report of gauge and two copies of his permit to tax-pay, Form 487-A, to the deputy collector with remittance for the tax. The deputy collector will issue distilled spirits, wine, or fermented malt liquor stamps, as the case may be, retain one copy each of the report of gauge and Form 487-A, and send one copy of each with the stamps to the treasurer.

§ 180.45 Action by treasurer. The treasurer will cancel and file the stamps in the manner prescribed in § 180.25, and authorize the insular internal revenue agent to release the liquors. A permit must be obtained as provided in § 180.46 before the articles may be shipped to the United States.

PERMIT TO SHIP LIQUORS AND ARTICLES

§ 180.46 Permit to ship required. Before liquors and articles upon which all internal revenue taxes have been paid may be shipped from Puerto Rico to the United States, a permit therefor must be obtained from the treasurer as hereinafter provided.

§ 180.47 Application, Form 487-B. Application for permit to ship tax-paid liquors and articles shall be made by the shipper for each consignment on Form 487-B, in quintuplicate. All the information required by the regulations in this part and called for by the form shall be furnished. All copies of the form shall be delivered to the insular internal revenue agent, who will execute his certificate of tax-payment thereon and forward all copies to the treasurer.

§ 180.48 Issuance of permit, Form 487-B. If the application has been properly executed and the treasurer is satisfied that all internal revenue taxes due on the liquors or articles covered thereby have been paid, he will execute his permit on all copies thereof, retain one copy of the form, return two copies to the shipper, and send two copies to the deputy collector. The deputy collector will retain one copy and send one copy to the collector of customs at the port of arrival. The shipper shall retain one copy and send one copy with other shipping documents to the collector of customs at the port of arrival.

PROCEDURE AT PORT OF ARRIVAL

§ 180.49 Action by collector of customs. Upon receipt of Form 487-B, "Application and Permit to Ship Tax-Paid Liquors or Articles to the United States," bearing the sworn affidavit of the shipper and the certification of the insular internal revenue agent that all internal revenue taxes due on the liquors or articles covered thereby have been paid, the collector of customs will release the liquors or articles, unless he has reason to believe that the full amount of taxes due thereon have not been paid.

TAX-PAYMENT AT PORT OF ARRIVAL IN THE UNITED STATES

§ 180.50 General. The internal revenue tax due on untax-paid liquors and articles brought into the United States from Puerto Rico shall be paid to the collector of internal revenue at or most convenient to the port of arrival in the United States as hereinafter provided.

§ 180.51 Permit, Form 487-C. Every person desiring to ship untax-paid liquors and articles to the United States shall obtain a permit therefor from the treasurer. Application for permit shall be filed by the shipper for each consignment on Form 487-C, in triplicate, giving all of the information called for on the form. All copies of the form shall be submitted to the treasurer. If the application is properly prepared, the treasurer will execute the permit thereon, retain one copy and return two copies to the applicant. The shipper shall retain one copy and send one copy with other shipping documents to the collector of customs at the port of arrival.

BULK CONTAINERS

§ 180.52 Gauge. When untax-paid distilled spirits are brought into the United States in bulk containers from Puerto Rico, the customs officer will regauge the packages and prepare a report, in triplicate, showing the name of the manufacturer, the kind of liquor, the brand name, the number of the formula under which the spirits were produced, the serial number and the wine and proof gallon contents of each package. If the shipment consists of wine or fermented malt liquor, the customs officer will pre

pare a report showing the name of the manufacturer, the kind of liquor, the brand name, and the serial number of each package. In the case of wine the wine-gallon content and the taxable grade of the wine will be shown, whereas in the case of fermented malt liquor the report will cite the capacity, size of the container, and the number of containers of each size.

§ 180.53 Action by collector of customs. The collector of customs will ascertain the rate or rates of tax applicable to the product from the formula, Form 27-B Supplemental, on file in his office and note the tax due on the liquor on all copies of the customs officer's report of gauge. If the spirits are subject to both the distilled spirits and rectification taxes, the collector of customs shall show separately the total amount of each such tax. The collector of customs will retain one copy of the report and send one copy to the importer and one copy to the collector of internal revenue at or most convenient to the port of arrival in the United States.

§ 180.54 Tax-payment. Upon receipt of the report from the collector of customs showing the amount of tax due on a consignment of liquors, the importer shall file application for tax-payment with the collector of internal revenue at or most convenient to the port of arrival as hereinafter provided.

