently 

included in the collection of 

information assigned OMB control 

number 1513–0058. TTB has submitted 

to OMB a revision of that information 

collection to account for the reduced 

burden of the proposed amendments. 

Concerning discontinuing business as 

a brewer, TTB proposes to amend 

§ 25.85 to allow any written notice to 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 34829 

the appropriate TTB officer to serve as 

adequate notice of discontinuance of 

business. The notice must indicate the 

date on which business discontinued or 

will discontinue. The proposed 

amendments also dispose of the blanket 

requirement for a final report, and 

provide that brewers must submit such 

report only upon request of the 

appropriate TTB officer. Section 25.85 is 

currently included in the collection of 

information assigned OMB control 

number 1513–0005. TTB has submitted 

to OMB a revision of that information 

collection to account for the reduced 

burden of the proposed amendments. 

To provide greater flexibility in 

obtaining bond coverage to entities 

operating multiple breweries, TTB 

proposes amendments to §§ 25.91 and 

25.93 to allow such entities to secure 

one bond covering all operations. TTB’s 

proposed amendments also set forth the 

penal sum requirements associated with 

these blanket bonds. Sections 25.91 and 

25.93 are currently included in the 

collection of information assigned OMB 

control number 1513–0015. TTB has 

submitted to OMB a revision of that 

information collection to account for the 

reduced burden of the proposed 

amendments. 

Finally, TTB is proposing to eliminate 

the requirement that brewers notify TTB 

before voluntarily destroying taxpaid 

beer off brewery premises. To provide 

brewers additional flexibility in the 

timing of beer destructions, and to avoid 

requiring brewers to store taxpaid beer 

longer than is necessary to arrange its 

destruction, TTB is proposing to 

eliminate entirely §§ 25.222 and 25.223 

requiring the notice, and to amend 

§ 25.283 to instead require that brewers 

submit proof of destruction with a claim 

for refund or credit of tax on taxpaid 

beer destroyed off brewery premises. 

Section 25.222 is currently included in 

the collection of information assigned 

OMB control number 1513–0005; and 

§§ 25.283 is currently included in the 

collection of information assigned OMB 

control number 1513–0030. TTB has 

submitted to OMB revisions of those 

information collections to account for 

the reduced burden of the proposed 

amendments. 

As noted above, TTB has submitted 

the revised information collection 

requirements to the OMB for review. 

Comments on these revised 

recordkeeping and reporting 

requirements should be sent to OMB at 

Office of Management and Budget, 

Attention: Desk Officer for the 

Department of the Treasury, Office of 

Information and Regulatory Affairs, 

Washington, DC 20503 or by email to 

OIRA_submissions@omb.eop.gov. A 

copy should also be sent to TTB by any 

of the methods previously described. 

Comments on the information 

collections should be submitted no later 

than August 8, 2022. Comments are 

specifically requested concerning: 

(1) Whether the collections of 

information submitted to OMB are 

necessary for the proper performance of 

the functions of the Alcohol and 

Tobacco Tax and Trade Bureau, 

including whether the information will 

have practical utility; 

(2) The accuracy of the estimated 

burdens associated with the collections 

of information submitted to OMB; 

(3) How to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(4) How to minimize the burden of 

complying with the proposed revisions 

of the collections of information, 

including the application of automated 

collection techniques or other forms of 

information technology; and 

(5) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

List of Subjects in 27 CFR Part 25 

Alcohol and alcoholic beverages, 

Application procedures, Beer, Notice 

requirements, Reporting and 

recordkeeping requirements, Security 

requirements, Trade names. 

Proposed Amendments to the 

Regulations 

For the reasons discussed above in the 

preamble, TTB proposes to amend 27 

CFR part 25 as follows: 

PART 25—BEER 

■ 1. The authority citation for part 25 

continues to read as follows: 

Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 

5051–5054, 5056, 5061, 5121, 5122–5124, 

5222, 5401–5403, 5411–5417, 5551, 5552, 

5555, 5556, 5671, 5673, 5684, 6011, 6061, 

6065, 6091, 6109, 6151, 6301, 6302, 6311, 

6313, 6402, 6651, 6656, 6676, 6806, 7342, 

7606, 7805; 31 U.S.C. 9301, 9303–9308. 

■ 2. Section 25.5 is revised to read as 

follows: 

§ 25.5 OMB control numbers assigned 

under the Paperwork Reduction Act. 

(a) Purpose. This section displays the 

control numbers assigned to information 

collection requirements in this part by 

the Office of Management and Budget 

(OMB) under the Paperwork Reduction 

Act of 1995, Public Law 104–13. 

(b) Display. The following display 

identifies each section in this part that 

contains an information collection 

requirement and the OMB control 

number assigned to that information 

collection requirement. 

