[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR159.4]

[Page 224-225]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 159--LIQUIDATION OF DUTIES--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 159.4  Alcoholic beverages.

    (a) Quantities subject to duties. Customs duties and internal 
revenue taxes on alcoholic beverages provided for in headings 2207 and 
2208, Harmonized Tariff Schedule of the United States (HTSUS), (19 
U.S.C. 1202), and subject to internal revenue taxes shall be collected 
only on the number of proof gallons and fractional parts thereof, 
entered or withdrawn for consumption. No internal revenue tax shall be 
collected on distilled spirits in bulk which have been transferred to 
Internal Revenue bonded premises in accordance with Sec. 141.102(b) of 
this chapter. Customs duties and internal revenue taxes on alcoholic 
beverages other than subheadings 2206.00.30 and 2206.00.90, HTSUS, and 
distilled spirits provided for in headings 2207 and 2208, shall be 
collected only on the number of wine gallons and fractional parts 
thereof, entered or withdrawn for consumption.
    (b) Computation of duties. In the computation of Customs duties on 
alcoholic beverages provided for in headings 2207 and 2208 (19 U.S.C. 
1202), which are also subject to internal revenue taxes, the methods 
prescribed for the computation of internal revenue taxes on such 
beverages shall be followed. The following methods apply to the specific 
beverages shown:
    (1) Distilled spirits. The quantity of distilled spirits imported in 
barrels, kegs, or similar containers shall be ascertained in accordance 
with the regulations of the Bureau of Alcohol, Tobacco and Firearms. 
Where distilled spirits are imported in bottles, jugs, or similar 
containers, Customs duties and taxes shall be collected on the exact 
quantity contained in each case or other outer container, fractional 
parts of a gallon being carried out to three decimal places utilizing 
the proof gallon method of computation.

[[Page 225]]

    (2) Wine. Customs duties and taxes on wines shall be on the basis of 
a wine gallon of liquid measure equivalent to 231 cubic inches and shall 
be paid proportionally on all 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.
    (3) Beer and similar fermented beverages. Customs duties and taxes 
on beer, ale, porter, stout, and other similar fermented beverages, 
including sake, 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, shall be collected 
in accordance with section 5051(a), Internal Revenue Code of 1954 (26 
U.S.C. 5051(a)).

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 78-329, 43 
FR 43455, Sept. 26, 1978; T.D. 80-271, 45 FR 75641, Nov. 17, 1980; T.D. 
89-1, 53 FR 51270, Dec. 21, 1988]