(a) Distilled spirits, Form 179. Application for the tax-payment of distilled spirits in bulk containers shall be made on Form 179, in duplicate. The application and entry on Form 179 shall be modified to show that the spirits are to be withdrawn from customs custody, giving the name of the port where the liquors are held. Under the statement "Description of Packages" the number of packages to be tax-paid, serial numbers of the packages, kind of spirits and brand name, the name of the manufacturer, and the taxable contents of the packages as shown by the customs gauger's report will be shown. The importer shall forward both copies of Form 179 and the customs gauger's report to the collector of internal revenue with remittance for the tax.

(b) Fermented malt liquor, Form 7. When fermented malt liquor is brought

into the United States from Puerto Rico in hogsheads, barrels, or kegs, the importer will prepare Form 7, "Order for Stamps-Fermented Malt Liquor," in duplicate, for the necessary number of each denomination of fermented malt liquor stamps desired for the containers. Both copies of Form 7 and the customs gauger's report will be forwarded to the collector with remittance for the tax.

(c) Wine, Form 427-B. When wine is brought into the United States from Puerto Rico, the importer will prepare Form 427-B, "Order for Stamps-Wine," in duplicate, for the necessary number of each denomination of wine stamps desired for tax-paying the containers. Both copies of Form 427-B and the customs gauger's report will be forwarded to the collector with remittance for the tax.

§ 180.55 Issuance of stamps. The collector will refer to the report forwarded to him by the collector of customs and if the remittance covers the full amount of tax due as shown by such report, he will write or stamp on each copy of Form 7, 179, or 427-B, as the case may be, the words "Puerto Rico" and issue the stamps as provided below:

(a) Distilled spirits and rectified spirits stamps. Each stamp shall bear the signature of the collector, who will write or stamp thereon the date of payment of the tax, by whom paid, the number of gallons and tenths of gallons of proof spirits, and the serial number of the package. The collector may affix his signature thereto in facsimile by the use of a hand stamp, care to be taken to use only such ink as will neither fade nor blur. The collector will execute his certificate of tax-payment on both copies of Form 179, retain one copy, and return one copy with the stamps to the taxpayer. If both distilled spirits tax-paid stamps and rectified spirits stamps are issued, the entry on Form 179 of the serial numbers of the rectified spirits stamps shall be preceded by the letter "R."

(b) Fermented malt liquor stamps. The collector will issue fermented malt liquor stamps in the denominations requested on Form 7, note the serial numbers of the stamps in the space provided therefor on Form 7, stamp the date of

sale thereon, retain one copy, and return one copy with the stamps to the taxpayer.

(c) Wine stamps. The collector will issue wine stamps in the denominations requested on Form 427-B, stamp the date of sale thereon, retain one copy, and return one copy with the stamps to the taxpayer.

§ 180.56 Affixing and canceling stamps-(a) Distilled spirits and rectified spirits stamps. The taxpayer shall affix the stamps to the heads of the packages with an adhesive of good quality under supervision of a customs officer. If distilled spirits and rectified spirits stamps are issued for the same package, both stamps shall be affixed thereto. The customs officer will then cancel the stamps in the manner prescribed in § 180.24.

(b) Fermented malt liquor stamps. The taxpayer must immediately, before affixing fermented malt liquor stamps to hogsheads, barrels, and kegs, cancel the stamps by stamping thereon or perforating therein his name or initials and the date of cancellation, in letters and figures of not less than one-fourth inch in height. The stamps must be affixed centrally upon the spigot hole in the head of the package by the use of a suitable adhesive in such manner as will prevent their becoming detached by any change in moisture conditions attending the storage, cooling, dispensing, and other handling of the packages.

(c) Wine stamps. The taxpayer must, Immediately before or after affixing wine stamps to a package, cancel the stamps by indelibly writing or stamping thereon or perforating therein his name or initials and the date of cancellation. The stamps must be affixed to the Government head of each package with a good adhesive. In the case of wooden packages, tacks or staple shall be used in addition to the adhesive. When the wine stamps have been affixed to the package as heretofore provided, a coating of transparent varnish or shellac must be applied over the stamps. (53 Stat. 398; 26 U.S.C. 3301)

BOTTLED LIQUORS

§ 180.57 Taxable contents. When bottled liquors arrive in the United

States from Puerto Rico, a customs officer will refer to his copy of the approved formula, inspect the liquors, and prepare a statement, in triplicate, showing the name of the manufacturer, kind of liquor and brand name, number of cases, serial numbers of the cases, the taxable contents thereof, and the internal revenue tax due thereon. One copy of the statement will be sent to the collector of internal revenue, one copy forwarded to the importer, and one copy will be retained by the collector of customs.

