[Code of Federal Regulations]

[Title 27, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 27CFR26.11]

[Page 689-691]

TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS

CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE

TREASURY

PART 26_LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS

--Table of Contents

Subpart B_Definitions

Sec. 26.11 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

1130.29, Delegation Order--Delegation of the Director's Authorities in

27 CFR Part 26, Liquors and Articles from Puerto Rico and the Virgin

Islands.

Article. Any preparation unfit for beverage use, made with or

containing:

(1) Wine or beer;

(2) Distilled spirits or industrial spirits; or

(3) Denatured spirits when such preparation is not manufactured

under the provisions of this chapter.

Bank. Any commercial bank.

Banking day. Any day during which a bank is open to the public for

carrying on substantially all its banking functions.

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.

Bottler. Any person required to hold a basic permit as a bottler

under 27 U.S.C. 203(b)(1).

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.

Bureau of Alcoholic Beverage Taxes. Bureau of Alcoholic Beverage

Taxes of the Commonwealth of Puerto Rico.

Business day. Any day, other than a Saturday, Sunday, or a legal

holiday. (The term legal holiday includes all holidays in the District

of Columbia and all legal holidays in the Commonwealth of Puerto Rico.)

Commercial bank. A bank, whether or not a member of the Federal

Reserve System, which has access to the Federal Reserve Communications

System (FRCS) or Fedwire. The ``FRCS'' or ``Fedwire'' is a

communications network that allows Federal Reserve System member banks

to effect a transfer of funds for their customers (or other commercial

banks) to the Treasury Account at the Federal Reserve Bank of New York.

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.

Denatured spirits. Industrial spirits denatured in accordance with

approved

[[Page 690]]

formulas in distilled spirits plants established and operated under the

provisions of this chapter relating to the establishment and operation

of plants qualified to denature spirits in the United States or, in

respect of a product of the Virgin Islands, shall also mean spirits

denatured in accordance with approved formulas in plants established

under the provisions of the Virgin Islands regulations and shall

include, unless otherwise limited, both completely and specially

denatured spirits.

Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the

Department of the Treasury, Washington, D.C.

Director of the service center. A director of an internal revenue

service center.

Distilled spirits or spirits. That substance known as ethyl alcohol,

ethanol, or spirits of wine, in any form (including all dilutions and

mixtures thereof, from whatever source or by whatever process produced),

but shall not include industrial spirits as defined in this part except

when used in reference to such spirits which would be subject to tax if

brought into the United States.

District director. A district director of internal revenue.

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. 7652 is paid or

determined.

Electronic fund transfer or EFT. Any transfer of funds effected by a

proprietor's commercial bank, either directly or through a correspondent

banking relationship, via the Federal Reserve Communications System

(FRCS) or Fedwire to the Treasury Account at the Federal Reserve Bank of

New York.

Eligible article. Any medicine, medicinal preparation, food product,

flavor, flavoring extract or perfume which contains distilled spirits,

is unfit for beverage purposes, and has been or will be brought into the

United States from Puerto Rico or the Virgin Islands under the

provisions of 26 U.S.C. 7652(g).

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 distillation at

a distilled spirits plant after receipt in bond.

Executed under penalties of perjury. Signed with the prescribed

declaration under the penalties of perjury as provided on or with

respect to the return, claim, form, or other document, or where no form

of declaration is prescribed, with the declaration: ``I declare under

the penalties of perjury that this -------- (insert type of document,

such as statement, report, certificate, application, claim, or other

document), including the documents submitted in support thereof, has

been examined by me and, to the best of my knowledge and belief, is

true, correct, and complete.''

Fiscal year. The period which begins October 1 and ends on the

following September 30.

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.

Industrial spirits. As to products of Puerto Rico, distilled spirits

produced and warehoused at and withdrawn from distilled spirits plants

established and operated under the provisions of this chapter relating

to the establishment of such plants and the production, bonded

warehousing, and withdrawal from bond of distilled spirits in the United

States, or as to products of the

[[Page 691]]

Virgin Islands, distilled spirits produced, warehoused, and withdrawn

under Virgin Islands regulations.

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.

Liquors. Industrial spirits, distilled spirits, liqueurs, cordials

and similar compounds, wines, and beer or any alcoholic preparation fit

for beverage use.

Permit. A formal written authorization of the Secretary of the

Treasury of Puerto Rico.

Person. An individual, a trust, an estate, a partnership, an

association, a company, or a corporation.

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.

Rectifier. Any person required to hold a rectifier's basic permit

under 27 U.S.C. 203(b)(1).

Revenue Agent. Any duly authorized Commonwealth Internal Revenue

Agent of the Department of the Treasury of Puerto Rico.

Secretary. The Secretary of the Treasury of Puerto Rico.

Secretary or his delegate. The Secretary or any officer or employee

of the Department of the Treasury of Puerto Rico duly authorized by the

Secretary to perform the function mentioned or described in this part.

Taxpaid. As used in this part with respect to liquors or articles of

Puerto Rican manufacture, includes liquors or articles on which the tax

was computed but with respect to which payment was deferred under the

provisions of subpart E of this part.

Treasury Account. The Department of the Treasury's General Account

at the Federal Reserve Bank of New York.

United States. The States and the District of Columbia.

U.S.C. The United States Code.

Virgin Islands regulations. Regulations issued or adopted by the

Governor of the Virgin Islands, or his duly authorized agents, with the

concurrence of the Secretary of the Treasury of the United States, or

his delegate, under the provisions of 26 U.S.C. 5314, as amended, and

Sec. 26.201a.

Wine. Still wine, vermouth, or other aperitif wine, imitation,

substandard, or artificial wine, compounds designated as wine, flavored,

rectified, or sweetened wine, champagne or sparkling wine, and

artificially carbonated wine, containing not over 24 percent of alcohol

by volume. Wines containing more than 24 percent of alcohol by volume

are classed and taxed as distilled spirits.

(68A Stat. 917, as amended (26 U.S.C. 7805); 49 Stat. 981, as amended

(27 U.S.C. 205) Aug. 16, 1954, ch. 736, 68A Stat. 775 (26 U.S.C. 6301);

June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301))

[T.D. ATF-48, 43 FR 13551, Mar. 31, 1978]

Editorial Note: For Federal Register citations affecting Sec.

26.11, see the List of CFR Sections Affected, which appears in the

Finding Aids section of the printed volume and on GPO Access.

Subpart C [Reserved]