# Liquor Dealer Recordkeeping and Registration, and Repeal of Certain Special (Occupational) Taxes > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3AE9-17177 ## Record - **Collection:** Federal Register - **Document type:** Rule - **Published:** July 28, 2009 - **Citation:** 74 FR 37394 ## Text DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Parts 17, 19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 46, and 70 [Docket No. TTB-2009-0003; T.D. TTB-79; Re: Notice No. 96] RIN 1513-AB63 Liquor Dealer Recordkeeping and Registration, and Repeal of Certain Special (Occupational) Taxes AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Temporary rule; Treasury decision. SUMMARY: This temporary rule amends the regulations administered by the Alcohol and Tobacco Tax and Trade Bureau, to reflect the repeal of certain special (occupational) taxes by section 11125 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. The repeal involves such taxes on alcohol beverage producers and dealers, tax-free alcohol users, denatured spirits users and dealers, and persons claiming drawback for the manufacture of nonbeverage alcoholic products. In place of the special (occupational) tax requirement, the amended law requires recordkeeping and registration by dealers in distilled spirits, wines, and beer, and by manufacturers of nonbeverage products who claim drawback. We also are soliciting comments from all interested parties on these regulatory amendments through a notice of proposed rulemaking published elsewhere in this issue of the Federal Register . DATES: Effective Dates: This temporary rule is effective July 28, 2009 through July 30, 2012. FOR FURTHER INFORMATION CONTACT: For questions concerning registration or occupational tax filing procedures, contact Jackie Feinauer, National Revenue Center, Alcohol and Tobacco Tax and Trade Bureau (800-937-8864); for other questions concerning this document, contact Steve Simon, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau (202-453-2164). SUPPLEMENTARY INFORMATION: Background On August 10, 2005, the President signed into law the “Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users,” Public Law 109-59, 119 Stat. 1953 (the Act). Section 11125 of the Act amended certain provisions of the Internal Revenue Code of 1986 (IRC) (26 U.S.C.) to repeal, effective July 1, 2008, the provisions covering special (occupational) taxes (also referred to in this document as SOT or special taxes) on: • Producers and dealers of alcohol beverages, • Manufacturers of nonbeverage products, • Users of tax-free alcohol, and • Users and dealers of specially denatured spirits. Although section 11125 repealed the tax for these occupations, it did not remove the recordkeeping and registration requirements for dealers in alcohol beverages and for manufacturers of nonbeverage products. Under section 11125, all persons who sell distilled spirits, wine, or beer are dealers. As explained below, this covers only those dealers who sell alcohol products fit for beverage use. The IRC chapter 51 and 52 provisions referred to above, and the regulations promulgated thereunder and contained in title 27 of the Code of Federal Regulations, are administered by the Alcohol and Tobacco Tax and Trade Bureau (TTB). In order to remove the special (occupational) taxes on producers and marketers of alcohol beverages, paragraph (a) of section 11125 repealed the following subparts and sections of IRC chapter 51, subchapter A, part II: • Subpart A relating to proprietors of distilled spirits plants, bonded wine cellars, etc. (26 U.S.C. 5081); • Subpart B relating to brewers (26 U.S.C. 5091-5093); • Subpart D relating to wholesale dealers, except for sections 5114 and 5116 (26 U.S.C. 5111-5113 and 5117); • Subpart E relating to retail dealers, except for section 5124 (26 U.S.C. 5121-5123 and 5125); and • Subpart G relating to general provisions, except for sections 5142, 5143, 5145, and 5146 (26 U.S.C. 5141 and 5147-5149). Section 11125(a) also did away with the special (occupational) tax on nonbeverage drawback claimants by removing from 26 U.S.C. 5131 the reference to annual payment of a special tax. Finally, section 11125(a) did away with the special (occupational) tax on industrial use of distilled spirits by repealing 26 U.S.C. 5276. Paragraph (b) of section 11125 made a number of conforming amendments to IRC chapter 51, subchapter A, part II. These amendments involved: • Redesignating subpart C as subpart A; • Redesignating subpart F as subpart B (with sections 5131 through 5134 redesignated as sections 5111 through 5114); • Removing the special tax rate provision from redesignated section 5111; and • Adding new subparts C (containing new sections 5121 through 5124) and D (containing new sections 5131 and 5132). Note: A technical error in the designation of section 5121 was corrected by section 11(a)(31) of the Tax Technical Corrections Act of 2007 (Pub. L. 110-172, 121 Stat. 2487). New sections 5121, 5122, and 5123 were obtained by redesignating sections 5114, 5124, and 5146, respectively. The text of former section 5112 is included in new section 5121, and the text of former section 5122 is included in new section 5122. New section 5124, titled “Registration by Dealers,” is patterned after existing section 7011(a). New section 5131 was obtained by redesignating section 5116, and new section 5132 contains, with a change, the text of former section 5117. Paragraph (b) of section 11125 made additional conforming amendments elsewhere in the IRC, of which we note the following: • Chapter 51, subchapter J, part V (section 5691) was repealed (although the terms of section 5691(b) were included in new section 5121(c)(4)); and • Sections 5142, 5143, and 5145 were redesignated as sections 5732, 5733, and 5734 in subchapter D of chapter 52, relating to the special tax on tobacco occupations, which remains in effect. Temporary Rule Based on the July 1, 2008, effective date of the repeal of certain special (occupational) taxes, as described above, TTB believes that the proper administration of the repeal and the related changes to recordkeeping and registration requirements necessitates immediate adoption of the implementing regulations as a temporary rule. Public Participation To submit comments on the regulatory amendments contained in this temporary rule, please refer to the related notice of proposed rulemaking on this subject published elsewhere in this issue of the Federal Register . Basic Interpretative Considerations Based on a careful reading of the amendments set out in section 11125 of the Act and resulting statutory language, TTB has applied the following considerations in preparing the regulatory changes to title 27 of the Code of Federal Regulations (27 CFR) set forth in this document: 1. Application . Consistent with the Government's longstanding interpretation of the IRC, liquor dealer recordkeeping and registration requirements apply only to dealers in alcohol fit for beverage use. See, e.g. , 26 CFR 194.21 (1960 ed.). “Alcohol fit for beverage use” not only includes alcohol beverages but also includes alcoholic products for industrial use, unless the products are unfit for beverage use. 2. Frequency of registration . SOT for dealers was an annual tax, and filing of the return and registration was required by regulation on an annual basis. However, the IRC does not, and never did, require annual dealer registration, only that such dealers must “register with the Secretary.” We see no reason to continue the annual filing requirement in the absence of annual collection of a tax. Instead, the regulatory changes in this document lessen the dealers' burden by requiring registration upon entering business as a dealer, with subsequent registrations required only for reporting changes in certain information and upon termination of business. On the other hand, Manufacturer of Nonbeverage Products (MNBP) drawback claimant registration is required annually because of the wording of 26 U.S.C. 5112. For persons filing MNBP drawback claims under the IRC, the first claim for the calendar year will satisfy the registration requirement if the claim contains the required registration information; subsequent claims with updated information will be considered amended registrations. 3. Registration of proprietors of distilled spirits plants, bonded wine cellars, etc . Since the definition of “dealer” in new section 5121(c)(4) of the IRC refers to “any person who sells, or offers for sale, any distilled spirits, wines, or beer,” the requirements for recordkeeping and registration by dealers will also apply to proprietors of distilled spirits plants, bonded wine premises, taxpaid wine bottling houses, and breweries, if those proprietors sell their products or offer them for sale. Although these persons previously were generally exempted by 26 U.S.C. 5113 from the registration requirements applicable to liquor and beer dealers, this situation changed when section 11125 of the Act repealed section 5113 of the IRC and thereby deleted the exemption under section 5113. In order to minimize the resulting regulatory burden, TTB has determined that proprietors of distilled spirits plants, bonded wine premises, and taxpaid wine bottling houses who have qualified under the IRC, and brewers who hold approved brewers' notices under the IRC, will be deemed to have registered as dealers. In other words, the qualification and brewer's notice will serve as the registration required by section 11125. As part of the qualification or notice process, the proprietor must file and maintain in a current status all the information required for dealer registration under section 11125. Required notices of changes to the information required for IRC qualification or the brewer's notice will be considered as amendments to the dealer registration, and notice that the proprietor is going out of business will terminate the dealer registration as well. 4. Proprietors will be registered as wholesale liquor dealers . Proprietors of distilled spirits plants, bonded wine premises, and taxpaid wine bottling houses qualified under the IRC, and brewers who hold approved brewers notices under the IRC, will be treated as wholesale liquor dealers for registration purposes. This will allow the proprietor to sell distilled spirits, wine or beer at wholesale or retail from the covered location. For proprietors who have retail operations such as taverns on brewery premises, or who run wholesale or import operations from their premises and sell alcohol beverages other than the ones they produce, this interpretation will give maximum registration flexibility. Because industrial distilled spirits plants are qualified under the IRC, they will be considered as having registered as a wholesale liquor dealer for sales of undenatured alcohol. Even though a proprietor who makes no sales of alcohol fit for beverage use is not required to register, we believe this approach imposes the least overall burden. Since there is no cost to the proprietor, there is no reason to make a distinction in the registration. 5. Persons who must register on Form 5630.5d . Persons required to hold a basic permit under the Federal Alcohol Administration (FAA) Act as wholesalers or importers are considered dealers under section 11125, and so must file a registration on Form 5630.5d, as must retail dealers. This registration will remain in effect as long as the required information remains the same. Changes must be reported by filing of an amended Form 5630.5d if any of the required information changes, and the registrations must be terminated when covered operations cease. States, localities, and the District of Columbia are required to register only once as a wholesaler and once as a retailer in order to cover all operations within the jurisdiction in question. 6. Records . Required records for wholesale and retail liquor and beer dealers are specified in 27 CFR part 31 and are not significantly changed by this document. Breweries and proprietors of distilled spirits plants, bonded wine premises, and taxpaid wine bottling houses, who keep required records under the applicable IRC regulations, need not generate additional records as dealers for the same transactions. 7. Transition to new rules . For persons who were required to register and report changes on TTB Form 5630.5 during the SOT suspension period (July 1, 2005, through June 30, 2008), any registration filed after January 1, 2007, will constitute a valid registration required on or after July 1, 2008, and will continue in effect until the required registration information changes or operations are terminated. Therefore, such existing registrants will not have to re-register to comply with the new registration requirements. However, existing businesses that have not registered on or after January 1, 2007, must file a one-time registration on or before July 1, 2009, using TTB Form 5630.5d. The reasons for these dates are as follows: (1) Technically, the last registration required under the regulations for the 3-year SOT suspension was due on or before July 1, 2007. Most registrants would probably have filed before the deadline, but few, if any, would have filed before January 1, 2007; and (2) since this document was not published before July 1, 2008, the first registration under these new regulations—except for new businesses—will be due July 1, 2009. This transition rule applies to alcohol beverage dealers, breweries, and proprietors of distilled spirits plants, bonded wine premises, and taxpaid wine bottling houses, but not to MNBP drawback claimants. As noted above, MNBPs will be considered registered when they file the first claim for each year. 8. Effective date . The amendments made by section 11125 were effective on July 1, 2008. However, these regulations take effect on the date of their publication in the Federal Register . For the period between July 1, 2008, and the effective date of the temporary regulations, TTB will not apply or enforce any regulatory provision that is clearly inconsistent with current law, since statutory provisions always take precedence over conflicting regulations. On the other hand, any regulations that are not in conflict with current law (for example, the prior recordkeeping requirements) would remain in effect until superseded by the new temporary regulations. Further, section 11125 specifies, in paragraph (c), that its amendments “shall not apply to taxes imposed for periods before such date [July 1, 2008].” Therefore, persons who failed to pay special (occupational) tax when it was in force are not excused from their prior liability by the repeal of this tax. 9. Employer identification number . Section 6109(a)(1) of the IRC (26 U.S.C. 6109(a)(1)) states: “Any person required under the authority of this title to make a return, statement, or other document shall include in such return, statement, or other document such identifying number as may be prescribed for securing proper identification of such person.” In accordance with this provision and subsection (d) of section 6109, the regulations promulgated by this document require inclusion of the employer identification number (EIN) on registrations for alcohol dealers and manufacturers of nonbeverage products. This requirement is unchanged from prior regulations. Section 6723 of the IRC imposes a penalty of $50 for each “failure by any person to comply with a specified information reporting requirement on or before the time prescribed therefor.” The definition of “specified information reporting requirement” in 26 U.S.C. 6724(d)(3) includes “any requirement contained in the regulations prescribed under section 6109 that a person—(i) include his TIN [taxpayer identification number; see 26 U.S.C. 7701(a)(41)] on any return, statement, or other document * * *.” The requirement, imposed by these regulations, to include the EIN on the registration is such an information reporting requirement. Because a person who does not submit a registration has failed to include his EIN on the registration, as required, the $50 penalty of 26 U.S.C. 6723 applies. Per 26 U.S.C. 6724(a), this penalty is not imposed when there is reasonable cause for the failure. These principles are reflected in the new temporary regulations at 27 CFR 31.14. 