37394 Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 17, 19, 20, 22, 24, 25, 26, 

27, 28, 31, 40, 44, 46, and 70 

[Docket No. TTB–2009–0003; T.D. TTB–79; 

Re: Notice No. 96] 

RIN 1513–AB63 

Liquor Dealer Recordkeeping and 

Registration, and Repeal of Certain 

Special (Occupational) Taxes 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Temporary rule; Treasury 

decision. 

SUMMARY: This temporary rule amends 

the regulations administered by the 

Alcohol and Tobacco Tax and Trade 

Bureau, to reflect the repeal of certain 

special (occupational) taxes by section 

11125 of the Safe, Accountable, 

Flexible, Efficient Transportation Equity 

Act: A Legacy for Users. The repeal 

involves such taxes on alcohol beverage 

producers and dealers, tax-free alcohol 

users, denatured spirits users and 

dealers, and persons claiming drawback 

for the manufacture of nonbeverage 

alcoholic products. In place of the 

special (occupational) tax requirement, 

the amended law requires 

recordkeeping and registration by 

dealers in distilled spirits, wines, and 

beer, and by manufacturers of 

nonbeverage products who claim 

drawback. We also are soliciting 

comments from all interested parties on 

these regulatory amendments through a 

notice of proposed rulemaking 

published elsewhere in this issue of the 

Federal Register. 

DATES: Effective Dates: This temporary 

rule is effective July 28, 2009 through 

July 30, 2012. 

FOR FURTHER INFORMATION CONTACT: For 

questions concerning registration or 

occupational tax filing procedures, 

contact Jackie Feinauer, National 

Revenue Center, Alcohol and Tobacco 

Tax and Trade Bureau (800–937–8864); 

for other questions concerning this 

document, contact Steve Simon, 

Regulations and Rulings Division, 

Alcohol and Tobacco Tax and Trade 

Bureau (202–453–2164). 

SUPPLEMENTARY INFORMATION: 

Background 

On August 10, 2005, the President 

signed into law the ‘‘Safe, Accountable, 

Flexible, Efficient Transportation Equity 

Act: A Legacy for Users,’’ Public Law 

109–59, 119 Stat. 1953 (the Act). Section 

11125 of the Act amended certain 

provisions of the Internal Revenue Code 

of 1986 (IRC) (26 U.S.C.) to repeal, 

effective July 1, 2008, the provisions 

covering special (occupational) taxes 

(also referred to in this document as 

SOT or special taxes) on: 

• Producers and dealers of alcohol 

beverages, 

• Manufacturers of nonbeverage 

products, 

• Users of tax-free alcohol, and 

• Users and dealers of specially 

denatured spirits. 

Although section 11125 repealed the 

tax for these occupations, it did not 

remove the recordkeeping and 

registration requirements for dealers in 

alcohol beverages and for manufacturers 

of nonbeverage products. Under section 

11125, all persons who sell distilled 

spirits, wine, or beer are dealers. As 

explained below, this covers only those 

dealers who sell alcohol products fit for 

beverage use. 

The IRC chapter 51 and 52 provisions 

referred to above, and the regulations 

promulgated thereunder and contained 

in title 27 of the Code of Federal 

Regulations, are administered by the 

Alcohol and Tobacco Tax and Trade 

Bureau (TTB). 

In order to remove the special 

(occupational) taxes on producers and 

marketers of alcohol beverages, 

paragraph (a) of section 11125 repealed 

the following subparts and sections of 

IRC chapter 51, subchapter A, part II: 

• Subpart A relating to proprietors of 

distilled spirits plants, bonded wine 

cellars, etc. (26 U.S.C. 5081); 

• Subpart B relating to brewers (26 

U.S.C. 5091–5093); 

• Subpart D relating to wholesale 

dealers, except for sections 5114 and 

5116 (26 U.S.C. 5111–5113 and 5117); 

• Subpart E relating to retail dealers, 

except for section 5124 (26 U.S.C. 5121– 

5123 and 5125); and 

• Subpart G relating to general 

provisions, except for sections 5142, 

5143, 5145, and 5146 (26 U.S.C. 5141 

and 5147–5149). 

Section 11125(a) also did away with 

the special (occupational) tax on 

nonbeverage drawback claimants by 

removing from 26 U.S.C. 5131 the 

reference to annual payment of a special 

tax. Finally, section 11125(a) did away 

with the special (occupational) tax on 

industrial use of distilled spirits by 

repealing 26 U.S.C. 5276. 

Paragraph (b) of section 11125 made 

a number of conforming amendments to 

IRC chapter 51, subchapter A, part II. 

These amendments involved: 

• Redesignating subpart C as subpart 

A; 

• Redesignating subpart F as subpart 

B (with sections 5131 through 5134 

redesignated as sections 5111 through 

5114); 

• Removing the special tax rate 

provision from redesignated section 

5111; and 

• Adding new subparts C (containing 

new sections 5121 through 5124) and D 

(containing new sections 5131 and 

5132). Note: A technical error in the 

designation of section 5121 was 

corrected by section 11(a)(31) of the Tax 

Technical Corrections Act of 2007 (Pub. 

L. 110–172, 121 Stat. 2487). 

New sections 5121, 5122, and 5123 

were obtained by redesignating sections 

5114, 5124, and 5146, respectively. The 

text of former section 5112 is included 

in new section 5121, and the text of 

former section 5122 is included in new 

section 5122. New section 5124, titled 

‘‘Registration by Dealers,’’ is patterned 

after existing section 7011(a). New 

section 5131 was obtained by 

redesignating section 5116, and new 

section 5132 contains, with a change, 

the text of former section 5117. 

Paragraph (b) of section 11125 made 

additional conforming amendments 

elsewhere in the IRC, of which we note 

the following: 

• Chapter 51, subchapter J, part V 

(section 5691) was repealed (although 

the terms of section 5691(b) were 

included in new section 5121(c)(4)); and 

• Sections 5142, 5143, and 5145 were 

redesignated as sections 5732, 5733, and 

5734 in subchapter D of chapter 52, 

relating to the special tax on tobacco 

occupations, which remains in effect. 

Temporary Rule 

Based on the July 1, 2008, effective 

date of the repeal of certain special 

(occupational) taxes, as described above, 

TTB believes that the proper 

administration of the repeal and the 

related changes to recordkeeping and 

registration requirements necessitates 

immediate adoption of the 

implementing regulations as a 

temporary rule. 

Public Participation 

To submit comments on the 

regulatory amendments contained in 

this temporary rule, please refer to the 

related notice of proposed rulemaking 

on this subject published elsewhere in 

this issue of the Federal Register. 

Basic Interpretative Considerations 

Based on a careful reading of the 

amendments set out in section 11125 of 

the Act and resulting statutory language, 

TTB has applied the following 

considerations in preparing the 

regulatory changes to title 27 of the 

Code of Federal Regulations (27 CFR) 

set forth in this document: 


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Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 37395 

1. Application. Consistent with the 

Government’s longstanding 

interpretation of the IRC, liquor dealer 

recordkeeping and registration 

requirements apply only to dealers in 

alcohol fit for beverage use. See, e.g., 26 

CFR 194.21 (1960 ed.). ‘‘Alcohol fit for 

beverage use’’ not only includes alcohol 

beverages but also includes alcoholic 

products for industrial use, unless the 

products are unfit for beverage use. 

2. Frequency of registration. SOT for 

dealers was an annual tax, and filing of 

the return and registration was required 

by regulation on an annual basis. 

However, the IRC does not, and never 

did, require annual dealer registration, 

only that such dealers must ‘‘register 

with the Secretary.’’ We see no reason 

to continue the annual filing 

requirement in the absence of annual 

collection of a tax. Instead, the 

regulatory changes in this document 

lessen the dealers’ burden by requiring 

registration upon entering business as a 

dealer, with subsequent registrations 

required only for reporting changes in 

certain information and upon 

termination of business. On the other 

hand, Manufacturer of Nonbeverage 

Products (MNBP) drawback claimant 

registration is required annually because 

of the wording of 26 U.S.C. 5112. For 

persons filing MNBP drawback claims 

under the IRC, the first claim for the 

calendar year will satisfy the 

registration requirement if the claim 

contains the required registration 

information; subsequent claims with 

updated information will be considered 

amended registrations. 

3. Registration of proprietors of 

distilled spirits plants, bonded wine 

cellars, etc. Since the definition of 

‘‘dealer’’ in new section 5121(c)(4) of 

the IRC refers to ‘‘any person who sells, 

or offers for sale, any distilled spirits, 

wines, or beer,’’ the requirements for 

recordkeeping and registration by 

dealers will also apply to proprietors of 

distilled spirits plants, bonded wine 

premises, taxpaid wine bottling houses, 

and breweries, if those proprietors sell 

their products or offer them for sale. 

Although these persons previously were 

generally exempted by 26 U.S.C. 5113 

from the registration requirements 

applicable to liquor and beer dealers, 

this situation changed when section 

11125 of the Act repealed section 5113 

of the IRC and thereby deleted the 

exemption under section 5113. 

In order to minimize the resulting 

regulatory burden, TTB has determined 

that proprietors of distilled spirits 

plants, bonded wine premises, and 

taxpaid wine bottling houses who have 

qualified under the IRC, and brewers 

who hold approved brewers’ notices 

under the IRC, will be deemed to have 

registered as dealers. In other words, the 

qualification and brewer’s notice will 

serve as the registration required by 

section 11125. As part of the 

qualification or notice process, the 

proprietor must file and maintain in a 

current status all the information 

required for dealer registration under 

section 11125. Required notices of 

changes to the information required for 

IRC qualification or the brewer’s notice 

will be considered as amendments to 

the dealer registration, and notice that 

the proprietor is going out of business 

will terminate the dealer registration as 

well. 

4. Proprietors will be registered as 

wholesale liquor dealers. Proprietors of 

distilled spirits plants, bonded wine 

premises, and taxpaid wine bottling 

houses qualified under the IRC, and 

brewers who hold approved brewers 

notices under the IRC, will be treated as 

wholesale liquor dealers for registration 

purposes. This will allow the proprietor 

to sell distilled spirits, wine or beer at 

wholesale or retail from the covered 

location. For proprietors who have retail 

operations such as taverns on brewery 

premises, or who run wholesale or 

import operations from their premises 

and sell alcohol beverages other than 

the ones they produce, this 

interpretation will give maximum 

registration flexibility. Because 

industrial distilled spirits plants are 

qualified under the IRC, they will be 

considered as having registered as a 

wholesale liquor dealer for sales of 

undenatured alcohol. Even though a 

proprietor who makes no sales of 

alcohol fit for beverage use is not 

required to register, we believe this 

approach imposes the least overall 

burden. Since there is no cost to the 

proprietor, there is no reason to make a 

distinction in the registration. 

5. Persons who must register on Form 

5630.5d. Persons required to hold a 

basic permit under the Federal Alcohol 

Administration (FAA) Act as 

wholesalers or importers are considered 

dealers under section 11125, and so 

must file a registration on Form 

5630.5d, as must retail dealers. This 

registration will remain in effect as long 

as the required information remains the 

same. Changes must be reported by 

filing of an amended Form 5630.5d if 

any of the required information changes, 

and the registrations must be terminated 

when covered operations cease. States, 

localities, and the District of Columbia 

are required to register only once as a 

wholesaler and once as a retailer in 

order to cover all operations within the 

jurisdiction in question. 

6. Records. Required records for 

wholesale and retail liquor and beer 

dealers are specified in 27 CFR part 31 

and are not significantly changed by this 

document. Breweries and proprietors of 

distilled spirits plants, bonded wine 

premises, and taxpaid wine bottling 

houses, who keep required records 

under the applicable IRC regulations, 

need not generate additional records as 

dealers for the same transactions. 

7. Transition to new rules. For 

persons who were required to register 

and report changes on TTB Form 5630.5 

during the SOT suspension period (July 

1, 2005, through June 30, 2008), any 

registration filed after January 1, 2007, 

will constitute a valid registration 

required on or after July 1, 2008, and 

will continue in effect until the required 

registration information changes or 

operations are terminated. Therefore, 

such existing registrants will not have to 

re-register to comply with the new 

registration requirements. However, 

existing businesses that have not 

registered on or after January 1, 2007, 

must file a one-time registration on or 

before July 1, 2009, using TTB Form 

5630.5d. The reasons for these dates are 

as follows: (1) Technically, the last 

registration required under the 

regulations for the 3-year SOT 

suspension was due on or before July 1, 

2007. Most registrants would probably 

have filed before the deadline, but few, 

if any, would have filed before January 

1, 2007; and (2) since this document 

was not published before July 1, 2008, 

the first registration under these new 

regulations—except for new 

businesses—will be due July 1, 2009. 

This transition rule applies to alcohol 

beverage dealers, breweries, and 

proprietors of distilled spirits plants, 

bonded wine premises, and taxpaid 

wine bottling houses, but not to MNBP 

drawback claimants. As noted above, 

MNBPs will be considered registered 

when they file the first claim for each 

year. 

8. Effective date. The amendments 

made by section 11125 were effective on 

July 1, 2008. However, these regulations 

take effect on the date of their 

publication in the Federal Register. For 

the period between July 1, 2008, and the 

effective date of the temporary 

regulations, TTB will not apply or 

enforce any regulatory provision that is 

clearly inconsistent with current law, 

since statutory provisions always take 

precedence over conflicting regulations. 

On the other hand, any regulations that 

are not in conflict with current law (for 

example, the prior recordkeeping 

requirements) would remain in effect 

until superseded by the new temporary 

regulations. Further, section 11125 


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37396 Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 

specifies, in paragraph (c), that its 

amendments ‘‘shall not apply to taxes 

imposed for periods before such date 

[July 1, 2008].’’ Therefore, persons who 

failed to pay special (occupational) tax 

when it was in force are not excused 

from their prior liability by the repeal of 

this tax. 

9. Employer identification number. 

Section 6109(a)(1) of the IRC (26 U.S.C. 

6109(a)(1)) states: ‘‘Any person required 

under the authority of this title to make 

a return, statement, or other document 

shall include in such return, statement, 

or other document such identifying 

number as may be prescribed for 

securing proper identification of such 

person.’’ In accordance with this 

provision and subsection (d) of section 

6109, the regulations promulgated by 

this document require inclusion of the 

employer identification number (EIN) 

on registrations for alcohol dealers and 

manufacturers of nonbeverage products. 

This requirement is unchanged from 

prior regulations. 

Section 6723 of the IRC imposes a 

penalty of $50 for each ‘‘failure by any 

person to comply with a specified 

information reporting requirement on or 

before the time prescribed therefor.’’ 

The definition of ‘‘specified information 

reporting requirement’’ in 26 U.S.C. 

6724(d)(3) includes ‘‘any requirement 

contained in the regulations prescribed 

under section 6109 that a person—(i) 

include his TIN [taxpayer identification 

number; see 26 U.S.C. 7701(a)(41)] on 

any return, statement, or other 

document * * *.’’ The requirement, 

imposed by these regulations, to include 

the EIN on the registration is such an 

information reporting requirement. 

Because a person who does not submit 

a registration has failed to include his 

EIN on the registration, as required, the 

$50 penalty of 26 U.S.C. 6723 applies. 

Per 26 U.S.C. 6724(a), this penalty is not 

imposed when there is reasonable cause 

for the failure. These principles are 

reflected in the new temporary 

regulations at 27 CFR 31.14. 

10. Confidentiality of registration 

information. Because registration is 

required under new section 5112 or 

5124 of the IRC, the submitted 

information is subject to the 

confidentiality and disclosure 

requirements of section 6103 of the IRC, 

even though most alcohol beverage 

dealers are no longer TTB taxpayers. 

Accordingly, such registration is held to 

be an ‘‘information return’’ within the 

intent of 26 U.S.C. 6103. This holding 

is reflected in the new temporary 

regulations at 27 CFR 31.15, set forth 

below. 

11. Tobacco. Section 11125 did not 

repeal the special (occupational) tax on 

any tobacco occupations; therefore, 

manufacturers of tobacco products, 

manufacturers of cigarette papers and 

tubes, and tobacco export warehouse 

proprietors must continue to register 

and pay the special (occupational) tax 

every year. 

Discussion of Specific Regulatory 

Changes 

Part 17—Drawback on Taxpaid Distilled 

Spirits Used in Manufacturing 

Nonbeverage Products 

The regulations in 27 CFR part 17 

govern claims for drawback on taxpaid 

distilled spirits that are used in 

manufacturing nonbeverage products. 

Several subparts and sections within 

part 17 are amended in this document 

to conform with the changes made by 

section 11125 of the Act. 

Subpart C Revised. Subpart C has 

been substantially amended by 

removing all sections relating to special 

tax and redesignating the subpart as 

‘‘Subpart C—Registration’’. As noted 

above, effective July 1, 2008, IRC section 

5132 was redesignated as section 5112. 

As redesignated, this section continues 

to require that every person who claims 

drawback for the manufacture of 

nonbeverage products must register 

annually as a nonbeverage domestic 

drawback claimant. Section 5112 does 

not specify either how registration will 

be accomplished or the items of 

information that must be provided as 

part of the registration process. 

However, as discussed above, TTB has 

decided that registration will be 

accomplished when the claimant 

submits a claim for drawback along with 

the supporting information that must be 

submitted with the claim. Thus, the 

filing of the claim will satisfy the 

requirement to register. 

The revised subpart now includes a 

new § 17.21 that explains this 

registration of nonbeverage drawback 

claimants. The revised subpart also 

contains two new sections (§§ 17.22 and 

17.23) relating to the use of, and 

application for, the employer 

identification number. 

Subpart D Removed. Subpart D— 

Special Tax Stamps, consisting of 

§§ 17.51 through 17.93 and covering the 

issuance of special tax stamps, their 

subsequent amendment, and refunds of 

special tax, has been removed and 

reserved. 

Location of Records and Recovery 

Operations. Several sections relating to 

records (§§ 17.161, 17.168, and 17.171) 

have been amended to delete references 

to the premises covered by the special 

tax stamp. 

Miscellaneous Amendments. In 

addition to the above amendments, TTB 

has made several minor amendments to 

the regulations in part 17 by removing 

references to special tax within various 

sections. We also amended several legal 

citations within the regulations to 

reflect the redesignation of certain 

sections of law effective July 1, 2008. 

Finally, § 17.4 is revised to reflect the 

OMB control numbers that were 

assigned when the Alcohol and Tobacco 

Tax and Trade Bureau was created and 

to remove references to sections that 

have been removed from part 17. 

Part 19—Distilled Spirits Plants 

The regulations in 27 CFR part 19 

govern operations at distilled spirits 

plants. Several subparts and sections 

within part 19 have been revised or 

otherwise amended. 

Subpart Ca—Dealer Registration. 

Subpart Ca has been revised in order to 

remove all references to special tax, and 

the subpart heading has been revised to 

read ‘‘Dealer Registration and 

Recordkeeping’’. Effective July 1, 2008, 

every proprietor of a distilled spirits 

plant who sells or offers for sale any 

distilled spirits, wines, or beer must 

register as a dealer. As noted above, TTB 

has determined that proprietors who 

have registered the distilled spirits plant 

under the qualification provisions of 

part 19 will be deemed to have 

registered as wholesale liquor dealers at 

the distilled spirits plant premises. The 

revised subpart Ca includes a new 

§ 19.50 which explains the registration 

process for proprietors. In addition, the 

revised subpart contains a new section 

on amending the registration (§ 19.51) 

and a new section on dealer records 

(§ 19.52). 

Dealer Recordkeeping. Although 

distilled spirits plants proprietors who 

sell, or offer for sale, distilled spirits fit 

for beverage use will be subject to the 

recordkeeping requirements of 26 U.S.C. 

5121, new § 19.52 provides that the 

records required by subpart W of part 19 

will satisfy those requirements, except 

where the distilled spirits plant engages 

in dealer operations not already covered 

by the recordkeeping requirements of 

part 19. 

Alcohol Fuel Plants. In general, 

alcohol fuel plants would not be subject 

to the requirements applicable to 

alcohol beverage dealers, because they 

generally do not produce and sell 

alcohol fit for beverage use. However, an 

alcohol fuel plant that sells distilled 

spirits that have not been rendered unfit 

for beverage use (for transfer in bond to 

a distilled spirits plant or another 

alcohol fuel plant) would meet the 

definition of a ‘‘dealer.’’ Therefore, 


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Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 37397 

§ 19.906 is revised to clarify that such 

an alcohol fuel plant is subject to the 

provisions of revised subpart Ca. 

Miscellaneous Amendments. In 

addition to the above amendments, TTB 

has made several minor amendments to 

the regulations in part 19 to remove 

references to special tax in various 

sections. We also amended several legal 

citations within the regulations to 

reflect the redesignation of certain 

sections of law that went into effect on 

July 1, 2008. For example, a reference to 

‘‘26 U.S.C. 5131–5134’’ in the definition 

of ‘‘alcoholic flavoring material’’ of 

§ 19.11 has been replaced with a 

reference to ‘‘26 U.S.C. 5111–5114’’. 

Part 20—Distribution and Use of 

Denatured Alcohol and Rum 

The regulations in 27 CFR part 20 

govern the distribution and use of 

denatured alcohol and rum. Effective 

July 1, 2008, section 11125(a)(3) of the 

Act repealed 26 U.S.C. 5276, which 

imposed a special tax on dealers and 

users of denatured alcohol and rum. 

Accordingly, in part 20, subpart Ca— 

Special (Occupational) Taxes has been 

removed and reserved. TTB also notes 

in this regard that dealers and users of 

denatured alcohol and rum who operate 

within the requirements of the law and 

regulations, selling denatured products 

for nonbeverage purposes only, are not 

considered to be ‘‘dealers’’ under the 

IRC and therefore will not be required 

to register as such. 

Part 22—Distribution and Use of TaxFree Alcohol 

The regulations in 27 CFR part 22 

govern the distribution and use of taxfree alcohol. As in the case of part 20 

discussed above, the repeal of 26 U.S.C. 

5276, which imposed a special tax on 

users of tax-free alcohol, necessitates the 

removal from part 22 of subpart Ca— 

Special (Occupational) Taxes. Similarly, 

users of tax-free alcohol are generally 

not considered to be ‘‘dealers’’ under 

the IRC and therefore will not be 

required to register as such. However, 

this document also amends § 22.102 to 

provide that any person who sells taxfree alcohol will become a dealer and 

therefore will be subject to the 

provisions of part 31 (since tax-free 

alcohol is fit for beverage use). 

Part 24—Wine 

The regulations in 27 CFR part 24 

govern operations at bonded wine 

premises and taxpaid wine bottling 

houses. 

Dealer Registration. As a result of the 

changes to the IRC made by section 

11125 of the Act, effective July 1, 2008, 

every proprietor of bonded wine 

premises and every proprietor of a 

taxpaid wine bottling house who sells or 

offers for sale any distilled spirits, 

wines, or beer must register as a dealer. 

As noted above, TTB has determined 

that proprietors who have qualified as a 

bonded wine premises or taxpaid wine 

bottling house under part 24 will be 

deemed to have registered as a 

wholesale liquor dealer at those 

premises. Section 24.52 is revised to 

explain the registration process for these 

proprietors. 

Dealer Recordkeeping. Although 

proprietors of wine premises who sell 

beverage wine (or who offer it for sale) 

will be subject to the recordkeeping 

requirements of 26 U.S.C. 5121, § 24.54 

is revised to provide that the records 

required by subpart O of part 24 will 

satisfy these requirements, except where 

the bonded wine cellar or taxpaid wine 

bottling house engages in dealer 

operations not covered by the 

recordkeeping requirements of part 24. 

Miscellaneous Amendments to Part 

24. Several sections in part 24 relating 

to special tax have been removed. In 

addition, several sections have been 

amended by removing all reference to 

special tax and by replacing those 

references, where appropriate, with 

provisions covering the registration of 

proprietors as dealers. TTB notes that 

with regard to § 24.146, which covers 

bonds, although the specific reference to 

special tax is removed, bonds will still 

cover liability for unpaid special tax 

that was due prior to the repeal. Finally, 

§ 24.53 is revised to cover amendment 

of the dealer registration. 

Part 25—Beer 

The regulations in 27 CFR part 25 

govern operations at breweries. Subpart 

I and several sections in part 25 have 

been amended. 

Subpart I—Dealer Registration. 

Subpart I has been revised in order to 

remove all sections relating to special 

tax, and the subpart heading has been 

revised to read ‘‘Subpart I—Dealer 

Registration and Recordkeeping.’’ As a 

result of the changes to the IRC made by 

section 11125 of the Act, effective July 

1, 2008, every proprietor of a brewery 

who sells or offers for sale any distilled 

spirits, wines, or beer must register as a 

dealer. As noted above, TTB has 

determined that registration of the 

brewery premises will be accomplished 

when the proprietor files a Brewer’s 

Notice, Form 5130.10, and TTB 

approves the notice. The revised subpart 

includes § 25.112, which explains the 

registration process for proprietors. In 

addition, the revised subpart contains a 

section on amending the registration 

(§ 25.113), which provides that 

amendments to the brewer’s notice 

serve as amended dealer registrations, 

and a section on dealer records 

(§ 25.114—see the description of this 

section immediately below). 

Dealer Recordkeeping. Although 

brewers who sell beverage beer (or offer 

it for sale) will be subject to the 

recordkeeping requirements of 26 U.S.C. 

5121, the records required by subpart U 

of part 25 provide similar information. 

Therefore, § 25.114 provides that the 

records of subpart U will satisfy the 

requirements of section 5121 of the IRC, 

except where the brewer engages in 

dealer operations not covered by the 

recordkeeping requirements of part 25. 

