1.26 Incomplete or incorrectly executed applications.

1.27 Change in ownership, management, or control of the applicant.

1.28 Forms upon which to apply for basic permits.

1.30

1.29 Individual plant or premises. Power of attorney; Form 1534. 1.31 Denial of permit applications.

Subpart D-Authorization

1.35 Authority to issue, amend, deny, suspend, revoke, or annul basic permits. Subpart E-Amendment and Duration of Basic Permits

1.40 Change of name.

1.41 Change of address.

1.43 Change in ownership, management, or control of business.

1.43 Duration of permits.

1.44 Automatic termination of permits.

Subpart F-Revocation, Suspension, or
Annulment of Basic Permits

1.50 Revocation or suspension.

1.55

1.56

1.57

erages upon revocation or automatic terminat permit.

Subpart G-Miscellane Recalling permits for corr Oaths and affirmations.

Procedure.

1.58 Filing of permits.

1.59 Public information as to acted upon.

AUTHORITY: The provisions o issued under 49 Stat. 977, as a U.S.C. 202 note.

SOURCE: The provisions of this tained in Treasury Decision 6 13831, Dec. 29, 1960, unless othe Subpart A-Scop General.

§ 1.1

The regulations in this pa requirements governing the amendment, denial, revocatio sion, automatic termination, ment of basic permits and th of permits, except that the p 26 CFR Part 200, Rules of Permit Proceedings are hereb plicable to administrative with respect to the application the suspension, revocation, or of, basic permits under the 1 cohol Administration Act. § 1.2 Territorial extent.

The provisions of this part cable to the several States of States, the District of Col Puerto Rico.

§ 1.3 Forms prescribed.

The Director, Alcohol an Tax Division is authorized all forms required by this par tion called for shall be fu accordance with the instruct form or issued in respect the

Subpart B-Definiti

§ 1.5 Meaning of terms.

As used in this part, unle text otherwise requires, term the meaning ascribed in thi § 1.6

Act.

"Act" shall mean the Fed Administration Act.

§ 1.7 Applicant.

"Applicant" shall mean

who has filed with the Assista

§ 1.21

Domestic producers, rectifiers, blenders, and warehousemen.

No person, except pursuant to a basic permit issued under the Act, shall:

(a) Engage in the business of distilling distilled spirits, producing wine, rectifying or blending distilled spirits or wine, or bottling, or warehousing and bottling, distilled spirits; or (b) while so engaged, sell, offer or deliver for sale, contract to sell, or ship, in interstate or foreign commerce, directly or indirectly or through an affiliate, distilled spirits or wine so distilled, produced, rectified, blended, or bottled, or warehoused and bottled.

Assistant Regional Commissioner if the applicant proves to the satisfaction of the Assistant Regional Commissioner that:

(a) Such person (or in case of a corporation, any of its officers, directors, or principal stockholders) has not, within 5 years prior to the date of application, been convicted of a felony under Federal or State law, and has not, within 3 years prior to date of application, been convicted of a misdemeanor under any Federal law relating to liquor, including the taxation thereof; and

(b) Such person, by reason of his business experience, financial standing or trade connections, is likely to commence operations as a distiller, warehouseman and bottler, rectifler, wine producer, wine blender, importer, or wholesaler, as the case may be, within a reasonable period and to maintain such operations in conformity with Federal law; and

(c) The operations proposed to be conducted by such person are not in violation of the law of the State in which they are to be conducted.

APPLICATIONS FOR PERMITS

§ 1.25 General.

Applications for basic permits to engage in any of the operations set forth in §§ 1.20 to 1.22 shall be made on the appropriate form prescribed by the Director, Alcohol and Tobacco Tax Division, verified as required by § 1.56, and shall be accompanied by such affidavits, documents, and other supporting data, as the Director, Alcohol and Tobacco Tax Division or the Assistant Regional Commissioner shall require. All data, written statements, affidavits, documents, or other evidence submitted in support of the application, or upon hearing thereon, shall be deemed to be a part of the application. All applications shall be filled by mailing or delivering the same to the office of the Assistant Regional Commissioner.

§ 1.26 Incomplete or incorrectly executed applications.

Incomplete or incorrectly executed applications will not be acted upon, but the applicant shall be entitled to file a new application without prejudice, or to complete the application already filed.

§ 1.27 Change in ownersh

ment, or control of the In the event of any cha ownership, management, or the applicant (in case of a any change in the officers, persons holding more than 1 the corporate stock), after filing of any application for mit and prior to final action plication, the applicant shall Assistant Regional Commis mediately of such change.

§ 1.28 Forms upon which to basic permits.

The appropriate forms upo: apply for basic permits may from the assistant regional co er's office upon request.

§ 1.29 Individual plant or pr

An application for basic pe be filed, and permit issued, to individual plant or premises of the businesses specified in of the act is engaged in suc tion to be filed with and permit the Assistant Regional Commis the region wherein such plant ises is located.

§ 1.30 Power of attorney; For

If the application and ot ments in support of such appli signed by an attorney in fact dividual, partnership, associ corporation, or by one of the of a copartnership or associat the case of a corporation by a other person not authorize corporation's bylaws or by it directors to sign such applica supporting documents, the a must be supported by a duly cated copy of the power of att ferring authority upon the pe ing the documents to execute Such powers of attorney will b on Form 1534, in triplicate, mitted to the Assistant Regi missioner.

§ 1.31 Denial of permit appli

If, upon examination of an tion for a basic permit, the Regional Commissioner has believe that the applicant is n to such permit he shall inst ceedings for the denial of the a in accordance with the pro forth in 26 CFR Part 200, wh made applicable to such proce

Subpart D-Authorization

§ 1.35 Authority to issue, amend, deny, suspend, revoke, or annul basic permits.

