Beer Industry

(Example #1)

Filed by Host Brewery

Department of the Treasury
Alcohol and Tobacco Tax and Trade Bureau
8002 Federal Office Building
550 Main Street
Cincinnati, OH 45202

Re: Application to Use Brewery for Other Purposes

TTB Representative:

On behalf of __(Host Brewery)__ and pursuant to 27 CFR 25.23(c), "Restrictions on Use - Application", we respectfully submit this application to use the _(Host Brewery)_ brewery for a purpose other than those listed in Section 25.23(a) with respect to the alternating proprietorship between _(Tenant)_ and _(Host Brewery)__ at _(Host Brewery Location Address)__.

27 CFR 25.23(b) provides that a brewery may be used for other purposes that are reasonably necessary to realize the maximum benefit from the premises and equipment and reduce the overhead of the brewery. In order to utilize our brewery to its maximum benefit, we have entered into an alternating proprietorship with Applicant. In connection with the alternation, __(Tenant)__ is required to maintain its records at its premises. Consequently, __( Tenant)__ will be utilizing a location at _(Host Brewery)_ premises for retention of its records. Such location will be permanently alternated to _(Tenant)__. In addition, _(Host Brewery)_ employees will be preparing the required records for __(Tenant)__ on the premises of _(Host Brewery)_, pursuant to powers of attorney from __( Tenant)__.

We request that this alternate method of operation to use a certain portion of our premises for retention of records by _(Tenant)__ and for our employees to prepare records for __(Tenant)__ be approved. Such use by __(Tenant)__ will ensure accurate record keeping by __(Tenant)__ and _(Host Brewery)_, and will provide a centralized location for inspection of the records by TTB. Consequently, such use will not impede effective administration of regulations and will not jeopardize revenue interest.

We understand that approval of the above request for an alternate method of operation may be rescinded at any time should TTB determine that there is administrative difficulty or jeopardy to the revenue.

Sincerely,

 

(Example #2)

Filed by both the Tenant & Host Breweries

Department of the Treasury
Alcohol and Tobacco Tax and Trade Bureau
8002 Federal Office Building
550 Main Street
Cincinnati, OH 45202

Re: Request for Alternate Method of Operation - Change in Premises

Gentlemen:

On behalf of ____(Filing Brewery name) __ and pursuant to 27 CFR 25.52 "Variation from Requirements", we respectfully request approval of an alternate method of operation from that prescribed at 27 CFR 25.78, "Change in Premises," with respect to the alternating proprietorship between _(Tenant)_ and _(Host Brewery)_ at _(Host Brewery Location Address)_.

Specifically, the __(Filing Brewery)__ requests approval of an alternate method of operation from the requirement that an amended Form 5130.10 be filed with the Director, National Revenue Center for approval upon each alternation. Rather, __(Filing Brewery)__ requests that it be allowed to use its records of the brewing and packaging process, which will be generated upon each alternation, as notice of the alternation. The daily records generated will accurately reflect the date and time of each alternation. These records will be readily available for inspection by TTB officers.

__(Filing Brewery)__makes this request due to the on-going nature of the brewing process and the inability to determine the exact time that a specified piece of equipment or area will be alternated; it would be impracticable for __(Filing Brewery)__ to obtain prior approval for each alternation. Furthermore, the brewing process for one batch will result in a different piece of equipment or area being alternated either hourly or daily. It would be impracticable for __(Filing Brewery)__ to file an amended Form 5130.10 every hour or day during the brewing process.

We request the above alternate method of operation be approved since such approval will not impede effective administration of regulations and will not jeopardize the revenue. The Applicant's and Host records will be readily available for inspection by TTB officers. In addition, even though amended Form 5130.10 will not be filed, the daily records and monthly records will accurately reflect the amount of beer on which federal excise taxes must be paid. Finally, no provision of law will be violated by the use of the daily records as notice of alternation.

We understand that approval of the above request may be rescinded at any time should TTB judge that there is administrative difficulty or jeopardy to the revenue.

