in skeleton form. Items which are correctly set forth in prior applications and remain unchanged may be incorporated in the amended application by reference to the respective application previously filed in which the item is fully and correctly set forth. Such incorporation by reference shall be made by entering for such item in the space provided therefor the statement "No change since filing Form 27-G, Ser. No. (insert serial number)."

(72 Stat. 1392 as amended; 26 U.S.C. 5511) § 18.72 Change in name of proprietor.

Where there is to be a change in the individual, firm, or corporate name, the proprietor shall file an amended application, Form 27-G; a new bond or consent of surety will not be required. Operations shall not be conducted under the new name prior to approval of the amended application.

§ 18.73

Change in proprietorship.

(a) General. If there is a change in the proprietorship of a concentrate plant, the outgoing proprietor shall comply with the requirements of § 18.80, and the successor shall, before commencing operations, file the required bond, and file application on Form 27-G and receive approval thereof in the same manner as a person qualifying as the proprietor of a new concentrate plant, except that he may adopt the plats and plans of the predecessor as provided in § 18.74. Materials, concentrates, and flashed mash or juice may be transferred from an outgoing proprietor to a

successor.

(b) Fiduciary. If the successor to the proprietorship of a concentrate plant is an administrator, executor, receiver, trustee, assignee, or other fiduciary, he shall comply with the provisions of paragraph (a) of this section except that he may, in lieu of filing a new bond, furnish consent of surety extending the terms of his predecessor's bond, and he may also incorporate by reference in his application on Form 27-G any pertinent information contained in his predecessors' approved application. The fiduciary shall furnish a certified copy of the order of the court or other pertinent document showing his qualification as such fiduciary. If the fiduciary was ap

pointed by a court, the effective dates of the qualifying documents filed by the fiduciary shall be the effective date of the court order, or the date specified therein for him to assume control. If the fiduciary was not appointed by a court, the date of his assuming control shall coincide with the effective date of the qualifying documents filed by him.

(c) Corporation. The sale or transfer of the capital stock of a corporation operating a concentrate plant does not constitute a change in the proprietorship of such plant. However, where the sale or transfer of capital stock results in a change in the control or management of the business, or where there is a change in the officers or directors, the proprietor, within 10 days, shall give written notice thereof, in duplicate, to the regional director. A change in stockholders of corporations not constituting a change in control need not be so reported.

§ 18.74 Adoption of plat and plans.

The adoption by a successor of the plat and plans of a predecessor shall be in the form of a certificate to be made part of the application, Form 27-G, in which shall be set forth the identity of the concentrate plant and of the predecessor, and a description (by sheet number and title) of each plat and plan sheet adopted, and a certification that the adopted plat and plans accurately depict the premises.

§ 18.76 Change in location.

If there is a change in the location of a concentrate plant, the proprietor shall file an application to amend his Form 27-G, (including plat and plans), and either a new bond or a consent of surety on Form 1533. Operation of the concentrate plant may not be commenced at the new location prior to approval of the amended application, the new plat and plans, and the new bond or the consent of surety.

§ 18.77 Changes in equipment.

If changes are to be made in the distilling apparatus and equipment, which changes would affect the accuracy of the application (including plat and plans), the proprietor shall, before making such changes secure approval thereof by the regional director pursuant to application, in duplicate, setting forth specifically

and in detail the proposed changes: Provided, That emergency repairs may be made without prior approval of the regional director. If such emergency repairs are made, the proprietor shall file immediately a report thereof, in duplicate, with the regional director. Changes made under this section shall be reflected in the next amendment of the application, Form 27-G, (including plat and plans) unless the regional director requires the immediate filing of an application.

§ 18.78 Change in process.

Before a proprietor makes any change in his process of manufacture which would affect the accuracy of the statement of process required by §§ 18.52 and 18.57, he shall file an amended application, Form 27-G, to include the amended or new statement of process and the new or amended process may not be used prior to approval of the amended application. § 18.79 Suspension and resumption of operations.

Any proprietor desiring to suspend operations for a period of 30 days or more shall give written notice to the regional director of the date operations are to be suspended and the approximate date operations are to be resumed. Where the proprietor wishes to resume operations at an earlier date than stated, he shall give written notice to the regional director to that effect at least 10 days before operations are to be resumed.

§ 18.80 Notice of permanent discontin

no responsibilities in connection with the operations conducted under this part, the regional director may waive the requirement for submitting applications for amended registration to cover changes in such corporate offices.

§ 18.82

Change in stockholders.

Changes in the list of stockholders furnished under the provisions of § 18.54 (c) may, in lieu of submission within 10 days of the change under the provisions of § 18.71, be submitted annually by the proprietor on May 1, except where the sale or transfer of capital stock results in a change of control or management of the business.

Subpart F-Bonds and Consents of Surety § 18.91 Bond, Form 1694.

