TRATAMIENTO ARANCELARIO -Cerveza de malta en envases de vidrio de menos de 4 litros: se clasifica en la posición arancelaria 2203.00.00.30 del Nomenclador de Importaciones de Estados Unidos (HTSUS) y tiene un arancel de importación de 0 %. -Las demás cervezas de malta de menos de 4 litros en envases distintos de los de vidrio: se clasifica en la posición arancelaria 2203.00.00.60 del Nomenclador de Importaciones de Estados Unidos (HTSUS) y tiene un arancel de importación de 0 %. -Cerveza de malta en envases de más de 4 litros: se clasifica en la posición arancelaria 2203.00.00.90 del Nomenclador de Importaciones de Estados Unidos (HTSUS) y tiene un arancel de importación de 0 %. Cabe aclarar que la cerveza esta sujeta al pago de un arancel (Federal Excise Tax) que se detalla a continuación:

PRODUCT TAX TAX PER PACKAGE (usually to nearest cent)

Beer Barrel (31 gallons) 12 oz. Can

Regular Rate $18 $0.05

Reduced Rate (*) $7 on first 60,000 barrels for brewer who produces less than 2 million barrels. $18 per barrel after the first 60,000 barrels.

$0.02

-Información sobre el Federal Excise Tax para cerveza se puede consultar en 26 USC 5051 (Se adjunta) (*) La Reduced Rate se aplica solo a los fabricantes de cervezas de los Estados Unidos.

REGULACIONES -El producto se encuentra regulado por Alcohol and Tobacco Tax and Trade Bureau del U.S. Department of Treasury: www.ttb.gov -Regulaciones sobre etiquetado de bebidas de malta se pueden consultar en 27 Code of Federal Regulations (CFR) Parte 7. (Se adjunta)

-Regulaciones sobre la importación de bebidas alcoholicas destiladas, vino y cerveza se puede consultar en 27 CFR Parte 27. (Se adjunta) -Requisitos para el Registro de Establecimiento y Notificación Previa de la nueva ley “Bioterrism Act of 2002” se puede consultar en: www.fda.gov/oc/bioterrorism/bioact.html

BREVE DESCRIPCION DEL MERCADO La industria de la cerveza artesanal aparece en el mercado de los Estado Unidos en los 80’. Durante 35 años, la industria ha demostrado un crecimiento cada año. El crecimiento es medido por el número de barriles de las cervecerías de Estados Unidos. La cerveza artesanal esta fabricada con métodos tradicionales y 100% de malta como fuente de la fermentación. En el año 2000 había 1.392 cervecerías en los Estados Unidos. En el 2001 se habian incrementado a 1.458, de la cuales las cervecerías artesanales producian 6,23 millones de barriles (31galones x barril) cerca de 3% de la cerveza consumida en los Estados Unidos. El desarrollo de una cultura cervecera logró quintuplicar en cinco años el volumen importado 21,8 millones de barriles en el 2001. La cerveza artesanal es el segmento de mayor crecimiento de la industria de las bebidas alcoholicas en los E.E.U.U. Las importaciones de cerveza artesanal fueron del 7% en el año 2004 lo que duplico el crecimiento de 3,4% de la industria de la cerveza artsanal en el año 2003. Las ventas de la cerveza artesanal aumentaron más rápidamente que las importaciones por segundo año consecutivo. Esto invierte la tendencia vista entre 1996 y 2002 en que el volumen de la importación creció mas rápido que las ventas. El segmento de la cerveza artseanal continúa demostrando un crecimiento constante con muchos cerveceros individuales que se benefician des aumento del volumen, dijo Charlie Papazian, presidente de la Asociación de Cerveceros. En el 2004 el segmento artesanal crecio dentro del mercado de la cerveza importada en general, se vendió muchos más nuevos barriles de este cerveza artesanal que el año anterior. Mirando el mercado americano de la cerveza, los cerveceros artesanales han tenido éxito en captar el gusto del consumidor de la cerveza y en crear un importante lugar en el mercado de consumidor americano.

. Brewers Association reports Craft Beer Production grows 7.0% Total growth of the craft beer industry in 2004 was 7.2% in 2004. (Growth is measured by numbers of barrels of beer U.S. breweries produced in 2004.) Equivalent to more than 6.1 million cases of new craft beer sales! 2003 growth: 1.5% 2002 growth: 3.8% 2001 growth: 1.5% 6,590,000 million barrels of craft beer was produced in the U.S. in 2004 2003 total: 6.2 million 2002 total: 6.1 million 2001 total: 5.8 million Craft beer industry production grew again in 2004 as it has for 35 consecutive years Total 2004 U.S. craft beer industry annual retail sales value: $3.5 billion. 2003 total: $3.3 billion 2002 total: $3.3 billion 2001 total: $3.1 billion U.S. Market Shares by Segment 2004 2003 %Change Domestic Large Brewers + Traditional Regional Brewers 85.17% 85.42% -0.25% Imports 11.64% 11.58% +0.06% Domestic Specialty or "Craft" Brewers 3.19% 3.00% +0.19% Adding the share of Domestic Specialty ("Craft") and Imports together shows that the single category of "high-price beer" increased from 14.58% to 14.83% of the market in 2004.

The craft beer industry is defined by four distinct markets—brewpubs, microbreweries, regional specialty breweries and contract brewing companies. Markets 2004 2003 Vol. Change %Change

Contract 865,187 838,615 -26,572 +3.2% Regional Specialty 4,355,914 4,021,082 334,832 +8.3%

Microbrewery 733,772 685,883 47,889 +7.0% Brewpub 635,890 604,917 30,971 +5.1% Overall 6,590,763 6,150,497 440,264 + 7.2%

IMPORTADORES ACE OF HEARTS IMPORTS 8401 Corporate Dr. Ste. 240 Landover, MD 20785 Tel: 301-731-4511 Fax: 301-731-6644 Contacto: Chris Garroute E-mail: chris@latinbrews.com Comentario: Importa de El Salvador pero manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal. PHOENIX IMPORTS 2925 Montclair Dr. Ellicot, MD 21043 Tel: 410-465-1155 Fax: 410-465-1197 Contacto: George Saxon E-mail: mythbird@aol.com Website: www.mythbirdbeer.com Comentario: Manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal. EFCO IMPORTS PO Box 741 Foxcroft, PA 19046-7141 Tel: 215-885-8597 Fax: 215-885-4584 Contacto: Martin Freidland E-mail: efcoimp@aol.com

Comentario: Importan de Brasil y Aelmania. Manifestó interés en recibir lo antes posible oferta de exportadores argentinos de cerveza artesanal. GLOBAL VILLAGE IMPORTS 349 S. Henderson Rd. King of Prusia, PA 19406 Tel: 610-265-2553 Fax: 610-265-3190 Contacto: John Trafton E-mail: karen@kundaveb.com Website: www.kundaveb.com Comentario: Importa de Argentina cerveza Quilmes y manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal. REINHEIT IMPORTS 250 Wood Street Hatboro, PA 19040-2722 Tel: 215-441-4776 Fax: 215-4443-8256 Contacto: Stein O’ Donnell E-mail: sodonnell@reinheit.com Website: www.reinheit.com Comentario: Importa de Alemania pero manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal. BALEARIC BEVERAGE DISTRIBUTING 8394- F Term Rd. Lorton, VA 22079 Tel: 703-550-3993 Fax: 703-550-3649 Contacto: Tony Abraham E-mail: balearic@erols.com Comentario: Importa de Europa pero manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal. FRANK B. FUHRER WHOLESALE 3100 E. Carson Street Pittsburgh, PA 15203-2153 Tel: 412-488-8844 Fax: 412-488-0195 Contacto: Sam Alioto E-mail: salioto@fuhrerwholesale.com Website: www.fuhrerwholesale.com Comentario: Importan de Alemania e Israel. Manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal

MIMS DISTRIBUTING 2100 Harrod St. Raleigh, NC 27604 Tel: 919-876-4634 Fax: 919-872-7243 Contacto: Howard Mims E-mail: hmims@mimsdist.com Website: www.mimsdistributing.com Comentario: Son distribuidores. Manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal. WETTEN IMPORTS 8390- J Term Rd. Lorton, VA 22079 Tel: 703-550-9877 Fax: 703-550-9878 Contacto: Martin Wetten E-mail: martin.wetten@wettenimporters.com Website: www.wettenimporters.com Comentario: Importan de Belgica y Alemania. Manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal HOUSE OF WINES 6500 Chillum Pl. NW Washington, DC 20012 Tel: 202-882-3333 Fax: 202-722-2493 Contacto: Howard Rosemberg E-mail: how162@aol.com Comentario: Importan pricnipalmente vino y en menor escala cerveza, pero manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal BENNETT DISTRIBUTING CO. INC. 320 Circle M. Dr. Salisbury, NC 28147 Tel: 704-636-7743 Fax: 704-636-7747 Contacto: Ronan Bennett E-mail: ronanbennett@bennetdistributing.com Comentario: Importan de Alemania. Manifestó interés en recibir oferta de exportadores argentinos de cerveza artesanal

ASOCIACIONES The Beeryard 218 East Lancaster Ave Wayne, PA 19087 Tel: 610-688-3431 E-mail: info@beeryard.com Website: www.beeryard.com National Beer Wholesalers Association 1101 King Street, Suite 600 Alexandria, VA 22314-2944 Tel: 703-683-4300 Fax: 703-683-8965 E-mail: info@nbwa.org Website: www.nbwa.org

PRECIOS MINORISTAS LATA Miller Lite, Genuine Draft 12 pk……………. U$S 7,99 Case…………….. U$S 13,99 Budweiser, Bud Lt 12 pk……………...U$S 7,99 Case…………….. ..U$S 13,99 Coor Original Lt 30 pk………………U$S 15,99 BOTELLA Spaten Pils 12 pk……….…….. U$S 8,99 Corona Extra 12 pk……….…….. U$S 10,99

Red Stripe 12 pk……….…….. U$S 9,99 Kronenbourg 6 pk.……….…….. U$S 6,49 CRAFT-BREW (Sale) Dominion Brewing Lg. Ale 6 pk.……….…….. U$S 5,49 Fordham Lg. Cooperhead Ale 6 pk.……….…….. U$S 5,49 Sam Adams Larger, Light, Mix, Summer 12 pk.……….…….. U$S 10,99 Fuente: Rodman’s (Discount Gourmet)

IMPORTACIONES DE CERVEZA DE MALTA DE LOS ESTADOS UNIDOS

IMPORTACIONES DE CERVEZA DE MALTA EN ENVASES DE VIDRIO INFERIORA 4 LITROS EN DOLARES - PA (2203.00.00.30)

PAIS 2002 2003 2004Mexico 897,284,976 954,223,438 1,039,325,990Netherlands 773,672,434 784,226,968 778,624,698Canada 150,895,193 158,538,665 156,083,113Germany 133,256,684 128,416,317 126,010,791United Kingdom 71,347,030 59,323,441 76,077,517Belgium 10,551,989 19,276,742 23,293,990Dominican Rep 19,014,264 18,076,629 19,459,323Ireland 19,491,692 22,500,294 17,726,968Jamaica 10,185,520 13,995,653 15,257,450Czech Republic 11,050,122 9,694,760 11,145,353Italy 7,859,690 9,479,618 9,313,542China 6,694,660 5,850,951 5,775,179New Zealand 5,612,646 6,626,070 5,739,968Poland 4,262,560 7,458,257 5,706,112El Salvador 3,381,488 4,934,799 3,373,781Thailand 2,568,688 2,888,913 2,720,418Denmark 232,646 698,951 2,155,546India 2,032,929 1,930,067 2,140,508Philippines 1,390,710 1,613,169 1,667,036Peru 1,062,824 1,189,839 1,329,592Guatemala 509,877 430,068 1,031,720Korea 651,102 503,365 1,007,858Portugal 1,165,929 1,332,784 986,585Bahamas 962,922 1,132,828 942,635Russia 687,262 742,001 783,901Trin & Tobago 924,696 1,010,661 778,502France 1,138,448 1,316,832 758,802Argentina 338,369 337,381 714,497Ecuador 277,025 246,966 711,422Australia 693,311 508,945 644,965Lithuania 199,096 195,117 612,742Japan 778,450 632,717 540,935Brazil 120,228 289,710 540,371Austria 610,430 547,510 491,094Greece 340,112 500,263 436,003Singapore 64,876 228,646 425,311Fr Polynesia 344,204 341,129 421,105Costa Rica 0 8,743 407,594Colombia 331,231 342,471 359,724Slovak Republic 272,547 287,871 333,861Nicaragua 0 235,063 309,958Spain 232,789 299,883 263,252Vietnam 319,491 252,674 247,208Venezuela 89,600 123,200 195,461Ukraine 112,496 127,952 195,075Ethiopia 69,203 36,778 151,764

Kenya 157,770 177,675 147,691Croatia 91,829 110,578 134,552Armenia 123,739 99,725 127,702Bulgaria 56,537 51,182 124,580Turkey 73,440 203,495 117,238Lebanon 111,642 157,233 111,713Sri Lanka 51,074 0 104,622Haiti 0 0 101,580Cyprus 53,847 69,012 91,825Bolivia 72,176 142,573 73,697Taiwan 33,768 56,421 67,317Romania 44,426 66,131 64,862Norway 133,236 40,989 62,214Morocco 64,538 72,180 54,360Laos 6,050 30,250 48,400Honduras 155,416 124,640 41,330Bosnia-Hercegov 0 17,992 39,348Yugoslavia 18,443 67,816 34,844South Africa 46,528 16,236 33,234Paraguay 0 0 26,566Belize 0 0 24,192Latvia 41,092 16,413 21,307Ghana 26,256 94,385 20,200Albania 14,536 0 14,685Slovenia 9,120 6,221 13,199Congo (DROC) 0 0 12,838Eritrea 0 0 11,820Finland 0 0 9,763Hungary 33,204 7,440 9,360Cameroon 16,025 14,455 9,202Georgia 13,873 12,250 7,865Switzerland 0 0 6,748Namibia 25,844 19,785 6,202Israel 33,453 49,576 6,000Chile 90,382 7,776 0Christmas Is 8,826 8,201 0Zimbabwe 0 4,545 0Sweden 0 10,430 0Panama 12,110 0 0Netherlands Ant 15,776 0 0Macedonia 7,941 0 0Hong Kong 115,152 0 0Estonia 6,282 14,940 0TOTAL 2,144,846,770 2,224,725,644 2,319,000,276

IMPORTACIONES DE CERVEZA DE MALTA EN ENVASES DE VIDRIO INFERIOR A 4 LITROS EN LITROS - PA (2203.00.00.30)

PAIS 2002 2003 2004Mexico 982,959,616 1,022,407,638 1,054,566,476Netherlands 600,983,912 603,443,060 606,892,636Canada 246,843,320 232,319,386 213,809,863Germany 122,627,684 116,654,385 119,676,560United Kingdom 57,535,795 48,619,863 61,955,642Jamaica 13,133,179 15,789,647 16,772,219Ireland 15,021,580 19,871,185 15,880,541Czech Republic 14,493,420 13,777,115 14,742,651Dominican Rep 13,572,914 13,777,927 14,618,466Belgium 5,427,163 11,545,496 13,673,450Italy 7,243,402 8,254,226 7,451,922China 7,580,167 6,972,230 7,068,559Poland 5,140,601 9,101,453 7,049,430New Zealand 5,098,906 5,975,055 5,235,855El Salvador 4,105,000 6,066,403 4,162,747Thailand 2,548,746 2,757,243 2,655,956Denmark 195,907 984,527 2,308,086Korea 1,006,981 909,340 1,788,638Peru 1,261,574 1,411,802 1,592,715Philippines 1,517,129 1,543,807 1,584,492Guatemala 779,886 709,660 1,503,058Russia 1,157,843 1,506,085 1,439,572India 1,329,041 1,222,845 1,371,428Portugal 1,534,595 1,701,219 1,279,774Trin & Tobago 1,022,122 1,288,784 1,005,360Lithuania 285,625 271,118 929,764France 1,039,210 1,156,081 695,572Australia 766,680 557,444 629,536Argentina 299,899 318,673 626,623Brazil 172,839 322,548 617,344Bahamas 538,219 631,452 521,424Colombia 362,978 487,485 510,521Ecuador 331,311 379,523 497,101Costa Rica 0 19,088 392,742Greece 373,662 524,293 389,970Slovak Republic 291,113 320,711 386,932Nicaragua 0 195,896 361,938Ukraine 197,190 242,710 354,630Singapore 69,019 188,406 343,590Japan 769,305 526,294 338,985Vietnam 346,321 260,517 257,407Austria 450,375 316,815 247,387Venezuela 95,424 131,201 242,595Spain 232,033 238,413 236,110Fr Polynesia 205,093 188,450 231,906Bulgaria 92,891 61,438 176,148Armenia 168,779 140,556 172,274

Croatia 98,882 109,340 139,418Ethiopia 55,882 31,867 128,300Sri Lanka 48,950 0 106,836Kenya 122,120 145,800 105,300Lebanon 83,540 126,319 86,519Haiti 0 0 86,040Turkey 61,310 166,451 84,279Romania 60,643 86,212 82,901Bolivia 75,281 153,430 77,863Taiwan 45,540 76,484 74,550Laos 8,712 43,380 69,621Cyprus 39,332 55,367 52,272Norway 119,339 25,605 46,134Morocco 62,874 71,558 44,981Honduras 116,126 118,347 40,911Yugoslavia 29,550 81,939 40,816Bosnia-Hercegov 0 17,464 40,412Latvia 57,155 23,307 34,088South Africa 74,775 17,410 29,797Paraguay 0 0 28,853Ghana 24,347 82,267 19,986Eritrea 0 0 17,487Belize 0 0 17,176Slovenia 15,048 4,930 16,830Albania 23,600 0 15,396Congo (DROC) 0 0 11,928Georgia 23,820 17,381 9,765Hungary 39,600 7,920 7,920Israel 41,876 54,156 6,362Switzerland 0 0 4,621Cameroon 10,618 7,154 4,372Finland 0 0 2,281Namibia 44,912 33,635 8Chile 108,237 11,038 0Christmas Is 11,502 11,502 0Zimbabwe 0 8,242 0Sweden 0 11,928 0Panama 11,928 0 0Netherlands Ant 13,962 0 0Macedonia 10,482 0 0Hong Kong 205,632 0 0Estonia 10,500 21,000 0TOTAL 2,122,964,524 2,157,710,926 2,190,780,618

