REGULATIONS EFFECTIVE JULY 1, 1960
Proprietors of distilled spirits plants,
and others concerned:
Purpose. This circular is issued (a) to advise you of the status
of our current regulations program, as it relates to distilled spirits
plants, (b) to introduce to you the new "Distilled Spirits Stamp" and
the nondenominational red strip stamp, and (c) to summarize for you the
requirements relating to use of trade names.
Companion Circulars. Two other circulars relating to distilled
spirits plants are being issued, one relating to required records and
reports, and the other to the forms prescribed by the new, complete,
distilled spirits plant regulations, 26 CFR Part 201.
New and Revised Regulations. Complete revisions of, or important
amendments to, all major regulations relating to or affecting distilled
spirits plants will be issued effective July 1, 1960. The principal items
in this program are:
- 26 CFR Part 201. "Distilled Spirits Plants". The regula-
tions in this part will supersede the regulations in
26 CFR Part 170 which relate to (a) pilot and experimental
operations, (b) consolidation of packaged distilled spirits,
and (c) the interim rules for payment by return of taxes
on distilled spirits and rectified products. They will also
supersede the regulations in existing 26 CFR Parts 182, 216,
220, 221, 225, 230, 235, the 1959 edition of Part 201, and
the regulations in 26 CFR Part 171 which relate to emergency
transfers of distilled spirits.
- 26 CFR Part 186. "Gauging Manual". This regulation is
being extensively revised to incorporate therein all of
the provisions relating to the mechanical operations of
gauging. These provisions will no longer be contained in
any of the other regulations.
- 26 CFR Part 211 "Distribution and Use of Denatured Alcohol
and Rum", and 26 CFR Part 213. "Distribution and Use of Tax-
Free Alcohol". These are the new regulations governing the
withdrawal and use by permittees of denatured and tax-free
spirits. This material is presently contained in 26 CFR Parts
182 and 216. (Separate industry circulars are being issued on
- 26 CFR 252. "Exportation of Liquors". This regulation
is being extensively revised to incorporate therein all of
the provisions relating to exportation of spirits (including
denatured spirits), wines, and beer, (A separate industry
circular is being issued on this regulation.)
Statue of Existing Qualified Plants. Distilled spirits plants
qualified to operate on June 30, 1960, may continue to operate after the
effective date of the new regulations pursuant to their prior qualifica-
tion. New plants established on or after July 1, 1960, and all changes
in established plants on or after such date, must conform to the provi-
sions of the new regulations.
Stamps on Packages and Bulk Containers. The present wholesale liquor
dealer's stamps and export stamps, used on packages and bulk containers,
are being supplanted, effective July 1, 1960, by a new "Distilled Spirits
The new "Distilled Spirits Stamp" will be required:
- On each package and each tank car, tank truck, or other
bulk conveyance of spirits withdrawn from bond pursuant
to a Form 179 or a Form 206,
- On the outside casing of each encased container of spirits
for industrial use withdrawn from bond pursuant to a Form
179 or a Form 206, and
- On each bulk container (5 wine gallons or more) of spirits
filled on bottling premises for removal therefrom, including
containers filled for export with benefit of drawback.
The internal revenue officer assigned to your plant will keep
a supply of distilled spirits stamps on hand and will issue them to
you on receipt of the appropriate withdrawal or removal form. Rules
for affixing and cancelling the stamps are similar to present require-
ments for package stamps; the stamps, however, will not have a cut-out
portion for scalping.
If the spirits to be stamped are being withdrawn pursuant to a
Form 206 you are required to insert the word "Export" on the stamp.
If the spirits are being removed from bottling premises you must insert
"Filled on Bottling Premises" and if the spirits have been rectified
you must also insert "Rectified Product".
Red Strip Stamps. Denominational red strip stamps, other than stamps
for containers of less than 1/2 pint capacity, are being discontinued, and
a new nondenominational stamp is being printed to replace them. This
change is expected to result in savings to the Government and in greater
flexibility in the use of stamps. The small "less than 1/2 pint" stamp
is being retained without change and will be used in the same manner as
The new stamps will come into use gradually as our present stocks
of denominational stamps are exhausted. You should continue to requisi-
tion stamps on Form 428 by denomination. As our stocks bearing denomina-
tions are depleted, the new nondenominational stamps will be issued. You
will continue to use red strip stamps of a particular denomination as long
as such denomination is furnished to you and until your stock is exhausted
or you are instructed to make other disposition of them. When depletion
reaches a point where it is practical to do so (this will be some time
after July 1, 1960), we will issue instructions for a complete changeover
to the new stamp, and you will be advised at that time as to the disposi-
tion of any denominational red strip stamps remaining in your possession.
