2.18 Distilled spirits in containers of a capacity of one gallon or less. AUTHORITY: The provisions of this Part 2 issued under 49 Stat. 977, as amended; 27 U.S.C. 202 note.

SOURCE: The provisions of this Part 2 contained in Treasury Decision 6521, 25 F.R. 18833, 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.

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. 3036, 3044, 3045), 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 per centum and not more than 24 per centum of alcohol by volume, and if for nonindustrial use.

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 products.

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 "industrial," and will be excluded from any application of the term "nonindustrial use."

Subpart D-Uses Classed as
Nonindustrial

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 spirits or wine used for beverage purposes, or in the manufacture, rectification, or blending of alcoholic beverages; or in the preparation of food or drink by a hotel, restaurant, tavern, or similar establishment; or for sacramental purposes; or as a medicine.

§ 2.16 Distilled spirits in containers of a capacity of one gallon or less. Distilled spirits in containers of a capacity of one wine gallon or less, except anhydrous alcohol and alcohol which may be withdrawn free of tax under the internal revenue laws, will be deemed to be for nonindustrial use.

AUTHORITY: The provisions of this Part 8 issued under 49 Stat. 985, as amended; 27 U.S.C. 206.

SOURCE: The provisions of this Part 8 contained in Treasury Decision 6521, 25 F.R. 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 Distilled spirits.

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

§3.6 Brandy.

As used in this part, the term "brandy" means brandy or wine spirits for addition to wines as permitted by Internal Revenue law and the term "alcohol" means ethyl alcohol distilled at or above 190° proof.

§ 3.7 In bulk.

As used in this part, the term "in bulk" shall mean in containers having a capacity in excess of 1 wine gallon.

§ 3.8 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 such act.

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.

Persons holding basic permits (issued under 27 CFR Part 1) authorizing the distilling, rectifying, or warehousing and bottling of distilled spirits, or operating permits (issued under 26 CFR 201.136 et seq.) may acquire or receive in bulk distilled spirits as follows:

(a) Proprietor of a distilled spirits plant having distilling or bonded storage facilities. If the permittee is authorized to operate distilling or bonded storage facilities of a distilled spirits plant, he may acquire or receive in bulk, and redistill or otherwise process, or warehouse, or warehouse and bottle domestic untaxdetermined distilled spirits.

(b) Proprietor of a distilled spirits plant having bottling premises for bottling taxpaid distilled spirits. If the permittee is authorized to operate taxpaid bottling premises of a distilled

spirits plant, he may acquire or receive in bulk, and warehouse and bottle imported taxpaid distilled spirits and domestic distilled spirits on which all applicable taxes imposed by law have beeen determined or paid as provided by law. If he is authorized to rectify distilled spirits, he may acquire or receive in bulk taxpaid imported distilled spirits, and domestic distilled spirits on which all applicable taxes imposed by law have been determined or paid as provided by law, for use in rectifying and blending or for warehousing and bottling.

(c) Proprietor of class 8 customs bonded warehouse. 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.

§3.13 Acquiring or receiving distilled spirits in bulk for addition to wine. Persons holding permits as producers and blenders of wine, may, pursuant to such permit, acquire or receive in bulk alcohol or brandy for addition to wines. §3.14 Acquisition of distilled spirits in bulk by Government agencies.

Any agency of the United States, or of any State or political subdivision thereof, may acquire or receive in bulk, and warehouse and bottle, imported and domestic distilled spirits in conformity with the internal revenue laws.

Subpart D-Warehouse Receipts §3.20 Distilled spirits in bulk.

By the terms of the Federal Alcohol Administration Act (27 U.S.C. 206), all warehouse receipts for distilled spirits in bulk must require that the warehouseman shall package such distilled spirits, before delivery, in bottles labeled and marked in accordance with law, or deliver such distilled spirits in bulk only to persons to whom it is lawful to sell or otherwise dispose of distilled spirits in bulk.

§ 3.21 Bottled distilled spirits.

The provisions of the Federal Alcohol Administration Act, which forbid any person to sell, offer to sell, contract to sell, or otherwise dispose of warehouse receipts for distilled spirits in bulk, do not apply to warehouse receipts for bottled distilled spirits.

CROSS REFERENCE: For labeling of distilled spirits, see Part 5 of this chapter.

4.80 Exports.

AUTHORITY: The provisions of this Part 4 issued under 49 Stat. 981, as amended; 27 U.S.C. 205.

SOURCE: The provisions of this Part 4 contained in Treasury Decision 6521, 25 F.R. 13835, Dec. 29, 1960, unless otherwise noted.