(a) General. Every person intending to commence the business of manufacturing concentrates shall file bond, Form 1694, with the regional director at the time of filing his original application, Form 27-G, and at such other times as are required by this subpart. Such bond shall be conditioned that each such person shall fully and faithfully comply with all of the requirements of the law and regulations relating to the manufacture, removal, sale, transportation, or use of any concentrate (or any fruit mash or juice from which such concentrate is produced) and shall pay or cause to be paid all taxes, together with penalties and interest, on all such concentrates or any other alcoholic products manufactured, removed, sold, transported, or used by him contrary to law or regulations. No person shall commence or continue the business of manufacturing concentrates until such bond has been approved by the regional director.

(b) Penal sum of bond. The penal sum of bond, Form 1694, shall be $5,000 except as follows:

(1) Where high-proof concentrates are to be produced in addition to other concentrates, the bond, Form 1694, shall be in a sufficient penal sum to equal the tax liability on the maximum quantity of high-proof concentrate which will be on hand or unaccounted for at any one time, at the rate prescribed by law as the tax on distilled spirits, plus $5,000: Provided, That the maximum penal sum shall not exceed $105,000; or

(2) Where high-proof concentrates only are to be produced, the bond shall be in a sufficient penal sum to equal the tax liability on the maximum quantity of high-proof concentrate which will be on hand or unaccounted for at any one time, at the rate prescribed by law as the tax on distilled spirits: Provided, That the maximum penal sum shall not exceed $100,000; or

(3) Where, in any other case, it is the opinion of the regional director that a bond in a larger penal sum or an additional bond should be required for the protection of the revenue, he may require additional bond coverage not to exceed $20,000.

(72 Stat. 1392, as amended; 26 U.S.C. 5511) § 18.92 Corporate surety.

Surety bonds required by this part may be given only with corporate sureties holding certificates of authority from, and subject to the limitations prescribed by, the Secretary of the Treasury as set forth in the current revision of Treasury Department Circular 570. (61 Stat. 648; 6 U.S.C. 6, 7)

§ 18.93 Filing of powers of attorney.

Each bond, and each consent to changes in the terms of a bond, shall be accompanied by a power of attorney authorizing the agent or officer who executed the bond or consent to so act on behalf of the surety. The regional director who is authorized to approve the bond, may, when he deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or consent.

(61 Stat. 648; 6 U.S.C. 6, 7)

§ 18.94 Execution of powers of attorney. The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed original, it shall be accompanied by certification of its validity. (61 Stat. 648; 6 U.S.C. 6, 7)

§ 18.95 Deposit of securities in lieu of corporate surety.

In lieu of corporate surety, the principal may pledge and deposit, as surety

for his bond, securities which are transferable and are guaranteed as to both interest and principal by the United States, in accordance with the provisions of 31 CFR Part 225.

(61 Stat. 650; 6 U.S.C. 15)

§ 18.96 Consents of surety.

Consents of surety to changes in the terms of bonds shall be executed on Form 1533 by the principal and by the surety with the same formality and proof of authority as is required for the execution of bonds.

§ 18.97

Strengthening bonds.

In any case where the regional director determines under the provisions of § 18.91 that an additional bond should be required, the principal shall either give a strengthening bond with the same surety to attain the penal sum set by the regional director, or give a new bond to cover the entire liability. Strengthening bonds will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of any bond to less than its full penal sum. Strengthening bonds shall show the current date of execution and the effective date.

A new bond shall be required in the case of the insolvency or removal or any surety, and may, at the discretion of the regional director, be required in any other contingency affecting the validity or impairing the efficiency of bond given on Form 1694. Where, under the provisions of 18.100, the surety on a bond, on Form 1694, has filed application to be relieved of liability under such bond and the principal desires to continue the business of a concentrate manufacturer, he shall file a valid superseding bond to be effective on or before the date specified in the surety's notice. Where a new bond is submitted to supersede a bond or bonds in effect, the new bond shall show the current date of execution and the effective date. If a new bond is not filed when required the principal shall discontinue forthwith operations at his concentrate plant.

§ 18.99

TERMINATION OF BONDS

Termination of Bond.

A bond, Form 1694, may be terminated by the regional director as to future liability pursuant to (a) application by the surety as provided in § 18.100, (b) approval of a superseding bond, or (c) discontinuance of business by the principal. § 18.100 Application of surety for relief from bond.

A surety on any bond required by this part may at any time, in writing, notify the principal and the regional director in whose office the bond is on file that he desires, after a date named, to be relieved of liability under such bond. Such date shall not be less than 60 days after the date the notice is received by the regional director. The notice shall be executed in duplicate by the surety, who shall deliver one copy to the principal and one copy to the regional director. The surety shall also file with the regional director an acknowledgment or other proof of service of such notice on the principal. Unless the notice is withdrawn in writing before such date, the rights of the principal as supported by such bond shall be terminated on the date named in the notice, and the surety shall be relieved from liability to the extent set forth in § 18.101.

§ 18.101 Relief of surety from bond.

