Subpart A-Scope of Regulations

§ 245.1 Beer.

The regulations in this part relate to beer and cereal beverages and cover the location, construction, equipment, and operations of breweries and pilot brewing plants and the qualification of such establishments including the ownership, control, and management thereof.

[T.D. 7113, 36 FR 8799, May 13, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

$ 245.2 Forms prescribed.

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

[21 FR 8627, Nov. 9, 1956 as amended by T.D. 7130, 36 FR 12856, July 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

Subpart B-Definitions

§ 245.5 Meaning of terms.

or

the

When used in this part, where not otherwise distinctly expressed with manifestly incompatible intent thereof, terms shall have the meanings ascribed in this subpart, as follows:

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" shall mean 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.

(68A Stat. 612; 26 U.S.C. 5052)

Bottle and bottling. "Bottle" shall mean a bottle, can, or similar container, and "bottling" shall mean the filling of bottles, cans, and similar containers.

Brewer. Any person who brews beer (except a person who produces only beer exempt from tax under 26 U.S.C. 5053 (e)) and any person who produces beer for sale.

(Sec. 2, Pub. L. 95-458, 92 Stat. 1256 (26 U.S.C. 5092))

Brewery. "Brewery" shall mean the land and buildings described as such in the brewer's notice on Form 27-C, where beer is to be produced and packaged.

(72 Stat. 1389, as amended; 26 U.S.C. 5402, 5411)

Brewing. "Brewing" shall mean the production of beer for sale.

Business day. "Business day" shall mean the 24-hour cycle of operations in effect at the brewery, which, if other than the calendar day, is subject to the approval of the regional regulatory administrator. The business day, having been once established, shall be applicable to all records and operations of the brewery, and shall not be changed without approval of the regional regulatory administrator.

Cereal beverage. "Cereal beverage" shall mean malt beverage, either fermented or unfermented, which contains, when ready for consumption, less than one-half of 1 percent of alcohol by volume.

Delegate. Any officer, employee, or agency of the Department of the Treasury authorized by the Secretary of the Treasury directly, or indirectly by one or more redelegations of authority, to perform the function mentioned or described in the context.

Director. The Director, the Department of the Treasury, Washington, D.C.

Director of the service center. "Director of the service center" shall mean the director of the internal revenue service center in each of the internal revenue regions.

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

Executed under penalties of perjury. "Executed under penalties of perjury" shall mean signed with the prescribed declaration under the penalties of perjury as provided on or with respect to the return, claim, form, or other docu

40-071 0-79--53

ment or, where no form of declaration is prescribed, with the declaration: "I declare under the penalties of perjury that this (insert type of document such as statement, report, certificate, application, claim, or other document), including the documents submitted in support thereof, has been examined by me and, to the best of my knowledge and belief, is true, correct and complete."

Gallon. "Gallon" shall mean the liquid measure containing 231 cubic inches.

(68A Stat. 612; 26 U.S.C. 5052)

Includes and including. "Includes" and "including" shall not be deemed to exclude things other than those enumerated which are in the same general class.

Inclusive language. Words in the plural form shall include the singular and vice versa, and words in the masculine gender shall include the feminine as well as individuals, trusts, estates, partnerships, associations, companies, corporations, and other legal entities.

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

Package and packaging. "Package" shall mean a bottle, can, keg, barrel, or other original consumer container, and "packaging" shall mean the filling of any package.

(72 Stat. 1390, as amended; 26 U.S.C. 5416)

Person. "Person" shall mean and inIclude an individual, a trust, estate, partnership, association, company, and corporation.

(68A Stat. 911; 26 U.S.C. 7701)

Region. A Bureau of Alcohol, Tobacco and Firearms Region.

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

Removed for consumption or sale. "Removed for consumption or sale" (except when used with respect to beer removed without payment of tax as authorized by law) shall mean (a) the sale and transfer of possession of beer for consumption at the brewery or (b) any removal of beer from the brewery. (72 Stat. 1333, as amended; 26 U.S.C. 5052)

Secretary. "Secretary" shall mean the Secretary of the Treasury or his delegate.