10. Confidentiality of registration information . Because registration is required under new section 5112 or 5124 of the IRC, the submitted information is subject to the confidentiality and disclosure requirements of section 6103 of the IRC, even though most alcohol beverage dealers are no longer TTB taxpayers. Accordingly, such registration is held to be an “information return” within the intent of 26 U.S.C. 6103. This holding is reflected in the new temporary regulations at 27 CFR 31.15, set forth below. 11. Tobacco . Section 11125 did not repeal the special (occupational) tax on any tobacco occupations; therefore, manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and tobacco export warehouse proprietors must continue to register and pay the special (occupational) tax every year. Discussion of Specific Regulatory Changes Part 17—Drawback on Taxpaid Distilled Spirits Used in Manufacturing Nonbeverage Products The regulations in 27 CFR part 17 govern claims for drawback on taxpaid distilled spirits that are used in manufacturing nonbeverage products. Several subparts and sections within part 17 are amended in this document to conform with the changes made by section 11125 of the Act. Subpart C Revised . Subpart C has been substantially amended by removing all sections relating to special tax and redesignating the subpart as “Subpart C—Registration”. As noted above, effective July 1, 2008, IRC section 5132 was redesignated as section 5112. As redesignated, this section continues to require that every person who claims drawback for the manufacture of nonbeverage products must register annually as a nonbeverage domestic drawback claimant. Section 5112 does not specify either how registration will be accomplished or the items of information that must be provided as part of the registration process. However, as discussed above, TTB has decided that registration will be accomplished when the claimant submits a claim for drawback along with the supporting information that must be submitted with the claim. Thus, the filing of the claim will satisfy the requirement to register. The revised subpart now includes a new § 17.21 that explains this registration of nonbeverage drawback claimants. The revised subpart also contains two new sections (§§ 17.22 and 17.23) relating to the use of, and application for, the employer identification number. Subpart D Removed . Subpart D—Special Tax Stamps, consisting of §§ 17.51 through 17.93 and covering the issuance of special tax stamps, their subsequent amendment, and refunds of special tax, has been removed and reserved. Location of Records and Recovery Operations . Several sections relating to records (§§ 17.161, 17.168, and 17.171) have been amended to delete references to the premises covered by the special tax stamp. Miscellaneous Amendments . In addition to the above amendments, TTB has made several minor amendments to the regulations in part 17 by removing references to special tax within various sections. We also amended several legal citations within the regulations to reflect the redesignation of certain sections of law effective July 1, 2008. Finally, § 17.4 is revised to reflect the OMB control numbers that were assigned when the Alcohol and Tobacco Tax and Trade Bureau was created and to remove references to sections that have been removed from part 17. Part 19—Distilled Spirits Plants The regulations in 27 CFR part 19 govern operations at distilled spirits plants. Several subparts and sections within part 19 have been revised or otherwise amended. Subpart Ca—Dealer Registration . Subpart Ca has been revised in order to remove all references to special tax, and the subpart heading has been revised to read “Dealer Registration and Recordkeeping”. Effective July 1, 2008, every proprietor of a distilled spirits plant who sells or offers for sale any distilled spirits, wines, or beer must register as a dealer. As noted above, TTB has determined that proprietors who have registered the distilled spirits plant under the qualification provisions of part 19 will be deemed to have registered as wholesale liquor dealers at the distilled spirits plant premises. The revised subpart Ca includes a new § 19.50 which explains the registration process for proprietors. In addition, the revised subpart contains a new section on amending the registration (§ 19.51) and a new section on dealer records (§ 19.52). Dealer Recordkeeping . Although distilled spirits plants proprietors who sell, or offer for sale, distilled spirits fit for beverage use will be subject to the recordkeeping requirements of 26 U.S.C. 5121, new § 19.52 provides that the records required by subpart W of part 19 will satisfy those requirements, except where the distilled spirits plant engages in dealer operations not already covered by the recordkeeping requirements of part 19. Alcohol Fuel Plants . In general, alcohol fuel plants would not be subject to the requirements applicable to alcohol beverage dealers, because they generally do not produce and sell alcohol fit for beverage use. However, an alcohol fuel plant that sells distilled spirits that have not been rendered unfit for beverage use (for transfer in bond to a distilled spirits plant or another alcohol fuel plant) would meet the definition of a “dealer.” Therefore, § 19.906 is revised to clarify that such an alcohol fuel plant is subject to the provisions of revised subpart Ca. Miscellaneous Amendments . In addition to the above amendments, TTB has made several minor amendments to the regulations in part 19 to remove references to special tax in various sections. We also amended several legal citations within the regulations to reflect the redesignation of certain sections of law that went into effect on July 1, 2008. For example, a reference to “26 U.S.C. 5131-5134” in the definition of “alcoholic flavoring material” of § 19.11 has been replaced with a reference to “26 U.S.C. 5111-5114”. Part 20—Distribution and Use of Denatured Alcohol and Rum The regulations in 27 CFR part 20 govern the distribution and use of denatured alcohol and rum. Effective July 1, 2008, section 11125(a)(3) of the Act repealed 26 U.S.C. 5276, which imposed a special tax on dealers and users of denatured alcohol and rum. Accordingly, in part 20, subpart Ca—Special (Occupational) Taxes has been removed and reserved. TTB also notes in this regard that dealers and users of denatured alcohol and rum who operate within the requirements of the law and regulations, selling denatured products for nonbeverage purposes only, are not considered to be “dealers” under the IRC and therefore will not be required to register as such. Part 22—Distribution and Use of Tax-Free Alcohol The regulations in 27 CFR part 22 govern the distribution and use of tax-free alcohol. As in the case of part 20 discussed above, the repeal of 26 U.S.C. 5276, which imposed a special tax on users of tax-free alcohol, necessitates the removal from part 22 of subpart Ca—Special (Occupational) Taxes. Similarly, users of tax-free alcohol are generally not considered to be “dealers” under the IRC and therefore will not be required to register as such. However, this document also amends § 22.102 to provide that any person who sells tax-free alcohol will become a dealer and therefore will be subject to the provisions of part 31 (since tax-free alcohol is fit for beverage use). Part 24—Wine The regulations in 27 CFR part 24 govern operations at bonded wine premises and taxpaid wine bottling houses. Dealer Registration . As a result of the changes to the IRC made by section 11125 of the Act, effective July 1, 2008, every proprietor of bonded wine premises and every proprietor of a taxpaid wine bottling house who sells or offers for sale any distilled spirits, wines, or beer must register as a dealer. As noted above, TTB has determined that proprietors who have qualified as a bonded wine premises or taxpaid wine bottling house under part 24 will be deemed to have registered as a wholesale liquor dealer at those premises. Section 24.52 is revised to explain the registration process for these proprietors. Dealer Recordkeeping . Although proprietors of wine premises who sell beverage wine (or who offer it for sale) will be subject to the recordkeeping requirements of 26 U.S.C. 5121, § 24.54 is revised to provide that the records required by subpart O of part 24 will satisfy these requirements, except where the bonded wine cellar or taxpaid wine bottling house engages in dealer operations not covered by the recordkeeping requirements of part 24. Miscellaneous Amendments to Part 24 . Several sections in part 24 relating to special tax have been removed. In addition, several sections have been amended by removing all reference to special tax and by replacing those references, where appropriate, with provisions covering the registration of proprietors as dealers. TTB notes that with regard to § 24.146, which covers bonds, although the specific reference to special tax is removed, bonds will still cover liability for unpaid special tax that was due prior to the repeal. Finally, § 24.53 is revised to cover amendment of the dealer registration. Part 25—Beer The regulations in 27 CFR part 25 govern operations at breweries. Subpart I and several sections in part 25 have been amended. Subpart I—Dealer Registration . Subpart I has been revised in order to remove all sections relating to special tax, and the subpart heading has been revised to read “Subpart I—Dealer Registration and Recordkeeping.” As a result of the changes to the IRC made by section 11125 of the Act, effective July 1, 2008, every proprietor of a brewery who sells or offers for sale any distilled spirits, wines, or beer must register as a dealer. As noted above, TTB has determined that registration of the brewery premises will be accomplished when the proprietor files a Brewer's Notice, Form 5130.10, and TTB approves the notice. The revised subpart includes § 25.112, which explains the registration process for proprietors. In addition, the revised subpart contains a section on amending the registration (§ 25.113), which provides that amendments to the brewer's notice serve as amended dealer registrations, and a section on dealer records (§ 25.114—see the description of this section immediately below). Dealer Recordkeeping . Although brewers who sell beverage beer (or offer it for sale) will be subject to the recordkeeping requirements of 26 U.S.C. 5121, the records required by subpart U of part 25 provide similar information. Therefore, § 25.114 provides that the records of subpart U will satisfy the requirements of section 5121 of the IRC, except where the brewer engages in dealer operations not covered by the recordkeeping requirements of part 25. Employer Identification Number . Section 25.168, which concerns employer identification numbers, has been amended to revise a cross reference to instructions regarding the application for an employer identification number. Those instructions were formerly in subpart I and addressed the preparation of the special tax return. Since subpart I now deals with dealer registration, those instructions have been removed from that subpart and added as a new § 25.169, and the cross reference in § 25.168 has been revised accordingly. Miscellaneous Amendments . In addition to the above amendments, TTB has made several minor amendments to the part 25 regulations by removing references to special tax in various sections. Part 26—Liquors and Articles From Puerto Rico and the Virgin Islands The regulations in 27 CFR part 26 govern operations of persons bringing alcohol beverages and certain other alcoholic products to the United States from Puerto Rico and the Virgin Islands. These persons include brewers, proprietors of distilled spirits plants and bonded wine cellars, dealers in denatured alcohol, and nonbeverage drawback claimants. Accordingly, several sections in part 26 are affected. Industrial Alcohol . Since the special tax provisions on tax-free alcohol users, and on denatured spirits users and dealers, are repealed, § 26.36 is amended by removing references to that tax, and § 26.47 is removed. Because tax-free alcohol is fit for beverage use, persons shipping such alcohol to the United States for sale are subject to registration as alcohol beverage dealers; however, such registration will be accomplished by obtaining a distilled spirits plant permit and complying with the other requirements of 27 CFR part 19. Section 26.36(b) is amended accordingly. Section 26.46, which relates only to special (occupational) tax on distilled spirits plant proprietors, is removed. Nonbeverage drawback claimant registration. Sections 26.171 and 26.173 (Puerto