IMPORTACIONES DE CERVEZA DE MALTA EN ENVASES DE VIDRIO INFERIOR A 4 LITROS POR DISTRITO - PA (2203.00.00.30)

DISTRITO ADUANERO 2002 2003 2004Laredo, TX 746,178,481 657,697,640 648,549,351New York, NY 294,862,309 280,398,630 294,413,127El Paso, TX 29,164,178 151,147,431 209,331,288Houston-Galveston, TX 125,533,934 153,694,979 127,339,806Miami, FL 106,820,903 116,569,192 120,521,681Norfolk, VA 114,565,772 104,635,073 106,519,599Baltimore, MD 86,479,456 100,203,297 94,052,124Mobile, AL 48,626,705 63,505,197 83,590,392Los Angeles, CA 89,663,959 72,715,764 80,677,115San Francisco, CA 47,561,290 58,929,335 77,878,061San Juan, PR 61,677,823 61,382,386 68,747,225Boston, MA 82,084,557 74,653,972 61,653,876Nogales, AZ 43,772,790 50,490,761 53,000,200Charleston, SC 55,522,413 47,992,057 51,961,412Buffalo, NY 38,820,564 44,387,948 37,319,036Detroit, MI 37,111,071 38,741,179 35,341,850Ogdensburg, NY 34,728,509 30,977,385 32,174,326San Diego, CA 22,539,387 25,846,534 32,132,230Portland, ME 15,158,833 18,124,100 23,677,210Seattle, WA 18,568,861 19,440,041 19,602,263St. Albans, VT 7,032,125 7,954,502 9,865,962Chicago, IL 6,745,039 9,169,965 9,047,123Philadelphia, PA 1,880,278 3,128,075 8,658,577Honolulu, HI 4,630,377 6,802,539 7,542,432Savannah, GA 8,498,477 6,715,774 6,693,156Virgin Islands of the United States 3,923,552 4,567,656 5,106,698Great Falls, MT 2,595,908 3,313,838 3,496,730Tampa, FL 2,273,070 3,861,502 3,127,762New Orleans, LA 3,123,958 3,456,232 3,087,644Columbia-Snake, OR 1,326,869 1,492,336 1,491,182Washington, DC 814,593 726,872 952,992Charlotte, NC 918,887 658,627 341,406Cleveland, OH 518,669 500,678 338,486Pembina, ND 0 0 263,120Milwaukee, WI 303,572 255,864 219,939Minneapolis, MN 235,281 455,129 132,622St. Louis, MO 113,498 40,234 68,746Duluth, MN 412,714 3,325 42,037Dallas-Fort Worth, TX 58,108 89,595 41,490TOTAL 2,144,846,770 2,224,725,644 2,319,000,276

IMPORTACIONES DE CERVEZA DE MALTA EN ENVASES DE VIDRIO INFERIOR A 4 LITROS POR PROGRAMA - PA (2203.00.00.30)

PROGRAMA 2002 2003 2004No program claimed* 2,144,846,770 2,224,725,644 2,319,000,276TOTAL 2,144,846,770 2,224,725,644 2,319,000,276

*Importaciones efectuadas sin régimen especial (para mayor información consultar la Guia de Negocios- 2004 disponible en www.argentinatradenet.gov.ar)

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES INFERIOR A 4 LITROS DISTINTOS DE LOS DE VIDRIO EN DOLARES- PA (2203.00.00.60)

PAIS 2002 2003 2004Mexico 102,735,369 109,999,691 119,867,756Netherlands 72,737,070 77,453,965 81,497,843Canada 44,583,145 51,844,958 47,743,227Ireland 20,651,651 17,692,046 18,689,143United Kingdom 6,291,100 9,088,142 5,698,164Germany 4,849,201 4,453,555 4,111,265Japan 20,367,921 7,176,722 2,040,449Belgium 4,250,041 478,779 615,925Poland 276,683 477,125 572,362Korea 835,001 802,727 324,598Denmark 81,331 81,902 178,204Haiti 0 0 144,700Italy 99,219 140,521 101,825El Salvador 113,163 309,631 80,741Peru 32,700 70,145 78,666Portugal 16,482 8,039 64,115China 35,657 25,753 43,433Panama 3,892 0 36,000Singapore 50,302 41,884 31,905New Zealand 126,153 38,289 28,740Taiwan 27,410 9,918 22,104Ecuador 0 0 14,000Greece 5,415 12,472 13,560Bulgaria 0 0 12,789Philippines 30,932 8,279 10,214Fiji 0 0 10,120Cambodia 0 0 8,800Thailand 0 31,398 7,980Trin & Tobago 9,145 6,020 6,752Russia 4,200 0 5,468Albania 0 0 5,198Yugoslavia 0 0 4,714Egypt 0 9,260 3,220Slovenia 0 0 2,880Dominican Rep 0 0 2,634Australia 0 16,240 0

France 30,212 0 0Hong Kong 59,434 0 0Netherlands Ant 7,447 0 0Vietnam 36,146 0 0Norway 6,720 0 0India 7,200 0 0Guatemala 21,648 43,296 0Finland 0 18,337 0Croatia 14,856 0 0Czech Republic 25,076 6,631 0Austria 188,667 54,658 0TOTAL 278,610,589 280,400,383 282,079,494

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES INFERIOR A 4 LITROS DISTINTOS DE LOS DE VIDRIO EN LITROS- PA (2203.00.00.60)

PAIS 2002 2003 2004Mexico 158,558,502 165,016,757 176,797,648Canada 89,631,875 95,660,455 96,506,470Netherlands 59,324,122 64,745,613 70,301,147Ireland 15,996,244 14,448,365 17,253,050United Kingdom 6,982,873 8,764,325 5,856,038Germany 5,598,256 5,241,236 4,892,777Japan 16,929,930 5,732,975 1,689,541Poland 381,888 652,354 715,136Korea 1,151,266 1,273,167 505,707Belgium 8,798,558 212,053 292,466Denmark 162,075 153,520 278,055El Salvador 193,382 605,424 157,372Haiti 0 0 123,280Peru 37,152 82,864 92,880Portugal 22,528 11,809 80,109China 51,120 37,104 70,716Italy 52,155 74,854 52,956New Zealand 118,155 34,333 33,719Taiwan 42,480 15,293 30,593Singapore 63,646 40,089 28,999Panama 3,834 0 19,078Bulgaria 0 0 17,566Cambodia 0 0 16,896Philippines 44,502 14,778 14,193Albania 0 0 13,305Greece 7,966 14,995 12,355Thailand 0 39,936 11,330Russia 9,500 0 10,400Ecuador 0 0 9,539Trin & Tobago 9,372 5,987 6,494Slovenia 0 0 4,752Yugoslavia 0 0 4,561Fiji 0 0 4,500Egypt 0 1 3,643

Dominican Rep 0 0 2,836Australia 0 17,150 0France 6,602 0 0Hong Kong 105,120 0 0Netherlands Ant 1 0 0Vietnam 42,566 0 0Norway 8,316 0 0India 9,360 0 0Guatemala 56,232 112,464 0Finland 0 8,593 0Croatia 18,312 0 0Czech Republic 37,978 9,533 0Austria 274,368 105,792 0TOTAL 364,730,236 363,131,819 375,910,107

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES INFERIOR A 4 LITROS DISTINTOS DE LOS DE VIDRIO POR DISTRITO - PA (2203.00.00.60)

DISTRITO ADUANERO 2002 2003 2004Laredo, TX 33,287,836 37,128,160 45,044,447San Diego, CA 38,883,983 36,863,242 40,050,601Nogales, AZ 30,520,956 35,939,569 34,597,365New York, NY 31,823,441 29,781,018 31,137,200Detroit, MI 18,419,698 22,858,369 21,000,222Buffalo, NY 14,453,122 16,314,059 13,670,975Houston-Galveston, TX 14,063,916 18,677,861 13,108,671Norfolk, VA 12,710,691 11,284,239 12,236,094Miami, FL 7,702,292 9,255,097 11,533,061Baltimore, MD 8,773,199 10,713,550 11,504,181Los Angeles, CA 31,901,383 15,469,628 10,285,257Ogdensburg, NY 8,642,149 9,537,486 9,678,012Boston, MA 8,993,223 8,571,763 8,237,908Charleston, SC 7,090,848 6,669,344 7,010,696San Francisco, CA 4,126,337 4,595,021 6,070,125St. Albans, VT 1,791,453 1,764,725 1,895,126Seattle, WA 1,241,015 1,279,115 1,340,269Chicago, IL 925,295 852,648 797,265Philadelphia, PA 636,545 973,816 553,063Savannah, GA 570,392 256,634 516,003Virgin Islands of the United States 750,146 383,635 508,699Milwaukee, WI 244,960 235,922 350,851Honolulu, HI 129,730 202,615 212,459Portland, ME 223,691 173,474 183,662Great Falls, MT 146,293 135,658 122,789San Juan, PR 74,844 66,541 107,889Tampa, FL 207,284 120,672 65,906New Orleans, LA 50,526 82,876 56,927Columbia-Snake, OR 9,944 0 56,348Minneapolis, MN 84,807 115,698 48,327Cleveland, OH 49,051 54,592 41,181El Paso, TX 0 0 34,389

Mobile, AL 0 4,820 11,757Dallas-Fort Worth, TX 55,113 20,815 7,980St. Louis, MO 12,727 0 3,789Duluth, MN 0 10,962 0Washington, DC 13,699 6,759 0TOTAL 278,610,589 280,400,383 282,079,494

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES INFERIOR A 4 LITROS DISTINTOS DE LOS DE VIDRIO POR PROGRAMA- PA (2203.00.00.60)

PROGRAMA 2002 2003 2004No program claimed* 278,610,589 280,400,383 282,079,494TOTAL 278,610,589 280,400,383 282,079,494

*Importaciones efectuadas sin régimen especial (para mayor información consultar la Guia de Negocios- 2004 disponible en www.argentinatradenet.gov.ar)

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES SUPERIORES A 4 LITROS EN DOLARES- PA (2203.00.00.90)

PAIS 2002 2003 2004Ireland 37,853,238 56,230,763 42,908,342United Kingdom 37,162,366 25,749,490 36,068,450Netherlands 33,049,654 35,448,892 28,846,139Germany 14,894,709 18,096,251 15,607,319Canada 12,026,294 12,149,621 12,404,380Belgium 1,605,040 5,629,895 8,487,530Mexico 3,124,768 3,656,266 4,214,627Czech Republic 1,906,479 1,366,653 798,146Austria 180,285 270,931 326,440Poland 102,540 114,213 293,367Italy 133,986 253,838 276,884France 13,173 75,001 219,509Denmark 9,971 69,457 217,356Dominican Rep 8,778 0 109,720New Zealand 143,395 137,701 96,595Norway 81,722 46,033 23,915Russia 0 0 13,571Australia 6,272 5,452 12,059Romania 0 0 7,114Brazil 0 33,835 0Philippines 11,218 0 0Latvia 0 8,008 0Japan 0 3,260 0Hungary 9,405 0 0Iran 0 21,753 0TOTAL 142,323,293 159,367,313 150,931,463

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES SUPERIORES A 4 LITROS EN LITROS - PA (2203.00.00.90)

PAIS 2002 2003 2004United Kingdom 53,412,950 37,734,218 52,213,106Canada 56,165,118 57,241,784 50,751,420Ireland 40,064,931 61,512,390 40,330,989Netherlands 26,246,043 25,877,925 20,992,316Belgium 2,078,922 10,793,348 17,485,184Germany 15,209,613 17,320,408 15,172,051Mexico 7,336,445 8,316,696 9,237,824Czech Republic 2,937,242 2,649,034 2,335,905Denmark 14,391 100,323 488,015Poland 120,000 169,800 422,546France 21,450 120,400 351,835Austria 167,382 224,800 249,983New Zealand 344,500 331,700 216,480Italy 239,640 401,762 186,666Dominican Rep 17,611 0 162,328Norway 60,400 32,100 16,050Australia 6,680 5,900 12,560Russia 0 0 12,240Romania 0 0 9,120Brazil 0 9,000 0Philippines 10,437 0 0Latvia 0 14,000 0Japan 0 1,150 0Hungary 15,000 0 0Iran 0 20,800 0TOTAL 204,468,755 222,877,538 210,646,618

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES SUPERIORES A 4 LITROS POR DISTRITO - PA (2203.00.00.90)

DISTRITO ADUANERO 2002 2003 2004New York, NY 48,171,964 53,200,174 45,386,854Los Angeles, CA 15,592,105 15,500,779 16,741,994Norfolk, VA 14,125,205 13,704,931 16,331,582Houston-Galveston, TX 14,765,564 18,544,933 12,975,300Baltimore, MD 6,867,821 9,550,221 8,032,473Miami, FL 5,580,406 6,950,753 7,609,513San Francisco, CA 4,661,389 6,407,834 7,343,882Charleston, SC 10,218,550 9,561,141 6,947,650Buffalo, NY 7,042,793 5,953,294 4,803,226Boston, MA 3,520,675 3,419,315 4,307,773Detroit, MI 3,347,406 4,001,312 3,971,470Laredo, TX 2,141,615 2,678,067 3,131,375Chicago, IL 502,579 1,637,303 2,175,679Philadelphia, PA 441,553 1,631,249 2,156,800Portland, ME 123,186 131,886 1,495,652

Ogdensburg, NY 1,149,452 1,005,229 1,289,943Savannah, GA 688,360 1,178,305 1,287,168Seattle, WA 296,646 992,618 1,183,805San Diego, CA 983,153 965,704 1,131,102New Orleans, LA 472,150 502,001 520,547Great Falls, MT 212,261 446,365 503,949San Juan, PR 258,932 165,208 346,785Washington, DC 232,851 302,281 282,260St. Albans, VT 130,490 206,239 227,612Virgin Islands of the United States 25,396 22,443 189,314Columbia-Snake, OR 57,043 23,776 120,733Honolulu, HI 117,643 115,456 99,486Milwaukee, WI 88,004 104,879 82,875Mobile, AL 13,964 65,955 80,153Cleveland, OH 53,821 77,111 58,982Minneapolis, MN 48,088 137,557 51,817Tampa, FL 53,847 35,204 38,435Charlotte, NC 332,477 142,190 18,074St. Louis, MO 5,904 5,600 7,200TOTAL 142,323,293 159,367,313 150,931,463

IMPORTACIONES DE LAS DEMAS CERVEZA DE MALTA EN ENVASES SUPERIORES A 4 LITROS POR PROGRAMA - PA (2203.00.00.90)

PAIS 2002 2003 2004No program claimed* 142,323,293 159,367,313 150,931,463TOTAL 142,323,293 159,367,313 150,931,463

*Importaciones efectuadas sin régimen especial (para mayor información consultar la Guia de Negocios- 2004 disponible en www.argentinatradenet.gov.ar)

EXPORTACIONES DE CERVEZA DE MALTA DE LOS ESTADOS UNIDOS

EXPORTACIONES DE CERVEZA DE MALTA EN DOLARES -PA (2203.00.00.00)

EXPORTACIONES 2002 2003 2004TOTAL 170,605,385 172,196,211 164,226,620

EXPORTACIONES DE CERVEZA DE MALTA EN LITROS -PA (2203.00.00.00)

EXPORTACIONES 2002 2003 2004TOTAL 241,646,343 241,327,918 235,716,806

Fuente: Datos compilados de Departamento de Comercio de EEUU (U.S.Department of Commerce) Departamento del Tesoro (U.S. Treasury) y de la Comisión de Comercio Internacional

From the U.S. Code Online via GPO Access [wais.access.gpo.gov] [Laws in effect as of January 2, 2001] [Document not affected by Public Laws enacted between January 2, 2001 and January 22, 2002] [CITE: 26USC5051] TITLE 26--INTERNAL REVENUE CODE Subtitle E--Alcohol, Tobacco, and Certain Other Excise Taxes CHAPTER 51--DISTILLED SPIRITS, WINES, AND BEER Subchapter A--Gallonage and Occupational Taxes PART I--GALLONAGE TAXES Subpart D--Beer Sec. 5051. Imposition and rate of tax (a) Rate of tax (1) In general A tax is hereby imposed on all beer brewed or produced, and removed for consumption or sale, within the United States, or imported into the United States. Except as provided in paragraph (2), the rate of such tax shall be $18 for every barrel containing not more than 31 gallons and at a like rate for any other quantity or for fractional parts of a barrel. (2) Reduced rate for certain domestic production (A) $7 a barrel rate

