AMENDMENT OF REGULATIONS
IN 26 CFR PART 198
Proprietors of Volatile Fruit-Flavor Concentrate
Plants and others concerned:
This circular is being issued to advise you of the publication in
the Federal Register for June 30, 1967, of Treasury Decision 6923,
amending the regulations in 26 CFR Part 198, Production of Volatile
Treasury Decision 6923 amended Part 198 by liberalizing the
provisions of § 198.114, having to do with the removal of concentrate,
and by adding a new section, § 198.114a, incorporating the provisions of
Revenue Ruling 65-253, having to do with the addition of water to
concentrate in order to achieve compliance with the limitations of
§§ 198.114 and 198.116.
Under the amendments, concentrate having not more than 15 percent
alcohol by volume may be removed from the concentrate plant without
the addition of any substance, unless the concentrate is found to be fit
for use as a beverage. This will replace the rule which now states that
concentrate may not be removed without the addition of a substance if the
concentrate has over 6 percent alcohol by volume.
The amendments made by Treasury Decision 6923 become effective
August 1, 1967.
For your information and guidance, a reprint of Treasury Decision
6923 is being printed and will be furnished to you when it is available.
Inquiries regarding this circular should refer to its number and be
addressed to your Assistant Regional Commissioner, Alcohol and Tobacco
Harold A. Serr
Director, Alcohol and Tobacco Tax Division