The authority and power of issuing, amending, or denying basic permits, or amendments thereof, is conferred upon the Commissioner and (except as to agency initiated curtailment) upon the Assistant Regional Commissioner. The authority and power of suspending, revoking or annulling basic permits is conferred upon the Commissioner, and upon the hearing examiners referred to in 26 CFR Part 200. Any Assistant Commissioner of Internal Revenue, when designated to do so by the Commissioner, and the Director, upon consideration of appeals on petitions for review, may order the Assistant Regional Commissioner to issue, deny, suspend, revoke, and annul basic permits.

Subpart E-Amendment and Duration of Basic Permits

§ 1.40 Change of name.

In the event of any change in the name (trade or corporate name) of a permittee, or, in the event a permittee desires to engage in operations under an additional trade name, such permittee must file application (Form 1643), with the Assistant Regional Commissioner, for an amended basic permit, which application must be approved, and amended permit issued, before operations may be commenced under the new name.

§ 1.41 Change of address.

In the event of a change in address the permittee must file application (Form 1643), with the Assistant Regional Commissioner, for an amended basic permit.

§ 1.42 Change in ownership, management, or control of business.

In the event of any change in the ownership, management, or control of any business operated pursuant to a basic permit (if the permittee is a corporation, if any change occurs in the officers, directors, or persons owning or controlling more than 10 percent of the voting stock of said corporation) the permittee shall immediately notify the Assistant Regional Commissioner of such change, giving the names and ad

dresses of all new persons participating in the ownership, management, or control of such business, or in the case of a corporation, the names and addresses of such new officers, directors, or persons owning or controlling more than 10 percent of the voting stock. Notice to the Assistant Regional Commissioner of any such change shall be accompanied or supplemented by such data in reference to the personal or business history of such persons as the Assistant Regional Commissioner may require.

§ 1.43 Duration of permits.

A basic permit shall continue in effect until suspended, revoked, annulled, voluntarily surrendered, or automatically terminated, as provided in the act and in this part.

§ 1.44 Automatic termination of permits.

No basic permit shall be leased, sold or otherwise voluntarily transferred, and, in the event of such lease, sale, or other voluntary transfer, the said basic permit shall automatically terminate thereupon. If any basic permit is transferred by operation of law or if actual or legal control of the permittee is acquired, directly or indirectly whether by stock ownership or in any other manner, by any person, then such permit shall be automatically terminated at the expiration of 30 days thereafter: Provided, That if within such 30-day period application for a new basic permit is made by the transferee or permittee, respectively, then the outstanding basic permit shall continue in effect until such time as the application is finally acted upon. Subpart F-Revocation, Suspension,

or Annulment of Basic Permits

§ 1.50 Revocation or suspension.

Whenever the Assistant Regional Commissioner has reason to believe that any permittee has willfully violated any of the conditions of his basic permit or has not engaged in the operations authorized by the permit for a period of more than two years, he shall institute proceedings for the revocation or suspension of such permit, in accordance with the procedure set forth in 26 CFR Part 200, which part is made applicable to such proceedings.

§ 1.51 Annulment.

Whenever the Assistant Regional Commissioner has reason to believe that any basic permit was procured through fraud, or misrepresentation or concealment of material fact, he shall institute proceedings for the annulment of such permit in accordance with the procedure set forth in 26 CFR Part 200, which part is made applicable to such proceedings. § 1.52 Disposition of stocks of alcoholic beverages upon revocation, annulment, or automatic termination of basic permit.

In the event of the revocation or annulment of a basic permit, pursuant to 26 CFR Part 200, or in the event such permit is automatically terminated by operation of law (27 U.S.C. 204(g)) and § 144, the Assistant Regional Commissioner may authorize the orderly disposition of stocks of distilled spirits, wines or malt beverages then held by the permittee or former permittee upon such conditions as may be considered proper.

Subpart G-Miscellaneous

§ 1.55 Recalling permits for correction. Whenever it shall be discovered that any basic permit has been issued authorizing acts, or combinations of acts, which may not properly, under the law and regulations, as of now or hereafter in force, be authorized, or that any material mistake has occurred in the issuance thereof, the holder of such permit shall forthwith surrender the same for correction or amendment upon demand of the Assistant Regional Commissioner. § 1.56

Oaths and affirmations.

Any document required by regulations or instructions of the Commissioner to be verified, shall be so verified upon oath or affirmation taken before a person authorized by the laws of the United States or by State or local law to administer oaths or affirmations in the State, Territory, or District wherein such document is to be executed.

the issuance of subpoenas an of depositions under the Fed Administration Act.

§ 1.58 Filing of permits.

Every person receiving a b under the provisions of this pa the same, at the place covered by the basic permit, may be examined by Governm § 1.59 Public information as tions acted upon.

The Assistant Regional Co shall cause to be maintained in his office for public inspec the expiration of one year final action on the applicatio lowing information with respe application for basic permit f

(a) The name, including tr or names, if any, and the addı applicant; the kind of perm for and the location of the whether the applicant is an in partnership or a corporation; nership, the name and addres partner; if a corporation, the address of each of the princip and of each stockholder owni cent or more of the corporate

(b) The time and place se hearing on the application.

(c) The final action taken d plication. In the event a heari upon an application for a bas the Assistant Regional Com shall make available for ins his office, upon request the transcript of the hearing, a c examiner's recommended de copy of the Assistant Regional sioner's decision and, in the e appeal to the Director, Alcoho bacco Tax Division, the de appeal with the reasons given thereof.

PART 2-NONINDUSTRIAL DISTILLED SPIRITS AND Subpart A-Scope of Regula

Sec.

2.1

Nonindustrial use of disti and wine.

Subpart B-Definitions

Distilled spirits.

Wine.

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