26096 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Rules and Regulations

issue codified regulations to implement

the provisions of the Circular. This

announcement notifies the public that

the provisions of OMB Circular A–87 as

published in the Federal Register on

May 17, 1995 (60 FR 26484) are

applicable to 15 CFR Part 24.22.

Executive Orders 12866 and 12875

This announcement has been

determined to be ‘‘not significant’’ for

purposes of Executive Order 12866,

‘‘Regulatory Planning and Review.’’ In

addition, it has been determined that,

consistent with the requirements of

Executive Order 12875, ‘‘Enhancing

Intergovernmental Partnership,’’ this

announcement will not impose any

unfunded mandates upon State, local,

and tribal governments.

Administrative Procedures Act and

Regulatory Flexibility Act

Because notice and comment, and

delayed effective date are not required

under 5 U.S.C. 553, or any other law, for

this announcement relating to public

property, loans, grants, benefits, or

contracts (5 USC 553(a)), a Regulatory

Flexibility Analysis is not required and

has not been prepared for this

announcement. As stated above, this

announcement is based on the revised

OMB Circular A–87 that was developed

by an interagency task force and

received extensive public comment.

OMB has stipulated that Federal

agencies responsible for administering

programs that involve cost

reimbursement contracts, grants, and

other agreements with governmental

units shall issue codified regulations to

implement the provisions of OMB

Circular A–87 and its attachments.

Executive Order 12612 (Federalism

Assessment)

This action has been reviewed in

accordance with the principles and

criteria contained in Executive Order

12612. It has been determined that this

proposal does not have sufficient

Federalism implications to warrant a

full Federalism Assessment under the

principles and criteria contained in

Executive Order 12612.

Paperwork Reduction Act

This announcement does not contain

any information collection requirements

under the Paperwork Reduction Act.

Catalog of Federal Domestic Assistance

This announcement affects all of the

grant and cooperative agreement

programs administered by DOC under

which State, local, and Indian tribal

governments may participate.

List of Subjects in 15 CFR Part 24

Accounting, Grant programs, Grant

administration, Insurance Reporting and

recordkeeping requirements.

Sonya G. Stewart,

Director for Executive Budgeting and

Assistance Management.

[FR Doc. 96–13107 Filed 5–23–96; 8:45 am]

BILLING CODE 3510–FA–M

CONSUMER PRODUCT SAFETY

COMMISSION

16 CFR Parts 1500 and 1507

Large Multiple-tube Fireworks Devices;

Affirmation of Final Rule

AGENCY: Consumer Product Safety

Commission.

ACTION: Affirmation of final rule.

SUMMARY: The Commission announces

that it has received no objections to its

final rule amending its fireworks

regulations under the Federal

Hazardous Substances Act that was

published on March 26, 1996 (61 FR

13084). Accordingly, the rule will go

into effect on March 26, 1997, as

originally provided. This final rule will

require that large multiple-tube

fireworks devices that have any tube

with an inner diameter of 1.5 inches (3.8

cm) or greater pass a performance test

for stability.

EFFECTIVE DATE: The rule published

March 26, 1996 (61 FR 13084) is

effective March 26, 1997.

FOR FURTHER INFORMATION CONTACT:

Samuel B. Hall, Office of Compliance,

Consumer Product Safety Commission,

Washington, DC 20207–0001; telephone

(301) 504–0400, ext. 1371.

SUPPLEMENTARY INFORMATION: On March

26, 1996, the Commission issued a final

rule amending its fireworks regulations

under the Federal Hazardous

Substances Act. 61 FR 13084, corrected

61 FR 18245 (April 25, 1996). This final

rule will require that large multiple-tube

fireworks devices that have any tube

with an inner diameter of 1.5 inches (3.8

cm) or greater pass a performance test

for stability. Under the test, these

devices may not tip over when inclined

at an angle of 60 degrees from the

horizontal. This requirement is intended

to reduce the risk of injury posed when

these fireworks devices tip over during

firing. If they tip over, subsequent tubes

may discharge in the direction of

spectators or others in the vicinity.

A proceeding to classify a substance

as a banned hazardous substance under

section 2(q)(1) of the FHSA is governed

by sections 3(f)–(i) of the FHSA, and by

sections 701(e)–(g) of the Federal Food,

Drug, and Cosmetic Act (‘‘FDCA’’), 21

U.S.C. 371(e)–(g). See 15 U.S.C.

1261(q)(2). These procedures provide

that once the Commission issues a final

rule, persons who would be adversely

affected by the rule have 30 days in

which to file objections with the

Commission stating the grounds

therefor, and to request a public hearing

on those objections. 21 U.S.C. 371(e).

This period for objections expired on

April 25, 1996.

The Commission is required to

publish a notice in the Federal Register

specifying any parts of the regulation

that have been stayed by the filing of

proper objections or, if no objections

have been filed, stating that fact. By this

notice, the Commission states that no

objections to the final rule were filed in

this proceeding. Accordingly, the rule

will go into effect on March 26, 1997,

as originally provided. The rule will

apply to the subject multiple-tube

fireworks devices that first enter

interstate commerce or are imported on

or after the effective date.

Dated: May 20, 1996.

Sadye E. Dunn,

Secretary, Consumer Product Safety

Commission.

