§ 198.56 Statement of capacity. The statement of the capacity of the plant in the application, Form 27-G, shall set forth the kind, by name of fruit, of processing materials to be used, the maximum quantity of each kind of processing material that will be processed in 24 hours, the maximum quantity of concentrates (in wine gallons) that will be produced in 24 hours, and, as to each kind, the minimum and maximum folds to which the volatile fruit-flavors will be concentrated, and the maximum percent of alcohol that will be contained in the concentrates. § 198.57 Registry of stills. Any stills set up on concentrate plant premises and intended to be used in the production of concentrates shall be registered with the assistant regional commissioner of the region in which located. The listing of stills for production of concentrates in the application, Form 27-G, and the approval of the application shall constitute registration of such stills: Provided, That stills set up and registered under regulations in effect prior to the effective date of these regulations shall not be required to be reregistered because of the provisions of this section. § 198.58 PLATS AND FLOW PLANS General requirements. The proprietor shall submit with his application, Form 27-G, a plat of the premises, and flow plans, in triplicate in conformity with the requirements of this subpart. § 198.59 Preparation. Every plat shall be drawn to scale and shall show the cardinal points of the compass. Each plat, and flow plan shall bear a distinctive title, and the complete name and address of the proprietor, enabling ready identification. Each sheet of the drawings shall be numbered, the first being designated number "1", and the other sheets numbered in consecutive order. The dimensions of the drawings shall be 15" x 20", outside measurement, with a clear margin of at least 1'' on each side: Provided, That the assistant regional commissioner may authority the use of larger sheets if they can be satisfactorily filed. The drawings shall be submitted on sheets of good quality white paper, tracing cloth, opaque cloth, sensitized linen, or blueprint paper, and may be original drawings, or, if clear and distinct, reproductions made by lithoprint, ditto, or ozalid processes. The Director may approve other materials and methods which he finds are equally acceptable. § 198.60 Depiction of premises. The plat shall show the outer boundaries of the concentrate plant premises in feet and inches, in a color contracting with those used for other drawings on the plat, and shall contain an accurate depiction of the building or buildings comprising such premises. The depiction of such premises should agree with the description in the application, Form 27-G. If two or more buildings are to be used, they shall be shown in their relative positions, and the designated name or use of each shall be indicated. All exterior doors on the first floor of each biulding shall be shown on the plat. If the concentrate plant consists of less than an entire building, the plat shall show the building, the location of the concentrate plant within the building, and the means of ingress from and egress to a public street or yard. Where premises on which distilled spirits, wines, beer, or other liquors are manufactured or produced, stored, used, or sold, are contiguous to the concentrate plant, the plat sholl show the relative location of the concentrate plant and such contiguous premises, and all pipelines and other connectors, if any, between them (public utility pipelines and similar connections excepted), and the distance they are from each other. The outlines of such contiguous premises and the concentrate plant shall be shown in contrasting colors. § 198.61 Flow plans. Flow plans shall be submitted reflecting the production process and shall show major equipment (identified as to use) in its relative operating sequence, with essential connecting pipelines and valves. Minor equipment (such as pumps, pressure regulators, or rotometers) need not be shown. The direction of flow through the equipment and pipelines shall be indicated by arrows. § 198.62 Certificate of accuracy. The plat and plans shall bear a certificate of accuracy in the lower right Any revised plat or plan shall bear the same number as the sheet superseded, but will be given a new date. Any additional plat or plan sheet shall be given a new number in consecutive order, or will be otherwise numbered and lettered in such manner as will permit the filing of the plat or plan in proper sequence. CHANGES AFTER ORIGINAL ESTABLISHMENT § 198.64 General requirements. Where there is a change with respect to the information shown in the application, Form 27-G, the proprietor shall (except as otherwise provided in this subpart) submit, within 10 days of such change, an amended application on Form 27-G. Such application may be executed in skeleton form. Items which are correctly set forth in prior applications and remain unchanged may be incorporated in the amended application by reference to the respective application previously filed in which the item is fully and correctly set forth. Such incorporation by reference shall be made by entering for such item in the space provided therefor the statement "No change since filing Form 27-G, Ser. No. (insert serial number)." (72 Stat. 1392; 26 U.S.C. 5511) § 198.65 Change in name of proprietor. Where there is to be a change in the individual, firm, or corporate name, the proprietor shall file an amended application, Form 27-G; a new bond or consent of surety will not be required. Operations shall not be conducted under the new name prior to approval of the amended application. § 198.66 Change in proprietorship. (a) General. Where there is a change in the proprietorship of a concentrate plant, the outgoing proprietor shall comply with the requirements of § 198.73, and the successor shall, before commencing operations, file the required bond, and file application on Form 27-G and receive approval thereof in the same manner as a person qualifying as the proprietor of a new concentrate plant, except that he may adopt the plats and plans of the predecessor as provided in § 198.67. Materials, concentrates, and flashed mash or juice may be transferred from an outgoing proprietor to a successor. (b) Fiduciary. If the successor to the proprietorship of a concentrate plant is an administrator, executor, receiver, trustee, assignee, or other fiduciary, he shall comply with the provisions of paragraph (a) of this section except that he may, in lieu of filing a new bond, furnish consent of surety extending the terms of his predecessor's bond, and he may also incorporate by reference in his application on Form 27-G any pertinent information contained in his predecessor's approved application. The fiduciary shall furnish a certified copy of the order of the court or other pertinent document showing his qualification as such fiduciary. If the fiduciary was appointed by a court, the effective dates of the qualifying documents filed by the fiduciary shall be the effective date of the court order, or the date specified therein for him to assume control. If the fiduciary was not appointed by a court, the date of his assuming control shall coincide with the effective date of the qualifying documents filed by him. (c) Corporation. The sale or transfer of the capital stock of a corporation operating a concentrate plant does not constitute a change in the proprietorship of such plant. However, where the sale or transfer of capital stock results in a change in the control or management of the business, or where there is a change in the officers or directors, the proprietor, within 10 days, shall give written notice thereof, in triplicate, to the assistant regional commissioner. A change in stockholders of corporations not constituting a change in control need not be so reported. § 198.67 Adoption of plat and plans. The adoption by a successor of the plat and plans of a predecessor shall be in the form of a certificate to be submitted with the application, Form 27-G, in which shall be set forth the identity of the concentrate plant and the predecessor, and a description (by sheet number and title) of each plat and plan sheet adopted, and a certification that the adopted plat and plans accurately depict the premises. § 198.68 Continuing partnerships. Where, under the laws of the particular State, the partnership is not terminated on death or insolvency of a partner, but continues until the winding up of the partnership affairs is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, such surviving partner may continue to operate the plant under the prior qualification of the partnership, provided a consent of surety, wherein the surety and the surviving partner agree to remain liable on the bond given on Form 1694, is filed. If such surviving partner acquires the business on completion of the settlement of the partnership, he shall qualify in his own name from the date of acquisition, as provided in § 198.66(a). The rule set forth in this section shall also apply where there is more than one surviving partner. § 198.69 Change in location. Where there is a change in the location of a concentrate plant, the proprietor shall file an amended application, Form 27-G, new plat and plans, and either a new bond or a consent of surety on Form 1533. Operation of the concentrate plant may not be commenced at the new location prior to approval of the amended application, the new plat and plans, and the new bond or the consent of surety. § 198.70 Changes in equipment. Where changes are to be made in the distilling apparatus and equipment, which changes would affect the accuracy of the application and the plat and plans, the proprietor shall first secure approval thereof by the assistant regional commissioner pursuant to application, in duplicate, setting forth specifically the proposed changes: Provided, That emergency repairs may be made without prior approval of the assistant regional commissioner. Where such emergency repairs are made, the proprietor shall file immediately a report thereof, in duplicate, with the assistant regional commissioner. Changes made under this section shall be reflected in the next amendment of the applica tion, Form 27-G, and in the next revision of the plat and plans unless the assistant regional commissioner requires the immediate filing of such documents. § 198.71 Change in process. Before a proprietor makes any change in his process of manufacture which would affect the accuracy of the statement of process required by § 198.52, he shall file an amended application, Form 27-G, to include the amended or new statement of process and the new or amended process may not be used prior to approval of the amended application. § 198.72 Suspension and resumption of operations. Any proprietor desiring to suspend operations for a period of 30 days or more shall give written notice to the assistant regional commissioner of the date operations are to be suspended and the approximate date operations are to be resumed. Where the proprietor wishes to resume operations at an earlier date than stated, he shall give written notice to the assistant regional commissioner to that effect at least 10 days before operations are to be resumed. § 198.73 Notice of permanent discontinuance. Where the proprietor permanently discontinues the business of a concentrate manufacturer, he shall, after completion of his operations, file a Form 27-G to cover such discontinuance, giving the date of the discontinuance. Subpart F-Bonds and Consents of Surety § 198.81 Bond, Form 1694. Every person intending to commence the business of manufacturing concentrates shall file bond, Form 1694, with the assistant regional commissioner at the time of filing his original application, Form 27-G, and at such other times as are required by this subpart. Such bond shall be conditioned that each such person shall fully and faithfully comply with all of the requirements of the law and regulations relating to the manufacture, removal, sale, transportation, or use of any concentrate (or any fruit mash or juice from which such concentrate is produced) and shall pay or cause to be paid, all taxes, together with penalties and interest, on all such concentrates or any other alcoholic products manufactured, removed, sold, transported, or used by him contrary to law or regulations. No person shall commence or continue the business of manufacturing concentrates until such bond has been approved by the assistant regional commissioner. The penal sum of bond, Form 1694, shall be $5,000: Provided, That where it is the opinion of the assistant regional commissioner that an additional bond should be required for the protection of the revenue, because of the magnitude of the proposed operations, or for other good reason, he may require an additional bond not to exceed $20,000. (72 Stat. 1392; 26 U.S.C. 5511) § 198.82 Corporate surety. Surety bonds required by this part may be