TTB Newsletter for May 1, 2020

COVID-19 Special Edition
Guidance on Destruction of Beer Due to COVID-19

This special edition announces new frequently asked questions (FAQs) regarding the destruction of unmerchantable beer and recovery of taxes paid, including the waiver of certain requirements for beer destructions and using beer to make hand sanitizer at a distillery.

FAQS ON DESTRUCTION OF BEER DUE TO COVID-19

Due to the business disruptions brewers are facing during COVID-19, we are waiving the requirement that brewers submit a Notice of Intent to TTB to destroy taxpaid beer in the marketplace, which also alleviates the 12-day waiting period required under TTB regulations. This waiver extends through July 1, 2020.

Further, we’ve received a number of questions from industry members regarding available options for unmerchantable taxpaid beer that is currently in the marketplace or at a wholesaler. The disposal of beer that is not returned to the brewer is considered a destruction off brewery premises and is authorized under existing regulations. This includes beer in kegs that may be destroyed by a wholesaler on the brewer’s behalf, as well as the transfer of taxpaid beer to a distilled spirits plant, which the distillery may use in the production of hand sanitizer.

See our new Beer Destruction FAQs for additional details including recordkeeping requirements and filing claims to recover taxes paid under this alternate procedure.

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