Employer Identification Number. 

Section 25.168, which concerns 

employer identification numbers, has 

been amended to revise a cross 

reference to instructions regarding the 

application for an employer 

identification number. Those 

instructions were formerly in subpart I 

and addressed the preparation of the 

special tax return. Since subpart I now 

deals with dealer registration, those 

instructions have been removed from 

that subpart and added as a new 

§ 25.169, and the cross reference in 

§ 25.168 has been revised accordingly. 

Miscellaneous Amendments. In 

addition to the above amendments, TTB 

has made several minor amendments to 

the part 25 regulations by removing 

references to special tax in various 

sections. 

Part 26—Liquors and Articles From 

Puerto Rico and the Virgin Islands 

The regulations in 27 CFR part 26 

govern operations of persons bringing 

alcohol beverages and certain other 

alcoholic products to the United States 

from Puerto Rico and the Virgin Islands. 

These persons include brewers, 

proprietors of distilled spirits plants and 

bonded wine cellars, dealers in 

denatured alcohol, and nonbeverage 

drawback claimants. Accordingly, 

several sections in part 26 are affected. 

Industrial Alcohol. Since the special 

tax provisions on tax-free alcohol users, 

and on denatured spirits users and 

dealers, are repealed, § 26.36 is 

amended by removing references to that 

tax, and § 26.47 is removed. Because 

tax-free alcohol is fit for beverage use, 

persons shipping such alcohol to the 

United States for sale are subject to 

registration as alcohol beverage dealers; 

however, such registration will be 

accomplished by obtaining a distilled 

spirits plant permit and complying with 

the other requirements of 27 CFR part 

19. Section 26.36(b) is amended 

accordingly. Section 26.46, which 

relates only to special (occupational) tax 


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37398 Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 

on distilled spirits plant proprietors, is 

removed. 

Nonbeverage drawback claimant 

registration. Sections 26.171 and 26.173 

(Puerto Rico), and §§ 26.307 and 26.309 

(Virgin Islands), are revised or otherwise 

amended to replace references to the 

special tax for nonbeverage drawback 

claimants with a discussion of the new 

registration requirement for claimants 

similar to the discussion in part 17 

above. 

Dealer registration. In §§ 26.44 and 

26.45 (Puerto Rico) and §§ 26.210 and 

26.211 (Virgin Islands), references to the 

special tax registration and return for 

alcohol occupations are changed to refer 

to dealer registration and recordkeeping. 

Miscellaneous Amendments. We 

changed a legal citation within the 

definition of ‘‘eligible flavors’’ and 

several informational citations to reflect 

the redesignation of certain sections of 

law affected by section 11125 of the Act. 

We made some minor technical 

amendments in §§ 26.173(a) and 

26.309(a) relating to the description of 

the drawback rate and the procedure for 

filing drawback claims. In §§ 26.173(c) 

and 26.309(c), we replaced the 

requirement for entering the control 

number on the special tax stamp with a 

requirement for entering the claimant’s 

employer identification number, since 

the special tax return (which is no 

longer filed by these claimants) formerly 

supplied TTB with that information. 

Part 27—Importation of Distilled Spirits, 

Wines, and Beer 

The regulations in 27 CFR part 27 

govern operations of persons importing 

distilled spirits, wine, and beer into the 

United States. Several sections of 

regulations within part 27 have been 

amended. 

Dealer registration. In §§ 27.30 and 

27.31, references to the special tax 

registration and return for alcohol 

occupations are changed to refer to 

dealer registration. 

Miscellaneous Amendments. We also 

changed a legal citation within the 

definition of ‘‘eligible flavors’’ and 

several informational citations to reflect 

the redesignation of certain sections of 

law affected by section 11125 of the Act. 

Part 28—Exportation of Alcohol 

The regulations in 27 CFR part 28 

govern operations by persons exporting 

distilled spirits, wines, and beer to 

foreign countries and possessions of the 

United States. Section 28.212, dealing 

with persons authorized to export wine 

with benefit of drawback, is revised to 

replace the reference to payment of 

special tax as a wholesale liquor dealer 

with a reference to registration as such 

a dealer under part 31. Also, the 

authority citation for part 28 is revised 

to reflect the repeal or redesignation of 

certain sections of law by section 11125 

of the Act. 

Part 31—Alcohol Beverage Dealers 

The regulations in 27 CFR part 31 

govern the operations of alcohol 

beverage dealers. The principal subject 

matter of part 31 historically has been 

the special (occupational) tax. The 

elimination of that tax makes it 

necessary to revise the entire part. In 

general, we have attempted in this 

document to retain as much of the old 

part 31 as can be adapted to the IRC 

provisions as amended by section 11125 

of the Act. Nevertheless, the new part 31 

set forth in this document is 

significantly shorter. References to the 

special (occupational) tax are removed, 

the part is reorganized, conforming 

changes are made to cross references, 

and OMB information collection 

approval numbers are updated. Several 

new sections are added to clarify 

producers’ status as dealers (§ 31.48), to 

describe situations where registration is 

required (§§ 31.137 and 31.138), to 

clarify liability for special 

(occupational) tax for periods prior to its 

elimination (§ 31.234), and to set forth 

penalty and disclosure provisions 

(§§ 31.14 and 31.15). In addition, 

sections concerning preparation of the 

special tax return are redrafted to cover 

preparation of the dealer registration 

form, and sections concerning 

exemption from dealer’s special tax for 

persons who registered as producers are 

removed. 

Sections that formerly clarified 

liability for special tax have been 

revised to clarify when persons are 

considered to be dealers subject to the 

regulations. Some of these clarifications 

in part 31 were based on specific 

statutory exemptions formerly 

contained in 26 U.S.C. 5113 and 5123. 

Although these two statutory provisions 

were repealed by section 11125 of the 

Act, we will continue to apply those 

exemptions as administrative 

interpretations. 

As noted above, the exemption in 

repealed section 5113 of the IRC for 

proprietors of controlled premises 

(distilled spirits plants, bonded wine 

cellars, taxpaid wine bottling houses, 

and breweries) has been retained in 

effect by allowing qualification 

documents and records required by part 

19, 24, or 25, as applicable, to satisfy the 

alcohol dealer registration and 

recordkeeping requirements (§§ 31.48, 

31.154). Other exemptions and 

exceptions in repealed section 5113 that 

are retained in the revised part 31 texts 

pertain to: States, political subdivisions, 

etc. (§§ 31.43, 31.153); creditors, 

fiduciaries, and officers of court 

(§§ 31.62(a), (b) and (c)); retiring 

partners or representatives of deceased 

partners (§ 31.62(d)); persons returning 

liquors for credit, refund, or exchange 

(§ 31.67); dealers making sales on 

purchaser dealers’ premises (§§ 31.52 

and 31.53); retail dealers selling in 

liquidation (§ 31.66); and retail dealers 

selling to limited retail dealers 

(§ 31.55(b)). 

Exemptions and exceptions contained 

in repealed section 5123 of the IRC that 

are retained in the revised part 31 texts 

pertain to: Wholesale dealers making 

retail sales (§ 31.51); retail dealers ‘‘at 

large’’ (§ 31.94); dealers on trains, 

aircraft, or vessels (§§ 31.91 through 

31.93); and liquor stores operated by 

States, political subdivisions, etc. 

(§§ 31.43, 31.153). The exemption from 

additional special tax when a wholesale 

or retail dealer in beer begins to sell 

other liquors, which was formerly 

provided for in repealed sections 

5113(g) and 5123(c) of the IRC, is not 

retained in the revised part 31 texts for 

registration purposes, because section 

11125 of the Act requires a dealer to 

register his or her ‘‘trade or business’’ 

(see new § 31.75). 

The table below shows the source of, 

and extent of the change reflected in, 

each section in revised part 31: 

New section Source 

(action) 

31.0 ........................... 31.1 (P) 

Subpart A—General Provisions 

31.1 ........................... 31.11 (P) 

31.2 ........................... 31.2 (O) 

31.3 ........................... 31.3 (P) 

31.4 ........................... 31.4 (P) 

Subpart B—Administrative Provisions 

31.11 ......................... 31.41 (P) 

31.12 ......................... 31.42 (O) 

31.13 ......................... 31.43 (O) 

31.14 ......................... 31.109, 31.111 (C) 

31.15 ......................... 26 U.S.C. 6103 (N) 

Subpart C—Activities Subject to this Part 

31.21 ......................... 31.21 (P) 

31.22 ......................... 31.22 (O) 

Dealers Classified 

31.31 ......................... 31.23 (P) 

31.32 ......................... 31.24 (P) 

31.33 ......................... 31.25 (P) 

31.34 ......................... 31.26 (P) 

31.35 ......................... 31.27 (O) 

31.36 ......................... 31.28 (O) 


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New section Source 

(action) 

Certain Organizations, Agencies, and Persons 

31.41 ......................... 31.29 (P) 

31.42 ......................... 31.30 (P) 

31.43 ......................... 31.31 (P) 

31.44 ......................... 31.32 (P) 

31.45 ......................... 31.33 (P) 

31.46 ......................... 31.34 (P) 

31.47 ......................... 31.35 (P) 

31.48 ......................... (N) 

Subpart D—Exemptions and Exceptions 

Persons Exempt From Registration and/or 

Recordkeeping 

31.51 ......................... 31.23(c)(1) and 

31.25(c)(1) (C) 

31.52 ......................... 31.185 (P) 

31.53 ......................... 31.186 (P) 

31.54 ......................... 31.187 (P) 

31.55 ......................... 31.187a (P) 

Persons Who Are Not Dealers in Liquors or 

Beer 

31.61 ......................... 31.181 (C) 

31.62 ......................... 31.188 (P) 

31.63 ......................... 31.189 (P) 

31.64 ......................... 31.190 (P) 

31.65 ......................... 31.191 (P) 

31.66 ......................... 31.192 (O) 

31.67 ......................... 31.193 (P) 

Subpart E—Places Subject to Registration 

31.71 ......................... 31.51 (P) 

31.72 ......................... 31.52 (O) 

31.73 ......................... 31.53 (P) 

31.74 ......................... 31.54 (P) 

31.75 ......................... 31.72 (C) 

Sales in Two or More Areas on the Same 

Premises 

31.81 ......................... 31.57 (P) 

31.82 ......................... 31.58 (P) 

31.83 ......................... 31.59 (P) 

Sales in Multiple Locations 

31.91 ......................... 31.124 (P) 

31.92 ......................... 31.125 (P) 

31.93 ......................... 31.126 (P) 

31.94 ......................... 31.127 (P) 

31.95 ......................... 31.55 (P) 

31.96 ......................... 31.56 (P) 

Subpart F—Partnerships 

31.101 ....................... 31.91 (P) 

31.102 ....................... 31.92 (P) 

31.103 ....................... 31.93 (P) 

31.104 ....................... 31.94 (P) 

Subpart G—Registration Form, TTB F 

5630.5d 

31.111 ....................... 31.102 (C) 

31.112 ....................... 31.106(c) (P) 

31.113 ....................... 31.104a (P) 

31.114 ....................... 31.106 (P) 

31.115 ....................... 31.106a (P) 

New section Source 

(action) 

31.116 ....................... 31.107 (P) 

Subpart H—Changes in Registration 

Information 

Changes Requiring Registration as a New 

Business 

31.121 ....................... 31.161 (P) 

31.122 ....................... 31.162 (P) 

31.123 ....................... 31.163 (P) 

31.124 ....................... 31.164 (P) 

31.125 ....................... (N) 

Other Changes 

31.131 ....................... 31.151 (C) 

31.132 ....................... 31.165 (P) 

31.133 ....................... 31.165 (C) 

31.134 ....................... 31.166 (P) 

31.135 ....................... 31.167 (P) 

31.136 ....................... 31.168 (P) 

31.137 ....................... (N) 

31.138 ....................... (N) 

Subpart I—Restrictions Relating to 

Purchases of Distilled Spirits 

31.141 ....................... 31.211 (P) 

Subpart J—Records and Reports 

Wholesale Dealers’ Records and Reports 

31.151 ....................... 31.221 (P) 

31.152 ....................... 31.222 (P) 

31.153 ....................... 31.223 (P) 

31.154 ....................... 31.224 (P) 

31.155 ....................... 31.225 (P) 

31.156 ....................... 31.226 (P) 

31.157 ....................... 31.227 (P) 

31.158 ....................... 31.228 (P) 

31.159 ....................... 31.229 (O) 

31.160 ....................... 31.230 (O) 

31.161 ....................... 31.231 (P) 

31.162 ....................... 31.232 (P) 

31.163 ....................... 31.233 (P) 

Filing of Wholesale Dealer’s Records and 

Reports 

31.171 ....................... 31.235 (P) 

31.172 ....................... 31.236 (P) 

Retail Dealer’s Records 

31.181 ....................... 31.234 (O) 

Retention of Records and Files 

31.191 ....................... 31.237 (P) 

31.192 ....................... 31.238 (P) 

Subpart K—Reuse and Possession of Used 

Liquor Bottles 

31.201 ....................... 31.261 (N) 

31.202 ....................... 31.262 (P) 

31.203 ....................... 31.263 (N) 

31.204 ....................... 31.264 (P) 

Subpart L—Packaging of Alcohol for 

Industrial Uses 

31.211 ....................... 31.271 (P) 

New section Source 

(action) 

31.212 ....................... 31.272 (O) 

Subpart M—Distilled Spirits for Export with 

Benefit of Drawback 

31.221 ....................... 31.281 (P) 

31.223 ....................... 31.283 (P) 

Subpart N—Miscellaneous 

31.231 ....................... 31.291 (O) 

31.232 ....................... 31.292 (O) 

31.233 ....................... 31.293 (P) 

31.234 ....................... (N) 

* Actions: (C) = Complete revision; 

(N) = New section; (O) = No revision; 

(P) = Partial revision. 

Part 40—Manufacture of Tobacco 

Products and Cigarette Papers and 

Tubes 

The regulations in 27 CFR part 40 

govern manufacturers of tobacco 

products and cigarette papers and tubes. 

Although section 11125 of the Act did 

not do away with the special tax on 

tobacco occupations, TTB believes that 

it would be appropriate to have the 

special tax provisions applicable to 

tobacco products and cigarette papers 

and tubes in one place, similar to the 

approach taken in revised part 31 for 

alcohol beverage dealer registration. 

Accordingly, in this document we have 

removed and reserved a number of part 

40 sections and transferred their 

contents to a new subpart D in part 46, 

which contains miscellaneous 

regulations relating to tobacco products 

and cigarette papers and tubes. 

In addition to the transfer of special 

tax provisions to part 46, this document 

includes a number of other changes to 

the part 40 texts. A definition of 

‘‘special tax’’ is added to § 40.11 to 

facilitate its use in the part 40 texts in 

place of ‘‘special (occupational) tax.’’ 

Section 40.31 is amended by removing 

the 1988 transition rule in paragraph (b), 

clarifying liability for special tax under 

a partnership, and updating the 

informational citation at the end of the 

section. The informational citation at 

the end of § 40.371 is also amended to 

reflect the redesignation of certain IRC 

sections by section 11125 of the Act. 

Finally, §§ 40.33 and 40.373 are revised 

to serve as cross references to the 

special tax provisions of part 46. 

Part 44—Exportation of Tobacco 

Products and Cigarette Papers and 

Tubes, Without Payment of Tax, or With 

Drawback of Tax 

The regulations in 27 CFR part 44 

govern exportation of tobacco products 

and cigarette papers and tubes. For the 

same reason stated for part 40 above, we 


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have transferred the part 44 special tax 

provisions to new subpart D of part 46. 

For the same reason stated for § 40.11 

above, a definition of ‘‘special tax’’ is 

added to § 44.11. In addition, § 44.31 is 

amended by removing the superseded 

1988 transition rule in paragraph (b), 

clarifying liability for special tax under 

a partnership, and updating the 

informational citation at the end to 

reflect the redesignation of certain IRC 

sections by section 11125 of the Act. 

Finally, § 44.33 is revised to direct users 

to part 46 for additional provisions 

concerning special tax. 

Part 46—Miscellaneous Regulations 

Relating to Tobacco Products and 

Cigarette Papers and Tubes 

As discussed above, we are adding a 

new subpart D to 27 CFR part 46 to set 

forth provisions related to special tax on 

tobacco product and related 

occupations. Certain sections are 

consolidated from parts 40 and 44, and 

others are adopted from the liquor 

dealer regulations in part 31. The 

regulations adopted for part 46 from 

part 31 reflect special tax policy 

positions developed through rulemaking 

during the time we administered the 

dealer’s tax. Because we would be 

guided by these positions if similar 

questions arose concerning regulated 

entities in the tobacco product and 

related occupations, we are adopting 

them for part 46 purposes to preserve 

the precedents that existed. The table 

below shows the source of each new 

subpart D section: 

New section number Source 

46.91 ......................... new 

46.92 ......................... new 

46.93 ......................... 31.57 and 31.71 

46.94 ......................... 31.4, 31.123 

46.95 ......................... 31.91 

Payment of Special Tax 

46.101 ....................... 40.33, 40.373, and 

44.33 

46.102 ....................... 40.34 and 44.34 

46.103 ....................... 31.104 

46.104 ....................... 31.105 

46.105 ....................... 31.138 

46.106 ....................... 31.122 

46.107 ....................... 31.109 

46.108 ....................... 31.110 

46.109 ....................... 31.111 

Special Tax Stamps 

46.116 ....................... 40.35, 40.374, and 

44.35 

46.117 ....................... 31.132 

46.118 ....................... 31.133 

46.119 ....................... 31.153 

46.120 ....................... 31.134 

46.121 ....................... 31.135 

New section number Source 

Changes in Businesses Holding Special 

Tax Stamps 

46.126 ....................... 40.36, 40.375, 44.36 

and 31.151–31.152 

46.127 ....................... 40.36, 40.375, 44.36, 

17.77, and 31.163 

Stamps for Incorrect Period or Incorrect 

Liability 

46.131 ....................... 31.136 

46.132 ....................... 31.137–139 

Abatement or Refund of Special Taxes 

46.136 ....................... 31.201 

46.137 ....................... 31.202 

46.138 ....................... 31.203 

We did not adopt those provisions of 

part 31 that dealt with exemptions and 

exceptions from liquor dealers tax 

because we do not believe they are 

relevant to the special tax on tobacco 

product and related occupations. 

Part 70—Procedure and Administration 

Part 70 of 27 CFR sets forth the 

procedural and administrative rules of 

the Alcohol and Tobacco Tax and Trade 

Bureau. We have amended various 

sections within part 70 to change 

references to special tax on alcohol 

occupations to references to dealer 

registration or claimant registration 

while retaining or adding references to 

special tax on tobacco occupations. We 

have also removed references to OMB 

approval after §§ 70.411, 70.412, and 

70.414, and 70.431, because those 

sections are part of the Statement of 

Procedural Rules. These sections do not 

impose a recordkeeping requirement but 

rather only point to regulatory 

provisions that do impose a 

recordkeeping requirement. Finally, no 

changes were made to the title of 

subpart D or to §§ 70.61, 70.64, 70.433, 

70.441, 70.442, or 70.448, because they 

refer to occupational taxes that are still 

in effect. 

Regulatory Flexibility Act 

We certify that this temporary rule 

will not have a significant economic 

impact on a substantial number of small 

entities. Accordingly, a regulatory 

flexibility analysis is not required. The 

relevant collections of information 

derive directly from the Internal 

Revenue Code of 1986, as amended, and 

the regulations in this rule concerning 

these collections merely implement the 

statutory requirements. Likewise, any 

secondary or incidental effects, and any 

reporting, recordkeeping, or other 

compliance burdens flow directly from 

the statute. Pursuant to 26 U.S.C. 

7805(f), this temporary regulation will 

be submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small businesses. 

Paperwork Reduction Act 

TTB has provided estimates of the 

burdens that the collections of 

information contained in these 

regulations impose, and these estimated 

burdens have been reviewed and 

approved by the Office of Management 

and Budget (OMB) in accordance with 

the Paperwork Reduction Act of 1995 

(44 U.S.C. 3507) and assigned control 

numbers 1513–0088, 1513–0112, and 

1513–0113. Finally, TTB has provided 

the public with notice of these 

collections of information and solicited 

comments on them, with the most 

recent notices being published in the 

Federal Register on May 2, 2006 (71 FR 

25889) for OMB No. 1513–0088, 

November 21, 2007 (72 FR 65646) for 

OMB No. 1513–0113, and September 4, 

2008 (73 FR 51699) for OMB No. 1513– 

0112. To date, TTB has not received any 

comments in response to these notices. 

Under the Paperwork Reduction Act 

of 1995, 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 OMB control 

number. 

Comments concerning suggestions for 

reducing the burden of the collections of 

information in this document should be 

directed to Mary A. Wood, Alcohol and 

Tobacco Tax and Trade Bureau, at any 

of these addresses: 

• P.O. Box 14412, Washington, DC 

20044–4412; 

• 202–927–8525 (facsimile); or 

• formcomments@ttb.gov (e-mail). 

Executive Order 12866 

This is not a significant regulatory 

action as defined in E.O. 12866. 

Therefore, it requires no regulatory 

assessment. 

Inapplicability of Prior Notice and 

Comment and Delayed Effective Date 

Procedures 

Because this document merely 

implements a law which was effective 

on July 1, 2008, and because immediate 

guidance is necessary to implement the 

provisions of the law, it is found to be 

impracticable to issue this Treasury 

decision with notice and public 

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

Pursuant to the provisions of 5 U.S.C. 

553(d)(1), (d)(2), and (d)(3), we are 

issuing these regulations without a 

delayed effective date. These temporary 

regulations recognize an exemption 

within the meaning of section 553(d)(1) 


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and (d)(2) because they lessen burdens 

by recognizing previously filed 

documents as registration and recognize 

longstanding agency interpretations in 

previously published regulations, 

respectively. Furthermore, TTB has 

determined that good cause exists to 

provide industry members with 

immediate guidance on their utilization 

of registration procedures in accordance 

with section 553(d)(3). 

Drafting Information 

Steve Simon, Daniel Hiland, and 

Marjorie Ruhf of the Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, drafted this 

document. Other personnel also 

participated in its development. 

List of Subjects 

27 CFR Part 17 

Administrative practice and 

procedure, Claims, Cosmetics, Customs 

duties and inspection, Drugs, Excise 

taxes, Exports, Imports, Liquors, 

Packaging and containers, Puerto Rico, 

Reporting and recordkeeping 

requirements, Spices and flavorings, 

Surety bonds, Virgin Islands. 

27 CFR Part 19 

Administrative practice and 

procedures, Caribbean Basin Initiative, 

Claims, Electronic funds transfers, 

Excise taxes, Exports, Gasohol, Imports, 

Labeling, Liquors, Packaging and 

containers, Puerto Rico, Reporting and 

recordkeeping requirements, Research, 

Security measures, Surety bonds, 

Vinegar, Virgin Islands, Warehouses. 

27 CFR Part 20 

Alcohol and alcoholic beverages, 

Claims, Cosmetics, Excise taxes, 

Labeling, Packaging and containers, 

Penalties, Reporting and recordkeeping 

requirements, Surety bonds. 

27 CFR Part 22 

Administrative practice and 

procedure, Alcohol and alcoholic 

beverages, Excise taxes, Reporting and 

recordkeeping requirements, Surety 

bonds. 

27 CFR Part 24 

Administrative practice and 

procedure, Claims, Electronic fund 

transfers, Excise taxes, Exports, Food 

additives, Fruit juices, Labeling, 

Liquors, Packaging and containers, 

Reporting and recordkeeping 

requirements, Research, Scientific 

equipment, Spices and flavoring, Surety 

bonds, Vinegar, Warehouses, Wine. 

27 CFR Part 25 

Administrative practice and 

procedure, Beer, Claims, Electronic 

funds transfers, Excise taxes, Exports, 

Labeling, Packaging and containers, 

Reporting and recordkeeping 

requirements, Research, Surety bonds. 

27 CFR Part 26 

Administrative practice and 

procedure, Alcohol and alcoholic 

beverages, Caribbean Basin Initiative, 

Claims, Customs duties and inspection, 

Electronic funds transfers, Excise taxes, 

Packaging and containers, Puerto Rico, 

Reporting and recordkeeping 

requirements, Surety bonds, Virgin 

Islands, Warehouses. 

27 CFR Part 27 

Alcohol and alcoholic beverages, 

Beer, Cosmetics, Customs duties and 

inspection, Electronic funds transfers, 

Excise taxes, Imports, Labeling, Liquors, 

Packaging and containers, Reporting 

and recordkeeping requirements, Wine. 

27 CFR Part 28 

Aircraft, Alcohol and alcoholic 

beverages, Armed forces, Beer, Claims, 

Excise taxes, Exports, Foreign trade 

zones, Labeling, Liquors, Packaging and 

containers, Reporting and recordkeeping 

requirements, Surety bonds, Vessels, 

Warehouses, Wine. 

27 CFR Part 31 

Alcohol and alcoholic beverages, 

Excise taxes, Exports, Packaging and 

containers, Reporting and recordkeeping 

requirements. 

27 CFR Part 40 

Cigars and cigarettes, Claims, 

Electronic funds transfers, Excise taxes, 

Imports, Labeling, Packaging and 

containers, Reporting and recordkeeping 

requirements, Surety bonds, Tobacco. 

27 CFR Part 44 

Aircraft, Armed forces, Cigars and 

cigarettes, Claims, Customs duties and 

inspection, Excise taxes, Exports, 

Foreign trade zones, Labeling, Packaging 

and containers, Reporting and 

recordkeeping requirements, Surety 

bonds, Tobacco, Vessels, Warehouses. 