Rico), and §§ 26.307 and 26.309 (Virgin Islands), are revised or otherwise amended to replace references to the special tax for nonbeverage drawback claimants with a discussion of the new registration requirement for claimants similar to the discussion in part 17 above. Dealer registration. In §§ 26.44 and 26.45 (Puerto Rico) and §§ 26.210 and 26.211 (Virgin Islands), references to the special tax registration and return for alcohol occupations are changed to refer to dealer registration and recordkeeping. Miscellaneous Amendments. We changed a legal citation within the definition of “eligible flavors” and several informational citations to reflect the redesignation of certain sections of law affected by section 11125 of the Act. We made some minor technical amendments in §§ 26.173(a) and 26.309(a) relating to the description of the drawback rate and the procedure for filing drawback claims. In §§ 26.173(c) and 26.309(c), we replaced the requirement for entering the control number on the special tax stamp with a requirement for entering the claimant's employer identification number, since the special tax return (which is no longer filed by these claimants) formerly supplied TTB with that information. Part 27—Importation of Distilled Spirits, Wines, and Beer The regulations in 27 CFR part 27 govern operations of persons importing distilled spirits, wine, and beer into the United States. Several sections of regulations within part 27 have been amended. Dealer registration. In §§ 27.30 and 27.31, references to the special tax registration and return for alcohol occupations are changed to refer to dealer registration. Miscellaneous Amendments. We also changed a legal citation within the definition of “eligible flavors” and several informational citations to reflect the redesignation of certain sections of law affected by section 11125 of the Act. Part 28—Exportation of Alcohol The regulations in 27 CFR part 28 govern operations by persons exporting distilled spirits, wines, and beer to foreign countries and possessions of the United States. Section 28.212, dealing with persons authorized to export wine with benefit of drawback, is revised to replace the reference to payment of special tax as a wholesale liquor dealer with a reference to registration as such a dealer under part 31. Also, the authority citation for part 28 is revised to reflect the repeal or redesignation of certain sections of law by section 11125 of the Act. Part 31—Alcohol Beverage Dealers The regulations in 27 CFR part 31 govern the operations of alcohol beverage dealers. The principal subject matter of part 31 historically has been the special (occupational) tax. The elimination of that tax makes it necessary to revise the entire part. In general, we have attempted in this document to retain as much of the old part 31 as can be adapted to the IRC provisions as amended by section 11125 of the Act. Nevertheless, the new part 31 set forth in this document is significantly shorter. References to the special (occupational) tax are removed, the part is reorganized, conforming changes are made to cross references, and OMB information collection approval numbers are updated. Several new sections are added to clarify producers' status as dealers (§ 31.48), to describe situations where registration is required (§§ 31.137 and 31.138), to clarify liability for special (occupational) tax for periods prior to its elimination (§ 31.234), and to set forth penalty and disclosure provisions (§§ 31.14 and 31.15). In addition, sections concerning preparation of the special tax return are redrafted to cover preparation of the dealer registration form, and sections concerning exemption from dealer's special tax for persons who registered as producers are removed. Sections that formerly clarified liability for special tax have been revised to clarify when persons are considered to be dealers subject to the regulations. Some of these clarifications in part 31 were based on specific statutory exemptions formerly contained in 26 U.S.C. 5113 and 5123. Although these two statutory provisions were repealed by section 11125 of the Act, we will continue to apply those exemptions as administrative interpretations. As noted above, the exemption in repealed section 5113 of the IRC for proprietors of controlled premises (distilled spirits plants, bonded wine cellars, taxpaid wine bottling houses, and breweries) has been retained in effect by allowing qualification documents and records required by part 19, 24, or 25, as applicable, to satisfy the alcohol dealer registration and recordkeeping requirements (§§ 31.48, 31.154). Other exemptions and exceptions in repealed section 5113 that are retained in the revised part 31 texts pertain to: States, political subdivisions, etc. (§§ 31.43, 31.153); creditors, fiduciaries, and officers of court (§§ 31.62(a), (b) and (c)); retiring partners or representatives of deceased partners (§ 31.62(d)); persons returning liquors for credit, refund, or exchange (§ 31.67); dealers making sales on purchaser dealers' premises (§§ 31.52 and 31.53); retail dealers selling in liquidation (§ 31.66); and retail dealers selling to limited retail dealers (§ 31.55(b)). Exemptions and exceptions contained in repealed section 5123 of the IRC that are retained in the revised part 31 texts pertain to: Wholesale dealers making retail sales (§ 31.51); retail dealers “at large” (§ 31.94); dealers on trains, aircraft, or vessels (§§ 31.91 through 31.93); and liquor stores operated by States, political subdivisions, etc. (§§ 31.43, 31.153). The exemption from additional special tax when a wholesale or retail dealer in beer begins to sell other liquors, which was formerly provided for in repealed sections 5113(g) and 5123(c) of the IRC, is not retained in the revised part 31 texts for registration purposes, because section 11125 of the Act requires a dealer to register his or her “trade or business” (see new § 31.75). The table below shows the source of, and extent of the change reflected in, each section in revised part 31: New section Source (action) 31.0 31.1 (P) Subpart A—General Provisions 31.1 31.11 (P) 31.2 31.2 (O) 31.3 31.3 (P) 31.4 31.4 (P) Subpart B—Administrative Provisions 31.11 31.41 (P) 31.12 31.42 (O) 31.13 31.43 (O) 31.14 31.109, 31.111 (C) 31.15 26 U.S.C. 6103 (N) Subpart C—Activities Subject to this Part 31.21 31.21 (P) 31.22 31.22 (O) Dealers Classified 31.31 31.23 (P) 31.32 31.24 (P) 31.33 31.25 (P) 31.34 31.26 (P) 31.35 31.27 (O) 31.36 31.28 (O) Certain Organizations, Agencies, and Persons 31.41 31.29 (P) 31.42 31.30 (P) 31.43 31.31 (P) 31.44 31.32 (P) 31.45 31.33 (P) 31.46 31.34 (P) 31.47 31.35 (P) 31.48 (N) Subpart D—Exemptions and Exceptions Persons Exempt From Registration and/or Recordkeeping 31.51 31.23(c)(1) and 31.25(c)(1) (C) 31.52 31.185 (P) 31.53 31.186 (P) 31.54 31.187 (P) 31.55 31.187a (P) Persons Who Are Not Dealers in Liquors or Beer 31.61 31.181 (C) 31.62 31.188 (P) 31.63 31.189 (P) 31.64 31.190 (P) 31.65 31.191 (P) 31.66 31.192 (O) 31.67 31.193 (P) Subpart E—Places Subject to Registration 31.71 31.51 (P) 31.72 31.52 (O) 31.73 31.53 (P) 31.74 31.54 (P) 31.75 31.72 (C) Sales in Two or More Areas on the Same Premises 31.81 31.57 (P) 31.82 31.58 (P) 31.83 31.59 (P) Sales in Multiple Locations 31.91 31.124 (P) 31.92 31.125 (P) 31.93 31.126 (P) 31.94 31.127 (P) 31.95 31.55 (P) 31.96 31.56 (P) Subpart F—Partnerships 31.101 31.91 (P) 31.102 31.92 (P) 31.103 31.93 (P) 31.104 31.94 (P) Subpart G—Registration Form, TTB F 5630.5d 31.111 31.102 (C) 31.112 31.106(c) (P) 31.113 31.104a (P) 31.114 31.106 (P) 31.115 31.106a (P) 31.116 31.107 (P) Subpart H—Changes in Registration Information Changes Requiring Registration as a New Business 31.121 31.161 (P) 31.122 31.162 (P) 31.123 31.163 (P) 31.124 31.164 (P) 31.125 (N) Other Changes 31.131 31.151 (C) 31.132 31.165 (P) 31.133 31.165 (C) 31.134 31.166 (P) 31.135 31.167 (P) 31.136 31.168 (P) 31.137 (N) 31.138 (N) Subpart I—Restrictions Relating to Purchases of Distilled Spirits 31.141 31.211 (P) Subpart J—Records and Reports Wholesale Dealers' Records and Reports 31.151 31.221 (P) 31.152 31.222 (P) 31.153 31.223 (P) 31.154 31.224 (P) 31.155 31.225 (P) 31.156 31.226 (P) 31.157 31.227 (P) 31.158 31.228 (P) 31.159 31.229 (O) 31.160 31.230 (O) 31.161 31.231 (P) 31.162 31.232 (P) 31.163 31.233 (P) Filing of Wholesale Dealer's Records and Reports 31.171 31.235 (P) 31.172 31.236 (P) Retail Dealer's Records 31.181 31.234 (O) Retention of Records and Files 31.191 31.237 (P) 31.192 31.238 (P) Subpart K—Reuse and Possession of Used Liquor Bottles 31.201 31.261 (N) 31.202 31.262 (P) 31.203 31.263 (N) 31.204 31.264 (P) Subpart L—Packaging of Alcohol for Industrial Uses 31.211 31.271 (P) 31.212 31.272 (O) Subpart M—Distilled Spirits for Export with Benefit of Drawback 31.221 31.281 (P) 31.223 31.283 (P) Subpart N—Miscellaneous 31.231 31.291 (O) 31.232 31.292 (O) 31.233 31.293 (P) 31.234 (N) * Actions: (C) = Complete revision; (N) = New section; (O) = No revision; (P) = Partial revision. Part 40—Manufacture of Tobacco Products and Cigarette Papers and Tubes The regulations in 27 CFR part 40 govern manufacturers of tobacco products and cigarette papers and tubes. Although section 11125 of the Act did not do away with the special tax on tobacco occupations, TTB believes that it would be appropriate to have the special tax provisions applicable to tobacco products and cigarette papers and tubes in one place, similar to the approach taken in revised part 31 for alcohol beverage dealer registration. Accordingly, in this document we have removed and reserved a number of part 40 sections and transferred their contents to a new subpart D in part 46, which contains miscellaneous regulations relating to tobacco products and cigarette papers and tubes. In addition to the transfer of special tax provisions to part 46, this document includes a number of other changes to the part 40 texts. A definition of “special tax” is added to § 40.11 to facilitate its use in the part 40 texts in place of “special (occupational) tax.” Section 40.31 is amended by removing the 1988 transition rule in paragraph (b), clarifying liability for special tax under a partnership, and updating the informational citation at the end of the section. The informational citation at the end of § 40.371 is also amended to reflect the redesignation of certain IRC sections by section 11125 of the Act. Finally, §§ 40.33 and 40.373 are revised to serve as cross references to the special tax provisions of part 46. Part 44—Exportation of Tobacco Products and Cigarette Papers and Tubes, Without Payment of Tax, or With Drawback of Tax The regulations in 27 CFR part 44 govern exportation of tobacco products and cigarette papers and tubes. For the same reason stated for part 40 above, we have transferred the part 44 special tax provisions to new subpart D of part 46. For the same reason stated for § 40.11 above, a definition of “special tax” is added to § 44.11. In addition, § 44.31 is amended by removing the superseded 1988 transition rule in paragraph (b), clarifying liability for special tax under a partnership, and updating the informational citation at the end to reflect the redesignation of certain IRC sections by section 11125 of the Act. Finally, § 44.33 is revised to direct users to part 46 for additional provisions concerning special tax. Part 46—Miscellaneous Regulations Relating to Tobacco Products and Cigarette Papers and Tubes As discussed above, we are adding a new subpart D to 27 CFR part 46 to set forth provisions related to special tax on tobacco product and related occupations. Certain sections are consolidated from parts 40 and 44, and others are adopted from the liquor dealer regulations in part 31. The regulations adopted for part 46 from part 31 reflect special tax policy positions developed through rulemaking during the time we administered the dealer's tax. Because we would be guided by these positions if similar questions arose concerning regulated entities in the tobacco product and related occupations, we are adopting them for part 46 purposes to preserve the precedents that existed. The table below shows the source of each new subpart D section: New section number Source 46.91 new 46.92 new 46.93 31.57 and 31.71 46.94 31.4, 31.123 46.95 31.91 Payment of Special Tax 46.101 40.33, 40.373, and 44.33 46.102 40.34 and 44.34 46.103 31.104 46.104 31.105 46.105 31.138 46.106 31.122 46.107 31.109 46.108 31.110 46.109 31.111 Special Tax Stamps 46.116 40.35, 40.374, and 44.35 46.117 31.132 46.118 31.133 46.119 31.153 46.120 31.134 46.121 31.135 Changes in Businesses Holding Special Tax Stamps 46.126 40.36, 40.375, 44.36 and 31.151-31.152 46.127 40.36, 40.375, 44.36, 17.77, and 31.163 Stamps for Incorrect Period or Incorrect Liability 46.131 31.136 46.132 31.137-139 Abatement or Refund of Special Taxes 46.136 31.201 46.137 31.202 46.138 31.203 We did not adopt those provisions of part 31 that dealt with exemptions and exceptions from liquor dealers tax because we do not believe they are relevant to the special tax on tobacco product and related occupations. Part 70—Procedure and Administration Part 70 of 27 CFR sets forth the procedural and administrative rules of the Alcohol and Tobacco Tax and Trade Bureau. We have amended various sections within part 70 to change references to special tax on alcohol occupations to references to dealer registration or claimant registration while retaining or adding references to special tax on tobacco occupations. We have also removed references to OMB approval after §§ 70.411, 70.412, and 70.414, and 70.431, because those sections are part of the Statement of Procedural Rules. These sections do not impose a recordkeeping requirement but rather only point to regulatory provisions that do impose a recordkeeping requirement. Finally, no changes were made to the title of subpart D or to §§ 70.61, 70.64, 70.433, 70.441, 70.442, or 70.448, because they refer to occupational taxes that are still in effect. Regulatory Flexibility Act We certify that this temporary rule will not have a significant economic impact on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required. The relevant collections of information derive directly from the Internal Revenue Code of 1986, as amended, and the regulations in this rule concerning these collections merely implement the statutory requirements. Likewise, any secondary or incidental effects, and any reporting, recordkeeping, or other compliance burdens flow directly from the