PROPOSED AMENDMENT OF REGULATIONS IN 26 CFR PARTS 250 AND 251
To importers and others
Purpose. The purpose of this industry circular is to acquaint you
with some important changes proposed to be made, effective July 1,
1960, in 26 CFR Part 250, Liquors and Articles from Puerto Rico and the
Virgin Islands, and in 26 CFR Part 251, Importation of Distilled Spirits,
Wines, and Beer. These changes are described below.
Red Strip Stamps.
- Denominations, Denominational red strip stamps for bottles of
distilled spirits having a capacity of 1/2 pint or more are being dis-
continued. Instead, one standard size stamp will be printed for use on
such bottle sizes. Discontinuance of the printing of the denominational
stamps is reflected by the proposed changes in the regulations. We are
issuing a separate Industry Circular to inform you of the manner of
procuring stamps in the future, of the intended use of existing stocks
of denominational stamps, and of the necessary changes in the manner of
- Transferring Strip Stamps. Provisions are being made for an
importer to transfer strip stamps in the hands of one bottler to another
bottler without returning the stamps to the United States.
- Foreign-trade zones. Provision is being made for crediting of
the importer's stamp account for strip stamps on containers of distilled
spirits from abroad when the containers are entered into a foreign
trade zone. At present, credit for such stamps is obtainable only when
the containers are transferred from the trade zone to customs custody.
- Diversion to other ports. More expeditious procedures are
being provided for reporting diversion of stamped spirits to a port other
than the port of requisition of the stamps. Under these procedures, you
must file Form 1627A directly with the collector of customs at the port
of diversion, rather than with the collector at the port of requisition.
We have also provided a "follow-up" procedure for you to use where you
have not, within two months of the time spirits were entered, received
notice that your strip stamp account may be credited,
- Records. Part I of Form 96 is being eliminated. In lieu there-
of, the importer will be required to keep records of daily receipts and
disposition of strip stamps. This record may be a commercial record; no
particular format is prescribed.
- Reports. Importers procuring stamps for affixing to bottles
in foreign countries, in the Virgin Islands, or in customs bond will
be required to submit only an annual report on Form 96 (for the year
ending June 30), instead of the present monthly report, unless the
collector of customs deems it necessary to require reporting at more
frequent intervals. (Strip stamps procured for affixing to bottled
spirits in Puerto Rico are reported by Insular Officers on Form 2260;
therefore, those procedures are not discussed in this Circular.)
- Accounting for stamps. The amended regulations will provide
that importers will account to the collector of customs for all strip
stamps within 18 months of the date they are requisitioned. Failure
to properly account for the strip stamps within the 18 month period,
or within such extension of time as may be granted, will be grounds
for rejection of further applications to procure strip stamps.
- Marking cases. Requirements relating to marks to be affixed
to cases of distilled spirits by the foreign bottler or exporter are
revised. However, where cases have been printed up for use in
accordance with the regulations in effect prior to the effective date
of these proposed amendments, such cases may be used until the present
stock is exhausted.
- Forms 96, 428, 1627, and 1627A, have been revised and the
revised forms will be used by importers for transactions occurring on
and after July 1, 1960. However, the report of strip stamps for the
month of June 1960, even though it is submitted in July, shall be sub-
mitted on the present Form 96 (revised June 1957), pursuant to present
regulations. Stocks of these revised forms have been furnished to the
assistant regional commissioners (alcohol and tobacco tax), and may be
obtained from them.
- You were previously advised by Industry Circular No. 60-4 of
the necessity for procuring at your own expense Forms 52A, 52B, and
338, which are being revised as of July 1, 1960. The revised forms
will be used, where necessary, for reporting transactions occurring
on and after July 1, 1960. Sample copies of these revised forms are
available in the office of the assistant regional commissioner (alcohol
and tobacco tax),
Inquiries. Inquiries concerning this circular should refer to its
number and be addressed to your office of the assistant regional com-
missioner (alcohol and tobacco tax).
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division
IRS - D. C. - 58887