This chapter. Chapter I, Title 27, Code of Federal Regulations.

U.S.C. "U.S.C." shall mean the United States Code.

(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 13550, Mar. 31, 1978. as amended by T.D. ATF-55, 44 FR 7140, Feb. 6, 1979)

Subpart C-Location and Use of Brewery

§ 245.10 Restrictions.

A brewery may not be established or operated in any dwelling house or on board any vessel or boat; or in any building or on any premises where the revenue will be jeopardized or the effective administration of this part will be hindered.

§ 245.11 Continuity of brewery.

The continuity of the brewery must be unbroken except where separated by public passageways, streets, highways, waterways, or carrier rights-ofway, or partitions; and if parts of the brewery are so separated they must abut on the dividing medium and be adjacent to each other. Notwithstanding the preceding sentence, facilities under the control of the brewer for loading, or for case packing or storing. which are located within reasonable proximity to the brewery packaging facilities may be approved by the regional regulatory administrator as a ! part of the brewery if the revenue will not be jeopardized thereby.

(72 Stat. 1389, as amended; 26 U.S.C. 5402) [T.D. 7113, 36 FR 8799, May 18, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 245.12 Use of brewery.

The brewery shall be used exclusively, except as provided herein, for the purposes of (a) producing, packaging. and storing beer, cereal beverages containing less than one-half of 1 percent of alcohol by volume, vitamins, ice. malt, malt syrup, and other byprod

ucts and soft drinks and other nonalcoholic beverages; (b) processing spent grain, carbon dioxide, and yeast; and (c) storing packages and supplies necessary or incidental to all such operations. If the brewer desires to use the brewery for other purposes, not involving the production of alcoholic beverages, which (1) require the use of byproducts or wastage from the production of beer, or utilize buildings, rooms, areas, or equipment not fully employed in the production or packaging of beer, (2) are reasonably necessary to realize the maximum benefit from the premises and equipment and to reduce the overhead of the plant, (3) are in the public interest because of emergency conditions, or (4) involve experiments or research projects related to equipment, materials, processes, products, byproducts, or wastage of the brewery, he may submit an application, in triplicate, so to do to the Director, Alcohol and Tobacco Tax Division, through the regional regulatory administrator. The Director, Alcohol and Tobacco Tax Division, will approve such application where he finds that such use will not jeopardize the revenue, will not impede the effective administration of this part, and is not contrary to the specific provisions of law.

(72 Stat. 1389, as amended; 26 U.S.C. 5411) [T.D. 7113, 36 FR 8799, May 13, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975)

§ 245.13 Storage of beer.

(a) Taxpaid beer. Beer on which the tax has been paid or determined shall not be stored in the brewery except as provided in § 245.157.

(b) Untaxpaid beer. Packaged beer on which tax has not been paid or determined may be stored in any suitable location in the brewery.

(72 Stat. 1389, as amended; 26 U.S.C. 5411) [T.D. 7113, 36 FR 8799, May 13, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

Subpart D-Construction

§ 245.15 Brewery buildings.

Brewery buildings shall be so arranged and constructed as to afford adequate protection to the revenue

and facilitate inspection by ATF offi

cers.

§ 245.16 Division of brewery.

The brewer shall designate the use of each building, cellar, room, or other division of the brewery where wort or beer is kept or handled by placing a plain and durable sign or legend (descriptive of its use) on or near the entrance thereto. If more than one building, room, etc., is used for the same purpose, alphabetical or numerical designations shall be used to further identify such divisions.

§ 245.17 Empty container storage.

Empty barrels, kegs, bottles, other containers, or other supplies stored in the brewery must be segregated from filled containers.

[T.D. 6963, 33 FR 10511, July 24, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975]

Subpart E-Equipment

§ 245.25 Tanks and vats.