statute. Pursuant to 26 U.S.C. 7805(f), this temporary regulation will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small businesses. Paperwork Reduction Act TTB has provided estimates of the burdens that the collections of information contained in these regulations impose, and these estimated burdens have been reviewed and approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) and assigned control numbers 1513-0088, 1513-0112, and 1513-0113. Finally, TTB has provided the public with notice of these collections of information and solicited comments on them, with the most recent notices being published in the Federal Register on May 2, 2006 (71 FR 25889) for OMB No. 1513-0088, November 21, 2007 (72 FR 65646) for OMB No. 1513-0113, and September 4, 2008 (73 FR 51699) for OMB No. 1513-0112. To date, TTB has not received any comments in response to these notices. Under the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control number. Comments concerning suggestions for reducing the burden of the collections of information in this document should be directed to Mary A. Wood, Alcohol and Tobacco Tax and Trade Bureau, at any of these addresses: • P.O. Box 14412, Washington, DC 20044-4412; • 202-927-8525 (facsimile); or • formcomments@ttb.gov (e-mail). Executive Order 12866 This is not a significant regulatory action as defined in E.O. 12866. Therefore, it requires no regulatory assessment. Inapplicability of Prior Notice and Comment and Delayed Effective Date Procedures Because this document merely implements a law which was effective on July 1, 2008, and because immediate guidance is necessary to implement the provisions of the law, it is found to be impracticable to issue this Treasury decision with notice and public procedure under 5 U.S.C. 553(b). Pursuant to the provisions of 5 U.S.C. 553(d)(1), (d)(2), and (d)(3), we are issuing these regulations without a delayed effective date. These temporary regulations recognize an exemption within the meaning of section 553(d)(1) and (d)(2) because they lessen burdens by recognizing previously filed documents as registration and recognize longstanding agency interpretations in previously published regulations, respectively. Furthermore, TTB has determined that good cause exists to provide industry members with immediate guidance on their utilization of registration procedures in accordance with section 553(d)(3). Drafting Information Steve Simon, Daniel Hiland, and Marjorie Ruhf of the Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, drafted this document. Other personnel also participated in its development. List of Subjects 27 CFR Part 17 Administrative practice and procedure, Claims, Cosmetics, Customs duties and inspection, Drugs, Excise taxes, Exports, Imports, Liquors, Packaging and containers, Puerto Rico, Reporting and recordkeeping requirements, Spices and flavorings, Surety bonds, Virgin Islands. 27 CFR Part 19 Administrative practice and procedures, Caribbean Basin Initiative, Claims, Electronic funds transfers, Excise taxes, Exports, Gasohol, Imports, Labeling, Liquors, Packaging and containers, Puerto Rico, Reporting and recordkeeping requirements, Research, Security measures, Surety bonds, Vinegar, Virgin Islands, Warehouses. 27 CFR Part 20 Alcohol and alcoholic beverages, Claims, Cosmetics, Excise taxes, Labeling, Packaging and containers, Penalties, Reporting and recordkeeping requirements, Surety bonds. 27 CFR Part 22 Administrative practice and procedure, Alcohol and alcoholic beverages, Excise taxes, Reporting and recordkeeping requirements, Surety bonds. 27 CFR Part 24 Administrative practice and procedure, Claims, Electronic fund transfers, Excise taxes, Exports, Food additives, Fruit juices, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Research, Scientific equipment, Spices and flavoring, Surety bonds, Vinegar, Warehouses, Wine. 27 CFR Part 25 Administrative practice and procedure, Beer, Claims, Electronic funds transfers, Excise taxes, Exports, Labeling, Packaging and containers, Reporting and recordkeeping requirements, Research, Surety bonds. 27 CFR Part 26 Administrative practice and procedure, Alcohol and alcoholic beverages, Caribbean Basin Initiative, Claims, Customs duties and inspection, Electronic funds transfers, Excise taxes, Packaging and containers, Puerto Rico, Reporting and recordkeeping requirements, Surety bonds, Virgin Islands, Warehouses. 27 CFR Part 27 Alcohol and alcoholic beverages, Beer, Cosmetics, Customs duties and inspection, Electronic funds transfers, Excise taxes, Imports, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Wine. 27 CFR Part 28 Aircraft, Alcohol and alcoholic beverages, Armed forces, Beer, Claims, Excise taxes, Exports, Foreign trade zones, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Surety bonds, Vessels, Warehouses, Wine. 27 CFR Part 31 Alcohol and alcoholic beverages, Excise taxes, Exports, Packaging and containers, Reporting and recordkeeping requirements. 27 CFR Part 40 Cigars and cigarettes, Claims, Electronic funds transfers, Excise taxes, Imports, Labeling, Packaging and containers, Reporting and recordkeeping requirements, Surety bonds, Tobacco. 27 CFR Part 44 Aircraft, Armed forces, Cigars and cigarettes, Claims, Customs duties and inspection, Excise taxes, Exports, Foreign trade zones, Labeling, Packaging and containers, Reporting and recordkeeping requirements, Surety bonds, Tobacco, Vessels, Warehouses. 27 CFR Part 46 Administrative practice and procedure, Cigars and cigarettes, Claims, Excise taxes, Packaging and containers, Penalties, Reporting and recordkeeping requirements, Seizures and forfeitures, Surety bonds, Tobacco. 27 CFR Part 70 Administrative practice and procedure, Claims, Excise taxes, Freedom of information, Law enforcement, Penalties, Reporting and recordkeeping requirements, Surety bonds. Authority and Issuance For the reasons discussed in the preamble, TTB amends 27 CFR parts 17, 19, 20, 22, 24, 25, 26, 27, 28, 31, 40, 44, 46, and 70 as set forth below: PART 17—DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN MANUFACTURING NONBEVERAGE PRODUCTS 1. The authority citation for part 17 is revised to read as follows: Authority: 26 U.S.C. 5010, 5111-5114, 5123, 5206, 5273, 6065, 6091, 6109, 7213, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306. § 17.1 [Amended] 2. Section 17.1 is amended by removing the words, “the payment of special (occupational) taxes in order to be eligible to receive drawback;”. 3. Section 17.4 is revised to read as follows: § 17.4 OMB control numbers assigned under the Paperwork Reduction Act. (a) Purpose. This section collects and displays the control numbers assigned to the information collection requirements of this part by the Office of Management and Budget under the Paperwork Reduction Act of 1995. (b) OMB control number 1513-0013. OMB control number 1513-0013 is assigned to the following section in this part: § 17.106. (c) OMB control number 1513-0014. OMB control number 1513-0014 is assigned to the following sections in this part: §§ 17.6 and 17.105. (d) OMB control number 1513-0021. OMB control number 1513-0021 is assigned to the following sections in this part: §§ 17.121, 17.126, 17.127, 17.132, and 17.136. (e) OMB control number 1513-0130. OMB control number 1513-0130 is assigned to the following sections in this part: §§ 17.142, 17.145, and 17.146. (f) OMB control number 1513-0036. OMB control number 1513-0036 is assigned to the following section in this part: § 17.6. (g) OMB control number 1513-0072. OMB control number 1513-0072 is assigned to the following sections in this part: §§ 17.3, 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 1513-0073. OMB control number 1513-0073 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. (i) OMB control number 1513-0088. OMB control number 1513-0088 is assigned to the following section in this part: § 17.23. (j) OMB control number 1513-0098. OMB control number 1513-0098 is assigned to the following sections in this part: §§ 17.147 and 17.182. § 17.11 [Amended] 4. Section 17.11 is amended by removing the definition of “Special tax”. 5. Subpart C is revised to read as follows: Subpart C—Registration Sec. 17.21 Registration. 17.22 Employer identification number. 17.23 Application for employer identification number. Subpart C—Registration § 17.21 Registration. Every person claiming drawback under this part must register annually as a nonbeverage domestic drawback claimant. Registration will be accomplished when the claimant submits the first drawback claim for each year along with the supporting data required under subpart G of this part. No registration is required for any year in which the claimant does not file a claim for drawback. § 17.22 Employer identification number. Every person who claims drawback under this part must enter on each claim for drawback filed on TTB Form 5620.8, Claim—Alcohol, Tobacco, and Firearms Taxes, the employer identification number (EIN) assigned by the Internal Revenue Service. (26 U.S.C. 6109, 6723) § 17.23 Application for employer identification number. (a) Use Form SS-4. A claimant must obtain an employer identification number (EIN) by filing an application with the Internal Revenue Service (IRS) on IRS Form SS-4. Form SS-4 is available from the local IRS Service Center, from the IRS District Director, the IRS Web site at http://www.irs.gov or from the TTB National Revenue Center. The claimant must file this form with IRS in accordance with the instructions on the form. (b) One EIN only. Each claimant must obtain and use only one EIN, regardless of the number of places of business for which a claim is filed under this part. (26 U.S.C. 6109) Subpart D—[Removed and Reserved] 6. Subpart D is removed and reserved. 7. Section 17.101 is revised to read as follows: § 17.101 Bonds in general. (a) Requirement. A bond must be filed by each person claiming drawback on a monthly basis. Persons who claim drawback on a quarterly basis are not required to file bonds. The bond requirement of this part may be satisfied either by a bond obtained from an authorized surety company or by deposit of collateral security. (b) Bond form. The bond must be prepared and executed on TTB Form 5154.3, Bond for Drawback Under 26 U.S.C. 5111, in accordance with the provisions of this part and the instructions printed on the form. (c) Bonds executed before July 1, 2008. On and after July 1, 2008, a reference to 26 U.S.C. 5131-5134 in a bond executed on TTB Form 5154.3, Bond for Drawback Under 26 U.S.C. 5131, shall be understood to refer to the sections redesignated as 26 U.S.C. 5111-5114 by section 11125 of Public Law 109-59. (d) Approval. The appropriate TTB officer is authorized to approve all bonds and consents of surety required by this part. § 17.134 [Amended] 8. In § 17.134, the first sentence is amended by removing the reference “26 U.S.C. 5131” and adding, in its place, the reference “26 U.S.C. 5111”. § 17.141 [Amended] 9. Section 17.141 is amended: a. In the second sentence, by removing the reference “26 U.S.C. 5134” and adding, in its place, the reference “26 U.S.C. 5114”; and b. By removing the last sentence. § 17.146 [Amended] 10. In § 17.146, the introductory text is amended by removing the words “set forth” and adding, in their place, the word “show”, and paragraph (a) is removed and reserved. § 17.148 [Amended] 11. Section 17.148 is amended: a. In paragraph (a), by removing the reference “26 U.S.C. 5131-5134” and adding, in its place, the reference “26 U.S.C. 5111-5114”; b. In the first sentence of paragraph (b), by removing the citation “26 U.S.C. 5131-5134” and adding in its place the citation “26 U.S.C 5111-5114”; and c. At the end of the section, by removing the informational reference “(Sec. 452, Pub. L. 98-369, 98 Stat. 819 (26 U.S.C.5134(c))” and adding, in its place, the informational reference “(26 U.S.C. 5114(c))”. 12. Section 17.161 is amended by revising the last sentence to read as follows: § 17.161 General. * * * The records shall be kept complete and current at all times and shall be retained by the manufacturer at the place where the taxpaid distilled spirits are used in the manufacture or production of nonbeverage products, for the period prescribed in § 17.170. 13. In § 17.168, the last sentence of paragraph (a) is revised to read as follows: § 17.168 Recovered spirits. (a) * * * Recovery operations may only be conducted on the premises where the recovered spirits were used in the manufacture or production of nonbeverage or intermediate products. 14. Section 17.171 is amended: a. By revising the first sentence to read as set forth below. b. At the end of the section, by removing the informational reference “(Sec. 5133, 68A Stat. 623 (26 U.S.C. 5133); sec. 201, Pub. L. 85-859, 72 Stat. 1348 (26 U.S.C. 5146))” and adding, in its place, the informational reference “(26 U.S.C. 5113, 5123)”. § 17.171 Inspection of records. All of the records, forms, and documents required to be retained by § 17.170 shall be kept at the premises where distilled spirits are used in the manufacture or production of nonbeverage products and shall be readily available during the manufacturer's regular business hours for examination and copying by the appropriate TTB officers. * * * § 17.181 [Amended] 15. In § 17.181, the last sentence is amended by removing the reference “26 U.S.C. 5134” and adding, in its place, the reference “26 U.S.C. 5114”. 16. Section 17.182 is amended by revising the first sentence to read as follows: § 17.182 Drawback claims by druggists. Drawback of tax under 26 U.S.C. 5114 is allowable on taxpaid distilled spirits used by druggists in compounding prescriptions. * * * 17. Section 17.187 is amended by revising the second sentence to read as follows: § 17.187 Discontinuance of business. * * * Upon discontinuance of business, a manufacturer's entire stock of taxpaid distilled spirits on hand may be sold in a single sale without the necessity of qualifying as a wholesaler under part 1 of this chapter or registering and keeping records as a liquor dealer under part 31 of this chapter. * * * PART 19—DISTILLED SPIRITS PLANTS 18. The authority citation for part 19 is revised to read as follows: Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 5008, 5010, 5041, 5061, 5062, 5066, 5101, 5121, 5122-5124, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306. § 19.11 [Amended] 19. Section 19.11 is amended: a. In the definition of “Alcoholic flavoring materials”, by removing the reference “26 U.S.C. 5131-5134” and adding, in its place, the reference “26 U.S.C. 5111-5114”. b. In the definition of “Eligible flavor”, by removing from paragraph (1) the reference “26 U.S.C. 5134” and adding, in its place, the reference “26 U.S.C. 5114”. 