mined and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of a "major disaster" occurring in the United States after June 30, 1959. The provisions of this subpart shall not be applicable in respect of distilled spirits, wines, rectified products, and beer of Puerto Rican manufacture brought into the United States.

§ 170.302 Forms prescribed.

The Director, Alcohol, Tobacco and Firearms Division, is authoried to prescribe all forms required by this part, including applications, claims, records, and reports. Information called for shall be furnished in accordance with the instructions on the forms, or issued in respect thereto.

DEFINITIONS

§ 170.303 Meaning of terms.

When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this section. Words in the plural shall include the singular, and vice versa, and words importing the masculine shall include the feminine as well. The terms "includes" and "including" do not exclude things not enumerated which are in the same general class.

Alcoholic liquors, or "liquors". Distilled spirits, wines, rectified products, and beer, lost, rendered unmarketable, or condemned, as provided in this subpart.

Assistant regional commissioner. An assistant regional commissioner (alcohol, tobacco and firearms) who is responsible to, and functions under the direction and supervision of, a regional commissioner of internal revenue.

Beer. Beer, ale, porter, stout, and other similar fermented beverages (including sake or other similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume on which the internal revenue tax has been paid or determined, and, if imported, on which duties have been paid at the rate applicable thereto.

Claimant. The person who held the liquors for sale at the time of the disaster and who files claim under this subpart.

Commissioner. The Commissioner of

Internal Revenue.

Commissioner of Customs. The Commissioner of Customs, Bureau of Customs, Treasury Department, Washington, D.C.

Disaster. A flood, fire, hurricane, earthquake, storm, or other catastrophe occurring after June 30, 1959, (1) which the President of the United States has determined under the Act of September 30, 1950 (64 Stat. 1109; 42 U.S.C. 1855) to be a "major disaster" as defined in said act, and (2) which occurred in a part of the United States in which disaster assistance by the Federal Government was authorized under 42 U.S.C. Chapter 15 because of such catastrophe.

Distilled spirits, or spirits. Ethyl alcohol and other distillates, such as whisky, brandy, rum, gin, and vodka, on which the internal revenue tax has been paid or determined, and, if imported, on which duties have been paid at the rate applicable thereto.

Duly authorized official. Any Federal, State, or local government official in whom has been vested authority to condemn liquors made the subject of a claim under this subpart.

Duty or duties. Any duty or duties paid under the customs laws of the United States.

Rectified products. Liquors manufactured by rectifying, purifying, refining, mixing, or blending distilled spirits or wines and on which tax has been paid or determined, and, if imported, on which duty has been paid.

Tax. With respect to: (a) Unrectified distilled spirits, the internal revenue distilled spirits tax paid or determined thereon; (b) wines, the internal revenue wine tax paid or determined thereon; (c) rectified products, the internal revenue distilled spirits tax, the rectification tax (if any), the cordial tax (if any), and the wine tax (if any), paid or determined thereon; and (d) beer, the internal revenue beer tax paid or determined thereon.

United States. When used in a geographical sense includes only the States, the Territory of Hawaii, and the District of Columbia.

Wines. All still wines, effervescent wines, and flavored wines, on which internal revenue wine tax has been paid or determined, and, if imported, on which duty has been paid.

(b) Provisions of section 5008, I.R.C., not applicable. The provisions of (1) section 5008(b)(1), I.R.C., respecting the voluntary destruction of spirits in bond; (2) section 5008 (b) (2), I.R.C., respecting the voluntary destruction of spirits after withdrawal for rectification or bottling; (3) section 5008 (c) (1) (A), I.R.C., respecting spirits lost after withdrawal for rectification or bottling, by reason of accident, flood, fire, or other disaster; (4) section 5008 (c) (1) (B), I.R.C., respecting spirits lost in rectifying, packaging, bottling and casing operation; (5) section 5008(c) (5), I.R.C., respecting distilled spirits returned to bottling premises; or (6) section 5008 (d), I.R.C., respecting spirits returned to bonded premises after withdrawal upon tax determination, do not apply to Puerto Rican spirits, since such provisions only authorize abatement, remission, credit, or refund of taxes imposed under chapter 51, I.R.C. In computing loss allowance under the provisions of §201.486 of this chapter, Puerto Rican spirits shall be considered the same as "other than spirits withdrawn from bond by the proprietor of the bottling premises", and for the purposes of § 201.492 of this chapter, they shall be considered as "other spirits".

