United States of amounts equal to the internal revenue taxes paid or determined and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of a "major disaster” occurring in the United States after June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 and Tobacco Tax Division, is authorized 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 and tobacco tax) 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.

The Com

Commissioner of Customs. missioner 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.

§ 170.304

PAYMENTS

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.

§ 170.305

CLAIMS PROCEDURE

con

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 demned, 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.

DESTRUCTION OF LIQUORS

§ 170.310 Supervision.

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.

§ 170.374 Meaning of terms.

The terms "distilled spirits plant", "bonded premises", and "bottling premises", as they appear in this section, shall have the meanings ascribed in section 5002 (a) (1), (2), and (3), I.R.C., respectively. Any references, in the regulations prescribed and made applicable by this subpart, to industrial alcohol plants, registered distilleries, fruit distilleries, internal revenue bonded warehouses, industrial alcohol bonded warehouses, distillery denaturing bonded warehouses, and industrial alcohol denaturing plants shall, for the purpose of this subpart, be treated as references to the corresponding facilities of the bonded premises of a distilled spirits plant, and references to the proprietor of any such premises shall be treated as references to the proprietor of the bonded premises of a distilled spirits plant. Similarly, any references in the regulations prescribed and made applicable by this subpart to taxpaid bottling houses and rectifying plants shall, for the purpose of this subpart, be treated as references to the corresponding facilities of the bottling premises of distilled spirits plants, and references to the proprietors of such taxpaid bottling house and rectifying plant shall be treated as references to the proprietors of bottling premises of distilled spirits plants.

Subparts R-T-[Reserved] Subpart U-Manufacture and Sale of Certain Compounds, Preparations, and Products Containing Alcohol SOURCE: The provisions of this Subpart U contained in T.D. 6484, 25 F.R. 7101, July 27, 1960, unless otherwise noted.

§ 170.611 Scope of subpart.

This subpart contains provisions relating to the special tax status of persons who compound, mix, manufacture, or sell compounds, mixtures, preparations, or products containing taxpaid distilled spirits or wines, and the commodity tax status of such compounds, mixtures, preparations, and products.

§ 170.612 Meanings of terms.

When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular,

and vice versa, and words importing the masculine gender shall include the feminine. The terms "includes" and "including" do not exclude things not enumerated which are in the same general class.

An

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

Commodity tax. The tax or taxes imposed by sections 5021 and 5022, I.R.C., on products of rectification.

Director. The Director, Alcohol and Tobacco Tax Division, Internal Revenue Service, Treasury Department, Washington, D.C.

Distilled spirits, or spirits. That substance known as ethyl alcohol, ethanol, or spirits of wine, including all dilutions and mixtures thereof.

I.R.C. The Internal Revenue Code of 1954, as amended.

Liquors. Distilled spirits and/or wines. Person. An individual, trust, estate, partnership, association, company, or corporation.

Special tax. The special (occupational) tax imposed by sections 5081, 5111, and 5121, I.R.C., on rectifiers and dealers in liquors.

Taxpaid distilled spirits, or wines. Distilled spirits or wines, as the case may be, on which the distilled spirits tax imposed by section 5001, I.R.C., or the wine taxes imposed by section 5041, I.R.C., have been paid or determined.

This chapter. Chapter I of Title 26 of the Code of Federal Regulations. U.S.C. The United States Code. COMMODITY TAX STATUS OF PRODUCTS § 170.613 Products exempt from commodity taxes.

(a) Products meeting requirements. Except as provided in § 170.616(b), apothecaries, pharmacists, and manufacturers are not required to pay commodity taxes on medicines, medicinal preparations, food products, flavors, and flavoring extracts manufactured or compounded by them, if the tax has been paid or determined on all of the distilled spirits and/or wines contained therein, as follows:

(1) Medicines and medicinal preparations. Medicines and medicinal preparations (including such preparations manufactured in accordance with formulas prescribed by the United States

Pharmacopoeia, the National Formulary, or the Homeopathic Pharmacopoeia of the United States) that are unfit for use for beverage purposes.

(2) Patent medicines. Patented, patent, and proprietary medicines that are unfit for use for beverage purposes.

(3) Toilet preparations. Toilet, medicinal, and antiseptic preparations and solutions that are unfit for use for beverage purposes.

(4) Flavoring extracts. Flavoring extracts, sirups, and concentrates that are unfit for use for beverage purposes.

(5) Laboratory reagents. Laboratory reagents, stains, and dyes that are unfit for use for beverage purposes.

(6) Salted wines. Salted wines which contain not in excess of 21 percent alcohol by volume and not less than 1.5 grams of salt per 100 cubic centimeters.

(7) Sauces. Sauces, or sirups consisting of sugar solutions and liquors, in which the alcohol content is not more than 12 percent by volume and the sugar content is not less than 60 grams per 100 cubic centimeters.

(8) Brandied fruits. Brandied fruits consisting of solidly packaged fruits, either whole or segmented, and liquors not exceeding the quantity and alcohol content necessary for flavoring and preserving.

(9) Food products. Food products such as mincemeat, plum pudding, and fruit cake, where only sufficient liquor is used for flavoring and preserving; and ice cream and ices where only sufficient liquor is used for flavoring purposes.

(b) Formulas and samples; when required. On request of the Director, or when in doubt as to the classification of his product, the manufacturer shall submit to the Director the formula for and a sample of his product for examination to verify the manufacturer's claim of exemption from tax.

(72 Stat. 1328; 26 U.S.C. 5025)

Elixir cardamom compositum.
Elixir glycyrrhizae.

Elixir taraxaci compositum.
Elixir terpini hydratis.
Spiritus aetheris.

Spiritus myrciae compositus.
Tinctura aurantii dulcis.
Tinctura limonis.

§ 170.615 Change of formula; when required.

If the assistant regional commissioner finds at any time that any product manufactured under this subpart as an unfit product exempt from tax is being used for beverage purposes, or for mixing with beverage liquors other than by a rectifier, he shall notify the manufacturer to desist the manufacturing of such product until the formula is so changed as to render the product not susceptible of beverage use and such change is approved by the Director: Provided, That the provisions of this section shall not be so construed as to prohibit the use of such unfit products in small quantities for flavoring drinks at the time of serving for immediate consumption. Where, pursuant to notice, the manufacturer does not desist, or the formula is not so modified as to render the product unsusceptible of beverage use, the manufacturer shall immediately qualify as a rectifier and pay the rectification tax on such product.

§ 170.616 Products classed as rectified liquors.

(a) Rectified liquors. United States Pharmacopoeia tincture of ginger is held to be rectified liquor. Bitters, patent medicines, and similar alcoholic preparations which are fit for beverage purposes, although held out as having certain medicinal properties, are also classed as rectified liquors. The commodity tax imposed by section 5021 or 5022, I.R.C., as the case may be, is required to be paid on alcoholic preparations classed as rectified liquors (including cordials or liqueurs). Such preparations are required to be manufactured in the rectifying facilities of a distilled spirits plant, taxpaid, bottled or packaged, stamped, recorded, and disposed of in accordance with the procedure prescribed in Part 201 of this chapter for other rectified spirits or products. Sellers of such preparations will be subject to the provisions of Part 194 of this chapter with respect to special taxes.

(b) Products sold for beverage use. Any product described in §§ 170.613 and