In the case of a brewer who produces not more than 2,000,000 barrels of beer during the calendar year, the per barrel rate of the tax imposed by this section shall be $7 on the first 60,000 barrels of beer which are removed in such year for consumption or sale and which have been brewed or produced by such brewer at qualified breweries in the United States. (B) Controlled groups In the case of a controlled group, the 2,000,000 barrel quantity specified in subparagraph (A) shall be applied to the controlled group, and the 60,000 barrel quantity specified in subparagraph (A) shall be apportioned among the brewers who are component members of such group in such manner as the Secretary or his delegate shall by regulations prescribed. For purposes of the preceding sentence, the term ``controlled group'' has the meaning assigned to it by subsection (a) of section 1563, except that for such purposes the phrase ``more than 50 percent'' shall be substituted for the phrase ``at least 80 percent'' in each place it appears in such subsection. Under regulations prescribed by the Secretary or his delegate, principles similar to the principles of the preceding two sentences shall be applied to a group of brewers under common control where one or more of the brewers is not a corporation. (C) Regulations The Secretary may prescribe such regulations as may be necessary to prevent the reduced rates provided in this paragraph from benefiting any person who produces more than 2,000,000 barrels of beer during a calendar year. (3) Tolerances Where the Secretary or his delegate finds that the revenue will not be endangered thereby, he may by regulations prescribe

tolerances for barrels and fractional parts of barrels, and, if such tolerances are prescribed, no assessment shall be made and no tax shall be collected for any excess in any case where the contents of a barrel or a fractional part of a barrel are within the limit of the applicable tolerance prescribed. (b) Assessment on materials used in production in case of fraud Nothing contained in this subpart or subchapter G shall be construed to authorize an assessment on the quantity of materials used in producing or purchased for the purpose of producing beer, nor shall the quantity of materials so used or purchased be evidence, for the purpose of taxation, of the quantity of beer produced; but the tax on all beer shall be paid as provided in section 5054, and not otherwise; except that this subsection shall not apply to cases of fraud, and nothing in this subsection shall have the effect to change the rules of law respecting evidence in any prosecution or suit. (c) Illegally produced beer The production of any beer at any place in the United States shall be subject to tax at the rate prescribed in subsection (a) and such tax shall be due and payable as provided in section 5054(a)(3) unless-- (1) such beer is produced in a brewery qualified under the provisions of subchapter G, or (2) such production is exempt from tax under section 5053(e) (relating to beer for personal or family use). (Added Pub. L. 85-859, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1333; amended Pub. L. 86-75, Sec. 3(a)(6), June 30, 1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 202(a)(8), June 30, 1960, 74 Stat. 290; Pub. L. 87-72, Sec. 3(a)(8), June 30, 1961, 75 Stat. 193; Pub. L. 87-508, Sec. 3(a)(7), June 28, 1962, 76 Stat. 114; Pub. L. 88-52, Sec. 3(a)(8), June 29, 1963, 77 Stat. 72; Pub. L. 88-348, Sec. 2(a)(8), June 30, 1964, 78 Stat. 237; Pub. L. 89-44, title V, Sec. 501(d), June 21, 1965, 79 Stat. 150; Pub. L. 94-529, Sec. 1, Oct. 17, 1976, 90 Stat. 2485; Pub. L. 95-458, Sec. 2(b)(2)(A), Oct. 14, 1978, 92 Stat. 1256; Pub. L. 101-508,

title XI, Sec. 11201(c), Nov. 5, 1990, 104 Stat. 1388-416.) Prior Provisions A prior section 5051, act Aug. 16, 1954, ch. 736, 68A Stat. 611, as amended by acts Mar. 30, 1955, ch. 18, Sec. 3(a)(8), 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 3(a)(8), 70 Stat. 66; Mar. 29, 1957, Pub. L. 85- 12, Sec. 3(a)(6), 71 Stat. 9; June 30, 1958, Pub. L. 85-475, Sec. 3(a)(6), 72 Stat. 259, consisted of provisions similar to those comprising this section, prior to the general revision of this chapter by Pub. L. 85-859. Amendments 1990--Subsec. (a)(1). Pub. L. 101-508, Sec. 11201(c)(1), substituted ``$18'' for ``$9''. Subsec. (a)(2)(C). Pub. L. 101-508, Sec. 11201(c)(2), added subpar. (C). 1978--Subsec. (c). Pub. L. 95-458 added subsec. (c). 1976--Subsec. (a). Pub. L. 94-529 reduced the excise tax on beer for small brewers to $7 per barrel on the first 60,000 barrels produced in the United States and removed for sale or consumption or sale during the calendar year, the reduced rate to be applicable only to brewers producing no more than 2 million barrels of beer in a calendar year, and inserted provision that if several brewers are members of a controlled group, the 2-million barrel limit is to be applied to the controlled group and the 60,000-barrel limit is to be apportioned among the members of the controlled group in accordance with Treasury Department regulations promulgated by the Secretary or his delegate. 1965--Subsec. (a). Pub. L. 89-44 struck out sentence providing for the imposition on and after July 1, 1965, of a tax of $8 in lieu of the tax imposed by the section. 1964--Subsec. (a). Pub. L. 88-348 substituted ``July 1, 1965'' for ``July 1, 1964''. 1963--Subsec. (a). Pub. L. 88-52 substituted ``July 1, 1964'' for

``July 1, 1963''. 1962--Subsec. (a). Pub. L. 87-508 substituted ``July 1, 1963'' for ``July 1, 1962''. 1961--Subsec. (a). Pub. L. 87-72 substituted ``July 1, 1962'' for ``July 1, 1961''. 1960--Subsec. (a). Pub. L. 86-564 substituted ``July 1, 1961'' for ``July 1, 1960''. 1959--Subsec. (a). Pub. L. 86-75 substituted ``July 1, 1960'' for ``July 1, 1959''. Effective Date of 1990 Amendment Amendment by Pub. L. 101-508 effective Jan. 1, 1991, see section 11201(d) of Pub. L. 101-508, set out as a note under section 5001 of this title. Effective Date of 1978 Amendment Amendment by Pub. L. 95-458 effective on first day of first calendar month beginning more than 90 days after Oct. 14, 1978, see section 2(c) of Pub. L. 95-458, set out as a note under section 5042 of this title. Effective Date of 1976 Amendment Section 2 of Pub. L. 94-529 provided that: ``The amendment made by the first section of this Act [amending this section] shall take effect on the first day of the first calendar year which begins after the date of the enactment of this Act [Oct. 17, 1976].'' Effective Date of 1965 Amendment Amendment by Pub. L. 89-44 applicable on and after July 1, 1965, see section 701(d) of Pub. L. 89-44, set out as a note under section 5701 of

this title. Effective Date Section effective July 1, 1959, see section 210(a)(1) of Pub. L. 85- 859, set out as a note under section 5001 of this title. Floor Stocks Taxes on Distilled Spirits, Wine, and Beer Imposition of tax on beer, exception for small domestic producers, exception for certain small wholesale or retail dealers, credit against tax, liability for tax and method of payment, controlled groups, other laws applicable, and definitions, see section 11201(e) of Pub. L. 101- 508, set out as a note under section 5001 of this title. Section Referred to in Other Sections This section is referred to in sections 5041, 5054, 5061, 5671 of this title.

[Code of Federal Regulations] [Title 27, Volume 1] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 27CFR7] [Page 86-101] TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY PART 7_LABELING AND ADVERTISING OF MALT BEVERAGES Subpart A_Scope Sec. 7.1 General. 7.2 Territorial extent. 7.3 Forms prescribed. 7.4 Related regulations. 7.5 Delegations of the Director. Subpart B_Definitions 7.10 Meaning of terms. Subpart C_Labeling Requirements for Malt Beverages 7.20 General. 7.21 Misbranding. 7.22 Mandatory label information. 7.23 Brand names. 7.24 Class and type. 7.25 Name and address. 7.26 Alcoholic content [suspended as of April 19, 1993; see Sec. 7.71]. 7.27 Net contents. 7.28 General requirements. 7.29 Prohibited practices. Subpart D_Requirements for Withdrawal of Imported Malt Beverages From Customs Custody 7.30 Application. [[Page 87]] 7.31 Label approval and release. Subpart E_Requirements for Approval of Labels of Malt Beverages Domestically Bottled or Packed 7.40 Application. 7.41 Certificates of label approval. 7.42 Exhibiting certificates to Government officials.

Subpart F_Advertising of Malt Beverages 7.50 Application. 7.51 Definitions. 7.52 Mandatory statements. 7.53 Legibility of mandatory information. 7.54 Prohibited practices. 7.55 Comparative advertising. Subpart G_General Provisions 7.60 Exports. Subpart H_Interim Regulations for Alcoholic Content Statements 7.71 Alcoholic content. Subpart I_Use of the Term ``Organic.'' 7.81 Use of the term ``organic.'' Authority: 27 U.S.C. 205. Source: T.D. 6521, 25 FR 13859, Dec. 29, 1960, unless otherwise noted. Editorial Note: Nomenclature changes to part 7 appear by T.D. ATF- 425, 65 FR 11891, Mar. 7, 2000. Subpart A_Scope Sec. 7.1 General. The regulations in this part relate to the labeling and advertising of malt beverages. Sec. 7.2 Territorial extent. This part applies to the several States of the United States, the District of Columbia and the Commonwealth of Puerto Rico. Sec. 7.3 Forms prescribed. (a) The appropriate ATF officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form. (b) Forms may be requested from the ATF Distribution Center, P.O. Box 5950, Springfield, Virginia 22153-5190, or by accessing the ATF web site (http://www.atf.treas.gov/). [T.D. ATF-92, 46 FR 46912, Sept. 23, 1981, as amended by T.D. ATF-249,

52 FR 5956, Feb. 27, 1987; T.D. 372, 61 FR 20723, May 8, 1996; T.D. ATF- 425, 65 FR 11891, Mar. 7, 2000] Sec. 7.4 Related regulations. The following regulations also relate to this part: 27 CFR Part 205--National Organic Program 27 CFR Part 1--Basic Permit Requirements Under the Federal Alcohol Administration Act, Nonindustrial Use of Distilled Spirits and Wine, Bulk Sales and Bottling of Distilled Spirits 27 CFR Part 4--Labeling and Advertising of Wine 27 CFR Part 5--Labeling and Advertising of Distilled Spirits 27 CFR Part 13--Labeling Proceedings 27 CFR Part 16--Alcoholic Beverage Health Warning Statement 27 CFR Part 25--Beer 27 CFR Part 26--Liquors and Articles from Puerto Rico and the Virgin Islands 27 CFR Part 27--Importation of Distilled Spirits, Wines, and Beer 27 CFR Part 71--Rules of Practice in Permit Proceedings [T.D. ATF-483, 67 FR 62858, Oct. 8, 2002] Sec. 7.5 Delegations of the Director. Most of the regulatory authorities of the Director contained in this Part 7 are delegated to appropriate ATF officers. These ATF officers are specified in ATF Order 1130.2A, Delegation Order--Delegation of the Director's Authorities in 27 CFR parts 4, 5 and 7, Labeling and Advertising of Wine, Distilled Spirits and Malt Beverages. ATF delegation orders, such as ATF Order 1130.2A, are available to any interested person by mailing a request to the ATF Distribution Center, PO Box 5950, Springfield, Virginia 22150-5190, or by accessing the ATF web site (http://www.atf.treas.gov/). [T.D. ATF-425, 65 FR 11891, Mar. 7, 2000] [[Page 88]] Subpart B_Definitions Sec. 7.10 Meaning of terms. As used in this part, unless the context otherwise requires, terms shall have the meaning ascribed in this subpart. Act. The Federal Alcohol Administration Act. Advertisement. See Sec. 7.51 for meaning of term as used in subpart F of this part. Appropriate ATF officer. An officer or employee of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions relating to the administration or enforcement of this part by ATF Order 1130.2A, Delegation Order--Delegation of the Director's Authorities in 27 CFR part 4, 5 and 7, Labeling and Advertising of Wine, Distilled Spirits and Malt Beverages.

Brand label. The label carrying, in the usual distinctive design, the brand name of the malt beverage. Bottler. Any person who places malt beverages in containers of a capacity of one gallon or less. Container. Any can, bottle, barrel, keg, or other closed receptacle, irrespective of size or of the material from which made, for use for the sale of malt beverages at retail. Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the Department of the Treasury, Washington, DC. Gallon. A U.S. gallon of 231 cubic inches of malt beverages at 39.1 [deg]F (4 [deg]C). All other liquid measures used are subdivisions of the gallon as defined. Interstate or foreign commerce. Commerce between any State and any place outside thereof, or commerce within any Territory or the District of Columbia, or between points within the same State but through any place outside thereof. Malt beverage. A beverage made by the alcoholic fermentation of an infusion or decoction, or combination of both, in potable brewing water, of malted barley with hops, or their parts, or their products, and with or without other malted cereals, and with or without the addition of unmalted or prepared cereals, other carbohydrates or products prepared therefrom, and with or without the addition of carbon dioxide, and with or without other wholesome products suitable for human food consumption. Other terms. Any other term defined in the Federal Alcohol Administration Act and used in this part shall have the same meaning assigned to it by the Act. Packer. Any person who places malt beverages in containers of a capacity in excess of one gallon. Person. Any individual, partnership, joint-stock company, business trust, association, corporation, or other form of business enterprise, including a receiver trustee, or liquidating agent, and including an officer or employee of any agency of a State or political subdivision thereof. United States. The several States, the District of Columbia, and Puerto Rico; the term ``State'' includes the District of Columbia and Puerto Rico. [T.D. ATF-48, 43 FR 13534, Mar. 31, 1978; 44 FR 55839, Sept. 28, 1979, as amended by T.D. ATF-66, 45 FR 40550, June 13, 1980; T.D. ATF-94, 46 FR 55097, Nov. 6, 1981; T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-425, 65 FR 11892, Mar. 7, 2000] Subpart C_Labeling Requirements for Malt Beverages Sec. 7.20 General. (a) Application. This subpart shall apply to malt beverages sold or shipped or delivered for shipment, or otherwise introduced into or received in any State from any place outside thereof, only to the extent that the law of such State imposes similar requirements with respect to the labeling of malt beverages not sold or shipped or delivered for

shipment or otherwise introduced into or received in such State from any place outside thereof. (b) Marking, branding, and labeling. No person engaged in business as a brewer, wholesaler, or importer of malt beverages, directly or indirectly, or through an affiliate, shall sell or ship, or deliver for sale or shipment, or otherwise introduce in interstate or foreign commerce, or receive therein, or remove from Customs custody any malt beverages in containers unless the malt beverages are packaged, and the [[Page 89]] packages are marked, branded, and labeled in conformity with this subpart. (c) Alteration of labels. (1) It shall be unlawful for any person to alter, mutilate, destroy, obliterate, or remove any mark, brand, or label upon malt beverages held for sale in interstate or foreign commerce or after shipment therein, except as authorized by Federal law. The appropriate ATF officer may, upon written application, permit additional labeling or relabeling of malt beverages in containers if, in his judgment, the facts show that the additional labeling or relabeling is for the purpose of compliance with the requirements of this subpart or of State law. (2) Application for permission to relabel shall be accompanied by two complete sets of the old labels and two complete sets of any proposed labels, together with a statement of the reasons for relabeling, the quantity and the location of the malt beverages, and the name and address of the person by whom they will be relabeled. [T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-66, 45 FR 40551, June 13, 1980; T.D. ATF-425, 65 FR 11892, Mar. 7, 2000] Sec. 7.21 Misbranding. Malt beverages in containers shall be deemed to be misbranded: (a) If the container fails to bear on it a brand label (or a brand label and other permitted labels) containing the mandatory label information as required by Sec. Sec. 7.20 through 7.29 and conforming to the general requirements specified in this part. (b) If the container, cap, or any label on the container, or any carton, case, or other covering of the container used for sale at retail, or any written, printed, graphic, or other matter accompanying the container to the consumer buyer contains any statement, design, device, or graphic, pictorial, or emblematic representation that is prohibited by Sec. Sec. 7.20 through 7.29. (c) If the container has blown, branded, or burned therein the name or other distinguishing mark of any person engaged in business as a brewer, wholesaler, bottler, or importer, of malt beverages, or of any other person, except the person whose name is required to appear on the brand label. Sec. 7.22 Mandatory label information.

There shall be stated: (a) On the brand label: (1) Brand name, in accordance with Sec. 7.23. (2) Class, in accordance with Sec. 7.24. (3) Name and address (except when branded or burned in the container) in accordance with Sec. 7.25, except as provided in paragraph (b) of this section. (4) Net contents (except when blown, branded, or burned, in the container) in accordance with Sec. 7.27. (b) On the brand label or on a separate label (back or front): (1) In the case of imported malt beverages, name and address of importer in accordance with Sec. 7.25. (2) In the case of malt beverages bottled or packed for the holder of a permit or a retailer, the name and address of the bottler or packer, in accordance with Sec. 7.25. (3) Alcoholic content, when required by State law, in accordance with Sec. 7.71. (4) A statement that the product contains FD&C Yellow No. 5, where that coloring material is used in a product bottled on or after October 6, 1984. (5) The following statement, separate and apart from all other information, when saccharin is present in the finished product: Use of this product may be hazardous to your health. This product contains saccharin which has been determined to cause cancer in laboratory animals. (6) Declaration of sulfites. The statement ``Contains sulfites'' or ``Contains (a) sulfiting agent(s)'' or a statement identifying the specific sulfiting agent where sulfur dioxide or a sulfiting agent is detected at a level of 10 or more parts per million, measured as total sulfur dioxide. The sulfite declaration may appear on a strip label or neck label in lieu of appearing on the front or back label. The provisions of this paragraph shall apply to: (i) Any certificate of label approval issued on or after January 9, 1987; (ii) Any malt beverage bottled on or after July 9, 1987, regardless of the date of issuance of the certificate of label approval; and, [[Page 90]] (iii) Any malt beverage removed on or after January 9, 1988. (7) Declaration of aspartame. The following statement, in capital letters, separate and apart from all other information, when the product contains aspartame in accordance with Food and Drug Administration (FDA) regulations: ``PHENYLKETONURICS: CONTAINS PHENYLALANINE.'' (Paragraph (b)(6) approved by the Office of Management and Budget under Control No. 1512-0469) [T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-94, 46 FR 55097, Nov. 6, 1981; T.D. ATF-150, 48 FR 45557, Oct. 6, 1983; T.D. ATF- 220, 50 FR 51852, Dec. 20, 1985; T.D. ATF-236, 51 FR 34710, Sept. 30,

1986; T.D. ATF-282, 54 FR 7162, Feb. 16, 1989; T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-339, 58 FR 21231, Apr. 19, 1993; T.D. ATF- 347, 58 FR 44132, Aug. 19, 1993] Sec. 7.23 Brand names. (a) General. The product shall bear a brand name, except that if not sold under a brand name, then the name of the person required to appear on the brand label shall be deemed a brand name for the purpose of this part. (b) Misleading brand names. No label shall contain any brand name, which, standing alone, or in association with other printed or graphic matter, creates any impression or inference as to the age, origin, identity, or other characteristics of the product unless the appropriate ATF officer finds that such brand name, either when qualified by the word ``brand'' or when not so qualified, conveys no erroneous impressions as to the age, origin, identity, or other characteristics of the product. (c) Trade name of foreign origin. This section shall not operate to prohibit the use by any person of any trade name or brand of foreign origin not effectively registered in the United States Patent Office on August 29, 1935, which has been used by such person or his predecessors in the United States for a period of at least 5 years immediately preceding August 29, 1935: Provided, That if such trade name or brand is used, the designation of the product shall be qualified by the name of the locality in the United States in which produced, and such qualification shall be in script, type, or printing as conspicuous as the trade name or brand. Sec. 7.24 Class and type. (a) The class of the malt beverage shall be stated and, if desired, the type thereof may be stated. Statements of class and type shall conform to the designation of the product as known to the trade. If the product is not known to the trade under a particular designation, a distinctive or fanciful name, together with an adequate and truthful statement of the composition of the product, shall be stated, and such statement shall be deemed to be a statement of class and type for the purposes of this part. (b) Malt beverages which have been concentrated by the removal of water therefrom and reconstituted by the addition of water and carbon dioxide shall for the purpose of this part be labeled in the same manner as malt beverages which have not been concentrated and reconstituted, except that there shall appear in direct conjunction with, and as a part of, the class designation the statement ``PRODUCED FROM----CONCENTRATE'' (the blank to be filled in with the appropriate class designation). All parts of the class designation shall appear in lettering of substantially the same size and kind.

