AFP22

Yes, but only under certain specific circumstances. Under 26 U.S.C. 5181(e), spirits from an AFP must be both rendered unfit for beverage use and used only for fuel purposes upon withdrawal from any AFP or DSP. Therefore, spirits produced or received by an AFP may be subsequently withdrawn for exportation only if the spirits are first rendered unfit for beverage use prior to the withdrawal and only if the resulting product is used for fuel purposes after the withdrawal.

The prohibition on withdrawing spirits from an AFP that have not been rendered unfit for beverage use cannot be circumvented by transferring said spirits to a distilled spirits plant in bond and then withdrawing the spirits (without being rendered unfit for beverage use) from the DSP. This is true because 26 U.S.C. 5181(e)(1) requires that spirits from an AFP must be used for fuel purposes after withdrawal and because 26 U.S.C. 5181(e)(2) specifically uses the term "distilled spirits plant" (which includes AFPs and DSPs) when setting forth the requirement that spirits must be rendered unfit for beverage use prior to withdrawal from the bonded premises.

People Also Asked …

1. Can distilled spirits that have not been rendered unfit for beverage use, and that were produced at or received by an AFP, be withdrawn from an AFP for exportation?
2. Are there any exportation forms for an AFP?
3. Can distilled spirits that are produced or received by an AFP but not rendered unfit for beverage use be transferred to a DSP and then exported without being rendered unfit for beverage use?