§ 180.58 Tax-payment. The importer will forward his copy of the statement to the collector with remittance for the tax. The collector will refer to the statement forwarded to him by the collector of customs and if the remittance covers the full amount of tax due as shown by such report, he will, in the case of bottled distilled spirits and fermented liquors, issue receipt, Form 1, for the tax paid and return the statement and Form 1 to the importer. The collector will report the tax on his current distilled spirits list, Form 23-A, as an advance collection, noting in the remarks column that it is a Puerto Rican collection. The importer will deliver the receipt, Form 1, to the collector of customs as evidence of taxpayment. In the case of wines, the importer will forward Form 427-B, in duplicate, to the collector with the statement and remittance for the tax, as provided in § 180.39. The collector will issue the wine stamps, stamp the date of sale on both copies of Form 427-B, and return the stamps, statement, and a copy of Form 427-B to the importer. One copy of Form 427-B will be retained by the collector, who will write or stamp thereon the words "Puerto Rico" in order that the tax so collected may be credited to the government of Puerto Rico. The importer shall cancel and affix the stamps to the outer container under supervision of a customs officer as provided in § 180.40. If the collector of customs is satisfied that the full amount of tax has been paid, he will issue a release permit therefor.

§ 180.59 Affixing red strip stamps to bottles. Before bottled distilled spirits are released from customs custody, the importer must procure and affix red strip stamps to the bottles as provided in

§§ 180.66 to 180.84, inclusive. (53 Stat. 303; 26 U.S.C. 2803)

ARTICLES

§ 180.60 General. Articles containing liquors are subject to a tax on the liquors contained therein equal to that imposed on the production of like liquors in the United States. (53 Stat. 298; 26 U.S.C. 2800 (a) (4) (A))

§ 180.61 Tax-payment and release. When articles containing liquors arrive from Puerto Rico, the collector of customs will refer to his copy of the approved formula and prepare a statement, in triplicate, showing the name of the manufacturer, name of the article, the taxable quantity of liquors contained in the article, and the amount of tax due. One copy will be sent to the importer, one copy forwarded to the collector, and one copy retained by the collector of customs. The importer shall forward his copy of the statement to the collector with remittance for the tax. The collector will verify the amount of tax due with the copy of the statement received by him from the collector of customs. If the remittance is sufficient to cover the amount of tax due on the articles, the collector will issue a receipt therefor on Form 1, certify on both copies of the statement to the payment of the tax, and return the importer's copy of the certified statement with Form 1 to the importer. The collector will report the tax on his list, Form 23-A, as an advance collection, noting in the remarks column that it is a Puerto Rican collection. The importer will submit the receipt on Form 1 to the collector of customs, who will, if he is satisfied that the full amount of tax has been paid, direct the customs inspector to stencil the word “Tax-paid" on the cask, barrel, or other outer container, and release the shipment.

LIQUORS AND ARTICLES PURCHASED BY
TOURISTS

§ 180.62 Taxable. When liquors and articles subject to tax are brought into the United States by tourists, the tax thereon shall be paid as hereinafter provided.

§ 180.63 Tax-payment in Puerto Rico. Liquors upon which all Federal internal revenue taxes have been paid

in Puerto Rico may be brought into the United States for personal consumption without payment of additional taxes thereon. Containers of such spirits must be red strip stamped by the distiller, bottler, or rectifier who paid the tax. Bottles in possession of tourists bearing red strip stamps shall be evidence to customs authorities at the port of departure and at the port of arrival that the tax on the spirits has been paid. Wines upon which the internal revenue tax has been paid must have wine tax stamps affixed either to the bottle or outer container. When fermented malt liquor is purchased by a tourist for consumption in the United States, the tourist will pay the internal revenue tax due thereon to the deputy collector at San Juan, P. R., and obtain receipt therefor on Form 1. The tax on articles purchased by tourists may be paid to the deputy collector, who will issue receipt therefor on Form 1. Such receipts must be presented to customs authorities at the port of arrival as evidence of taxpayment.

§ 180.64 Report of red strip stamps used. The insular internal revenue agent will report all red strip stamps used on tax-paid spirits, bottled for sale to tourists in Puerto Rico, on Form 182 as provided in § 180.78. (53 Stat. 303, 375; 26 U.S.C. 2803, 3176)

§ 180.65 Tax-payment at port of arrival. If the internal revenue tax on liquors and articles is not paid in Puerto Rico, it must be paid by the tourist to the collector of internal revenue at the port of arrival before release thereof from customs custody. The collector of customs will notify the collector of internal revenue of the amount of tax due Upon payment of the tax, the collector will give a receipt therefor on Form 1, and report it on his current distilled spirits list, Form 23-A, as an advance collection. The collector will note in the remarks column of the list "Puerto Rican collection." The taxpayer shall submit the receipt to the collector of customs, who will release the liquor or article. Liquors brought into the United States by tourists for personal consumption are not required to be strip stamped when tax-paid at the port of arrival in the United States.