27 CFR Part 46 

Administrative practice and 

procedure, Cigars and cigarettes, Claims, 

Excise taxes, Packaging and containers, 

Penalties, Reporting and recordkeeping 

requirements, Seizures and forfeitures, 

Surety bonds, Tobacco. 

27 CFR Part 70 

Administrative practice and 

procedure, Claims, Excise taxes, 

Freedom of information, Law 

enforcement, Penalties, Reporting and 

recordkeeping requirements, Surety 

bonds. 

Authority and Issuance 

■ For the reasons discussed in the 

preamble, TTB amends 27 CFR parts 17, 

19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 

46, and 70 as set forth below: 

PART 17—DRAWBACK ON TAXPAID 

DISTILLED SPIRITS USED IN 

MANUFACTURING NONBEVERAGE 

PRODUCTS 

■ 1. The authority citation for part 17 is 

revised to read as follows: 

Authority: 26 U.S.C. 5010, 5111–5114, 

5123, 5206, 5273, 6065, 6091, 6109, 7213, 

7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306. 

§ 17.1 [Amended] 

■ 2. Section 17.1 is amended by 

removing the words, ‘‘the payment of 

special (occupational) taxes in order to 

be eligible to receive drawback;’’. 

■ 3. Section 17.4 is revised to read as 

follows: 

§ 17.4 OMB control numbers assigned 

under the Paperwork Reduction Act. 

(a) Purpose. This section collects and 

displays the control numbers assigned 

to the information collection 

requirements of this part by the Office 

of Management and Budget under the 

Paperwork Reduction Act of 1995. 

(b) OMB control number 1513–0013. 

OMB control number 1513–0013 is 

assigned to the following section in this 

part: § 17.106. 

(c) OMB control number 1513–0014. 

OMB control number 1513–0014 is 

assigned to the following sections in 

this part: §§ 17.6 and 17.105. 

(d) OMB control number 1513–0021. 

OMB control number 1513–0021 is 

assigned to the following sections in 

this part: §§ 17.121, 17.126, 17.127, 

17.132, and 17.136. 

(e) OMB control number 1513–0130. 

OMB control number 1513–0130 is 

assigned to the following sections in 

this part: §§ 17.142, 17.145, and 17.146. 

(f) OMB control number 1513–0036. 

OMB control number 1513–0036 is 

assigned to the following section in this 

part: § 17.6. 

(g) OMB control number 1513–0072. 

OMB control number 1513–0072 is 

assigned to the following sections in 

this part: §§ 17.3, 17.111, 17.112, 

17.122, 17.123, 17.124, 17.125, 17.143, 

17.168(a), 17.183, and 17.187. 

(h) OMB control number 1513–0073. 

OMB control number 1513–0073 is 

assigned to the following sections in 

this part: §§ 17.161, 17.162, 17.163, 


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17.164, 17.165, 17.166, 17.167, 

17.168(b), 17.169, 17.170, 17.182, and 

17.186. 

(i) OMB control number 1513–0088. 

OMB control number 1513–0088 is 

assigned to the following section in this 

part: § 17.23. 

(j) OMB control number 1513–0098. 

OMB control number 1513–0098 is 

assigned to the following sections in 

this part: §§ 17.147 and 17.182. 

§ 17.11 [Amended] 

■ 4. Section 17.11 is amended by 

removing the definition of ‘‘Special 

tax’’. 

■ 5. Subpart C is revised to read as 

follows: 

Subpart C—Registration 

Sec. 

17.21 Registration. 

17.22 Employer identification number. 

17.23 Application for employer 

identification number. 

Subpart C—Registration 

§ 17.21 Registration. 

Every person claiming drawback 

under this part must register annually as 

a nonbeverage domestic drawback 

claimant. Registration will be 

accomplished when the claimant 

submits the first drawback claim for 

each year along with the supporting 

data required under subpart G of this 

part. No registration is required for any 

year in which the claimant does not file 

a claim for drawback. 

§ 17.22 Employer identification number. 

Every person who claims drawback 

under this part must enter on each claim 

for drawback filed on TTB Form 5620.8, 

Claim—Alcohol, Tobacco, and Firearms 

Taxes, the employer identification 

number (EIN) assigned by the Internal 

Revenue Service. 

(26 U.S.C. 6109, 6723) 

§ 17.23 Application for employer 

identification number. 

(a) Use Form SS–4. A claimant must 

obtain an employer identification 

number (EIN) by filing an application 

with the Internal Revenue Service (IRS) 

on IRS Form SS–4. Form SS–4 is 

available from the local IRS Service 

Center, from the IRS District Director, 

the IRS Web site at http://www.irs.gov or 

from the TTB National Revenue Center. 

The claimant must file this form with 

IRS in accordance with the instructions 

on the form. 

(b) One EIN only. Each claimant must 

obtain and use only one EIN, regardless 

of the number of places of business for 

which a claim is filed under this part. 

(26 U.S.C. 6109) 

Subpart D—[Removed and Reserved] 

■ 6. Subpart D is removed and reserved. 

■ 7. Section 17.101 is revised to read as 

follows: 

§ 17.101 Bonds in general. 

(a) Requirement. A bond must be filed 

by each person claiming drawback on a 

monthly basis. Persons who claim 

drawback on a quarterly basis are not 

required to file bonds. The bond 

requirement of this part may be satisfied 

either by a bond obtained from an 

authorized surety company or by 

deposit of collateral security. 

(b) Bond form. The bond must be 

prepared and executed on TTB Form 

5154.3, Bond for Drawback Under 26 

U.S.C. 5111, in accordance with the 

provisions of this part and the 

instructions printed on the form. 

(c) Bonds executed before July 1, 

2008. On and after July 1, 2008, a 

reference to 26 U.S.C. 5131–5134 in a 

bond executed on TTB Form 5154.3, 

Bond for Drawback Under 26 U.S.C. 

5131, shall be understood to refer to the 

sections redesignated as 26 U.S.C. 5111– 

5114 by section 11125 of Public Law 

109–59. 

(d) Approval. The appropriate TTB 

officer is authorized to approve all 

bonds and consents of surety required 

by this part. 

§ 17.134 [Amended] 

■ 8. In § 17.134, the first sentence is 

amended by removing the reference ‘‘26 

U.S.C. 5131’’ and adding, in its place, 

the reference ‘‘26 U.S.C. 5111’’. 

§ 17.141 [Amended] 

■ 9. Section 17.141 is amended: 

■ a. In the second sentence, by removing 

the reference ‘‘26 U.S.C. 5134’’ and 

adding, in its place, the reference ‘‘26 

U.S.C. 5114’’; and 

■ b. By removing the last sentence. 

§ 17.146 [Amended] 

■ 10. In § 17.146, the introductory text 

is amended by removing the words ‘‘set 

forth’’ and adding, in their place, the 

word ‘‘show’’, and paragraph (a) is 

removed and reserved. 

§ 17.148 [Amended] 

■ 11. Section 17.148 is amended: 

■ a. In paragraph (a), by removing the 

reference ‘‘26 U.S.C. 5131–5134’’ and 

adding, in its place, the reference ‘‘26 

U.S.C. 5111–5114’’; 

■ b. In the first sentence of paragraph 

(b), by removing the citation ‘‘26 U.S.C. 

5131–5134’’ and adding in its place the 

citation ‘‘26 U.S.C 5111–5114’’; and 

■ c. At the end of the section, by 

removing the informational reference 

‘‘(Sec. 452, Pub. L. 98–369, 98 Stat. 819 

(26 U.S.C.5134(c))’’ and adding, in its 

place, the informational reference ‘‘(26 

U.S.C. 5114(c))’’. 

■ 12. Section 17.161 is amended by 

revising the last sentence to read as 

follows: 

§ 17.161 General. 

* * * The records shall be kept 

complete and current at all times and 

shall be retained by the manufacturer at 

the place where the taxpaid distilled 

spirits are used in the manufacture or 

production of nonbeverage products, for 

the period prescribed in § 17.170. 

■ 13. In § 17.168, the last sentence of 

paragraph (a) is revised to read as 

follows: 

§ 17.168 Recovered spirits. 

(a) * * * Recovery operations may 

only be conducted on the premises 

where the recovered spirits were used in 

the manufacture or production of 

nonbeverage or intermediate products. 

* * * * * 

■ 14. Section 17.171 is amended: 

■ a. By revising the first sentence to read 

as set forth below. 

■ b. At the end of the section, by 

removing the informational reference 

‘‘(Sec. 5133, 68A Stat. 623 (26 U.S.C. 

5133); sec. 201, Pub. L. 85–859, 72 Stat. 

1348 (26 U.S.C. 5146))’’ and adding, in 

its place, the informational reference 

‘‘(26 U.S.C. 5113, 5123)’’. 

§ 17.171 Inspection of records. 

All of the records, forms, and 

documents required to be retained by 

§ 17.170 shall be kept at the premises 

where distilled spirits are used in the 

manufacture or production of 

nonbeverage products and shall be 

readily available during the 

manufacturer’s regular business hours 

for examination and copying by the 

appropriate TTB officers. * * * 

§ 17.181 [Amended] 

■ 15. In § 17.181, the last sentence is 

amended by removing the reference ‘‘26 

U.S.C. 5134’’ and adding, in its place, 

the reference ‘‘26 U.S.C. 5114’’. 

■ 16. Section 17.182 is amended by 

revising the first sentence to read as 

follows: 

§ 17.182 Drawback claims by druggists. 

Drawback of tax under 26 U.S.C. 5114 

is allowable on taxpaid distilled spirits 

used by druggists in compounding 

prescriptions. * * * 

■ 17. Section 17.187 is amended by 

revising the second sentence to read as 

follows: 


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§ 17.187 Discontinuance of business. 

* * * Upon discontinuance of 

business, a manufacturer’s entire stock 

of taxpaid distilled spirits on hand may 

be sold in a single sale without the 

necessity of qualifying as a wholesaler 

under part 1 of this chapter or 

registering and keeping records as a 

liquor dealer under part 31 of this 

chapter. * * * 

PART 19—DISTILLED SPIRITS 

PLANTS 

■ 18. The authority citation for part 19 

is revised to read as follows: 

Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 

5001, 5002, 5004–5006, 5008, 5010, 5041, 

5061, 5062, 5066, 5101, 5121, 5122–5124, 

5171–5173, 5175, 5176, 5178–5181, 5201– 

5204, 5206, 5207, 5211–5215, 5221–5223, 

5231, 5232, 5235, 5236, 5241–5243, 5271, 

5273, 5301, 5311–5313, 5362, 5370, 5373, 

5501–5505, 5551–5555, 5559, 5561, 5562, 

5601, 5612, 5682, 6001, 6065, 6109, 6302, 

6311, 6676, 6806, 7510, 7805; 31 U.S.C. 9301, 

9303, 9304, 9306. 

§ 19.11 [Amended] 

■ 19. Section 19.11 is amended: 

■ a. In the definition of ‘‘Alcoholic 

flavoring materials’’, by removing the 

reference ‘‘26 U.S.C. 5131–5134’’ and 

adding, in its place, the reference ‘‘26 

U.S.C. 5111–5114’’. 

■ b. In the definition of ‘‘Eligible 

flavor’’, by removing from paragraph (1) 

the reference ‘‘26 U.S.C. 5134’’ and 

adding, in its place, the reference ‘‘26 

U.S.C. 5114’’. 

■ 20. Subpart Ca is revised to read as 

follows: 

Subpart Ca—Dealer Registration and 

Recordkeeping 

Sec. 

19.49 Definitions. 

19.50 Dealer registration. 

19.51 Amending the dealer registration. 

19.52 Dealer records. 

Subpart Ca—Dealer Registration and 

Recordkeeping 

§ 19.49 Definitions. 

For purposes of this subpart, the 

following terms have the meanings 

indicated: 

Dealer. A person who sells, or offers 

for sale, any alcohol product (distilled 

spirits, wines, and/or beer) fit for 

beverage use. 

Retail dealer in liquors. A dealer who 

sells, or offers for sale, distilled spirits, 

wines, or beer to any person other than 

a dealer. 

Wholesale dealer in liquors. A dealer 

who sells, or offers for sale, distilled 

spirits, wines, or beer to another dealer. 

(26 U.S.C. 5121, 5122) 

§ 19.50 Dealer registration. 

Every proprietor who sells or offers 

for sale any alcoholic product (distilled 

spirits, wines, or beer) fit for beverage 

use must register as a dealer under part 

31 of this chapter. However, the 

proprietor’s application for registration 

of a distilled spirits plant filed under 

subpart G of this part, and approval of 

that application by the appropriate TTB 

officer, will constitute the proprietor’s 

registration as a dealer at the distilled 

spirits plant. Every proprietor registered 

as a dealer under this subpart will be 

classified as a wholesale dealer in 

liquors (see § 31.32 of this chapter) and 

as such may also operate as a retail 

dealer in liquors without additional 

registration. Registration covers all sales 

from the same location, including sales 

of wine, beer, or other proprietors’ 

spirits. A proprietor who conducts 

business as a dealer at a location other 

than the distilled spirits plant must 

register and keep records in accordance 

with part 31 of this chapter. 

(26 U.S.C. 5124) 

§ 19.51 Amending the dealer registration. 

Every proprietor registered as a dealer 

under this subpart must maintain a 

current and accurate distilled spirits 

plant registration. Whenever there is a 

change to any of the information 

provided in the proprietor’s approved 

notice of registration, the proprietor 

must amend the registration within the 

time period specified in subpart G of 

this part. An amendment of the 

proprietor’s distilled spirits plant 

registration will also serve as an 

amendment of the proprietor’s dealer 

registration under this subpart. The 

proprietor’s dealer registration will also 

terminate when distilled spirits plant 

operations under the notice of 

registration terminate. 

(26 U.S.C. 5124) 

§ 19.52 Dealer records. 

Every dealer is required to maintain 

records of transactions. Distilled spirits 

transactions that appear in the records 

required by subpart W of this part will 

meet the proprietor’s recordkeeping 

requirements as a dealer. For other 

transactions not covered in the distilled 

spirits plant records, such as retail sales 

of wine or beer in a restaurant at the 

distilled spirits plant, or operations as a 

wholesale dealer in wine or beer, the 

proprietor must keep the records 

specified for dealers in part 31 of this 

chapter. 

(26 U.S.C. 5121, 5122) 

§ 19.63 [Amended] 

■ 21. In § 19.63, the last sentence is 

amended by removing the words ‘‘, 

including special (occupational) tax,’’. 

§ 19.65 [Amended] 

■ 22. Section 19.65 is amended by 

removing the last sentence. 

§ 19.67 [Amended] 

■ 23. Section 19.67 is amended: 

■ a. In paragraph (a)(1), by removing the 

words ‘‘and pay special (occupational) 

tax’’; and 

■ b. In paragraph (a)(2), by removing the 

words ‘‘(except the payment of special 

(occupational) tax)’’. 

§ 19.71 [Amended] 

■ 24. In § 19.71, paragraph (a) is 

amended by removing the last sentence. 

§ 19.374 [Amended] 

■ 25. In § 19.374, the second sentence is 

amended by removing the reference ‘‘26 

U.S.C. 5131–5134’’ and adding, in its 

place, the reference ‘‘26 U.S.C. 5111– 

5114’’. 

■ 26. Section 19.906 is revised to read 

as follows: 

§ 19.906 Dealer registration and 

recordkeeping. 

An alcohol fuel plant that sells spirits 

that have not been rendered unfit for 

beverage use is subject to the 

requirements of subpart Ca of this part, 

except that the references in §§ 19.50 

and 19.51 to ‘‘subpart G’’ should be 

taken to refer to §§ 19.910 through 

19.950, and the reference in § 19.51 to 

‘‘subpart W’’ should be taken to refer to 

§§ 19.980 through 19.988. 

PART 20—DISTRIBUTION AND USE OF 

DENATURED ALCOHOL AND RUM 

■ 27. The authority citation for part 20 

continues to read as follows: 

Authority: 26 U.S.C. 5001, 5206, 5214, 

5271–5275, 5311, 5552, 5555, 5607, 6065, 

7805. 

Subpart Ca—[Removed and Reserved] 

■ 28. Subpart Ca is removed and 

reserved. 

§ 20.241 [Amended] 

■ 29. Section 20.241 is amended by 

removing the last sentence. 

PART 22—DISTRIBUTION AND USE OF 

TAX-FREE ALCOHOL 

■ 30. The authority citation for part 22 

is revised to read as follows: 

Authority: 26 U.S.C. 5001, 5121, 5123, 

5206, 5214, 5271–5275, 5311, 5552, 5555, 


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6056, 6061, 6065, 6109, 6151, 6806, 7805; 31 

U.S.C. 9304, 9306. 

Subpart Ca—[Removed and Reserved] 

■ 31. Subpart Ca is removed and 

reserved. 

■ 32. In § 22.102, the last sentence of 

paragraph (d) is revised to read as 

follows: 

§ 22.102 Prohibited uses. 

* * * * * 

(d) * * * Any permittee who sells 

tax-free alcohol becomes subject to the 

provisions of part 31 of this chapter. 

§ 22.171 [Amended] 

■ 33. In § 22.171, the last sentence of 

paragraph (a) is removed. 

PART 24—WINE 

■ 34. The authority citation for part 24 

is revised to read as follows: 

Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 

5008, 5041, 5042, 5044, 5061, 5062, 5121, 

5122–5124, 5173, 5206, 5214, 5215, 5351, 

5353, 5354, 5356, 5357, 5361, 5362, 5364– 

5373, 5381–5388, 5391, 5392, 5511, 5551, 

5552, 5661, 5662, 5684, 6065, 6091, 6109, 

6301, 6302, 6311, 6651, 6676, 7302, 7342, 

7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 

9303, 9304, 9306. 

■ 35. The undesignated center heading 

directly above § 24.50 is revised to read, 

‘‘DEALER REGISTRATION AND 

RECORDKEEPING’’. 

§ 24.50 [Removed and reserved] 

■ 36. Section 24.50 is removed and 

reserved. 

■ 37. Sections 24.51 through 24.54 are 

revised to read as follows: 

§ 24.51 Definitions. 

For purposes of §§ 24.52 through 

24.54 of this part, the following terms 

have the meanings indicated: 

Dealer. A person who sells, or offers 

for sale, any alcohol product (distilled 

spirits, wines, and/or beer) fit for 

beverage use. 

Retail dealer in liquors. A dealer who 

sells, or offers for sale, distilled spirits, 

wines, or beer to any person other than 

a dealer. 

Wholesale dealer in liquors. A dealer 

who sells, or offers for sale, distilled 

spirits, wines, or beer to another dealer. 

(26 U.S.C. 5121, 5122) 

§ 24.52 Dealer registration. 

Every proprietor who sells or offers 

for sale any alcohol product (distilled 

spirits, wines, or beer) fit for beverage 

use must register as a dealer in 

accordance with part 31 of this chapter. 

However, the proprietor’s application to 

establish and operate a bonded wine 

premises or taxpaid wine bottling house 

filed under subpart D of this part, and 

approval of that application by the 

appropriate TTB officer, will constitute 

the proprietor’s registration as a dealer 

at the approved bonded or taxpaid wine 

premises. Every proprietor registered as 

a dealer under this section will be 

classified as a wholesale dealer in 

liquors (see § 31.32 of this chapter) and 

as such may also operate as a retail 

dealer in liquors without additional 

registration. Registration covers all sales 

from the same location, including sales 

of spirits, beer, or other proprietors’ 

wine. As provided in § 31.52 of this 

chapter, the proprietor is subject to no 

additional registration for making sales 

of wine or beer at the customer’s place 

of business. Otherwise, a proprietor who 

conducts business as a dealer at a 

location other than the bonded wine 

premises or taxpaid wine bottling house 

must register and keep records in 

accordance with part 31 of this chapter. 

(26 U.S.C. 5124) 

§ 24.53 Amending the dealer registration. 

Every proprietor registered as a dealer 

under § 24.52 must maintain a current 

and accurate application file under 

subpart D of this part. Whenever there 

is a change to any of the information 

provided in the proprietor’s approved 

application, the proprietor must amend 

the application within the time period 

specified in subpart D of this part. An 

amendment of the proprietor’s wine 

premises approved application will also 

amend the proprietor’s dealer 

registration under § 24.52. The 

proprietor’s dealer registration will also 

terminate when wine operations 

authorized under this part terminate. 

(26 U.S.C. 5124) 

§ 24.54 Dealer records. 

Every dealer is required to maintain 

records of transactions. Wine 

transactions that appear in the records 

required by subpart O of this part will 

meet the proprietor’s recordkeeping 

requirements as a dealer. For other 

transactions not covered in the wine 

premises records, such as retail sales of 

distilled spirits or beer in a restaurant at 

the wine premises, or operations as a 

wholesale dealer in distilled spirits or 

beer, the proprietor must keep the 

records specified for dealers in part 31 

of this chapter. 

(26 U.S.C. 5121, 5122, 5123) 

§ 24.55 [Removed] 

■ 38. Section 24.55 is removed. 

§ 24.146 [Amended] 

■ 39. In § 24.146, paragraph (a) is 

amended by removing the second 

sentence. 

PART 25—BEER 

■ 40. The authority citation for part 25 

is revised 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. 

§ 25.24 [Amended] 

■ 41. Section 25.24 is amended: 

■ a. In paragraph (a)(5) by adding the 

word ‘‘and’’ at the end of the paragraph 

after the semicolon; 

■ b. By removing paragraph (a)(6); and 

■ c. By redesignating paragraph (a)(7) as 

paragraph (a)(6). 

■ 42. Subpart I is revised to read as 

follows: 

Subpart I—Dealer Registration and 

Recordkeeping 

Sec. 

25.111 Definitions. 

25.112 Dealer registration. 

25.113 Amending the dealer registration. 

25.114 Dealer records. 

Subpart I—Dealer Registration and 

Recordkeeping 

§ 25.111 Definitions. 

For purposes of this subpart, the 

following terms have the meanings 

indicated: 

Dealer. A person who sells, or offers 

for sale, any alcohol product (distilled 

spirits, wines, and/or beer) fit for 

beverage use. 

Retail dealer in liquors. A dealer who 

sells, or offers for sale, distilled spirits, 

wines, or beer to any person other than 

a dealer. 

Wholesale dealer in liquors. A dealer 

who sells, or offers for sale, distilled 

spirits, wines, or beer to another dealer. 

(26 U.S.C. 5121, 5122) 

§ 25.112 Dealer registration. 

Every brewer who sells, or offers for 

sale, any alcohol product (distilled 

spirits, wines, or beer) fit for beverage 

use must register as a dealer in 

accordance with part 31 of this chapter. 

However, the Brewer’s Notice, TTB 

Form 5130.10, filed under subpart G of 

this part, and approval of that notice by 

the appropriate TTB officer, will 

constitute the brewer’s registration as a 

dealer at the brewery. Every brewer 

registered as a dealer under this subpart 

will be classified as a wholesale dealer 


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in liquors (see § 31.32 of this chapter) 

and as such may also operate as a retail 

dealer in liquors without additional 

registration. Registration covers all sales 

from the same location, including sales 

of wine, spirits, or other brewers’ beer. 

As provided in § 31.52 of this chapter, 

the brewer is subject to no additional 

registration for making sales of wine or 

beer at the customer’s place of business. 

Otherwise, a brewer who conducts 

business as a dealer at a location other 

than the brewery must register and keep 

records in accordance with part 31 of 

this chapter. 

(26 U.S.C. 5124) 

§ 25.113 Amending the dealer registration. 

Every brewer registered as a dealer 

under this subpart must maintain a 

current and accurate Brewer’s Notice, 

TTB Form 5130.10. Whenever there is a 

change to any of the information 

provided in the approved Brewer’s 

Notice, the brewer must amend the 

notice within the time period specified 

in subpart G of this part. An amendment 

to the Brewer’s Notice, Form 5130.10, 

will also serve as an amendment of the 

brewer’s dealer registration under this 

subpart. The brewer’s dealer registration 

will also terminate when brewery 

operations under the Brewer’s Notice 

terminate. 

(26 U.S.C. 5124) 

§ 25.114 Dealer records. 

Every dealer is required to maintain 

records of transactions. Beer 

transactions that appear in the records 

required by subpart U of this part will 

meet the brewer’s recordkeeping 

requirements as a dealer. For other 

transactions not covered in the brewery 

records, such as retail sales of wine or 

distilled spirits in a restaurant at the 

brewery, or operations as a wholesale 

dealer in wine or distilled spirits, the 

brewer must keep the records specified 

for dealers in part 31 of this chapter. 

(26 U.S.C. 5121, 5122) 

§ 25.168 [Amended] 

■ 43. In § 25.168, the last sentence is 

amended by removing the reference 

‘‘§§ 25.122 and 25.123’’ and adding, in 

its place, the reference ‘‘§ 25.169’’. 

■ 44. New § 25.169 is added to read as 

follows: 

§ 25.169 Application for employer 

identification number. 

(a) Form SS–4. The taxpayer must 

obtain an employer identification 

number (EIN) by filing an application 

with the Internal Revenue Service (IRS) 

on IRS Form SS–4. Form SS–4 is 

available from the local IRS Service 

Center, from the IRS District Director, 

the IRS Web site at http://www.irs.gov or 

from TTB’s National Revenue Center. 

The taxpayer may file this form with 

IRS by mail, telephone, or fax by 

following the instructions on the form. 

(b) Time limit. If the taxpayer has not 

already received, or applied for, an EIN 

at the time that the first return on TTB 

Form 5000.24, Excise Tax Return, is 

filed, the taxpayer must apply for an 

EIN not later than seven days from the 

date of filing the Form 5000.24. 