TABLE 1 TO PARAGRAPH (b) 

Section where contained Current OMB 

control No. 

Section 

where 

contained 

Current OMB 

control No. 

25.23 ............................................................................................................................................ 1513–0005 25.163 1513–0083 

25.24 ............................................................................................................................................ 1513–0086 1513–0088 

25.35 ............................................................................................................................................ 1513–0086 25.164 1513–0088 

25.42 ............................................................................................................................................ 1513–0058 25.165 1513–0088 

25.52 ............................................................................................................................................ 1513–0005 25.166 1513–0088 

25.53 ............................................................................................................................................ 1513–0118 25.167 1513–0005 

1513–0122 25.168 1513–0083 

25.55 ............................................................................................................................................ 1513–0118 25.175 1513–0083 

1513–0122 25.184 1513–0005 

25.56 ............................................................................................................................................ 1513–0118 25.186 1513–0058 

1513–0122 25.192 1513–0058 

25.57 ............................................................................................................................................ 1513–0118 1513–0086 

1513–0122 25.195 1513–0058 

25.58 ............................................................................................................................................ 1513–0118 25.196 1513–0058 

1513–0122 1513–0086 

25.61 ............................................................................................................................................ 1513–0005 25.211 1513–0058 

25.62 ............................................................................................................................................ 1513–0005 25.213 1513–0005 


khammond on DSKJM1Z7X2PROD with PROPOSALS
34830 Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 

TABLE 1 TO PARAGRAPH (b)—Continued 

Section where contained Current OMB 

control No. 

Section 

where 

contained 

Current OMB 

control No. 

25.64 ............................................................................................................................................ 1513–0005 1513–0086 

25.65 ............................................................................................................................................ 1513–0014 25.221 1513–0005 

25.66 ............................................................................................................................................ 1513–0005 25.224 1513–0083 

25.68 ............................................................................................................................................ 1513–0005 25.231 1513–0086 

25.71 ............................................................................................................................................ 1513–0005 25.241 1513–0085 

25.72 ............................................................................................................................................ 1513–0005 25.242 1513–0085 

1513–0013 1513–0086 

1513–0088 25.243 1513–0085 

25.73 ............................................................................................................................................ 1513–0005 25.251 1513–0086 

1513–0013 25.252 1513–0058 

1513–0015 25.263 1513–0058 

1513–0088 1513–0086 

25.74 ............................................................................................................................................ 1513–0005 25.264 1513–0058 

1513–0088 25.271 1513–0013 

25.75 ............................................................................................................................................ 1513–0005 25.272 1513–0005 

1513–0088 25.273 1513–0005 

25.76 ............................................................................................................................................ 1513–0005 25.274 1513–0015 

25.77 ............................................................................................................................................ 1513–0005 25.276 1513–0058 

1513–0013 1513–0088 

1513–0015 25.277 1513–0005 

1513–0088 25.281 1513–0030 

25.78 ............................................................................................................................................ 1513–0005 1513–0088 

1513–0088 25.282 1513–0005 

25.79 ............................................................................................................................................ 1513–0005 1513–0030 

1513–0088 

25.81 ............................................................................................................................................ 1513–0005 25.283 1513–0030 

1513–0009 1513–0088 

1513–0013 25.284 1513–0088 

25.85 ............................................................................................................................................ 1513–0005 25.285 1513–0030 

25.91 ............................................................................................................................................ 1513–0015 1513–0083 

25.92 ............................................................................................................................................ 1513–0013 1513–0088 

25.93 ............................................................................................................................................ 1513–0015 25.286 1513–0030 

25.94 ............................................................................................................................................ 1513–0015 1513–0088 

25.95 ............................................................................................................................................ 1513–0013 25.291 1513–0058 

1513–0015 1513–0088 

25.97 ............................................................................................................................................ 1513–0015 25.292 1513–0058 

25.98 ............................................................................................................................................ 1513–0015 25.293 1513–0058 

25.103 .......................................................................................................................................... 1513–0013 25.294 1513–0058 

25.141 .......................................................................................................................................... 1513–0005 25.295 1513–0058 

1513–0086 25.296 1513–0007 

25.142 .......................................................................................................................................... 1513–0005 25.296 1513–0058 

1513–0086 25.297 1513–0007 

25.143 .......................................................................................................................................... 1513–0086 25.298 1513–0083 

25.144 .......................................................................................................................................... 1513–0005 1513–0088 

25.145 .......................................................................................................................................... 1513–0086 25.300 1513–0058 

25.151 .......................................................................................................................................... 1513–0088 1513–0088 

25.158 .......................................................................................................................................... 1513–0005 25.301 1513–0058 

25.160 .......................................................................................................................................... 1513–0083 

■ 3. Section 25.11 is amended by: 

■ a. Removing the phrase ‘‘Form 

5130.10’’ each place it appears and 

adding, in its place, ‘‘form TTB F 

5130.10’’; and 

■ b. Adding, in alphabetical order, 

definitions of ‘‘Retail service operation’’ 

and ‘‘Written notice’’. 

