ing temperature) corresponding to each uncorrected reading of a proof hydrometer.

(72 Stat. 1358; 26 U.S.C. 5204)

§ 186.66 Table 6, showing respective volumes of alcohol and water and the specific gravity in both air and vacuum of spirituous liquor.

This table provides an alternate method for use in ascertaining the quantity of water needed to reduce the strength of distilled spirits by a definite amount. To do this, divide the alcohol in the given strength by the alcohol in the required strength, multiply the quotient by the water in the required strength, and subtract the water in the given strength from the product. The remainder is the number of gallons of water to be added to 100 gallons of spirits of the given strength to produce a spirit of a required strength.

Example. It is desired to reduce spirits of 191 proof to 188 proof. We find that 191 proof spirits contains 95.5 parts alcohol and 5.59 parts water, and 188 proof spirits contains 94.0 parts alcohol and 7.36 parts water. 95.5 (the strength of 100 wine gallons of spirits at 191 proof) divided by 94.0 (the strength of 100 wine gallons of spirits at 188 proof) equals 1.01.

7.36 (the water in 188 proof) multiplied by 1.01 equals 7.43.

7.43 less 5.59 (the water in 191 proof spirits) equal 1.84 gallons of water to be added to each 100 wine gallons of 191 proof spirits to be reduced.

This rule is applicable for reducing to any proof; but when it is desired to reduce to 100 proof, it is sufficient to point off two decimals in the given proof, multiply by 53.73, and deduct the water in the given strength. Thus, to reduce 112 proof spirits to 100 proof:

1.12x53.73-47.75 equals 12.42 gallons of water to be added to each 100 wine gallons of spirits to be reduced.

This table may also be used to obtain the proof gallonage of spirituous liquor according to weight and percent of proof.

Example.

It is desired to determine the number of gallons in 400 pounds of spirits of 141 per

cent of proof. Multiply the weight of one galior. of water in air by the specific gravity in air of the spirits-8.32823 by 0.88862-the product (7.40063) divided into 400 gives 54.049 wine gallons, which rounded to the nearest hundredth is 54.05 and multiplied by 1.41 gives 76.2 proof gallons. In rounding off where the decimal is less than five, it will be dropped; if it is five or over a unit will be added.

(72 Stat. 1358; 26 U.S.C. 5204)

§ 186.67 Table 7, for correction of volume of spirituous liquors to 60 degrees Fahrenheit.

This table is prescribed for use in correcting spirits to volume at 60 degrees Fahrenheit. To do this, multiply the wine gallons of spirits which it is desired to correct to volume at 60 degrees Fahrenheit by the factor shown in the table at the percent of proof and temperature of the spirits. The product will be the corrected gallonage at 60 degrees Fahrenheit. This table is also prescribed for use in ascertaining the true capacity of containers where the wine gallon contents at 60 degrees Fahrenheit have been determined by weight in accordance with Tables 2, 3, 4, or 5. This is accomplished by dividing the wine gallons at 60 degrees Fahrenheit by the factor shown in the table at the percent of proof and temperature of the spirits. The quotient will be the true capacity of the container.

Example. It is desired to ascertain the volume at 60 degrees Fahrenheit of 1,000 wine gallons of 190 proof spirits at 76 degrees Fahrenheit:

1,000×0.991 equals 991 wine gallons, the corrected gallonage at 60 degrees Fahrenheit.

Example. It is desired to ascertain the capacity of a container of 190 proof spirits at 76 degrees Fahrenheit, shown by Table 2 to contain 55.1 wine gallons at 60 degrees Fahrenheit:

55.1 divided by 0.991 equals 55.6 wine gallons, the true capacity of the container when filled with spirits of 60 degrees temperature.

It will be noted that the table is prepared in multiples of 5 percent of proof and 2 degrees temperature. Where the spirits to be corrected are of an odd temperature, one-half of the

difference, if any, between the factors for the next higher and lower temperature, should be added to the factor for the next higher temperature.

Example. It is desired to correct spirits of 180 proof at 51 degrees temperature: 1.006 (50°)-1.005 (52°)=0.001÷2=0.0005 0.0005+1.005 1.0055 correction factor at 51° F.

Example. It is desired to correct spirits of 180 proof at 53 degrees temperature: 1.005 (52°)-1.003 (54°)=0.002÷2=0.001 0.001+1.003

F.

1.004 correction factor at 53°

Where the percent of proof is other than a multiple of five, the difference, if any, between the factors for the next higher and lower proofs should be divided by five and multiplied by the degrees of proof beyond the next lower proof, and the fractional product so obtained should be added to the factor for the next lower proof (if the temperature is above 60 degrees Fahrenheit, the fractional product so obtained must be subtracted from the factor for the next lower proof), or if it is also necessary to correct the factor because of odd temperature, to the temperature corrected factor for the next lower proof.

Example. It is desired to ascertain the correction factor for spirits of 112 proof at 47 degrees temperature:

1.006 (46°)-1.005 (48°)=0.001÷2=0.0005 0.0005+1.005=1.0055 corrected factor at 47°

F.,

1.007 (115 proof) – 1.006 (110 proof)=0.001 0.0015 0.0002 (for each percent of proof)×2 (for 112 proof)=0.0004

0 0004+ 1.0055 (corrected factor at 47° F.) 1.0059 correction factor to be used for 112 proof at 47° F.