(c) One EIN only. Each taxpayer must 

obtain and use only one EIN, regardless 

of the number of places of business for 

which the proprietor is required to file 

a tax return under this subpart. 

(26 U.S.C. 6109) 

§ 25.275 [Removed] 

■ 45. Section 25.275 is removed and 

reserved. 

PART 26—LIQUORS AND ARTICLES 

FROM PUERTO RICO AND THE VIRGIN 

ISLANDS 

■ 46. The authority citation for part 26 

is revised to read as follows: 

Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 

5007, 5008, 5010, 5041, 5051, 5061, 5111– 

5114, 5121, 5122–5124, 5131–5132, 5207, 

5232, 5271, 5275, 5301, 5314, 5555, 6001, 

6301, 6302, 6804, 7101, 7102, 7651, 7652, 

7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 

9303, 9304, 9306. 

§ 26.11 [Amended] 

■ 47. In § 26.11, the definition of 

‘‘Eligible flavor’’ is amended by 

removing from paragraph (1) the 

reference ‘‘26 U.S.C. 5134’’ and adding, 

in its place, the reference ‘‘26 U.S.C. 

5114’’. 

■ 48. Section 26.36 is amended: 

■ a. In paragraph (b), by revising the 

first sentence; 

■ b. In paragraph (c), by revising the 

first sentence; and 

■ c. In paragraph (d)(2)(i), by removing 

the words ‘‘, and pays special 

(occupational) tax,’’. 

The revisions read as follows: 

§ 26.36 Products exempt from tax. 

* * * * * 

(b) Industrial spirits. A distiller of 

industrial spirits who registers and files 

a bond as a distilled spirits plant in 

accordance with part 19 of this chapter 

may ship industrial spirits to a tax-free 

alcohol user in the United States who 

holds a permit issued under part 22 of 

this chapter. * * * 

(c) Denatured spirits. A distiller who 

registers and files a bond as a distilled 

spirits plant in accordance with part 19 

of this chapter and who denatures 

spirits in accordance with parts 19 and 

21 of this chapter may ship completely 

denatured alcohol to anyone in the 

United States, and may ship specially 

denatured spirits to a dealer or user of 

specially denatured spirits in the United 

States or Puerto Rico who holds a 

permit issued under part 20 of this 

chapter. 

* * * 

* * * * * 

■ 49. The undesignated center heading 

before § 26.44 is revised to read as 

follows: ‘‘DEALER REGISTRATION 

AND RECORDKEEPING’’. 

■ 50. Sections 26.44 and 26.45 are 

revised to read as follows: 

§ 26.44 Liquor dealer registration and 

recordkeeping. 

Every person bringing liquors into the 

United States from Puerto Rico who 

sells, or offers for sale, such liquors 

must register and keep records as a 

wholesale dealer in liquor or as a retail 

dealer in liquor in accordance with part 

31 of this chapter. 

(26 U.S.C. 5121, 5122, 5123, 5124.) 

§ 26.45 Warehouse receipts covering 

distilled spirits. 

The sale of warehouse receipts for 

distilled spirits is equivalent to the sale 

of distilled spirits. Accordingly, every 

person bringing distilled spirits into the 

United States from Puerto Rico who 

sells, or offers for sale, warehouse 

receipts for distilled spirits stored in 

warehouses, or elsewhere, must register 

and keep records as a dealer in liquors 

at the place where the warehouse 

receipts are sold, or offered for sale, in 

accordance with part 31 of this chapter. 

(26 U.S.C. 5121, 5122, 5123, 5124) 

§§ 26.46 and 26.47 [Removed and 

reserved] 

■ 51. Sections 26.46 and 26.47 are 

removed and reserved. 

■ 52. Section 26.171 is revised to read 

as follows: 

§ 26.171 Claimant registration. 

Any person filing claim for drawback 

of tax on eligible articles brought into 

the United States from Puerto Rico must 

register annually as a nonbeverage 

domestic drawback claimant. 

Registration will be accomplished when 

the claimant submits the first drawback 

claim for each year, along with the 

required supporting data for the claim, 

under subpart G of part 17 of this 

chapter. For purposes of registration, 

subpart C part 17 of this chapter shall 

apply as if the use and tax 

determination occurred in the United 

States at the time the article was brought 


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into the United States, and each 

business location from which entry of 

eligible articles is caused or effected 

shall be treated as a place of 

manufacture. 

■ 53. Section 26.173 is amended: 

■ a. In paragraph (a), by removing the 

second sentence and adding, in its 

place, two new sentences; 

■ b. By removing and reserving 

paragraph (b)(1); and 

■ c. By revising paragraph (c)(1). 

The addition and revisions read as 

follows: 

§ 26.173 Claims for drawback. 

(a) * * * Upon finding that the 

claimant has satisfied the requirements 

of this subpart, the appropriate TTB 

officer will allow the drawback at $1 

less than the rate applicable under 26 

U.S.C. 7652(f). Claims for products 

manufactured in Puerto Rico must be 

filed separately from claims filed under 

part 17 of this chapter for products 

manufactured in the United States. 

* * * * * 

(c) * * * 

(1) The claimant’s employer 

identification number, as required by 

§§ 17.31 and 17.32 of this chapter; and 

* * * * * 

■ 54. The undesignated center heading 

before § 26.210 is revised to read as 

follows: ‘‘DEALER REGISTRATION 

AND RECORDKEEPING’’. 

■ 55. Sections 26.210 and 26.211 are 

revised to read as follows: 

§ 26.210 Liquor dealer registration and 

recordkeeping. 

Every person bringing liquors into the 

United States from the Virgin Islands 

who sells, or offers for sale, such liquors 

must register and keep records as a 

wholesale dealer in liquor or as a retail 

dealer in liquor in accordance with part 

31 of this chapter. 

(26 U.S.C. 5121, 5122, 5123, 5124) 

§ 26.211 Warehouse receipts covering 

distilled spirits. 

The sale of warehouse receipts for 

distilled spirits is equivalent to the sale 

of distilled spirits. Accordingly, every 

person bringing distilled spirits into the 

United States from the Virgin Islands 

who sells, or offers for sale, warehouse 

receipts for distilled spirits stored in 

warehouses, or elsewhere, must register 

and keep records as a dealer in liquors 

at the place where the warehouse 

receipts are sold, or offered for sale, in 

accordance with part 31 of this chapter. 

(26 U.S.C. 5121, 5122, 5123, 5124) 

■ 56. Section 26.307 is revised to read 

as follows: 

§ 26.307 Claimant registration. 

Any person filing claim for drawback 

of tax on eligible articles brought into 

the United States from the Virgin 

Islands must register annually as a 

nonbeverage domestic drawback 

claimant. Registration will be 

accomplished when the claimant 

submits the first drawback claim for 

each year, along with the required 

supporting data for the claim, under 

subpart G of part 17 of this chapter. For 

purposes of registration, subpart C of 

part 17 of this chapter shall apply as if 

the use and tax determination occurred 

in the United States at the time the 

article was brought into the United 

States, and each business location from 

which entry of eligible articles is caused 

or effected shall be treated as a place of 

manufacture. 

■ 57. Section 26.309 is amended: 

■ a. In paragraph (a), by removing the 

second sentence and adding, in its 

place, two new sentences; 

■ b. By removing and reserving 

paragraph (b)(1); and 

■ c. By revising paragraph (c)(1). 

The addition and revisions read as 

follows: 

§ 26.309 Claims for drawback. 

(a) * * * Upon finding that the 

claimant has satisfied the requirements 

of this subpart, the appropriate TTB 

officer will allow the drawback at $1 

less than the rate applicable under 26 

U.S.C. 7652(f). Claims for products 

manufactured in the Virgin Islands must 

be filed separately from claims filed 

under part 17 of this chapter for 

products manufactured in the United 

States. 

* * * * * 

(c) * * * 

(1) The claimant’s employer 

identification number, as required by 

§§ 17.31 and 17.32 of this chapter; and 

* * * * * 

PART 27—IMPORTATION OF 

DISTILLED SPIRITS, WINES, AND 

BEER 

■ 58. The authority citation for part 27 

is revised to read as follows: 

Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 

1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 

5051, 5054, 5061, 5121, 5122–5124, 5201, 

5205, 5207, 5232, 5273, 5301, 5313, 5555, 

6302, 7805. 

§ 27.1 [Amended] 

■ 59. Section 27.1 is amended by 

removing the words ‘‘special 

(occupational) and’’. 

§ 27.11 [Amended] 

■ 60. In § 27.11, the definition of 

‘‘Eligible flavor’’ is amended by 

removing from paragraph (1) the 

reference ‘‘26 U.S.C. 5134’’ and adding, 

in its place, the reference ‘‘26 U.S.C. 

5114’’. 

■ 61. Revise subpart C to read as 

follows: 

Subpart C—Dealer Registration and 

Recordkeeping 

§ 27.30 Dealer registration and 

recordkeeping. 

Importers engaged in the business of 

selling, or offering for sale, distilled 

spirits, wines, or beer are subject to the 

provisions of part 31 of this chapter 

relating to dealer registration and 

records. Part 31 requires the filing of 

TTB Form 5630.5d with TTB, in 

accordance with the instructions on the 

form, before commencing business and 

on or before July 1 of each year 

thereafter if there have been any 

changes. The dealer must file an 

amended registration and give notice of 

termination in accordance with the 

rules of part 31. 

(26 U.S.C. 5121, 5122, 5123, 5124) 

§ 27.31 Warehouse receipts covering 

distilled spirits. 

The sale of warehouse receipts for 

distilled spirits is equivalent to the sale 

of distilled spirits. Accordingly, every 

person engaged in business as an 

importer of distilled spirits who sells, or 

offers for sale, warehouse receipts for 

distilled spirits stored in customs 

bonded warehouses, or elsewhere, must 

register and keep records as a dealer in 

liquors at the place where the 

warehouse receipts are sold or offered 

for sale, in accordance with part 31 of 

this chapter. 

(26 U.S.C. 5121, 5122, 5123, 5124) 

PART 28—EXPORTATION OF 

ALCOHOL 

■ 62. The authority citation for part 28 

is revised to read as follows: 

Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 

1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051, 

5054, 5061, 5121, 5122, 5201, 5205, 5207, 

5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 

U.S.C. 203, 205; 44 U.S.C. 3504(h). 

■ 63. Section 28.212 is revised to read 

as follows: 

§ 28.212 Persons authorized. 

Persons who have qualified under this 

chapter as proprietors of distilled spirits 

plants, bonded wine cellars, or taxpaid 

wine bottling houses, and persons who 

are wholesale liquor dealers (as defined 


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in § 31.32 of this chapter) and have 

registered as a wholesale liquor dealer 

in accordance with part 31 of this 

chapter, are authorized to remove wines 

under the provisions of this subpart. 

(26 U.S.C. 5062) 

■ 64. Part 31 is revised to read as 

follows: 

PART 31—ALCOHOL BEVERAGE 

DEALERS 

Sec. 

31.0 Scope. 

Subpart A—General Provisions 

31.1 Definitions. 

31.2 Territorial extent. 

31.3 Basic permit requirements. 

31.4 Relation to State and municipal law. 

Subpart B—Administrative Provisions 

31.11 Forms prescribed. 

31.12 Right of entry and examination. 

31.13 Delegations of the Administrator. 

31.14 Penalties. 

31.15 Disclosure of information. 

Subpart C—Activities Subject to This Part 

31.21 Basis of regulation. 

31.22 Selling or offering for sale. 

Dealers Classified 

31.31 Retail dealer in liquors. 

31.32 Wholesale dealer in liquors. 

31.33 Retail dealer in beer. 

31.34 Wholesale dealer in beer. 

31.35 Limited retail dealer; persons 

eligible. 

31.36 Sales of 20 wine gallons (75.7 liters) 

or more. 

Certain Organizations, Agencies, and 

Persons 

31.41 Clubs or similar organizations. 

31.42 Restaurants serving liquors with 

meals. 

31.43 States, political subdivisions thereof, 

or the District of Columbia. 

31.44 Sales of denatured spirits or articles. 

31.45 Sales of alcoholic compounds, 

preparations, or mixtures containing 

distilled spirits, wines, or beer. 

31.46 Sales by agencies and 

instrumentalities of the United States. 

31.47 Warehouse receipts covering spirits. 

31.48 Alcohol beverage producers, 

processors, and bonded warehousemen. 

Subpart D—Exemptions and Exceptions 

Persons Exempt From Registration and/or 

Recordkeeping 

31.51 Wholesale dealers making retail 

sales. 

31.52 Wholesale dealers in liquors 

consummating sales of wines or beer at 

premises of other dealers. 

31.53 Wholesale dealers in beer 

consummating sales at premises of other 

dealers. 

31.54 Hospitals. 

31.55 Limited retail dealers. 

Persons Who Are Not Dealers in Liquors or 

Beer 

31.61 Single sale of liquors or warehouse 

receipts. 

31.62 Persons making casual sales. 

31.63 Agents, auctioneers, brokers, etc., 

acting on behalf of others. 

31.64 Apothecaries or druggists selling 

medicines and tinctures. 

31.65 Persons selling products unfit for 

beverage use. 

31.66 Retail dealer selling entire stock in 

liquidation. 

31.67 Persons returning liquors for credit, 

refund, or exchange. 

Subpart E—Places Subject to Registration 

31.71 Registration required for each place 

of business. 

31.72 Place of sale. 

31.73 Place of offering for sale. 

31.74 Places of storage; deliveries 

therefrom. 

31.75 Dealer in beer and dealer in liquors 

at the same location. 

Sales in Two or More Areas on the Same 

Premises 

31.81 General. 

31.82 Hotels. 

31.83 Ball park, race track, etc.; sales 

throughout the premises. 

Sales in Multiple Locations 

31.91 Passenger trains, aircraft, and 

vessels. 

31.92 Carriers not engaged in passenger 

service. 

31.93 Supply boats or vessels. 

31.94 Retail dealers ‘‘At Large.’’ 

31.95 Caterers. 

31.96 Peddling. 

Subpart F—Partnerships 

31.101 Registration of partners. 

31.102 Addition of partners or 

incorporation of partnership. 

31.103 Formation of a partnership by two 

dealers. 

31.104 Withdrawal of one or more 

partners. 

Subpart G—Registration Form, TTB F 

5630.5d 

31.111 Date registration form is due. 

31.112 Registration of multiple locations. 

31.113 Place for filing registration form. 

31.114 Completion of registration form. 

31.115 Employer identification number. 

31.116 Execution of registration form. 

Subpart H—Changes in Registration 

Information 

Changes Requiring Registration as a New 

Business 

31.121 Sale of business. 

31.122 Incorporation of business. 

31.123 New corporation. 

31.124 Stockholder continuing business of 

corporation. 

31.125 Cross references. 

Other Changes 

31.131 Change of address. 

31.132 Change in name or style of business. 

31.133 Change in management. 

31.134 Increase in capital stock of a 

corporation. 

31.135 Change in ownership of capital 

stock. 

31.136 Change in membership of 

unincorporated club. 

31.137 Withdrawal of partner(s). 

31.138 Discontinuance of business. 

Subpart I—Restrictions Relating to 

Purchases of Distilled Spirits 

31.141 Unlawful purchases of distilled 

spirits. 

Subpart J—Records and Reports 

Wholesale Dealers’ Records and Reports 

31.151 General requirements as to distilled 

spirits. 

31.152 Requirements as to wines and beer. 

31.153 Records to be kept by States, 

political subdivisions of States, or the 

District of Columbia. 

31.154 Records to be kept by alcohol 

beverage producers, processors, and 

bonded warehousemen. 

31.155 Records of receipt. 

31.156 Records of disposition. 

31.157 Canceled or corrected records. 

31.158 Previously prescribed or approved 

records of receipt and disposition. 

31.159 Variations in format or preparation 

of records. 

31.160 Monthly summary report. 

31.161 Conversion between metric and 

U.S. units. 

31.162 Discontinuance of business. 

31.163 Requirements when a wholesale 

dealer in liquors maintains a retail 

department. 

Filing of Wholesale Dealer’s Records and 

Reports 

31.171 Method of filing. 

31.172 Place of filing. 

Retail Dealer’s Records 

31.181 Requirements for retail dealers. 

Retention of Records and Files 

31.191 Period of retention. 

31.192 Photographic copies of records. 

Subpart K—Reuse and Possession of Used 

Liquor Bottles 

31.201 Refilling of liquor bottles. 

31.202 Possession of refilled liquor bottles. 

31.203 Possession of used liquor bottles. 

31.204 Mixed cocktails. 

Subpart L—Packaging of Alcohol for 

Industrial Uses 

31.211 Requirements and procedure. 

31.212 Labeling. 

Subpart M—Distilled Spirits for Export With 

Benefit of Drawback 

31.221 General. 

31.223 Records and reports. 

Subpart N—Miscellaneous 

31.231 Destruction of marks and brands on 

wine containers. 

31.232 Wine bottling. 

31.233 Mixing cocktails in advance of sale. 

31.234 Liability for special (occupational) 

tax. 


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Authority: 26 U.S.C. 5001, 5002, 5121, 

5122–5124, 5131, 5132, 5206, 5207, 5273, 

5301, 5352, 5555, 5603, 5613, 5681, 5687, 

6061, 6065, 6071, 6091, 6103, 6109, 6723, 

6724, 7805. 

§ 31.0 Scope. 

This part contains the requirements 

relating to the registration of wholesale 

and retail dealers in liquors and in beer 

and to the operations of such dealers, 

including recordkeeping requirements, 

prescribed under title 26 of the United 

States Code. This part also contains 

provisions relating to entry of dealers’ 

premises and inspection of their records 

by TTB officers. 

Subpart A—General Provisions 

§ 31.1 Definitions. 

As used in this part, the following 

terms shall have the meanings indicated 

unless either the context in which they 

are used requires a different meaning, or 

a different definition is prescribed for a 

particular subpart, section, or portion of 

this part: 

Administrator. The Administrator, 

Alcohol and Tobacco Tax and Trade 

Bureau, Department of the Treasury, 

Washington, DC. 

Appropriate TTB officer. An officer or 

employee of the Alcohol and Tobacco 

Tax and Trade Bureau (TTB) authorized 

to perform any functions relating to the 

administration or enforcement of this 

part by TTB Order 1135.31, Delegation 

of the Administrator’s Authorities in 27 

CFR Part 31, Alcohol Beverage Dealers. 

Beer. Beer, ale, porter, stout, and other 

similar fermented beverages (including 

sake or similar products) of any name or 

description containing one-half of 1 

percent or more of alcohol by volume, 

brewed or produced from malt, wholly 

or in part, or from any substitute 

therefor. 

Beverage use or use for beverage 

purposes. Use as an alcohol beverage. 

Bonded wine cellar. An establishment 

qualified under this chapter for the 

production, blending, cellar treatment, 

storage, bottling, and packaging or 

repackaging of untaxpaid wine. 

Brewery. An establishment qualified 

under this chapter for the production of 

beer. 

CFR. The Code of Federal 

Regulations. 

Dealer. Any person who sells, or 

offers for sale, any distilled spirits, 

wines, or beer. 

Denatured spirits or denatured 

alcohol. Spirits to which denaturants 

have been added as prescribed under 

this chapter. 

Distilled spirits or spirits. That 

substance known as ethyl alcohol, 

ethanol, or spirits of wine in any form, 

including all dilutions and mixtures 

thereof, from whatever source or by 

whatever process produced. 

Distilled spirits plant. An 

establishment qualified under part 19 of 

this chapter for the production, storage, 

or processing of distilled spirits. 

Gallon or wine gallon. A United States 

gallon of liquid measure equivalent to 

the volume of 231 cubic inches. 

Liquor bottle. A bottle made of glass 

or earthenware, or of other suitable 

material approved by the Food and Drug 

Administration, which has been 

designed or is intended for use as a 

container for distilled spirits for sale for 

beverage purposes and which has been 

determined by the appropriate TTB 

officer to adequately protect the 

revenue. 

Liquors. Distilled spirits, wines, or 

beer. 

Liter. A metric unit of capacity equal 

to 1,000 cubic centimeters of alcoholic 

beverage, and equivalent to 33.814 fluid 

ounces. 

Person. An individual, trust, estate, 

partnership, association or other 

unincorporated organization, fiduciary, 

company, or corporation, the District of 

Columbia, or a State or a political 

subdivision thereof (including a city, 

county, or other municipality). 

Place or place of business. The entire 

office, plant, or area of the business in 

any one location under the same 

proprietorship; and passageways, 

streets, highways, rail crossings, 

waterways, or partitions dividing the 

premises shall not be deemed a 

separation for the purposes of this part, 

if the various divisions are otherwise 

contiguous. 

Reclaim. To grind up a liquor bottle 

or container and use the ground up 

material to make products other than 

liquor bottles or containers. 

Recycle. To grind up a liquor bottle or 

container and use the ground up 

material to make new liquor bottles or 

containers. 

Sale at retail or retail sale. Sale of 

liquors to a person other than a dealer. 

Sale at wholesale or wholesale sale. 

Sale of liquors to a dealer. 

This chapter. Chapter I of title 27 of 

the Code of Federal Regulations. 

U.S.C. The United States Code. 

Wine. When used without 

qualification, the term includes every 

kind (class and type) of product 

produced on bonded wine premises 

from grapes, other fruit (including 

berries), or other suitable agricultural 

products and containing not more than 

24 percent of alcohol by volume. The 

term includes all imitation, other than 

standard, or artificial wine and 

compounds sold as wine. A wine 

product containing less than one-half of 

one percent alcohol by volume is not 

taxable as wine when removed from the 

bonded wine premises. 

(26 U.S.C. 5002, 5041, 5052, 7805) 

§ 31.2 Territorial extent. 

The provisions of this part shall be 

applicable in the several States of the 

United States and the District of 

Columbia. 

§ 31.3 Basic permit requirements. 

Every person, except an agency of a 

State or political subdivision thereof, 

who intends to engage in the business 

of purchasing distilled spirits, wines, or 

beer for sale to other dealers for 

nonindustrial use, or to engage in the 

business of importing distilled spirits, 

wines, or beer for nonindustrial use, is 

required under part 1 of this chapter to 

obtain a basic permit authorizing such 

person to engage in such business. 

§ 31.4 Relation to State and municipal law. 

Compliance with the requirements of 

this part shall not be held to exempt any 

person from any penalty or punishment 

provided by the laws of any State for 

carrying on any trade or business within 

such State, or in any manner to 

authorize the commencement or 

continuance of such trade or business 

contrary to the laws of such State or in 

places prohibited by municipal law; nor 

shall such compliance be held to 

prohibit any State from placing a duty 

or tax on the same trade or business, for 

State or other purposes. 

Subpart B—Administrative Provisions 

§ 31.11 Forms prescribed. 

(a) The appropriate TTB officer is 

authorized to prescribe all forms 

required by this part. All of the 

information called for in each form shall 

be furnished as indicated by the 

headings on the form and the 

instructions on or pertaining to the 

form. In addition, information called for 

in each form shall be furnished as 

required by this part. 

(b) Forms prescribed by this part are 

available for printing through the TTB 

Web site (http://www.ttb.gov) or by 

mailing a request to the Alcohol and 

Tobacco Tax and Trade Bureau, 

National Revenue Center, 550 Main 

Street, Suite 8002, Cincinnati, OH 

45202. 

(5 U.S.C. 552(a)) 

§ 31.12 Right of entry and examination. 

Any appropriate TTB officer may 

enter during business hours the 

premises (including places of storage) of 

any dealer for the purpose of inspecting 


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or examining any records or other 

documents required to be kept by such 

dealer under this part and any distilled 

spirits, wines, or beer kept or stored by 

such dealer on such premises. 

(26 U.S.C. 5123) 

§ 31.13 Delegations of the Administrator. 

The regulatory authorities of the 

Administrator contained in this part are 

delegated to appropriate TTB officers. 

These TTB officers are specified in TTB 

Order 1135.31, Delegation of the 

Administrator’s Authorities in 27 CFR 

Part 31, Alcohol Beverage Dealers. You 

may obtain a copy of this order by 

accessing the TTB Web site (http:// 

www.ttb.gov) or by mailing a request to 

the Alcohol and Tobacco Tax and Trade 

Bureau, National Revenue Center, 550 

Main Street, Room 1516, Cincinnati, OH 

45202. 

§ 31.14 Penalties. 

(a) Criminal penalties. Criminal 

penalties for failure to comply with the 

requirements of this part are imposed by 

26 U.S.C. 5603 and 5687. A failure to 

register as required by this part may 

result in a penalty under 26 U.S.C. 

5603(b). 

(b) Administrative penalty. An 

administrative penalty for failure to 

supply the required identifying number 

(employer identification number) in a 

dealer’s registration is imposed by 26 

U.S.C. 6723. The penalty is $50 for each 

such failure, but not more than $100,000 

for all such failures during a calendar 

year. A failure to submit a registration 

includes a failure to include the 

identifying number on the registration. 

(c) Reasonable cause. The 

administrative penalty described in 

paragraph (b) of this section is not 

imposed when it is shown that the 

failure was due to reasonable cause and 

not due to willful neglect. A dealer who 

believes that the circumstances that led 

to the failure were reasonable and who 

desires to have the penalty waived shall 

submit a written statement, under the 

penalty of perjury, affirmatively 

showing all of the circumstances alleged 

as reasonable causes for the failure. If 

the appropriate TTB officer determines 

that the failure was due to a reasonable 

cause and not to willful neglect, the 

penalty will not be assessed. If the 

dealer exercised ordinary business care 

and prudence but was nevertheless 

unable to comply with the requirement, 

then the failure was due to reasonable 

cause. Mere ignorance of the law will 

not be considered a reasonable cause. 

