the alcoholic beverage was bottled prior to November 18, 1989.

(b) Imported products. On and after November 18, 1989, no person shall import for sale or distribution in the United States any alcoholic beverage anless the container of such beverage bears the health warning statement required by § 16.21. This requirement does not apply to alcoholic beverages that were bottled in the foreign country prior to November 18, 1989. It is the responsibility of the importer to provide, upon request, sufficient evidence to establish that the alcoholic beverage was bottled prior to such date.

$16.21 Mandatory label information.

There shall be stated on the brand label or separate front label, or on a back or side label, separate and apart from all other information, the following statement:

GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects.

(2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems. Authority: Sec. 8001, Pub. L. 100-690, 102 Stat. 4181, 27 U.S.C. 215)

$16.22 General requirements.

(a) Legibility. (1) All labels shall be so designed that the statement required by $16.21 is readily legible under ordinary conditions, and such statement shall be on a contrasting background.

(2) The first two words of the statement required by §16.21, i.e., "GOVERNMENT WARNING," shall apear in capital letters and in bold type. The remainder of the warning statement may not appear in bold type.

(3) The letters and/or words of the statement required by §16.21 shall not be compressed in such a manner that the warning statement is not readily legible.

(4) The warning statement required by § 16.21 shall appear in a maximum number of characters (i.e., letters, numbers, marks) per inch, as follows:

(2) Containers of more than 237 milliliters (8 fl. oz.) up to 3 liters (101 fl. oz.). The mandatory statement required by § 16.21 shall be in script, type, or printing not smaller than 2 millimeters.

(3) Containers of more than 3 liters (101 fl. oz.). The mandatory statement required by §16.21 shall be in script, type, or printing not smaller than 3 millimeters.

(c) Labels firmly affixed. Labels bearing the statement required by $16.21 which are not an integral part of the container shall be affixed to containers of alcoholic beverages in such manner that thay cannot be removed without thorough application of water or other solvents.

[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990, as amended by T.D. 372, 61 FR 20723, May 8, 1996]

Subpart D-General Provisions

§ 16.30 Certificates of label approval.

Certificates of label/bottle approval or certificates of exemption from label approval on ATF Form 5100.31, issued pursuant to parts 4, 5, and 7 of this chapter for imported and domestically bottled wine, distilled spirits, and malt beverages, shall not be approved with respect to such beverage bottled on and after November 18, 1989, unless the label for the container of such beverage bears the health warning statement required.

[T.D. ATF-294, 55 FR 5421, Feb. 14, 1990. as amended by T.D. ATF-425, 65 FR 11892, Mar. 7, 2000]

§ 16.31 Exports.

The regulations in this part shall not apply with respect to alcoholic beverages that are produced, imported, bottled, or labeled for export from the

United States, or for delivery to a vessel or aircraft, as supplies, for consumption beyond the jurisdiction of the internal revenue laws of the United States: Provided, That this exemption shall not apply with respect to alcoholic beverages that are produced, imported, bottled, or labeled for sale, distribution, or shipment to members or units of the Armed Forces of the United States, including those located outside the United States.

§ 16.32 Preemption.

No statement relating to alcoholic beverages and health, other than the statement required by §16.21, shall be required under State law to be placed on any container of an alcoholic beverage, or on any box, carton, or other package, irrespective of the material from which made, that contains such a container.

§ 16.33 Civil penalties.

(a) General. Any person who violates the provisions of this part shall be subject to a civil penalty of not more than $10,000, and each day shall constitute a separate offense.

(b) Adjusted penalty for violations occurring after October 23, 1996. Pursuant to the provisions of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, the civil penalty provided for in paragraph (a) of this section shall be periodically adjusted in accordance with inflation. Accordingly, for violations occurring after October 23, 1996, the civil penalty shall be not more than $11,000.

Failure to register.

Certificates in lieu of lost stamps.

17.75 Formation of partnership or corpora

17.92 Filing of refund claim.

17.93 Time limit for filing refund claim.

Subpart E-Bonds and Consents of Sureties

17.101 General.

17.102 Amount of bond.

17.182

Drawback claims by druggists. 17.183 Disposition of recovered alcohol and material from which alcohol can be recovered.