(72 Stat. 1323, as amended, 1364, as amended; 26 U.S.C. 5008, 5215)

§ 170.171 Marks on containers.

(a) Packages received in bond. When packages of spirits are received on the bonded premises of a distilled spirits plant under the provisions of this subpart, the markings prescribed by § 250.40 of this chapter, modified to show the serial number of the Form 4776 prefixed by "Form 4776," rather than the serial number and identification of the Form 487-B, shall be accepted in lieu of the markings prescribed in § 201.312b of this chapter. On receipt of packages so marked the proprietor of the distilled spirits plant shall show on such packages (1) the date of original entry for deposit of the spirits, and (2) the words "Puerto Rican".

(b) Other containers. Packages of Puerto Rican spirits filled in internal revenue bond or on bottling premises shall, in addition to the required marks prescribed in § 201.516 or § 201.526 of this chapter, as applicable, be marked to show the serial number of the approved formula under which produced, and with the words "Puerto Rican". Tanks or bulk conveyances containing spirits received

in internal revenue bond under the provisions of this subpart shall, in addition to other required marks, be marked with the words "Puerto Rican".

(c) Cases of bottled alcohol. In addition to other mandatory marks prescribed by 201.529(a) of this chapter for cases of bottled alcohol, the words "Puerto Rican" shall precede or follow the word "alcohol" on cases of alcohol from Puerto Rico that are bottled and cased on bonded premises.

(72 Stat. 1360, 1369; 26 U.S.C. 5206, 5235) § 170.172 Additional tax on nonbeverage spirits.

The additional tax imposed by section 5001(a) (9), I.R.C., on imported spirits withdrawn from customs custody without payment of tax and thereafter withdrawn from bonded premises for beverage purposes, and the related provisions of 201.376 of this chapter, are not applicable to Puerto Rican spirits brought into the United States and transferred to bonded premises under the provisions of this subpart.

§ 170.173 Exportation with benefit of drawback.

Claims and supporting documents respecting export with benefit of drawback of domestic distilled spirits products that contain spirits from Puerto Rico shall show:

(a) The precise quantity (in proof gallons) of the finished product attributable to the Puerto Rican spirits contained therein, and

(b) The amount of tax and the applicable rate or rates of tax imposed by section 7652, I.R.C., determined at the time of withdrawal from internal revenue bond on the Puerto Rican spirits contained in the product.

(72 Stat. 1336; 26 U.S.C. 5062)

Subparts H-N-[Reserved] Subpart O-Losses Caused by Disaster After June 30, 1959

SOURCE: The provisions of this Subpart O contained in T.D. 6400, 24 F.R. 5828, July 22, 1959, unless otherwise noted.

§ 170.301 Scope of subpart.

The regulations in this subpart prescribe the requirements necessary to implement section 5064, I.R.C., concerning payments which may be made by the United States of amounts equal to the internal revenue taxes paid or deter

mined and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of a "major disaster” occurring in the United States after June 30, 1959. The provisions of this subpart shall not be applicable in respect of distilled spirits, wines, rectified products, and beer of Puerto Rican manufacture brought into the United States.

§ 170.302 Forms prescribed.

The Director, Alcohol, Tobacco and Firearms Division, is authoried to prescribe all forms required by this part, including applications, claims, records, and reports. Information called for shall be furnished in accordance with the instructions on the forms, or issued in respect thereto.

DEFINITIONS

§ 170.303 Meaning of terms.

When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meanings ascribed in this section. Words in the plural shall include the singular, and vice versa, and words importing the masculine shall include the feminine as well. The terms "includes" and "including" do not exclude things not enumerated which are in the same general class.

Alcoholic liquors, or "liquors". Distilled spirits, wines, rectified products, and beer, lost, rendered unmarketable, or condemned, as provided in this subpart.

Assistant regional commissioner. An assistant regional commissioner (alcohol, tobacco and firearms) who is responsible to, and functions under the direction and supervision of, a regional commissioner of internal revenue.

Beer. Beer, ale, porter, stout, and other similar fermented beverages (including sake or other similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume on which the internal revenue tax has been paid or determined, and, if imported, on which duties have been paid at the rate applicable thereto. Claimant. The person who held the liquors for sale at the time of the disaster and who files claim under this subpart.

Commissioner. The Commissioner of

Internal Revenue.