(26 U.S.C. 5603, 5687, 6109, 6723, 6724) 

§ 31.15 Disclosure of information. 

Alcohol dealer registration forms are 

‘‘information returns’’ as that term is 

used in 26 U.S.C. 6103 and, as such, are 

not subject to disclosure except as 

provided in that law. 

(26 U.S.C. 6103) 

Subpart C—Activities Subject to This 

Part 

§ 31.21 Basis of regulation. 

Persons engaging in or carrying on the 

business or occupation of selling or 

offering for sale alcoholic liquors fit for 

use as a beverage, or any alcoholic 

liquors sold for use as a beverage, are 

subject to the provisions of this part. 

The classes of liquor dealer business 

and the conditions under which the 

provisions of this part apply to them are 

specified in §§ 31.31 through 31.34. 

§ 31.22 Selling or offering for sale. 

Whether the activities of any person 

constitute engaging in the business of 

selling or offering for sale is to be 

determined by the facts in each case. 

Any manner of selling or offering for 

sale, even though to a restricted class of 

persons or without a view to profit, is 

within the scope of this part. 

Dealers Classified 

§ 31.31 Retail dealer in liquors. 

(a) General. Except as otherwise 

provided in paragraph (b) of this 

section, every person who sells or offers 

for sale distilled spirits, wines, or beer 

to any person other than a dealer is a 

retail dealer in liquors for purposes of 

this part. Every retail dealer in liquors 

must comply with the registration and 

other requirements of this part, unless 

the dealer is covered by an applicable 

exemption under subpart D of this part. 

(b) Persons not deemed to be retail 

dealers in liquors. The following 

persons are not retail dealers in liquors 

within the meaning of this part: 

(1) A retail dealer in beer as described 

in § 31.33(a), 

(2) A limited retail dealer as described 

in § 31.35, or 

(3) A person who sells or offers for 

sale distilled spirits, wines, or beer only 

as provided in § 31.61 through § 31.64 

or § 31.65(a). 

(26 U.S.C. 5122) 

§ 31.32 Wholesale dealer in liquors. 

(a) General. Except as otherwise 

provided in paragraph (b) of this 

section, every person who sells or offers 

for sale distilled spirits, wines, or beer 

to another dealer is a wholesale dealer 

in liquors for purposes of this part. 

Every wholesale dealer in liquors must 

comply with the registration and other 

requirements of this part, unless the 

dealer is covered by an applicable 

exemption under subpart D of this part. 

(b) Persons not deemed to be 

wholesale dealers in liquors. The 

following persons are not wholesale 

dealers in liquors within the meaning of 

this part: 

(1) A wholesale dealer in beer as 

described in § 31.34(a); 

(2) A person who sells or offers for 

sale distilled spirits, wines, or beer only 

as provided in §§ 31.61 through 31.64, 

§ 31.65(a), or § 31.66; or 

(3) A person returning liquors for 

credit, refund, or exchange as provided 

in § 31.67. 

(26 U.S.C. 5121) 

§ 31.33 Retail dealer in beer. 

(a) General. Except as otherwise 

provided in paragraph (b) of this 

section, every person who sells or offers 

for sale beer, but not distilled spirits or 

wines, to any person other than a dealer 

is a retail dealer in beer for purposes of 

this part. Every retail dealer in beer 

must comply with the registration and 

other requirements of this part, unless 

the dealer is covered by an applicable 

exemption under subpart D of this part. 

(b) Persons not deemed to be retail 

dealers in beer. The following persons 

are not retail dealers in beer within the 

meaning of this part: 

(1) A limited retail dealer as described 

in § 31.35, or 

(2) A person who does not sell or offer 

for sale distilled spirits or wines and 

sells beer or offers beer for sale only as 

provided in § 31.61 through § 31.63 or 

§ 31.65(a). 

(26 U.S.C. 5122) 

§ 31.34 Wholesale dealer in beer. 

(a) General. Except as otherwise 

provided in paragraph (b) of this 

section, every person who sells or offers 

for sale beer, but not distilled spirits or 

wines, to another dealer is a wholesale 

dealer in beer for purposes of this part. 

Every wholesale dealer in beer must 

comply with the registration and other 

requirements of this part, unless the 

dealer is covered by an applicable 

exemption under subpart D of this part. 

(b) Persons not deemed to be 

wholesale dealers in beer. The following 

persons are not wholesale dealers in 

beer within the meaning of this part: 

(1) A person who does not sell or offer 

for sale distilled spirits or wines and 

sells beer or offers beer for sale only as 

provided in §§ 31.61 through 31.63, 

§ 31.65(a), § 31.66, or § 31.67; or 

(2) A person returning beer for credit, 

refund or exchange as provided in 

§ 31.56. 


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(26 U.S.C. 5121) 

§ 31.35 Limited retail dealer; persons 

eligible. 

Any person selling distilled spirits, 

beer, or wine, or any combination 

thereof, to members, guests, or patrons 

of bona fide fairs, reunions, picnics, 

carnivals, or similar outings, and any 

fraternal, civic, church, labor, 

charitable, benevolent, or exservicemen’s organization selling 

distilled spirits, beer, or wine, or any 

combination thereof, on the occasion of 

any kind of entertainment, dance, 

picnic, bazaar, or festival held by it, is 

a ‘‘limited retail dealer’’ if the person or 

organization is not otherwise engaged in 

business as a dealer. 

(26 U.S.C. 5122) 

§ 31.36 Sales of 20 wine gallons (75.7 

liters) or more. 

Any person who sells or offers for sale 

distilled spirits, wines, or beer, in 

quantities of 20 wine gallons (75.7 

liters) or more, to the same person at the 

same time, shall be presumed and held 

to be a wholesale dealer in liquors or a 

wholesale dealer in beer, as the case 

may be, unless the seller shows by 

satisfactory evidence that the sale, or 

offer for sale, was made to a person 

other than a dealer. 

(26 U.S.C. 5121) 

Certain Organizations, Agencies, and 

Persons 

§ 31.41 Clubs or similar organizations. 

(a) Subject to paragraph (b) of this 

section, a club or similar organization is 

a dealer for purposes of this part if the 

club or organization: 

(1) Furnishes liquors to members 

under conditions constituting a sale 

(including the acceptance of orders 

therefor, furnishing the liquors ordered 

and collecting the price thereof); or 

(2) Conducts a bar for the sale of 

liquors on the occasion of an outing, 

picnic, or other entertainment, unless 

the club is a ‘‘limited retail dealer’’ 

described in § 31.35. The registration of 

the proprietor of the premises where the 

bar is located will not relieve the club 

or organization from its own obligation 

to register; or 

(3) Purchases liquors for members 

without prior agreement concerning 

payment therefor and such organization 

subsequently recoups those costs. 

(b) Compliance with the registration 

and other requirements of this part is 

not required if money is collected in 

advance from members for the purchase 

of liquors, or if money is advanced for 

the purchase of liquors pursuant to an 

agreement with the members for 

reimbursement. 

(26 U.S.C. 5122) 

§ 31.42 Restaurants serving liquors with 

meals. 

Proprietors of restaurants and other 

persons who serve liquors with meals to 

paying customers, even if no separate or 

specific charge for the liquors is made, 

are dealers subject to the provisions of 

this part. 

(26 U.S.C. 5122) 

§ 31.43 States, political subdivisions of 

States, or the District of Columbia. 

A State, a political subdivision of a 

State, or the District of Columbia, that 

engages in the business of selling, or 

offering for sale, distilled spirits, wines, 

or beer is not exempt from the 

requirements of this part. However, no 

such governmental entity shall be 

required to register more than once as a 

retail dealer in liquors regardless of the 

number of locations at which the entity 

carries on business as a retail dealer in 

liquors. Any such governmental entity 

that has properly registered as a 

wholesale dealer at its principal office, 

and that has properly registered once as 

a retail dealer in liquors or beer, is not 

required to register again at its retail 

stores by reason of the sale of distilled 

spirits, wines, or beer at any of those 

locations to dealers qualified to do 

business as a dealer within the 

jurisdiction of that governmental entity. 

(26 U.S.C. 5121) 

§ 31.44 Sales of denatured spirits or 

articles. 

It is illegal to sell denatured spirits, or 

any article containing denatured spirits, 

for beverage purposes. Any person who 

sells denatured spirits, or any substance 

or preparation made with or containing 

denatured spirits, for use, or for sale for 

use, for beverage purposes, or who sells 

any such products under circumstances 

in which it might reasonably appear that 

it is the intention of the purchaser to 

procure the same for sale or use for 

beverage purposes, is subject to the 

registration and other requirements of 

this part. 

(26 U.S.C. 5273) 

§ 31.45 Sales of alcoholic compounds, 

preparations, or mixtures containing 

distilled spirits, wines, or beer. 

(a) General. Compliance with the 

provisions of this part is required with 

respect to the sale, or offering for sale, 

of alcoholic compounds, preparations, 

or mixtures containing distilled spirits, 

wines, or beer, unless those compounds, 

preparations, or mixtures are unfit for 

use for beverage purposes and are sold 

solely for use for nonbeverage purposes. 

(b) Products unfit for beverage use. 

Products described in § 19.58 of this 

chapter, for which manufacturers are 

exempt from qualification requirements, 

shall be deemed to be unfit for beverage 

purposes for the purposes of this part. 

§ 31.46 Sales by agencies and 

instrumentalities of the United States. 

Unless specifically exempt by statute, 

any agency or instrumentality of the 

United States, including post exchanges, 

ship’s stores, ship’s service stores, and 

commissaries, or any canteen, club, 

mess, or similar organization operated 

under regulations of any such agency or 

instrumentality, that sells, or offers for 

sale, distilled spirits, wines, or beer 

must comply with the registration and 

other requirements of this part as a 

dealer in liquors or a dealer in beer, as 

the case may be. 

(26 U.S.C. 5121, 5122) 

§ 31.47 Warehouse receipts covering 

spirits. 

The sale of warehouse receipts for 

distilled spirits is equivalent to the sale 

of distilled spirits. Accordingly, every 

person who sells, or offers for sale, 

warehouse receipts for distilled spirits 

held or stored in a distilled spirits plant, 

customs bonded warehouse, or 

elsewhere, is required to register and 

keep records as a wholesale dealer in 

liquors, or as a retail dealer in liquors, 

as the case may be, at the place where 

those warehouse receipts are sold, or 

offered for sale, unless the person is 

exempt from those requirements under 

subpart D of this part. 

(26 U.S.C. 5121, 5122) 

§ 31.48 Alcohol beverage producers, 

processors, and bonded warehousemen. 

Brewers and proprietors of distilled 

spirits plants, bonded wine cellars, 

bonded wine warehouses, and taxpaid 

wine bottling houses who make sales, 

whether of their own alcohol beverage 

products or of such products produced 

by others, are not exempt from 

registration and recordkeeping as 

dealers under this part. However, the 

registration and recordkeeping 

requirements applicable to such persons 

are prescribed in parts 19 (Distilled 

Spirits Plants), 24 (Wine), and 25 (Beer) 

of this chapter. 

Subpart D—Exemptions and 

Exceptions 

Persons Exempt From Registration and/ 

or Recordkeeping 

§ 31.51 Wholesale dealers making retail 

sales. 

A wholesale dealer in liquors who 

sells, or offers for sale, distilled spirits, 


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wines, or beer, and a wholesale dealer 

in beer who sells, or offers for sale, only 

beer, whether to dealers or to persons 

other than dealers, at any place where 

the wholesale dealer in liquors or beer 

has appropriately registered under this 

part, is exempt from registration at that 

place as a retail dealer in liquors or in 

beer. 

§ 31.52 Wholesale dealers in liquors 

consummating sales of wines or beer at 

premises of other dealers. 

(a) Sales of wines. Any wholesale 

dealer in liquors (including the 

proprietor of a bonded wine cellar) who 

has registered as a wholesale dealer in 

liquors for the place from which that 

dealer conducts selling operations may 

consummate sales of wines to other 

wholesale or retail dealers in liquors, or 

to limited retail dealers, at the 

purchasers’ places of business without 

having to register again as a wholesale 

dealer on account of those sales. 

(b) Sales of beer. Any wholesale 

dealer in liquors who has already 

registered as such may also consummate 

sales of beer to wholesale or retail 

dealers in beer, to wholesale or retail 

dealers in liquors, or to limited retail 

dealers, at the purchasers’ place of 

business without having to register 

again as a wholesale dealer on account 

of those sales. 

§ 31.53 Wholesale dealers in beer 

consummating sales at premises of other 

dealers. 

Any dealer who has registered as a 

wholesale dealer in beer for the place 

from which that dealer conducts selling 

operations may consummate sales of 

beer (but not wines or distilled spirits) 

to other dealers at the purchasers’ places 

of business without having to register 

again as a wholesale dealer on account 

of those sales. 

§ 31.54 Hospitals. 

Hospitals and similar institutions 

furnishing liquors to patients are not 

required to register or keep records 

under this part, provided that no 

specific or additional charge is made for 

the liquors so furnished. 

§ 31.55 Limited retail dealers. 

(a) Sales by limited retail dealers. 

Limited retail dealers, as described in 

§ 31.35, are not required to register or 

keep records under this part. 

(b) Sales to limited retail dealers. 

Retail dealers in liquors or beer who 

make sales at their registered places of 

business to limited retail dealers are not 

required under this part, solely by virtue 

of those sales, to register or keep records 

as wholesale dealers. 

Persons Who Are Not Dealers in 

Liquors or Beer 

§ 31.61 Single sale of liquors or 

warehouse receipts. 

A single sale of distilled spirits, 

wines, or beer, or a single sale of one or 

more warehouse receipts for distilled 

spirits, unattended by circumstances 

showing the person making the sale to 

be engaged in that activity as a business, 

does not subject the vendor to the 

registration and other requirements of 

this part. 

(26 U.S.C. 5121, 5122) 

§ 31.62 Persons making casual sales. 

Certain persons making casual sales of 

liquors are not dealers for purposes of 

this part and therefore are not required 

to register, keep records, or submit a 

report as required of dealers under this 

part. These persons are: 

(a) Administrators, executors, 

receivers, and other fiduciaries who 

receive liquors in their fiduciary 

capacities and sell them in one parcel or 

at public auction in parcels of not less 

than 20 wine gallons (75.7 liters); 

(b) Creditors who receive liquors as 

security for, or in payment of, debts and 

sell them in one parcel or at a public 

auction in parcels of not less than 20 

wine gallons (75.7 liters); 

(c) Public officers or court officials 

who levy on liquors under order or 

process of any court or magistrate and 

sell them in one parcel or at public 

auction in parcels of not less than 20 

wine gallons (75.7 liters); and 

(d) A retiring partner, or 

representative of a deceased partner, 

who sells liquors to the incoming or 

remaining partner, or partners, of a 

partnership. 

§ 31.63 Agents, auctioneers, brokers, etc., 

acting on behalf of others. 

Certain persons may sell liquors as 

agents or employees of others 

(principals), or may receive and 

transmit orders therefor to a dealer, 

without being considered a dealer on 

account of those activities. Those 

persons, who have no property rights in 

the liquors sold, may make collections 

for their principals and receive 

commissions for their services, or may 

guarantee the payment of accounts, 

without being required to register or 

keep records under this part. In all such 

cases, however, the principal is required 

to register and keep records, as provided 

in this part, at each place where sales 

are consummated, unless the principal 

is exempt from those requirements 

under the provisions of this subpart. 

The persons covered by this section are: 

(a) Auctioneers who merely sell 

liquors at auction on behalf of others; 

(b) Agents or brokers who solicit 

orders for liquors in the name of a 

principal, but who neither stock nor 

deliver the liquors for which orders are 

taken; 

(c) Employees who merely sell liquors 

on behalf of their employers; and 

(d) Retail dealers in liquors or retail 

dealers in beer who merely receive and 

transmit to a wholesale dealer orders for 

liquors or beer to be billed, charged, and 

shipped to customers by such wholesale 

dealers. 

§ 31.64 Apothecaries or druggists selling 

medicines and tinctures. 

Apothecaries and druggists who use 

wines or spirituous liquors for 

compounding medicines and in making 

tinctures that are unfit for use for 

beverage purposes are not considered to 

be dealers by reason of the sale of those 

compounds or tinctures for nonbeverage 

purposes. 

(26 U.S.C. 5002) 

§ 31.65 Persons selling products unfit for 

beverage use. 

(a) Vendors not deemed to be dealers. 

No person selling or offering for sale for 

nonbeverage purposes products 

qualifying as unfit for use for beverage 

purposes under § 19.58 of this chapter 

shall be deemed, solely by reason of 

such sales, to be a dealer. 

(b) Restrictions. Any person who sells 

or offers for sale any nonbeverage 

products for use, or for sale for use, for 

beverage purposes, or who sells any of 

such products under circumstances in 

which it might reasonably appear that it 

is the intention of the purchaser to 

procure the product for sale or use for 

beverage purposes, must register and 

keep records as required under this part 

as a wholesale dealer in liquors, retail 

dealer in liquors, wholesale dealer in 

beer, or retail dealer in beer, as 

appropriate. 

§ 31.66 Retail dealer selling entire stock in 

liquidation. 

No retail dealer in liquors or retail 

dealer in beer shall be deemed to be a 

wholesale dealer in liquors or a 

wholesale dealer in beer by virtue of 

selling in liquidation that dealer’s entire 

stock of liquors in one parcel, or in 

parcels, each of which embraces not less 

than the entire stock of distilled spirits, 

of wines, or of beer, which parcels may 

contain a combination of any or all such 

liquors, to any other dealer. A retail 

dealer making such sale or sales is not 

required to register or to keep records or 

submit reports of those sales. 


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§ 31.67 Persons returning liquors for 

credit, refund, or exchange. 

No retail dealer in liquors or retail 

dealer in beer, or other person, shall be 

deemed to be a wholesale dealer in 

liquors or a wholesale dealer in beer by 

virtue of a bona fide return of distilled 

spirits, wines, or beer to the dealer from 

whom the distilled spirits, wines, or 

beer were purchased (or to the successor 

of such vendor’s business or line of 

merchandise) for credit, refund, or 

exchange; and the giving of such credit, 

refund or exchange shall not be deemed 

to be a purchase within the meaning of 

§ 31.141 of this part. Except in the case 

of wholesale dealers in liquors required 

to keep records of their transactions 

under §§ 31.155 and 31.156, or retail 

dealers required to keep records under 

§ 31.171, persons returning liquors as 

provided in this section are not required 

to keep records or submit reports of 

such transactions. 

(26 U.S.C. 5132) 

Subpart E—Places Subject to 

Registration 

§ 31.71 Registration required at each place 

of business. 

Except as otherwise provided in 

§ 31.43 and in subpart D of this part, 

registration is required under this part 

for each and every place where distilled 

spirits, wines, or beer are sold or offered 

for sale. No person may engage in any 

business for which registration is 

required until the place of business has 

been registered in accordance with this 

part. 

§ 31.72 Place of sale. 

For purposes of this part, the place at 

which ownership of liquors is 

transferred, actually or constructively, is 

the place of sale. 

§ 31.73 Place of offering for sale. 

Liquors are considered to be offered 

for sale at the place where they are kept 

for sale and where a sale could take 

place, and at any place where sales are 

in fact consummated. Liquors are not 

considered to be offered for sale by 

sending an agent out to take orders, or 

by establishing an office for the mere 

purpose of taking orders, so long as in 

each case the orders received are 

transmitted to the principal for 

acceptance at the place where that 

principal has registered under this part 

or where the principal is exempt from 

registration as provided in subpart D of 

this part. 

§ 31.74 Places of storage; deliveries 

therefrom. 

Registration is not required under this 

part for warehouses and similar places 

that are used by dealers merely for the 

storage of liquors and that are not places 

where orders for liquors are accepted. 

When orders for liquors are received 

and duly accepted at a place that the 

dealer has registered under this part, the 

subsequent actual delivery of the liquors 

from a place of storage does not require 

registration at that place of storage. 

Except as otherwise provided in 

§§ 31.52 and 31.53, a dealer who 

registered a given place, and who makes 

actual delivery of liquors from a 

warehouse at another place, must 

register for the place where ownership 

of the liquors is transferred if there was 

no prior constructive delivery by the 

acceptance of an order for the liquors at 

the place covered by the existing 

registration. 

§ 31.75 Dealer in beer and dealer in liquors 

at the same location. 

Any person who registers as a 

wholesale dealer in beer or retail dealer 

in beer and who thereafter begins to sell 

distilled spirits or wine must also 

register as a wholesale dealer in liquors 

or retail dealer in liquors before 

commencing the sale, or offering for 

sale, of distilled spirits or wine. 

(26 U.S.C. 5124) 

Sales in Two or More Areas on the 

Same Premises 

§ 31.81 General. 

When liquors are sold by a proprietor 

in two or more areas within the 

proprietor’s place of business, only one 

registration is required under this part. 

When the proprietor leases to another 

person or persons the privilege of 

selling liquors in two or more areas 

within the proprietor’s place of 

business, whether the privilege is 

exercised separately or simultaneously 

with the proprietor or another 

concessionaire, each lessee is required 

to register only once. 

§ 31.82 Hotels. 

The proprietor of a hotel who 

conducts the sale of liquors throughout 

the hotel premises is only required to 

register under this part for one place. 

For example, different areas operated by 

the proprietor in the hotel, such as 

banquet rooms, meeting rooms, and 

guest rooms, collectively constitute a 

single place of business. When a 

concessionaire conducts the sale of 

liquors at two or more areas in a hotel, 

those areas are regarded as a single 

place of business, and the 

concessionaire is required to register 

only once. 

§ 31.83 Ball park, race track, etc.; sales 

throughout the premises. 

The proprietor of a ball park, race 

track, stadium, pavilion, or other similar 

enclosure constituting one premises, 

who engages in the business of selling 

liquors throughout that enclosure, 

including sales from baskets or 

containers by employees on the 

proprietor’s behalf, is required to 

register only once for the entire 

enclosure. Each concessionaire having 

the same privilege throughout the 

enclosure, whether the privilege is 

exercised separately or simultaneously 

with the proprietor or another 

concessionaire, is required to register 

only once for the entire enclosure. 

Sales in Multiple Locations 

§ 31.91 Passenger trains, aircraft, and 

vessels. 

Persons who carry on the business of 

a retail dealer in liquors or of a retail 

dealer in beer on trains, aircraft, boats, 

or other conveyances engaged in the 

business of carrying passengers may 

conduct that business throughout the 

passenger carrying train, aircraft, boat, 

or other vessel, after filing only one 

registration under this part. Such 

persons must specify on the registration 

form the number of passenger carriers 

for which registration is being 

completed. 

§ 31.92 Carriers not engaged in passenger 

service. 

Except as otherwise provided in 

§ 31.93, the retailing of liquors on any 

train, aircraft, boat, or other conveyance 

that is not engaged in the business of 

carrying passengers is prohibited. 

§ 31.93 Supply boats or vessels. 

Persons may carry on the business of 

a retail dealer in liquor or of a retail 

dealer in beer on supply boats or vessels 

operated by them when those persons 

operate from a fixed address in a port 

or harbor and supply exclusively boats 

or other vessels, or persons thereon, at 

that port or harbor. Such persons must 

specify, on an attachment to the 

registration form, the following: that the 

business will consist of supplying 

exclusively boats, vessels, or persons 

thereon; the name of the port or harbor 

at which the business is to be carried 

on; and the fixed address from which 

operations are to be conducted. When 

such sales are to be made from two or 

more supply boats or vessels, the dealer 

must also specify on the attachment the 

number of supply boats or vessels for 

which registration is being made. If the 

dealer operates from two or more fixed 

addresses, the dealer must prepare one 

registration form covering all of those 


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addresses and must include on the 

attachment to the registration form the 

number of supply boats or vessels 

operating from each address. 

§ 31.94 Retail dealers ‘‘At Large.’’ 

A retail dealer in liquors or a retail 

dealer in beer whose business requires 

the dealer to travel from place to place, 

such as a dealer who sells at carnivals 

or circuses, must register ‘‘At Large’’ 

covering the dealer’s activities 

throughout the United States by filing 

only one registration. A dealer 

submitting such a registration must state 

on the registration form, or on an 

attachment thereto, the nature of the 

dealer’s business and the reason the 

dealer requires registration ‘‘At Large.’’ 

§ 31.95 Caterers. 

(a) General. When a contract to 

furnish liquors is made by a caterer at 

a place of business for which the caterer 

has registered under this part, no 

additional registration is required by 

virtue of the serving of the liquors at a 

different location. 

(b) Additional registration. When the 

contract of a caterer provides for the sale 

of liquors by the drink at a place, or 

simultaneously at different places, other 

than the place of business for which the 

caterer has registered under this part, a 

separate registration is required for each 

such place if the caterer does not keep 

the records specified in paragraph (c) of 

this section. 

(c) Records. Caterers must maintain 

sufficient commercial records to 

identify all locations where activities 

subject to registration occur. These 

commercial records must indicate the 

names and addresses of locations where 

alcoholic beverages have been sold or 

offered for sale and the dates and times 

that those activities occurred. These 

commercial records must be available to 

an appropriate TTB officer upon 

request. 

(26 U.S.C. 5121, 5122) 

§ 31.96 Peddling. 

No person shall peddle distilled 

spirits, wines, or beer, except in the 

circumstances described in §§ 31.52, 

31.53, and 31.93. Persons peddling 

liquors to whom §§ 31.52, 31.53, and 

31.93 do not apply are required to 

register at each place where sales are 

consummated. 

