1.26 Incomplete or incorrectly executed applications. 1.27 Change in ownership, management, or control of the applicant. 1.28 Forms upon which to apply for basic permits. 1.29 Individual plant or premises. 1.30 Power of attorney; Form 1534. 1.31 Denial of permit applications. Subpart D-Authorization 1.85 Authority to issue, amend, deny, suspend, revoke, or annul basic permits. Subpart E-Amendment and Duration of Basic Permits 1.40 Change of name. 1.41 Change of address. 1.42 Change in ownership, management, or control of business. 1.43 Duration of permits. 1.44 Automatic termination of permits. Subpart F-Revocation, Suspension, or 1.50 Revocation or suspension. 1.51 Annulment. Disposition of stocks of alcoholic beverages upon revocation, annulment, or automatic termination of basic permit. Subpart G-Miscellaneous Recalling permits for correction. Oaths and afirmations. Procedure. 1.58 Filing of permits. 1.59 Public information as to applications acted upon. AUTHORITY: The provisions of this Part 1 issued under 49 Stat. 977, as amended; 27 U.S.C. 202 note. SOURCE: The provisions of this Part 1 contained in Treasury Decision 6521, 25 FR. 13831, Dec. 29, 1960, unless otherwise noted. Subpart A-Scope § 1.1 General. The regulations in this part relate to requirements governing the issuance, amendment, denial, revocation, suspension, automatic termination, and annulment of basic permits and the duration of permits, except that the provisions of 26 CFR Part 200, Rules of Practice in Permit Proceedings are hereby made applicable to administrative proceedings with respect to the application for, and to the suspension, revocation, or annulment of, basic permits under the Federal Alcohol Administration Act. § 1.2 Territorial extent. The provisions of this part are appllcable to the several States of the United States, the District of Columbia and Puerto Rico. § 1.3 Forms prescribed. The Director, Alcohol and Tobacco Tax Division is authorized to prescribe all forms required by this part. Information called for shall be furnished in accordance with the instructions on the form or issued in respect thereto. Subpart B-Definitions § 1.5 Meaning of terms. As used in this part, unless the context otherwise requires, terms shall have the meaning ascribed in this subpart. § 1.6 Act. "Act" shall mean the Federal Alcohol Administration Act. § 1.7 Applicant. "Applicant" shall mean any person who has filled with the Assistant Regional No person, except pursuant to a basic permit issued under the act, shall: (a) Engage in the business importing into the United States distilled spirits, wine, or malt beverages; or (b) while so engaged, sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits, wine, or malt beverages so imported. § 1.21 Domestic producers, rectifiers, blenders, and warehousemen. No person, except pursuant to a basic permit issued under the Act, shall: (a) Engage in the business of distilling distilled spirits, producing wine, rectifying or blending distilled spirits or wine, or bottling, or warehousing and bottling, distilled spirits; or (b) while so engaged, sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits or wine so distilled, produced, rectified, blended, or bottled, or warehoused and bottled. Assistant Regional Commissioner if the applicant proves to the satisfaction of the Assistant Regional Commissioner that: (a) Such person (or in case of a corporation, any of its officers, directors, or principal stockholders) has not, within 5 years prior to the date of application, been convicted of a felony under Federal or State law, and has not, within 3 years prior to date of application, been convicted of a misdemeanor under any Federal law relating to liquor, including the taxation thereof; and (b) Such person, by reason of his business experience, financial standing or trade connections, is likely to commence operations as a distiller, warehouseman and bottler, rectifier, wine producer, wine blender, importer, or wholesaler, as the case may be, within a reasonable period and to maintain such operations in conformity with Federal law; and (c) The operations proposed to be conducted by such person are not in violation of the law of the State in which they are to be conducted. APPLICATIONS FOR PERMITS § 1.25 General. Applications for basic permits to engage in any of the operations set forth in $1.20 to 1.22 shall be made on the appropriate form prescribed by the Director, Alcohol and Tobacco Tax Division, verified as required by § 1.56, and shall be accompanied by such affidavits, documents, and other supporting data, as the Director, Alcohol and Tobacco Tax Division or the Assistant Regional Commissioner shall require. All data written statements, affidavits, documents, or other evidence submitted in support of the application, or upon