20. Subpart Ca is revised to read as follows: Subpart Ca—Dealer Registration and Recordkeeping Sec. 19.49 Definitions. 19.50 Dealer registration. 19.51 Amending the dealer registration. 19.52 Dealer records. Subpart Ca—Dealer Registration and Recordkeeping § 19.49 Definitions. For purposes of this subpart, the following terms have the meanings indicated: Dealer. A person who sells, or offers for sale, any alcohol product (distilled spirits, wines, and/or beer) fit for beverage use. Retail dealer in liquors. A dealer who sells, or offers for sale, distilled spirits, wines, or beer to any person other than a dealer. Wholesale dealer in liquors. A dealer who sells, or offers for sale, distilled spirits, wines, or beer to another dealer. (26 U.S.C. 5121, 5122) § 19.50 Dealer registration. Every proprietor who sells or offers for sale any alcoholic product (distilled spirits, wines, or beer) fit for beverage use must register as a dealer under part 31 of this chapter. However, the proprietor's application for registration of a distilled spirits plant filed under subpart G of this part, and approval of that application by the appropriate TTB officer, will constitute the proprietor's registration as a dealer at the distilled spirits plant. Every proprietor registered as a dealer under this subpart will be classified as a wholesale dealer in liquors (see § 31.32 of this chapter) and as such may also operate as a retail dealer in liquors without additional registration. Registration covers all sales from the same location, including sales of wine, beer, or other proprietors' spirits. A proprietor who conducts business as a dealer at a location other than the distilled spirits plant must register and keep records in accordance with part 31 of this chapter. (26 U.S.C. 5124) § 19.51 Amending the dealer registration. Every proprietor registered as a dealer under this subpart must maintain a current and accurate distilled spirits plant registration. Whenever there is a change to any of the information provided in the proprietor's approved notice of registration, the proprietor must amend the registration within the time period specified in subpart G of this part. An amendment of the proprietor's distilled spirits plant registration will also serve as an amendment of the proprietor's dealer registration under this subpart. The proprietor's dealer registration will also terminate when distilled spirits plant operations under the notice of registration terminate. (26 U.S.C. 5124) § 19.52 Dealer records. Every dealer is required to maintain records of transactions. Distilled spirits transactions that appear in the records required by subpart W of this part will meet the proprietor's recordkeeping requirements as a dealer. For other transactions not covered in the distilled spirits plant records, such as retail sales of wine or beer in a restaurant at the distilled spirits plant, or operations as a wholesale dealer in wine or beer, the proprietor must keep the records specified for dealers in part 31 of this chapter. (26 U.S.C. 5121, 5122) § 19.63 [Amended] 21. In § 19.63, the last sentence is amended by removing the words “, including special (occupational) tax,”. § 19.65 [Amended] 22. Section 19.65 is amended by removing the last sentence. § 19.67 [Amended] 23. Section 19.67 is amended: a. In paragraph (a)(1), by removing the words “and pay special (occupational) tax”; and b. In paragraph (a)(2), by removing the words “(except the payment of special (occupational) tax)”. § 19.71 [Amended] 24. In § 19.71, paragraph (a) is amended by removing the last sentence. § 19.374 [Amended] 25. In § 19.374, the second sentence is amended by removing the reference “26 U.S.C. 5131-5134” and adding, in its place, the reference “26 U.S.C. 5111-5114”. 26. Section 19.906 is revised to read as follows: § 19.906 Dealer registration and recordkeeping. An alcohol fuel plant that sells spirits that have not been rendered unfit for beverage use is subject to the requirements of subpart Ca of this part, except that the references in §§ 19.50 and 19.51 to “subpart G” should be taken to refer to §§ 19.910 through 19.950, and the reference in § 19.51 to “subpart W” should be taken to refer to §§ 19.980 through 19.988. PART 20—DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM 27. The authority citation for part 20 continues to read as follows: Authority: 26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552, 5555, 5607, 6065, 7805. Subpart Ca—[Removed and Reserved] 28. Subpart Ca is removed and reserved. § 20.241 [Amended] 29. Section 20.241 is amended by removing the last sentence. PART 22—DISTRIBUTION AND USE OF TAX-FREE ALCOHOL 30. The authority citation for part 22 is revised to read as follows: Authority: 26 U.S.C. 5001, 5121, 5123, 5206, 5214, 5271-5275, 5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806, 7805; 31 U.S.C. 9304, 9306. Subpart Ca—[Removed and Reserved] 31. Subpart Ca is removed and reserved. 32. In § 22.102, the last sentence of paragraph (d) is revised to read as follows: § 22.102 Prohibited uses. (d) * * * Any permittee who sells tax-free alcohol becomes subject to the provisions of part 31 of this chapter. § 22.171 [Amended] 33. In § 22.171, the last sentence of paragraph (a) is removed. PART 24—WINE 34. The authority citation for part 24 is revised to read as follows: Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306. 35. The undesignated center heading directly above § 24.50 is revised to read, “DEALER REGISTRATION AND RECORDKEEPING”. § 24.50 [Removed and reserved] 36. Section 24.50 is removed and reserved. 37. Sections 24.51 through 24.54 are revised to read as follows: § 24.51 Definitions. For purposes of §§ 24.52 through 24.54 of this part, the following terms have the meanings indicated: Dealer. A person who sells, or offers for sale, any alcohol product (distilled spirits, wines, and/or beer) fit for beverage use. Retail dealer in liquors. A dealer who sells, or offers for sale, distilled spirits, wines, or beer to any person other than a dealer. Wholesale dealer in liquors. A dealer who sells, or offers for sale, distilled spirits, wines, or beer to another dealer. (26 U.S.C. 5121, 5122) § 24.52 Dealer registration. Every proprietor who sells or offers for sale any alcohol product (distilled spirits, wines, or beer) fit for beverage use must register as a dealer in accordance with part 31 of this chapter. However, the proprietor's application to establish and operate a bonded wine premises or taxpaid wine bottling house filed under subpart D of this part, and approval of that application by the appropriate TTB officer, will constitute the proprietor's registration as a dealer at the approved bonded or taxpaid wine premises. Every proprietor registered as a dealer under this section will be classified as a wholesale dealer in liquors (see § 31.32 of this chapter) and as such may also operate as a retail dealer in liquors without additional registration. Registration covers all sales from the same location, including sales of spirits, beer, or other proprietors' wine. As provided in § 31.52 of this chapter, the proprietor is subject to no additional registration for making sales of wine or beer at the customer's place of business. Otherwise, a proprietor who conducts business as a dealer at a location other than the bonded wine premises or taxpaid wine bottling house must register and keep records in accordance with part 31 of this chapter. (26 U.S.C. 5124) § 24.53 Amending the dealer registration. Every proprietor registered as a dealer under § 24.52 must maintain a current and accurate application file under subpart D of this part. Whenever there is a change to any of the information provided in the proprietor's approved application, the proprietor must amend the application within the time period specified in subpart D of this part. An amendment of the proprietor's wine premises approved application will also amend the proprietor's dealer registration under § 24.52. The proprietor's dealer registration will also terminate when wine operations authorized under this part terminate. (26 U.S.C. 5124) § 24.54 Dealer records. Every dealer is required to maintain records of transactions. Wine transactions that appear in the records required by subpart O of this part will meet the proprietor's recordkeeping requirements as a dealer. For other transactions not covered in the wine premises records, such as retail sales of distilled spirits or beer in a restaurant at the wine premises, or operations as a wholesale dealer in distilled spirits or beer, the proprietor must keep the records specified for dealers in part 31 of this chapter. (26 U.S.C. 5121, 5122, 5123) § 24.55 [Removed] 38. Section 24.55 is removed. § 24.146 [Amended] 39. In § 24.146, paragraph (a) is amended by removing the second sentence. PART 25—BEER 40. The authority citation for part 25 is revised to read as follows: Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061, 5121, 5122-5124, 5222, 5401-5403, 5411-5417, 5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308. § 25.24 [Amended] 41. Section 25.24 is amended: a. In paragraph (a)(5) by adding the word “and” at the end of the paragraph after the semicolon; b. By removing paragraph (a)(6); and c. By redesignating paragraph (a)(7) as paragraph (a)(6). 42. Subpart I is revised to read as follows: Subpart I—Dealer Registration and Recordkeeping Sec. 25.111 Definitions. 25.112 Dealer registration. 25.113 Amending the dealer registration. 25.114 Dealer records. Subpart I—Dealer Registration and Recordkeeping § 25.111 Definitions. For purposes of this subpart, the following terms have the meanings indicated: Dealer . A person who sells, or offers for sale, any alcohol product (distilled spirits, wines, and/or beer) fit for beverage use. Retail dealer in liquors . A dealer who sells, or offers for sale, distilled spirits, wines, or beer to any person other than a dealer. Wholesale dealer in liquors . A dealer who sells, or offers for sale, distilled spirits, wines, or beer to another dealer. (26 U.S.C. 5121, 5122) § 25.112 Dealer registration. Every brewer who sells, or offers for sale, any alcohol product (distilled spirits, wines, or beer) fit for beverage use must register as a dealer in accordance with part 31 of this chapter. However, the Brewer's Notice, TTB Form 5130.10, filed under subpart G of this part, and approval of that notice by the appropriate TTB officer, will constitute the brewer's registration as a dealer at the brewery. Every brewer registered as a dealer under this subpart will be classified as a wholesale dealer in liquors (see § 31.32 of this chapter) and as such may also operate as a retail dealer in liquors without additional registration. Registration covers all sales from the same location, including sales of wine, spirits, or other brewers' beer. As provided in § 31.52 of this chapter, the brewer is subject to no additional registration for making sales of wine or beer at the customer's place of business. Otherwise, a brewer who conducts business as a dealer at a location other than the brewery must register and keep records in accordance with part 31 of this chapter. (26 U.S.C. 5124) § 25.113 Amending the dealer registration. Every brewer registered as a dealer under this subpart must maintain a current and accurate Brewer's Notice, TTB Form 5130.10. Whenever there is a change to any of the information provided in the approved Brewer's Notice, the brewer must amend the notice within the time period specified in subpart G of this part. An amendment to the Brewer's Notice, Form 5130.10, will also serve as an amendment of the brewer's dealer registration under this subpart. The brewer's dealer registration will also terminate when brewery operations under the Brewer's Notice terminate. (26 U.S.C. 5124) § 25.114 Dealer records. Every dealer is required to maintain records of transactions. Beer transactions that appear in the records required by subpart U of this part will meet the brewer's recordkeeping requirements as a dealer. For other transactions not covered in the brewery records, such as retail sales of wine or distilled spirits in a restaurant at the brewery, or operations as a wholesale dealer in wine or distilled spirits, the brewer must keep the records specified for dealers in part 31 of this chapter. (26 U.S.C. 5121, 5122) § 25.168 [Amended] 43. In § 25.168, the last sentence is amended by removing the reference “§§ 25.122 and 25.123” and adding, in its place, the reference “§ 25.169”. 44. New § 25.169 is added to read as follows: § 25.169 Application for employer identification number. (a) Form SS-4 . The taxpayer must obtain an employer identification number (EIN) by filing an application with the Internal Revenue Service (IRS) on IRS Form SS-4. Form SS-4 is available from the local IRS Service Center, from the IRS District Director, the IRS Web site at http://www.irs.gov or from TTB's National Revenue Center. The taxpayer may file this form with IRS by mail, telephone, or fax by following the instructions on the form. (b) Time limit . If the taxpayer has not already received, or applied for, an EIN at the time that the first return on TTB Form 5000.24, Excise Tax Return, is filed, the taxpayer must apply for an EIN not later than seven days from the date of filing the Form 5000.24. (c) One EIN only . Each taxpayer must obtain and use only one EIN, regardless of the number of places of business for which the proprietor is required to file a tax return under this subpart. (26 U.S.C. 6109) § 25.275 [Removed] 45. Section 25.275 is removed and reserved. PART 26—LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS 46. The authority citation for part 26 is revised to read as follows: Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5061, 5111-5114, 5121, 5122-5124, 5131-5132, 5207, 5232, 5271, 5275, 5301, 5314, 5555, 6001, 6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303, 9304, 9306. § 26.11 [Amended] 47. In § 26.11, the definition of “Eligible flavor” is amended by removing from paragraph (1) the reference “26 U.S.C. 5134” and adding, in its place, the reference “26 U.S.C. 5114”. 