Subpart F—Partnerships 

§ 31.101 Registration of partners. 

Any number of persons carrying on 

one business in partnership at any one 

place must register only once for that 

business. 

§ 31.102 Addition of partners or 

incorporation of partnership. 

Where a number of persons who have 

filed a registration under this part as 

partners admit one or more new 

members to the partnership or form a 

corporation (a separate legal entity) to 

take over the business, the new 

partnership or corporation must register 

as a new dealer before commencing 

business. 

(26 U.S.C. 5121, 5122, 5124) 

§ 31.103 Formation of a partnership by two 

dealers. 

Where two persons form a partnership 

after each has registered for a business 

carried on by himself, the partnership 

must register as a new dealer to cover 

the business conducted by the 

partnership. 

(26 U.S.C. 5121, 5122, 5124) 

§ 31.104 Withdrawal of one or more 

partners. 

When one or more partners withdraw 

from a partnership that has registered 

under this part, the remaining partner, 

or partners, must register the change in 

control by filing an amended 

registration form on or before the 

following July 1. 

Subpart G—Registration Form, TTB F 

5630.5d 

§ 31.111 Date registration form is due. 

(a) General. Dealers must register by 

filing the registration form, TTB Form 

5630.5d, before engaging in business 

and on or before July 1 of each year 

thereafter. However, as long as none of 

the information specified on the form 

has changed since the previous 

registration form was filed, no 

additional registration is required. If the 

registration form is received in the mail 

and the U.S. postmark on the cover 

shows that it was deposited in the mail 

in the United States within the time 

prescribed for filing in an envelope or 

other appropriate wrapper that was 

properly addressed with postage 

prepaid, the form will be considered as 

timely filed. If the postmark is not 

legible, the sender has the burden of 

proving the date when the postmark was 

made. When registered mail is used, the 

date of postal registration will be 

accepted as the postmark date. 

(b) Transition rule. Dealers already 

engaged in business prior to July 1, 

2008, must register as an ‘‘existing 

business’’ unless they had registered, in 

accordance with regulations in effect at 

the time of registration, on or after 

January 1, 2007. This one-time 

registration is due on or before July 1, 

2009. 

(26 U.S.C. 6071) 

§ 31.112 Registration of multiple locations. 

A dealer required to register at two or 

more locations shall file one registration 

form, prepared as provided in 

§ 31.114(c), to cover all such locations. 

§ 31.113 Place for filing registration form. 

The registration form, TTB Form 

5630.5d, must be filed with TTB in 

accordance with the instructions on the 

form. 

§ 31.114 Completion of registration form. 

(a) General. Dealers must register by 

filing the registration form, TTB Form 

5630.5d, Alcohol Dealer Registration. 

The registration form must be filed with 

TTB in accordance with this subpart 

and the instructions on the form. 

(b) Preparation of TTB Form 5630.5d. 

All of the information called for on TTB 

Form 5630.5d must be provided. This 

information includes the following: 

(1) The true name of the dealer. 

(2) The trade name(s) (if any) of the 

business(es) subject to the registration 

requirement. 

(3) The employer identification 

number (see § 31.115). 

(4) The mailing address of the dealer’s 

principal place of business (or principal 

office, in the case of a corporate dealer). 

(5) The exact location of each place of 

business, by name and number of 

building or street, or if these do not 

exist, by some specific description in 

addition to the post office address. 

(6) The business telephone number of 

each place of business. 

(7) The class(es) of dealer in which 

the dealer operates a business. 

(8) Ownership and control 

information. This consists of the name, 

position, and residence address of every 

owner of the business and of every 

person having power to control its 

management and policies with respect 

to the activity subject to registration. 

‘‘Owner of the business’’ includes every 

partner, if the dealer is a partnership, 

and every person owning 10 percent or 

more of its stock, if the dealer is a 

corporation. However, the ownership 

and control information required by this 

paragraph need not be stated if the same 

information has been previously 

provided to TTB and that previously 

provided information is still current. 

(c) Multiple locations and/or classes 

of dealers. A dealer required to register 

at more than one location or for more 

than one class of dealers must— 

(1) File one registration form, TTB 

Form 5630.5d, to cover all locations and 

classes of dealers; and 

(2) Prepare, on the form, or on an 

attachment identified with the 


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taxpayer’s name, mailing address (as 

shown on TTB Form 5630.5d), and 

employer identification number, a list 

showing, by States, the trade name, 

address, telephone number, and dealer 

class of each location for which 

registration is being made. The original 

of the list must be filed with TTB on or 

with the registration form, and a copy 

must be retained at the dealer’s 

principal place of business (or principal 

office, in the case of a corporate dealer) 

for the period specified in § 31.191. 

(26 U.S.C. 7805) 

§ 31.115 Employer identification number. 

(a) Requirement. The employer 

identification number (as defined in 26 

CFR 301.7701–12) of a dealer who has 

been assigned such a number must be 

shown on each registration form filed 

under this part. A dealer who does not 

have such a number must apply for one 

as provided in paragraph (b) of this 

section and enter ‘‘number applied for’’ 

in the space for the number on the 

registration form; then, upon receipt of 

the number from the Internal Revenue 

Service, the dealer must provide it to 

TTB by separate correspondence. 

Failure of a dealer to include the 

employer identification number may 

result in the imposition of the penalty 

specified in § 31.14(b). 

(b) Application for employer 

identification number. Each dealer who 

files a registration form and who has not 

already been assigned an employer 

identification number must file Internal 

Revenue Service (IRS) Form SS–4 to 

apply for one. The dealer shall apply for 

and be assigned only one employer 

identification number, regardless of the 

number of places of business for which 

the dealer is required to file a 

registration form under this part. The 

employer identification number shall be 

applied for no later than 7 days after the 

filing of the taxpayer’s first registration 

form. IRS Form SS–4 may be obtained 

from the director of an IRS service 

center, from any IRS district director, 

from http://www.irs.gov/, or from TTB’s 

National Revenue Center. 

(26 U.S.C. 6109) 

§ 31.116 Execution of registration form. 

The registration of an individual 

proprietor shall be signed by the 

proprietor, the registration of a 

partnership shall be signed by a member 

of the firm, and the registration of a 

corporation shall be signed by a duly 

authorized officer thereof; however, any 

individual, partnership, or corporation 

that is a proprietor may appoint an 

agent to sign on the proprietor’s behalf. 

The person signing the registration form 

must identify his or her signing capacity 

as ‘‘individual owner,’’ ‘‘member of 

firm,’’ ‘‘agent,’’ or ‘‘attorney-in-fact,’’ as 

appropriate, or, in the case of a 

corporation, by the title of the signing 

officer. A receiver, trustee, assignee, 

executor, administrator, or other legal 

representative who continues the 

business of a dealer by reason of death, 

insolvency, or other circumstance must 

indicate the fiduciary capacity in which 

he or she acts. Registration forms signed 

by persons as agents or attorneys-in-fact 

will not be accepted unless, in each 

instance, the principal named on the 

form has executed a power of attorney 

authorizing that person to sign and that 

power of attorney is filed with the TTB 

officer with whom the TTB Form 

5630.5d is required to be filed. Form 

5630.5d must be verified by a written 

declaration that it has been executed 

under the penalties of perjury. 

(26 U.S.C. 6061, 6065) 

Subpart H—Changes in Registration 

Information 

Changes Requiring Registration as a 

New Business 

§ 31.121 Sale of business. 

Under this part, registration is 

personal to the one who registered and 

is not transferable from one dealer to 

another. Where a change occurs in the 

proprietorship of a business for which 

registration has been completed, the 

successor must register as a new 

business. 

(26 U.S.C. 5124) 

§ 31.122 Incorporation of business. 

Where an individual or a firm 

engaged in business requiring 

registration under this part forms a 

corporation to take over and conduct the 

business, the corporation, as a separate 

legal entity, must register in its own 

name as a new business. 

(26 U.S.C. 5124) 

§ 31.123 New corporation. 

Where a new corporation is formed to 

take over and conduct the business of 

one or more corporations that have 

registered under this part, the new 

corporation must register in its own 

name as a new business. 

(26 U.S.C. 5124) 

§ 31.124 Stockholder continuing business 

of corporation. 

A registration completed by a 

corporation as a dealer in liquors, or as 

a dealer in beer, cannot cover the same 

business carried on by one or more of 

its stockholders after dissolution of the 

corporation. The stockholder(s) must 

register as a new business. 

(26 U.S.C. 5124) 

§ 31.125 Cross references. 

See also §§ 31.75, 31.102, and 31.103 

for other situations requiring 

registration as a new dealer. 

Other Changes 

§ 31.131 Change of address. 

(a) General. A dealer who removes the 

business to a place other than that for 

which the dealer is registered must 

register the change with TTB by filing 

an amended registration form, TTB 

Form 5630.5d, on or before the next July 

1 following the change. 

(b) Caterers. A caterer who sells liquor 

by the drink at locations other than his 

or her principal place of business shall 

not be required to provide the change of 

location registration prescribed in 

paragraph (a) of this section for those 

catering activities, provided that the 

caterer maintains the records required 

by § 31.95(c). For a permanent change in 

location of the principal place of 

business, the caterer must file an 

amended registration form in 

accordance with paragraph (a) of this 

section. 

§ 31.132 Change in name or style of 

business. 

A dealer who has registered for a 

business at a given location must 

complete an amended registration, and 

submit it on or before the next July 1, 

to report a change in the name or style 

(trade name) under which the dealer 

conducts that business. 

§ 31.133 Change in management. 

A change in management that 

involves no change in ownership of the 

business requires an amended 

registration only if the change involves 

a person who is responsible for 

controlling the management policies or 

buying or selling practices of the 

business pertaining to alcohol 

beverages. The amended registration 

must be submitted on TTB Form 

5630.5d on or before the next July 1 

following the change. 

(26 U.S.C. 5124) 

§ 31.134 Increase in capital stock of a 

corporation. 

An amended registration is not 

required by reason of an increase in the 

capital stock of a corporation so long as 

a new corporation is not created under 

the laws of the State of incorporation 

and provided that the change does not 

alter the list of stockholders owning 10 

percent or more of the capital stock. 

(26 U.S.C. 5121, 5122, 5124) 


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§ 31.135 Change in ownership of capital 

stock. 

Registration as a new business is not 

required merely by reason of the sale or 

transfer of all or a controlling interest in 

the capital stock of a corporation. 

However, an amended registration is 

required if the sale or transfer alters the 

list of stockholders owning 10 percent 

or more of the capital stock. The 

amended registration must be filed on or 

before the next July 1 following the sale 

or transfer. 

§ 31.136 Change in membership of 

unincorporated club. 

Registration of an unincorporated 

club is not required by reason of 

changes in membership, when those 

changes do not result in the dissolution 

of the club and the formation of a new 

club, unless the changes involve a 

person with the power to control the 

management policies or buying or 

selling practices pertaining to alcohol. 

In the latter case, the filing of an 

amended registration is required on or 

before the next July 1. 

§ 31.137 Withdrawal of partner(s). 

Withdrawal of partner(s) requires an 

amended registration. See § 31.104. 

§ 31.138 Discontinuance of business. 

A dealer going out of business must 

register that event within 30 days by 

filing a registration form, TTB Form 

5630.5d, in accordance with 

instructions on the form. 

Subpart I—Restrictions Relating to 

Purchases of Distilled Spirits 

§ 31.141 Unlawful purchases of distilled 

spirits. 

(a) General. It is unlawful for any 

dealer to purchase distilled spirits for 

resale from any person other than: 

(1) A wholesale dealer (including a 

State, a political subdivision of a State, 

the District of Columbia, and a distilled 

spirits plant) who is required to keep 

records under §§ 31.151 through 31.163 

pertaining to the place where the 

distilled spirits are purchased; 

(2) A retail liquor store operated by a 

State, a political subdivision of a State, 

or the District of Columbia; or 

(3) A person not required to register 

as a wholesale liquor dealer, as 

provided in §§ 31.62, 31.63, 31.66, and 

31.67. 

(b) Special provision for limited retail 

dealers. A limited retail dealer may 

purchase distilled spirits from a retail 

dealer in liquors for resale. 

(26 U.S.C. 5132) 

Subpart J—Records and Reports 

Wholesale Dealers’ Records and 

Reports 

§ 31.151 General requirements as to 

distilled spirits. 

Except as otherwise provided in 

§§ 31.153 and 31.154, every wholesale 

dealer in liquors must keep daily 

records of the physical receipt and 

disposition of distilled spirits in 

accordance with §§ 31.155 and 31.156. 

When required in writing by the 

appropriate TTB officer, a wholesale 

dealer in liquors must also prepare and 

file a monthly summary report totaling 

the daily receipts and disposition of 

distilled spirits in accordance with 

§ 31.160. 

(26 U.S.C. 5121) 

§ 31.152 Requirements as to wines and 

beer. 

Every wholesale dealer in liquors who 

receives wines, or wines and beer, and 

every wholesale dealer in beer must 

keep at the dealer’s place of business a 

complete record showing the quantities 

of wine and beer received, from whom 

the wine and beer were received, and 

the dates of receipt. This record, which 

must be kept for a period of not less 

than three years as prescribed in 

§ 31.191, shall consist of all purchase 

invoices or bills covering wines and 

beer received or, at the option of the 

dealer, a book record containing all of 

the required information. Wholesale 

dealers are not required to prepare or 

submit reports to the appropriate TTB 

officer of transactions relating to wines 

and beer. 

(Approved by the Office of Management and 

Budget under control number 1513–0065) (26 

U.S.C. 5121) 

§ 31.153 Records to be kept by States, 

political subdivisions of States, or the 

District of Columbia. 

The provisions of this subpart 

regarding the maintenance of records 

and the submission of reports shall not 

apply to States, political subdivisions of 

States, or the District of Columbia, or to 

any liquor stores operated by such 

entities that maintain, and make 

available for inspection by appropriate 

TTB officers, records that will enable 

TTB to verify receipts of wines and beer 

and to trace readily all distilled spirits 

received and disposed of by those 

entities. However, States, political 

subdivisions of States, and the District 

of Columbia, and liquor stores operated 

by such entities, must, on request of the 

appropriate TTB officer, furnish such 

transcripts, summaries, and copies of 

records with respect to distilled spirits 

as that TTB officer may require. 

(26 U.S.C. 5121) 

§ 31.154 Records to be kept by alcohol 

beverage producers, processors, and 

bonded warehousemen. 

Wholesale liquor dealer operations 

conducted by brewers and by 

proprietors of distilled spirits plants, 

bonded wine cellars, bonded wine 

warehouses, and taxpaid wine bottling 

houses must be recorded and reported 

in accordance with the applicable 

provisions of parts 19, 24, and 25 of this 

chapter. To the extent that the same 

transactions are required to be recorded 

or reported by this part and by part 19, 

24, or 25, the records and reports 

required by those parts will satisfy the 

requirements of this part. 

(26 U.S.C. 5207, 5367, 5415) 

§ 31.155 Records of receipt. 

(a) Information required. Every 

wholesale dealer in liquors must 

maintain a daily record of the physical 

receipt of each individual lot or 

shipment of distilled spirits. This record 

must show, at a minimum, the 

following: 

(1) Name and address of consignor; 

(2) Date of receipt, including date of 

inventory for recorded gains; 

(3) Brand name; 

(4) Name of producer or bottler. 

However, this may be omitted if the 

dealer keeps available for inspection a 

separate list or record identifying the 

producer or bottler with the brand 

name; 

(5) Kind of spirits. However, this may 

be omitted if the dealer keeps available 

for inspection a separate list or record 

identifying ‘‘kind’’ with the brand name; 

(6) Quantity actually received, 

showing number of packages, if any, 

and number of cases by size of bottle, 

and explaining any difference from the 

quantity shown on the commercial 

papers covering the shipment; and 

(7) Package identification numbers of 

containers of alcohol received for 

repackaging for industrial use pursuant 

to subpart L of this part. 

(b) Form of record. The record 

required by paragraph (a) of this section 

must be a part of the accounting system 

and must consist of consignors’ invoices 

(or, if those invoices are not available on 

the day the shipment is received, 

memorandum receiving records 

prepared on the day of receipt of the 

distilled spirits, including records of 

inventory for recorded gains) and credit 

memorandums covering distilled spirits 

returned to the dealer. 

(Approved by the Office of Management and 

Budget under control number 1513–0065) (26 

U.S.C. 5121) 


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§ 31.156 Records of disposition. 

(a) Information required. Every 

wholesale dealer in liquors must 

prepare a daily record of the physical 

disposition of each individual lot of 

distilled spirits. This record must show, 

at a minimum, the following: 

(1) Name and address of consignee; 

(2) Date of disposition, including date 

of discovery in the case of casualty, theft 

or recorded inventory losses; 

(3) Brand name; 

(4) Kind of spirits. However, this may 

be omitted if the dealer keeps available 

for inspection a separate list or record 

identifying ‘‘kind’’ with the brand name; 

(5) Number of packages, if any, and 

number of cases by size of bottle; and 

(6) Package identification numbers of 

containers of alcohol repackaged for 

industrial use pursuant to subpart L of 

this part. 

(b) Form of record. The record 

required by paragraph (a) of this section 

must be part of the accounting system 

and must consist of wholesale dealer’s 

invoices (or, if those invoices are not 

available at the time the spirits are 

removed, memorandum shipping 

records prepared at the time of removal 

of the distilled spirits, including date of 

discovery in the case of casualty, theft 

or recorded inventory losses). 

(Approved by the Office of Management and 

Budget under control number 1513–0065) (26 

U.S.C. 5121) 

§ 31.157 Canceled or corrected records. 

Entries on the records of receipt and 

disposition prescribed by §§ 31.155 and 

31.156 must not be erased or obliterated. 

Correction or deletion of any entry must 

be accomplished by drawing a line 

through the entry and inserting an 

appropriate correction or explanation. If 

a wholesale dealer in liquors voids an 

invoice for any reason, the file copy 

prescribed in § 31.181 must be marked 

‘‘Cancelled’’ and must be filed as 

provided in that section; any remaining 

copy of the voided invoice must be 

destroyed or similarly cancelled and 

filed. If a new invoice is prepared, its 

serial number must be cross referenced 

on any retained copies of the cancelled 

invoice. 

(26 U.S.C. 5121) 

§ 31.158 Previously prescribed or 

approved records of receipt and 

disposition. 

A wholesale dealer in liquors may 

continue to use records of receipt and 

disposition in a format previously 

prescribed or approved. Those records 

must show the information required by 

paragraph (a) of § 31.155 or paragraph 

(a) of § 31.156, as applicable. The 

records must be preprinted with the 

name and address of the wholesale 

dealer. Each sheet or page must bear a 

preprinted serial number, or page serial 

numbers may be affixed in unbroken 

sequence during the preparation or 

processing of the records. A serial 

number must not be duplicated within 

a period of 6 months. 

(26 U.S.C. 5121) 

§ 31.159 Variations in format or 

preparation of records. 

(a) Authorization. The appropriate 

TTB officer may approve variations in 

the type and format of records of receipt 

and disposition required under 

§§ 31.155 and 31.156, or in the methods 

of preparing those records, when it is 

shown that variations from the 

requirements are necessary in order to 

use data processing equipment, other 

business machines, or existing 

accounting systems, and provided that 

the variation will not unduly hinder the 

effective administration of this part, 

jeopardize the revenue, or be contrary to 

any provision of law. A dealer who 

wishes to employ such a variation must 

submit a written application to the 

appropriate TTB officer. The application 

must describe the proposed variation 

and set forth the need for it. Variations 

in type and format of records or 

methods of preparation must not be 

employed until approval is received 

from the appropriate TTB officer. 

(b) Requirements. Any information 

required by this part to be kept or filed 

is subject to the provisions of law and 

this part relating to required records and 

reports, regardless of the form or 

manner in which kept or filed. 

(Approved by the Office of Management and 

Budget under control number 1513–0067) 

§ 31.160 Monthly summary report. 

(a) Requirement. Every wholesale 

dealer in liquors must, when required, 

submit monthly to the appropriate TTB 

officer a summary report of the total 

quantities of all distilled spirits received 

and disposed of daily during the month 

(including the date of discovery for 

theft, casualty and inventory losses and 

inventory gains). This report must be 

posted by the wholesaler on a daily 

basis. If there were no receipts or 

disposals of distilled spirits during the 

month, the report must be marked ‘‘No 

Transactions During Month.’’ This 

report must be filed not later than the 

15th day of the month following the 

report period, with a copy retained by 

the dealer. The appropriate TTB officer 

may authorize a dealer, upon request, to 

post the report less frequently until 

otherwise notified; the appropriate TTB 

officer’s authorization will specify the 

intervals at which the posting will be 

accomplished, but not less frequently 

than monthly. 

(b) Form of report. When required 

under paragraph (a) of this section, the 

monthly summary report may be 

prepared in a format that is adapted to 

the dealer’s accounting and 

recordkeeping systems. In addition to 

any other information shown therein, 

the report must include: 

(1) Daily totals of all bottled spirits 

received and disposed of, recorded by 

wine gallons or liters; 

(2) Daily totals of all bulk spirits in 

packages received and disposed of, 

recorded by proof gallons; and 

(3) Entries showing, by date, each 

disposition caused by an inventory, 

casualty, or theft loss and each receipt 

caused by a recorded gain in inventory. 

(c) Declaration. When required to be 

filed, the monthly summary report must 

bear the following declaration signed by 

the dealer or an authorized agent: 

I declare under the penalties of perjury that 

I have examined this report and, to the best 

of my knowledge and belief, it is true, 

correct, and complete and is supported by 

true, correct, and complete records which are 

available for inspection. 

(d) Other records. Even if the monthly 

summary report is not required by the 

appropriate TTB officer, every 

wholesale dealer in distilled spirits 

must maintain and make available for 

review by appropriate TTB officers: 

(1) Records of receipt required by 

§ 31.155; 

(2) Records of disposition, required by 

§ 31.156; and 

(3) Any other supporting information 

or documents regarding the receipt and 

disposition of distilled spirits that have 

a direct role in determining the 

completeness and accuracy of the 

receipt and disposition records. 

(Approved by the Office of Management and 

Budget under control number 1513–0065) (26 

U.S.C. 5121) 

§ 31.161 Conversion between metric and 

U.S. units. 

When liters are converted to wine 

gallons, the quantity in liters must be 

multiplied by 0.264172 to determine the 

equivalent quantity in wine gallons. 

Once converted to wine gallons, the 

proof gallons of spirits in cases must be 

determined as provided in § 30.52 of 

this chapter. Cases containing the same 

quantity of spirits of the same proof in 

metric bottles may be converted to U.S. 

units by multiplying the liters in one 

case by the number of cases to be 

converted, as follows: 

(a) If the conversion from liters to U.S. 

units is made before multiplying by the 

number of cases, the quantity in U.S. 


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units must be rounded to the sixth 

decimal; and 

(b) If the conversion is made after 

multiplying by the number of cases, the 

quantity in U.S. units must be rounded 

to the nearest hundredth. 

(26 U.S.C. 7805; 27 U.S.C. 205) 

§ 31.162 Discontinuance of business. 

When a wholesale dealer in liquors 

who is required, under § 31.160, to file 

a monthly summary report discontinues 

business, a monthly summary report 

marked ‘‘Final’’ must be filed covering 

transactions through the date of 

discontinuance. 

(26 U.S.C. 5121) 

§ 31.163 Requirements when a wholesale 

dealer in liquors maintains a retail 

department. 

(a) Constructive receipt and sale. 

When a wholesale dealer in liquors 

maintains a separate department on the 

premises for the retailing of distilled 

spirits, and the retail sales of distilled 

spirits normally represent 90 percent or 

more of the volume of distilled spirits 

sold, the dealer may ‘‘constructively’’ 

receive all distilled spirits in the retail 

department. Sales involving a wholesale 

transaction may be ‘‘constructively’’ 

sold through the wholesale department. 

(1) Receipts. In lieu of maintaining 

and preparing the records required by 

§ 31.155, a wholesale dealer may 

constructively receive all distilled 

spirits in its retail department. In this 

case, the receiving document will serve 

as a receipt for (through) the wholesale 

department and a disposition (transfer) 

to the retail department. The receiving 

document must be maintained by the 

retail department in accordance with 

§ 31.171. 

(2) Dispositions. In lieu of 

maintaining and preparing the records 

required by § 31.156, a wholesale dealer 

may constructively sell distilled spirits 

from its retail department to other 

dealers. The sales invoice or bill must 

be filed in the wholesaler’s disposition 

records and will serve as a record of 

receipt from the retail department and a 

record of disposition to another dealer. 

(b) Receipt and disposition records. 

Except as provided in paragraph (a) of 

this section, a wholesale dealer must 

prepare and maintain the required 

records of receipt and disposition as 

prescribed in §§ 31.155 and 31.156. 

Transfers between the wholesale and 

retail departments will be treated in the 

same manner as any other transaction 

involving the wholesale department. 

(c) Monthly summary report. When 

required by § 31.160, a wholesale dealer 

must prepare and file the monthly 

summary report of actual or 

constructive receipts and dispositions of 

all distilled spirits. 

(d) Physical separation. Wholesale 

and retail departments need not be 

physically separated. 

(26 U.S.C. 5121) 

Filing of Wholesale Dealers’ Records 

and Reports 

§ 31.171 Method of filing. 

A wholesale dealer may file the 

records of receipt and disposition 

required by §§ 31.155 and 31.156 in 

accordance with the wholesaler’s 

regular accounting and recordkeeping 

systems. The required records must 

include the dealer’s own file copies of 

the receiving or shipping invoices and 

must be filed according to the following 

rules: 

(a) Wholesale dealers may file records 

of receipt and disposition in accordance 

with their own filing system as long as 

the records are filed by transaction or 

reporting date and the filing system 

systematically and accurately accounts 

for all receipts and dispositions of 

distilled spirits. 

