PART III ALCOHOL TAX RULINGS AND DECISIONS SUBPART A.-RULINGS AND DECISIONS UNDER THE INTERNAL REVENUE CODE OF 1954 Rulings and decisions published in Part III, Subpart A, of the Internal Revenue Bulletin are based on the application of provisions of the Internal Revenue Code of 1954 and, unless otherwise noted therein, are published without consideration as to any application of the provisions of the Internal Revenue Code of 1939, the Federal Alcohol Administration Act, or other public laws. SECTION 5195.-RESTRICTIONS RELATING TO OPERATIONS [DISTILLED SPIRITS, WINES, AND BEER] 26 CFR 220.779: Removal of spirits at night. (Also Sections 220.366a, 225.351a, 225.582) Rev. Rul. 59-115 Section 5195 (b) of the Internal Revenue Code of 1954, provides that no person shall remove any distilled spirits, at any other time than after sunrising and before sunsetting in any cask or package containing more than ten gallons, from any premises or building in which the same may have been distilled, redistilled, rectified, compounded, manufactured, or stored. Section 220.779 of the Distilled Spirits Regulations and section 225.582 of the Warehousing of Distilled Spirits Regulations provide that distilled spirits may not be removed at any other time than after sunrise and before sunset, in any cask or package containing more than ten gallons from any internal revenue bonded warehouse, or from any premises or building in which they have been distilled, redistilled, rectified, compounded, manufactured, or stored. Section 220.366a of the Distilled Spirits Regulations and section 225.351a of the Warehousing of Distilled Spirits Regulations further provide that the distiller or proprietor is to furnish daily to the storekeeper-gauger in charge, a schedule of operations which shall show all activities which require the immediate supervision or attention of a storekeeper-gauger. Held, a distiller or proprietor of an internal revenue bonded warehouse may remove taxpaid distilled spirits, by pipeline, from the cistern room of his distillery and from his internal revenue bonded warehouse to his contiguous rectifying plant or taxpaid bottling house at night, when the removal takes place under storekeeper-gauger supervision. Where the distiller finds it necessary to remove spirits by pipeline after regular business hours when a storekeeper-gauger is not normally as signed to the plant, he should make special application to the appropriate Assistant Regional Commissioner, Alcohol and Tobacco Tax, requesting permission for such operation and showing the necessity therefor. 26 CFR 220.366a: Distiller's schedule of operations. Removal of distilled spirits at night by pipeline. See Rev. Rul. 59-115, page 28. 26 CFR 225.351a: Proprietor's schedule of operations. Removal of distilled spirits at night by pipeline. See Rev. Rul. 59-115, page 28. 26 CFR 225.582: Restrictions on removal at night. Removal of distilled spirits at night by pipeline. See Rev. Rul. 59-115, page 28. SECTION 5304.-ALCOHOL PERMITS 26 CFR 182.860: General. Rev. Rul. 59-116 The Internal Revenue Service prescribed requirements to be followed by manufacturers of toilet preparations in stating names and addresses, multiple permit numbers, state abbreviations, and trade names on labels of toilet products. Advice has been requested regarding the labeling requirements for toilet preparations. Section 182.860 of the Regulations relating to Industrial Alcohol provides, among other things, for the bottling, rebottling, repackaging, etc., of products such as bay rum, lilac vegetal, hair lotions, dry shampoos, deodorant sprays, skin lotions, perfumes, toilet waters, and similar products made with specially denatured alcohol. Section 182.861 provides in part that bottles and other containers of the products specified in section 182.860 of the regulations shall be labeled to show the name and address of the original manufacturer, or the basic permit number of such manufacturer and the name and address of the person by or for whom the bottles or other containers are filled. The term "*** address of the original manufacturer ***" as used in section 182.861 of the regulations refers to the location of the actual permit premises where the products are made and not to the address of the principal office of the company, if located elsewhere. As a matter of label economy, multiple permit numbers and multiple addresses may be stated on labels of a toilet product manufactured by the same company at several plants. Such manufacturers may state the name and the address of one permittee and the permit