Where the surety has filed application for relief from liability, as provided in § 18.100, and a new or superseding bond has been filed, the surety shall be relieved of liability arising from acts occurring wholly on or subsequent to the effective date of the new or superseding bond. If the concentrate manufacturer files a valid superseding bond on Form 1694 prior to the date named in the surety's notice, the surety shall also be relieved from liability for concentrate and fruit mash or juice on hand at the concentrate plant on such date. If the principal fails to file a superseding bond, the surety, notwithstanding his release from liability as specified above, shall continue to remain liable under the bond for all concentrates and fruit mash or juice on hand at the concentrate plant on such date, until such concentrate and mash or juice have been lawfully disposed of or a

new bond has been filed by the principal covering the same.

§ 18.102 Release of pledged securities.

Securities of the United States pledged and deposited as provided in § 18.95 shall be released only in accordance with the provisions of 31 CFR Part 225. Such securities will not be released by the regional director until liability under the bond for which they were pledged has been terminated. When the regional director is satisfied that they may be released, he shall fix the date or dates on which a part or all of such securities may be released. At any time prior to the release of such securities, the regional director may extend the date of release for such additional length of time as he deems necessary.

(61 Stat. 650; 6 U.S.C. 15)

Subpart G-Construction and Equipment § 18.111 Security.

The concentrate plant and equipment shall be SO constructed, arranged, equipped, and protected as to afford adequate protection to the revenue and facilitate inspection by ATF officers. In a plant where high-proof concentrate is produced or stored, every step in the process where such concentrate might be potable must be secured in a manner satisfactory to the regional director as provided in Subpart E of this part.

§ 18.112 Means of ingress and egress.

The proprietor shall make provisions to assure that ATF officers have ready ingress to, and egress from, the concentrate plant at any time, and furnish, on request, evidence satisfactory to the regional director that such ingress and egress are assured.

(72 Stat. 1357; 26 U.S.C. 5203)

§ 18.113 Identification of apparatus and

equipment.

Each tank or receptacle for concentrate, processing material, or flashed mash or juice shall be marked to show its serial number, capacity, and use. Each still, separator, evaporator, and condenser shall be numbered and marked to show its use. All other major equipment used for manufacturing concentrateshall be identified as to use unless th intended use thereof is readily apparent

A proprietor may produce processing material or receive processing material produced elsewhere. Fermented processing material shall not be used in the manufacture of concentrates. Processing material may be used if it contains no more alcohol than is reasonably unavoidable, and shall be used when produced, or as soon thereafter as practicable. If processing material is removed from the concentrate plant for any purpose whatsoever, the proprietor shall enter in his record required by § 18.143 the kind and quantity so removed, the name and address of the consignee, and the reason for the removal.

§ 18.122 Quantities to be determined.

The proprietor shall determine the number of gallons of processing material fed to the evaporator and the quantity and alcohol content of the concentrate produced therefrom. Such determinations shall be recorded as prescribed in § 18.143.

§ 18.123 Use of concentrates on premises.

Concentrates may be used on the concentrate plant premises in the manufacture of any product made in the conduct of another business authorized to be conducted on concentrate plant premises under the provisions of § 18.22, if such product contains less than one-half of one percent of alcohol by volume.

§ 18.124 Production of high proof con

centrate.

(a) General. Concentrates having an alcohol content of more than 24 percent by volume, may not be produced (except to furnish the sample required by paragraph (c) of this section) in a volatile fruit-flavor concentrate plant unless such product has been found by the regional director to be unfit for use as a beverage because of its natural constituents as provided in paragraph (c) of this section.

(b) Application. Application on Form 27-G Supplemental must be filed and approved by the regional director before high-proof concentrate can be produced. A separate application shall be filed for each kind of such concentrate to be produced.

(c) Sample. An 8-ounce sample of high-proof concentrate, accompanied by a copy of Form 27-G Supplemental, must be submitted to the Director for laboratory analysis. If it is found to be naturally (without addition of other substances) unfit for use as a beverage, the regional director may approve the application on Form 27-G Supplemental. Such sample must be truly representative of the concentrate to be produced and must be labeled to show:

(1) Name, plant number and address of the producer,

(2) In bold type, HIGH-PROOF CONCENTRATE-NOT FOR BEVERAGE

Each container of concentrate shall have affixed thereto, before removal, a label identifying the product and showing (a) the name of the proprietor; (b) the registry number of the plant; (c) the address of the plant, as shown on the application, Form 27-G; (d) the number of wine gallons; and (e) the percent of alcohol by volume.

§ 18.127 Transfer of concentrate.

(a) General. Concentrate fit for use as a beverage or which contains more than 15 percent alcohol by volume may not be removed from its place of manufacture except as provided in paragraphs (b), (c) and (d) of this section. Concentrate containing not more than 15 percent alcohol by volume (including high-proof concentrate and concentrate produced at not more than 24 percent alcohol by volume, reduced as provided in § 18.125 to not more than 15 percent alcohol by volume) and which is unfit for use as a beverage may be removed from its place of manufacture as provided in paragraph (e) of this section.