CROSS REFERENCES: Other regulations relating to this part are as follows:

27 CFR, Part 1-Basic Permit Requirements Under the Federal Alcohol Administration Act.

27 CFR, Part 5-Labeling and Advertising of Distilled Spirits.

27 CFR, Part 7-Labeling and Advertising of Malt Beverages.

27 CFR, Part 200-Rules of Practice in Permit Proceedings.

27 CFR, Part 240-Wine.

27 CFR, Part 250-Liquors and Articles from Puerto Rico and the Virgin Islands. 27 CFR, Part 251-Importation of Distilled Spirits, Wines and Beer.

27 CFR, Part 252-Exportation of Liquors. Subpart A-Scope

§ 4.1 General.

The regulations in this part relate to the labeling and advertising of wine. § 4.2 Territorial extent.

This part applies to the several States of the United States, the District of Columbia, and Puerto Rico.

Subpart B-Definitions

§ 4.10 Meaning of terms.

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

(a) Act. "Act" means the Federal Alcohol Administration Act.

(b) Assistant Regional Commissioner. "Assistant Regional Commissioner" shall mean the Assistant Regional Commissioner, Alcohol and Tobacco Tax, who is responsible to, and functions under the direction and supervision of the Regional Commissioner.

(c) Director. "Director" shall mean the Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Washington, D.C.

(d) Permittee. "Permittee” means any person holding a basic permit under the Federal Alcohol Administration Act. (e) Wine. "Wine" means: (1) Wine as defined in section 610 and section 617 of the Revenue Act of 1918 (26 U.S.C. 3036, 3044, 3045) and (2) 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. (f) Pure condensed must. "Pure condensed must" means the dehydrated juice or must of sound, ripe grapes, or other fruit or agricultural products, concentrated to not more than 80° (Balling), the composition thereof remaining unaltered except for removal of water; the term "restored pure condensed must" means pure condensed must to which has been added an amount of water not exceeding the amount removed in the dehydration process; and the term "sugar" means pure cane, beet, or dextrose sugar in dry form containing, respectively, not less than 95 percent of actual sugar calculated on a dry basis.

(g) Added brandy or alcohol. As used in the phrase "added brandy or alcohol" the term "brandy” means brandy or wine spirits for use in the fortification of wine as permitted by internal revenue law. The term "alcohol" means ethyl alcohol distilled at or above 190° proof.

(h) Vintage wine. "Vintage wine" means a wine made in accordance with the standards prescribed in Classes 1, 2, and 3 of § 4.21, deriving not less than 95 percent of its volume from grapes gathered in the same calendar year, grown in the same viticultural area, and fermented in the State in which this viticultural area is located.

(1) Container. "Container" means any bottle, barrel, cask or other closed receptacle irrespective of size or of the material from which made for use for the sale of wine at retail. The term "bottler" means any person who places wine in containers of a capacity of 1 gallon or less; and the term "packer" means any person who places wine in containers of a capacity in excess of 1 gallon.

(j) Gallon. Means a United States gallon of 231 cubic inches of alcoholic beverage at 60° F.

(k) Brand label. “Brand label" means the label carrying, in the usual distinctive design, the brand name of the wine.

(1) United States. "United States" means the several States and Territories and the District of Columbia; the term "State" includes a Territory and the District of Columbia; and the term "Territory" means Puerto Rico.

(m) Interstate commerce. "Interstate or foreign commerce" means commerce between any State and any place outside thereof, or commerce within any Territory or the District of Columbia, or between points within the same State but through any place outside thereof.

(n) Person. "Person" means any individual, partnership, joint-stock company, business trust, association, corporation, or other form of business enterprise, including a receiver, trustee, or liquidating agent, and including an officer or employee of any agency of a State or political subdivision thereof; and the term "trade buyer" means any person who is a wholesaler or retailer.

(0) Liter or litre. Means a metric unit of capacity equal to 1000 cubic centimeters at 4° C., and equivalent to 33.814 U.S. fluid ounces. For purposes of this part, a liter is subdivided into 1000 equal milliliters (ml).

(p) Use of other terms. Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the same meaning assigned to it by such act.

[T.D. ATF-12, 39 FR 45221, Dec. 31, 1974] Subpart C-Standards of Identity for Wine

§ 4.20 Application of standards.

The standards of identity for the several classes and types of wine set forth herein shall be applicable to all regulations and permits issued under the act. Whenever any term for which a standard of identity has been established herein is used in any such regulation or permit, such term shall have the meaning assigned to it by such standard of identity.