(b) The required records of receipt 

and disposition must be filed not later 

than one business day following the 

date the transaction occurred. 

(c) Supporting documents for receipts 

and dispositions, such as delivery 

receipts and bills of lading, also may be 

filed in accordance with the 

wholesaler’s regular accounting and 

recordkeeping practices. 

(26 U.S.C. 5121, 5122, 5123) 

§ 31.172 Place of filing. 

Records of receipt and disposition 

and monthly summary reports required 

by §§ 31.155, 31.156, and 31.160 must 

be maintained at the dealer’s place of 

business. The appropriate TTB officer 

may, upon request, authorize 

maintenance of files, or an individual 

file, at another business location under 

the control of the same wholesale 

dealer, when it is determined that such 

maintenance will not cause undue 

inconvenience to TTB officers desiring 

to examine those files. 

(26 U.S.C. 5123) 

Retail Dealer’s Records 

§ 31.181 Requirements for retail dealers. 

(a) Records of receipt. All retail 

dealers must keep at their place of 

business complete records showing the 

quantities of all distilled spirits, wines, 

and beer received, from whom the 

distilled spirits, wines, and beer were 

received, and the dates of receipt. 

However, the appropriate TTB officer 

may, upon request, authorize the 

maintenance of records at another 

business premises also under the 

control of the same retail dealer when 

it is determined that such maintenance 

will not cause undue inconvenience to 

TTB officers desiring to examine those 

records. Records of receipts shall consist 

of all purchase invoices or bills covering 

distilled spirits, wines, and beer 

received, or, at the option of the retail 

dealer, a book record containing all of 

the required information. 

(b) Records of sales of 20 wine gallons 

(75.7 liters) or more. Every retail dealer 

who makes sales of distilled spirits, of 

wines, or of beer in quantities of 20 

wine gallons (75.7 liters) or more to the 

same person at the same time must 

prepare and keep a record of each sale. 

The record must show the date of sale, 

the name and address of the purchaser, 

the kind and quantity of each kind of 

liquors sold, and the serial numbers of 

all full cases of distilled spirits included 

in the sale. Each entry on that record 

must be supported by a corresponding 

delivery receipt (which may be executed 

on a copy of the sales slip) signed by the 

purchaser or the purchaser’s agent. 

(Approved by the Office of Management and 

Budget under control number 1513–0066) (26 

U.S.C. 5122, 5123) 

Retention of Records and Files 

§ 31.191 Period of retention. 

All records and files, all documents or 

copies of documents supporting these 

records and files, and all file copies of 

reports, submitted as required by this 

part, must be retained by the person 

required to have them, for a period of 

not less than three years and, during the 

retention period, must be available, 

during business hours, for inspection 

and copying by the appropriate TTB 

officers. In addition, the appropriate 

TTB officer may require retention of the 

documents and other records for an 

additional period of not more than three 

years if it is determined that such 

additional retention is necessary. 

(26 U.S.C. 5123) 

§ 31.192 Photographic copies of records. 

(a) General. Dealers may record, copy, 

or reproduce records required by this 

part. Dealers may use any process that 

accurately reproduces the original 

record and that forms a durable medium 

for preserving the original record. 

(b) Copies of records treated as 

original records. Whenever records are 

reproduced under this section, the 

reproduced records must be preserved 

in conveniently accessible files, and 

provision must be made for examining, 

viewing, and using the reproduced 

record in the same manner as if it were 


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the original record. A reproduced record 

will be treated and considered for all 

purposes as though it were the original 

record. All provisions of law and 

regulations applicable to the original 

record are applicable to the reproduced 

record. As used in this section, ‘‘original 

record’’ means the record required by 

this part to be maintained or preserved 

by a dealer, even though it may be an 

executed duplicate or other copy of the 

document. 

(26 U.S.C. 5555) 

Subpart K—Reuse and Possession of 

Used Liquor Bottles 

§ 31.201 Refilling of liquor bottles. 

No person who sells, or offers for sale, 

distilled spirits, or agent or employee of 

such person, shall: 

(a) Place in any liquor bottle any 

distilled spirits whatsoever other than 

those contained in that bottle at the time 

of closing under the provisions of 26 

U.S.C. chapter 51; or 

(b) By the addition of any substance 

whatsoever to any liquor bottle, in any 

manner alter or increase any portion of 

the original contents contained in that 

bottle at the time of closing under the 

provisions of 26 U.S.C. chapter 51. 

(26 U.S.C. 5301) 

§ 31.202 Possession of refilled liquor 

bottles. 

No person who sells, or offers for sale, 

distilled spirits, or agent or employee of 

such person, shall: 

(a) Possess any liquor bottle in which 

any distilled spirits have been placed in 

violation of the provisions of § 31.201; 

or 

(b) Possess any liquor bottle, any 

portion of the contents of which has 

been altered or increased in violation of 

the provisions of § 31.201. 

(26 U.S.C. 5301) 

§ 31.203 Possession of used liquor 

bottles. 

The possession of used liquor bottles 

by any person other than the person 

who empties the contents thereof is 

prohibited except in the following 

circumstances: 

(a) The owner or occupant of any 

premises on which the used bottles have 

been lawfully emptied may assemble 

the bottles on such premises— 

(1) For delivery to a bottler or 

importer on specific request of that 

bottler or importer; 

(2) For destruction, either on the 

premises on which the bottles are 

emptied or elsewhere, including 

disposition for purposes that will result 

in the bottles being rendered unusable 

as bottles; or 

(3) In the case of unusual or 

distinctive bottles, for disposition or 

sale as collectors’ items or for other 

purposes not involving the packaging of 

any product for sale; 

(b) Any person may possess, offer for 

sale, or sell unusual or distinctive 

bottles for purposes not involving the 

packaging of any product for sale; and 

(c) Any person may assemble used 

liquor bottles for the purpose of 

recycling or reclaiming the glass or 

other approved liquor bottle material. 

(26 U.S.C. 5301) 

§ 31.204 Mixed cocktails. 

A retail liquor dealer who mixes 

cocktails or compounds any alcoholic 

liquors in advance of sale, as provided 

in § 31.233, may not use liquor bottles 

in which distilled spirits have been 

previously packaged for the storage of 

the mixture or compound pending that 

sale. 

(26 U.S.C. 5301) 

Subpart L—Packaging of Alcohol for 

Industrial Uses 

§ 31.211 Requirements and procedure. 

Upon compliance with the provisions 

of part 19 of this chapter applicable to 

persons repackaging distilled spirits, 

and subject to the requirements of 

paragraphs (a) through (c) of this 

section, a dealer engaged in the business 

of supplying distilled spirits for 

industrial use may obtain bulk alcohol 

on which the tax has been paid or 

determined and repackage the alcohol 

for sale for industrial use in containers 

of a capacity in excess of 1 wine gallon 

and not more than 5 wine gallons. 

(a) Qualification procedure. An 

application for registration, TTB Form 

5110.41, and an application for an 

operating permit, TTB Form 5110.25, 

modified in accordance with 

instructions of the appropriate TTB 

officer, must be executed and filed with 

the appropriate TTB officer. No alcohol 

shall be repackaged until the approved 

application for registration and the 

approved operating permit are received. 

(b) Operations. Repackaging 

operations must be conducted in 

accordance with the bottling and 

packaging requirements of part 19 of 

this chapter. Packaging and labeling 

operations may be carried on without 

supervision of a TTB officer unless the 

appropriate TTB officer requires 

supervision. 

(c) Records. The dealer must keep 

daily records showing the bulk alcohol 

received, dumped for packaging, 

packaged, and disposed of, including 

the name and address of each consignor 

and consignee. The dealer must prepare 

a monthly report on TTB Form 5110.28 

of bulk alcohol received, packaged, and 

disposed of. Reports on Form 5110.28 

must be submitted to the appropriate 

TTB officer not later than the 15th day 

of the month following the period 

covered by the report. Records, 

documents, or copies of documents 

supporting the records, and copies of 

reports submitted to the appropriate 

TTB officer, must be filed and retained 

as prescribed in §§ 31.172 and 31.191. 

(26 U.S.C. 5131, 5206) 

§ 31.212 Labeling. 

Every dealer packaging alcohol for 

industrial use must affix to each 

package filled a label bearing in 

conspicuous print the words ‘‘Alcohol’’ 

and ‘‘For Industrial Use,’’ the proof of 

the alcohol, the capacity of the 

container, and the packaging dealer’s 

name and address. The dealer may 

incorporate in the label other 

appropriate statements; however, such 

statements must not obscure or 

contradict the data required by this 

section to be shown on such labels. 

(26 U.S.C. 5131, 5206) 

Subpart M—Distilled Spirits for Export 

with Benefit of Drawback 

§ 31.221 General. 

A State, a political subdivision of a 

State, or a person holding a wholesale 

liquor dealer’s basic permit issued 

under part 1 of this chapter may export 

bottled taxpaid distilled spirits with 

benefit of drawback as provided in 

§ 28.171 of this chapter. The marking of 

cases, the preparation of notice of 

shipment on TTB Form 5110.30, the 

removal and exportation of the distilled 

spirits, and the filing of claims by the 

processor of the spirits must be in 

accordance with the applicable 

provisions of parts 19 and 28 of this 

chapter. 

§ 31.223 Records and reports. 

The provisions of subpart J of this part 

regarding records and reports relating to 

liquors for domestic use also apply to 

export transactions permitted under this 

subpart. 

Subpart N—Miscellaneous 

§ 31.231 Destruction of marks and brands 

on wine containers. 

A dealer who empties any cask, 

barrel, keg, or other bulk container of 

wine must scrape or obliterate from the 

empty container all marks, brands, tags, 

or labels placed thereon under the 

provisions of part 24 of this chapter as 

evidence of the payment or 

determination of the tax on the wine 


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Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 37419 

removed in the container from the 

bonded wine cellar. 

§ 31.232 Wine bottling. 

Each person desiring to bottle, 

package, or repackage taxpaid wines 

must, before carrying on those 

operations, apply and receive 

permission from the appropriate TTB 

officer in accordance with part 24 of this 

chapter. The decanting of wine by 

caterers or other retail dealers for table 

or room service, banquets, and similar 

purposes shall not be considered as 

‘‘bottling,’’ if the decanters are not 

furnished for the purpose of carrying 

wine away from the area where served. 

(26 U.S.C. 5352) 

§ 31.233 Mixing cocktails in advance of 

sale. 

A retail liquor dealer shall not mix 

cocktails, or compound any alcoholic 

liquors in advance of sale, except for the 

purpose of filling, for immediate 

consumption on the premises, orders 

received, or expected to be immediately 

received, at the bar. See § 31.204 for 

additional mixed cocktail rules. 

(26 U.S.C. 5002) 

§ 31.234 Liability for special (occupational) 

tax. 

The special (occupational) tax on 

alcohol beverage dealers was suspended 

for the period July 1, 2005, through June 

30, 2008, and was repealed effective 

July 1, 2008. Dealers who were engaged 

in business prior to the suspension 

period remain liable for payment of the 

special (occupational) tax in accordance 

with the laws and regulations in effect 

at that time. The tax return to be used 

for payment of any past-due special 

(occupational) tax is TTB Form 5630.5a. 

(Section 11125, Pub. L. 109–59, 119 Stat. 

1953) 

PART 40—MANUFACTURE OF 

TOBACCO PRODUCTS AND 

CIGARETTE PAPERS AND TUBES 

■ 65. The authority citation for part 40 

is revised to read as follows: 

Authority: 26 U.S.C. 448, 5701, 5703– 

5705, 5711–5713, 5721–5723, 5731–5734, 

5741, 5751, 5753, 5761–5763, 6061, 6065, 

6109, 6151, 6301, 6302, 6311, 6313, 6402, 

6404, 6423, 6676, 6806, 7011, 7212, 7325, 

7342, 7502, 7503, 7606, 7805; 31 U.S.C. 9301, 

9303, 9304, 9306. 

■ 66. Section 40.11 is amended by 

adding, in alphabetical order, a 

definition of ‘‘special tax’’ to read as 

follows: 

§ 40.11 Meaning of terms. 

* * * * * 

Special tax. The special 

(occupational) tax on manufacturers of 

tobacco products, manufacturers of 

cigarette papers and tubes, and export 

warehouse proprietors, imposed by 26 

U.S.C. 5731. 

* * * * * 

■ 67. Section 40.31 is amended by 

removing and reserving paragraph (b) 

and by adding new paragraph (d) and 

revising the informational reference at 

the end of the section to read as follows: 

§ 40.31 Liability for special tax. 

* * * * * 

(d) Payment of tax. Special tax must 

be paid by return. The prescribed return 

is TTB Form 5630.5t, Special Tax 

Registration and Return—Tobacco. 

Special tax returns, with payment of tax, 

must be filed with TTB in accordance 

with the instructions on the form and 

the requirements of subpart D of part 46 

of this chapter. 

(26 U.S.C. 5731, 5733) 

■ 68. Section 40.33 is revised to read as 

follows: 

§ 40.33 Cross reference. 

For additional rules pertaining to 

liability for special tax, filing special tax 

returns, issuance and examination of 

special (occupational) tax stamps, and 

notification of changes to special tax 

stamps, see subpart D of part 46 of this 

chapter. 

§§ 40.34, 40.35, and 40.36 [Removed and 

reserved] 

■ 69. Sections 40.34, 40.35, and 40.36 

are removed and reserved. 

■ 70. Section 40.371 is amended by 

adding a new paragraph (c) and revising 

the informational reference at the end of 

the section to read as follows: 

§ 40.371 Liability for special tax. 

* * * * * 

(c) Payment of tax. Special tax must 

be paid by return. The prescribed return 

is TTB Form 5630.5t, Special Tax 

Registration and Return—Tobacco. 

Special tax returns, with payment of tax, 

must be filed with TTB in accordance 

with the instructions on the form and 

the requirements of subpart D of part 46 

of this chapter. 

(26 U.S.C. 5731, 5733) 

■ 71. Section 40.373 is revised to read 

as follows: 

§ 40.373 Cross reference. 

For additional rules pertaining to 

liability for special tax, filing special tax 

returns, issuance and examination of 

special tax stamps, and notification of 

changes to special tax stamps, see 

subpart D of part 46 of this chapter. 

§§ 40.374 and 40.375 [Removed and 

reserved] 

■ 72. Sections 40.374 and 40.375 are 

removed and reserved. 

PART 44—EXPORTATION OF 

TOBACCO PRODUCTS AND 

CIGARETTE PAPERS AND TUBES, 

WITHOUT PAYMENT OF TAX, OR WITH 

DRAWBACK OF TAX 

■ 73. The authority citation for part 44 

is revised to read as follows: 

Authority: 26 U.S.C. 448, 5701, 5703–5705, 

5711–5713, 5721–5723, 5731–5734, 5741, 

5751, 5754, 6061, 6065, 6151, 6402, 6404, 

6806, 7011, 7212, 7342, 7606, 7805; 31 U.S.C. 

9301, 9303, 9304, 9306. 

■ 74. Section 44.11 is amended by 

adding, in alphabetical order, a 

definition of ‘‘special tax’’ to read as 

follows: 

§ 44.11 Meaning of terms. 

* * * * * 

Special tax. The special 

(occupational) tax on manufacturers of 

tobacco products, manufacturers of 

cigarette papers and tubes, and export 

warehouse proprietors, imposed by 26 

U.S.C. 5731. 

* * * * * 

■ 75. Section 44.31 is amended by 

removing and reserving paragraph (b) 

and by adding new a paragraph (d) and 

revising the informational reference at 

the end of the section to read as follows: 

§ 44.31 Liability for special tax. 

* * * * * 

(d) Payment of tax. Special tax must 

be paid by return. The prescribed return 

is TTB Form 5630.5t, Special Tax 

Registration and Return—Tobacco. 

Special tax returns, with payment of tax, 

must be filed with TTB in accordance 

with the instructions on the form and 

the requirements of subpart D of part 46 

of this chapter. 

(26 U.S.C. 5731, 5733) 

■ 76. Section 44.33 is revised to read as 

follows: 

§ 44.33 Cross reference. 

For additional rules pertaining to 

liability for special (occupational) tax, 

filing special tax returns, issuance and 

examination of special tax stamps, and 

notification of changes to special tax 

stamps, see subpart D of part 46 of this 

chapter. 

§§ 44.34, 44.35, and 44.36 [Removed and 

reserved] 

■ 77. Sections 44.34, 44.35, and 44.36 

are removed and reserved. 


pwalker on DSK8KYBLC1PROD with RULES2
37420 Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 

PART 46—MISCELLANEOUS 

REGULATIONS RELATING TO 

TOBACCO PRODUCTS AND 

CIGARETTE PAPERS AND TUBES 

■ 78. The authority citation for part 46 

is revised to read as follows: 

Authority: 18 U.S.C. 2341–2346, 26 U.S.C. 

5061, 5704, 5708, 5731–5734, 5751, 5754, 

5761–5763, 6001, 6601, 6621, 6622, 7212, 

7342, 7602, 7606, 7805; 44 U.S.C. 3504(h), 49 

U.S.C. 782, unless otherwise noted. 

■ 79. Part 46 is amended by adding a 

new subpart D to read as follows: 

Subpart D—Rules for Special 

(Occupational) Tax 

Sec. 

46.91 Scope of subpart. 

46.92 Meaning of terms. 

46.93 Multiple businesses of same 

ownership and location. 

46.94 Relation to State and municipal law. 

46.95 Liability of partners. 

Payment of Special Tax 

46.101 Special tax returns. 

46.102 Employer identification number. 

46.103 Time for filing return and paying 

tax. 

46.104 Method of payment. 

46.105 Receipt for taxes. 

46.106 Receipt in lieu of stamp prohibited. 

46.107 Penalty for failure to file return or to 

pay tax. 

46.108 Interest on unpaid tax. 

46.109 Waiver of penalties. 

Special Tax Stamps 

46.116 Issuance, distribution, and 

examination of special tax stamps. 

46.117 Lost or destroyed stamps. 

46.118 Certificate in lieu of lost or 

destroyed special tax stamp. 

46.119 Errors disclosed by taxpayers. 

46.120 Errors discovered on inspection. 

Changes in Businesses Holding Special Tax 

Stamps 

46.126 Change in name or address. 

46.127 Change in ownership. 

Stamps for Incorrect Period or Incorrect 

Liability 

46.131 General. 

46.132 Credit for incorrect stamp. 

Abatement or Refund of Special Taxes 

46.136 Claims. 

46.137 Time limit on filing of claim for 

refund. 

46.138 Discontinuance of business. 

Subpart D—Rules for Special 

(Occupational) Tax 

§ 46.91 Scope of subpart. 

This subpart contains rules relating to 

special (occupational) taxes that must be 

paid by manufacturers of tobacco 

products, manufacturers of cigarette 

papers and tubes, and export warehouse 

proprietors. 

§ 46.92 Meaning of terms. 

As used in this subpart, the following 

terms shall have the meanings indicated 

unless either the context in which they 

are used requires a different meaning, or 

a different definition is prescribed for a 

particular section or portion of this 

subpart: 

Appropriate TTB officer. An officer or 

employee of the Alcohol and Tobacco 

Tax and Trade Bureau (TTB) authorized 

to perform any functions relating to the 

administration or enforcement of this 

part by TTB Order 1135.46, Delegation 

of the Administrator’s Authorities in 27 

CFR Part 46, Miscellaneous Regulations 

Relating to Tobacco Products and 

Cigarette Papers and Tubes. 

CFR. The Code of Federal 

Regulations. 

Cigarette paper. Paper, or any other 

material except tobacco, prepared for 

use as a cigarette wrapper. 

Cigarette tube. Cigarette paper made 

into a hollow cylinder for use in making 

cigarettes. 

Export warehouse. A bonded internal 

revenue warehouse for the storage of 

tobacco products and cigarette papers 

and tubes, upon which the internal 

revenue tax has not been paid, for 

subsequent shipment to a foreign 

country, Puerto Rico, the Virgin Islands, 

or a possession of the United States, or 

for consumption beyond the jurisdiction 

of the internal revenue laws of the 

United States. 

Export warehouse proprietor. Any 

person who operates an export 

warehouse. 

Manufacturer of cigarette papers and 

tubes. Any person who manufactures 

cigarette paper, or makes up cigarette 

paper into tubes, except for his own 

personal use or consumption. 

Manufacturer of tobacco products. 

Any person who manufactures tobacco 

products. 

Person. An individual, a trust, estate, 

partnership, association or other 

unincorporated organization, fiduciary, 

company, or corporation, or the District 

of Columbia, a State, or a political 

subdivision thereof (including a city, 

county, or other municipality). 

Special tax. The special 

(occupational) tax on manufacturers of 

tobacco products, manufacturers of 

cigarette papers and tubes, and export 

warehouse proprietors, imposed by 26 

U.S.C. 5731. 

Tax year. The period from July 1 of 

one calendar year through June 30 of the 

following calendar year. 

This chapter. Chapter I of title 27 of 

the Code of Federal Regulations. 

Tobacco products. Cigars, cigarettes, 

smokeless tobacco, pipe tobacco, and 

roll-your-own tobacco. 

U.S.C. The United States Code. 

§ 46.93 Multiple businesses of same 

ownership and location. 

(a) Where more than one type of 

taxable business is conducted by the 

same person at the same place, special 

tax for each business must be paid at the 

rates prescribed for each. 

(b) Where the same type of taxable 

business is conducted by the same 

person in different areas of the same 

premises, only one special tax payment 

is required. 

(26 U.S.C. 5733) 

§ 46.94 Relation to State and municipal 

law. 

(a) General. The payment of special 

(occupational) tax does not exempt any 

person from any penalty or punishment 

provided by the laws of any State for 

carrying on any trade or business within 

that State, nor does it authorize the 

commencement or continuance of any 

trade or business contrary to State law 

or in places prohibited by county or 

municipal law. Payment of this tax does 

not prohibit any State from placing an 

additional duty or tax on the same trade 

or business, for State or other purposes. 

(b) Special tax stamps. TTB officers 

are without authority to refuse to issue 

a special tax stamp to a person engaged 

in business in violation of State law. 

The stamp is not a Federal permit or 

license, but is merely a receipt for the 

tax. The stamp affords the holder no 

protection against prosecution for 

violation of State law. 

(26 U.S.C. 5734) 

§ 46.95 Liability of partners. 

Any number of persons carrying on 

one business in partnership at any one 

place during any tax year are required 

to pay only one special tax. 

(26 U.S.C. 5733) 

Payment of Special Tax 

§ 46.101 Special tax returns. 

(a) Preparation of TTB Form 5630.5t. 

Every manufacturer of tobacco products, 

manufacturer of cigarette papers and 

tubes, and export warehouse proprietor 

is required to pay special (occupational) 

tax and file a return on TTB Form 

5630.5t, ‘‘Special Tax Registration and 

Return—Tobacco.’’ TTB Form 5630.5t 

must be completed in accordance with 

the instructions on the form, and all of 

the information called for on the form 

must be provided, including the 

following: 

(1) Name of the taxpayer. 

(2) Trade name(s) (if any) of the 

business(es) subject to special 

(occupational) tax. 


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(3) Employer identification number 

(see § 46.102). 

(4) Exact location of the place of 

business, by name and number of 

building or street, or if these do not 

exist, by some specific description in 

addition to the post office address. In 

the case of one return for two or more 

locations, the address to be shown must 

be the taxpayer’s principal place of 

business (or principal office, in the case 

of a corporate taxpayer). 

(5) Class(es) of special tax to which 

the taxpayer is subject. 

(6) Ownership and control 

information. This consists of the name, 

position, and residence address of every 

owner of the business and of every 

person having power to control its 

management and policies with respect 

to the activity subject to special tax. 

‘‘Owner of the business’’ includes every 

partner, if the taxpayer is a partnership, 

and every person owning 10 percent or 

more of its stock, if the taxpayer is a 

corporation. However, the ownership 

and control information required by this 

paragraph need not be stated if the same 

information has been previously 

provided to TTB in connection with a 

permit application and that previously 

provided information is still current. 

(b) Multiple locations and/or classes 

of tax. A taxpayer subject to special tax 

for the same period at more than one 

location or for more than one class of 

tax must— 

(1) File one special tax return, TTB 

Form 5630.5t, with payment of tax, to 

cover all such locations and classes of 

tax; and 

(2) Prepare, in duplicate, a list 

identified with the taxpayer’s name, 

address (as shown on TTB Form 

5630.5t), employer identification 

number, and period covered by the 

return. The list must show, by State, the 

name, address, and tax class of each 

location for which special tax is being 

paid. The original of the list must be 

filed with TTB as an attachment to TTB 

Form 5630.5t, and the copy must be 

retained at the taxpayer’s principal 

place of business (or principal office, in 

the case of a corporate taxpayer) for a 

period of three years from the date of 

the return. 

(c) Signing of TTB Form 5630.5t—(1) 

By principal. The return of an 

individual proprietor must be signed by 

the individual. The return of a 

partnership must be signed by a general 

partner. The return of a corporation 

must be signed by an officer. In each 

case, the person signing the return must 

designate his or her capacity as 

‘‘individual owner,’’ ‘‘member of firm,’’ 

or, in the case of a corporation, the 

officer’s title. 

(2) By fiduciary. A receiver, trustee, 

assignee, executor, administrator, or 

other legal representative who continues 

the business of a bankrupt, insolvent, 

deceased, or otherwise incapacitated 

person must indicate the capacity in 

which the fiduciary acts. 

