Subpart F-Revocation, Suspension, or Annulment of Basic Permits

§1.50 Revocation or suspension.

Whenever the Regional director (compliance) has reason to believe that any permittee has willfully violated any of the conditions of his basic permit or has not engaged in the operations authorized by the permit for a period of more than two years, he shall institute proceedings for the revocation or suspension of such permit, in accordance with the procedure set forth in part 200 of this chapter, which part is made applicable to such proceedings.

[T.D. 6521, 25 FR 13831, Dec. 29, 1960, as amended by T.D. ATF-48, 44 FR 55837, Sept. 28, 1979]

$1.51 Annulment.

Whenever the Regional director (compliance) has reason to believe that any basic permit was procured through fraud, or misrepresentation or concealment of material fact, he shall institute proceedings for the annulment of such permit in accordance with the procedure set forth in part 200 of this chapter, which part is made applicable to such proceedings.

[T.D. 6521, 25 FR 13831, Dec. 29, 1960, as amended by T.D. ATF-48, 44 FR 55837, Sept. 28, 1979]

$1.52 Disposition of stocks of alcoholic beverages upon revocation, annulment, or automatic termination of basic permit.

In the event of the revocation or annulment of a basic permit, pursuant to part 200 of this chapter, or in the event such permit is automatically terminated by operation of law (27 U.S.C. 204(g)) and section 144, the Regional director (compliance) may authorize the orderly disposition of stocks of distilled spirits, wines, or malt beverages then held by the permittee or former permittee upon such conditions as may be considered proper.

[T.D. 6521, 25 FR 13831, Dec. 29, 1960, as amended by T.D. ATF-48, 44 FR 55837, Sept. 28, 1979]

Subpart G-Miscellaneous

$1.55 Recalling permits for correction.

Whenever it shall be discovered that any basic permit has been issued authorizing acts, or combinations of acts, which may not properly, under the law and regulations, as of now or hereafter in force, be authorized, or that any material mistake has occurred in the issuance thereof, the holder of such permit shall forthwith surrender the same for correction or amendment upon demand of the Regional director (compliance). §1.56 Oaths and affirmations.

Any document required by regulations or instructions of the Director to be verified, shall be so verified upon oath or affirmation taken before a person authorized by the laws of the United States or by State or local law to administer oaths or affirmations in the State, Territory, or District wherein such document is to be executed.

$1.57 Procedure.

The procedures prescribed by the rules of practice in Permit Proceedings (part 200 of this chapter) are applicable to administrative proceedings for the issuance, amendment, denial, revocation, suspension, or annulment of basic permits, the issuance of subpoenas and the taking of depositions under the Federal Alcohol Administration Act.

[T.D. 6521, 25 FR 13831, Dec. 29, 1960, as amended by T.D. ATF-48, 44 FR 55837, Sept. 28, 1979]

§1.58 Filing of permits.

Every person receiving a basic permit under the provisions of this part must file the same, at the place of business covered by the basic permit, so that it may be examined by Government offi

cers.

$1.59 Public information as to applications acted upon.

The Regional director (compliance) shall cause to be maintained currently in his office for public inspection, until the expiration of one year following final action on the application, the following information with respect to each application for basic permit filed:

(a) The name, including trade name or names, if any, and the address of the applicant; the kind of permit applied for and the location of the business; whether the applicant is an individual, a partnership or a corporation; if a partnership, the name and address of each partner; if a corporation, the name and address of each of the principal officers and of each stockholder owning 10 percent or more of the corporate stock.

(b) The time and place set for any hearing on the application.

(c) The final action taken on the application. In the event a hearing is held upon an application for a basic permit, the Regional director (compliance) shall make available for inspection at his office, upon request therefor: The transcript of the hearing, a copy of the administrative law judge's recommended decision, a copy of the Regional director (compliance) decision and, in the event of an appeal to the Director, Bureau of Alcohol, Tobacco and Firearms, the decision on appeal with the reasons given in support thereof.