(c) No product shall be designated as ``half and half'' unless it is in fact composed of equal parts of two classes of malt beverages the names of which are conspicuously stated in conjunction with the designation ``half and half''. (d) Products containing less than one-half of 1 percent (.5%) of alcohol by volume shall bear the class designation ``malt beverage,'' or ``cereal beverage,'' or ``near beer.'' If the designation ``near beer'' is used, both words must appear in the same size and style of type, in the same color of ink, and on the same background. No product containing less than one-half of 1 percent of alcohol by volume shall bear the class designations ``beer'', ``lager beer'', ``lager'', ``ale'', ``porter'', or ``stout'', or any other class or type designation commonly applied to malt beverages containing one-half of 1 percent or more of alcohol by volume. [[Page 91]] (e) No product other than a malt beverage fermented at comparatively high temperature, possessing the characteristics generally attributed to ``ale,'' ``porter,'' or ``stout'' and produced without the use of coloring or flavoring materials (other than those recognized in standard brewing practices) shall bear any of these class designations. (f) Geographical names for distinctive types of malt beverages (other than names found under paragraph (g) of this section to have become generic) shall not be applied to malt beverages produced in any place other than the particular region indicated by the name unless (1) in direct conjunction with the name there appears the word ``type'' or the word ``American'', or some other statement indicating the true place of production in lettering substantially as conspicuous as such name, and (2) the malt beverages to which the name is applied conform to the type so designated. The following are examples of distinctive types of beer with geographical names that have not become generic; Dortmund, Dortmunder, Vienna, Wein, Weiner, Bavarian, Munich, Munchner, Salvator, Kulmbacher, Wurtzburger, Pilsen (Pilsener and Pilsner): Provided, That notwithstanding the foregoing provisions of this section, beer which is produced in the United States may be designated as ``Pilsen,'' ``Pilsener,'' or ``Pilsner'' without further modification, if it conforms to such type. (g) Only such geographical names for distinctive types of malt beverages as the appropriate ATF officer finds have by usage and common knowledge lost their geographical significance to such an extent that they have become generic shall be deemed to have become generic, e.g., India Pale Ale. (h) Except as provided in Sec. 7.23(b), geographical names that are not names for distinctive types of malt beverages shall not be applied to malt beverages produced in any place other than the particular place or region indicated in the name. [T.D. 6672, 28 FR 9637, Aug. 31, 1963, as amended at 29 FR 3572, Mar. 20, 1964; T.D. ATF-249, 52 FR 5956, Feb. 27, 1987; T.D. ATF 280, 54 FR 3594, Jan. 25, 1989; T.D. ATF-425, 65 FR 11892, Mar. 7, 2000] Sec. 7.25 Name and address.

(a) Domestic malt beverages. (1) On labels of containers of domestic malt beverages there shall be stated the name of the bottler or packer and the place where bottled or packed. The bottler's or packer's principal place of business may be shown in lieu of the actual place where bottled or packed if the address shown is a location where bottling or packing operation takes place. The appropriate ATF officer may disapprove the listing of a principal place of business if its use would create a false or misleading impression as to the geographic origin of the beer. (2) If malt beverages are bottled or packed for a person other than the actual bottler or packer there may be stated in addition to the name and address of the bottler or packer (but not in lieu of), the name and address of such other person immediately preceded by the words ``bottled for,'' ``distributed by,'' or other similar appropriate phrase. (b) Imported malt beverages. On labels of containers of imported malt beverages, there shall be stated the words ``imported by,'' or a singular appropriate phrase, and immediately thereafter the name of the permittee who is the importer, or exclusive agent, or sole distributor, or other person responsible for the importation, together with the principal place of business in the United States of such person. In addition there may, but need not, be stated unless required by State or foreign law or regulation the name and principal place of business of the foreign manufacturer, bottler, packer, or shipper. (c) Post-office address. The ``place'' stated shall be the post- office address, except that the street address may be omitted. No additional places or addresses shall be stated for the same person, unless (1) such person is actively engaged in the conduct of an additional bona fide and actual malt beverage business at such additional place or address, and (2) the label also contains, in direct conjunction therewith, appropriate descriptive material indicating the function occurring at such [[Page 92]] additional place or address in connection with the particular malt beverage. (Approved by the Office of Management and Budget under control number 1512-0474) [T.D. 6551, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-225, 51 FR 8492, Mar. 12, 1986] Sec. 7.26 Alcoholic content [suspended as of April 19, 1993; see Sec. 7.71]. (a) The alcoholic content and the percentage and quantity of the original extract shall not be stated unless required by State law. When alcoholic content is required to be stated, but the manner of statement is not specified in the State law, it shall be stated in percentage of alcohol by weight or by volume, and not by proof or by maximums or minimums. Otherwise the manner of statement shall be as specified in the State law. (b) The terms ``low alcohol'' or ``reduced alcohol'' may be used only on malt beverage products containing less than 2.5 percent alcohol by volume.

(c) The term ``non-alcoholic'' may be used on malt beverage products, provided the statement ``contains less than 0.5 percent (or .5%) alcohol by volume'' appears in direct conjunction with it, in readily legible printing and on a completely contrasting background. (d) The term ``alcohol-free'' may be used only on malt beverage products containing no alcohol. [T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF 280, 54 FR 3594, Jan. 25, 1989; T.D. ATF-339, 58 FR 21231, Apr. 19, 1993] Effective Date Note: At 58 FR 21231, Apr. 19, 1993, Sec. 7.26 was suspended indefinitely. Sec. 7.27 Net contents. (a) Net contents shall be stated as follows: (1) If less than 1 pint, in fluid ounces, or fractions of a pint. (2) If 1 pint, 1 quart, or 1 gallon, the net contents shall be so stated. (3) If more than 1 pint, but less than 1 quart, the net contents shall be stated in fractions of a quart, or in pints and fluid ounces. (4) If more than 1 quart, but less than 1 gallon, the net contents shall be stated in fractions of a gallon, or in quarts, pints, and fluid ounces. (5) If more than 1 gallon, the net contents shall be stated in gallons and fractions thereof. (b) All fractions shall be expressed in their lowest denominations. (c) The net contents need not be stated on any label if the net contents are displayed by having the same blown, branded, or burned in the container in letters or figures in such manner as to be plainly legible under ordinary circumstances and such statement is not obscured in any manner in whole or in part. Sec. 7.28 General requirements. (a) Contrasting background. All labels shall be so designed that all statements required by this subpart are readily legible under ordinary conditions, and all the statements are on a contrasting background. (b) Size of type-- (1) Containers of more than one-half pint. Except for statements of alcoholic content, all mandatory information required on labels by this part shall be in script, type, or printing not smaller than 2 millimeters. If contained among other descriptive or explanatory information, the script, type, or printing of all mandatory information shall be of a size substantially more conspicuous than that of the descriptive or explanatory information. (2) Containers of one-half pint or less. Except for statements of alcoholic content, all mandatory information required on labels by this part shall be in script, type, or printing not smaller than 1 millimeter. If contained among other descriptive or explanatory information, the script, type, or printing of all mandatory information shall be of a size substantially more conspicuous than that of the descriptive or explanatory information. (3) Alcoholic content statement. All portions of the alcoholic content statement shall be of the same size and kind of lettering and of equally conspicuous color. Unless otherwise required by State law,

the statement of alcoholic content shall be in script, type, or printing: (i) Not smaller than 1 millimeter for containers of one-half pint or less, or smaller than 2 millimeters for containers larger than one-half pint; or [[Page 93]] (ii) Not larger than 3 millimeters for containers of 40 fl. oz. or less, or larger than 4 millimeters for containers larger than 40 fl. oz. (c) English language. All information, other than the brand name, required by this subpart to be stated on labels shall be in the English language. Additional statements in foreign languages may be made, if the statements do not conflict with, or are contradictory to, the requirements of this subpart. Labels on containers of malt beverages bottled or packed for consumption within Puerto Rico may, if desired, state the information required by this subpart solely in the Spanish language, in lieu of the English language, except that the net contents shall also be stated in the English language. (d) Labels firmly affixed. All labels shall be affixed to containers of malt beverages in such manner that they cannot be removed without thorough application of water or other solvents. (e) Additional information. Labels may contain information other than the mandatory label information required by this subpart if the information complies with the requirements of this subpart and does not conflict with, or in any manner qualify, statements required by this part. [T.D. ATF-66, 45 FR 40552, June 13, 1980, as amended by T.D. ATF-94, 46 FR 55097, Nov. 6, 1981; T.D. ATF-339, 58 FR 21231, Apr. 19, 1993] Sec. 7.29 Prohibited practices. (a) Statements on labels. Containers of malt beverages, or any labels on such containers, or any carton, case, or individual covering of such containers, used for sale at retail or any written, printed, graphic, or other matter accompanying such containers to the consumer shall not contain: (1) Any statement that is false or untrue in any particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, or by the addition of irrelevant, scientific or technical matter, tends to create a misleading impression. (2) Any statement that is disparaging of a competitor's products. (3) Any statement, design, device, or representation which is obscene or indecent. (4) Any statement, design, device, or representation of or relating to analyses, standards, or tests, irrespective of falsity, which the appropriate ATF officer finds to be likely to mislead the consumer. (5) Any statement, design, device, or representation of or relating to any guarantee, irrespective of falsity, which the appropriate ATF officer finds to be likely to mislead the consumer. Money-back guarantees are not prohibited. (6) A trade or brand name that is the name of any living individual of public prominence, or existing private or public organization, or is a name that is in simulation or is an abbreviation thereof, or any graphic, pictorial, or emblematic representation of any such individual

or organization, if the use of such name or representation is likely falsely to lead the consumer to believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of, such individual or organization: Provided, That this paragraph shall not apply to the use of the name of any person engaged in business as a producer, importer, bottler, packer, wholesaler, retailer, or warehouseman, of malt beverages, nor to the use by any person of a trade or brand name that is the name of any living individual of public prominence, or existing private or public organization, provided such trade or brand name was used by him or his predecessors in interest prior to August 29, 1935. (b) Simulation of Government stamps. No label shall be of such design as to resemble or simulate a stamp of the United States Government or of any State or foreign government. No label, other than stamps authorized or required by the United States Government or any State or foreign government, shall state or indicate that the malt beverage contained in the labeled container is brewed, made, bottled, packed, labeled, or sold under, or in accordance with, any municipal, State, Federal, or foreign government authorization, law, or regulation, unless such statement is required or specifically authorized by Federal, State, or municipal, law or regulation, or is required [[Page 94]] or specifically authorized by the laws or regulations of the foreign country in which such malt beverages were produced. If the municipal or State government permit number is stated upon a label, it shall not be accompanied by an additional statement relating thereto, unless required by State law. (c) Use of word ``bonded'', etc. The words ``bonded'', ``bottled in bond'', ``aged in bond'', ``bonded age'', ``bottled under customs supervision'', or phrases containing these or synonymous terms which imply governmental supervision over production, bottling, or packing, shall not be used on any label for malt beverages. (d) Flags, seals, coats of arms, crests, and other insignia. Labels shall not contain, in the brand name or otherwise, any statement, design, device, or pictorial representation which the appropriate ATF officer finds relates to, or is capable of being construed as relating to, the armed forces of the United States, or the American flag, or any emblem, seal, insignia, or decoration associated with such flag or armed forces; nor shall any label contain any statement, design, device, or pictorial representation of or concerning any flag, seal, coat of arms, crest or other insignia, likely to mislead the consumer to believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of the government, organization, family, or individual with whom such flag, seal, coat of arms, crest, or insignia is associated. (e) Health-related statements--(1) Definitions. When used in this paragraph (e), terms are defined as follows: (i) Health-related statement means any statement related to health (other than the warning statement required by Sec. 16.21 of this chapter) and includes statements of a curative or therapeutic nature that, expressly or by implication, suggest a relationship between the consumption of alcohol, malt beverages, or any substance found within the malt beverage, and health benefits or effects on health. The term

includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, malt beverages, or any substance found within the malt beverage, as well as health-related directional statements. The term also includes statements and claims that imply that a physical or psychological sensation results from consuming the malt beverage, as well as statements and claims of nutritional value (e.g., statements of vitamin content). Statements concerning caloric, carbohydrate, protein, and fat content do not constitute nutritional claims about the product. (ii) Specific health claim is a type of health-related statement that, expressly or by implication, characterizes the relationship of the malt beverage, alcohol, or any substance found within the malt beverage, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between malt beverages, alcohol, or any substance found within the malt beverage, and a disease or health-related condition. (iii) Health-related directional statement is a type of health- related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of malt beverage or alcohol consumption. (2) Rules for labeling--(i) Health-related statements. In general, labels may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement. (ii) Specific health claims. (A) TTB will consult with the Food and Drug Administration (FDA), as needed, on the use of a specific health claim on a malt beverage label. If FDA determines that the use of such a labeling claim is a drug claim that is not in compliance with the requirements of the Federal Food, Drug, and Cosmetic Act, TTB [[Page 95]] will not approve the use of that specific health claim on a malt beverage label. (B) TTB will approve the use of a specific health claim on a malt beverage label only if the claim is truthful and adequately substantiated by scientific or medical evidence; sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim. (iii) Health-related directional statements. A statement that directs consumers to a third party or other source for information regarding the effects on health of malt beverage or alcohol consumption is presumed misleading unless it-- (A) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of malt beverage or alcohol consumption; and (B)(1) Includes as part of the health-related directional statement

the following disclaimer: ``This statement should not encourage you to drink or to increase your alcohol consumption for health reasons;'' or (2) Includes as part of the health-related directional statement some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement. (f) Use of words ``strong,'' ``full strength,'' and similar words. Labels shall not contain the words ``strong,'' ``full strength,'' ``extra strength,'' ``high test,'' ``high proof,'' ``pre-war strength,'' ``full oldtime alcoholic strength,'' or similar words or statements, likely to be considered as statements of alcoholic content, unless required by State law. This does not preclude use of the terms ``low alcohol,'' ``reduced alcohol,'' ``non-alcoholic,'' and ``alcohol-free,'' in accordance with Sec. 7.71 (d), (e), and (f), nor does it preclude labeling with the alcohol content in accordance with Sec. 7.71. (g) Use of numerals. Labels shall not contain any statements, designs, or devices, whether in the form of numerals, letters, characters, figures, or otherwise, which are likely to be considered as statements of alcoholic content, unless required by State law, or as permitted by Sec. 7.71. (h) Coverings, cartons, or cases. Individual coverings, cartons, cases, or other wrappers of containers of malt beverages, used for sale at retail, or any written, printed, graphic, or other matter accompanying the container shall not contain any statement or any graphic pictorial, or emblematic representation, or other matter, which is prohibited from appearing on any label or container of malt beverages. [T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-66, 45 FR 40552, June 13, 1980; T.D. ATF-180, 49 FR 31674, Aug. 8, 1984; T.D. ATF 280, 54 FR 3594, Jan. 25, 1989; T.D. ATF-339, 58 FR 21232, Apr. 19, 1993; TTB T.D.-1, 68 FR 10105, Mar. 3, 2003] Subpart D_Requirements for Withdrawal of Imported Malt Beverages From Customs Custody Sec. 7.30 Application. Sections 7.30 and 7.31 shall apply to withdrawals of malt beverages from customs custody only in the event that the laws or regulations of the State in which such malt beverages are withdrawn for consumption require that all malt beverages sold or otherwise disposed of in such State be labeled in conformity with the requirements of Sec. Sec. 7.20 through 7.29. Sec. 7.31 Label approval and release. (a) Certificate of label approval. No imported malt beverages in containers shall be released from Customs custody for consumption unless there is deposited with the appropriate Customs officer at the port of entry the original or a photostatic copy of an approved certificate of label approval, ATF Form 5100.31. (b) Release. If the original or photostatic copy of ATF Form 5100.31 has been approved, the brand or lot of imported malt beverages bearing labels identical with those shown thereon

