Changes in Strip Stamp and Distilled Spirits Stamp Procedures
Proprietors of distilled spirits plants
and others concerned:
Purpose. The purposes of this circular are to inform you that, effective December 1,
1972, in lieu of denominational stamps of one-half pint or more, green (domestic) bottledin-bond strip stamps will be issued in a standard size for use on bottles or containers of
one-half pint capacity or more; to provide a use-up period for the stocks of denominational
stamps and for the disposition of stamps on hand at the end of the use-up period; and to
announce that strip stamps and distilled spirits stamps will be stocked and issued by
Regional Directors of the Bureau.
Background. Pursuant to the notice of proposed rule making published in the Federal
Register for June 14, 1972 (37 F.R. 11776), the regulations in 26 CFR Part 201, Distilled
Spirits Plants, will be amended, effective December 1, 1972, to provide for the issuance of
non-denominational, standard-size, serially numbered green bottled-in-bond strip stamps, in
lieu of denominational stamps, for use on bottles or containers of a capacity of one-half
pint or more. (The use of small-size stamps for bottles having a capacity of less than onehalf pint would be continued, with no change in design). Another Treasury decision, also to
become effective on December 1, 1972, will provide that Regional Directors, Bureau of
Alcohol, Tobacco and Firearms, will stock and issue all strip stamps (red, green, blue, and
white). Procedures for the issuance of distilled spirits stamps by Regional Directors will
also be effective December 1, 1972.
Green Strip Stamps Procedures.
(1) Use of stocks of denominational green strip stamps. Proprietors may continue to
use stocks of denominational stamps on hand on the effective date of the Treasury decision,
through June 30, 1973.
(2) Availability and ordering of redesigned green strip stamps. A standard-size green
strip stamp has been designed by the Bureau of Engraving and Printing and will be available
for filling requisitions no later than November 1, 1972. Proprietors who wish to start using
the redesigned stamps on the effective date of the Treasury decision may file Form 428,
Requisition for Bottle Strip Stamps, with their Regional Directors, Bureau of Alcohol,
Tobacco and Firearms, on or after November 1, 1972. Form 428 is being revised and the revision should be available by November 1, 1972. However, if it is not available, Form 428
(Rev. 3-70) may be used by checking the correct block in item 4 and by entering, in column (b)
on the line for "Standard," the quantities desired. All requisitions for the redesigned
stamp, placed on Form 428 before the effective date of the amended regulations, should be noted
"NEW DESIGN" in conjunction with the entry indicating green stamps. After the effective date
of the Treasury decision only the newly designed stamps will be issued.
(3) Delivery of unused stamps to assigned officers. Not later than the close of
business June 30, 1973, all denominational green bottled-in-bond strip stamps on hand will be
delivered to the assigned officer, together with an inventory, in duplicate, listing separately by denomination all stamps so delivered. The assigned officer will, after verifying
the inventory, endorse his receipt on both copies, noting thereon any exceptions, and
return one copy to the proprietor.
(4) Form 2260, Quarterly Report of Bottle Strip Stamps. This form has been revised
so that all stamps will be reported as "less than 1/2 pint" or as "standard," and to
provide specific columns for reporting use, by bottle size, of standard size stamps.
Details for its preparation are shown on the form. Proprietors should use the revised
Form 2260 for the quarterly reporting period ending December 31, 1972. Denominational
green bottled-in-bond strip stamps reported after the revised form is placed in use should
be reported with, and in the-same manner as, standard (nondenominational) green strip
stamps. In preparing Form 2260 for the quarter in which any remaining denominational
green strip stamps are delivered to the assigned officer, the proprietor will enter in
column (c) at line 12 the total number of such stamps delivered to the assigned officer,
as evidenced by the endorsed inventory, prepared as provided in paragraph (3) above,
returned to the proprietor.
Requisitions for strip stamps and distilled spirits stamps. Except as provided in
paragraph (2) above, with respect to ordering standard-size nondenominational green strip
stamps, all requisitions for strip stamps filed before December 1, 1972, should continue
to be filed with the District Director of Internal Revenue. However, all such requisitions,
as well as those for standard-size green strip stamps, filed on or after December 1, 1972,
will be filed with the appropriate Regional Director, Bureau of Alcohol, Tobacco and
Firearms. There is no change in the alternate procedure whereby strip stamps may be
shipped directly from the Bureau of Engraving and Printing, except that such stamps will be
shipped to the bottler rather than to the assigned officer and the bottler will receipt for
the stamps on the original and one copy of Form 428 and forward the original to his
Regional Director. (Regional Directors will also stock distilled spirits stamps for filling
plant needs on and after December 1, 1972. Distilled spirits stamps will continue to be
ordered and kept by the assigned officer.)
Supply of revised Forms. Your Regional Director will furnish you with an initial
supply of the revised forms as soon as they become available.
Inquiries. Inquiries regarding this circular should refer to its number and be
addressed to your Regional Director, Bureau of Alcohol, Tobacco and Firearms.
Rex D. Davis