48. Section 26.36 is amended: a. In paragraph (b), by revising the first sentence; b. In paragraph (c), by revising the first sentence; and c. In paragraph (d)(2)(i), by removing the words “, and pays special (occupational) tax,”. The revisions read as follows: § 26.36 Products exempt from tax. (b) Industrial spirits . A distiller of industrial spirits who registers and files a bond as a distilled spirits plant in accordance with part 19 of this chapter may ship industrial spirits to a tax-free alcohol user in the United States who holds a permit issued under part 22 of this chapter. * * * (c) Denatured spirits . A distiller who registers and files a bond as a distilled spirits plant in accordance with part 19 of this chapter and who denatures spirits in accordance with parts 19 and 21 of this chapter may ship completely denatured alcohol to anyone in the United States, and may ship specially denatured spirits to a dealer or user of specially denatured spirits in the United States or Puerto Rico who holds a permit issued under part 20 of this chapter. * * * 49. The undesignated center heading before § 26.44 is revised to read as follows: “DEALER REGISTRATION AND RECORDKEEPING”. 50. Sections 26.44 and 26.45 are revised to read as follows: § 26.44 Liquor dealer registration and recordkeeping. Every person bringing liquors into the United States from Puerto Rico who sells, or offers for sale, such liquors must register and keep records as a wholesale dealer in liquor or as a retail dealer in liquor in accordance with part 31 of this chapter. (26 U.S.C. 5121, 5122, 5123, 5124.) § 26.45 Warehouse receipts covering distilled spirits. The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person bringing distilled spirits into the United States from Puerto Rico who sells, or offers for sale, warehouse receipts for distilled spirits stored in warehouses, or elsewhere, must register and keep records as a dealer in liquors at the place where the warehouse receipts are sold, or offered for sale, in accordance with part 31 of this chapter. (26 U.S.C. 5121, 5122, 5123, 5124) §§ 26.46 and 26.47 [Removed and reserved] 51. Sections 26.46 and 26.47 are removed and reserved. 52. Section 26.171 is revised to read as follows: § 26.171 Claimant registration. Any person filing claim for drawback of tax on eligible articles brought into the United States from Puerto Rico must register annually as a nonbeverage domestic drawback claimant. Registration will be accomplished when the claimant submits the first drawback claim for each year, along with the required supporting data for the claim, under subpart G of part 17 of this chapter. For purposes of registration, subpart C part 17 of this chapter shall apply as if the use and tax determination occurred in the United States at the time the article was brought into the United States, and each business location from which entry of eligible articles is caused or effected shall be treated as a place of manufacture. 53. Section 26.173 is amended: a. In paragraph (a), by removing the second sentence and adding, in its place, two new sentences; b. By removing and reserving paragraph (b)(1); and c. By revising paragraph (c)(1). The addition and revisions read as follows: § 26.173 Claims for drawback. (a) * * * Upon finding that the claimant has satisfied the requirements of this subpart, the appropriate TTB officer will allow the drawback at $1 less than the rate applicable under 26 U.S.C. 7652(f). Claims for products manufactured in Puerto Rico must be filed separately from claims filed under part 17 of this chapter for products manufactured in the United States. (c) * * * (1) The claimant's employer identification number, as required by §§ 17.31 and 17.32 of this chapter; and 54. The undesignated center heading before § 26.210 is revised to read as follows: “DEALER REGISTRATION AND RECORDKEEPING”. 55. Sections 26.210 and 26.211 are revised to read as follows: § 26.210 Liquor dealer registration and recordkeeping. Every person bringing liquors into the United States from the Virgin Islands who sells, or offers for sale, such liquors must register and keep records as a wholesale dealer in liquor or as a retail dealer in liquor in accordance with part 31 of this chapter. (26 U.S.C. 5121, 5122, 5123, 5124) § 26.211 Warehouse receipts covering distilled spirits. The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person bringing distilled spirits into the United States from the Virgin Islands who sells, or offers for sale, warehouse receipts for distilled spirits stored in warehouses, or elsewhere, must register and keep records as a dealer in liquors at the place where the warehouse receipts are sold, or offered for sale, in accordance with part 31 of this chapter. (26 U.S.C. 5121, 5122, 5123, 5124) 56. Section 26.307 is revised to read as follows: § 26.307 Claimant registration. Any person filing claim for drawback of tax on eligible articles brought into the United States from the Virgin Islands must register annually as a nonbeverage domestic drawback claimant. Registration will be accomplished when the claimant submits the first drawback claim for each year, along with the required supporting data for the claim, under subpart G of part 17 of this chapter. For purposes of registration, subpart C of part 17 of this chapter shall apply as if the use and tax determination occurred in the United States at the time the article was brought into the United States, and each business location from which entry of eligible articles is caused or effected shall be treated as a place of manufacture. 57. Section 26.309 is amended: a. In paragraph (a), by removing the second sentence and adding, in its place, two new sentences; b. By removing and reserving paragraph (b)(1); and c. By revising paragraph (c)(1). The addition and revisions read as follows: § 26.309 Claims for drawback. (a) * * * Upon finding that the claimant has satisfied the requirements of this subpart, the appropriate TTB officer will allow the drawback at $1 less than the rate applicable under 26 U.S.C. 7652(f). Claims for products manufactured in the Virgin Islands must be filed separately from claims filed under part 17 of this chapter for products manufactured in the United States. (c) * * * (1) The claimant's employer identification number, as required by §§ 17.31 and 17.32 of this chapter; and PART 27—IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER 58. The authority citation for part 27 is revised to read as follows: Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5054, 5061, 5121, 5122-5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805. § 27.1 [Amended] 59. Section 27.1 is amended by removing the words “special (occupational) and”. § 27.11 [Amended] 60. In § 27.11, the definition of “Eligible flavor” is amended by removing from paragraph (1) the reference “26 U.S.C. 5134” and adding, in its place, the reference “26 U.S.C. 5114”. 61. Revise subpart C to read as follows: Subpart C—Dealer Registration and Recordkeeping § 27.30 Dealer registration and recordkeeping. Importers engaged in the business of selling, or offering for sale, distilled spirits, wines, or beer are subject to the provisions of part 31 of this chapter relating to dealer registration and records. Part 31 requires the filing of TTB Form 5630.5d with TTB, in accordance with the instructions on the form, before commencing business and on or before July 1 of each year thereafter if there have been any changes. The dealer must file an amended registration and give notice of termination in accordance with the rules of part 31. (26 U.S.C. 5121, 5122, 5123, 5124) § 27.31 Warehouse receipts covering distilled spirits. The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person engaged in business as an importer of distilled spirits who sells, or offers for sale, warehouse receipts for distilled spirits stored in customs bonded warehouses, or elsewhere, must register and keep records as a dealer in liquors at the place where the warehouse receipts are sold or offered for sale, in accordance with part 31 of this chapter. (26 U.S.C. 5121, 5122, 5123, 5124) PART 28—EXPORTATION OF ALCOHOL 62. The authority citation for part 28 is revised to read as follows: Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051, 5054, 5061, 5121, 5122, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805; 27 U.S.C. 203, 205; 44 U.S.C. 3504(h). 63. Section 28.212 is revised to read as follows: § 28.212 Persons authorized. Persons who have qualified under this chapter as proprietors of distilled spirits plants, bonded wine cellars, or taxpaid wine bottling houses, and persons who are wholesale liquor dealers (as defined in § 31.32 of this chapter) and have registered as a wholesale liquor dealer in accordance with part 31 of this chapter, are authorized to remove wines under the provisions of this subpart. (26 U.S.C. 5062) 64. Part 31 is revised to read as follows: PART 31—ALCOHOL BEVERAGE DEALERS Sec. 31.0 Scope. Subpart A—General Provisions 31.1 Definitions. 31.2 Territorial extent. 31.3 Basic permit requirements. 31.4 Relation to State and municipal law. Subpart B—Administrative Provisions 31.11 Forms prescribed. 31.12 Right of entry and examination. 31.13 Delegations of the Administrator. 31.14 Penalties. 31.15 Disclosure of information. Subpart C—Activities Subject to This Part 31.21 Basis of regulation. 31.22 Selling or offering for sale. Dealers Classified 31.31 Retail dealer in liquors. 31.32 Wholesale dealer in liquors. 31.33 Retail dealer in beer. 31.34 Wholesale dealer in beer. 31.35 Limited retail dealer; persons eligible. 31.36 Sales of 20 wine gallons (75.7 liters) or more. Certain Organizations, Agencies, and Persons 31.41 Clubs or similar organizations. 31.42 Restaurants serving liquors with meals. 31.43 States, political subdivisions thereof, or the District of Columbia. 31.44 Sales of denatured spirits or articles. 31.45 Sales of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer. 31.46 Sales by agencies and instrumentalities of the United States. 31.47 Warehouse receipts covering spirits. 31.48 Alcohol beverage producers, processors, and bonded warehousemen. Subpart D—Exemptions and Exceptions Persons Exempt From Registration and/or Recordkeeping 31.51 Wholesale dealers making retail sales. 31.52 Wholesale dealers in liquors consummating sales of wines or beer at premises of other dealers. 31.53 Wholesale dealers in beer consummating sales at premises of other dealers. 31.54 Hospitals. 31.55 Limited retail dealers. Persons Who Are Not Dealers in Liquors or Beer 31.61 Single sale of liquors or warehouse receipts. 31.62 Persons making casual sales. 31.63 Agents, auctioneers, brokers, etc., acting on behalf of others. 31.64 Apothecaries or druggists selling medicines and tinctures. 31.65 Persons selling products unfit for beverage use. 31.66 Retail dealer selling entire stock in liquidation. 31.67 Persons returning liquors for credit, refund, or exchange. Subpart E—Places Subject to Registration 31.71 Registration required for each place of business. 31.72 Place of sale. 31.73 Place of offering for sale. 31.74 Places of storage; deliveries therefrom. 31.75 Dealer in beer and dealer in liquors at the same location. Sales in Two or More Areas on the Same Premises 31.81 General. 31.82 Hotels. 31.83 Ball park, race track, etc.; sales throughout the premises. Sales in Multiple Locations 31.91 Passenger trains, aircraft, and vessels. 31.92 Carriers not engaged in passenger service. 31.93 Supply boats or vessels. 31.94 Retail dealers “At Large.” 31.95 Caterers. 31.96 Peddling. Subpart F—Partnerships 31.101 Registration of partners. 31.102 Addition of partners or incorporation of partnership. 31.103 Formation of a partnership by two dealers. 31.104 Withdrawal of one or more partners. Subpart G—Registration Form, TTB F 5630.5d 31.111 Date registration form is due. 31.112 Registration of multiple locations. 31.113 Place for filing registration form. 31.114 Completion of registration form. 31.115 Employer identification number. 31.116 Execution of registration form. Subpart H—Changes in Registration Information Changes Requiring Registration as a New Business 31.121 Sale of business. 31.122 Incorporation of business. 31.123 New corporation. 31.124 Stockholder continuing business of corporation. 31.125 Cross references. Other Changes 31.131 Change of address. 31.132 Change in name or style of business. 31.133 Change in management. 31.134 Increase in capital stock of a corporation. 31.135 Change in ownership of capital stock. 31.136 Change in membership of unincorporated club. 31.137 Withdrawal of partner(s). 31.138 Discontinuance of business. Subpart I—Restrictions Relating to Purchases of Distilled Spirits 31.141 Unlawful purchases of distilled spirits. Subpart J—Records and Reports Wholesale Dealers' Records and Reports 31.151 General requirements as to distilled spirits. 31.152 Requirements as to wines and beer. 31.153 Records to be kept by States, political subdivisions of States, or the District of Columbia. 31.154 Records to be kept by alcohol beverage producers, processors, and bonded warehousemen. 31.155 Records of receipt. 31.156 Records of disposition. 31.157 Canceled or corrected records. 31.158 Previously prescribed or approved records of receipt and disposition. 31.159 Variations in format or preparation of records. 31.160 Monthly summary report. 31.161 Conversion between metric and U.S. units. 31.162 Discontinuance of business. 31.163 Requirements when a wholesale dealer in liquors maintains a retail department. Filing of Wholesale Dealer's Records and Reports 31.171 Method of filing. 31.172 Place of filing. Retail Dealer's Records 31.181 Requirements for retail dealers. Retention of Records and Files 31.191 Period of retention. 31.192 Photographic copies of records. Subpart K—Reuse and Possession of Used Liquor Bottles 31.201 Refilling of liquor bottles. 31.202 Possession of refilled liquor bottles. 31.203 Possession of used liquor bottles. 31.204 Mixed cocktails. Subpart L—Packaging of Alcohol for Industrial Uses 31.211 Requirements and procedure. 31.212 Labeling. Subpart M—Distilled Spirits for Export With Benefit of Drawback 31.221 General. 31.223 Records and reports. Subpart N—Miscellaneous 31.231 Destruction of marks and brands on wine containers. 31.232 Wine bottling. 