[[Page 96]] may be released from U.S. Customs custody. (c) Relabeling. Imported malt beverages in U.S. Customs custody which are not labeled in conformity with certificates of label approval issued by the appropriate ATF officer must be relabeled, prior to release, under the supervision and direction of the U.S. Customs officers of the port at which the malt beverages are located. (d) Cross reference. For procedures regarding the issuance, denial, and revocation of certificates of label approval, as well as appeal procedures, see part 13 of this chapter. [T.D. ATF-66, 45 FR 40552, June 13, 1980, as amended by T.D. ATF-94, 46 FR 55097, Nov. 6, 1981; T.D. ATF-242, 51 FR 39525, Oct. 29, 1986; T.D. ATF-359, 59 FR 42160, Aug. 17, 1994; T.D. ATF-406, 64 FR 2129, Jan. 13, 1999] Subpart E_Requirements for Approval of Labels of Malt Beverages Domestically Bottled or Packed Sec. 7.40 Application. Sections 7.40 through 7.42 shall apply only to persons bottling or packing malt beverages (other than malt beverages in customs custody) for shipment, or delivery for sale or shipment, into a State, the laws or regulations of which require that all malt beverages sold or otherwise disposed of in such State be labeled in conformity with the requirements of Sec. Sec. 7.20 through 7.29. Sec. 7.41 Certificates of label approval. (a) Requirement. No person may bottle or pack malt beverages, or remove malt beverages from the plant where bottled or packed unless an approved certificate of label approval, ATF Form 5100.31, is issued. (b) Cross reference. For procedures regarding the issuance, denial, and revocation of certificates of label approval, as well as appeal procedures, see part 13 of this chapter. [T.D. ATF-406, 64 FR 2129, Jan. 13, 1999, as amended by T.D. ATF-425, 65 FR 11892, Mar. 7, 2000] Sec. 7.42 Exhibiting certificates to Government officials. Any bottler or packer holding an original or duplicate original of a certificate of label approval shall, upon demand exhibit such certificate to a duly authorized representative of the United States Government or any duly authorized representative of a State or political subdivision thereof. Subpart F_Advertising of Malt Beverages Sec. 7.50 Application. No person engaged in business as a brewer, wholesaler, or importer, of malt beverages directly or indirectly or through an affiliate, shall

publish or disseminate or cause to be published or disseminated by radio or television broadcast, or in any newspaper, periodical, or any publication, by any sign or outdoor advertisement, or in any other printed or graphic matter, any advertisement of malt beverages, if such advertising is in, or is calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, unless such advertisement is in conformity with Sec. Sec. 7.50-7.55 of this part. Provided, that such sections shall not apply to outdoor advertising in place on (effective date of this Treasury decision), but shall apply upon replacement, restoration, or renovation of any such advertising; and provided further, that Sec. Sec. 7.50-7.55 of this part shall apply to advertisements of malt beverages intended to be sold or shipped or delivered for shipment, or otherwise introduced into or received in any State from any place outside thereof, only to the extent that the laws of such State impose similar requirements with respect to advertisements of malt beverages manufactured and sold or otherwise disposed of in such State. And provided further that such sections shall not apply to a retailer or the publisher of any newspaper, periodical, or other publication, or radio or television broadcast, unless such retailer or publisher or radio or television broadcaster is engaged in business as a brewer, wholesaler, bottler, or importer of [[Page 97]] malt beverages, directly or indirectly, or through an affiliate. [T.D. ATF-180, 49 FR 31675, Aug. 8, 1984] Sec. 7.51 Definitions. As used in Sec. Sec. 7.50 through 7.55 of this part, the term ``advertisement'' includes any written or verbal statement, illustration, or depiction which is in, or calculated to induce sales in, interstate or foreign commerce, or is disseminated by mail, whether it appears in a newspaper, magazine, trade booklet, menu, wine card, leaflet, circular, mailer, book insert, catalog, promotional material, sales pamphlet, or in any written, printed, graphic, or other matter accompanying the container, representations made on cases, or in any billboard, sign, or other outdoor advertisement, public transit card, other periodical literature, publication, or in a radio or television broadcast, or in any other media; except that such term shall not include: (a) Any label affixed to any container of malt beverages; or any coverings, cartons, or cases of containers of malt beverages used for sale at retail which constitute a part of the labeling under Sec. Sec. 7.20 through 7.29 of this part. (b) Any editorial or other reading material (i.e., news release) in any periodical or publication or newspaper for the publication of which no money or valuable consideration is paid or promised, directly or indirectly, by any brewer, and which is not written by or at the direction of the brewer. [T.D. ATF-180, 49 FR 31675, Aug. 8, 1984] Sec. 7.52 Mandatory statements. (a) Responsible advertiser. The advertisement shall state the name

and address of the brewer, bottler, packer, wholesaler, or importer responsible for its publication or broadcast. Street number and name may be omitted in the address. (b) Class. The advertisement shall contain a conspicuous statement of the class to which the product belongs, corresponding to the statement of class which is required to appear on the label of the product. (c) Exception. (1) If an advertisement refers to a general malt beverage line or all of the malt beverage products of one company, whether by the company name or by the brand name common to all the malt beverages in the line, the only mandatory information necessary is the name and address of the responsible advertiser. This exception does not apply where only one type of malt beverage is marketed under the specific brand name advertised. (2) On consumer specialty items, the only information necessary is the company name or brand name of the product. [T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-180, 49 FR 31675, Aug. 8, 1984] Sec. 7.53 Legibility of mandatory information. (a) Statements required under Sec. Sec. 7.50 through 7.55 of this part that appear in any written, printed, or graphic advertisement shall be in lettering or type size sufficient to be conspicuous and readily legible. (b) In the case of signs, billboards, and displays the name and address of the permittee responsible for the advertisement may appear in type size of lettering smaller than the other mandatory information, provided such information can be ascertained upon closer examination of the sign or billboard. (c) Mandatory information shall be so stated as to be clearly a part of the advertisement and shall not be separated in any manner from the remainder of the advertisement. (d) Mandatory information for two or more products shall not be stated unless clearly separated. (e) Mandatory information shall be so stated in both the print and audiovisual media that it will be readily apparent to the persons viewing the advertisement. [T.D. ATF-180, 49 FR 31675, Aug. 8, 1984] Sec. 7.54 Prohibited statements. (a) General prohibition. An advertisement of malt beverages shall not contain: (1) Any statement that is false or untrue in any material particular, or that, irrespective of falsity, directly, or by ambiguity, omission, or inference, [[Page 98]] or by the addition of irrelevant, scientific or technical matter, tends to create a misleading impression. (2) Any statement that is disparaging of a competitor's products. (3) Any statement, design, device, or representation which is

obscene or indecent. (4) Any statement, design, device, or representation of or relating to analyses, standards, or tests, irrespective of falsity, which the appropriate ATF officer finds to be likely to mislead the consumer. (5) Any statement, design, device, or representation of or relating to any guarantee, irrespective of falsity, which the appropriate ATF officer finds to be likely to mislead the consumer. Money-back guarantees are not prohibited. (6) Any statement that the malt beverages are brewed, made, bottled, packed, labeled, or sold under, or in accordance with, any municipal, State, or Federal authorization, law, or regulation; and if a municipal or State permit number is stated, the permit number shall not be accompanied by any additional statement relating thereto. (7) The words ``bonded'', ``bottled in bond'', ``aged in bond'', ``bonded age'', ``bottled under customs supervision'', or phrases containing these or synonymous terms which imply governmental supervision over production, bottling, or packing. (b) Statements inconsistent with labeling. (1) Advertisements shall not contain any statement concerning a brand or lot of malt beverages that is inconsistent with any statement on the labeling thereof. (2) Any label depicted on a bottle in an advertisement shall be a reproduction of an approved label. (c) Alcoholic content. (1) Advertisements shall not contain the words ``strong,'' ``full strength,'' ``extra strength,'' ``high test,'' ``high proof,'' ``full alcohol strength,'' or any other statement of alcoholic content, or any statement of the percentage and quantity of the original extract, or any numerals, letters, characters, figures, or similar words or statements, likely to be considered as statements of alcoholic content, unless required by State law. This does not preclude use of the terms ``low alcohol,'' ``reduced alcohol,'' ``non- alcoholic,'' and ``alcohol-free,'' as used on labels, in accordance with Sec. 7.71 (d), (e), and (f). (2) An approved malt beverage label which bears a statement of alcoholic content permitted under Sec. 7.71 may be depicted in any advertising media. The statement of alcoholic content on the label may not appear more prominently in the advertisement than it does on the approved label. (3) An actual malt beverage bottle showing the approved label bearing a statement of alcoholic content permitted under Sec. 7.71 may be displayed in any advertising media. (d) Class. (1) No product containing less than one-half of 1 per centum of alcohol by volume shall be designated in any advertisement as ``beer'', ``lager beer'', ``lager'', ``ale'', ``porter'', or ``stout'', or by any other class or type designation commonly applied to fermented malt beverages containing one-half of 1 per centum or more of alcohol by volume. (2) No product other than a malt beverage fermented at comparatively high temperature, possessing the characteristics generally attributed to ``ale,'' ``porter,'' or ``stout'' and produced without the use of coloring or flavoring materials (other than those recognized in standard brewing practices) shall be designated in any advertisement by any of these class designations. (e) Health-related statements--(1) Definitions. When used in this paragraph (e), terms are defined as follows: (i) Health-related statement means any statement related to health and includes statements of a curative or therapeutic nature that,

expressly or by implication, suggest a relationship between the consumption of alcohol, malt beverages, or any substance found within the malt beverage, and health benefits or effects on health. The term includes both specific health claims and general references to alleged health benefits or effects on health associated with the consumption of alcohol, malt beverages, or any substance found within the malt beverage, as well as health-related directional statements. The term also includes statements and claims that imply that a [[Page 99]] physical or psychological sensation results from consuming the malt beverage, as well as statements and claims of nutritional value (e.g., statements of vitamin content). Statements concerning caloric, carbohydrate, protein, and fat content do not constitute nutritional claims about the product. (ii) Specific health claim is a type of health-related statement that, expressly or by implication, characterizes the relationship of the malt beverage, alcohol, or any substance found within the malt beverage, to a disease or health-related condition. Implied specific health claims include statements, symbols, vignettes, or other forms of communication that suggest, within the context in which they are presented, that a relationship exists between malt beverages, alcohol, or any substance found within the malt beverage, and a disease or health-related condition. (iii) Health-related directional statement is a type of health- related statement that directs or refers consumers to a third party or other source for information regarding the effects on health of malt beverage or alcohol consumption. (2) Rules for advertising--(i) Health-related statements. In general, advertisements may not contain any health-related statement that is untrue in any particular or tends to create a misleading impression as to the effects on health of alcohol consumption. TTB will evaluate such statements on a case-by-case basis and may require as part of the health-related statement a disclaimer or some other qualifying statement to dispel any misleading impression conveyed by the health-related statement. Such disclaimer or other qualifying statement must appear as prominent as the health-related statement. (ii) Specific health claims. A specific health claim will not be considered misleading if it is truthful and adequately substantiated by scientific or medical evidence; sufficiently detailed and qualified with respect to the categories of individuals to whom the claim applies; adequately discloses the health risks associated with both moderate and heavier levels of alcohol consumption; and outlines the categories of individuals for whom any levels of alcohol consumption may cause health risks. This information must appear as part of the specific health claim and in a manner as prominent as the specific health claim. (iii) Health-related directional statements. A statement that directs consumers to a third party or other source for information regarding the effects on health of malt beverage or alcohol consumption is presumed misleading unless it-- (A) Directs consumers in a neutral or other non-misleading manner to a third party or other source for balanced information regarding the effects on health of malt beverage or alcohol consumption; and (B)(1) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related

directional statement, the following disclaimer: ``This statement should not encourage you to drink or increase your alcohol consumption for health reasons;'' or (2) Includes as part of the health-related directional statement, and in a manner as prominent as the health-related directional statement, some other qualifying statement that the appropriate TTB officer finds is sufficient to dispel any misleading impression conveyed by the health-related directional statement. (f) Confusion of brands. Two or more different brands or lots of malt beverages shall not be advertised in one advertisement (or in two or more advertisements in one issue of a periodical or a newspaper or in one piece of other written, printed, or graphic matter) if the advertisement tends to create the impression that representations made as to one brand or lot apply to the other or others, and if as to such latter the representations contravene any provision of Sec. Sec. 7.50 through 7.54 or are in any respect untrue. (g) Flags, seals, coats of arms, crests, and other insignia. No advertisement shall contain any statement, design, device, or pictorial representation of or relating to, or capable of being construed as relating to the armed forces of the United States, or of the American flag, or of any emblem, seal, insignia, or decoration associated with such [[Page 100]] flag or armed forces; nor shall any advertisement contain any statement, device, design, or pictorial representation of or concerning any flag, seal, coat of arms, crest, or other insignia, likely to mislead the consumer to believe that the product has been endorsed, made, or used by, or produced for, or under the supervision of, or in accordance with the specifications of the government, organization, family, or individual with whom such flag, seal, coat of arms, crest, or insignia is associated. (h) Deceptive advertising techniques. Subliminal or similar techniques are prohibited. ``Subliminal or similar techniques,'' as used in this part, refers to any device or technique that is used to convey, or attempts to convey, a message to a person by means of images or sounds of a very brief nature that cannot be perceived at a normal level of awareness. [T.D. 6521, 25 FR 13859, Dec. 29, 1960, as amended by T.D. ATF-180, 49 FR 31675, Aug. 8, 1984; T.D. ATF 280, 54 FR 3594, Jan. 25, 1989; T.D. ATF-339, 58 FR 21232, Apr. 19, 1993; TTB T.D.-1, 68 FR 10106, Mar. 3, 2003] Sec. 7.55 Comparative advertising. (a) General. Comparative advertising shall not be disparaging of a competitor's product. (b) Taste tests. (1) Taste test results may be used in advertisements comparing competitors' products unless they are disparaging, deceptive, or likely to mislead the consumer. (2) The taste test procedure used shall meet scientifically accepted procedures. An example of a scientifically accepted procedure is outlined in the Manual on Sensory Testing Methods, ASTM Special

Technical Publication 434, published by the American Society for Testing and Materials, 1916 Race Street, Philadelphia, Pennsylvania 19103, ASTM, 1968, Library of Congress Catalog Card Number 68-15545. (3) A statement shall appear in the advertisement providing the name and address of the testing administrator. [T.D. ATF-180, 49 FR 31676, Aug. 8, 1984] Subpart G_General Provisions Sec. 7.60 Exports. This part shall not apply to malt beverages exported in bond. Subpart H_Interim Regulations for Alcoholic Content Statements Sec. 7.71 Alcoholic content. (a) General. Alcoholic content and the percentage and quantity of the original gravity or extract may be stated on a label unless prohibited by State law. When alcoholic content is stated, and the manner of statement is not required under State law, it shall be stated as prescribed in paragraph (b) of this section. (b) Form of statement. (1) Statement of alcoholic content shall be expressed in percent alcohol by volume, and not by percent by weight, proof, or by maximums or minimums. (2) For malt beverages containing 0.5 percent or more alcohol by volume, statements of alcoholic content shall be expressed to the nearest one-tenth of a percent, subject to the tolerance permitted by paragraph (c) (1) and (2) of this section. For malt beverages containing less than 0.5 percent alcohol by volume, alcoholic content may be expressed in one-hundredths of a percent, subject to the tolerance permitted in paragraph (c)(3) of this section. (3) Alcoholic content shall be expressed in the following fashion: ``alcohol--percent by volume,'' ``alcohol by volume--percent,'' ``-- percent alcohol by volume,'' or ``--percent alcohol/volume.'' The abbreviations ``alc'' and ``vol'' may be used in lieu of the words ``alcohol'' and ``volume,'' and the symbol ``%'' may be used in lieu of the word ``percent.'' (c) Tolerances. (1) For malt beverages containing 0.5 percent or more alcohol by volume, a tolerance of 0.3 percent will be permitted, either above or below the stated percentage of alcohol. Any malt beverage which is labeled as containing 0.5 percent or more alcohol by volume may not contain less than 0.5 percent alcohol by volume, regardless of any tolerance. [[Page 101]] (2) For malt beverages which are labeled as ``low alcohol'' or ``reduced alcohol'' under paragraph (d) of this section, the actual alcoholic content may not equal or exceed 2.5 percent alcohol by volume, regardless of any tolerance permitted by paragraph (c)(1) of this section. (3) For malt beverages containing less than 0.5 percent alcohol by volume, the actual alcoholic content may not exceed the labeled alcoholic content. A malt beverage may not be labeled with an alcoholic

content of 0.0 percent alcohol by volume unless it is also labeled as ``alcohol free'' and contains no alcohol. (d) Low alcohol and reduced alcohol. The terms ``low alcohol'' or ``reduced alcohol'' may be used only on malt beverages containing less than 2.5 percent alcohol by volume. (e) Non-alcoholic. The term ``non-alcoholic'' may be used on malt beverages, provided the statement ``contains less than 0.5 percent (or .5%) alcohol by volume'' appears in direct conjunction with it, in readily legible printing and on a completely contrasting background. (f) Alcohol free. The term ``alcohol free'' may be used only on malt beverages containing no alcohol. [T.D. ATF-339, 58 FR 21232, Apr. 19, 1993] Subpart I_Use of the Term ``Organic'' Sec. 7.81 Use of the term ``organic.'' (a) Use of the term ``organic'' is optional and is treated as ``additional information on labels'' under Sec. 7.28(e). (b) Any use of the term ``organic'' on a malt beverage label or in advertising of malt beverages must comply with the United States Department of Agriculture's (USDA) National Organic Program rules (7 CFR part 205) as interpreted by the USDA. (c) This section applies to labels and advertising that use the term``organic'' on and after October 21, 2002. [T.D. ATF-483, 67 FR 62858, Oct. 8, 2002]

[Code of Federal Regulations] [Title 27, Volume 1] [Revised as of April 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 27CFR27] [Page 717-734] TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE TREASURY PART 27_IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER Subpart A_Scope of Regulations Sec. 27.1 Imported distilled spirits, wines, and beer. 27.2 Forms prescribed. 27.3 Delegations of the Director. Subpart B_Definitions 27.11 Meaning of terms. Subpart C_Special (Occupational) Taxes 27.30 Special (occupational) tax. 27.31 Warehouse receipts covering distilled spirits. Subpart D_Tax on Imported Distilled Spirits, Wines, and Beer Distilled Spirits 27.40 Distilled spirits. 27.41 Computation of effective tax rate. Wines 27.42 Wines. 27.42a Still wines containing carbon dioxide. Liqueurs, Cordials, and Other Compounds and Preparations 27.43 Liqueurs, cordials, and similar compounds. 27.44 Other compounds and preparations. Beer 27.45 Rate of tax. 27.46 Computation of tax. Collection of Internal Revenue Taxes 27.48 Imported distilled spirits, wines, and beer. 27.48a Payment of tax by electronic fund transfer.