[FR Doc. 96–13046 Filed 5–23–96; 8:45 am]

BILLING CODE 6355–01–P

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Parts 1, 2, and 3

[T.D. ATF–373]

RIN 1512–AB43

Basic Permit Requirements Under the

Federal Alcohol Administration Act,

Nonindustrial Use of Spirits and Wine,

Bulk Sales and Bottling of Distilled

Spirits (95R–023P)

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Department of the

Treasury.

ACTION: Final Rule, Treasury decision.

SUMMARY: As part of a regulatory reform

initiative, the Bureau of Alcohol,

Tobacco and Firearms (ATF) is revising

and recodifying the regulations covering

the basic permit requirements, the

nonindustrial use of spirits and wine,

and the bulk sales and bottling of

distilled spirits under the Federal

Alcohol Administration Act. Changes

include consolidating 27 CFR parts 1, 2,

and 3 into a single part 1 for ease of use

and minor technical corrections.
Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Rules and Regulations 26097

EFFECTIVE DATE: May 24, 1996.

FOR FURTHER INFORMATION CONTACT:

David Brokaw, Wine, Beer and Spirits

Regulations Branch, Bureau of Alcohol,

Tobacco and Firearms, 650

Massachusetts Avenue, NW.,

Washington, DC 20226 (202) 927–8230.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 27 CFR parts 1, 2,

and 3 implement various provisions of

the Federal Alcohol Administration Act

(FAA Act), 27 U.S.C. 201 et seq. The

regulations in part 1 govern the

issuance, amendment, denial,

revocation, suspension, automatic

termination, and annulment of basic

permits. These regulations implement

sections 103 and 104 of the FAA Act, 27

U.S.C. 203 and 204, which requires

basic permits of persons engaged in

business as importers, producers, or

wholesalers of distilled spirits, wine, or

malt beverages. The FAA Act defines

the terms ‘‘distilled spirits’’ and ‘‘wine’’

to include only products for

‘‘nonindustrial’’ use. The regulations in

part 2 specify the uses of distilled spirits

and wine that are deemed

‘‘nonindustrial,’’ as that term is used in

section 117 of the FAA Act, 27 U.S.C.

211(a) (5) and (a) (6). Finally, section

106 of the FAA Act, 27 U.S.C. 206,

provides that bulk distilled spirits may

only be sold to certain classes of

persons, including distillers,

winemakers for the fortification of wine,

operators of class 8 Customs bonded

warehouses, and agencies of the United

States or any State. The regulations in

part 3 implement these provisions.

On February 21, 1995, President

Clinton announced a regulatory reform

initiative. As part of this initiative, each

Federal agency was instructed to

conduct a page by page review of all

agency regulations to identify those

which are obsolete or burdensome and

those whose goals could be better

achieved through the private sector,

self-regulation or State and local

governments. In cases where the

agency’s review disclosed regulations

which should be revised or eliminated,

the agency would, as soon as possible,

propose administrative changes to the

regulations. In addition, on April 13,

1995, the Bureau published Notice No.

809 (60 FR 18783), which requested

comments from the public regarding

which ATF regulations could be

improved or eliminated.

ATF did not receive any specific

comments from the public regarding 27

CFR parts 1, 2, and 3. However, in

keeping with the President’s regulatory

reform initiative, the Bureau has

decided to consolidate parts 1, 2, and 3

into a single part 1 for ease of use. This

consolidation will eliminate some of the

duplicative material, such as definitions

of terms under the FAA Act which may

be found in more than one part.

ATF is also making certain minor

technical corrections in the new part 1.

References to sections of the FAA Act

have been corrected to reflect the

changes in section numbering arising

out of the enactment of the Alcoholic

Beverage Labeling Act of 1988, Pub.L.

100–690. Definitions of the terms

‘‘distilled spirits’’ and ‘‘wine’’ which

refer to sections of the FAA Act have

been clarified by adding citations to

Title 27 of the United States Code.

Conforming changes to the regulations

which define the ‘‘nonindustrial’’ uses

of distilled spirits and wines have been

made to reflect technical amendments to

the sections of the Internal Revenue

Code of 1986 which set forth the

conditions under which distilled spirits

and wines may be withdrawn free of

tax. See 26 U.S.C. 5214 (a) (2) and 5362

(c) (9). Finally, references in section

1.30 to the form for executing a power

of attorney have been updated to refer

to Form 5000.8 (1534), to reflect the new

number for that form. ATF is making

several other minor technical changes in

the regulations.

Paperwork Reduction Act

The provisions of the Paperwork

Reduction Act of 1980, Pub. L. 96–511,

44 U.S.C. Chapter 35, and its

implementing regulations, 5 CFR Part

1320, do not apply to this rule because

no new requirement to collect

information is imposed.

Regulatory Flexibility Act

Because no notice of proposed

rulemaking is required for this rule, the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.) do not apply.

Executive Order 12866

It has been determined that this rule

is not a significant regulatory action

because it will not, (1) Have an annual

effect on the economy of $100 million

or more or adversely affect in a material

way the economy, a sector of the

economy, productivity, competition,

jobs, the environment, public health or

safety, or State, local or tribal

governments or communities; (2) Create

a serious inconsistency or otherwise

interfere with an action taken or

planned by another agency; (3)

Materially alter the budgetary impact of

entitlements, grants, user fees, or loan

programs or the rights and obligations of

recipients thereof; or (4) Raise novel

legal or policy issues arising out of legal

mandates, the President’s priorities, or

the principles set forth in Executive

Order 12866.

