§ 195.253 Proprietor's failure to respond.

If the proprietor fails to respond to the notice of proposed assessment within the time specified, an assessment will be made for the amount found due in accordance with the prescribed procedure.

§ 195.254 Examination of evidence.

When such evidence of loss is received by the regional regulatory administrator, he will carefully examine the same to see that all the required information has been furnished, and will cause such investigation to be made, or require such additional evidence to be submitted, as he may deem necessary. Upon completion of his investigation, if any, the regional regulatory administrator will allow or disallow the loss in accordance with existing law and regulations.

Subpart T-Rules for Computing Capacity of Stills

§ 195.260 Pot or kettle stills.

The estimated maximum quantity in proof gallons of distilled spirits capable of being produced every 24 hours, which is required to be shown on the proprietor's application, will be computed as follows for pot or kettle stills:

The working capacity of pot or kettle stills will be determined by multiplying 80 percent of the cubic capacity of the still by the maximum number of boilings that can be made in 24 hours and then multiplying this result by the percent of alcohol by volume contained in the highest yielding material to be used in distillation. This result will represent the quantity of wine gallons of absolute alcohol that can be distilled in 24 hours. This quantity, when multiplied by 2, will represent the number of proof gallons. For example, if a pot still having a cubic capacity of 2,000 gallons is used, and such still can be charged three times in eight hours, and the highest percentage of alcohol by volume in the distilling material to be used is 8 percent, the spirit-producing capacity of the still will be computed as follows: 2,000×0.8×9×0.08×2=2,304 proof gal

lons. (The quantity that can be distilled in 24 hours.)

[20 FR 2356, Apr. 12, 1955, as amended by T.D. 6397, 24 FR 5710, July 16, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 195.261 Charge chamber stills.

The estimated maximum quantity in proof gallons of distilled spirits capable of being produced every 24 hours, which is required to be shown on the proprietor's application, will be computed as follows for charge chamber stills:

Where a charge chamber still is used, the estimated maximum quantity of distilled spirits in proof gallons capable of being produced will be determined by multiplying 80 percent of the cubic capacity of the top or charge chamber of the still by the number of times the same can be filled and emptied in 24 hours. This result will represent the total number of gallons of distilling material that can be distilled in 24 hours, which quantity will be multiplied by the percent of alcohol by volume contained in the highest yielding material to be used. The result of such computation will represent the number of wine gallons of absolute alcohol that can be distilled in 24 hours. This quantity, when multiplied by 2, will represent the number of proof gallons. For example, if a charge still is used having a charge chamber of a cubic capacity of 600 gallons which can be charged three times in one hour, and the highest percentage of alcohol by volume in the distilling material to be used is 8 percent, the spirit-producing capacity will be computed as follows: 600x0.8x 3×24×0.08x2=5,529.6 proof gallons. (The quantity that can be distilled in 24 hours.)

[20 2356, Apr. 12, 1955, as amended by T.D. 6397, 24 FR 5710, July 16, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 195.262 Continuous stills.

The estimated maximum quantity in proof gallons of distilled spirit capable of being produced every 24 hours, which is required to be shown on the proprietor's application, will be computed as follows for continuous stills:

If continuous stills are used, the maximum spirit-producing capacity in proof gallons of such stills will be computed on the area of the column in square feet. The first step will be to determine the inside diameter of the still at its base and the diameter will then be divided by 2 to ascertain the radius. The diameter may be determined (1) by accurately measuring the inside width of the still with a rod or tape, or (2) by measuring the outside circumference of the still and dividing the same by 3.1416 and deducting from the quotient twice the thickness of the sides of the still. The radius (in feet) will be squared and then multiplied by 3.1416 (Pi) to ascertain the area of the column in square feet. The area in square feet will be multiplied by the factor, 40 (the number of gallons of 100 proof spirits that can be distilled in one hour per square foot of plate area), and the result will represent the total number of gallons of 100 proof spirits that can be distilled in one hour. This quantity will be multiplied by 24 to determine the number of gallons of 100 proof spirits that can be distilled in one day. For example, if a continuous still having a diameter of 4 feet is used, the spirit-producing capacity will be computed as follows: 2×2×3.1416×40×24=12,063.74 proof gallons. (The quantity that can be produced in 24 hours.)

