TRANSFER OF IMPORTED SPIRITS TO INTERNAL REVENUE BONDED PREMISES
Proprietors of distilled spirits
plants and others concerned:
This circular is issued to inform you of the provisions of a revenue
procedure which will soon be published in the Internal Revenue Bulletin, and
will announce procedures whereby designated Internal Revenue Officers may
assume the duties of Customs Officers in releasing bulk spirits from customs
custody on transfer to internal revenue bonded premises. The revenue
procedure will read substantially as follows:
SECTION 1. PURPOSE.
The purpose of this Revenue Procedure is to announce a plan whereby
Alcohol, Tobacco and Firearms Inspectors (On-Premises) may assume certain
duties of Customs Inspectors relative to the release of bulk imported
spirits (including Virgin Islands spirits to be released pursuant to
section 5232 of the Internal Revenue Code of 1954, as amended by Public
Law 91-659, I.R.B. 1971-10, 28) from customs custody and transfer to
the bonded premises of a distilled spirits plant.
SEC. 2. BACKGROUND.
.01 Section 5232 of the Code relating to transfer of spirits from
customs to internal revenue bond was amended by Public Law 90-630
(C.B. 1968-2, 772) effective February 1, 1969, to provide in substance
that (1) imported distilled spirits in bulk may be withdrawn from
customs custody and transferred to the bonded premises of a distilled
spirits plant without payment of internal revenue tax, (2) the person
operating the bonded premises of the distilled spirits plant to which
such spirits are transferred becomes liable for the internal revenue
tax on spirits withdrawn from customs custody when the spirits have
been released from customs custody, and (3) upon release, the importer
is relieved of liability for the tax.
.02 The provisions of 26 CFR 201.175a were concurrently amended by
T.D. 7002, to allow the bulk imported spirits to remain on bonded
premises after curtailment and extension of gauging and storage facilities to allow gauge by customs officers.
.03 While the revision of law and regulations eased restrictions on transferring imported spirits from customs to internal
revenue custody, there remained a need for more efficient procedures
respecting such transfers. Consequently, officials of the Bureau
of Customs and the Alcohol, Tobacco and Firearms Division have
developed a plan whereby duplicate gauges by customs and internal
revenue, and the paperwork involved in alternating gauging and storage
facilities between internal revenue bond and customs bond, may be
.04 Under the plan and on the request of a distilled spirits
plant proprietor, Inspectors (On-Premises) will be authorized to act
as Customs Inspectors in performance of the duties described in
section 4, below.
.05 The procedure will apply only if
(1) spirits are to be
released from customs custody to internal revenue bonded premises
under the Bureau of Customs immediate delivery procedure,
release is to take place at the internal revenue bonded premises,
(3) the spirits to be released are in bulk quantities, i.e.,
barrels, casks, sealand containers, tank cars, tank trucks, etc.
SEC. 3. IMMEDIATE DELIVERY PROCEDURE.
.01 Under the immediate delivery procedure the importer must
file an application for immediate delivery, together with a bond,
with the Port Director of Customs. The immediate delivery application
filed by the importer may cover a single shipment or all shipments
for a one-year period. In the latter case, the application is called
an annual immediate delivery permit. Release of the merchandise
under immediate delivery always requires the filing of other documents
(invoices, carrier's certificate, etc.) with the Customs Officer at
the place where the transfer is to be made.
.02 The immediate delivery procedure does not constitute entry,
but does allow distilled spirits to be released from customs custody
and transferred to internal revenue custody. The designated Inspectors
(On-Premises) will not receive formal customs entries but will receive
only those papers necessary to release and transfer the shipment
under the immediate delivery procedure. There will be no change in
procedures for accomplishment of formal customs entry for the spirits
under the immediate delivery procedure.
SEC. 4. DUTIES OF DESIGNATED OFFICERS.
.01 The customs duties to be performed by the designated Inspectors (On-Premises) are as follows:
(a) Acceptance of in-bond documents.
(b) Examination of customs seals and supervision of
removal of seals.
(c) Supervision of sampling by the importer.
(d) Supervision of unlading.
(e) Acceptance of immediate delivery permit and invoices.
(f) Taking of customs samples.
(h) Release from customs custody for transfer to internal
(i) Performance of other duties incidental to the receipt,
unlading, gauging, and release of distilled spirits.
(j) Completion of documents incidental to the performance
of the functions specified.
SEC. 5. RESPONSIBILITIES OF PROPRIETORS.
Proprietors who wish to participate in the plan must have
suitable facilities and arrange their operations so that the
designated officers are not required to work overtime in performance of the additional duties.
Inquiries regarding this circular, including requests to establish the
procedure described, should refer to its number and be addressed to
your Assistant Regional Commissioner, Alcohol, Tobacco and Firearms.
Rex D. Davis,
Alcohol, Tobacco and Firearms Division