Administrative Procedures Act

Because this final rule merely makes

technical amendments and conforming

changes to improve the clarity of the

regulations, it is unnecessary to issue

this final rule with notice and public

procedure under 5 U. S. C. 553(b).

Similarly, it is unnecessary to subject

this final rule to the effective date

limitation of 5 U.S.C. 553(d).

Drafting Information

The principal author of this document

is David W. Brokaw, Wine, Beer, and

Spirits Regulations Branch, Bureau of

Alcohol, Tobacco, and Firearms.

List of Subjects in 27 CFR Part 1

Administrative practices and

procedures, Alcohol and alcoholic

beverages, Authority delegations,

Imports, Liquors, Warehouses, and

Wine.

Authority and Issuance

PARTS 2 AND 3—[REMOVED]

Paragraph 1. Title 27 Code of Federal

Regulations parts 2 and 3 are removed

and part 1 is revised as follows:

PART 1—BASIC PERMIT

REQUIREMENTS UNDER THE

FEDERAL ALCOHOL

ADMINISTRATION ACT,

NONINDUSTRIAL USE OF DISTILLED

SPIRITS AND WINE, BULK SALES AND

BOTTLING OF DISTILLED SPIRITS

Subpart A—Scope

Sec.

1.1 General.

1.2 Territorial extent.

1.3 Forms prescribed.

Subpart B—Definitions

1.4 Meaning of terms.

Subpart C—Basic Permits

When Required

1.20 Importers.

1.21 Domestic producers, rectifiers,

blenders, and warehousemen.

1.22 Wholesalers.

1.23 State agencies.

Persons Entitled to Basic Permits

1.24 Qualifications of applicants.

Applications for Permits

1.25 General.

1.26 Incomplete or incorrectly executed

applications.

1.27 Change in ownership, management, or

control of the applicant.

1.29 Individual plant or premises.

1.30 Power of attorney; Form 5000.8 (1534).

1.31 Denial of permit applications.
26098 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Rules and Regulations

Authorization

1.35 Authority to issue, amend, deny,

suspend, revoke, or annul basic permits.

Amendment and Duration of Basic Permits

1.40 Change of name.

1.41 Change of address.

1.42 Change in ownership, management, or

control of business.

1.43 Duration of permits.

1.44 Automatic termination of permits.

Revocation, Suspension, or Annulment

of Basic Permits

1.50 Revocation or suspension.

1.51 Annulment.

1.52 Disposition of stocks of alcoholic

beverages upon revocation, annulment,

or automatic termination of basic permit.

Miscellaneous

1.55 Recalling permits for correction.

1.56 Oaths and affirmations.

1.57 Procedure.

1.58 Filing of permits.

1.59 Public information as to applications

acted upon.

Subpart D—Nonindustrial Use of Distilled

Spirits and Wine

Uses Regarded as Industrial

1.60 Use of distilled spirits.

1.61 Use of wine.

1.62 Use of distilled spirits or wine for

experimental purposes and in

manufacture of nonbeverage products.

Uses Classed as Nonindustrial

1.70 General.

1.71 Distilled spirits in containers of a

capacity of one gallon or less.

Subpart E—Bulk Sales and Bottling of

Distilled Spirits

Bulk Sales and Bottling

1.80 Sales of distilled spirits in bulk.

1.81 Importation of distilled spirits in bulk.

1.82 Acquiring or receiving distilled spirits

in bulk for redistillation, processing,

rectification, warehousing, or

warehousing and bottling.

1.83 Acquiring or receiving distilled spirits

in bulk for addition to wine.

1.84 Acquisition of distilled spirits in bulk

by Government agencies.

Warehouse Receipts

1.90 Distilled spirits in bulk.

1.91 Bottled distilled spirits.

Sales of Distilled Spirits for Industrial Use

1.95 General.

Authority: 27 U.S.C. 203, 204, 206, 211

unless otherwise noted.

Subpart A—Scope

§ 1.1 General.

(a) The regulations in this part relate

to requirements governing the issuance,

amendment, denial, revocation,

suspension, automatic termination, and

annulment of basic permits and the

duration of permits, except that the

provisions of part 200, Rules of Practice

in Permit Proceedings, of this chapter

are hereby made applicable to

administrative proceedings with respect

to the application for, and to the

suspension, revocation, or annulment

of, basic permits under the Federal

Alcohol Administration Act.

(b) The regulations in this part also

specify what uses of distilled spirits and

wine are ‘‘nonindustrial,’’ as that term is

used in section 117 of the Federal

Alcohol Administration Act (27 U.S.C.

211). Finally, this part, in accordance

with section 106 of the Federal Alcohol

Administration Act (27 U.S.C. 206),

contains the substantive requirements

relative to bulk sales and bottling of

distilled spirits under the Federal

Alcohol Administration Act, including

the terms of warehouse receipts for

distilled spirits in bulk. No procedural

requirements are prescribed.

§ 1.2 Territorial extent.

The provisions of this part are

applicable to the several States of the

United States, the District of Columbia

and Puerto Rico.

§ 1.3 Forms prescribed.

(a) The Director is authorized to

prescribe all forms required by this part.

All of the information called for in each

form shall be furnished as indicated by

the headings on the form and the

instructions on or pertaining to the

form. In addition, information called for

in each form shall be furnished as

required by this part.