Bottled-in-Bond Strip Stamps. Denominations on bottled-in-bond strip
stamps are being retained, and the present requirements relating to
bottled-in-bond strip stamps will remain basically the same as at present.
Alcohol Strip Stamps. The use of white strip stamps for bottles
of alcohol will be continued, but after July 1 you will no longer be
required to overprint or otherwise place on the stamps the registry
number and name of the proprietor of the warehouse. Because of this
change, a new alcohol strip stamp is being printed. Also, beginning
July 1, you will procure your alcohol strip stamps from the district
director by requisition on Form 428, in the same manner as has been pro-
vided for bottled-in-bond and red strip stamps. We expect to have the
new stamp available for use on or about July 1, however you may continue
to use the present stamp during the necessary transition period.
Stamps applied to bottles of alcohol to be exported will be over-
printed with the word "EXPORT".
USE OF TRADE NAMES
General. Where a trade name is to be used in connection with
operations at a plant for which an operating permit is required, the
proprietor must list such trade name on Form 2603 in accordance with
the provisions of section 201.146. Where any distilling, warehousing,
or bottling operation is required to be covered by a basic permit under
the Federal Alcohol Administration Act, regulations issued under such
Act govern the approval and use of trade names in such operations.
Operations may not be conducted under a trade name until the proprietor
is in possession of an operating or basic permit, as applicable, cover-
ing the use of such name. Trade names authorized by an operating permit
may be used only in connection with operations conducted under such permit,
and trade names authorized by a basic permit may be used only in connec-
tion with operations conducted under that permit; also, trade names
authorized for specific operations (such as production, rectification,
or bottling) may not be used in connection with other operations.
Industrial Spirits. Containers of industrial spirits of 190 degrees
of proof or more may be marked at the time of production gauge with the
real name or any authorized trade name of the producer. Containers of
such spirits may, when filled in bonded storage, be marked with the real
name or any authorized trade name of the bonded warehouseman.
Bonded Premises - Production. A producer may place either his real
name or any authorized trade name on any package filled at the time of
production gauge or at the time the spirits are packaged in wood after
having been entered into bonded storage under the provisions of section
201.270. No alternation of production facilities between trade names will
Each Form 2630 reporting package gauges must show the real name of
the producer, and, if the spirits were produced under a trade name,
Form 2630 must also show such trade name. A separate Form 2630 should
be prepared for each name under which spirits are produced.
Bonded Premises - Storage. When homogeneous spirits are mingled
under section 201.297 or when spirits are mingled for consolidation under
section 201.301, you may use any of the names (as marked on the packages
dumped) represented in the mingled spirits - but no other name - as the
name of the producer to be marked on packages filled with such mingled
spirits; except that if you were also the actual producer of the spirits,
you may in any such instance use your real name. Homogeneous spirits
mingled under section 201.297 which were originally produced and ware-
housed under different names may not be bottled in bond unless the
name on the packages of such mingled spirits is the producer and real
name. Each Form 2630 covering the gauge of packages of spirits mingled
in storage facilities must show the real name of the producer and the
trade name, if any, marked on the packages.
When spirits are to be transferred in bond and Form 1620 or 2630
is required, each such form must show the real name of the producer,
and if the cases or packages of spirits are marked with a trade name,
the form must also show such trade name.
Bottling in Bond. The label on bottled-in-bond spirits should
bear either the real name of the actual distiller or the trade name
under which the spirits were produced and warehoused, as provided in
section 201.332. The name of the distiller overprinted on bottled-in-
bond strip stamps and the name of the distiller shown on cases (if so
marked) must be identical with the name shown on the label.
Bottling Premises. Before a proprietor may rectify, bottle, label,
or package spirits or wines under a trade name, he must secure approval
of such name. The trade name (or names) under which a batch of spirits
or wines is to be rectified must be shown on Form 122, and the trade
name (or names) under which a lot of spirits or wines is to be bottled
or packaged must be shown on Form 2637. Form 2637 must show the serial
numbers of the cases or packages of spirits or wines bottled or packaged
under each trade name.
Regulations issued under the Federal Alcohol Administration Act
(27 CFR Part 5) contain provisions relating to the use of trade names
on labels, and these provisions are not changed by the July 1, 1960,
The name on the case, if shown, should conform to the name shown
on the label on the bottled spirits.
Inquiries regarding this industry circular should refer to its number
and should 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. - 58827