Example. It is desired to ascertain the correction factor for spirits of 97 proof at 93 degrees temperature:

0.986 (92°)-0.985 (94°)=0.001÷2=0.0005 0.0005+0.985-0.9855 corrected factor at 93°

194.25

Retail dealer in beer.

194.26 Wholesale dealer in beer.

194.27 Limited retail dealer; persons eligible.

194.28 Sales of 20 wine gallons (75.7 liters) or more.

SPECIAL TAX LIABILITY OF CERTAIN ORGANIZATIONS, AGENCIES AND PERSONS 194.29 Clubs or similar organizations. 194.30 Restaurants serving liquors with meals.

194.31 States, political subdivisions thereof, or the District of Columbia. 194.32 Sales of denatured spirits or articles.

194.33 Sales of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer.

194.34 Sales by agencies and instrumentalities of the United States. 194.35 Warehouse receipts covering spirits. SPECIAL TAX AS RECTIFIER

194.38 Mixing cocktails in advance of sale.

Subpart D-Administrative Provisions

194.41 Forms prescribed. 194.42 Right of entry and examination.

Subpart E-Places Subject to Special Tax

194.51 Special tax liability incurred at each place of business.

194.52 Place of sale.

194.53 Place of offering for sale.

93°

194.54 Places of storage; deliveries therefrom.

F.)- 0.0004 0.9851 correction factor to be used for 97 proof at 93° F.

(72 Stat. 1358; 26 U.S.C. 5204)

194.55 Caterers.

194.56 Peddling.

Subpart O-Prescribed Records and Reports, and Posting of Signs

WHOLESALE DEALERS' RECORDS AND REPORTS 194.221 General requirements as to distilled spirits.

194.222 Requirements as to wines and beer. 194.223 Records to be kept by States, polit

ical subdivisions thereof, or the District of Columbia.

194.224 Records to be kept by proprietors of distilled spirits plants. 194.225 Records of receipt. 194.226 Records of disposition. 194.227

Cancelled or corrected records. 194.228 Previously prescribed or approved records of receipt and disposition. 194.229 Variations in format, or preparation, of records.

194.230 Recapitulation records. 194.231 Wholesale liquor dealer's semiannual report, Form 338.

194.232 Conversion between metric and U.S. units.

Other dealers; no sign required.

Subpart P-Strip Stamps

194.251 Strip stamps required on all bottles.

194.252 Breaking of strip on opening bottle.

194.253 Mutilated or missing strip stamps. 194.254 Replacement of strip stamps found by dealer to be mutilated or missing. 194.255 Strip stamps found by ATF officer to be mutilated or missing.

194.256 Replacement not required.

Subpart Q-Reuse and Possession of Used Liquor Bottles

194.261 Refilling of liquor bottles. 194.262 Possession of refilled liquor bottles.

194.263 Possession of used liquor bottles. 194.264 Mixed cocktails.

Subpart R-Packaging of Alcohol for Industrial Uses

194.271 Requirements and procedure. 194.272 Labeling.

Subpart S-Distilled Spirits for Export With Benefit of Drawback

194.281 General. 194.283 Records.

Sec.

Subpart T-Miscellaneous

194.291 Destruction of marks and brands on wine containers.

194.292 Wine bottling.

AUTHORITY: 68A Stat. 917; 26 U.S.C. 7805, unless otherwise noted.

SOURCE: 25 FR 6270, July 2, 1960, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975.

Subpart A-Scope of Regulations

§ 194.1 Applicability.

This part contains the substantive and procedural requirements relating to the special taxes imposed on wholesale and retail dealers in liquors, wholesale and retail dealers in beer, and limited retail dealers; requirements and procedures pertaining to operations of such dealers prescribed under the Internal Revenue Code of 1954, as amended; and provisions relating to entry of premises and inspection of records by ATF officers.

§ 194.2 Territorial extent.

The provisions of this part shall be applicable in the several States of the United States and the District of Columbia.

§ 194.3 Basic permit requirements.

Every person, except an agency of a State or political subdivision thereof, who intends to engage in the business of selling distilled spirits, wines, or beer to other dealers is required by regulations in 27 CFR Part 1 to obtain a basic permit authorizing him to engage in such business.

§ 194.4 Relation to State and municipal law.

The payment of any tax imposed by Chapter 51, I.R.C., for carrying on any trade or business specified in § 194.1 shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on such 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 the payment of any such tax be held to prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes.

(72 Stat. 1348; 26 U.S.C. 5145)

[T.D. 7130, 36 FR 12852, July 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

Subpart B-Definitions

§ 194.11 Meaning of terms.

When used in this part and in forms prescribed under this part, where not otherwise distir.ctly expressed or manifestly the incompatible with intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms "includes" and "including" do not exIclude things not enumerated which are in the same general class.

ATF Officer. An officer or employee of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to perform any function relating to the administration or enforcement of this part.

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.

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.