ing the collection of internal revenue taxes on alcoholic products coming into the United States from Puerto Rico, the Virgin Islands, and the Philippine Islands. (53 Stat. 403, 404, 405, 495; 26 U.S.C. 3340, 3350, 3360, 4041)

REGULATIONS SUPERSEDED

§ 180.2 Effective date. The regulations in this part shall, on and after the ninetieth day following the date of approval as to Puerto Rico and the Philippine Islands and the thirtieth day as to the Virgin Islands, supersede all prior regulations relating to alcoholic products coming into the United States from Puerto Rico, the Virgin Islands, and the Philippine Islands to the extent that such prior regulations are inconsistent herewith. All prior regulations which are inconsistent herewith shall remain in force and effect for the assessment and collection of all such taxes and penalties, for the imposition of all penalties, civil and criminal, and for the enforcement of all forfeitures which have accrued thereunder. (53 Stat. 403, 404, 405, 495; 26 U.S.C. 3340, 3350, 3360, 4041)

DEFINITIONS

§ 180.3 Definitions. As used in the regulations in this part, the following words and phrases shall mean:

(a) "Article" shall mean any preparation unfit for beverage use, made with or containing distilled spirits, fermented liquors and alcohol not denatured in a denaturing plant established under Part 182, this chapter.

(b) "Collector," unless otherwise indicated, shall mean the collector of internal revenue of a collection district of the Bureau of Internal Revenue.

(c) "Commissioner" shall mean the Commissioner of Internal Revenue.

(d) "Denatured alcohol" shall mean alcohol denatured in accordance with approved formulae in denaturing plants established under the provisions of Regulations 3 (26 CFR Part 182) and shall include completely and specially denatured alcohol.

(e) "District supervisor" shall mean the person having charge of a supervisory district of the Alcohol Tax Unit of the Bureau of Internal Revenue.

(f) "I. R. C." shall mean the Internal Revenue Code.

(g) "Insular internal revenue agent" shall mean any duly authorized internal revenue agent of the Department of Finance of Puerto Rico.

(h) "Liquors" shall mean ethyl alcohol, distilled spirits, liqueurs, cordials and similar compounds, wines, and fermented malt liquor or any alcoholic preparation fit for beverage use.

(i) "Permit” shall mean a formal written authorization of the treasurer of Puerto Rico.

(j) “Person,” “importer," "shipper,” or "consignee" shall include natural persons, associations, copartnerships, and corporations.

(k) "Treasurer” shall mean the treasurer of Puerto Rico.

(1) "United States" shall mean the States and the Territories of Alaska, Hawaii, and the District of Columbia.

(m) Words in the plural form shall include the singular, and vice versa, and words in the masculine gender shall include females, associations, copartnerships, and corporations.

(n) The term "including" shall not be deemed to exclude things other than those enumerated which are in the same general class. (53 Stat. 403, 404, 405, 495; 26 U.S.C. 3340, 3350, 3360, 4041)

Subpart A-Products Coming Into the

United States From Puerto Rico AUTHORITY: §§ 180.4 to 180.93, inclusive, issued under 53 Stat. 405; 26 U.S.C. 3360. Statutes interpreted or applied and statutes giving special authority are listed in parentheses at the end of specific sections.

GENERAL

§ 180.4 Taxable status. Liquors coming into the United States from Puerto Rico are subject to a tax equal to the internal revenue tax imposed upon the production in the United States of like liquors. Articles coming into the United States from Puerto Rico, except as provided in § 180.5, are subject to a tax on the liquors contained therein at the rates imposed in the United States on like liquors of domestic production. (53 Stat. 298, 347, 365; 26 U.S.C. 2800 (a)

(1), 2800 (a) (4) (A), 2800 (a) (5), 3030, 3150 (a))

§ 180.5 Products exempt from tax. Alcohol denatured in accordance with approved formulae at denaturing plants established under the provisions of Part 182 of this chapter and preparations made therewith in accordance with approved formulae, Form 1479-A, may be brought into the United States from Puerto Rico without incurring liability to internal revenue taxes as provided in Part 182. Alcohol which has not been so denatured and articles made therewith are subject to tax as provided in § 180.4. (53 Stat. 364; 26 U.S.C. 3123)

§ 180.6 Deputy collector at San Juan. The deputy collector of Internal Revenue assigned to duty in San Juan, P. R., is authorized to sell internal revenue stamps to qualified purchasers and to collect internal revenue taxes on liquors and articles subject to tax, which are to be shipped to the United States. Whenever the internal revenue tax is paid in Puerto Rico, the tax shall be paid to the deputy collector at San Juan, as hereinafter provided.

