material information required, or has made any materially false statement, in the application for his permit, or has failed to maintain his premises in such manner as to protect the revenue, the regional regulatory administrator shall issue a citation for the revocation or suspension of such permit. (21 FR 1441, Mar. 6, 1956. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55846, Sept. 28, 1979)

he may issue a citation for the revoca tion or suspension of such permit. (72 Stat. 1349, 1370; 26 U.S.C. 5171, 5271) (T.D. 6389, 24 FR 4790, June 12, 1959. Re designated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-48, 44 FR 55846 Sept. 28, 1979)

8 200.49 Applications for basic permits.

If, upon examination of any applica tion (including a renewal application for a basic permit, the regional regula tory administrator has reason to be lieve that the applicant is not entitled to such permit he shall issue a citation for the contemplated disapproval of the application. [T.D. 6954, 33 FR 6814, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975)

8 200.48 Operating, industrial use, and

withdrawal permits. Whenever the regional regulatory administrator has reason to believe that any person who has an operating, industrial use, or withdrawal permit

(a) Has not in good faith complied with the provisions of 26 U.S.C. Chapter 51 or enabling regulations; or

(b) Has violated the conditions of such permit; or

(c) Has made any false statement as to any material fact in his application therefor; or

(d) Has failed to disclose any material information required to be furnished; or

(e) Has violated or conspired to violate any law of the United States relating to intoxicating liquor or has been convicted of any offense under 26 U.S.C. punishable as a felony or of any conspiracy to commit such an offense;

or

8 200.49a Applications for operating, in

dustrial use, and withdrawal permits. If, on examination of an application (including a renewal application) for an operating, industrial use, or withdrawal permit, the regional regulatory administrator has reason to believe

(a) In case of an application to withdraw and use distilled spirits free of tax, the applicant is not authorized by law or regulations issued pursuant thereto to withdraw or use such distilled spirits; or

(b) The applicant (including in the case of a corporation, any officer, director, or principal stockholder and, in the case of a partnership, a partner) is, by reason of the applicant's business experience, financial standing, or trade connections, not likely to maintain operations in compliance with 26 U.S.C. Chapter 51 or implementing regulations; or

(c) The applicant has failed to disclose any material information required, or has made any false statement as to any material fact, in connection with his application; or

(d) The premises on which the applicant proposes to conduct the business are not adequate to protect the revenue; he may issue a citation for the contemplated disapproval of the application.

(f) Is (in the case of any person who has a permit to procure or use distilled spirits free of tax for nonbeverage purposes and not for resale or use in the manufacture of any product for sale, or to procure, deal in, or use specially denatured distilled spirits) by reason of his operations, no longer warranted in procuring or using the distilled spirits or specially denatured distilled spirits authorized by his permit; or

(g) Has, in the case of any person who has a permit to procure, deal in, or use specially denatured distilled spirits, manufactured articles which do not correspond to the descriptions and limitation prescribed by law and regulations; or

(h) Has not engaged in any of the operations authorized by the permit for a period of more than 2 years;

(72 Stat. 1349, 1370; 26 U.S.C. 5171, 5271)

and will serve signed duplicate original of such order on the applicant.

are of the

the regional regulatory administralso specify tor's office. he hearing

(21 FR 1441, Mar. 6, 1956, as amended by e and place

T.D. 6389, 24 FR 4791, June 12, 1959. Redesrder which ignated at 40 FR 16835, Apr. 15, 1975) nal regula 30 days of

8 200.58 Designated place of hearing. Citation. Ci The designated place of hearing of an appli

shall be such as meets the convenience wal permit and necessity of the parties. cons of law

(T.D. 6389, 24 FR 4791, June 12, 1959. Reon for au

designated at 40 FR 16835, Apr. 15, 1975) 2) in sepa ers of fact

REQUEST FOR HEARING ne contem pplication

$ 200.59 Application cases. will be dis- If the applicant for an initial or re

newal permit desires a hearing, he shall file a request therefor, in writing,

with the regional regulatory adminisamended by

trator within fifteen days after receipt 1959. Redes

of notice of the contemplated disap1975)

proval, in whole or in part, of his application.