(b) Requests for forms should be

mailed to the ATF Distribution Center,

PO Box 5950, Springfield, Virginia

22153–5950

Subpart B—Definitions

§ 1.4 Meaning of terms.

As used in this part, unless the

context otherwise requires, terms shall

have the meaning ascribed in this part.

Act. The Federal Alcohol

Administration Act.

Alcohol. Ethyl alcohol distilled at or

above 190° proof.

Applicant. Any person who has filed

with the regional director (compliance)

an application for a basic permit under

the Federal Alcohol Administration Act.

ATF officer. An officer or employee of

the Bureau of Alcohol, Tobacco and

Firearms (ATF) authorized to perform

any function relating to the

administration and enforcement of this

part.

Basic permit. A formal document

issued under the Act in the form

prescribed by the Director, authorizing

the person named therein to engage in

the activities specified at the location

stated.

Brandy. Brandy or wine spirits for

addition to wines as permitted by

internal revenue law.

Director. The Director, Bureau of

Alcohol, Tobacco and Firearms, the

Department of the Treasury,

Washington, DC.

Distilled spirits. Section 117(a) of the

Federal Alcohol Administration Act (27

U.S.C. 211(a)) defines ‘‘distilled spirits’’

as ethyl alcohol, hydrated oxide of

ethyl, spirits of wine, whiskey, rum,

brandy, gin, and other distilled spirits,

including all dilutions and mixtures

thereof for nonindustrial use.

In bulk. Distilled spirits in containers

having a capacity in excess of one wine

gallon.

Other term. Any other term defined in

the Federal Alcohol Administration Act

and used in this part shall have the

same meaning assigned to it by the Act.

Permittee. Any person holding a basic

permit issued under the Federal Alcohol

Administration Act.

Person. Any individual, partnership,

joint-stock company, business trust,

association, corporation, or other form

of business enterprise, including a

receiver, trustee, or liquidating agent.

Regional director (compliance). The

principal ATF regional official

responsible for administering

regulations in this part.

Resale at wholesale. A sale to any

trade buyer.

Trade buyer. Any person who is a

wholesaler or retailer of distilled spirits,

wine, or malt beverages.

Wine. Section 117(a) of the Federal

Alcohol Administration Act (27 U.S.C.

211(a)) defines ‘‘wine’’ as:

(a) Wine as defined in section 610 and

section 617 of the Revenue Act of 1918

(26 U.S.C. 5381–5392), as now in force

or hereafter amended, and

(b) Other alcoholic beverages not so

defined, but made in the manner of

wine, including sparkling and

carbonated wine, wine made from

condensed grape must, wine made from

other agricultural products than the

juice of sound, ripe grapes, imitation

wine, compounds sold as wine,

vermouth, cider, perry, and sake; in

each instance, only if containing not

less than 7 percent and not more than

24 percent of alcohol by volume, and if

for nonindustrial use.

Wine gallon. The liquid measure

equivalent to the volume of 231 cubic

inches.

Subpart C—Basic Permits

When Required

§ 1.20 Importers.

No person, except pursuant to a basic

permit issued under the Act, shall:
Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Rules and Regulations 26099

(a) Engage in the business of

importing into the United States

distilled spirits, wine, or malt beverages;

or

(b) While so engaged, sell, offer or

deliver for sale, contract to sell, or ship,

in interstate or foreign commerce,

directly or indirectly or through an

affiliate, distilled spirits, wine, or malt

beverages so imported.

§ 1.21 Domestic producers, rectifiers,

blenders, and warehousemen.

No person, except pursuant to a basic

permit issued under the Act, shall:

(a) Engage in the business of distilling

distilled spirits, producing wine,

rectifying or blending distilled spirits or

wine, or bottling, or warehousing and

bottling, distilled spirits; or

(b) While so engaged, sell, offer or

deliver for sale, contract to sell, or ship,

in interstate or foreign commerce,

directly or indirectly or through an

affiliate, distilled spirits or wine so

distilled, produced, rectified, blended,

or bottled, or warehoused and bottled.

§ 1.22 Wholesalers.

No person, except pursuant to a basic

permit issued under the Act, shall:

(a) Engage in the business of

purchasing for resale at wholesale,

distilled spirits, wine, or malt beverages;

or,

(b) While so engaged, receive, sell,

offer or deliver for sale, contract to sell,

or ship in interstate or foreign

commerce, directly or indirectly or

through an affiliate, distilled spirits,

wine, or malt beverages so purchased.

§ 1.23 State agencies.

This subpart shall not apply to any

agency of a State or political subdivision

thereof or to any officer or employee of

any such agency, and no such agency or

officer or employee thereof shall be

required to obtain a basic permit under

this subpart.

Persons Entitled to Basic Permits

§ 1.24 Qualifications of applicants.

The application of any person shall be

granted and the permit issued by the

regional director (compliance) if the

applicant proves to the satisfaction of

the regional director (compliance) that:

(a) Such person (or in case of a

corporation, any of its officers, directors,

or principal stockholders) has not,

within 5 years prior to the date of

application, been convicted of a felony

under Federal or State law, and has not,

within 3 years prior to date of

application, been convicted of a

misdemeanor under any Federal law

relating to liquor, including the taxation

thereof; and

(b) Such person, by reason of the

person’s business experience, financial

standing or trade connections, is likely

to commence operations as a distiller,

warehouseman and bottler, rectifier,

wine producer, wine blender, importer,

or wholesaler, as the case may be,

within a reasonable period and to

maintain such operations in conformity

with Federal law; and

(c) The operations proposed to be

conducted by such person are not in

violation of the law of the State in

which they are to be conducted.