hearing thereon, shall be deemed to be a part of the application. All applications shall be filed by mailing or delivering the same to the office of the Assistant Regional Commissioner. § 1.27 Change in ownership, manage ment, or control of the applicant. In the event of any change in the ownership, management, or control of the applicant (in case of a corporation, any change in the officers, directors, or persons holding more than 10 percent of the corporate stock), after the date of filing of any application for a basic permit and prior to final action on such application, the applicant shall notify the Assistant Regional Commissioner immediately of such change. § 1.28 Forms upon which to apply for basic permits. The appropriate forms upon which to apply for basic permits may be secured from the assistant regional commissioner's office upon request. § 1.29 Individual plant or premises. An application for basic permit must be filled, and permit issued, to cover each individual plant or premises where any of the businesses specified in section 3 of the act is engaged in such application to be filled with and permit issued by the Assistant Regional Commissioner for the region wherein such plant or premises is located. § 1.30 Power of attorney; Form 1534. If the application and other documents in support of such application are signed by an attorney in fact of an individual, partnership, association, or corporation, or by one of the members of a copartnership or association, or, in the case of a corporation by an officer or other person not authorized by the corporation's bylaws or by its board of directors to sign such applications and supporting documents, the applications must be supported by a duly authenticated copy of the power of attorney conferring authority upon the person signing the documents to execute the same. Such powers of attorney will be executed on Form 1534, in triplicate, and submitted to the Assistant Regional Commissioner. § 1.31 Denial of permit applications. If, upon examination of any application for a basic permit, the Assistant Regional Commissioner has reason to belleve that the applicant is not entitled to such permit he shall institute proceedings for the denial of the application in accordance with the procedure set forth in 26 CFR Part 200, which part is made applicable to such proceedings. Subpart D-Authorization § 1.35 Authority to issue, amend, deny, suspend, revoke, or annul basic permits. The authority and power of issuing, amending, or denying basic permits, or amendments thereof, is conferred upon the Commissioner and (except as to agency initiated curtailment) upon the Assistant Regional Commissioner. The authority and power of suspending, revoking or annulling basic permits is conferred upon the Commissioner, and upon the hearing examiners referred to in 26 CFR Part 200. Any Assistant Commissioner of Internal Revenue, when designated to do so by the Commissioner, and the Director, upon consideration of appeals on petitions for review, may order the Assistant Regional Commissioner to issue, deny, suspend, revoke, and annul basic permits. Subpart E-Amendment and Duration of Basic Permits § 1.40 Change of name. In the event of any change in the name (trade or corporate name) of a permittee, or, in the event a permittee desires to engage in operations under an additional trade name, such permittee must fille application (Form 1643), with the Assistant Regional Commissioner, for an amended basic permit, which application must be approved, and amended permit issued, before operations may be commenced under the new name. § 1.41 Change of address. In the event of a change in address the permittee must file application (Form 1643), with the Assistant Regional Commissioner, for an amended basic permit. § 1.42 Change in ownership, management, or control of business. In the event of any change in the ownership, management, or control of any business operated pursuant to a basic permit (if the permittee is a corporation, if any change occurs in the officers, directors, or persons owning or controlling more than 10 percent of the voting stock of said corporation) the permittee shall immediately notify the Assistant Regional Commissioner of such change, giving the names and ad dresses of all new persons participating in the ownership, management, or control of such business, or in the case of a corporation, the names and addresses of such new officers, directors, or persons owning or controlling more than 10 percent of the voting stock. Notice to the Assistant Regional Commissioner of any such change shall be accompanied or supplemented by such data in reference to the personal or business history of such persons as the Assistant Regional Commissioner may require. § 1.43 Duration of permits. A basic permit shall continue