Exemption of Certain Samples From Internal Revenue Taxes 27.49 Commercial samples of alcoholic beverages. Subpart E_General Requirements Permit for Importation of Distilled Spirits, Wines and Beer 27.55 Federal Alcohol Administration Act permit. Packaging and Marking of Distilled Spirits 27.56 Distilled spirits containers of a capacity of not more than 1 gallon. 27.57 Containers in excess of 1 gallon. Labeling of Distilled Spirits 27.58 Containers of 1 gallon (3.785 liters) or less. Marking and Labeling of Wines and Beer 27.59 Wines. 27.60 Beer. Closures for Containers of Distilled Spirits 27.61 Containers of distilled spirits to bear closures. 27.62 Affixing closures. Exemptions 27.74 Exemption from requirements pertaining to marks, bottles, and labels. 27.75 Samples of distilled spirits, wine, and beer for quality control purposes. Wine and Flavors Content of Distilled Spirits 27.76 Approval and certification of wine and flavors content. 27.77 Standard effective tax rate. Subparts F-G [Reserved] Subpart H_Importation of Distilled Spirits in Bulk 27.120 Persons authorized to receive distilled spirits imported in bulk. 27.121 Containers. Subpart I_Importer's Records and Reports 27.130-27.132 [Reserved] Record and Report of Imported Liquors

27.133 General requirements. [[Page 718]] 27.134 Proprietors of qualified premises. Filing and Retention of Records and Reports 27.136 Filing. 27.137 Retention. Other Records 27.138 Transfer record. 27.139 Package gauge record. Subparts J-K [Reserved] Subpart L_Transfer of Distilled Spirits From Customs Custody to Bonded Premises of Distilled Spirits Plant 27.171 General provisions. 27.172 Preparation of transfer record and package gauge record. 27.173 Inspection and release. 27.174 Tank cars and tank trucks to be sealed. 27.175 Receipt by consignee. Subpart M_Withdrawal of Imported Distilled Spirits From Customs Custody Free of Tax For Use of the United States 27.181 General. 27.182 Application and permit, Form 5150.33. 27.183 Use of permit, Form 5150.33. 27.184 Entry documents. 27.185 Customs release. Subpart N_Requirements for Liquor Bottles 27.201 Scope of subpart. 27.202 Standards of fill. 27.204 Distinctive liquor bottles. 27.205 [Reserved] 27.206 Bottles not constituting approved containers. 27.207 Bottles to be used for display purposes. 27.208 Liquor bottles denied entry. 27.209 Used liquor bottles. Subpart O_Miscellaneous Provisions 27.221 Alternate methods or procedures. Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 5051, 5054, 5061, 5111, 5112, 5114, 5121, 5122, 5124, 5201, 5205, 5207, 5232, 5273, 5301, 5313, 5555, 6302, 7805. Source: 20 FR 3561, May 21, 1955, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by

T.D. ATF-479, 67 FR 30799, May 8, 2002. Cross Reference: For regulations with respect to distilled spirits, wines, and beer arriving in the United States from Puerto Rico and the Virgin Islands, see part 26 of this subchapter. Editorial Note: Nomenclature changes to part 27 appear by T.D. ATF- 474, 67 FR 11231, Mar. 13, 2002, and by T.D. ATF-479, 67 FR 30799, May 8, 2002. Subpart A_Scope of Regulations Sec. 27.1 Imported distilled spirits, wines, and beer. This part, ``Importation of Distilled Spirits, Wines, and Beer'', contains procedural and substantive requirements relative to the importation of distilled spirits, wines, and beer into the United States from foreign countries including special (occupational) and commodity taxes, permits, marking, branding, closing and labeling of containers and packages, and records and reports. Note: Distilled spirits, wines, and beer arriving in the United States from Puerto Rico and the Virgin Islands are governed by the provisions of part 26 of this chapter. [T.D. ATF-206, 50 FR 23955, June 7, 1985, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001] Sec. 27.2 Forms prescribed. (a) The appropriate ATF officer is authorized to prescribe all forms required by this part, including reports, returns, and records. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form. (b) Forms may be requested from the ATF Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-5950, or by accessing the ATF web site (http://www.atf.treas.gov/). (5 U.S.C. 552(a) (80 Stat. 383, as amended)) [T.D. ATF-92, 46 FR 46921, Sept. 23, 1981, as amended by T.D. ATF-249, 52 FR 5963, Feb. 27, 1987; T.D. ATF-372, 61 FR 20725, May 8, 1996; T.D. ATF-474, 67 FR 11231, Mar. 13, 2002] Sec. 27.3 Delegations of the Director. All of the regulatory authorities of the Director contained in part 27 of the regulations are delegated to appropriate ATF officers. These ATF officers are specified in ATF Order 1130.12, Delegation of the Director's Authorities in

[[Page 719]] 27 CFR part 27, Importation of Distilled Spirits, Wines, and Beer. ATF delegation orders, such as ATF Order 1130.12, are available to any interested person by mailing a request to the ATF Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-5950, or by accessing the ATF web site (http://www.atf.treas.gov/). [T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Subpart B_Definitions Sec. 27.11 Meaning of terms. When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words importing the masculine gender shall include the feminine. The terms ``includes'' and ``including'' do not exclude things not enumerated which are in the same general class. Appropriate ATF officer. An officer or employee of the Bureau of Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions relating to the administration or enforcement of this part by ATF Order 1130.12, Delegation of the Director's Authorities in 27 CFR Part 27, Importation of Distilled Spirits, Wines, and Beer. Beer. Beer, ale porter, stout, and other similar fermented beverages (including sake or similar products) of any name or description containing one-half of 1 percent or more of alcohol by volume, brewed or produced from malt, wholly or in part, or from any substitute therefor. Bonded premises--distilled spirits plant. The premises of a distilled spirits plant, or part thereof, on which distilled spirits operations defined in 26 U.S.C. 5002 are authorized to be conducted. Bulk container. Any container having a capacity of more than 1 gallon. Bulk distilled spirits. The term ``bulk distilled spirits'' means distilled spirits in a container having a capacity in excess of 1 gallon. CFR. The Code of Federal Regulations. Class 8 Customs bonded warehouse. A class 8 customs bonded warehouse established under the provisions of Customs Regulations (19 CFR, chapter I). Customs officer. Any officer of the Customs Service or any commissioned, warrant, or petty officer of the Coast Guard, or any agent or other person authorized by law or designated by the Secretary of the Treasury to perform any duties of an officer of the Customs Service. Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the

Department of the Treasury, Washington, DC. Distilled spirits or spirits. That substance known as ethyl alcohol, ethanol, or spirits of wine, and all mixtures or dilutions thereof, from whatever source or by whatever process produced, including alcohol, whisky, brandy, gin, rum, and vodka, but not including wine as defined in this subpart. Distilled spirits plant. An establishment qualified under the provisions of part 19 of this chapter for the production, storage, or processing of spirits, or for authorized combinations of such operations. District director of customs. The district director of customs at a headquarters port of the district (except the district of New York, N.Y.); the area directors of customs in the district of New York, N.Y.; and the port director at a port not designated as a headquarters port. Effective tax rate. The net tax rate after reduction for any credit allowable under 26 U.S.C. 5010 for wine and flavor content at which the tax imposed on distilled spirits by 26 U.S.C. 5001 is paid or determined. Eligible flavor. A flavor which: (1) Is of a type that is eligible for drawback of tax under 26 U.S.C. 5134, (2) Was not manufactured on the premises of a distilled spirits plant, and (3) Was not subjected to distillation on distilled spirits plant premises such that the flavor does not remain in the finished product. Eligible wine. Wine on which tax would be imposed by paragraph (1), (2), or (3) of 26 U.S.C. 5041(b) but for its removal to distilled spirits plant premises and which has not been subject to [[Page 720]] distillation at a distilled spirits plant after receipt in bond. Gallon or wine gallon. The liquid measure equivalent to the volume of 231 cubic inches. Importer. Any person who imports distilled spirits, wines, or beer into the United States. Kind. As applied to spirits, kind shall mean class and type as prescribed in 27 CFR part 5. As applied to wines, kind shall mean the classes and types of wines as prescribed in 27 CFR part 4. Liquor bottle. A bottle made of glass or earthenware, or of other suitable material approved by the Food and Drug Administration, which has been designed or is intended for use as a container for distilled spirits for sale for beverage purposes and which has been determined by the appropriate ATF officer to adequately protect the revenue. Person. An individual, a trust, an estate, a partnership, an association, a company, or a corporation. Proof. The ethyl alcohol content of a liquid at 60 degrees Fahrenheit, stated as twice the percent of ethyl alcohol by volume. Proof gallon. A gallon of liquid at 60 degrees Fahrenheit which contains 50 percent by volume of ethyl alcohol having a specific gravity of 0.7939 at 60 degrees Fahrenheit referred to water at 60 degrees Fahrenheit as unity, or the alcoholic equivalent thereof. United States. ``United States'' includes only the States and the District of Columbia.

U.S.C. The United States Code. Wine. (a) Still wine, including vermouth or other aperitif wine, artificial or imitation wines or compounds sold as still wines, champagne or sparkling wine, and artificially carbonated wine, and (b) flavored or sweetened fortified or unfortified wines, by whatever name sold or offered for sale, containing not over 24 percent alcohol by volume. (68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended (27 U.S.C. 205); 26 U.S.C. 7805 (68A Stat. 917, as amended), and in 27 U.S.C. 205 (49 Stat. 981, as amended)) [T.D. ATF-48, 43 FR 13552, Mar. 31, 1978, as amended by T.D. ATF-50, 43 FR 37180, Aug. 22, 1978; 44 FR 55853, Sept. 28, 1979; T.D. ATF-62, 44 FR 71718, Dec. 11, 1979; T.D. ATF-114, 47 FR 43950, Oct. 5, 1982; T.D. ATF- 198, 50 FR 8555, Mar. 1, 1985; T.D. ATF-206, 50 FR 23955, June 7, 1985; T.D. ATF-251, 52 FR 19339, May 22, 1987; T.D. ATF-297, 55 FR 18069, Apr. 30, 1990; T.D. ATF-398, 63 FR 44784, Aug. 21, 1998; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Subpart C_Special (Occupational) Taxes Sec. 27.30 Special (occupational) tax. Importers engaged in the business of selling, or offering for sale, distilled spirits, wines or beer are subject to the provisions of part 194 of this chapter relating to special (occupational) taxes. Part 194 requires that the special tax return, Form 5630.5, with payment of the tax, shall be filed with ATF in accordance with the instruction on the form, before commencing business. Subsequently, Form 5630.5 with tax shall be filed each year on or before July 1, as long as the proprietor continues in business. (Sec. 201, Pub. L. 85-859, 72 Stat. 1340 as amended, 1343 as amended, 1344 as amended (26 U.S.C. 5111, 5112, 5121, 5122)) [T.D. ATF-70, 45 FR 33981, May, 21, 1980, as amended by T.D. ATF-251, 52 FR 19339, May 22, 1987] Sec. 27.31 Warehouse receipts covering distilled spirits. Since the sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits, every person engaged in business as an importer of distilled spirits, who sells, or offers for sale, warehouse receipts for distilled spirits stored in customs bonded warehouses, or elsewhere, incurs liability to special tax as a dealer in liquors at the [[Page 721]] place where the warehouse receipts are sold or offered for sale, and must file return and pay occupational tax as provided in Sec. 27.30.

(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122) Subpart D_Tax On Imported Distilled Spirits, Wines, and Beer Distilled Spirits Sec. 27.40 Distilled spirits. (a) A tax is imposed on all distilled spirits in customs bonded warehouses or imported into the United States at the rate prescribed by 26 U.S.C. 5001 on each proof gallon and a proportionate tax at a like rate on all fractional parts of each proof gallon. All products of distillation, by whatever name known, which contain distilled spirits, are considered to be distilled spirits and are taxed as such. The tax will be determined at the time of importation, or, if entered into bond, at the time of withdrawal therefrom. (b) A credit against the tax imposed on distilled spirits by 26 U.S.C. 5001 is allowable under 26 U.S.C. 5010 on each proof gallon of alcohol derived from eligible wine or from eligible flavors which do not exceed 2\1/2\ percent of the finished product on a proof gallon basis. The credit is allowable at the time the tax is payable as if it constituted a reduction in the rate of tax. (c) Where credit against the tax is desired, the person liable for the tax shall establish an effective tax rate in accordance with Sec. 27.41. The effective tax rate established will be applied to each entry. (Approved by the Office of Management and Budget under control number 1512-0352.) (Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended (26 U.S.C. 5001); Sec. 201, Pub. L. 85-859, 72 Stat. 1356, as amended (26 U.S.C. 5201); Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010)) [T.D. ATF-297, 55 FR 18069, Apr. 30, 1990] Sec. 27.41 Computation of effective tax rate. (a) The proprietor shall compute the effective tax rate for distilled spirits containing eligible wine or eligible flavors as the ratio of the numerator and denominator as follows: (1) The numerator will be the sum of: (i) The proof gallons of all distilled spirits used in the product (exclusive of distilled spirits derived from eligible flavors), multiplied by the tax rate prescribed by 26 U.S.C. 5001; (ii) The wine gallons of each eligible wine used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5041(b)(1), (2), or (3), as applicable; and (iii) The proof gallons of all distilled spirits derived from eligible flavors used in the product, multiplied by the tax rate prescribed by 26 U.S.C. 5001, but only to the extent that such distilled spirits exceed 2\1/2\% of the denominator prescribed in paragraph (a)(2)

of this section. (2) The denominator will be the sum of: (i) The proof gallons of all distilled spirits used in the product, including distilled spirits derived from eligible flavors; and (ii) The wine gallons of each eligible wine used in the product, multiplied by twice the percentage of alcohol by volume of each, divided by 100. (b) In determining the effective tax rate, quantities of distilled spirits, eligible wine, and eligible flavors will be expressed to the nearest tenth of a proof gallon. The effective tax rate may be rounded to as many decimal places as the proprietor deems appropriate, provided that, such rate is expressed no less exactly than the rate rounded to the nearest whole cent, and the effective tax rates for all products will be consistently expressed to the same number of decimal places. In such case, if the number is less than five it will be dropped; if it is five or over, a unit will be added. (c) The following is an example of the use of the formula. --------------------------------------------------------------------------- \1\ Proof gallons by which distilled spirits derived from eligible flavors exceed 2\1/2\% of the total proof gallons in the batch (100.9 - (2\1/2\%) x 3.371.8 = 16.6). [[Page 722]] BATCH RECORD Distilled spirits.............................. 2249.1 proof gallons. Eligible wine (14% alcohol by volume).......... 2265.0 wine gallons. Eligible wine (19% alcohol by volume).......... 1020.0 wine gallons. Eligible flavors............................... 100.9 proof gallons. [GRAPHIC] [TIFF OMITTED] TC05OC91.033 (Approved by the Office of Management and Budget under control number 1512-0352) (Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010)) [T.D. ATF-297, 55 FR 18069, Apr. 30, 1990, as amended by T.D. ATF-307, 55 FR 52742, Dec. 21, 1990. Redesignated by T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Wines Sec. 27.42 Wines.

All wines (including imitation, substandard, or artificial wine, and compounds sold as wine) having not in excess of 24 percent of alcohol by volume, in customs bonded warehouse or imported into the United States are subject to an internal revenue tax at the rates prescribed by law; such tax to be determined at the time of removal from customs custody for consumption or sale. The tax is imposed on each wine gallon and at a like rate on fractional parts of a wine gallon. Fractions of less than one-tenth gallon shall be converted to the nearest one-tenth gallon, and five-hundredths gallon shall be converted to the next full one-tenth gallon. All wines containing more than 24 percent of alcohol by volume shall be classed as distilled spirits and shall be taxed accordingly. (72 Stat. 1331, as amended; 26 U.S.C. 5041) [T.D. 6644, 28 FR 3165, Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975] Sec. 27.42a Still wines containing carbon dioxide. Still wines may contain not more than 0.392 gram of carbon dioxide per 100 milliliters of wine; except that a tolerance to this maximum limitation, not to exceed 0.009 gram of carbon dioxide per 100 milliliters of wine, will be allowed where the amount of carbon dioxide in excess of 0.392 gram per 100 milliliters of wine was due to mechanical variations which could not be completely controlled under good commercial practices. Such tolerance will not be allowed where it is found that the limitation of 0.392 gram of carbon dioxide per 100 milliliters of wine is continuously or intentionally exceeded. [T.D. ATF-13, 40 FR 4419, Jan. 30, 1975. Redesignated at 40 FR 16835, Apr. 15, 1975] Liqueurs, Cordials, and Other Compounds and Preparations Sec. 27.43 Liqueurs, cordials, and similar compounds. A tax is imposed by 26 U.S.C. 5001 on all liqueurs, cordials, and similar compounds, containing distilled spirits, in a customs bonded warehouse or imported into the United States at the rate prescribed in such section on each proof gallon, and a proportionate tax at a like rate on all fractional parts of such proof gallon. The tax shall be determined at the time of importation, or, if entered into bond, at the time of withdrawal therefrom. Fortified or unfortified wines, containing not over 24 percent alcohol by volume, to which sweetening or flavoring materials, but no distilled spirits, have been added are not classified as liqueurs, cordials, or [[Page 723]] similar compounds, but are considered to be flavored wines only and are subject to internal revenue tax at the rates applicable to wines.

(Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1331, as amended (26 U.S.C. 5001, 5041)) [T.D. ATF-62, 44 FR 71718, Dec. 11, 1979] Sec. 27.44 Other compounds and preparations. Compounds and preparations, other than those specified in Sec. 27.43 containing distilled spirits, which are fit for beverage purposes, in customs bonded warehouse or imported into the United States are subject to internal revenue tax at the rates applicable to distilled spirits. Compounds and preparations, containing fortified or unfortified wine, but no distilled spirits, which are fit for beverage purposes and which are sold as wine, are subject to internal revenue tax at the rates applicable to wines. (68A Stat. 595, as amended, 609, as amended; 26 U.S.C. 5001, 5041) Beer Sec. 27.45 Rate of tax. A tax is imposed by 26 U.S.C. 5051, on all beer imported into the United States, at the rate prescribed in such section, for every barrel containing not more than 31 gallons, and at a like rate for any other quantity or for fractional parts of a barrel. The tax on beer shall be determined at the time of importation, or, if entered into customs custody, at the time of removal from such custody. (Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended, 1334, as amended (26 U.S.C. 5051, 5054)) [T.D. 6644, 28 FR 3165, Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 44 FR 55853, Sept. 28, 1979] Sec. 27.46 Computation of tax. The tax on imported beer shall be computed on the basis of the actual quantity in a container, at the rate prescribed by law. (72 Stat. 1333, as amended; 26 U.S.C. 5051) [T.D. 6644, 28 FR 3165. Apr. 2, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975] Collection of Internal Revenue Taxes Sec. 27.48 Imported distilled spirits, wines, and beer. Internal revenue taxes payable on imported distilled spirits, including perfumes containing distilled spirits, and on wines and beer, are collected, accounted for, and deposited as internal revenue collections by directors of customs in accordance with customs requirements: Provided, That the taxes on distilled spirits withdrawn

from customs custody without payment of tax under the provisions of subpart L and thereafter withdrawn from bonded premises of a distilled spirits plant subject to tax shall be collected and paid under the provisions of part 19 of this chapter. (72 Stat. 1314, 1366; 26 U.S.C. 5001, 5232) [20 FR 3561, May 21, 1955, as amended by T.D. 6477, 25 FR 6204, July 1, 1960; T.D. 7006, 34 FR 2250, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975] Editorial Note: For Federal Register citations affecting Sec. 27.48, see the List of CFR Sections Affected in the Finding Aids section of this volume. Sec. 27.48a Payment of tax by electronic fund transfer. (a) Each importer who was liable, during a calendar year, for a gross amount equal to or exceeding five million dollars in distilled spirits taxes combining tax liabilities incurred under this part and parts 19 and 26 of this chapter, a gross amount equal to or exceeding five million dollars in wine taxes combining tax liabilities incurred under this part and parts 24 and 26 of this chapter, or a gross amount equal to or exceeding five million dollars in beer taxes combining tax liabilities incurred under this part and parts 25 and 26 of this chapter, shall use a commercial bank in making payment by electronic fund transfer (EFT), as [[Page 724]] defined in paragraph (c) of this section, of such taxes during the succeeding calendar year. Payment of such taxes by cash, check, or money order is not authorized for an importer who is required, by this section, to make remittances by EFT. For purposes of this section, the dollar amount of tax liability is to be summarized separately for distilled spirits taxes, wine taxes, or beer taxes, and is defined as the gross tax liability on all taxable withdrawals from premises in the United States and importations (including products of the same tax class brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawbacks, credits, or refunds, for all premises from which such activities are conducted by the taxpayer. (b) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words ``at least 80 percent'' shall be replaced by the words ``more than 50 percent'' in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. Also, the rules for a ``controlled group of corporations'' apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50% control over a group consisting of corporations and one, or more, partnerships and/or

sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT. (c) Electronic fund transfer or EFT means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer of magnetic tape, so as to order, instruct, or authorize a financial institution to either debit or credit an account, in accordance with procedures established by the U.S. Customs Service. (d) An importer who is required by this section to make remittances by EFT shall make the EFT remittance in accordance with the requirements of the U.S. Customs Service. (Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061)) [T.D. ATF-245, 52 FR 533, Jan. 7, 1987, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001] Exemption of Certain Samples From Internal Revenue Taxes Sec. 27.49 Commercial samples of alcoholic beverages. Samples of distilled spirits, beer, and wine, to be used in the United States by persons importing alcoholic beverages in commercial quantities, are, subject to the limitations in this section, exempt from the payment of any internal revenue tax imposed on, or by reason of, importation. This exemption applies only to samples to be used for soliciting orders for products of foreign countries. In no case shall this exemption apply to more than one sample of each alcoholic beverage product admitted during any calendar quarter for the use of each such person. No sample of beer shall contain more than 8 ounces, no sample of wine shall contain more than 4 ounces, and no sample of distilled spirits shall contain more than 2 ounces. (76 Stat. 72; 19 U.S.C. 1202) [T.D. 6300, 23 FR 5168, July 8, 1958; T.D. ATF-2, 37 FR 22740, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975] Subpart E_General Requirements Permit for Importation of Distilled Spirits, Wines and Beer Sec. 27.55 Federal Alcohol Administration Act permit. Under the Federal Alcohol Administration Act and the regulations issued pursuant thereto (27 CFR part 1), any person except an agency of a State or political subdivision thereof, or any officer or employee of any such agency, intending to engage in the business of importing distilled spirits, wines or

[[Page 725]] beer for nonindustrial use is required to procure a permit therefor. (Sec. 3, 49 Stat. 978, as amended; 27 U.S.C. 203) [20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Packaging and Marking of Distilled Spirits Sec. 27.56 Distilled spirits containers of a capacity of not more than 1 gallon. Bottled distilled spirits imported into the United States for sale shall be bottled in liquor bottles which conform to the requirements of subpart N of this part and part 5 of this chapter. Empty bottles imported for the packaging of distilled spirits shall conform to the requirements of subpart N of this part. (For Customs requirements as to marking, see 19 CFR parts 11 and 12.) [T.D. ATF-206, 50 FR 23955, June 7, 1985] Sec. 27.57 Containers in excess of 1 gallon. Imported containers of distilled spirits in excess of 1 gallon are required to be marked in accordance with customs regulations (19 CFR parts 11 and 12). [20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-206, 50 FR 23955, June 7, 1985] Labeling of Distilled Spirits Sec. 27.58 Containers of 1 gallon (3.785 liters) or less. Labels on imported containers of distilled spirits, and on containers of imported distilled spirits bottled in customs custody, for sale at retail, are required to be covered by a certificate of label approval ATF Form 5100.31 issued pursuant to part 5 of this chapter. Containers of imported distilled spirits bottled after taxpayment and withdrawal from customs custody are required to be covered by a certificate of label approval or a certificate of exemption from label approval ATF Form 5100.31 issued pursuant to part 5 of this chapter. When distilled spirits are to be labeled under a certificate of exemption from label approval, the labels affixed to containers are required to conform to the provisions of part 19 of this chapter. [T.D. 6954, 33 FR 6818, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975] Editorial Note: For Federal Register citations affecting Sec. 27.58, see the List of CFR Sections Affected in the Finding Aids section of this volume.

Marking and Labeling of Wines and Beer Sec. 27.59 Wines. All imported wines containing not less than 7 percent and not more than 24 percent of alcohol by volume are required to be packaged, marked, branded, and labeled in conformity with the Federal Alcohol Administration Act and regulations promulgated thereunder (27 CFR part 4), prior to their removal from customs custody. Containers of imported wine bottled or packaged after taxpayment and withdrawal from customs custody are required to be covered by a certificate of label approval or a certificate of exemption from label approval on ATF Form 5100.31 issued pursuant to the Federal Alcohol Administration Act and regulations promulgated thereunder (27 CFR part 4). Imported containers of wine are required also to be marked, branded and labeled in accordance with customs regulations (19 CFR parts 11 and 12). [20 FR 3561, May 21, 1955. Redesignated at 40 FR 16835, Apr. 15, 1975 and amended by T.D. ATF-242, 51 FR 39526, Oct. 29, 1986; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Sec. 27.60 Beer. All imported beer is required to be released from customs custody in conformity with the Federal Alcohol Administration Act and regulations thereunder. The attention of all concerned is directed, in this connection, to the provisions of Regulations 7 (27 CFR part 7) relating to the labeling and advertising of malt beverages, issued under the Federal Alcohol Administration Act. Imported containers of beer are required to be marked and labeled in accordance with customs regulations (19 CFR parts 11 and 12). [[Page 726]] Closures for Containers of Distilled Spirits Sec. 27.61 Containers of distilled spirits to bear closures. No person shall transport, buy, possess, or sell, or transfer any imported distilled spirits in containers of 1 gallon (3.785 liters) or less, unless the immediate container thereof has a closure or other device affixed in accordance with the provisions of this part. (Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301)) [T.D. ATF-206, 50 FR 23955, June 7, 1985] Sec. 27.62 Affixing closures. Closures or other devices on containers of imported distilled spirits having a capacity of 1 gallon (3.785 liters) or less shall be affixed so as to leave a portion of the closure or other device remaining on the container when it is opened. In addition, the closures

or other devices shall be constructed in such a manner as to require that they be broken to gain access to the contents of the containers. (Sec. 454, Pub. L. 98-369, 98 Stat. 494 (26 U.S.C. 5301)) [T.D. ATF-206, 50 FR 23955, June 7, 1985] Exemptions Sec. 27.74 Exemption from requirements pertaining to marks, bottles, and labels. The provisions of this part relating to the labeling of containers as prescribed by 27 CFR part 5 are not applicable to imported distilled spirits (a) not for sale or for any other commercial purpose whatever; (b) on which no internal revenue tax is required to be paid or determined on or before withdrawal from customs custody; (c) for use as ship stores; or (d) for personal use. Samples of distilled spirits, other than those provided for in Sec. Sec. 27.49 and 27.75, imported for any purpose are not exempt from the requirements pertaining to marks, bottles, and labels. Samples of wine and beer brought into the United States pursuant to Sec. 27.49 are exempt from the requirements pertaining to marks, bottles, and labels. Samples of wine and beer brought into the United States pursuant to Sec. 27.49 are exempt from the labeling requirements of 27 CFR parts 4 and 7, respectively. Exemptions from the requirements that imported distilled spirits, wines, and beer be marked to indicate the country of origin are set forth in customs regulations (19 CFR part 11). (Sec. 201, Pub. L. 85-859, 72 Stat. 1358, as amended, 1374, as amended (26 U.S.C. 5205, 5301)) [T.D. ATF-206, 50 FR 23956, June 7, 1985] Sec. 27.75 Samples of distilled spirits, wine, and beer for quality control purposes. Samples of distilled spirits, wine, and beer in containers of a capacity of not more than 1.75 liters, imported solely for quality control purposes (laboratory testing and analysis) and not for sale or for use in the manufacture or production of any article for sale, shall be exempt from any requirements relating to marks, bottles, labels, and standards of fill. Samples imported for quality control purposes shall not be exempt from the payment of any internal revenue tax imposed on, or by reason of, importation. [T.D. ATF-198, 50 FR 8557, Mar. 1, 1985, as amended by T.D. ATF-206, 50 FR 23955, June 7, 1985] Wine and Flavors Content of Distilled Spirits Sec. 27.76 Approval and certification of wine and flavors content. (a) Any person who, after December 1, 1990, imports into the United States distilled spirits on which the tax is to be paid or determined at

an effective tax rate based in whole, or in part, on the alcohol content derived from eligible wine or eligible flavors which have not been previously approved on ATF Form 5530.5 (1678) shall, before the first tax determination at that rate, request and receive a statement of eligibility for each wine or flavor to be used in the computation of the effective tax rate. (b) To receive a statement of eligibility, the importer shall cause to be submitted to the ATF National Laboratory, 1401 Research Boulevard, Attn: NBA, Rockville, MD 20850, the following: [[Page 727]] (1) An 8-ounce sample of each distilled spirits, wine and flavor contained in the product; and (2) A statement of composition listing-- (i) For wine, the kind (class and type) and percentage of alcohol by volume; and (ii) For flavors, the name and percentage of alcohol by volume, and the name and quantity of each ingredient used in the manufacture of the flavor. (c) Each time distilled spirits containing eligible wine or eligible flavors are imported into the United States, the importer shall prepare a certificate of effective tax rate computation showing the following: (1) Name, address, and permit number of the importer; (2) Kind (class and type) of product; (3) Elements necessary to compute the effective tax rate in accordance with Sec. 27.41 as follows-- (i) Proof gallons of distilled spirits (exclusive of distilled spirits derived from eligible flavors); (ii) Wine gallons of each eligible wine and the percentage of alcohol by volume of each; and (iii) Proof gallons of distilled spirits derived from eligible flavors; (4) After December 1, 1990, the date of the statement of eligibility of each eligible wine and of each eligible flavor; (5) Effective tax rate applied to the product; and (6) Signature of the importer or other duly authorized person under the following declaration: I declare under the penalties of perjury that this certificate of effective tax rate computation has been examined by me and, to the best of my knowledge and belief, is true, correct, and complete. (d) The importer shall file the certificate of effective tax rate computation with the district director of customs at the port of entry, at the time of entry summary, or, for distilled spirits to be withdrawn from customs custody under the provisions of subpart L of this part, furnish a copy to the proprietor of the distilled spirits plant to which the distilled spirits are transferred.

(Approved by the Office of Management and Budget under control number 1512-0352) (Sec. 6, Pub. L. 96-598, 94 Stat. 3488, as amended (26 U.S.C. 5010)) [T.D. ATF-297, 55 FR 18070, Apr. 30, 1990] Sec. 27.77 Standard effective tax rate. (a) In lieu of preparing a certificate of effective tax rate computation each time distilled spirits containing eligible wine or eligible flavors are imported as prescribed in Sec. 27.76(c), an importer may have a standard effective tax rate established based on the least quantity and the lowest alcohol content of eligible wine or eligible flavors used in the manufacture of the product. (b) To have a standard effective tax rate established, the importer shall cause to be submitted to the ATF National Laboratory, 1401 Research Boulevard, Rockville, MD 20850, the following: (1) The samples prescribed in Sec. 27.76(b)(1) and an 8-ounce sample of the finished product; (2) The statement of composition prescribed in Sec. 27.76(b)(2); (3) A statement of composition for the finished product listing the-- (i) Name of the product; (ii) Quantity, alcohol content (percentage of alcohol by volume), and the kind (class and type) of each eligible wine or the name of each eligible flavor used in the manufacture of the product; and (iii) Standard effective tax rate for the product computed in accordance with Sec. 27.41. (c) Where a standard effective tax rate has been previously approved for a product, an importer, in lieu of having a standard effective tax rate established, may use that rate. An importer desiring to use a previously approved standard effective tax rate shall obtain a copy of the approval from the person to whom it was issued and, over the signature of the importer or other duly authorized person, place the following declaration: [[Page 728]] I declare under the penalties of perjury that this approval has been examined by me and, to best of my knowledge and belief, the standard effective tax rate established for this product is applicable to all like products contained in this shipment. (d) A standard effective tax rate may not be employed until approved by the appropriate ATF officer. The importer shall file or furnish a copy of the standard effective tax rate approval in the manner prescribed in Sec. 27.76(d). The use of a standard effective tax rate shall not relieve an importer from the payment of any tax found to be due. The appropriate ATF officer may at any time require an importer to immediately discontinue the use of a standard effective tax rate.