Commissioner of Customs. The Commissioner of Customs, Bureau of Customs, Treasury Department, Washington, D.C.

Disaster. A flood, fire, hurricane, earthquake, storm, or other catastrophe occurring after June 30, 1959, (1) which the President of the United States has determined under the Act of September 30, 1950 (64 Stat. 1109; 42 U.S.C. 1855) to be a "major disaster" as defined in said act, and (2) which occurred in a part of the United States in which disaster assistance by the Federal Government was authorized under 42 U.S.C. Chapter 15 because of such catastrophe.

Distilled spirits, or spirits. Ethyl alcohol and other distillates, such as whisky, brandy, rum, gin, and vodka, on which the internal revenue tax has been paid or determined, and, if imported, on which duties have been paid at the rate applicable thereto.

Duly authorized official. Any Federal, State, or local government official in whom has been vested authority to condemn liquors made the subject of a claim under this subpart.

Duty or duties. Any duty or duties paid under the customs laws of the United States.

Rectified products. Liquors manufactured by rectifying, purifying, refining, mixing, or blending distilled spirits or wines and on which tax has been paid or determined, and, if imported, on which duty has been paid.

Tax. With respect to: (a) Unrectified distilled spirits, the internal revenue distilled spirits tax paid or determined thereon; (b) wines, the internal revenue wine tax paid or determined thereon; (c) rectified products, the internal revenue distilled spirits tax, the rectification tax (if any), the cordial tax (if any), and the wine tax (if any), paid or determined thereon; and (d) beer, the internal revenue beer tax paid or determined thereon.

United States. When used in a geographical sense includes only the States, the Territory of Hawaii, and the District of Columbia.

Wines. All still wines, effervescent wines, and flavored wines, on which internal revenue wine tax has been paid or determined, and, if imported, on which duty has been paid.

PAYMENTS

§ 170.304 Circumstances under which payment may be made.

Assistant regional commissioners shall allow payment (without interest) of an amount equal to the amount of tax paid or determined, and the Commissioner of Customs shall allow payment (without interest) of an amount equal to the amount of customs duty paid, on distilled spirits, wines, rectified products, and beer previously withdrawn, which are lost, rendered unmarketable, or condemned by a duly authorized official by reason of a disaster occurring in the United States after June 30, 1959. Payment may be made only if (a) at the time of the disaster, such liquors were being held for sale by the claimant; (b) refund or credit of the amount claimed or any part thereof has not or will not be claimed for the same liquors under any other provision of law or regulations; and (c) the claimant was not indemnified by a valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the liquors covered by the claim.

CLAIMS PROCEDURE

§ 170.305 Execution and filing of claim. Claims under this subpart shall be executed on Form 843 (Internal Revenue) in accordance with such instructions thereon as are applicable, and filed (original only) with the assistant regional commissioner of the internal revenue region in which the liquors were lost, rendered unmarketable, or condemned, within 6 months after the date on which the President makes the determination that the disaster has occurred. The claim shall state all the facts on which the claim is based, and shall have attached thereto Form 2606, Inventory of Distilled Spirits Lost by Disaster, Form 2606-A, Inventory of Wines Lost by Disaster, and Form 2606-B, Inventory of Beer Lost by Disaster, as the case may be, prepared in accordance with the instructions thereon. The claim shall contain a statement that no claim for credit or refund has been or will be filed under any other provision of law with respect to the same liquors for the amount claimed or any part thereof.

§ 170.306 Separation of imported, domestic, and Virgin Islands liquors; separate claims for taxes and duties. If a claim involves taxes on domestic liquors, imported liquors, and/or liquors of Virgin Islands manufacture, the quantities of each must be shown separately in the claim. A separate claim on Form 843 must be filed in respect of customs duties.

§ 170.307 Claimant to furnish proof.

The claimant shall furnish proof to the satisfaction of the assistant regional commissioner regarding the following:

(a) That the tax on such liquors, or the tax and duty if imported, was fully paid, or the tax, if not paid, was fully determined;

(b) That such liquors were lost, rendered unmarketable, or condemned by a duly authorized official, by reason of damage sustained as a result of a disaster;

(c) The type and date of occurrence of the disaster and the location of the liquors at that time;

(d) That the claimant was not indemnified by a valid claim of insurance or otherwise in respect of the tax, or tax and duty, on the liquors covered by the claim; and

(e) That the claimant is entitled to payment under this subpart.

