DESIGNATING, RECORDING, AND REPORTING OF SPIRITS
OF THE CLASS AND TYPE DESIGNATIONS "LIGHT WHISKY"
AND "GRAIN SPIRITS" WHILE IN BOND
Proprietors of distilled spirits plants
and others concerned:
Purpose. The purpose of this industry circular is to announce the
publication of a revenue ruling respecting the use of the designations
"light whisky" and "grain spirits" for spirits while in bond.
Substance of ruling. Revenue Ruling 68-121, which will be published in
Internal Revenue Bulletin No. 1968-10, dated March 4, 1968, reads as
"Treasury Decision 6945 amended 27 CFR 5.21, among other things, by
providing a new class and type designation 'grain spirits' (27 CFR 5.21(a)
(2)), and a new class and type designation 'light whisky' (27 CFR 5.21(b)
(11)). The amendatory language establishing such designations does not
become effective until July 1, 1972.
"Under 26 CFR 201.517(a), the class and type designations set forth in
27 CFR Part 5 are to be used, with certain specified exceptions, for
identifying spirits as to kind for purposes of Part 201. Under 26 CFR
201.517(c), if a proprietor proposes to produce spirits for which a designation has not been prescribed, he shall apply to the Director, Alcohol and
Tobacco Tax Division, for a designation for such spirits and they shall be
"The Director has determined that distilled spirits coming within the
class and type 'light whisky' as prescribed in 27 CFR 5.21(b)(11) shall,
for purposes of identification while in bond, be designated as 'light
whisky,' if produced on or after January 26, 1968. Accordingly, all such
spirits shall be branded, recorded, and reported as 'light whisky.' No
request for the use of such designation under 26 CFR 201.517(c) need be
filed. Spirits produced prior to January 26, 1968, may not be so designated.
"26 CFR 201.517(a)(2) provides that the designation for neutral spirits
shall include a word or phrase descriptive of the material from which the
spirits were produced. Further, 26 CFR 201.517(a)(3) provides that spirits
distilled at less than 190 degrees of proof which lack the taste, aroma,
and other characteristics of whisky, brandy, rum, or gin, may be designated
'Spirits,' preceded or followed by a word or phrase descriptive of the
material from which produced. Spirits coming within the classification
of 'grain spirits' under 27 CFR 5.21(a)(2) would differ from those which
could be so classified under 26 CFR 201.517(a)(3). Therefore such spirits,
i.e., those which will be designated as 'grain spirits' under 27 CFR 5.21
(a)(2), shall, for purposes of identification while in bond, be designated
as 'neutral spirits-grain' in accordance with 26 CFR 201.517(a)(2). The
date of production will be relied on in determining the eligibility of
such spirits to a designation on labels as 'grain spirits' on and after
July 1, 1972, the effective date of the amendment."
Inquiries. Inquiries concerning this industry circular should refer to its
number and be addressed to the appropriate Assistant Regional Commissioner,
Alcohol and Tobacco Tax.
Harold A. Serr
Director, Alcohol and Tobacco Tax Division