The additions read as follows: 

§ 25.11 Meaning of terms. 

* * * * * 

Retail service operation. Retail sale by 

a brewer on brewery premises of beer 

produced by the brewer, other alcohol 

beverages, food, or other brewery related 

merchandise. 

* * * * * 

Written notice. A statement on a 

company’s letterhead or similar medium 

that clearly identifies the company and 

shows that the statement is from a 

company representative with power of 

attorney described at § 25.65, submitted 

in paper or electronically. 

■ 4. Section 25.23 is amended by: 

■ a. Revising paragraph (b)(6) and the 

first sentence of paragraph (c); and 

■ b. Removing the parenthetical 

authority citation at the end of the 

section. 

The revisions read as follows: 

§ 25.23 Restrictions on use. 

* * * * * 

(b) * * * 

(6) Involve retail service operations in 

accordance with § 25.25. 

(c) Application. Except as provided in 

§ 25.25 for retail service operations on 

brewery premises, a brewer desiring to 

use a brewery for other purposes must 

submit to the appropriate TTB officer an 

application listing the purposes. * * * 

§ 25.24 [Amended] 

■ 5. Section 25.24 is amended by: 

■ a. Removing, in paragraph (a)(1), the 

words ‘‘nontaxpaid beer’’ and adding, in 


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their place, ‘‘beer that has not been tax 

determined’’; 

■ b. Removing, in paragraph (a)(2), the 

word ‘‘shall’’ and adding, in its place, 

the word ‘‘must’’; and 

■ c. Removing the parenthetical 

authority citation at the end of the 

section. 

■ 6. Section 25.25 is revised to read as 

follows: 

§ 25.25 Retail service operations at 

brewery. 

(a) General. A brewer desiring to sell 

untaxpaid beer, taxpaid beer of another 

brewer’s production, taxpaid wine, or 

taxpaid distilled spirits for consumption 

at the brewery is authorized to engage 

in such operations subject to the 

procedures and conditions set forth in 

this section. 

(b) Sale of beer from tanks. A brewer 

may dispense untaxpaid beer from tanks 

for sale and consumption at the 

brewery, subject to the conditions 

relating to tax determination set forth in 

this paragraph (b). The brewer must 

have a suitable method for measurement 

of the beer dispensed from any tank as 

required by subpart E of this part, such 

as a meter or gauge glass. The brewer 

must determine the tax on the beer 

dispensed by measuring the amount 

dispensed for sale each day and 

preparing the brewer’s record of tax 

determination, required by 

§ 25.292(a)(8). 

(c) Sale of packaged beer. A brewer 

may dispense untaxpaid beer from 

barrels and kegs, or make available 

untaxpaid beer in bottles, for sale and 

consumption at the brewery, subject to 

the following conditions relating to tax 

determination: 

(1) Barrels and kegs. Barrels and kegs 

must be tax determined at the time they 

are tapped for the sale of beer for 

consumption on the brewery premises; 

barrels and kegs must be reflected on 

the brewer’s record of tax 

determination, required by 

§ 25.292(a)(8), for the day on which they 

are tapped. Barrels and kegs that have 

been tapped and tax determined for sale 

and consumption on the brewery 

premises must be physically marked or 

segregated in such a manner as to 

preclude mixing with beer that has not 

been tax determined. 

(2) Bottles. Bottles must be tax 

determined at the time they are sold for 

consumption on the brewery premises 

and reflected on the brewer’s record of 

tax determination, required by 

§ 25.292(a)(8), for the day on which 

sold. 

(3) Storage of taxpaid or tax 

determined beer. The prohibition of 

§ 25.24 does not apply to tax determined 

or taxpaid beer handled in accordance 

with this subsection. Such beer may 

continue to be sold for consumption on 

the brewery premises after it has been 

tax determined or taxpaid. 

(d) Sale of taxpaid alcohol. A brewer 

may sell taxpaid wine and distilled 

spirits, as well as taxpaid beer of 

another brewer’s production, for 

consumption at the brewery. Any 

taxpaid beer of another brewer’s 

production must be stored as required 

by § 25.24(a). Any records of sales of 

taxpaid wine, distilled spirits, and/or 

beer of another brewer’s production 

must be distinguishable from records of 

sales of beer described in paragraphs (b) 

and (c) of this section. 