31.233 Mixing cocktails in advance of sale. 31.234 Liability for special (occupational) tax. Authority: 26 U.S.C. 5001, 5002, 5121, 5122-5124, 5131, 5132, 5206, 5207, 5273, 5301, 5352, 5555, 5603, 5613, 5681, 5687, 6061, 6065, 6071, 6091, 6103, 6109, 6723, 6724, 7805. § 31.0 Scope. This part contains the requirements relating to the registration of wholesale and retail dealers in liquors and in beer and to the operations of such dealers, including recordkeeping requirements, prescribed under title 26 of the United States Code. This part also contains provisions relating to entry of dealers' premises and inspection of their records by TTB officers. Subpart A—General Provisions § 31.1 Definitions. As used in this part, the following terms shall have the meanings indicated unless either the context in which they are used requires a different meaning, or a different definition is prescribed for a particular subpart, section, or portion of this part: Administrator. The Administrator, Alcohol and Tobacco Tax and Trade Bureau, Department of the Treasury, Washington, DC. Appropriate TTB officer. An officer or employee of the Alcohol and Tobacco Tax and Trade Bureau (TTB) authorized to perform any functions relating to the administration or enforcement of this part by TTB Order 1135.31, Delegation of the Administrator's Authorities in 27 CFR Part 31, Alcohol Beverage Dealers. Beer. Beer, ale, porter, stout, and other similar fermented beverages (including sake or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor. Beverage use or use for beverage purposes. Use as an alcohol beverage. Bonded wine cellar. An establishment qualified under this chapter for the production, blending, cellar treatment, storage, bottling, and packaging or repackaging of untaxpaid wine. Brewery. An establishment qualified under this chapter for the production of beer. CFR. The Code of Federal Regulations. Dealer. Any person who sells, or offers for sale, any distilled spirits, wines, or beer. Denatured spirits or denatured alcohol. Spirits to which denaturants have been added as prescribed under this chapter. Distilled spirits or spirits. That substance known as ethyl alcohol, ethanol, or spirits of wine in any form, including all dilutions and mixtures thereof, from whatever source or by whatever process produced. Distilled spirits plant. An establishment qualified under part 19 of this chapter for the production, storage, or processing of distilled spirits. Gallon or wine gallon. A United States gallon of liquid measure equivalent to the volume of 231 cubic inches. Liquor bottle. A bottle made of glass or earthenware, or of other suitable material approved by the Food and Drug Administration, which has been designed or is intended for use as a container for distilled spirits for sale for beverage purposes and which has been determined by the appropriate TTB officer to adequately protect the revenue. Liquors. Distilled spirits, wines, or beer. Liter. A metric unit of capacity equal to 1,000 cubic centimeters of alcoholic beverage, and equivalent to 33.814 fluid ounces. Person. An individual, trust, estate, partnership, association or other unincorporated organization, fiduciary, company, or corporation, the District of Columbia, or a State or a political subdivision thereof (including a city, county, or other municipality). Place or place of business. The entire office, plant, or area of the business in any one location under the same proprietorship; and passageways, streets, highways, rail crossings, waterways, or partitions dividing the premises shall not be deemed a separation for the purposes of this part, if the various divisions are otherwise contiguous. Reclaim. To grind up a liquor bottle or container and use the ground up material to make products other than liquor bottles or containers. Recycle. To grind up a liquor bottle or container and use the ground up material to make new liquor bottles or containers. Sale at retail or retail sale. Sale of liquors to a person other than a dealer. Sale at wholesale or wholesale sale. Sale of liquors to a dealer. This chapter. Chapter I of title 27 of the Code of Federal Regulations. U.S.C. The United States Code. Wine. When used without qualification, the term includes every kind (class and type) of product produced on bonded wine premises from grapes, other fruit (including berries), or other suitable agricultural products and containing not more than 24 percent of alcohol by volume. The term includes all imitation, other than standard, or artificial wine and compounds sold as wine. A wine product containing less than one-half of one percent alcohol by volume is not taxable as wine when removed from the bonded wine premises. (26 U.S.C. 5002, 5041, 5052, 7805) § 31.2 Territorial extent. The provisions of this part shall be applicable in the several States of the United States and the District of Columbia. § 31.3 Basic permit requirements. Every person, except an agency of a State or political subdivision thereof, who intends to engage in the business of purchasing distilled spirits, wines, or beer for sale to other dealers for nonindustrial use, or to engage in the business of importing distilled spirits, wines, or beer for nonindustrial use, is required under part 1 of this chapter to obtain a basic permit authorizing such person to engage in such business. § 31.4 Relation to State and municipal law. Compliance with the requirements of this part shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on any trade or business within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State or in places prohibited by municipal law; nor shall such compliance be held to prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes. Subpart B—Administrative Provisions § 31.11 Forms prescribed. (a) The appropriate TTB officer is authorized to prescribe all forms 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. (b) Forms prescribed by this part are available for printing through the TTB Web site ( http://www.ttb.gov ) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Suite 8002, Cincinnati, OH 45202. (5 U.S.C. 552(a)) § 31.12 Right of entry and examination. Any appropriate TTB officer may enter during business hours the premises (including places of storage) of any dealer for the purpose of inspecting or examining any records or other documents required to be kept by such dealer under this part and any distilled spirits, wines, or beer kept or stored by such dealer on such premises. (26 U.S.C. 5123) § 31.13 Delegations of the Administrator. The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.31, Delegation of the Administrator's Authorities in 27 CFR Part 31, Alcohol Beverage Dealers. You may obtain a copy of this order by accessing the TTB Web site ( http://www.ttb.gov ) or by mailing a request to the Alcohol and Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street, Room 1516, Cincinnati, OH 45202. § 31.14 Penalties. (a) Criminal penalties. Criminal penalties for failure to comply with the requirements of this part are imposed by 26 U.S.C. 5603 and 5687. A failure to register as required by this part may result in a penalty under 26 U.S.C. 5603(b). (b) Administrative penalty. An administrative penalty for failure to supply the required identifying number (employer identification number) in a dealer's registration is imposed by 26 U.S.C. 6723. The penalty is $50 for each such failure, but not more than $100,000 for all such failures during a calendar year. A failure to submit a registration includes a failure to include the identifying number on the registration. (c) Reasonable cause. The administrative penalty described in paragraph (b) of this section is not imposed when it is shown that the failure was due to reasonable cause and not due to willful neglect. A dealer who believes that the circumstances that led to the failure were reasonable and who desires to have the penalty waived shall submit a written statement, under the penalty of perjury, affirmatively showing all of the circumstances alleged as reasonable causes for the failure. If the appropriate TTB officer determines that the failure was due to a reasonable cause and not to willful neglect, the penalty will not be assessed. If the dealer exercised ordinary business care and prudence but was nevertheless unable to comply with the requirement, then the failure was due to reasonable cause. Mere ignorance of the law will not be considered a reasonable cause. (26 U.S.C. 5603, 5687, 6109, 6723, 6724) § 31.15 Disclosure of information. Alcohol dealer registration forms are “information returns” as that term is used in 26 U.S.C. 6103 and, as such, are not subject to disclosure except as provided in that law. (26 U.S.C. 6103) Subpart C—Activities Subject to This Part § 31.21 Basis of regulation. Persons engaging in or carrying on the business or occupation of selling or offering for sale alcoholic liquors fit for use as a beverage, or any alcoholic liquors sold for use as a beverage, are subject to the provisions of this part. The classes of liquor dealer business and the conditions under which the provisions of this part apply to them are specified in §§ 31.31 through 31.34. § 31.22 Selling or offering for sale. Whether the activities of any person constitute engaging in the business of selling or offering for sale is to be determined by the facts in each case. Any manner of selling or offering for sale, even though to a restricted class of persons or without a view to profit, is within the scope of this part. Dealers Classified § 31.31 Retail dealer in liquors. (a) General. Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale distilled spirits, wines, or beer to any person other than a dealer is a retail dealer in liquors for purposes of this part. Every retail dealer in liquors must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part. (b) Persons not deemed to be retail dealers in liquors. The following persons are not retail dealers in liquors within the meaning of this part: (1) A retail dealer in beer as described in § 31.33(a), (2) A limited retail dealer as described in § 31.35, or (3) A person who sells or offers for sale distilled spirits, wines, or beer only as provided in § 31.61 through § 31.64 or § 31.65(a). (26 U.S.C. 5122) § 31.32 Wholesale dealer in liquors. (a) General. Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale distilled spirits, wines, or beer to another dealer is a wholesale dealer in liquors for purposes of this part. Every wholesale dealer in liquors must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part. (b) Persons not deemed to be wholesale dealers in liquors. The following persons are not wholesale dealers in liquors within the meaning of this part: (1) A wholesale dealer in beer as described in § 31.34(a); (2) A person who sells or offers for sale distilled spirits, wines, or beer only as provided in §§ 31.61 through 31.64, § 31.65(a), or § 31.66; or (3) A person returning liquors for credit, refund, or exchange as provided in § 31.67. (26 U.S.C. 5121) § 31.33 Retail dealer in beer. (a) General. Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale beer, but not distilled spirits or wines, to any person other than a dealer is a retail dealer in beer for purposes of this part. Every retail dealer in beer must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part. (b) Persons not deemed to be retail dealers in beer. The following persons are not retail dealers in beer within the meaning of this part: (1) A limited retail dealer as described in § 31.35, or (2) A person who does not sell or offer for sale distilled spirits or wines and sells beer or offers beer for sale only as provided in § 31.61 through § 31.63 or § 31.65(a). (26 U.S.C. 5122) § 31.34 Wholesale dealer in beer. (a) General. Except as otherwise provided in paragraph (b) of this section, every person who sells or offers for sale beer, but not distilled spirits or wines, to another dealer is a wholesale dealer in beer for purposes of this part. Every wholesale dealer in beer must comply with the registration and other requirements of this part, unless the dealer is covered by an applicable exemption under subpart D of this part. (b) Persons not deemed to be wholesale dealers in beer. The following persons are not wholesale dealers in beer within the meaning of this part: (1) A person who does not sell or offer for sale distilled spirits or wines and sells beer or offers beer for sale only as provided in §§ 31.61 through 31.63, § 31.65(a), § 31.66, or § 31.67; or (2) A person returning beer for credit, refund or exchange as provided in § 31.56. (26 U.S.C. 5121) § 31.35 Limited retail dealer; persons eligible. Any person selling distilled spirits, beer, or wine, or any combination thereof, to members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or similar outings, and any fraternal, civic, church, labor, charitable, benevolent, or ex-servicemen's organization selling distilled spirits, beer, or wine, or any combination thereof, on the occasion of any kind of entertainment, dance, picnic, bazaar, or festival held by it, is a “limited retail dealer” if the person or organization is not otherwise engaged in business as a dealer. (26 U.S.C. 5122) § 31.36 Sales of 20 wine gallons (75.7 liters) or more. Any person who sells or offers for sale distilled spirits, wines, or beer, in quantities of 20 wine gallons (75.7 liters) or more, to the same person at the same time, shall be presumed and held to be a wholesale dealer in liquors or a wholesale dealer in beer, as the case may be, unless the seller shows by satisfactory evidence that the sale, or offer for sale, was made to a person other than a dealer. (26 U.S.C. 5121) Certain Organizations, Agencies, and Persons § 31.41 Clubs or similar organizations. (a) Subject to paragraph (b) of this section, a club or similar organization is a dealer for purposes of this part if the club or organization: (1) Furnishes liquors to members under conditions constituting a sale (including the acceptance of orders therefor, furnishing the liquors ordered and collecting the price thereof); or (2) Conducts a bar for the sale of liquors on the occasion of an outing, picnic, or other entertainment, unless the club is a “limited retail dealer” described in § 31.35. The registration of the proprietor of the premises where the bar is located will not relieve the club or organization from its own obligation to register; or (3) Purchases liquors for members without prior agreement concerning payment therefor and such organization subsequently recoups those costs. (b) Compliance with the registration and other requirements of this part is not required if money is collected in advance from members for the purchase of liquors, or if money is advanced for the purchase of liquors