17.184 Distilled spirits container marks. 17.185 Requirements for intermediate products and unfinished nonbeverage products.

17.186 Transfer of distilled spirits to other containers.

17.187 Discontinuance of business.

AUTHORITY: 26 U.S.C. 5010, 5131-5134, 5143, 5146, 5206, 5273, 6011, 6065, 6091, 6109, 6151, 6402, 6511, 7011, 7213, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

SOURCE: T.D. ATF-379, 61 FR 31412, June 20, 1996, unless otherwise noted.

EDITORIAL NOTE: Nomenclature changes to part 17 appear by T.D. ATF-436, 66 FR 5470, 5471, Jan. 19, 2001.

Subpart A-General Provisions

§ 17.1 Scope of regulations.

The regulations in this part apply to the manufacture of medicines, medicinal preparations, food products, flavors, flavoring extracts, and perfume that are unfit for beverage use and are made with taxpaid distilled spirits. The regulations cover the following topics: obtaining drawback of internal revenue tax on distilled spirits used in the manufacture of nonbeverage products; the payment of special (occupational) taxes in order to be eligible to receive drawback; and bonds, claims, formulas and samples, losses, and records to be kept pertaining to the manufacture of nonbeverage products.

§ 17.2 Forms prescribed.

(a) The appropriate ATF officer is authorized to prescribe all forms, including bonds and records, required by this part. All of the information called for

in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form.

(b) Forms may be requested from the ATF Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-5190, or at the ATF web site (http:// www.atf.treas.gov/).

[T.D. ATF-379, 61 FR 31412, June 20. 1996, as amended by T.D. ATF-436, 66 FR 5470. Jan. 19, 2001]

§ 17.3 Alternate methods or procedures.

(a) General. The appropriate ATF officer may approve the use of an alternate method or procedure in lieu of a method or procedure prescribed in this part if he or she finds that

(1) Good cause has been shown for the use of the alternate method or procedure;

(2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the method or procedure prescribed by this part, and affords equivalent security to the revenue; and

(3) The alternate method or procedure will not be contrary to any provision of law, and will not result in any increase in cost to the Government or hinder the effective administration of this part.

(b) Application. A letter of application to employ an alternate method or procedure must be submitted to the appropriate ATF officer. The application shall specifically describe the proposed alternate method or procedure, and shall set forth the reasons therefor.

(c) Approval. No alternate method or procedure shall be employed until the application has been approved by the appropriate ATF officer. The appropriate ATF officer shall not approve any alternate method relating to the giving of any bond or to the assessment, payment, or collection of any tax. The manufacturer shall, during the period of authorization, comply with the terms of the approved application and with any conditions thereto stated by the appropriate ATF officer

in the approval. Authorization for any alternate method or procedure may b withdrawn by written notice from the Director whenever in his or her judg ment the revenue is jeopardized, the ef fective administration of this part i hindered, or good cause for the author ization no longer exists. The manufac turer shall retain, in the records re quired by $17.170, any authorization given by the appropriate ATF office. under this section.

[T.D. ATF-379, 61 FR 31412. June 20, 1996. a amended by T.D. ATF-436, 66 FR 5470. Jan. 19, 2001]

§ 17.4 OMB control numbers assigne under the Paperwork Reduction Act.

(a) Purpose. This section collects and displays the control numbers assignec to the information collection require ments of this part by the Office of Management and Budget under the Paper work Reduction Act of 1980, Public Law 96-511.

(b) OMB control number 1512-0078. OMB control number 1512-0078 is assigned to the following section in this part: §17.106.

(c) OMB control number 1512-0079. OMB control number 1512-0079 is assigned to the following sections in this part: §§ 17.6 and 17.105.

(d) OMB control number 1512-0095. OMB control number 1512-0095 is assigned to the following sections in this part: §§ 17.121, 17.126, 17.127, 17.132, and 17.136.