(e) Other sales. A brewer may sell 

food as well as brewery-related 

merchandise at the brewery. Any 

business records of other sales that the 

brewer may keep must be 

distinguishable from records of sales of 

beer described in paragraphs (b) and (c) 

of this section. 

§ 25.35 [Amended] 

■ 7. Section 25.35 is amended in the 

introductory text by: 

■ a. Removing the word ‘‘stationary’’; 

and 

■ b. Removing the word ‘‘shall’’ and 

adding, in its place, the word ‘‘must’’. 

■ 8. Section 25.41 is revised to read as 

follows: 

§ 25.41 Measuring system required. 

The brewer must accurately and 

reliably measure the quantity of beer 

transferred from the brewery cellars for 

bottling and for racking, as well as the 

quantity of untaxpaid beer sold for 

consumption on brewery premises in 

accordance with § 25.25. The brewer 

may use a measuring device, such as a 

meter or gauge glass, or any other 

suitable method. 

■ 9. Section 25.62 is amended by: 

■ a. In paragraph (a) introductory text: 

■ i. Removing the word ‘‘shall’’ each 

place it appears and adding, in its place, 

‘‘must’’; and 

■ ii. Removing the phrase ‘‘Form 

5130.10’’ and adding, in its place, ‘‘form 

TTB F 5130.10’’. 

■ b. Removing the parenthetical 

authority citation at the end of the 

section. 

■ 10. Section 25.66 is amended by: 

■ a. Revising paragraph (c); 

■ b. Removing the word ‘‘shall’’ in 

paragraph (d) and adding, in its place, 

‘‘must’’; and 

■ c. Removing the parenthetical 

authority citation at the end of the 

section. 

The revision reads as follows: 

§ 25.66 Organizational documents. 

* * * * * 

(c) Statements of interest—(1) Sole 

proprietorships and general 

partnerships. In the case of an 

individual owner or a general 

partnership, the name and address of 

each person having an interest in the 

business and a statement indicating 

whether the interest appears in the 

name of the interested person or in the 

name of another person. 

(2) Limited liability entities. In the 

case of a corporation, limited liability 

partnership, limited liability company, 

or other legal entity in which some or 

all of the owners have limited personal 

liability for the activities of the entity: 

(i) The names and addresses of 

persons having a 10 percent or more 

ownership or other interest in each of 

the classes of ownership of the entity, 

and the nature and amount of 

ownership or other interest of each 

person. 

(ii) The name of the person in whose 

name the interest appears. If the limited 

liability entity is under actual or legal 

control of another limited liability 

entity, the appropriate TTB officer may 

request the same information regarding 

ownership for the parent limited 

liability entity. 

(3) Legal entities other than 

individuals. If any interested person 

named under paragraphs (c)(1) and (2) 

of this section is a legal entity other than 

an individual, the name, title, and city 

and state of residence of a representative 

individual for the entity. The 

representative individual must be the 

individual designated by the entity to 

represent the entity’s interest in the 

brewery or, in the absence of a 

designated individual, an owner, chief 

officer or manager, or person with 

similar authority within the entity. 

* * * * * 

■ 11. Section 25.68 is revised to read as 

follows: 

§ 25.68 Description of brewery. 

(a) As required by § 25.62(a)(5), the 

Brewer’s Notice must include a 

description of the brewery premises. 

The description may be in narrative 

form or diagram form, and must 

describe or illustrate: 

(1) The overall dimensions of the 

building(s) housing the brewery and, if 

the brewery occupies less than the 

entire building, the boundaries of the 

brewery within the building; and 

(2) Any portions of the brewery that 

are outdoors, including the location of 

any outdoor tanks. 

(b) Photographs further illustrating 

any of the elements required in 

paragraph (a) of this section must be 


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34832 Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 

submitted upon request of the 

appropriate TTB officer. 

§ 25.71 [Amended] 

■ 12. Section 25.71 is amended by: 

■ a. Removing ‘‘shall’’ and ‘‘30 days’’ 

and adding, in their places, ‘‘must’’ and 

‘‘60 days’’, respectively, in paragraph 

(a)(1); 

■ b. Removing the phrase ‘‘Form 

5130.10’’ each place it appears in 

paragraphs (a)(1) and (2) and (b)(2) and 

adding, in its place, ‘‘form TTB F 

5130.10’’; and 

■ c. Removing the parenthetical 

authority citation at the end of the 

section. 

■ 13. Section 25.74 is revised to read as 

follows: 

§ 25.74 Changes in ownership interests. 

Changes in the list of persons with an 

ownership interest furnished under the 

provisions of § 25.66(c)(2) must be 

submitted annually by the brewer on 

July 1 or on any other date approved by 

the appropriate TTB officer. When a 

change in the ownership interests 

results in a change in the control or 

management of the business, 

notification of the change will be made 

within 60 days in accordance with 

§ 25.71. 

