[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR17.11]

[Page 264-265]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 17--DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN MANUFACTURING NONBEVERAGE PRODUCTS--Table of Contents
 
                         Subpart B--Definitions
 
Sec. 17.11  Meaning of terms.


    As used in this part, unless the context otherwise requires, terms 
have the meanings given in this section. Words in the plural form 
include the singular, and vice versa, and words indicating the masculine 
gender include the feminine. The terms ``includes'' and ``including'' do 
not exclude things not listed 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 
1130.13, Delegation Order--Delegation of the Director's Authorities in 
27 CFR Parts 17 and 18.
    Approved, or approved for drawback. When used with reference to 
products and their formulas, this term means that drawback may be 
claimed on eligible spirits used in such products in accordance with 
this part.
    CFR. The Code of Federal Regulations.
    Director. The Director, Bureau of Alcohol, Tobacco and Firearms, the 
Department of Treasury, Washington, DC 20226.
    Distilled spirits, or spirits. That substance known as ethyl 
alcohol, ethanol, spirits, or spirits of wine in any form (including all 
dilutions and mixtures thereof, from whatever source or by whatever 
process produced).
    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 or 7652 is paid or 
determined. For distilled spirits with no wine or flavors content, the 
effective tax rate equals the rate of tax imposed by 26 U.S.C. 5001 or 
7652.
    Eligible, or eligible for drawback. When used with reference to 
spirits, this term designates taxpaid spirits which have not yet been 
used in nonbeverage products.
    Filed. Subject to the provisions of Secs. 70.305 and 70.306 of this 
chapter, a claim for drawback or other document or payment submitted 
under this part is generally considered to have been ``filed'' when it 
is received by the office of the proper Government official; but if an 
item is mailed timely with postage prepaid, then the United States 
postmark date is treated as the date of filing.
    Food products. Includes food adjuncts, such as preservatives, 
emulsifying agents, and food colorings, which are manufactured and used, 
or sold for use, in food.
    Intermediate products. Products to which all three of the following 
conditions apply: they are made with taxpaid distilled spirits, they 
have been disapproved for drawback, and they are made by the 
manufacturer exclusively for its own use in the manufacture of 
nonbeverage products approved for drawback. However, ingredients treated 
as unfinished nonbeverage products under Sec. 17.127 are not considered 
to be intermediate products.
    Medicines. Includes laboratory stains and reagents for use in 
medical diagnostic procedures.
    Month. A calendar month.
    Nonbeverage products. Medicines, medicinal preparations, food 
products, flavors, flavoring extracts, or perfume, which are 
manufactured using taxpaid distilled spirits, and which are unfit for 
use for beverage purposes.
    Person. An individual, trust, estate, partnership, association, 
company, or 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

[[Page 265]]

at 60 degrees Fahrenheit as unity), or the alcoholic equivalent thereof.
    Quarter. A 3-month period beginning January 1, April 1, July 1, or 
October 1.
    Recovered spirits. Taxpaid spirits that have been salvaged, after 
use in the manufacture of a product or ingredient, so that the spirits 
are reusable.
    Special tax. The special (occupational) tax on manufacturers of 
nonbeverage products, imposed by 26 U.S.C. 5131.
    Subject to drawback. This term is used with reference to spirits. 
Eligible spirits become ``subject to drawback'' when they are used in 
the manufacture of a nonbeverage product. When spirits have become 
``subject to drawback,'' they may be included in the manufacturer's 
claim for drawback of tax covering the period in which they were first 
used.
    Tax year. The period from July l of one calendar year through June 
30 of the following year.
    Taxpaid. When used with respect to distilled spirits, this term 
shall mean that all taxes imposed on such spirits by 26 U.S.C. 5001 or 
7652 have been determined or paid as provided by law.
    This chapter. Chapter I of title 27 of the Code of Federal 
Regulations.
    U.S.C. The United States Code.

[T.D. ATF-379, 61 FR 31412, June 20, 1996, as amended by T.D. ATF-436, 
66 FR 5470, Jan. 19, 2001]