Applications for Permits

§ 1.25 General.

Applications for basic permits to

engage in any of the operations set forth

in §§ 1.20 to 1.22 shall be made on the

appropriate form prescribed by the

Director, verified as required by § 1.56,

and shall be accompanied by such

affidavits, documents, and other

supporting data, as the Director or the

regional director (compliance) shall

require. All data, written statements,

affidavits, documents, or other evidence

submitted in support of the application,

or upon hearing thereon, shall be

deemed to be a part of the application.

All applications shall be filed by

mailing or delivering the same to the

office of the regional director

(compliance).

§ 1.26 Incomplete or incorrectly executed

applications.

Incomplete or incorrectly executed

applications will not be acted upon, but

the applicant shall be entitled to file a

new application without prejudice, or to

complete the application already filed.

§ 1.27 Change in ownership, management,

or control of the applicant.

In the event of any change in the

ownership, management, or control of

the applicant (in case of a corporation,

any change in the officers, directors, or

persons holding more than 10 percent of

the corporate stock), after the date of

filing of any application for a basic

permit and prior to final action on such

application, the applicant shall notify

the regional director (compliance)

immediately of such change.

§ 1.29

Individual plant or premises.

An application for a basic permit

must be filed, and permit issued, to

cover each individual plant or premises

where any of the businesses specified in

section 103 of the Act is engaged in,

such application to be filed with and

permit issued by the regional director

(compliance) for the region wherein

such plant or premises is located.

§ 1.30 Power of attorney; Form 5000.8

(1534).

If the application and other

documents in support of such

application are signed by an attorney in

fact of an individual, partnership,

association, or corporation, or by one of

the members of a copartnership or

association, or, in the case of a

corporation by an officer or other person

not authorized by the corporation’s

bylaws or by its board of directors to

sign such applications and supporting

documents, the applications must be

supported by a duly authenticated copy

of the power of attorney conferring

authority upon the person signing the

documents to execute the same. Such

powers of attorney will be executed on

Form 5000.8 (1534), in triplicate, and

submitted to the regional director

(compliance).

(Approved by the Office of Management and

Budget under control number 1512–0079)

§ 1.31 Denial of permit applications.

If, upon examination of any

application for a basic permit, the

regional director (compliance) has

reason to believe that the applicant is

not entitled to such a permit, the

regional director (compliance) shall

institute proceedings for the denial of

the application in accordance with the

procedure set forth in part 200 of this

chapter.

Authorization

§ 1.35 Authority to issue, amend, deny,

suspend, revoke, or annul basic permits.

The authority and power of issuing,

amending, or denying basic permits, or

amendments thereof, is conferred upon

the Director and (except as to agency

initiated curtailment) upon the regional

director (compliance). The authority

and power of suspending, revoking, or

annulling basic permits is conferred

upon the Director, and upon the

administrative law judges referred to in

part 200 of this chapter. The Director,

upon consideration of appeals on

petitions for review, may order the

regional director (compliance) to issue,

deny, suspend, revoke, or annul basic

permits.

Amendment and Duration of Basic

Permits

§ 1.40 Change of name.

In the event of any change in the

name (trade or corporate name) of a

permittee, or, in the event a permittee

desires to engage in operations under an

additional trade name, such permittee

must file application Form 5100.18

(1643), with the regional director

(compliance), for an amended basic
26100 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Rules and Regulations

permit, which application must be

approved, and amended permit issued,

before operations may be commenced

under the new name.

(Approved by the Office of Management and

Budget under control number 1512–0090)

§ 1.41 Change of address.

In the event of a change in address the

permittee must file application Form

5100.18 (1643), with the regional

director (compliance), for an amended

basic permit.

§ 1.42 Change in ownership, management,

or control of business.

In the event of any change in the

ownership, management, or control of

any business operated pursuant to a

basic permit (if the permittee is a

corporation, if any change occurs in the

officers, directors, or persons owning or

controlling more than 10 percent of the

voting stock of said corporation) the

permittee shall immediately notify the

regional director (compliance) of such

change, giving the names and addresses

of all new persons participating in the

ownership, management, or control of

such business, or in the case of a

corporation, the names and addresses of

such new officers, directors, or persons

owning or controlling more than 10

percent of the voting stock. Notice to the

regional director (compliance) of any

such change shall be accompanied or

supplemented by such data in reference

to the personal or business history of

such persons as the regional director

(compliance) may require.

§ 1.43 Duration of permits.

A basic permit shall continue in effect

until suspended, revoked, annulled,

voluntarily surrendered, or

automatically terminated, as provided

in the Act and in this part.

§ 1.44 Automatic termination of permits.

No basic permit shall be leased, sold,

or otherwise voluntarily transferred,

and, in the event of such lease, sale, or

other voluntary transfer, such basic

permit shall automatically terminate

thereupon. If any basic permit is

transferred by operation of law or if

actual or legal control of the permittee

is acquired, directly or indirectly

whether by stock ownership or in any

other manner, by any person, then such

permit shall be automatically

terminated at the expiration of 30 days

thereafter: Provided, That if within such

30-day period application for a new

basic permit is made by the transferee

or permittee, respectively, then the

outstanding basic permit shall continue

in effect until such time as the

application is finally acted upon.