■ 14. Section 25.75 is amended by: 

■ a. Revising the first sentence; and 

■ b. Removing the parenthetical 

authority citation at the end of the 

section. 

The revision reads as follows: 

§ 25.75 Change in officers and directors. 

When there is any change in the list 

of officers or directors furnished under 

the provisions of § 25.66(a)(2), the 

brewer must submit, within 60 days of 

the change, an amended notice on form 

TTB F 5130.10. * * * 

■ 15. Section 25.76 is added to read as 

follows: 

§ 25.76 Change in trade name. 

Before using a trade name for marking 

or labeling purposes as required by 

subpart J of this part, the brewer must 

first submit a written notice to the 

appropriate TTB officer listing the new 

name and the office(s) where it is 

registered. 

■ 16. Section 25.81 is amended by: 

■ a. Revising paragraphs (a), (b), (c), 

(d)(6), and (e); and 

■ b. Removing the parenthetical 

authority citation at the end of the 

section. 

The revisions read as follows: 

§ 25.81 Alternation of brewery and wine 

premises or distilled spirits plant. 

(a) General. A brewer may 

temporarily extend or curtail the 

brewery premises to allow for several 

other types of alternate uses. A 

curtailment or extension of brewery 

premises may allow for the use of the 

premises as: 

(1) An adjacent bonded wine cellar; 

(2) An adjacent taxpaid wine bottling 

house; or 

(3) An adjacent distilled spirits plant. 

(b) Qualifying documents. Before 

alternating the brewery for a purpose 

listed in paragraph (a) of this section, 

the proprietor must file and receive 

approval of the necessary registration, 

application forms and attachments that 

relate to the proposed alternate use. 

Depending on the type of alternation 

involved, the proprietor must file one or 

more of the following qualification 

documents: 

(1) Brewer’s Notice. For all alternate 

uses of the brewery described in 

paragraph (a) of this section the 

proprietor must file a form TTB F 

5130.10, Brewer’s Notice, to cover the 

proposed alternation of premises. 

(2) Description. For all alternate uses, 

the proprietor must provide additional 

versions of the description required 

under § 25.62(a)(5) describing in 

narrative form or illustrating by diagram 

the premises as they will exist, both 

during extension and curtailment and 

clearly depicting all buildings, floors, 

rooms, areas, equipment that are to be 

subject to alternation, in their relative 

operating sequence. 

(3) Bond. For all alternate uses, the 

proprietor must provide evidence of an 

existing bond, consent of surety, or a 

new bond to cover the proposed 

alternation of premises. The 

requirement in this paragraph (b)(3) 

does not apply if a bond is not required 

under this chapter to cover the proposed 

alternation. 

(4) Bonded wine cellar or taxpaid 

wine bottling house. If the proprietor 

intends to alternate the brewery 

premises or part of the brewery 

premises as a bonded wine cellar or 

taxpaid wine bottling house, the 

proprietor must also file form TTB F 

5120.25, Application to Establish and 

Operate Wine Premises. 

(5) Distilled spirits plant. If the 

proprietor intends to alternate the 

brewery premises or part of the brewery 

premises as a distilled spirits plant, the 

proprietor must also file form TTB F 

5110.41, Registration of a Distilled 

Spirits Plant, to cover the proposed 

alternation of premises. 

(c) Brewer’s responsibility. After 

approval of qualifying documents, the 

proprietor may alternate the designated 

premises pursuant to a written notice 

submitted to the appropriate TTB 

officer. The notice must contain the 

information required by paragraph (d) of 

this section. Prior to the effective date 

and hour of the alternation, the 

proprietor must segregate products as 

follows: 

(1) Wine operations. Prior to 

alternation from brewery premises to 

wine premises, the proprietor must 

remove all beer from the brewery 

premises that will be alternated. Prior to 

alternation from wine premises to 

brewery premises, the proprietor must 

remove all wine and spirits from the 

wine premises that will be alternated. 

(2) Distilled spirits plant. Prior to 

alternation of brewery premises to 

distilled spirits plant premises, the 

proprietor must remove all beer from 

the premises except beer that is being 

received for production of distilled 

spirits as provided in 27 CFR 19.296. 

Prior to alternation from distilled spirits 

plant premises to operation of a brewery 

the proprietor must remove all spirits, 

denatured spirits, articles and wine 

from the premises to be alternated to 

brewery premises. 