given only with corporate sureties holding certificates of authority from, and subject to the limitations prescribed by, the Secretary of the Treasury as set forth in the current revison of Treasury Department Circular 570. (61, Stat. 648; 6 U.S.C. 6, 7) 31 F.R. 11975, Sept. 13, 1966] [T.D. 6895, § 198.82a Filing of powers of attorney. Each bond, and each consent to changes in the terms of a bond, shall be accompanied by a power of attorney authorizing the agent or officer who executed the bond or consent to so act on behalf of the surety. The assistant regional commissioner who is authorized to approve the bond, may, when he deems it necessary, require additional evidence of the authority of the agent or officer to execute the bond or consent. (61 Stat. 648; 6 U.S.C. 6, 7) [T.D. 6895, 31 F.R. 11975, Sept. 13, 1966] The power of attorney shall be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed original, it shall be accompanied by certification of its validity. (61 Stat. 648; 6 U.S.C. 6, 7) [T.D. 6895, 31 F.R. 11975, Sept. 13, 1966] § 198.83 Deposit of securities in lieu of corporate surety. In lieu of corporate surety, the principal may pledge and deposit, as surety for his bond, securities which are transferable and are guaranteed as to both inter est and principal by the United States, in accordance with the provisions of 31 CFR Part 225. (61 Stat. 650; 6 U.S.C. 15) § 198.84 Consents of surety. Consents of surety to changes in the terms of bonds shall be executed on Form 1533 by the principal and by the surety with the same formality and proof of authority as is required for the execution of bonds. § 198.85 Strengthening bonds. In any case where the assistant regional commissioner determines under the provisions of § 198.81 that an additional bond should be required, the principal shall either give a strengthening bond with the same surety to attain the penal sum set by the assistant regional commissioner, or give a new bond to cover the entire liability. Strengthening bonds will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of any bond to less than its full penal sum. Strengthening bonds shall show the current date of execution and the effective date. § 198.86 New bond. A new bond shall be required in the case of the insolvency or removal of any surety, and may, at the discretion of the assistant regional commissioner, be required in any other contingency affecting the validity or impairing the efficiency of bond given on Form 1694. Where, under the provisions of § 198.88, the surety on a bond, on Form 1694, has filled application to be relieved of liability under such bond and the principal desires to continue the business of a concentrate manufacturer, he shall file a valid superseding bond to be effective on or before the date specified in the surety's notice. Where a new bond is submitted to supersede a bond or bonds in effect, the new bond shall show the current date of execution and the effective date. If a new bond is not filed when required the principal shall discontinue forthwith operations at his concentrate plant. TERMINATION OF BONDS § 198.87 Termination of bond. A bond, Form 1694, may be terminated by the assistant regional commissioner as to future liability pursuant to (a) application by the surety as provided in A surety on any bond required by this part may at any time, in writing, notify the principal and the assistant regional commissioner in whose office the bond is on file that he desires, after a date named, to be relieved of liability under such bond. Such date shall be not less than 60 days after the date the notice is received by the assistant regional commissioner. The notice shall be executed in triplicate by the surety, who shall deliver one copy to the principal and two copies to the assistant regional commissioner. The surety shall also file with the assistant regional commissioner an acknowledgment or other proof of service of such notice on the principal. Unless the notice is withdrawn in writing before such date, the rights of the principal as supported by such bond shall be terminated on the date named in the notice, and the surety shall be relieved from liability to the extent set forth in § 198.89. § 198.89 Relief of surety from bond. Where the surety has filed application for relief from liability, as provided in § 198.88, and a new or superseding bond has been filed, the surety shall be relieved of liability arising from acts occurring wholly on or subsequent to the effective date of the new or superseding bond. If the concentrate manufacturer files a valid superseding bond on Form 1694 prior to the date named in the surety's notice, the surety shall also be relieved from liability for concentrate and fruit mash or juice on hand at the concentrate plant on such date. If the principal fails to file a superseding bond, the surety, notwithstanding his release from liability as specified above, shall continue to remain liable under the bond for all concentrates and fruit mash or juice on hand at the concentrate plant on such date, until such concentrate and mash or juice have been lawfully disposed of or a new bond has been filed by the principal covering the same. § 198.90 Release of pledged securities. Securities of the United States pledged and deposited as provided in § 198.83 shall be released only in accordance with the provisions of 31 CFR Part 225. Such securities will not be released by the assistant regional commissioner Subpart G-Construction and § 198.101 The concentrate plant and equipment shall be SO constructed, arranged, equipped, and protected as to afford adequate protection to the revenue and facilitate inspection by internal revenue officers. § 198.102 Means of ingress and egress. The proprietor shall make provisions to assure that internal revenue officers have ready ingress to, and egress from, the concentrate plant at any time, and furnish, on request, evidence satisfactory to the assistant regional commissioner that such ingress and egress are assured. (72 Stat. 1357; 26 U.SC. 5203) § 198.103 Identification of apparatus and equipment. Each tank or receptacle for concentrate, processing material, or flashed mash or juice shall be marked to show its serial number, capacity, and use. Each still, separator, evaporator, and condenser shall be numbered and marked to show its use. All other major equipment used for manufacturing concentrates shall be identified as to use unless the intended use thereof is readily apparent. Subpart H-Operations |