pursuant to an agreement with the members for reimbursement. (26 U.S.C. 5122) § 31.42 Restaurants serving liquors with meals. Proprietors of restaurants and other persons who serve liquors with meals to paying customers, even if no separate or specific charge for the liquors is made, are dealers subject to the provisions of this part. (26 U.S.C. 5122) § 31.43 States, political subdivisions of States, or the District of Columbia. A State, a political subdivision of a State, or the District of Columbia, that engages in the business of selling, or offering for sale, distilled spirits, wines, or beer is not exempt from the requirements of this part. However, no such governmental entity shall be required to register more than once as a retail dealer in liquors regardless of the number of locations at which the entity carries on business as a retail dealer in liquors. Any such governmental entity that has properly registered as a wholesale dealer at its principal office, and that has properly registered once as a retail dealer in liquors or beer, is not required to register again at its retail stores by reason of the sale of distilled spirits, wines, or beer at any of those locations to dealers qualified to do business as a dealer within the jurisdiction of that governmental entity. (26 U.S.C. 5121) § 31.44 Sales of denatured spirits or articles. It is illegal to sell denatured spirits, or any article containing denatured spirits, for beverage purposes. Any person who sells denatured spirits, or any substance or preparation made with or containing denatured spirits, for use, or for sale for use, for beverage purposes, or who sells any such products under circumstances in which it might reasonably appear that it is the intention of the purchaser to procure the same for sale or use for beverage purposes, is subject to the registration and other requirements of this part. (26 U.S.C. 5273) § 31.45 Sales of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer. (a) General. Compliance with the provisions of this part is required with respect to the sale, or offering for sale, of alcoholic compounds, preparations, or mixtures containing distilled spirits, wines, or beer, unless those compounds, preparations, or mixtures are unfit for use for beverage purposes and are sold solely for use for nonbeverage purposes. (b) Products unfit for beverage use. Products described in § 19.58 of this chapter, for which manufacturers are exempt from qualification requirements, shall be deemed to be unfit for beverage purposes for the purposes of this part. § 31.46 Sales by agencies and instrumentalities of the United States. Unless specifically exempt by statute, any agency or instrumentality of the United States, including post exchanges, ship's stores, ship's service stores, and commissaries, or any canteen, club, mess, or similar organization operated under regulations of any such agency or instrumentality, that sells, or offers for sale, distilled spirits, wines, or beer must comply with the registration and other requirements of this part as a dealer in liquors or a dealer in beer, as the case may be. (26 U.S.C. 5121, 5122) § 31.47 Warehouse receipts covering spirits. The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, every person who sells, or offers for sale, warehouse receipts for distilled spirits held or stored in a distilled spirits plant, customs bonded warehouse, or elsewhere, is required to register and keep records as a wholesale dealer in liquors, or as a retail dealer in liquors, as the case may be, at the place where those warehouse receipts are sold, or offered for sale, unless the person is exempt from those requirements under subpart D of this part. (26 U.S.C. 5121, 5122) § 31.48 Alcohol beverage producers, processors, and bonded warehousemen. Brewers and proprietors of distilled spirits plants, bonded wine cellars, bonded wine warehouses, and taxpaid wine bottling houses who make sales, whether of their own alcohol beverage products or of such products produced by others, are not exempt from registration and recordkeeping as dealers under this part. However, the registration and recordkeeping requirements applicable to such persons are prescribed in parts 19 (Distilled Spirits Plants), 24 (Wine), and 25 (Beer) of this chapter. Subpart D—Exemptions and Exceptions Persons Exempt From Registration and/or Recordkeeping § 31.51 Wholesale dealers making retail sales. A wholesale dealer in liquors who sells, or offers for sale, distilled spirits, wines, or beer, and a wholesale dealer in beer who sells, or offers for sale, only beer, whether to dealers or to persons other than dealers, at any place where the wholesale dealer in liquors or beer has appropriately registered under this part, is exempt from registration at that place as a retail dealer in liquors or in beer. § 31.52 Wholesale dealers in liquors consummating sales of wines or beer at premises of other dealers. (a) Sales of wines. Any wholesale dealer in liquors (including the proprietor of a bonded wine cellar) who has registered as a wholesale dealer in liquors for the place from which that dealer conducts selling operations may consummate sales of wines to other wholesale or retail dealers in liquors, or to limited retail dealers, at the purchasers' places of business without having to register again as a wholesale dealer on account of those sales. (b) Sales of beer. Any wholesale dealer in liquors who has already registered as such may also consummate sales of beer to wholesale or retail dealers in beer, to wholesale or retail dealers in liquors, or to limited retail dealers, at the purchasers' place of business without having to register again as a wholesale dealer on account of those sales. § 31.53 Wholesale dealers in beer consummating sales at premises of other dealers. Any dealer who has registered as a wholesale dealer in beer for the place from which that dealer conducts selling operations may consummate sales of beer (but not wines or distilled spirits) to other dealers at the purchasers' places of business without having to register again as a wholesale dealer on account of those sales. § 31.54 Hospitals. Hospitals and similar institutions furnishing liquors to patients are not required to register or keep records under this part, provided that no specific or additional charge is made for the liquors so furnished. § 31.55 Limited retail dealers. (a) Sales by limited retail dealers. Limited retail dealers, as described in § 31.35, are not required to register or keep records under this part. (b) Sales to limited retail dealers. Retail dealers in liquors or beer who make sales at their registered places of business to limited retail dealers are not required under this part, solely by virtue of those sales, to register or keep records as wholesale dealers. Persons Who Are Not Dealers in Liquors or Beer § 31.61 Single sale of liquors or warehouse receipts. A single sale of distilled spirits, wines, or beer, or a single sale of one or more warehouse receipts for distilled spirits, unattended by circumstances showing the person making the sale to be engaged in that activity as a business, does not subject the vendor to the registration and other requirements of this part. (26 U.S.C. 5121, 5122) § 31.62 Persons making casual sales. Certain persons making casual sales of liquors are not dealers for purposes of this part and therefore are not required to register, keep records, or submit a report as required of dealers under this part. These persons are: (a) Administrators, executors, receivers, and other fiduciaries who receive liquors in their fiduciary capacities and sell them in one parcel or at public auction in parcels of not less than 20 wine gallons (75.7 liters); (b) Creditors who receive liquors as security for, or in payment of, debts and sell them in one parcel or at a public auction in parcels of not less than 20 wine gallons (75.7 liters); (c) Public officers or court officials who levy on liquors under order or process of any court or magistrate and sell them in one parcel or at public auction in parcels of not less than 20 wine gallons (75.7 liters); and (d) A retiring partner, or representative of a deceased partner, who sells liquors to the incoming or remaining partner, or partners, of a partnership. § 31.63 Agents, auctioneers, brokers, etc., acting on behalf of others. Certain persons may sell liquors as agents or employees of others (principals), or may receive and transmit orders therefor to a dealer, without being considered a dealer on account of those activities. Those persons, who have no property rights in the liquors sold, may make collections for their principals and receive commissions for their services, or may guarantee the payment of accounts, without being required to register or keep records under this part. In all such cases, however, the principal is required to register and keep records, as provided in this part, at each place where sales are consummated, unless the principal is exempt from those requirements under the provisions of this subpart. The persons covered by this section are: (a) Auctioneers who merely sell liquors at auction on behalf of others; (b) Agents or brokers who solicit orders for liquors in the name of a principal, but who neither stock nor deliver the liquors for which orders are taken; (c) Employees who merely sell liquors on behalf of their employers; and (d) Retail dealers in liquors or retail dealers in beer who merely receive and transmit to a wholesale dealer orders for liquors or beer to be billed, charged, and shipped to customers by such wholesale dealers. § 31.64 Apothecaries or druggists selling medicines and tinctures. Apothecaries and druggists who use wines or spirituous liquors for compounding medicines and in making tinctures that are unfit for use for beverage purposes are not considered to be dealers by reason of the sale of those compounds or tinctures for nonbeverage purposes. (26 U.S.C. 5002) § 31.65 Persons selling products unfit for beverage use. (a) Vendors not deemed to be dealers. No person selling or offering for sale for nonbeverage purposes products qualifying as unfit for use for beverage purposes under § 19.58 of this chapter shall be deemed, solely by reason of such sales, to be a dealer. (b) Restrictions. Any person who sells or offers for sale any nonbeverage products for use, or for sale for use, for beverage purposes, or who sells any of such products under circumstances in which it might reasonably appear that it is the intention of the purchaser to procure the product for sale or use for beverage purposes, must register and keep records as required under this part as a wholesale dealer in liquors, retail dealer in liquors, wholesale dealer in beer, or retail dealer in beer, as appropriate. § 31.66 Retail dealer selling entire stock in liquidation. No retail dealer in liquors or retail dealer in beer shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer by virtue of selling in liquidation that dealer's entire stock of liquors in one parcel, or in parcels, each of which embraces not less than the entire stock of distilled spirits, of wines, or of beer, which parcels may contain a combination of any or all such liquors, to any other dealer. A retail dealer making such sale or sales is not required to register or to keep records or submit reports of those sales. § 31.67 Persons returning liquors for credit, refund, or exchange. No retail dealer in liquors or retail dealer in beer, or other person, shall be deemed to be a wholesale dealer in liquors or a wholesale dealer in beer by virtue of a bona fide return of distilled spirits, wines, or beer to the dealer from whom the distilled spirits, wines, or beer were purchased (or to the successor of such vendor's business or line of merchandise) for credit, refund, or exchange; and the giving of such credit, refund or exchange shall not be deemed to be a purchase within the meaning of § 31.141 of this part. Except in the case of wholesale dealers in liquors required to keep records of their transactions under §§ 31.155 and 31.156, or retail dealers required to keep records under § 31.171, persons returning liquors as provided in this section are not required to keep records or submit reports of such transactions. (26 U.S.C. 5132) Subpart E—Places Subject to Registration § 31.71 Registration required at each place of business. Except as otherwise provided in § 31.43 and in subpart D of this part, registration is required under this part for each and every place where distilled spirits, wines, or beer are sold or offered for sale. No person may engage in any business for which registration is required until the place of business has been registered in accordance with this part. § 31.72 Place of sale. For purposes of this part, the place at which ownership of liquors is transferred, actually or constructively, is the place of sale. § 31.73 Place of offering for sale. Liquors are considered to be offered for sale at the place where they are kept for sale and where a sale could take place, and at any place where sales are in fact consummated. Liquors are not considered to be offered for sale by sending an agent out to take orders, or by establishing an office for the mere purpose of taking orders, so long as in each case the orders received are transmitted to the principal for acceptance at the place where that principal has registered under this part or where the principal is exempt from registration as provided in subpart D of this part. § 31.74 Places of storage; deliveries therefrom. Registration is not required under this part for warehouses and similar places that are used by dealers merely for the storage of liquors and that are not places where orders for liquors are accepted. When orders for liquors are received and duly accepted at a place that the dealer has registered under this part, the subsequent actual delivery of the liquors from a place of storage does not require registration at that place of storage. Except as otherwise provided in §§ 31.52 and 31.53, a dealer who registered a given place, and who makes actual delivery of liquors from a warehouse at another place, must register for the place where ownership of the liquors is transferred if there was no prior constructive delivery by the acceptance of an order for the liquors at the place covered by the existing registration. § 31.75 Dealer [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3AE9-17177. Public record. Not legal advice.