(d) * * * 

(6) Identification of the description or 

diagram depicting the premises as they 

exist when curtailed or extended; and 

* * * * * 

(e) Separation of premises. The 

appropriate TTB officer may require that 

the portion of brewery premises, wine 

premises, or distilled spirits plant 

premises extended or curtailed under 

this section be separated, in a manner 

satisfactory to the appropriate TTB 

officer, from the remaining portion of 

the brewery premises, wine premises, or 

distilled spirits plant premises. 

■ 17. Section 25.85 is revised to read as 

follows: 

§ 25.85 Notice of permanent 

discontinuance. 

When a brewer desires to discontinue 

business permanently, they must 

provide a written notice to the 

appropriate TTB officer indicating the 

date on which business discontinued or 

will discontinue. Upon request of the 

appropriate TTB officer, the brewer 

must file a final report of operations on 

form TTB F 5130.9 or form TTB F 

5130.26 showing no beer or cereal 

beverage on hand and marked ‘‘Final 

Report.’’ 

■ 18. Section 25.91 is amended by: 

■ a. Removing the phrase ‘‘Form 

5130.22’’ each place it appears in 

paragraphs (a) and (b) and adding, in its 

place, ‘‘form TTB F 5130.22’’; 

■ b. Removing the word ‘‘shall’’ each 

place it appears in paragraphs (a) and (c) 

and adding, in its place, ‘‘must’’; 

■ c. Adding paragraph (f); and 


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Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 34833 

■ d. Removing the parenthetical 

authority citation at the end of the 

section. 

The addition reads as follows: 

§ 25.91 Requirement for bond. 

* * * * * 

(f) Blanket bond. A brewer that 

operates more than one brewery may, in 

lieu of filing separate bonds, file a 

blanket bond on form TTB F 5130.22 for 

any or all of the breweries. The total 

amount of any blanket bond given under 

this section must be available for the 

satisfaction of any liability incurred at 

any factory covered by the bond. 

■ 19. Section 25.93 is amended by: 

■ a. Adding paragraph (a)(4); 

■ b. Removing the word ‘‘shall’’ each 

place it appears in paragraph (b) and 

adding, in its place, ‘‘must’’; 

■ c. Revising paragraph (c); and 

■ d. Removing the parenthetical 

authority citation at the end of the 

section. 

The addition and revision read as 

follows: 

§ 25.93 Penal sum of bond. 

(a) * * * 

(4) Blanket bonds. Where a brewer 

operates multiple breweries and obtains 

a blanket bond covering any or all of the 

breweries, the penal sum of the blanket 

bond must be equal to the aggregate 

penal sum applicable to all of the 

breweries covered by such bond, as 

calculated under paragraphs (a)(1) 

through (3) of this section. 

* * * * * 

(c) Maximum and minimum penal 

sums—(1) Single brewery bond. The 

maximum penal sum of the bond (or 

total penal sum if original and 

strengthening bonds are filed) is not to 

exceed $150,000 when the tax on beer 

is to be prepaid, or $500,000 when the 

tax is to be deferred as provided in 

§ 25.164. The minimum penal sum of a 

bond is $1,000. 

(2) Blanket bond. The maximum 

penal sum of the blanket bond (or total 

penal sum if original and strengthening 

bonds are filed) is not to exceed 

$150,000 per brewery covered by the 

blanket bond where the tax on beer is 

to be prepaid, or $500,000 per brewery 

covered by the blanket bond when the 

tax is to be deferred as provided in 

§ 25.164. The minimum penal sum of a 

blanket bond is $1,000 per brewery 

covered by the blanket bond. 

■ 20. Section 25.102 is amended by: 

■ a. Revising paragraph (b); and 

■ b. Removing the parenthetical 

authority citation at the end of the 

section. 

The revision reads as follows: 

§ 25.102 Termination of surety’s liability. 

* * * * * 

(b) The date of discontinuance of 

business of the brewer indicated on the 

notice required under § 25.85; 

* * * * * 

■ 21. Section 25.159 is amended by 

■ a. Revising paragraph (a); 

■ b. Removing the word ‘‘shall’’ in 

paragraph (c)(2) and adding, in its place, 

‘‘must’’; and 

■ c. Removing the parenthetical 

authority citation at the end of the 

section. 

The revision reads as follows: 

§ 25.159 Time of tax determination and 

payment; offsets. 

(a) Time and payment. The tax on 

beer will be determined at the time of 

its removal for consumption or sale, and 

will be paid by return as provided in 

this part. In the case of retail service 

operations, see § 25.25 for tax 

determination requirements. 

* * * * * 

■ 22. Section 25.221 is amended by: 

■ a. Revising paragraph (a)(2); and 

■ b. Removing the parenthetical 

authority citation at the end of the 

section. 

The revision reads as follows: 

§ 25.221 Voluntary destruction of beer. 