[20 FR 2356, Apr. 12, 1955, as amended by T.D. 6397, 24 FR 5710, July 16, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

196.34 Special tax return. 196.34a Employer identification number. 196.34b Application for employer identification number.

196.34c Execution of Form SS-4. 196.34d Hand carried returns. 196.35

Execution of Form 11.

196.36 Special (occupational) tax. 196.36a Issuance of stamps. 196.36b Distribution of special (occupational) tax stamps for multiple locations. 196.37 Examination of special tax stamp. 196.38 Special (commodity) tax. 196.39 Disposition of special (commodity) tax stamp.

196.40 Types of distilling apparatus subject to special (commodity) tax. 196.41 Use by United States.

PROCEDURE FOR REMOVAL For Domestic Use FOR DISTILLING

196.42 Notice of removal.

196.43 Application and permit to set up distilling apparatus.

196.44 Failure to give notice; penalty.

REGISTRY OF STILLS

196.45 Registration with regional regula

tory administrator.

196.46 When still is "set up".

196.47 Change in location or ownership of distilling apparatus.

Subpart D-Exportation and Removals to
Foreign-Trade Zones

196.60 Exportation.
196.60a Export status.

196.61 Marking of stills or condensers.

EXPORTATION WITHOUT PAYMENT OF TAX 196.62 Exportation without payment of tax.

EXPORTATION WITH BENEFIT OF DRAWBACK

Sec.

196.63 Drawback of tax.

196.64 Request for inspection; entry for exportation; drawback claim. 196.65 Payment of tax; inspection by ATF officer; certificate.

DELIVERY OF SHIPMENT for Export; BILL OF LADING

196.66 Shipment from premises located at

the port of exportation.

196.67 Shipment from premises not located at the port of exportation. 196.68 Inspection and lading. 196.69 Certificate of exportation.

APPROVAL AND SUBMISSION OF CLAIMS

196.70 Action by district director of internal revenue.

196.71 Action by regional regulatory administrator.

196.72 Penalty for fraudulently claiming drawback.

Subpart E-Removal of Stills Not Intended for Use in Distilling

196.80 Removal for domestic use. 196.81 Removal for exportation. 196.82 Bill of lading required.

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

Subpart A-Scope of Regulations

§ 196.1 Stills.

This part relates to the manufacture, taxpayment, removal, use, and registration of stills and condensers, and the exportation or transfer to foreign-trade zones of stills and condensers with benefit of drawback of internal revenue tax or without payment of tax.

[T.D. 6393, 24 FR 5297, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.2 Forms prescribed.

The Director is authorized to prescribe all forms required by this part, including applications, claims, records, and reports. Information called for shall be furnished in accordance with the instructions on the forms, or issued in respect thereto.

[20 FR 6117, Aug. 23, 1955, as amended by T.D. 7130, 36 FR 12853, July 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

Subpart B-Definitions

§ 196.5 Meaning of terms.

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

Condenser. "Condenser" shall mean any apparatus capable of being used when connected with a still, for condensing or liquefying alcoholic or spirituous vapors, but shall not include condensers to be used with laboratory stills or stills used for distilling water or other nonalcoholic materials where the cubic capacity of such stills is one gallon or less.

Director. The Director, Bureau of Alcohol, Tobacco, and Firearms, the Department of the Treasury, Washington, D.C.

Director of the service center. “Director of the service center" shall mean the Director, Internal Revenue Service Center, in each of the internal revenue regions.

Distilled spirits or spirits. Distilled spirits or spirits shall mean that substance known as ethyl alcohol, ethanol, or spirits of wine, including all dilutions and mixtures thereof, from whatever source or by whatever process produced, and shall include whisky, brandy, rum, gin, and vodka.