§ 170.308 Supporting evidence.

The claimant shall support his claim with any evidence (such as inventories, statements, invoices, bills, records, labels, formulas, stamps) that he is able to submit, relating to the quantities and identities of liquors, on which duty has been paid or tax has been paid or determined, on hand at the time of the disaster and averred to have been lost, rendered unmarketable, or condemned as a result thereof. If the claim is for refund of duty the claimant shall furnish, if practicable, the customs number, the date of entry, and the name of the port of entry.

§ 170.309 Action on claims.

The assistant regional commissioner shall date stamp and examine each claim filed under this subpart and will determine the validity of the claim. Claims and supporting data involving customs duties will be forwarded to the Commissioner of Customs with a summary statement by the assistant regional commissioner regarding his findings.

When allowance has been made under this subpart in respect of the tax, or tax and duty, on liquors condemned by a duly authorized official or rendered unmarketable, such liquors shall be destroyed by suitable means under supervision satisfactory to the assistant regional commissioner, unless such liquors were previously destroyed under supervision satisfactory to the assistant regional commissioner. The Commissioner of Customs will notify the assistant regional commissioner as to allowance under this subpart of claims for duty in respect of unmarketable or condemned liquors.

(72 Stat. 1337; 26 U.S.C. 5064)

Penalties are provided in sections 7206 and 7207 of the Internal Revenue Code for the execution under the penalties of perjury of any false or fraudulent statement in support of any claim and for the filing of any false or fraudulent document under this subpart. All provisions of law, including penalties, applicable in respect of internal revenue taxes on distilled spirits, wines, rectified products, and beer, shall, insofar as applicable and not inconsistent with this subpart, be applied in respect of the payments provided for in this subpart to the same extent as if such payments constituted refunds of such taxes.

(68A Stat. 852, 853; 26 U.S.C. 7206, 7207)

Subpart Q-Interim Regulations SOURCE: The provisions of this Subpart Q contained in T.D. 6373, 24 F.R. 3067, Apr. 21, 1959, unless otherwise noted.

§ 170.371 Existing regulations

scribed as interim regulations.

pre

All regulations (including all Treasury decisions) prescribed by, or under authority duly delegated by, the Secretary of the Treasury, or jointly by the Secretary and the Commissioner of Internal Revenue, or by the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury, or jointly by the Commissioner of Internal Revenue and the Commissioner of Customs with the approval of the Secretary of the Treasury, applicable under any provision of law in effect on June 30, 1959, to the

extent such provision of law is repealed by section 201 of the act, are, insofar as any such regulation is not inconsistent with the Code as amended by section 201 of the act, hereby prescribed under and made applicable to the provisions of the Code, as amended by the act, corresponding to the provision of law so repealed. Such regulations shall, on July 1, 1959, become effective as regulations under the various provisions of the Code as amended by section 201 of the act, until superseded by regulations issued pursuant to chapter 51 of the Code as amended by such act.

§ 170.372

Applicability of instructions or rules in effect on June 30, 1959.

All instructions and interpretative rulings in effect, with respect to chapter 51 of the Code or with respect to regulations issued pursuant thereto, as of June 30, 1959, shall, to the extent that such instructions or rulings are not inconsistent with chapter 51 of the Code, as amended by section 201 of the act or with regulations in effect after such date, continue in effect on and after July 1, 1959, and be applied as instructions and rulings pursuant to the applicable provisions of the Code as so amended or pursuant to the applicable provisions of regulations in effect on and after July 1, 1959, as the case may be.

§ 170.373 Regulations to be followed.

(a) Continuation of same businesses. Any person who, on June 30, 1959, was subject to regulations which, under § 170.371, are prescribed and made applicable on and after July 1, 1959, shall be subject to the provisions of such regulations as prescribed and made applicable which correspond to the provisions of regulations to which he was subject on June 30, 1959, to the extent that such regulations are not superseded as provided in § 170.371.

(b) New businesses. Any person who, on or after July 1, 1959, intends to commence a new business or operation which is required to be qualified under section 5171, I.R.C., shall conduct such business or operation in conformity with the regulations in Part 182, 216, 220, 221, 225, 230, or 235 of this chapter, as the case may be, which would have been applicable to such business or operation on June 30, 1959, to the extent that such regulations are not superseded as provided in § 170.371.