(a) * * * 

(2) A brewer conducting retail service 

operations under § 25.25(b) or (c) may 

destroy taxpaid or tax-determined beer 

stored on brewery premises, in 

accordance with the requirements of 

§ 25.225. 

* * * * * 

■ 23. Section 25.222 is amended by: 

■ a. Revising paragraph (b); and 

■ b. Removing the parenthetical 

authority citation at the end of the 

section. 

The revision reads as follows: 

§ 25.222 Notice of brewer. 

* * * * * 

(b) Execution of notice. The brewer 

shall serially number each notice and 

execute each notice under penalties of 

perjury as defined in § 25.11. The 

brewer shall specify the date on which 

the beer is to be destroyed. 

* * * * * 

■ 24. Section 25.225 is amended by: 

■ a. Revising paragraphs (a) and (b)(1); 

and 

■ b. Removing the word ‘‘shall’’ in 

paragraph (b)(2) and adding, in its place, 

‘‘must’’. 

The revisions read as follows: 

§ 25.225 Destruction of taxpaid beer which 

was never removed from brewery premises. 

(a) General. A brewer conducting 

retail service operations under 

§ 25.25(b) or (c) may destroy taxpaid or 

tax-determined beer which was never 

removed from brewery premises, in 

accordance with the recordkeeping 

requirements of paragraph (b) of this 

section, and with the benefit of the tax 

refund provisions of paragraph (c) of 

this section. 

(b) * * * 

(1) When taxpaid or tax-determined 

beer which was never removed from 

brewery premises is destroyed, the 

brewer must prepare a record of the 

quantity of beer destroyed, and the 

reason for, date of, and method of, 

destruction. The brewer may prepare 

this record on form TTB F 5620.8 for 

submission as a claim under § 25.283. 

* * * * * 

■ 25. Section 25.283 is amended by: 

■ a. Removing the word ‘‘shall’’ each 

place it appears in paragraphs (a) 

introductory text, (b) introductory text, 

(c) introductory text, and (e) and adding, 

in its place, ‘‘must’’; 

■ b. Revising paragraphs (a)(9) and (10) 

and adding paragraph (a)(11); 

■ c. Removing the phrase ‘‘Form 2635 

(5620.8)’’ and adding, in its place, ‘‘form 

TTB F 5620.8’’ in paragraph (e); and 

■ d. Removing the parenthetical 

authority citation at the end of the 

section. 

The revisions and addition read as 

follows: 

§ 25.283 Claims for refund of tax. 

(a) * * * 

(9) A statement that the tax has been 

fully paid or determined; 

(10) A reference to the notice filed 

under § 25.213 (if required) or § 25.222; 

and 

(11) For beer voluntarily destroyed at 

a location other than a brewery, proof of 

the destruction through commercial 

records relating to the destruction. 

* * * * * 

§ 25.284 [Amended] 

■ 26. Section 25.284 is amended by: 

■ a. Removing the phrase ‘‘Form 

5000.24’’ in paragraph (a) and adding, in 

its place, ‘‘form TTB F 5000.24’’; 

■ b. Removing the word ‘‘shall’’ in 

paragraph (f) introductory text and 

adding, in its place, ‘‘must’’; and 

■ c. Removing the phrase ‘‘and (10)’’ 

and adding, in its place, ‘‘(10), and (11)’’ 

in paragraph (f)(1); and 

■ d. Removing the parenthetical 

authority citation at the end of the 

section. 

■ 27. Section 25.292 is amended by: 

■ a. Removing the word ‘‘shall’’ each 

place it appears in paragraphs (a) 

introductory text and (b) introductory 

text and adding, in its place, ‘‘must’’; 

■ b. Revising paragraphs (a)(8) and (11); 

and 


khammond on DSKJM1Z7X2PROD with PROPOSALS
34834 Federal Register / Vol. 87, No. 110 / Wednesday, June 8, 2022 / Proposed Rules 

■ c. Removing the parenthetical 

authority citation at the end of the 

section. 

The revisions read as follows: 

§ 25.292 Daily records of operations. 

(a) * * * 

(8) Beer removed for consumption or 

sale. 

(i) For each removal of beer from the 

brewery, the record will show the date 

of removal, the person to whom the beer 

was shipped or delivered (not required 

for sales in quantities of one-half barrel 

or less for delivery at the brewery), and 

the quantities of beer removed in kegs 

and in bottles. 

(ii) For removals of beer for sale and 

consumption at the brewery, the record 

will show, for each day of operation, the 

barrel equivalent of: The total bottles of 

beer sold for consumption at the 

brewery; the total amount of beer 

poured from any tank(s) and sold for 

consumption at the brewery; and the 

barrels or kegs tapped for the sale of 

beer for consumption at the brewery. 