8 200.63 Renewal application.

In the case of a renewal application, if the applicant does not request a hearing within the time specified in $ 200.59, the regional regulatory administrator shall immediately refer the matter to the administrative law judge who shall set it down for hearing as if such hearing had been requested.

ANSWERS

ays a hear

on the fol

- To Show Il citations ion, or an be, of per Fenue Code inistration

$ 200.64 When required.

After service of a citation upon the respondent, ordering him to appear and show cause why his permit shall not be suspended, revoked or annulled, if he desires to contest the proceedings he shall, within 15 days from service of the order to show cause, file with the administrative law judge and serve on the regional regulatory administrator an answer, in writing, to the allegations set forth therein. Such answer shall contain a concise statement of the facts that constitute his grounds of defense. Evidence to be introduced upon such hearing may be limited to the issues contained in the order to show cause and answers filed thereto; Provided, however, That where justice demands, the administrative law judge shall waive any of the requirements of this section. Answers need not be filed in application proceedings.

8 200.60 Suspension, revocation or annul

ment cases. No request for a hearing is necessary on citations for suspension, revocation or annulment, since the order to show cause sets forth on its face the date the respondent is to appear to show cause why his permit should not be suspended, revoked or annulled. 8 200.61 Notice of hearing.

In case a request for a hearing is filed by the applicant within the required time, the regional regulatory administrator shall refer the matter to the administrative law judge and the administrative law judge shall set a time and place for a hearing and shall serve notice thereof upon the parties at least ten days in advance of the hearing date.

of Contem cation For ed to issue -pproval of nether ini

amended by 1959. Redes 1975)

$ 200.56, see cted in the me.

NON-REQUEST FOR HEARING

cion.

8 200.65 Answer admitting facts.

If the respondent desires to waive the hearing on the allegations of fact set forth in the order to show cause, and does not contest the facts, the answer may consist of a statement that the respondent admits all material allegations of fact charged in the citation to be true. The administrative law judge shall thereupon base his findings on the citation and such answer: Provided, however, That nothing herein contained shall affect the respondent's right to submit proposed findings and conclusions of fact or law and his right of appeal.

8 200.62 Initial application.

In the case of an initial application, if the applicant does not request a hearing within the time specified in $ 200.59, or within such further time as the regional regulatory administrator may in his discretion allow, the regional regulatory administrator will by order, stating the findings upon which it is based, disapprove the application,

shall be signed du ed on the be sent to

designat he original ificate of ne official nd the reained for

$ 200.69 Suspension, revocation or annul.

ment. If on the date set for the hearing respondent does not appear and no evidence has been offered, the attorney for the Government will proceed ex parte and offer for the record sufficient evidence to make a prima facie case. At such hearing, documents, statements and affidavits may be submitted in lieu of testimony of witnesses.

WAIVER OF HEARING

$ 200.66 Prehearing conferences.

In any proceeding the administrative law judge may, upon his own motion or upon the motion of one of the parties or their qualified representatives, in his discretion direct the parties or their qualified representatives to appear at a specified time and place for a conference to consider:

(a) The simplifications of the issues;

(b) The necessity of amendments to the pleadings;

(c) The possibility of obtaining stipulations, admissions of facts and of documents;

(d) The limitation of the number of expert witnesses; and

(e) Such other matters as may aid in the disposition of the proceeding. As soon as practicable after such conference, the administrative law judge shall issue an order which recites the action taken thereat, the amendments allowed to the pleadings and the agreements made by the parties or their qualified representatives as to any of the matters considered, and which limits the issues for hearing to those not disposed of by admission or agreement; and such order shall control the subsequent course of the proceedings, unless modified for good cause by a subsequent order.

$ 200.70 Application proceedings.