Revocation, Suspension, or Annulment

of Basic Permits

§ 1.50 Revocation or suspension.

Whenever the regional director

(compliance) has reason to believe that

any permittee has willfully violated any

of the conditions of the permittee’s basic

permit or has not engaged in the

operations authorized by the permit for

a period of more than two years, the

regional director (compliance) shall

institute proceedings for the revocation

or suspension of such permit, in

accordance with the procedure set forth

in part 200 of this chapter, which part

is made applicable to such proceedings.

§ 1.51 Annulment.

Whenever the regional director

(compliance) has reason to believe that

any basic permit was procured through

fraud, or misrepresentation or

concealment of material fact, the

regional director (compliance) shall

institute proceedings for the annulment

of such permit in accordance with the

procedure set forth in part 200 of this

chapter, which part is made applicable

to such proceedings.

§ 1.52 Disposition of stocks of alcoholic

beverages upon revocation, annulment, or

automatic termination of basic permit.

In the event of the revocation or

annulment of a basic permit, pursuant

to part 200 of this chapter, or in the

event such permit is automatically

terminated by operation of law (27

U.S.C. 204(g) and § 1.44 of this part), the

regional director (compliance) may

authorize the orderly disposition of

stocks of distilled spirits, wines, or malt

beverages then held by the permittee or

former permittee upon such conditions

as may be considered proper.

Miscellaneous

§ 1.55 Recalling permits for correction.

Whenever it shall be discovered that

any basic permit has been issued

authorizing acts, or combinations of

acts, which may not properly, under the

law and regulations, as of now or

hereafter in force, be authorized, or that

any material mistake has occurred in the

issuance thereof, the holder of such

permit shall forthwith surrender the

same for correction or amendment upon

demand of the regional director

(compliance).

§ 1.56 Oaths and affirmations.

Any document required by

regulations or instructions of the

Director to be verified, shall be so

verified upon oath or affirmation taken

before a person authorized by the laws

of the United States or by State or local

law to administer oaths or affirmations

in the jurisdiction wherein such

document is to be executed.

§ 1.57 Procedure.

The procedures prescribed by the

rules of practice in permit proceedings

(part 200 of this chapter) are applicable

to administrative proceedings for the

issuance, amendment, denial,

revocation, suspension, or annulment of

basic permits, the issuance of subpoenas

and the taking of depositions under the

Act.

§ 1.58 Filing of permits.

Every person receiving a basic permit

under the provisions of this part must

file the same, at the place of business

covered by the basic permit, so that it

may be examined by ATF officers.

§ 1.59 Public information as to

applications acted upon.

The regional director (compliance)

shall cause to be maintained currently

in the regional director’s (compliance)

office for public inspection, until the

expiration of one year following final

action on the application, the following

information with respect to each

application for basic permit filed:

(a) The name, including trade name or

names, if any, and the address of the

applicant; the kind of permit applied for

and the location of the business;

whether the applicant is an individual,

a partnership or a corporation; if a

partnership, the name and address of

each partner; if a corporation, the name

and address of each of the principal

officers and of each stockholder owning

10 percent or more of the corporate

stock.

(b) The time and place set for any

hearing on the application.

(c) The final action taken on the

application. In the event a hearing is

held upon an application for a basic

permit, the regional director

(compliance) shall make available for

inspection at the regional director’s

(compliance) office, upon request

therefor: The transcript of the hearing, a

copy of the administrative law judge’s

recommended decision, a copy of the

regional director’s (compliance)

decision and, in the event of an appeal

to the Director, the decision on appeal

with the reasons given in support

thereof.

Subpart D—Nonindustrial Use of

Distilled Spirits and Wine

Uses Regarded as Industrial

§ 1.60 Use of distilled spirits.

The following uses of distilled spirits

are regarded as ‘‘industrial’’ and will be
Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Rules and Regulations 26101

excluded from any application of the

term ‘‘nonindustrial use.’’ The use of

distilled spirits:

(a) Free of tax by, and for the use of,

the United States or any governmental

agency thereof, any State, any political

subdivision of a State, or the District of

Columbia, for nonbeverage purposes; or

(b) Free of tax for nonbeverage

purposes and not for resale or use in the

manufacture of any product for sale:

(1) For the use of any educational

organization described in 26 U.S.C.

170(b)(1)(A)(ii) which is exempt from

income tax under 26 U.S.C. 501(a), or

for the use of any scientific university

or college of learning;

(2) For any laboratory for use

exclusively in scientific research;

(3) For use at any hospital, blood

bank, or sanitarium (including use in

making analysis or test at such hospital,

blood bank, or sanitarium), or at any

pathological laboratory exclusively

engaged in making analyses, or tests, for

hospitals or sanitariums; or

(4) For the use of any clinic operated

for charity and not for profit (including

use in compounding of bona fide

medicines for treatment outside of such

clinics of patients thereof); or

(c) Free of tax, after denaturation of

such spirits in the manner prescribed by

law for:

(1) Use in the manufacture of ether,

chloroform, or other definite chemical

substance where such distilled spirits

are changed into some other chemical

substance and do not appear in the

finished product; or

(2) Any other use in the arts and

industries (except for uses prohibited by

26 U.S.C. 5273 (b) or (d)) and for fuel,

light, and power.