Each stationary tank, vat, cask, or other container used, or intended for use, as a receptacle for wort or beer shall be durably marked to show its designated use or uses, serial number, and capacity, and be equipped with a suitable measuring device: Provided, That in lieu of equipping each tank or container with an individual measuring device, the brewer may provide meters or other suitable portable devices.

(68 Stat. 680; 26 U.S.C. 5552)

Subpart F-Beer Meters

§ 245.30 Metering systems required.

Brewers shall be required to provide, at their own expense, approved meters for measuring beer to be packaged.

(72 Stat. 1395; 26 U.S.C. 5552)

[T.D. 7113, 36 FR 8799, May 13, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 245.31 Notice of acquisition of meter.

When the brewer receives a meter from the manufacturer or from another source he shall notify the regional regulatory administrator of the

region wherein the brewery is located. The notice shall be submitted in duplicate, and shall state the make, model, and serial number of the meter, and the source and date of acquisition. The meter shall not be used for measuring beer to be packaged until it has been tested for accuracy and proper functioning.

(72 Stat. 1395; 26 U.S.C. 5552)

[T.D. 7113, 36 FR 8799, May 13, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

$ 245.32 Locan and installation.

Beer meters shall be located and installed so that all beer to be packaged shall (except as provided in § 245.36) pass through the meters and so that they will be readily accessible for examination by ATF officers. The meter installations, including piping, valves, and electrical circuitry (where required) shall be so arranged that the testing equipment and procedures approved by the regional regulatory administrator may be readily accommodated.

(72 Stat. 1395; 26 U.S.C. 5552)

[T.D. 7113, 36 FR 8799, May 13, 1971; 36 FR 9294, May 22, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 245.33 Meter test approval.

Brewers shall provide such tests, adjustments, and repairs as may be required to maintain meters in such a manner that they accurately and reliably measure and record beer metered for packaging. The frequency of meter tests, and the equipment used and procedures employed in testing meters, shall be subject to approval by the regional regulatory administrator. The brewer shall submit a letterhead application, in triplicate, which shall describe, in detail, the method by which he proposes to maintain the accuracy and reliability of each metering system to be used for the measurement of beer to be packaged and list the make, model, and serial number of each meter to be used by him for such purpose. The regional regulatory administrator shall, after satisfying himself as to the adequacy of the proposed method, indicate his approval on all copies of the application and

return the original to the brewer who shall keep it on file on the brewery premises available for examination by ATF officers.

(72 Stat. 1395; 26 U.S.C. 5552) (T.D. 7113, 36 FR 8799, May 13, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 245.34 Meter tests.

(a) General requirements. The allowable variation of beer meters, as established by approved tests, shall not exceed 0.5 percent (plus or minus). If a meter test discloses an error in excess of the allowable variation, it shall be corrected immediately by suitable adjustment. Adjustments shall reduce the error to as near zero as practicable. If the meter or counter does not function properly or record accurately after adjustment or repair, the use of such meter or counter shall be discontinued and a suitable replacement installed. The brewer shall record on Form 138 the counter reading at the time a counter or meter is placed in service for measuring beer or removed therefrom.

(b) Authority to require tests. When the regional regulatory administrator has reason to believe the accuracy and reliability of a meter is not being properly maintained, he may require the brewer to have the meter tested, and, if necessary, adjusted. The regional regulatory administrator may require that such testing and adjustment be supervised by an ATF officer.

(72 Stat. 1395; 26 U.S.C. 5552) [T.D. 7091, 36 FR 4116, Mar. 4, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 245.35 Report of meter tests.

When a meter is tested, the brewer shall prepare Form 138, Brewer's Report of Meter Test. He shall submit the original and one copy of the form to the regional regulatory administrator and file the remaining copy on the brewery premises where it will be available for examination by ATF offi

cers.

[T.D. 7091, 36 FR 4116, Mar. 4, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]