PURCHASE AND USE OF RED STRIP STAMPS

§ 180.66 Containers of distilled spirits to bear red strip stamps. Distilled spirits upon which all Federal internal revenue taxes are paid in Puerto Rico must have red strip stamps affixed to the immediate containers thereof prior to shipment to the United States. Containers of distilled spirits which have not been tax-paid in Puerto Rico may not be red strip stamped prior to shipment, but must be stamped after tax-payment at the port of arrival in the United States before their release from customs custody. (53 Stat. 303, 375; 26 U.S.C. 2803, 3176)

§ 180.67 Persons authorized to affix red strip stamps. Red strip stamps shall be affixed to containers of distilled spirits as follows: (a) by the distiller, bottler, or rectifier in Puerto Rico as prescribed in §§ 180.73 to 180.78 inclusive; or (b) under customs supervision, by the importer or consignee, or his authorized agent, at the port of arrival in the United States as prescribed in §§ 180.79 to 180.85, inclusive. (I.R.C. 2803, 3176, 53 Stat. 303, 375; 26 U.S.C. 2803, 3176)

§ 180.68 Denominations of red strip stamps. Red strip stamps will be provided in the following denominations only: 1 gallon, 1⁄2 gallon, 1 quart, 1⁄2 quart, 3⁄4 quart, 1 pint, 5 pint, 34 pint, 1⁄2 pint, and less than 1⁄2 pint. When bottles for which standards of fill are not prescribed are of sizes for which no red strip stamps are provided, the person required to affix the red strip stamps shall use those of the denomination next under the actual quantity of liquors contained in the bottles, as, for instance, a red strip stamp of the 1⁄2 pint denomination for a bottle containing more than 1⁄2 pint and less than 3⁄4 pint, and will block or strike out the original denomination and write or print on the red strip stamps immediately above the blocked or stricken out denomination the exact quantity of liquors contained in the bottles. Red strip stamps of the denomination of "less than 2 pint" need not be changed to show the exact quantity contained in the bottles. Red strip stamps of the "less than 1⁄2 pint" denomination will be issued 50 in a sheet. Red strip stamps of all other denominations will be issued 42 in a sheet. The

price is 1 cent for each red strip stamp, except that in the case of red strip stamps for bottles of less than 2 pint the price is one-quarter of 1 cent for each red strip stamp. (53 Stat. 303, 375; 26 U.S.C. 2803, 3176)

§ 180.69 Manner of affixing red strip stamps. The red strip stamps must be securely affixed to the bottles with the use of a good adhesive. The adhesive when used must be in proper liquid condition. Care must be taken to cover the entire back of the red strip stamp with the adhesive, and to press it firmly against the surface of the bottle sufficiently long to cause the red strip stamp to adhere securely to the bottle. The red strip stamp must pass over the mouth of the bottle, extending an approximately equal distance on two sides of the bottle, and be so affixed that a portion of the red strip stamp will remain attached to the bottle when it is opened. (53 Stat. 303, 375; 26 U.S.C. 2803, 3176)

§ 180.70 Concealing or obscuring red strip stamps. No part of the red strip stamp shall be concealed or obscured by any label or other covering, except that a cup may be placed over the opening of the bottle or the bottle may be placed in a carton, as hereinafter provided. Seals made of cellulose or other material which are shrunk or otherwise fitted over the necks of the bottles and cover the red strip stamps must be sufficiently transparent to permit the red strip stamps to be plainly seen and the data thereon easily read. No cup or cap may be placed over the opening of a bottle and cover the stamp, unless such cup or cap is transparent or is so placed on the bottle that it may be readily removed at any time without injury to the stamp, and the arrangement is such that the ends of the stamp will be plainly visible when the cup or cap is in place. Cartons or other coverings of bottles are permitted if so made that they may be opened and closed without being torn or broken. Sealed cartons or other coverings may not be used unless transparent or unless openings therein permit the data on the red strip stamp and the indicia on the bottle to be plainly seen and read. (53 Stat. 303, 331, 375, 54 Stat. 512; 26 U.S.C. 2803, 2871, 3176)

§ 180.71 Affixing red strip stamp over cup or cap. The red strip stamp may be