§ 1.61 Use of wine.

The following uses of wine are

regarded as ‘‘industrial’’ and will be

excluded from any application of the

term ‘‘nonindustrial’’. The use of wine:

(a) Without payment of tax for use in

the production of vinegar; or

(b) Free of tax for experimental or

research purposes by any scientific

university, college of learning, or

institution of scientific research; or

(c) Free of tax for use by the United

States or any agency thereof, and for use

for analysis, testing, research, or

experimentation by the governments of

the several States and the District of

Columbia or of any political subdivision

thereof or by any agency of such

governments; or

(d) Which has been rendered unfit for

beverage use.

§ 1.62 Use of distilled spirits or wine for

experimental purposes and in manufacture

of nonbeverage products.

The use of distilled spirits or wine for

experimental purposes and in the

manufacture of (a) medicinal,

pharmaceutical, or antiseptic products,

including prescriptions compounded by

retail druggists; (b) toilet preparations;

(c) flavoring extracts, syrups, or food

products; or (d) scientific, chemical,

mechanical, or industrial products,

provided such products are unfit for

beverage use, is regarded as

‘‘industrial,’’ and will be excluded from

any application of the term

‘‘nonindustrial use.’’

Uses Classed as Nonindustrial

§ 1.70 General.

All uses of distilled spirits and wines,

except as provided in §§ 1.60, 1.61, and

1.62 of this part, are regarded as

‘‘nonindustrial.’’ Such ‘‘nonindustrial’’

use shall include, but not be limited to,

distilled spirits or wine used for

beverage purposes, or in the

manufacture, rectification, or blending

of alcoholic beverages; or in the

preparation of food or drink by a hotel,

restaurant, tavern, or similar

establishment; or for sacramental

purposes; or as a medicine.

§ 1.71 Distilled spirits in containers of a

capacity of one gallon or less.

Distilled spirits in containers of a

capacity of one wine gallon or less,

except anhydrous alcohol and alcohol

which may be withdrawn free of tax

under the internal revenue laws, will be

deemed to be for nonindustrial use.

Subpart E—Bulk Sales and Bottling of

Distilled Spirits

Bulk Sales and Bottling

§ 1.80 Sales of distilled spirits in bulk.

It is unlawful for any person to sell,

offer to sell, contract to sell, or

otherwise dispose of distilled spirits in

bulk, for nonindustrial use, except for

export or to the classes of persons

enumerated in §§ 1.82, 1.83, and 1.84.

§ 1.81 Importation of distilled spirits in

bulk.

It is unlawful for any person to import

distilled spirits in bulk, for

nonindustrial use, except for sale to or

for use by the classes of persons

enumerated in §§ 1.82, 1.83 and 1.84.

§ 1.82 Acquiring or receiving distilled

spirits in bulk for redistillation, processing,

rectification, warehousing, or warehousing

and bottling.

(a) Proprietors of distilled spirits

plants. Persons holding basic permits

(issued under subpart B of this part)

authorizing the distilling, processing,

rectifying, or warehousing and bottling

of distilled spirits, or operating permits

(issued under § 19.157 and succeeding

sections of this chapter) may acquire or

receive in bulk and redistill, warehouse,

or process distilled spirits, so far as

permitted by law.

(b) Proprietors of class 8 customs

bonded warehouses. If the permittee

operates a class 8 customs bonded

warehouse, the permittee may acquire

or receive in bulk, and warehouse and

bottle, imported distilled spirits, so far

as permitted by the customs laws.

(26 U.S.C. 7805 (68A Stat. 917, as amended);

27 U.S.C. 205 (49 Stat. 981, as amended))

§ 1.83 Acquiring or receiving distilled

spirits in bulk for addition to wine.

Persons holding permits as producers

and blenders of wine, may, pursuant to

such permit, acquire or receive in bulk

alcohol or brandy for addition to wines.

§ 1.84 Acquisition of distilled spirits in

bulk by Government agencies.

Any agency of the United States, or of

any State or political subdivision

thereof, may acquire or receive in bulk,

and warehouse and bottle, imported and

domestic distilled spirits in conformity

with the internal revenue laws.

Warehouse Receipts

§ 1.90 Distilled spirits in bulk.

By the terms of the Act (27 U.S.C.

206), all warehouse receipts for distilled

spirits in bulk must require that the

warehouseman shall package such

distilled spirits, before delivery, in

bottles labeled and marked in

accordance with law, or deliver such

distilled spirits in bulk only to persons

to whom it is lawful to sell or otherwise

dispose of distilled spirits in bulk.

§ 1.91 Bottled distilled spirits.

The provisions of the Act, which

forbid any person to sell, offer to sell,

contract to sell, or otherwise dispose of

warehouse receipts for distilled spirits

in bulk, do not apply to warehouse

receipts for bottled distilled spirits.

Cross Reference: For labeling of distilled

spirits, see part 5 of this chapter.

Sales of Distilled Spirits for Industrial

Use

§ 1.95 General.

Distillers, rectifiers, and other

permittees engaged in the sale or other

disposition of distilled spirits for

nonindustrial use shall not sell or

otherwise dispose of distilled spirits in

bulk (other than alcohol) for industrial

use, unless such distilled spirits are
26102 Federal Register / Vol. 61, No. 102 / Friday, May 24, 1996 / Rules and Regulations

shipped or delivered directly to the

industrial user thereof.