[T.D. 6521, 25 FR 13831, Dec. 29, 1960, as amended by T.D. ATF-48, 44 FR 55838, Sept. 28, 1979; T.D. ATF-249, 52 FR 5955, Feb. 27, 1987]

AUTHORITY: August 29, 1935, Chapter 814, sec. 1, 49 Stat. 977, as amended (27 U.S.C. 202), unless otherwise noted.

SOURCE: T.D. 6521, 25 FR 13833, Dec. 29, 1960, unless otherwise noted.

Subpart A-Scope of Regulations §2.1 Nonindustrial use of distilled spirits and wine.

The regulations in this part specify what uses of distilled spirits and wine are "nonindustrial," as that term is used in section 17 of the Federal Alcohol Administration Act. No procedural requirements are prescribed.

Subpart B-Definitions

§2.5 Meaning of terms.

Distilled spirits. Section 17(a) of the Federal Alcohol Administration Act defines "distilled spirits" as ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof for nonindustrial use.

Wine. Section 17(a) of the Federal Alcohol Administration Act defines "wine" as (a) wine as defined in section 610 and section 617 of the Revenue Act of 1918 (26 U.S.C. 5381-5392), as now in force or hereafter amended, and (b) other alcoholic beverages not so defined, but made in the manner of wine, including sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than the juice of sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry, and sake; in each instance, only if containing not less than 7 percent and not more than 24 percent of alcohol by volume, and if for nonindustrial use.

[T.D. ATF-48, 44 FR 55838, Sept. 28, 1979]

Subpart C-Uses Regarded as Industrial

§2.10 Use of distilled spirits.

The following uses of distilled spirits are regarded as “industrial" and will be excluded from any application of the term "nonindustrial use." The use of distilled spirits:

(a) Free of tax by, and for the use of, the United States or any governmental agency thereof, any State or Territory, any political subdivision of a State or Territory, or the District of Columbia, for nonbeverage purposes; or

(b) Free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale:

(1) For the use of any educational organization described in 26 U.S.C. 503(b)(2) which is exempt from income tax under 26 U.S.C. 501(a), or for the use of any scientific university or college of learning;

(2) For any laboratory for use exclusively in scientific research;

(3) For use at any hospital, blood bank, or sanitarium (including use in making analysis or test at such hospital, blood bank, or sanitarium), or at any pathological laboratory exclusively engaged in making analyses or tests, for hospitals or sanitariums; or

(4) For the use of any clinic operated for charity and not for profit (including use in compounding of bona fide medicines for treatment outside of such clinics of patients thereof); or

(c) Free of tax, after denaturation of such spirits in the manner prescribed by law for:

(1) Use in the manufacture of ether, chloroform, or other definite chemical substance where such distilled spirits are changed into some other chemical substance and do not appear in the finished product; or

(2) Any other use in the arts and industries (except for uses prohibited by 26 U.S.C. 5273 (b) or (d) and for fuel, light, and power.

§2.11 Use of wine.

The following uses of wine are regarded as "industrial” and will be excluded from any application of the term "nonindustrial". The use of wine: (a) Without payment of tax for use in the production of vinegar; or

(b) Free of tax for experimental or research purposes by any scientific university, college of learning, or institution of scientific research; or

(c) Free of tax for use by the United States or any agency thereof, and for use for analysis, testing, research, or experimentation by the governments of the several States and Territories and

the District of Columbia or of any political subdivision thereof or by any agency of such governments; or

(d) Which has been rendered unfit for beverage use.

$2.12 Use of distilled spirits or wine for experimental purposes and in manufacture of nonbeverage prod

ucts.

The use of distilled spirits or wine for experimental purposes and in the manufacture of (a) medicinal, pharmaceutical, or antiseptic products, including prescriptions compounded by retail druggists; (b) toilet preparations; (c) flavoring extracts, syrups, or food products; or (d) scientific, chemical, mechanical, or industrial products. provided such products are unfit for beverage use, is regarded as "indus trial," and will be excluded from any application of the term "nonindustria use.'

Subpart D-Uses Classed as Nonindustrial

$2.15 General.

