[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: 27CFR19.36]

[Page 308]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 19--DISTILLED SPIRITS PLANTS--Table of Contents
 
                            Subpart C--Taxes
 
Sec. 19.36  Standard effective tax rate.

    (a) The proprietor may establish a permanent standard effective tax 
rate for any eligible distilled spirits product based on the least 
quantity and the lowest alcohol content of eligible wine or eligible 
flavors used in the manufacture of the product. The permanent standard 
effective tax rate must equal the highest tax rate applicable to the 
product. The proprietor shall maintain a permanent record of the 
standard effective tax rate established for each product in accordance 
with Sec. 19.765. Whenever the proprietor manufactures a batch of the 
product with a lesser quantity or lower alcohol content of eligible wine 
or eligible flavor, he shall keep the cased goods segregated from other 
completed cases of the same product and shall tax determine the product 
in accordance with Sec. 19.35.
    (b) If the regional director (compliance) finds that the use of this 
procedure jeopardizes the revenue or causes administrative difficulty, 
the proprietor shall discontinue the use of the procedure.

(Sec. 807, Pub. L. 96-39, 93 Stat. 284 (26 U.S.C. 5207); 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))