Sincerely,


(Example #3)

Filed by Tenant Brewery

Department of the Treasury
Alcohol and Tobacco Tax and Trade Bureau
8002 Federal Office Building
550 Main Street
Cincinnati, OH 45202

Re: Notice of Alternation

Gentlemen:

_(Tenant Brewer)_ is establishing an alternating proprietorship at _(Host Brewery)_ located at _(Address/City/State)_. The Brewer's Notice and related documents, including an enforceable Bond and Consent of Surety, have been submitted.

The purpose of this letter is to provide you with the following information with respect to the alternation:

  • The name of the brewery is ________, a (State) corporation/LLC (as applicable). ________ has filed a qualification to do business in _(State).

 

  • We estimate that we will brew no more than _______ barrels in the first year of alternation.
  • Upon approval of the pending Brewer's Notice, we will file a certificate of label approval with TTB for any brands produced under the alternation. Prior to production, we will file a formula with TTB for any specialty products to be produced.

 

  • The alternation will be simultaneous with __(Host Brewery)__ operations as described in the Brewer's Notice.
  • All packaged products will be identified in a segregated bay at _(Host Brewery or other location)_ warehouse for pick-up by our wholesalers.

 

  • All brewing and packaging daily records and reports will be kept at a location permanently alternated to us at _(Host Brewery)_ premises for inspection by TTB officers. We will prepare and file separate brewer's reports of operations and separate excise tax returns.

All of the above information has been incorporated into the pending Brewer's Notice.

We have received and read TTB Industry Circular 2005-2, Alternating Proprietors at Brewery Premises. Tenant certifies that (check one):

  • __(Tenant Brewery)_ is not a member of a controlled group of breweries as defined in 27 CFR 25.152(b)(1) in which the host brewery, __(Host Brewery)_ is a member. The guidelines contained in Industry Circular 2005-2 apply to Tenant and are incorporated into this request for an alternate method of operation.

OR

  • _(Tenant Brewery)_ is a member of a controlled group of breweries as defined in 27 CFR 25.152(b)(1) in which the host brewery _(Host Brewery)__ is a member.

 

We request approval to proceed with this alternation.

Sincerely,


EXAMPLE #4

Optional – Tenant will fill out only when Host will be providing recordkeeping for applicant

Department of the Treasury
Alcohol and Tobacco Tax and Trade Bureau
8002 Federal Office Building

550 Main Street

Cincinnati, OH 45202

Re: Variance Request - Recordkeeping

Gentlemen:

On behalf of __ (Tenant Brewery)__ and pursuant to 27 CFR 25.52 "Variation from Requirements", we respectfully request approval of an alternate method of operation from that prescribed at 27 CFR 25.300(a), "Retention and Preservation of Records - Place of Maintenance," with respect to the alternating proprietorship between (Tenant Brewery)_ and _(Host Brewery)_ at _(Address/City/State)_.

27 CFR 25.300(a) provides that records required under Part 25 must be prepared and kept by the brewer at the brewery where the operations or transaction occurs. In connection with the alternation, _(Host Brewery)_ employees, under power of attorney from _(Tenant Brewery)_ will be preparing records for us. It would be impracticable for us to hire new employees to prepare records for our infrequent operations at the _(Host Brewery)_ brewery. Furthermore, our records will be prepared by extracting information from the regularly kept records by _(Host Brewery)_. When such records are prepared, the _(Host Brewery)_ employees will in all likelihood be present on the _(Host Brewery)_ premises. The records will, however, be maintained and available for inspection by TTB officers at a permanent non-alternation _(Tenant Brewery)_ location.

We respectfully request the above alternate method of operation be approved since such approval will not impede effective administration of regulations as the our records will at all time be maintained and available for inspection by TTB officers at the _(Host Brewery)_ premises. In addition, because this request is sought to enhance accurate record keeping for __(Tenant Brewery)__, such approval will not jeopardize the revenue. Finally, such approval is not in violation of any provision of law.

We understand that approval of the above variance may be rescinded at any time should TTB determine that there is administrative difficulty or jeopardy to the revenue.

Sincerely,

 

Page last reviewed/updated: 01/22/2015

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