numbers of the other permit premises at which the product is made. so that the same label may be used by all plants, or they may show the name and all the addresses of the permit premises where the product is made. Multiple permit numbers and multiple addresses may not be used when products are to be labeled under names other than that of the original manufacturer. In stating his permit number on the label, a manufacturer may substitute, for the abbreviation of the name of the state, the number assigned to such state below. For example, SDA-CONN-1234 may be stated on the label as SDA-07-1234. The numbers which may be substituted for the abbreviation of each state, territory, or possession are set out below: Although the appropriate listed number may be substituted for the state abbreviation in stating permit numbers on labels, the abbreviation of the state name must be used on all forms and records where the permit number is required to be shown, and in all correspondence relating to specially denatured alcohol problems. When a permittee operates the same premises under one or more trade names (as shown by his basic permit and by Form 1479-A, Formula for Preparation Made with Specially Denatured Alcohol), each trade name may be stated on the label of his products as the name of the manufacturer. For example, if The Bestever Cosmetic Company, Richmond, Virginia, manufactures toilet products under the trade name Carroll Smith, Inc., at Richmond, Virginia, such products may be labeled "Carroll Smith, Inc., Richmond, Virginia," and in such case the permit number need not be shown. This of course applies only where the manufacturing address is stated. Permit numbers must appear on labels used on the actual package (bottle, can, jar, etc.) containing the product, and not on disposable wrappings or cartons alone. There is no objection to the use of auxiliary labels for permit numbers. These labels may be placed on the back or bottom of containers. Permit numbers may be shown on the backs of labels only if the containers and contents are so transparent that the number is plainly legible from the opposite side of the container. The permit number may be molded into the bottom of glass or plastic containers. SECTION 7805.-RULES AND REGULATIONS 26 CFR 170.186: Authorized consolidation. Rev. Rul. 59-117 Section 170.186 of the Miscellaneous Regulations Relating to Liquor provides, in part, that within eight years of the date of original entry for deposit, and with the prior approval of the internal revenue officer in charge, packages of spirits of the same kind, distilled by the same proprietor (under his own or any trade name) at the same distillery, and which have been stored in internal revenue bond in the same kind of cooperage for not less than four years (or two years in the case of rum or brandy) may, as provided in sections 170.185 through 170.196 of the regulations, be dumped and mingled in a warehouse tank, and immediately repackaged in as many as necessary of the packages from which dumped, for further storage in bond. Held, when packages are being filled with mingled spirits in a continuing consolidation program, where the original components of each lot would be eligible for mingling with each other, and it becomes evident that the last package would not be filled to capacity if the tank were drained, the proprietor may determine the gauge of the spirits remaining in the tank, in a quantity less than a full package, and treat such spirits as a part of the succeeding lot to be mingled in that tank. If the original components of the heel are not eligible for mingling with the components of the succeeding lot, or if the consolidation operations are discontinued, the spirits remaining must be drawn off into a remnant package as provided in the regulations. Entries on Form 2323, Mingling of Distilled Spirits, must be appropriately modified to reflect the operation. SUBPART C.-RULINGS AND DECISIONS UNDER THE FEDERAL ALCOHOL ADMINISTRATION ACT Rulings and decisions published in Part III, Subpart C, of the Internal Revenue Bulletin are based on the application of provisions of the Federal Alcohol Administration Act. SECTION 5(e).-UNFAIR COMPETITION AND UNLAWFUL PRACTICES: LABELING. 27 CFR 4.39: Prohibited practices. Filing of certificates of origin and identity and certificates of vintage dates for imported wines. See Rev. Proc. 59-9, page 34. 27 CFR 4.45: Certificates of origin and identity. Filing of certificates of origin and identity and certificates of vintage dates for imported wines. See Rev. Proc. 59-9, page 34. |