Bradley A. Buckles,

Acting Director.

Approved: April 29, 1996.

John P. Simpson,

Deputy Assistant Secretary (Regulatory, Tariff

and Trade Enforcement).

[FR Doc. 96–12965 Filed 5–23–96; 8:45 am]

BILLING CODE 4810–31–P

DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 95

[DoD Directive 1005.13]

Gifts From Foreign Governments;

Removal of Part

AGENCY: Department of Defense.

ACTION: Final rule.

SUMMARY: This document removes the

Department of Defense’s rule concerning

gifts from foreign governments. The part

has served the purpose for which it was

intended for the Code of Federal

Regulations, and is no longer necessary.

EFFECTIVE DATE: May 24, 1996.

FOR FURTHER INFORMATION CONTACT:

Mr. R. Kennedy, 703–697–1142.

SUPPLEMENTARY INFORMATION: Paper

copies of DoD Directive 1005.13 are

available, at cost, from the National

Technical Information Service, 5285

Port Royal Road, Springfield, VA 22161.

The Directive is also available on the

World-Wide Web at URL address:

http:\\www.dtic.mil/adm.

List of Subjects in 32 CFR Part 95

Foreign relations; Government

employees; Government property.

PART 95—[REMOVED]

Accordingly, by the authority of 10

U.S.C. 301, 32 CFR Part 95 is removed.

Dated: May 21, 1996.

L.M. Bynum,

Alternate OSD Federal Register Liaison

Officer, Department of Defense.

[FR Doc. 96–13148 Filed 5–23–96; 8:45 am]

BILLING CODE 5000–04–M

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 100

[CGD01–96–017]

RIN 2115–AE46

Special Local Regulation; Quonset

Open House, North Kingstown, RI

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is

establishing a temporary special local

regulation for an airshow known as the

Quonset Open House. The Quonset

Open House will be held on June 1 and

2, 1996, off Quonset Point, North

Kingstown, RI. This regulation is

needed to protect the boating public

from the hazards associated with low

flying aircraft in the vicinity of the

airstrip.

EFFECTIVE DATE: This rule is effective on

June 1 and 2, 1996, from 9 a.m. to 4:30

p.m.

FOR FURTHER INFORMATION CONTACT:

Lieutenant (Junior Grade) Benjamin M.

Algeo, Chief, Boating Affairs Branch,

First Coast Guard District, (617) 223–

8311.

SUPPLEMENTARY INFORMATION:

Regulatory History

As authorized by 5 U.S.C. 553, a

notice of proposed rulemaking (NPRM)

was not published for this regulation.

Good cause exists for not publishing an

NPRM and for making this section

effective less than 30 days after Federal

Register publication. The application

for the event was received less than 30

days prior to the event date. Publishing

a NPRM and delaying the event would

be contrary to the public interest

because the airshow is intended for

viewing by the public. The sponsor was

unable to provide more leadtime due to

the difficulties in scheduling the

participating aircraft.

Background and Purpose

The Quonset Open House is a local,

traditional airshow sponsored by the

Rhode Island National Guard.

Participating aircraft take off and land

from an airstrip located on Quonset

Point, North Kingstown, RI. Due to the

aircrafts’ low flight paths, close

proximity to spectator vessels, and other

water related events, a regulated area is

needed to protect life and property

during the event.

This section establishes a regulated

area in the West Passage of Rhode Island

Sound, off Quonset Point. It prohibits

vessels from entering the regulated area

during the event. In emergency

situations, provisions may be made to

establish safe escort by a Coast Guard or

designated Coast Guard vessel for

vessels requiring transit through the

regulated area.

Regulatory Evaluation

This rule is not a significant

regulatory action under section 3(f) of

Executive Order 12866, and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

order. It has been exempted from review

of the Office of Management and Budget

under that order. It is not significant

under the regulatory policies and

procedures of the Department of

Transportation (DOT) (44 FR 11040;

February 26, 1979). The Coast Guard

expects the economic impact of this rule

to be so minimal that a full Regulatory

Evaluation, under paragraph 10e of the

regulatory policies and procedures of

DOT, is unnecessary. The effect of this

section will not be significant for several

reasons: the regulated area includes less

than half of one square nautical mile of

Narragansett Bay; entry into the

regulated area is restricted for a short

duration; vessels may transit around the

regulated area; and the extensive

advance advisories which will be made.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.), the Coast Guard

must consider the economic impact on

small entities of a rule for which a

general notice of proposed rulemaking

is required. ‘‘Small entities’’ may

include (1) small businesses and not-forprofit organizations that are

independently owned and operated and

are not dominant in their fields and (2)

governmental jurisdictions with

populations of less than 50,000.

For the reasons discussed in the

Regulatory Evaluation, the Coast Guard

certifies under 5 U.S.C. 605(b) that this

rule will not have a significant

economic impact on a substantial

number of small entities. If, however,

you think that your business or

organization qualifies as a small entity

and that this rule will have a significant

economic impact on your business or

organization, please submit a comment

explaining why you think it qualifies

and in what way and to what degree this

rule will economically affect it.

Collection of Information

This rule contains no collection of

information requirements under the

Paperwork Reduction Act (44 U.S.C.

3501 et seq.)