(e) OMB control number 1512-0141. OMB control number 1512-0141 is assigned to the following sections in this part: §§ 17.92, 17.93, 17.142, 17.145, and 17.146.

(f) OMB control number 1512-0188. OMB control number 1512-0188 is assigned to the following section in this part: § 17.6.

(g) OMB control number 1512-0378. OMB control number 1512-0378 is assigned to the following sections in this part: §§ 17.3, 17.54, 17.111, 17.112, 17.122. 17.123, 17.124, 17.125, 17.143, 17.168(a), 17.183, and 17.187.

(h) OMB control number 1512-0379. OMB control number 1512-0379 is assigned to the following sections in this part: §§ 17.161, 17.162, 17.163, 17.164,

17.165, 17.166, 17.167, 17.168(b), 17.169, 17.170. 17.182, and 17.186.

(1) OMB control number 1512-0472. OMB control number 1512-0472 is assigned to the following sections in this part: $17.31. 17.32, 17.33, 17.34, 17.41, 17.53, 17.61, 17.63, 17.71, and 17.74.

(j) OMB control number 1512-0492. OMB control number 1512-0492 is assigned to the following sections in this part: §§ 17.42, 17.43, 17.52, and 17.55.

(k) OMB control number 1512-0500. OMB control number 1512-0500 is assigned to the following sections in this part: §§ 17.31, 17.32, 17.33, 17.34, 17.41, and 17.53.

(1) OMB

control number 1512-0514. OMB control number 1512-0514 is assigned to the following sections in this part: §§ 17.147 and 17.182.

$17.5 Products manufactured in Puerto Rico or the Virgin Islands.

For additional provisions regarding drawback on distilled spirits contained in medicines, medicinal preparations, food products, flavors, flavoring extracts, or perfume which are unfit for beverage purposes and which are brought into the United States from Puerto Rico or the U.S. Virgin Islands, see part 250, subparts I and Ob, of this chapter.

$17.6 Signature authority.

No claim, bond, tax return, or other required document executed by a person as an agent or representative is acceptable unless a power of attorney or other proper notification of signature authority has been filed with the ATF office where the required document must be filed. The appropriate ATF officer with whom the claim or other required document is filed may, when he or she considers it necessary, require additional evidence of the authority of the agent or representative to execute the document. Except as otherwise provided by this part, powers of attorney shall be filed on ATF Form 1534 (5000.8), Power of Attorney. Notification of signature authority of partners, officers, or employees may be given by filing a copy of corporate or partnership documents, minutes of a meeting of the board of directors, etc. For corporate officers or employees, ATF Form 5100.1, Signing Authority for Corporate Offi

cials, may be used. For additional provisions regarding powers of attorney, see § 17.105 and 26 CFR part 601, subpart E.

$17.7 Delegations of the Director.

The regulatory authorities of the Director contained in this part 17 are delegated to appropriate ATF officers. These ATF officers are specified in ATF Order 1130.13, Delegation OrderDelegation of the Director's Authorities in 27 CFR parts 17 and 18. ATF delegation orders, such as ATF Order 1130.13, are available to any interested person by mailing a request to the ATF Distribution Center, P.O. Box 5950, Springfield, VA 22150-5190, or by accessing the ATF web site (http:// www.atf.treas.gov/).

[T.D. ATF-436, 66 FR 5470, Jan. 19, 2001]

As used in this part, unless the context otherwise requires, terms have the meanings given in this section. Words in the plural form include the singular, and vice versa, and words indicating the masculine gender include the feminine. The terms "includes" and "including" do not exclude things not listed which are in the same general class.

Appropriate ATF Officer. An officer or employee of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions relating to the administration or enforcement of this part by ATF Order 1130.13, Delegation Order-Delegation of the Director's Authorities in 27 CFR Parts 17 and 18.

Approved, or approved for drawback. When used with reference to products and their formulas, this term means that drawback may be claimed on eligible spirits used in such products in accordance with this part.

CFR. The Code of Federal Regulations.

Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the Department of Treasury, Washington, DC 20226.

Distilled spirits, or spirits. That substance known as ethyl alcohol, ethanol, spirits, or spirits of wine in any