in effect until suspended, revoked, annulled, voluntarily surrendered, or automatically terminated, as provided in the act and in this part. § 1.44 Automatic termination of permits. ог No basic permit shall be leased, sold otherwise voluntarily transferred, and, in the event of such lease, sale, or other voluntary transfer, the said basic permit shall automatically terminate thereupon. If any basic permit is transferred by operation of law or if actual or legal control of the permittee is acquired, directly or indirectly whether by stock ownership or in any other manner, by any person, then such permit shall be automatically terminated at the expiration of 30 days thereafter: Provided, That if within such 30-day period application for a new basic permit is made by the transferee or permittee, respectively, then the outstanding basic permit shall continue in effect until such time as the application is finally acted upon. Subpart F-Revocation, Suspension, or Annulment of Basic Permits § 1.50 Revocation or suspension. Whenever the Assistant Regional Commissioner has reason to believe that any permittee has willfully violated any of the conditions of his basic permit or has not engaged in the operations authorized by the permit for a period of more than two years, he shall institute proceedings for the revocation or suspension of such permit, in accordance with the procedure set forth in 26 CFR Part 200, which part is made applicable to such proceedings. § 1.51 Annulment. Whenever the Assistant Regional Commissioner has reason to believe that any basic permit was procured through fraud, or misrepresentation or concealment of material fact, he shall institute proceedings for the annulment of such permit in accordance with the procedure set forth in 26 CFR Part 200, which part is made applicable to such proceedings. § 1.52 Disposition of stocks of alco holic beverages upon revocation, annulment, or automatic termination of basic permit. In the event of the revocation or annulment of a basic permit, pursuant to 26 CFR Part 200, or in the event such permit is automatically terminated by operation of law (27 U.S.C. 204(g)) and § 144, the Assistant Regional Commissioner may authorize the orderly disposition of stocks of distilled spirits, wines or malt beverages then held by the permittee or former permittee upon such conditions as may be considered proper. Subpart G-Miscellaneous § 1.55 Recalling permits for correction. Oaths and affirmations. Any document required by regulations or instructions of the Commissioner to be verified, shall be so verified upon oath or affirmation taken before a person authorized by the laws of the United States or by State or local law to administer oaths or affirmations in the State, Territory, or District wherein such document is to be executed. § 1.57 Procedure. the issuance of subpoenas and the taking of depositions under the Federal Alcohol Administration Act. § 1.58 Filing of permits. Every person receiving a basic permit under the provisions of this part must file the same, at the place of business covered by the basic permit, so that it may be examined by Government officers. § 1.59 Public information as to applications acted upon. The Assistant Regional Commissioner shall cause to be maintained currently in his office for public inspection, until the expiration of one year following final action on the application, the following information with respect to each application for basic permit filed: (a) The name, including trade name or names, if any, and the address of the applicant; the kind of permit applied for and the location of the business; whether the applicant is an individual, a partnership or a corporation; if a partnership, the name and address of each partner; if a corporation, the name and address of each of the principal officers and of each stockholder owning 10 percent or more of the corporate stock. (b) The time and place set for any hearing on the application. (c) The final action taken on the application. In the event a hearing is held upon an application for a basic permit, the Assistant Regional Commissioner shall make available for inspection at his office, upon request therefor: the transcript of the hearing, a copy of the examiner's recommended decision, a copy of the Assistant Regional Commissioner's decision and, in the event of an appeal to the Director, Alcohol and Tobacco Tax Division, the decision on appeal with the reasons given in support thereof. The procedures prescribed by the rules of practice in Permit Proceedings (26 CFR Part 200) are applicable to administrative proceedings for the issuance, amendment, denial, revocation, suspen- 2.5 sion, and annulment of basic permits, 2.8 Nonindustrial use of distilled spirits and wine. Subpart B-Definitions Distilled spirits. Wine. |