Barrel equivalents must be calculated in 

accordance with §§ 25.156 through 

25.158. The daily record will be 

supported by records of individual sales 

transactions. 

* * * * * 

(11) Beer provided gratuitously for 

consumption at the brewery and not as 

part of a retail service operation. 

* * * * * 

■ 28. Section 25.294 is amended by: 

■ a. Revising paragraph (a); 

■ b. Redesignating paragraphs (b) and 

(c) as paragraphs (c) and (d), 

respectively; 

■ c. Adding a new paragraph (b); 

■ d. Adding headings to newly 

redesignated paragraphs (c) and (d); 

■ e. Removing the word ‘‘shall’’ each 

place it appears in newly redesignated 

paragraphs (c) introductory text and (d) 

and adding, in its place, ‘‘must’’; and 

■ f. Removing the parenthetical 

authority citation at the end of the 

section. 

The additions and revision read as 

follows: 

§ 25.294 Inventories. 

(a) General. The brewer must take a 

physical inventory of beer and cereal 

beverage at least once each calendar 

month. The brewer must take this 

inventory within 15 days of the close of 

the calendar month for which made. 

(b) Exception for annual and quarterly 

filers. A brewer authorized to use an 

annual return period under 

§ 25.164(c)(2) need only take a physical 

inventory of beer and cereal beverage in 

the month that their annual tax return 

is due. A brewer authorized to use a 

quarterly return period under 

§ 25.164(c)(3) need only take physical 

inventories of beer and cereal beverage 

in the months in which their quarterly 

tax returns are due. The brewer must 

take the inventories required by this 

paragraph (b) within 15 days of the 

close of the calendar month in which 

made. 

(c) Inventory record. * * * 

(d) Record retention. * * * 

■ 29. Section 25.300 is amended by: 

■ a. Revising paragraph (a); and 

■ b. Removing the word ‘‘shall’’ in 

paragraph (b) and adding, in its place, 

‘‘must’’; and 

■ c. Removing the parenthetical 

authority citation at the end of the 

section. 

The revision reads as follows: 

§ 25.300 Retention and preservation of 

records. 

(a) Place of maintenance. Records 

required by this part generally will be 

prepared and kept by the brewer at the 

brewery premises where the operation 

or transaction occurs and will be 

available for inspection by any 

appropriate TTB officer during business 

hours. If a brewer desires to keep the 

required records at any location other 

than the brewery premises, they must 

first provide written notice to the 

appropriate TTB officer of the location 

where the records are to be kept. Any 

brewer keeping records at a location 

other than the brewery premises must 

make them available at the brewery 

premises upon request of the 

appropriate TTB officer; however, the 

appropriate TTB officer may allow the 

brewer to supply copies (including 

electronic copies) of such records 

instead of the originals. 

* * * * * 

Signed: May 27, 2022. 

Mary Ryan, 

Administrator. 

Approved: May 27, 2022. 

Timothy E. Skud, 

Deputy Assistant Secretary, (Tax, Trade and 

Tariff Policy). 

[FR Doc. 2022–11902 Filed 6–7–22; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2022–0199] 

RIN 1625–AA11 

Regulated Navigation Area; 

Environmental Protection Agency 

Superfund Site, Point Ruston, 

Commencement Bay, Tacoma, WA 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard is proposing 

to establish a permanent regulated 

navigation area (RNA) for all navigable 

waters within the area of lines drawn 

from Dune Park downward to the Point 

Ruston Historic Ferry dock on 

Commencement Bay, WA. This RNA is 

necessary to preserve the integrity of 

protective sediment caps placed in 

multiple areas within this waterway as 

part of the remediation process at the 

Commencement Bay, Nearshore/ 

Tideflats Environmental Protection 

Agency (EPA) Superfund Cleanup site. 

This RNA would prohibit activities 

which would disturb the seabed, such 

as anchoring, dragging, trawling, 

spudding, or other activities that 

involve disrupting the integrity of the 

sediment cap, unless authorized by the 

Captain of the Port (COTP) Puget Sound 

or their Designated Representative. The 

RNA would not affect the transit or 

navigation within this waterway. We 

invite your comments on this proposed 

rulemaking. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before August 8, 2022. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2022–0199 using the Federal Decision 

Making Portal at https://

www.regulations.gov. See the ‘‘Public 

Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section for 

further instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions about this proposed 

rulemaking, call or email Mr. Rob 

Nakama, Sector Puget Sound Waterways 

Management Division, U.S. Coast 

Guard; telephone 206–217–6089, email 

SectorPugetSoundWWM@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 


khammond on DSKJM1Z7X2PROD with PROPOSALS