(Approved by the Office of Management and Budget under control Number 1512-0352) [T.D. ATF-297, 55 FR 18070, Apr. 30, 1990; 55 FR 23635, June 11, 1990; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Subparts F-G [Reserved] Subpart H_Importation of Distilled Spirits In Bulk Sec. 27.120 Persons authorized to receive distilled spirits imported in bulk. Distilled spirits imported in bulk (i.e., in containers having a capacity in excess of 1 gallon (3.785 liters)) may be entered into a class 8 customs bonded warehouse for bottling, or may be withdrawn from customs custody only if entered for exportation or if withdrawn by a person to whom it is lawful to sell or otherwise dispose of distilled spirits in bulk pursuant to the Federal Alcohol Administration Act (49 Stat. 985, as amended; 27 U.S.C., 206) and Regulation 3 (27 CFR part 3). The importation and disposition of distilled spirits imported in bulk shall be reported as prescribed by Sec. Sec. 27.133 to 27.134. (Sec. 201, Pub. L. 85-859, 72 Stat. 1342, 1361, 1374, 1395 (26 U.S.C. 5114, 5207, 5301, 5555)) [T.D. ATF-34, 41 FR 46864, Oct. 26, 1976] Sec. 27.121 Containers. Imported distilled spirits may be bottled in either domestic or imported containers conforming to the provisions of subpart N of this part. (72 Stat. 1374; 26 U.S.C. 5301) [T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975] Subpart I_Importer's Records and Reports Sec. Sec. 27.130-27.132 [Reserved] Record and Report of Imported Liquors Sec. 27.133 General requirements. Except as provided in Sec. 27.134, every importer who imports distilled spirits, wines, or beer shall keep such records and render such reports of the physical receipt and disposition of such liquors as are required to be kept by a wholesale or retail dealer, as applicable, under the provision of part 194 of this chapter. Any importer who does not take physical possession of the liquors at the time of, but is responsible for, their release from customs custody shall keep commercial records reflecting such release; such records shall identify the kind and quantity of the liquors released, the name and address of

the person receiving the liquors from customs custody, and the date of release, and shall be filed chronologically by release dates. Records and reports will not be required under this part with respect of liquors while in customs custody. (Approved by the Office of Management and Budget under control number 1512-0352) (72 Stat. 1342, 1345, 1395; 26 U.S.C. 5114, 5124, 5555) [T.D. ATF-2, 37 FR 22743, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984] Sec. 27.134 Proprietors of qualified premises. Importing operations conducted by proprietors of premises qualified under the provisions of this chapter shall be recorded and reported in accordance [[Page 729]] with the regulations governing the operations of each such premises. (72 Stat. 1342, 1361, 1395; 26 U.S.C. 5114, 5207, 5555) [T.D. 6388, 24 FR 4824, June 12, 1959, as amended by T.D. 6477, 25 FR 6207, July 1, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975] Filing and Retention of Records and Reports Sec. 27.136 Filing. (a) All records and reports required by this part will be maintained separately, by transaction or reporting date, at the importer's place of business. The appropriate ATF officer may, pursuant to an application, authorize files, or an individual file, to be maintained at another business location under the control of the importer, if the alternative location does not cause undue inconvenience to appropriate ATF officers desiring to examine the files or delay in the timely submission of documents, and are not inconsistent with Customs recordkeeping requirements (See 19 CFR part 163). (b) If an importer conducts wholesale operations, one legible copy of each required record of receipt and disposition shall be filed not later than one business day following the date of transaction. (c) If an importer conducts only retail operations, they may maintain either loose-leaf or book records of the daily receipt of liquors which contain all the required information. (d) Supporting documents, such as consignors' invoices, delivery receipts, bills of lading, etc., or exact copies of the same, may be filed in accordance with the importer's regular accounting and recordkeeping practices. (Approved by the Office of Management and Budget under control number 1512-0352)

(Sec. 201, Pub. L. 85-859, 72 Stat. 1342, as amended, 1395, as amended (26 U.S.C. 5114, 5555)) [T.D. ATF-116, 47 FR 51573, Nov. 16, 1982, as amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Sec. 27.137 Retention. All records required by this part, documents or copies of documents supporting these records, and file copies of reports required by this part, must be retained for not less than three years, and during this period must be available, during business hours, for inspection and copying by appropriate ATF or Customs officers. Furthermore, the appropriate ATF officer may require these records to be kept for an additional period of not more than three years in any case where the appropriate ATF officer determines retention necessary or advisable. Any records, or copies thereof, containing any of the information required by this part to be prepared, wherever kept, must also be made available for inspection and copying. [T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Other Records Sec. 27.138 Transfer record. The transfer record for imported spirits prescribed in Sec. 27.172 shall show the: (a) Date prepared; (b) Serial number of the transfer record, beginning with ``1'' each January 1; (c) Name and distilled spirits plant number of the proprietor who received the spirits from customs custody; (d) Country of origin; (e) Name of foreign producer; (f) Kind of spirits; (g) Age, in years, months and days of the spirits; (h) Proof of the spirits; (i) Type and number of containers; and (j) Proof gallons of spirits in the shipment. (Approved by the Office of Management and Budget under control number 1512-0250) [T.D. ATF-198, 50 FR 8558, Mar. 1, 1985] Sec. 27.139 Package gauge record. When required in this part, a package gauge record shall be prepared to show: (a) The date prepared; (b) The related transaction record and its serial number; and (c) For each package: (1) Package identification or serial number;

(2) Kind of spirits; (3) Gross weight; (4) Proof; [[Page 730]] (5) Proof gallons; (6) Name of warehouseman who received the spirits from customs custody; and (7) Name of importer. (Approved by the Office of Management and Budget under control number 1512-0250) [T.D. ATF-198, 50 FR 8558, Mar. 1, 1985] Subparts J-K [Reserved] Subpart L_Transfer of Distilled Spirits From Customs Custody to Bonded Premises of Distilled Spirits Plant Sec. 27.171 General provisions. Imported distilled spirits in bulk containers may, under the provisions of this subpart, be withdrawn by the proprietor of a distilled spirits plant from customs custody and transferred in such bulk containers or by pipeline to the bonded premises of his plant, without payment of the internal revenue tax imposed on imported spirits by 26 U.S.C. 5001. Imported spirits so withdrawn and transferred to a distilled spirits plant (a) may be redistilled or denatured only if of 185 degrees or more of proof, and (b) may be withdrawn from internal revenue bond for any purpose authorized by 26 U.S.C. chapter 51, in the same manner as domestic distilled spirits. Imported distilled spirits transferred from customs custody to the bonded premises of a distilled spirits plant under the provisions of this subpart shall be received and stored thereat, and withdrawn or transferred therefrom, subject to the applicable provisions of 27 CFR part 19. However, distilled spirits plant proprietors are not required to file application on ATF Form 5100.16 to receive imported spirits from customs custody. The person operating the bonded premises of the distilled spirits plant to which imported spirits are transferred shall become liable for the tax on distilled spirits withdrawn from customs custody under 26 U.S.C. 5232, upon release of the spirits from customs custody, and the importer shall thereupon be relieved of his liability for such tax. (Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232)) [T.D. ATF-62, 44 FR 71719, Dec. 11, 1979, as amended by T.D. ATF-198, 50 FR 8558, Mar. 1, 1985] Sec. 27.172 Preparation of transfer record and package gauge record. The person importing spirits under this subpart shall prepare a transfer record according to Sec. 27.138. A separate transfer record

shall be prepared for each conveyance. If the spirits are in packages he shall prepare a package gauge record according to Sec. 27.139 and attach it to the transfer record. The transfer record and the package gauge record shall be prepared in triplicate, and, upon release of the spirits from customs custody one copy will be given to the customs officer, one copy will be forwarded to the appropriate ATF officer, and the original will be forwarded to the consignee. (Approved by the Office of Management and Budget under control number 1512-0250) [T.D. ATF-198, 50 FR 8558, Mar. 1, 1985, as amended by T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Sec. 27.173 Inspection and release. The customs officer shall not release distilled spirits under this subpart until he inspects the spirits. If it appears that losses in transit were sustained from any container, the customs officer shall gauge the spirits in such container and enter the elements of gauge on the transfer record if the spirits are in a bulk conveyance or on the package gauge record if the spirits are in packages. The customs officer shall enter on the transfer record the port of entry, carrier identification, warehouse entry number, applicable rate of duty, and serial number of any customs seals affixed to bulk conveyances. When all customs requirements are complied with, he shall release the spirits for transfer to the distilled spirits plant by dating and signing on the transfer with his title the statement: ``To the best of my knowledge the information hereon [[Page 731]] is accurate and the spirits are released.'' The original of the transfer record with any attachments shall be retained by the consignee. (Sec. 3, Pub. L. 90-630, 82 Stat. 1328, as amended (26 U.S.C. 5232)) [T.D. ATF-198, 50 FR 8558, Mar. 1, 1985] Sec. 27.174 Tank cars and tank trucks to be sealed. Where a shipment of distilled spirits from customs custody to the distilled spirits plant is made in a tank car or tank truck, all openings affording access to the spirits shall be sealed by the customs officer with customs seals in such manner as will prevent unauthorized removal of spirits through such openings without detection. (72 Stat. 1314, 1322, 1366; 26 U.S.C. 5001, 5007, 5232) [T.D. 6477, 25 FR 6208, July 1, 1960. Redesignated at 40 FR 16835, Apr. 15, 1975]

Sec. 27.175 Receipt by consignee. Proprietors of distilled spirits plants who receive imported spirits under this subpart shall follow the requirements in 27 CFR part 19 for spirits received by transfer in bond. However, proprietors are not required to file application on ATF Form 5100.16 to receive imported spirits from customs custody. [T.D. ATF-198, 50 FR 8558, Mar. 1, 1985] Subpart M_Withdrawal of Imported Distilled Spirits From Customs Custody Free of Tax for Use of the United States Source: 50 FR 9200, Mar. 6, 1985, unless otherwise noted. Sec. 27.181 General. (a) The United States or any of its Government agencies may, upon filing proper customs entry, withdraw imported distilled spirits free of tax from customs custody, as authorized by 26 U.S.C. 5313 and under the provisions of this subpart. Before any distilled spirits may be withdrawn, a permit to procure the spirits shall be obtained from the appropriate ATF officer. A bond is not required for any Government agency to procure and withdraw spirits free of tax under this subpart. (b) The provisions of subpart N of part 22 of this chapter cover the withdrawal of domestically produced tax-free spirits for use of the United States or any of its Government agencies. (Sec. 201, Pub. L. 85-859, 72 Stat. 1372, as amended, 1375, as amended (26 U.S.C. 5273, 5313)) Sec. 27.182 Application and permit, Form 5150.33. (a) General. All permits previously issued to the United States or any of its Government agencies on Form 1444 shall remain valid and will be regulated by the same provisions of this subpart as it refers to permits on Form 5150.33. (b) Application. (1) A Government agency of the United States must apply for a permit to procure and withdraw spirits free of tax on Form 5150.33. Upon approval by the appropriate ATF officer, Form 5150.33 will be returned to the agency. (2) If a Government agency intends to withdraw spirits free of tax under this part and part 22 of this chapter, Form 5150.33 may be annotated to cover both types of withdrawals. (3) A separate permit is not required for each port of entry. The application, Form 5150.33, may be completed to indicate the applicable ports of entry in which spirits will be withdrawn from customs custody. (4) A Government agency may specify on its application that it desires a single permit authorizing all sub-agencies under its control to procure and withdraw spirits free of tax under this subpart and subpart N of part 22 of this chapter; or, each Government location may individually file an application for a permit, Form 5150.33.

(5) Each application for a permit shall be signed by the head of the agency or sub-agency, or the incumbent of an office which is authorized by the head of the agency or sub-agency, to sign. Evidence of authorization to sign on behalf of the head of an agency or sub-agency shall be furnished with the application. (c) Use of spirits. Spirits withdrawn under this subpart may not be used for non-Government purposes. (d) Cancellation of permit. All permits on Form 5150.33 and previous editions [[Page 732]] on Form 1444 remain in force until surrendered or canceled. Upon surrender or cancellation, the Government agency must obtain and destroy all photocopies of the permit furnished to port directors of Customs, and forward the original to the appropriate ATF officer for cancellation. (Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313)) [50 FR 9200, Mar. 6, 1985, as amended by T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Sec. 27.183 Use of permit, Form 5150.33. Each Government agency shall retain the original of its permit, Form 5150.33, on file. When filing an initial customs entry to withdraw spirits free of tax from a port of entry, the agency shall furnish a photocopy of its permit to the district director of customs for retention. In the case of an agency holding a single permit for use of its sub-agencies, an attachment to the permit shall list all locations authorized to withdraw spirits free of tax from customs custody. Any subsequent requests for customs entry from the same port shall refer to the permit number. (Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313)) Sec. 27.184 Entry documents. Entry documents for importation of tax-free spirits under this subpart shall record the serial numbers or other identifying numbers of the containers and the total quantity in proof gallons of the spirits to be entered. [T.D. ATF-198, 50 FR 8559, Mar. 1, 1985] Sec. 27.185 Customs release. (a) Upon receipt of appropriate customs entry and a photocopy of a permit, Form 5150.33 or previous editions on Form 1444 (5150.33), the district director of customs shall, following an inspection of the

shipment, release spirits free of tax to the Government agency named on the permit, or an attachment thereto. (b) Customs officers shall not release spirits for shipment until the shipment has been inspected for losses in transit. If it appears that a container or containers have sustained losses in transit, the customs officers shall gauge the damaged container and prepare a package gauge record for the entire shipment, according to Sec. 27.139. A copy of the package gauge record will be retained for the customs files and the original forwarded to the consignee agency. (Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5313)) Subpart N_Requirements for Liquor Bottles Authority: Sec. 5301, 72 Stat. 1374; 26 U.S.C. 5301. Source: T.D. 6954, 33 FR 6819, May 4, 1968, unless otherwise noted. Redesignated at 40 FR 16835, Apr. 15, 1975. Sec. 27.201 Scope of subpart. The provisions of this subpart shall apply only to liquor bottles having a capacity of 200 ml. or more except where expressly applied to liquor bottles of less than 200 ml. capacity. [T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-34, 41 FR 46865, Oct. 26, 1976] Sec. 27.202 Standards of fill. Distilled spirits imported into the United States in containers of 1 gallon (3.785 liters) or less for sale shall be imported only in liquor bottles, including liquor bottles of less than 200 ml capacity, which conform to the applicable standards of fill provided in Sec. 5.47a of this chapter. Empty liquor bottles, including liquor bottles of less than 200 ml capacity, which conform to the provisions of part 19, or subpart E of part 5 of this chapter, may be imported for packaging distilled spirits in the United States as provided in part 19 of this chapter. [T.D. ATF-62, 44 FR 71720, Dec. 11, 1979] Sec. 27.204 Distinctive liquor bottles. (a) Application. Liquor bottles of distinctive shape or design, including bottles of less than 200 ml. capacity, may be imported by an importer (filled bottles) or a bottler (empty bottles). For filled bottles, the importer shall submit ATF Form 5100.31 for approval prior to importation of such bottles [[Page 733]] into the United States. For empty bottles, the bottler shall obtain approval from the appropriate ATF officer on ATF Form 5100.31 prior to

using the bottles. The importer or bottler, as applicable, shall certify as to the total capacity of a representative sample bottle before closure (expressed in milliliters) on each copy of the form. In addition, the applicant shall affix a readily legible photograph (both front and back of the bottle to the front of each copy of ATF Form 5100.31, along with the label(s) to be used on the bottle. The applicant shall not submit an actual bottle or an authentic model unless specifically requested to do so. (b) Approval. Properly submitted ATF Forms 5100.31 to import distinctive liquor bottles (filled), or, properly submitted ATF Forms 5100.31 to use distinctive liquor bottles (empty) which have been imported, shall be approved provided such bottles are found by the appropriate ATF officer to-- (1) Meet the requirements of 27 CFR part 5; (2) Be distinctive; (3) Be suitable for their intended purpose; (4) Not jeopardize the revenue; and (5) Not be deceptive to the consumer. The applicant shall keep a copy of the approved ATF Form 5100.31, including an approved photograph (both front and back) of the distinctive liquor bottle, on file at his premises. If ATF Form 5100.31 is disapproved, the applicant shall be notified of the appropriate ATF officer decision and the reasons therefor. The applicant importer is responsible for furnishing a copy of the approved ATF Form 5100.31, including a photograph of the distinctive liquor bottle, to Customs officials at each affected port of entry where the merchandise is examined. (Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301)) [T.D. ATF-114, 47 FR 43951, Oct. 5, 1982, as amended by T.D. ATF-242, 51 FR 39526, Oct. 29, 1986; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Sec. 27.205 [Reserved] Sec. 27.206 Bottles not constituting approved containers. The appropriate ATF officer is authorized to disapprove any bottle, including a bottle of less than 200 ml. capacity, for use as a liquor bottle which he determines to be deceptive. The Customs officer at the port of entry shall deny entry of any such bottle containing distilled spirits upon advice from the appropriate ATF officer that such bottle is not an approved container for distilled spirits for consumption in the United States. (Sec. 201, Pub. L. 85-859, 72 Stat. 1374, as amended (26 U.S.C. 5301)) [T.D. ATF-114, 47 FR 43951, Oct. 5, 1982] Sec. 27.207 Bottles to be used for display purposes.

Empty liquor bottles may be imported and furnished to liquor dealers for display purposes, provided each bottle is marked to show that it is to be used for such purpose. The importer shall keep records of the receipt and disposition of such bottles, showing the names and addresses of consignees, dates of shipment, and size, quantity, and description of bottles. [T.D. ATF-206, 50 FR 23956, June 7, 1985] Sec. 27.208 Liquor bottles denied entry. Filled liquor bottles, not conforming to the provisions of this subpart, shall [[Page 734]] be denied entry into the United States: Provided, That, upon letterhead application, in triplicate, the appropriate ATF officer may, in nonrecurring cases, authorize the release from customs custody of distilled spirits in bottles, except those coming under the provisions of Sec. 27.206, which, through unintentional error, do not conform to the provisions of this subpart, if he finds that such release will not afford a jeopardy to the revenue. (Approved by the Office of Management and Budget under control number 1512-0352) [T.D. 6954, 33 FR 6819, May 4, 1968. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002] Sec. 27.209 Used liquor bottles. The appropriate ATF officer may pursuant to letterhead application filed in triplicate, authorize an importer to receive liquor bottles assembled for him as provided in Sec. 194.263 of this chapter. Used liquor bottles so received may be stored at any suitable location pending exportation for reuse. The importer shall keep records of the receipt and disposition of used liquor bottles. (Approved by the Office of Management and Budget under control number 1512-0352] [T.D. 6954, 33 FR 6819, May 4, 1968, as amended by T.D. 7006, 34 FR 2251, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984] Subpart O_Miscellaneous Provisions Sec. 27.221 Alternate methods or procedures. (a) Application. An importer who desires to use an alternate method or procedure in lieu of a method or procedure prescribed by this part must file an application, in triplicate, with the appropriate ATF

officer. Each application must: (1) Specify the name, address, and permit number of the importer to which it relates; (2) State the purpose for which filed; and (3) Specifically describe the alternate method or procedure and set forth the reasons therefor. No alternate method or procedure relating to the assessment, payment, or collection of tax shall be authorized under this paragraph. (b) Approval. When an application for use of an alternate method or procedure is received, the appropriate ATF officer must determine whether approval thereof would unduly hinder the effective administration of this part or would result in jeopardy to the revenue. The appropriate ATF officer may approve the alternate method or procedure if such officer finds that: (1) Good cause has been shown for the use of the alternate method or procedure; (2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue; and (3) The alternate method or procedure will not be contrary to any provision of law, and will not result in an increase in cost to the Government or hinder the effective administration of this part. No alternate method or procedure shall be used until approval has been received from the appropriate ATF officer. Authorization for the alternate method or procedure may be withdrawn whenever in the judgment of the appropriate ATF officer, the revenue is jeopardized or the effective administration of this part is hindered by the continuation of such authorization. (Approved by the Office of Management and Budget under control number 1512-0352) [T.D. ATF-2, 37 FR 22743, Oct. 21, 1972. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-172, 49 FR 14943, Apr. 16, 1984; T.D. ATF-474, 67 FR 11232, Mar. 13, 2002]