At any time prior to final action thereon the applicant may, by filing written notice with the regional regulatory administrator, withdraw his application. If such a notice is filed after referral to the administrative law judge of a proceeding on an application for an initial or renewal permit and prior to issuance of his recommended decision or decision thereon, the regional regulatory administrator shall move the administrative law judge to dismiss the proceedings as moot. If such a notice is filed while the proceeding is before the regional regulatory administrator and prior to final action thereon, that is, either (a) after issuance of a notice of contemplated disapproval and before referral of the proceeding to the administrative law judge or (b) after issuance by the administrative law judge of his recommended decision and prior to the regional regulatory administrator's order disapproving the application, the regional regulatory administrator shall, by order, dismiss the proceeding.

FAILURE TO APPEAR

8 200.67 Initial applications.

Where the applicant on an initial application for a permit has requested a hearing and does not appear at the appointed time and place, and evidence has not been offered to refute or explain the grounds upon which disapproval of the application is contemplated, this shall be construed as a waiver of the hearing, a default will be entered and the administrative law judge shall recommend disapproval of said application.

8 200.68 Renewal applications.

Where the applicant on an application for a renewal permit has requested a hearing, or hearing has been set as provided in 8 200.63, and no evidence is offered as stated, the attorney for the Government will proceed ex parte as set forth in $ 200.69.

8 200.71 Suspension, revocation or annul

ment proceedings. After the service of a citation for the suspension, revocation or annulment of a permit, the permittee may, if he so desires, waive the taking of evidence, but such waiver shall be accepted only if he stipulates that the administrative law judge may enter an appropriate decision sustaining the charges and suspending, revoking or annulling the permit.

8 200.72 Before citation.

If a respondent surrenders his permit before citation, the regional regulatory administrator may accept the surrender. But if the evidence, in the opinion of the regional regulatory administrator, warrants citation for suspension, revocation or annulment, he shall refuse to accept such surrender and shall issue the citation notifying the permittee at the same time that he may file a formal waiver as provided in $ 200.71. Should such waiver not be filed after notice, the administrative law judge will proceed with the hearing on the citation.

8 200.75 Prior to hearing.

All motions which should be mad prior to the hearing, such as motio) directed to the sufficiency of th pleadings or of preliminary orders shall be filed in writing with the re gional regulatory administrator issu ing the citation or the administrativ law judge if the matter has been re ferred to him, and shall briefly stat the order or relief applied for and the grounds for such motion, and shall be filed within 15 days after service o the citation.

8 200.76 At hearing.

Motions at the hearing may be made in writing to the administrative law judge or stated orally on the record.

HEARING

$ 200.73 After citation.

If а respondent surrenders his permit after citation and prior to the decision of the administrative law judge, the regional regulatory administrator may accept the surrender of the permit and move the administrative law judge to dismiss the proceeding as moot. If, however, in the opinion of the regional regulatory administrator the evidence is such as to warrant suspension, revocation or annulment, as the case may be, he shall refuse to accept the surrender of the permit and shall notify the respondent that he may file a formal waiver as provided in $ 200.71. Should such formal waiver not be filed after notice, the administrative law judge will proceed with the hearing on the citation.

$ 200.77 General.

Unless the hearing is waived by the applicant or permittee, or postponed or transferred to another place, by a written agreement signed by the appli cant or permittee, or his attorney, and the attorney for the Government and approved and filed with the administrative law judge, or unless the hear ing is postponed, or transferred (sub ject to statutory limitations) by order of the administrative law judge foi good cause shown by either party, i shall be held at the time and place stated in the citation, by the adminis trative law judge named in the cita tion, or in the notice of hearing as the case may be, or any other duly desig. nated and appointed administrative law judge assigned to hold such hearing.

MOTIONS

$ 200.74 General.

All motions shall be made and ad. dressed to the officer before whom the proceeding is pending, and copies of all motion papers shall be served upon the other party or parties. Such officer may dispose of any motion without oral argument, but he may, if he so desires, set it down for hearing and request argument. He may dispose of such motion prior to the hearing on the merits or he may postpone the disposition until the hearing on the merits. No appeal may be taken from

$ 200.78 Initial applications.

The administrative law judge who presides at the hearing on initial appli cations shall recommend a decision to the regional regulatory administrator who shall make the initial decision as provided in $ 200.107. The applicant may be directed by the regional regu