(3) By agent or attorney in fact. If a 

return is signed by an agent or attorney 

in fact, the signature must be preceded 

by the name of the principal and 

followed by the title of the agent or 

attorney in fact. A return signed by a 

person as agent will not be accepted 

unless there is filed, with the TTB office 

with which the return is required to be 

filed, a power of attorney authorizing 

the agent to perform the act. 

(d) Perjury statement. Each TTB Form 

5630.5t must contain, or be verified by, 

a written declaration that the return has 

been executed under the penalties of 

perjury. 

(26 U.S.C. 5732, 6061, 6065, 6151, 7011) 

(Approved by the Office of Management and 

Budget under control number 1513–0112) 

§ 46.102 Employer identification number. 

(a) Requirement. The employer 

identification number (as defined in 26 

CFR 301.7701–12) of the taxpayer who 

has been assigned such a number must 

be shown on each special tax return, 

including each amended return, filed 

under this subpart. Failure of the 

taxpayer to include the employer 

identification number may result in the 

imposition of the penalty specified in 

§ 70.113 of this chapter. 

(b) Application for employer 

identification number. Each taxpayer 

who files a special tax return and who 

has not already been assigned an 

employer identification number must 

file Internal Revenue Service (IRS) Form 

SS–4 to apply for one. The taxpayer 

must apply for and be assigned only one 

employer identification number, 

regardless of the number of places of 

business for which the taxpayer is 

required to file a special tax return. The 

taxpayer must apply for the employer 

identification number no later than 7 

days after the filing of the taxpayer’s 

first special (occupational) tax return. 

IRS Form SS–4 may be obtained from 

the director of an IRS service center, 

from any IRS district director, or from 

http://www.irs.gov/. 

(26 U.S.C. 6109) 

§ 46.103 Time for filing return and paying 

tax. 

The return, along with remittance of 

special tax, must be filed on or before 

the date of commencing business as a 

manufacturer of tobacco products, 

manufacturer of cigarette papers or 

tubes, or export warehouse proprietor, 

and thereafter every year on or before 

July 1. If the return and applicable tax 

are received in the mail and the U.S. 

postmark on the cover shows that it was 

deposited in the mail in the United 

States within the time prescribed for 

filing in an envelope or other 

appropriate wrapper which was 

properly addressed with postage 

prepaid, the return will be considered as 

timely filed. If the postmark is not 

legible, the sender has the burden of 

proving the date when the postmark was 

made. When registered mail is used, the 

date of registration will be accepted as 

the postmark date. When certified mail 

is used, the date of the postmark on the 

sender’s receipt of certified mail is 

treated as the postmark date. 

(26 U.S.C. 5732, 6011, 6071) 

§ 46.104 Method of payment. 

Payment of special tax must be made 

in cash, or by check or money order 

payable to Alcohol and Tobacco Tax 

and Trade Bureau. If a check or money 

order so tendered is not honored when 

presented for payment, the person who 

tendered the check or money order will 

remain liable for the payment of the 

special tax, and for all penalties and 

additions, to the same extent as if the 

check or money order had not been 

tendered. In addition, unless the person 

who tendered the check or money order 

can show that the check or money order 

was issued in good faith, and with 

reasonable cause to believe that it would 

be duly paid, there must be paid as 

penalty an amount equal to 1 percent of 

the amount of the check or money order, 

except that if the amount of the check 

or money order is less than $500, the 

penalty will be $5, or the amount of the 

check or money order, whichever is 

less. 

(26 U.S.C. 6311, 6657) 

§ 46.105 Receipt for taxes. 

Subject to § 46.106, the appropriate 

TTB officer will issue a receipt to a 

taxpayer if cash is received as a 

remittance in payment of special tax 

(including penalties and interest, if 

any), or for any type of remittance 

received if the taxpayer requests a 

receipt. 

§ 46.106 Receipt in lieu of stamp 

prohibited. 

No receipt will be issued in lieu of 

issuance of a special tax stamp under 

§ 46.116. A receipt may be given only 

pending the issuance of a stamp, or 

where the tax liability relates to a prior 

tax year. 

(26 U.S.C. 6314) 


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37422 Federal Register / Vol. 74, No. 143 / Tuesday, July 28, 2009 / Rules and Regulations 

§ 46.107 Penalty for failure to file return or 

to pay tax. 

(a) Failure to file return. Any person 

required by this subpart to file a return 

on TTB Form 5630.5t who fails to file 

the return on or before the date for filing 

prescribed in § 46.103 must pay, in 

addition to the tax, a delinquency 

penalty, unless it is shown that such 

failure is due to reasonable cause and 

not due to willful neglect (see § 46.109). 

The delinquency penalty for failure to 

file the return on or before the last date 

prescribed will be 5 percent of the 

amount required to be shown as tax on 

the return if the failure to file is for not 

more than one month; with an 

additional 5 percent for each additional 

month or fraction thereof during which 

the delinquency continues, but not more 

than 25 percent in the aggregate. 

(b) Failure to pay tax. Any person 

who files a return on TTB Form 5630.5t 

under this subpart and who fails to pay 

the amount shown as tax on the return 

on or before the date prescribed in 

§ 46.103 for payment of such tax, must 

pay a penalty, in addition to the tax, 

unless it is shown that such failure is 

due to reasonable cause and not due to 

willful neglect (see § 46.109). The 

penalty for failure to pay the tax on or 

before the date prescribed for payment 

is 0.5 percent of the amount shown as 

tax on the return if the failure to pay is 

not for more than one month; with an 

additional 0.5 percent for each 

additional month or fraction thereof 

during which the failure continues, but 

not more than 25 percent in the 

aggregate. Any person required to pay 

the special tax who willfully fails to pay 

the tax shall be fined not more than 

$5,000, or imprisoned not more than 2 

years, or both, for each such offense. 

(c) Limitations. With respect to any 

return on Form 5630.5t, the amount of 

the addition under paragraph (a) of this 

section will be reduced by the amount 

of the addition under paragraph (b) of 

this section for any month to which an 

addition to tax applies under both 

paragraph (a) and paragraph (b) of this 

section. If the amount of tax required to 

be shown as tax on the return is less 

than the amount shown as tax on such 

return, the penalties prescribed in 

paragraphs (a) and (b) of this section 

will be applied by substituting that 

lower amount. 

(26 U.S.C. 5731, 6651) 

§ 46.108 Interest on unpaid tax. 

(a) General. Interest is due on unpaid 

special tax from the date the tax was 

required to be paid to the date paid. 

Interest will be charged for each day at 

the rate prescribed by law in effect on 

that day. Interest accruing after 

December 31, 1982, is compounded 

daily. 

(b) Adjusted interest rates. Adjusted 

interest rates, determined in accordance 

with the procedure prescribed by 26 

U.S.C. 6621(b), are announced quarterly 

by the Commissioner of Internal 

Revenue. The appropriate TTB officer 

will provide information, when 

requested, regarding interest rates 

applicable to specific time periods. 

(26 U.S.C. 6601, 6621) 

§ 46.109 Waiver of penalties. 

In every case where a special tax 

return is not filed, or the tax is not paid, 

at the time prescribed in § 46.103, the 

delinquency penalties specified in 

§ 46.107 for failure to file a return or for 

failure to pay the amount shown as tax 

on the return will be asserted and 

collected unless a reasonable cause for 

delay in filing the return or payment of 

the tax is clearly established. A taxpayer 

who believes the circumstances that 

delayed such taxpayer’s filing of the 

return or payment of the tax are 

reasonable, and who desires to have the 

penalties waived, must submit with the 

return a written statement under the 

penalty of perjury, affirmatively 

showing all of the circumstances alleged 

as reasonable causes for delay. If the 

appropriate TTB officer determines that 

the delinquency was due to a reasonable 

cause and not to willful neglect or gross 

negligence, the addition to the tax will 

be waived. If the taxpayer exercised 

ordinary business care and prudence 

and was nevertheless unable to file the 

return within the prescribed time, or if 

the taxpayer made a satisfactory 

showing that the taxpayer exercised 

ordinary business care and prudence in 

providing for payment of the tax 

liability and was nevertheless either 

unable to pay the tax or would have 

suffered an undue hardship if the 

taxpayer had paid on the due date, then 

the delay is due to reasonable cause. 

Mere ignorance of the law will not be 

considered a reasonable cause. 

(26 U.S.C. 6651) 

Special Tax Stamps 

§ 46.116 Issuance, distribution, and 

examination of special tax stamps. 

(a) Issuance of special tax stamps. 

Upon filing a properly executed return 

on TTB Form 5630.5t together with the 

full tax remittance, the taxpayer will be 

issued an appropriately designated 

special tax stamp. If the return covers 

multiple locations, TTB will send to the 

taxpayer’s principal place of business 

(or principal office in the case of a 

corporate taxpayer) one appropriately 

designated stamp for each location 

listed on the attachment to TTB Form 

5630.5t required by § 46.101(b)(2). 

(b) Distribution of special tax stamps 

for multiple locations. On receipt of the 

special tax stamps, the taxpayer must 

verify that there is one stamp for each 

location listed on the attachment to TTB 

Form 5630.5t and that the information 

on each stamp is correct. The taxpayer 

must then forward each stamp to the 

place of business designated on the 

stamp. Incorrect stamps must be 

returned to the appropriate TTB officer 

as provided in § 46.120. 

(c) Examination of special tax stamps. 

Each stamp denoting payment of special 

tax must be kept available for inspection 

by an appropriate TTB officer during 

business hours at the location for which 

the stamp is designated. 

(26 U.S.C. 5732) 

§ 46.117 Lost or destroyed stamps. 

If a special tax stamp has been lost or 

destroyed, the taxpayer must 

immediately notify the TTB officer who 

issued the stamp. A ‘‘Certificate in Lieu 

of Lost or Destroyed Special Tax Stamp’’ 

will be issued to the taxpayer who 

submits an affidavit explaining to the 

satisfaction of the appropriate TTB 

officer that the stamp was lost or 

destroyed. The certificate must be kept 

available for inspection in the same 

manner as prescribed for a special tax 

stamp in § 46.116(c). 

§ 46.118 Certificate in lieu of lost or 

destroyed special tax stamp. 

The provisions of this subpart relating 

to special tax stamps apply as well to 

certificates in lieu of lost or destroyed 

special tax stamps issued to taxpayers 

under § 46.117. 

§ 46.119 Errors disclosed by taxpayers. 

On receipt of a special tax stamp, the 

taxpayer must examine it to ensure that 

the name and address are correctly 

stated; if not, the taxpayer must return 

the stamp to the TTB officer who issued 

it, with a statement showing the nature 

of the error and the correct name or 

address. The appropriate TTB officer, on 

receipt of such stamp and statement, 

will compare the data on the stamp with 

that of the Form 5630.5t in TTB files, 

correct the error if made in the TTB 

office, and return the stamp to the 

taxpayer. However, if the error was in 

the taxpayer’s preparation of the Form 

5630.5t, the appropriate TTB officer will 

require the taxpayer to file a new Form 

5630.5t, designated ‘‘Amended Return,’’ 

setting forth the taxpayer’s correct name 

and address, and a statement explaining 

the error on the original Form 5630.5t. 

On receipt of the amended Form 5630.5t 

and a satisfactory explanation of the 


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error, the appropriate TTB officer will 

make the proper correction on the stamp 

and return it to the taxpayer. 

§ 46.120 Errors discovered on inspection. 

When a TTB officer discovers on a 

special tax stamp a material error in the 

name, ownership, or address of the 

taxpayer, that officer will require the 

taxpayer to surrender the erroneous tax 

stamp and prepare a new Form 5630.5t, 

designated ‘‘Amended Return,’’ showing 

correctly all of the information required 

in § 46.101 and containing, in the body 

of the form or in an attachment thereto, 

a statement of the reason for requesting 

correction of the stamp. On receipt of 

the amended return and an acceptable 

explanation for the error, the officer will 

make the proper correction on the stamp 

and return it to the taxpayer. However, 

if the error found by the TTB officer is 

on a special tax stamp issued as a result 

of a return on Form 5630.5t filed under 

§ 46.101(b), that officer will instruct the 

taxpayer to return the stamp, with a 

statement showing the nature of the 

error and the correct data, to the TTB 

officer who issued the stamp, for 

correction in accordance with § 46.119. 

Changes in Businesses Holding Special 

(Occupational) Tax Stamps 

§ 46.126 Change in name or address. 

(a) Change in name. If there is a 

change in the corporate or firm name, or 

in the trade name, as shown on TTB 

Form 5630.5t, the taxpayer must file an 

amended special tax return as soon as 

practicable after the change, covering 

the new corporate or firm name, or trade 

name. No new special tax is required to 

be paid. The taxpayer must attach the 

special tax stamp for endorsement of the 

change in name. 

(b) Change in location—(1) General. If 

there is a change in location of a taxable 

place of business, the taxpayer must, 

within 30 days after the change, file 

with TTB an amended special tax return 

covering the new location. The taxpayer 

must attach the special tax stamp or 

stamps for endorsement of the change in 

location. No new special tax is required 

to be paid. However, if the taxpayer 

does not file the amended return within 

30 days, the taxpayer is required to pay 

a new special tax and obtain a new 

special tax stamp. 

(2) Procedure. If the taxpayer’s 

original return on TTB Form 5630.5t 

covered only one location, the taxpayer 

may deliver the amended return and the 

stamp at any TTB office, or to any TTB 

officer inspecting the business, in lieu of 

mailing them to TTB. If the taxpayer’s 

original return covered multiple 

locations under the provisions of 

§ 46.101(b), he or she must forward with 

the amended return an attachment 

showing both the old and new address 

of any place of business which has been 

relocated, and the special tax stamp 

covering the location from which the 

business was removed. The appropriate 

TTB officer receiving such return or 

stamp will, if the return is submitted 

within the 30-day period, enter the 

proper endorsement on the stamp and 

return it to the taxpayer. 

(26 U.S.C. 5733, 7011) 

§ 46.127 Change in ownership. 

(a) General. A special tax stamp is a 

receipt for tax, personal to the one to 

whom issued, and is not transferable 

from one manufacturer of tobacco 

products, manufacturer of cigarette 

papers and tubes, or export warehouse 

proprietor to another. If there is a 

change in the ownership of a special-tax 

payer, the successor must pay a new 

special (occupational) tax and obtain the 

required special tax stamp(s). Examples 

of changes in ownership that require 

payment of a new special tax include, 

but are not limited to, the following: 

(1) Sale of business; 

(2) Formation of a partnership by two 

persons who have paid special tax; 

(3) Addition of a partner; 

(4) Incorporation of the business; 

(5) Creation of a new corporation to 

replace one or more corporations that 

have paid special tax; and 

(6) Stockholder continuing the 

business of a corporation after its 

dissolution. 

(b) Changes that do not require 

payment of a new special tax. The 

following changes do not require 

payment of a special tax: 

(1) Increase in capital stock of a 

corporation. 

(2) Change in ownership of any or all 

of the capital stock of a corporation. 

(c) Exemption for certain successors. 

Persons identified in paragraph (d) of 

this section as having the right of 

succession may carry on the business 

for the remainder of the tax year for 

which the special tax was paid, without 

paying a new special tax, if within 30 

days after the date on which the 

successor begins to carry on the 

business, the successor files with TTB a 

special tax return on TTB Form 5630.5t 

showing the basis of succession. A 

person who is a successor to a business 

for which special tax has been paid, and 

who fails to register the succession, is 

liable for special tax computed from the 

first day of the calendar month in which 

the successor began to carry on the 

business. 

(d) Persons having right of succession. 

The right of succession referred to in 

paragraph (c) of this section will pass to 

the identified persons in the following 

circumstances: 

(1) Death. The surviving spouse or 

child, or the executor, administrator, or 

other legal representative, of a deceased 

taxpayer; 

(2) Succession of spouse. A husband 

or wife succeeding to the business of his 

or her living spouse; 

(3) Insolvency. A receiver or trustee in 

bankruptcy, or an assignee for the 

benefit of creditors; 

(4) Withdrawal from firm. The partner 

or partners remaining after the death or 

withdrawal of a member of a 

partnership. 

(26 U.S.C. 5733) 

Stamps for Incorrect Period or 

Incorrect Liability 

§ 46.131 General. 

If a taxpayer through error has filed a 

return and paid special tax for an 

incorrect period of liability or for an 

incorrect class of business, the taxpayer 

must prepare a corrected TTB Form 

5630.5t, designated ‘‘Amended Return,’’ 

for each tax year involved and must 

submit the amended return, or returns, 

with remittance for the total applicable 

tax and additions to the tax 

(delinquency penalties and interest), to 

TTB in accordance with the instructions 

on the Form 5630.5t or, if the error is 

discovered by a TTB officer inspecting 

the premises, to that officer. Subject to 

the limitations imposed by 26 U.S.C. 

6511, the incorrectly paid tax (including 

additions thereto) may be allowed as a 

credit against the correct tax (including 

any additions thereto), as provided in 

§ 46.132, on surrender of the incorrect 

stamp or stamps, with the amended 

return or returns noted to show that 

credit is requested. Any incorrectly paid 

tax (including additions thereto) that is 

not credited as provided in § 46.132, 

including any creditable tax and 

additions thereto in excess of the correct 

tax (including additions thereto), may 

be refunded pursuant to §§ 46.136 

through 46.138 if the taxpayer files a 

corrected return on Form 5630.5t with 

remittance of the correct amount of tax 

(including any additions thereto). A 

new stamp will be issued only for a 

current period of liability. 

(26 U.S.C. 6011) 

§ 46.132 Credit for incorrect stamp. 

(a) General. The appropriate TTB 

officer may credit the tax (including 

additions thereto) paid for an incorrect 

stamp if the taxpayer has filed an 

amended return showing the correct tax 

on TTB Form 5630.5t and has, with the 

amended return, surrendered the 

incorrect stamp for credit. 


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(b) Underpayment. Where the correct 

tax (including any additions thereto) 

exceeds the incorrect tax paid, the 

appropriate TTB officer may credit the 

tax paid against the correct tax upon 

remittance of the difference between the 

tax paid and the correct tax plus any 

additions thereto. 

(c) Overpayment. Where the tax (and 

additions thereto) paid for the 

surrendered incorrect stamp exceeds the 

amount due, the appropriate TTB officer 

will advise the taxpayer to file a claim 

for refund of that excess on TTB Form 

5620.8. Sections 46.136 through 46.138 

apply to all claims for refund. 

(26 U.S.C. 6402, 6511) 

Abatement or Refund of Special Taxes 

§ 46.136 Claims. 

Claims for abatement of assessment of 

special tax (including penalties and 

interest), or for refund of an 

overpayment of special tax (including 

interest and penalties), must be filed on 

TTB Form 5620.8. The claim must be 

filed with the appropriate TTB officer. 

Each claim must set forth in detail each 

ground on which it is based and must 

contain facts sufficient to explain to the 

appropriate TTB officer the exact basis 

for the claim. If the claim is for refund 

of special tax for which a stamp was 

issued, either the stamp must be 

attached to and be made a part of the 

claim, or the claimant must include in 

the claim a satisfactory explanation of 

the reason why the stamp cannot be 

submitted. 

§ 46.137 Time limit on filing of claim for 

refund. 

No claim for the refund of a special 

tax or penalty will be allowed unless 

presented within 3 years after the filing 

of the related tax return or within 2 

years after the payment of such tax or 

penalty, whichever of these periods 

expires later. 

(26 U.S.C. 6511) 

§ 46.138 Discontinuance of business. 

A dealer who for any reason 

discontinues business is not entitled to 

a refund of special tax for the unexpired 

portion of the tax year for which the 

special tax stamp was issued. 

(26 U.S.C. 5732) 

PART 70—PROCEDURE AND 

ADMINISTRATION 

■ 80. The authority citation for part 70 

is revised to read as follows: 

Authority: 5 U.S.C. 301 and 552; 26 U.S.C. 

4181, 4182, 5123, 5203, 5207, 5275, 5367, 

5415, 5504, 5555, 5684(a), 5741, 5761(b), 

5802, 6020, 6021, 6064, 6102, 6155, 6159, 

6201, 6203, 6204, 6301, 6303, 6311, 6313, 

6314, 6321, 6323, 6325, 6326, 6331–6343, 

6401–6404, 6407, 6416, 6423, 6501–6503, 

6511, 6513, 6514, 6532, 6601, 6602, 6611, 

6621, 6622, 6651, 6653, 6656–6658, 6665, 

6671, 6672, 6701, 6723, 6801, 6862, 6863, 

6901, 7011, 7101, 7102, 7121, 7122, 7207, 

7209, 7214, 7304, 7401, 7403, 7406, 7423, 

7424, 7425, 7426, 7429, 7430, 7432, 7502, 

7503, 7505, 7506, 7513, 7601–7606, 7608– 

7610, 7622, 7623, 7653, 7805. 

§ 70.1 [Amended] 

■ 81. In § 70.1, the last sentence of 

paragraph (a)(3) is amended by adding 

after ‘‘and firearms taxes,’’ the words 

‘‘registration of dealers in alcohol fit for 

beverage use,’’. 

§ 70.96 [Amended] 

■ 82. In § 70.96, the third sentence of 

paragraph (c) is amended by removing 

the words ‘‘of liquor dealers’’. 

§ 70.321 [Amended] 

■ 83. Section 70.321 is amended: 

■ a. In paragraph (a), by removing and 

reserving paragraphs (a)(1) through 

(a)(5) and by removing the undesignated 

concluding text; and 

■ b. By removing the OMB justification 

statement at the end of the section. 

■ 84. Section 70.411 is amended: 

■ a. In paragraph (a), by removing the 

second sentence; 

■ b. In paragraph (b), by adding, after 

the first sentence, a new sentence to 

read as set forth below; 

■ c. Also in paragraph (b), in the last 

sentence, by adding after ‘‘qualification’’ 

the words ‘‘and registration’’; 

■ d. In paragraph (c)(16), by removing 

the words ‘‘special (occupational) taxes 

imposed on wholesale and retail dealers 

in liquors, wholesale and retail dealers 

in beer, and limited retail dealers’’ and 

adding, in their place, the words 

‘‘registration requirement imposed on 

wholesale and retail dealers in liquors 

and wholesale and retail dealers in 

beer’’; 

■ e. In paragraph (c)(27), by removing 

the words ‘‘special (occupational) and’’; 

and 

■ f. By removing the OMB justification 

statement at the end of the section. 

§ 70.411 Imposition of taxes, qualification 

requirements, and regulations. 

* * * * * 

(b) * * * Dealers in alcohol products 

fit for beverage use and manufacturers 

of nonbeverage products who claim 

drawback under section 5114 of the 

Internal Revenue Code must register. * 

* * 

* * * * * 

§ 70.412 [Amended] 

■ 85. Section 70.412 is amended: 

■ a. In paragraph (a), by removing the 

sixth sentence and, in the last sentence, 

by removing the words ‘‘and the 

payment of occupational taxes’’; and 

■ b. By removing the OMB justification 

statement at the end of the section. 

§ 70.414 [Amended] 

■ 86. Section 70.414 is amended: 

■ a. By removing and reserving 

paragraph (h); 

■ b. In paragraph (j), by removing the 

words ‘‘and claims for refund of special 

(occupational) tax,’’; and 

■ c. By removing the OMB justification 

statement at the end of the section. 

■ 87. New §§ 70.421 and 70.422 are 

added between the end of the § 70.420 

and the undesignated center heading 

below it, to read as follows: 

§ 70.421 Alcohol dealer registration. 

Every person who sells, or offers for 

sale, any alcohol product (distilled 

spirits, wines, or beer) fit for beverage 

use must register with the Alcohol and 

Tobacco Tax and Trade Bureau. The 

specific requirements are contained in 

the following regulations: 

(a) For proprietors of distilled spirits 

plants, parts 19 and 31 of this chapter; 

(b) For bonded wineries, bonded wine 

cellars, bonded wine warehouses, and 

taxpaid wine bottling houses, parts 24 

and 31 of this chapter; 

(c) For brewers, parts 25 and 31 of this 

chapter; 

(d) For persons bringing distilled 

spirits, wines, or beer from Puerto Rico 

and the Virgin Islands to the United 

States, parts 26 and 31 of this chapter; 

(e) For importers of distilled spirits, 

wines, or beer, parts 27 and 31 of this 

chapter; and 

(f) For wholesalers and retailers of 

distilled spirits, wines, or beer, part 31 

of this chapter. 

§ 70.422 Registration of manufacturers of 

nonbeverage products. 

For provisions regarding the 

registration of persons claiming 

drawback on distilled spirits used in the 

manufacture of certain nonbeverage 

products, see part 17 of this chapter. 

§ 70.431 [Amended] 

■ 88. Section 70.431 is amended by 

removing the word ‘‘and’’ at the end of 

paragraph (b)(7)(ii), by removing the 

period at the end of paragraph (b)(7)(iii) 

and adding, in its place, a semicolon 

followed by the word ‘‘and’’, and by 

adding a new paragraph (b)(7)(iv) to 

read as follows: 

§ 70.431 Imposition of taxes; regulations. 

* * * * * 

(b) * * * 


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(7) * * * 

(iv) Liability for special (occupational) 

tax, filing special tax returns, issuance 

and examination of special tax stamps, 

and notification of changes to special 

tax stamps. 

* * * * * 

Signed: October 17, 2008. 

John J. Manfreda, 

Administrator. 

Approved: March 20, 2009. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

Editorial Note: This document was 

received in the Office of the Federal Register 

on July 15, 2009. 

[FR Doc. E9–17177 Filed 7–27–09; 8:45 am] 

BILLING CODE 4810–31–P 


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