All uses of distilled spirits and wines except as provided in Subpart C of this part, are regarded as "nonindustrial.' Such "nonindustrial” use shall include but not be limited to, distilled spirit or wine used for beverage purposes, o in the manufacture, rectification, o blending of alcoholic beverages; or i the preparation of food or drink by hotel, restaurant, tavern, or similar es tablishment; or for sacramental pur poses; or as a medicine.

§2.16 Distilled spirits in containers o a capacity of one gallon or less. Distilled spirits in containers of a ca pacity of one wine gallon or less, ex cept anhydrous alcohol and alcoho which may be withdrawn free of ta under the internal revenue laws, wil be deemed to be for nonindustrial use

Subpart B-Definitions

3.5 Meaning of terms.

Subpart C-Bulk Sales and Bottling

3.10 Sales of distilled spirits in bulk. 3.11 Importation of distilled spirits in bulk. 3.12 Acquiring or receiving distilled spirits

in bulk for redistillation, processing, rectification, warehousing, or warehousing and bottling.

3.13 Acquiring or receiving distilled spirits in bulk for addition to wine.

3.14 Acquisition of distilled spirits in bulk by Government agencies.

Subpart D-Warehouse Receipts

3.20 Distilled spirits in bulk. 3.21 Bottled distilled spirits.

Subpart E-Sales of Distilled Spirits for Industrial Use

3.25 General.

AUTHORITY: August 29, 1935, Chapter 814, sec. 6, 49 Stat. 985, as amended (27 U.S.C. 206), unless otherwise noted.

SOURCE: T.D. 6521, 25 FR 13834, Dec. 29, 1960, unless otherwise noted.

Subpart A-Scope of Part

§3.1 Bulk sales and bottling of distilled spirits.

This part, issued pursuant to section 6 of the Federal Alcohol Administration Act (27 U.S.C. 206), contains the substantive requirements relative to bulk sales and bottling of distilled spirits under the Federal Alcohol Administration Act, including the terms of warehouse receipts for distilled spirits in bulk. No procedural requirements are prescribed.

Subpart B-Definitions

§3.5 Meaning of terms.

As used in this part, unless the context otherwise requires, terms shall have the meaning ascribed in this subpart.

Alcohol. Ethyl alcohol distilled at or above 190° proof.

Brandy. Brandy or wine spirits for addition to wines as permitted by internal revenue law.

Distilled spirits. Section 17(a) of the Federal Alcohol Administration Act defines "distilled spirits" as ethyl alco

hol, hydrated oxide of ethyl, spirits of wine, whisky, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof, for nonindustrial use.

In bulk. Distilled spirits in containers having a capacity in excess of one wine gallon.

Other terms. Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the meaning assigned to it by the Act. [T.D. ATF-48, 44 FR 55838, Sept. 28, 1979] Subpart C-Bulk Sales and Bottling §3.10 Sales of distilled spirits in bulk.

It is unlawful for any person to sell, offer to sell, contract to sell, or otherwise dispose of distilled spirits in bulk, for nonindustrial use, except for export or to the classes of persons enumerated in §§3.12, 3.13 and 3.14.

§3.11 Importation of distilled spirits in bulk.

It is unlawful for any person to import distilled spirits in bulk, for nonindustrial use, except for sale to or for use by the classes of persons enumerated in §§3.12, 3.13 and 3.14.

$3.12 Acquiring or receiving distilled spirits in bulk for redistillation, processing, rectification, warehousing, or warehousing and bottling.

(a) Proprietors of distilled spirits plants. Persons holding basic permits (issued under part 1 of this chapter) authorizing the distilling, processing, rectifying, or warehousing and bottling of distilled spirits, or operating permits (issued under §19.157 and succeeding sections of this chapter) may acquire or receive in bulk and redistill, warehouse, or porcess distilled spirits, so far as permitted by law.

(b) Proprietors of class 8 customs bonded warehouses. If the permittee operates a class 8 customs bonded warehouse, he may acquire or receive in bulk, and warehouse and bottle, imported distilled spirits, so far as permitted by the customs laws.

(26 U.S.C. 7805 (68A Stat. 917, as amended); 27 U.S.C. 205 (49 Stat. 981, as amended))

[T.D. ATF-198, 50 FR 8463, Mar. 1, 1985]