§ 180.7 Containers of distilled spirits. Containers of distilled spirits brought into the United States from Puerto Rico, having a capacity of one-half pint and not more than 1 gallon, shall conform to the requirements of Part 175 of this chapter. Bulk containers are those having a capacity in excess of 1 liquid gallon. (I.R.C. 2871, 3170, 53 Stat. 331; 26 U.S.C. 2871, 3170)

§ 180.8 Labels. All labels affixed to bottles of liquors coming into the United States shall conform to the requirements of the Federal Alcohol Administration Act and regulations issued thereunder. (27 CFR, Parts 4, 5, and 7.)

§ 180.9 Marking packages and cases. Each case, barrel, cask, or similar container filled for shipment to the United States shall be serially numbered by the distiller, rectifier, or bottler. In addition to the serial number there shall be plainly printed, stamped, or stenciled on the head of each barrel or similar container or on one side of each case with durable coloring material, in letters and figures not less than one-half inch in height, the name of the distiller, rectifier,

or bottler, the brand name and kind of liquor, the wine and proof gallon contents and the serial number of the approved formula under which made.

§ 180.10 Destruction of marks and brands. The marks, brands, and serial numbers required by the regulations in this part to be placed on barrels, casks, or similar containers, or cases, shall not be removed, or obscured or obliterated, before the contents thereof have been removed; but when barrels, casks, or similar containers (except for fermented malt liquors) are emptied, all such marks, brands, and serial numbers shall be effaced and obliterated by the person removing the contents.

§ 180.11 Destruction of stamps. All stamps must remain on packages and cases until the contents are emptied. When a package or case of distilled spirits is emptied, all internal revenue stamps thereon must be completely effaced and obliterated. Any person who empties any receptacle of wine shall destroy the wine stamps thereon by scraping or obliterating immediately the receptacle is emptied. Fermented malt liquor stamps must be destroyed by driving through the stamp, the faucet through which the liquor is to be withdrawn, or an air-faucet of equal size, at the time the hogshead, barrel, or keg is tapped. The stamp thus destroyed must remain on the hogshead, barrel or keg until it is emptied. (53 Stat. 330; 26 U.S.C. 2866)

§ 180.12 Samples. The Commissioner may require samples of liquors and articles to be submitted whenever desired for laboratory analysis in order to determine the rates of tax applicable thereto.

FORMULAE AND PROCESSES

180.13 Form 27-B Supplemental. Every person who ships liquors or articles to the United States, except (a) alcohol denatured according to approved formulae at denaturing plants under the provisions of Part 182 of this chapter and (b) articles made with such denatured alcohol in accordance with approved formulae, shall submit to the Commissioner, in advance of shipment, formulae and processes on Form 27-B Supplemental covering the manufacture of such liquors or articles. A separate

Form 27-B Supplemental will be filed for each formula and process. Each formula shall be given a serial number, beginning with number 1 for the first, and continuing in series thereafter: Provided, That the series in current use by persons who have filed formulae heretofore shall be continued. Form 27-B Supplemental must also show whether the internal revenue tax thereon will be paid in Puerto Rico, or paid at the port of arrival in the United States. All of the information required by the regulations in this part and called for by the form shall be furnished. Formulae for products manufactured with specially or completely denatured alcohol shall be submitted as provided in Part 182.

§ 180.14 Description of formula—(a) Liquors. Formulae for liquors (except fermented malt liquor) must show on Form 27-B Supplemental the kind and brand name of the product, the proof thereof, and all ingredients composing the product. If wine only or wine and distilled spirits are used in any product, the quantity or percentage by volume of each and the per centum of alcohol by volume of the wine must be shown. Where coloring, flavoring, sweetening, or blending materials are used, the percentage thereof by volume shall be shown. If any of the liquors named in the formula are made outside of Puerto Rico, the country of origin must be stated.

(b) Articles. Formulae for articles made with distilled spirits must show the quantity and proof of the distilled spirits used, or the percentage of absolute alcohol by volume contained in the finished product. Formulae for articles made with fermented liquors must show the kind and quantity thereof (liquid measure), and the per centum of absolute alcohol by volume of such fermented liquor.

§ 180.15 Description of process. The statement of process must set out in sequence each step used in the manufacture of the finished product. The statement of process must also show whether liquors distilled from different materials, or by different distillers, or from different combinations of the same materials at less than 190 degrees proof, or of different ages, or which differ in kind according to the standards of identity established under the Federal Alcohol Ad