DISCONTINUANCE OF DENOMINATIONS OF RED STRIP STAMPS
Importers and others concerned:
Purpose. The purpose of this circular is to advise you of the proposed
discontinuance of denominational red strip stamps, other than stamps for
containers of less than 1/2 pint capacity, and of the designing and printing of a
new nondenominational stamp for all bottles of 1/2 pint or greater capacity.
This circular also will inform you (1) of the manner of procuring stamps in the
future, (2) of the plans for using up existing stocks of stamps, and (3) of the
necessary changes in the manner of reporting stamps.
Background. The discontinuance of denominational stamps is expected to
result in savings to the Government and in greater flexibility in the use of the
stamps by the industry. Such discontinuance is reflected in the revisions of the
regulations proposed to be effective July 1, 1960; however, the change was made
subsequent to completion of the design of the July 1960 revision of Form 96.
Therefore, instructions on the July 1960 revision of Form 96 do not take into
account the nondenominational stamps or the need for a report of the number of
each size of bottles entered into the United States with stamps affixed or to which
stamps are affixed in customs bond.
Procurement and Use of Stamps. In order that the stocks of denominational
stamps may be used up, you should continue to requisition stamps on Form 428
by denomination until further advised by this office. As stocks bearing denomi-
nations 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. However, we expect, sometime
after July 1, to make a complete changeover to the new stamp and, at that time,
instructions will be issued for the disposition of denominational stamps
remaining on hand.
Reporting of Stamps on Form 96. Under the proposed new regulations,
Form 96 is prepared annually as of June 30, unless more frequent reporting is
required by the collector of customs. The following instructions apply to reports
rendered under the new regulations; they do not apply to your report submitted
in July for the month of June 1960, which will be prepared as heretofore. Also
the instructions do not apply to stamps of less than 1/2 pint denomination.
Stamps of less than 1/2 pint denomination will continue to be reported in
exactly the same manner as they, have been reported in the past.
(a) Form 96, Section I. For the purpose of reporting stamps in "Section I
Form 96, you will consider denominational stamps, and the new stamps not
bearing" denominations, all as "standard size" stamps. All such standard size
stamps should be reported in an otherwise unused column, and we prefer that
you use the "gallon" column, redesignating it "standard size". Thus, in re-
porting stamps on hand at the beginning of the period, the sum of the quantities
of denominational stamps unaccounted for on the last day of June 1960 will be
reported as one total of stamp on hand July 1, 1960, at line 1 in the redesig-
nated column, on your first report under the new regulations. In addition to
reporting in that column at lines 5(a) and 5(b) the total of all such stamps for
which credit is taken as "used during period", you will report by sizes, under
the appropriate denominational heading at lines 5(a) and 5(b), the number of
of bottles by sizes received from abroad to which stamp were affixed, or the
number of bottles, by sizes, to which stamps were affixed in customs bond.
The sum of the denominational entries at lines 5(a) and 5(b) (exclusive of the
less than 1/2 pint entries), will then equal the entry on the same lines in the
column designated "standard size".
In the event you receive gallon bottles you should redesignate another
column as the "standard size" column instead of the "gallon" column.
(b) Form 96, Section II. For the purposes of Section II, denominational
stamps that remain outstanding will continue to be accounted for by denomina-
tions. Nondenominational stamps that remain outstanding shall be accounted for
in an unused column redesignated as "standard size".
Inquiries. Inquiries in regard to this industry circular should refer to its
number and be addressed to your assistant regional commissioner (alcohol and
Dwight E. Avis
Director, Alcohol and Tobacco Tax Division