CONSOLIDATION OF PACKAGED DISTILLED SPIRITS
Proprietors of internal revenue bonded
warehouses, and others concerned:
Purpose. The purpose of this industry circular is to inform you that the
amendments to warehousing regulations (26 CFR Part 225), which were
published in the Federal Register on February 5, 1957, in the form of a notice
of proposed rule making, have been adopted, with one major change, by
Treasury Decision 6241, effective June 29, 1957. The notice of proposed
rule making was discussed in Industry Circular No. 57-4, dated February 13,
"Open-end" tanks. After publication of the notice it was determined that
the requirements concerning deposits in tanks were unnecessarily restrictive.
Accordingly, the proposal was modified so that tanks used for consolidation
and tanks used for storage need not be emptied before an additional lot of
spirits can be deposited therein, if the spirits in the lot to be added are
homogeneous with the spirits in the tank and, except in the case of spirits
that had been produced at 190° or more of proof (neutral spirits), are of the
same distilling season. The amendment provides that spirits in such tanks will
be accounted for on a first-in, first-out basis, by lots.
Form 2323. A new form, "Consolidation of Packaged Distilled Spirits,"
is prescribed for use by proprietors when distilled spirits in packages are to
be dumped for consolidation.
Inquiries. Inquiries regarding this industry circular should refer to the
number shown in the heading, and be addressed to the office of your assistant
regional commissioner (alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS D. C. 29884