Distilling. "Distilling" shall mean the distillation of spirits as defined by section 5002(a)(6)(A) I.R.C. Such distillation shall include: (a) The original manufacture of distilled spirits from mash, wort, or wash, or any material suitable for the production of spirits; (b) the redistillation of spirits in the course of original manufacture; (c) the redistillation of spirits, or products containing spirits within the provisions of section 5082, I.R.C.; (d) the distillation, redistillation, or recovery of spirits or of completely or specially denatured spirits, or of articles containing spirits or completely or specially denatured spirits; and (e) the redistillation or recovery of tax-free spirits.

Distilling apparatus. "Distilling apparatus" shall mean any still or condenser defined in this section.

District director. "District director" shall mean a district director of internal revenue.

District district director of customs. The district district director of customs at a headquarters port of the district (except the district of New York, N.Y.), the area directors of customs in the district of New York, N.Y., and the port director at a port not designated as a headquarters port.

Inclusive language. Words in the plural form shall include the singular, and vice versa, and words in the masculine gender shall include the feminine, associations, partnerships, and corporations.

I.R.C. "I.R.C." shall mean the Internal Revenue Code of 1954.

Person, manufacturer, distiller, user. "Person," "manufacturer," "distiller," or "user" shall be construed to mean and include an individual, a trust, estate, partnership, association, company, or corporation.

Regional regulatory administrator. The principal ATF regional official responsible for administering regulations in this part.

Still. "Still" shall mean any apparatus capable of being used for separating alcoholic or spirituous vapors, or spirituous solutions, or spirits, from spirituous solutions or mixtures, but shall not include stills used for laboratory purposes or stills used for distilling water or other nonalcoholic materials where the cubic capacity of such stills is one gallon or less.

(26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and Sec. 38. Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744)) [T.D. ATF-48, 43 FR 13542, Mar. 31, 1978]

Subpart C-Manufacture, Taxpayment, Sale, Removal, and Registration of Stills or Condensers

§ 196.25 Manufacturer of stills defined.

Any person who manufactures any still or condenser to be used in distilling shall be deemed a manufacturer of stills.

(72 Stat. 1339; 26 U.S.C. 5102)

[20 FR 6117, Aug. 23, 1955, as amended by T.D. 6393, 24 FR 5297, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.26 Special tax liability; rate of tax.

Manufacturers of stills, as to each place of manufacture, shall pay a special (occupational) tax of $55, and, in addition thereto, a special (comm.odity) tax of $22, for each still or condenser to be used in distilling made by him, i.e., $22 for each still and $22 for each condenser: Provided, That the proprietor of a distilled spirits plant who manufactures stills or condensers exclusively for use in his plant or plants, shall not be subject to the special (occupational and commodity) taxes required by this section.

(72 Stat. 1339; 26 U.S.C. 5101, 5103) [T.D. 6393, 24 FR 5297, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

MANUFACTURE OF PARTS OF STILLS AND ASSEMBLING THEREOF

§ 196.27 Parts procured from same manufacturer.

If separate parts of a complete still or condenser, of any kind, are furnished by the same manufacturer to a person who assembles the same into a still or condenser for distilling, the manufacturer of the parts will incur liability for the special (occupational and commodity) taxes imposed upon manufacturers of stills.

(72 Stat. 1339; 26 U.S.C. 5101)

[20 FR 6117, Aug. 23, 1955, as amended by T.D. 6393, 24 FR 5297, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.28 Materials or apparatus procured and converted into distilling apparatus. If a person procures materials or apparatus which are not separately subject to tax under the provisions of this part and converts same into a still or condenser for distilling, he will, except as provided in § 196.26, incur liability for the special (occupational and commodity) taxes imposed upon manufacturers of stills.

(72 Stat. 1339; 26 U.S.C. 5102)

[T.D. 6393, 24 FR 5297, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]