[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: 27CFR19.71]

[Page 318]
 
            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 D--Administrative and Miscellaneous Provisions
 
Sec. 19.71  Experimental or research operations by scientific institutions and colleges of learning.

    (a) General. The Director may authorize any scientific university, 
college of learning, or institution of scientific research to produce, 
receive, blend, treat, test, and store spirits, without payment of tax, 
for experimental or research use but not for consumption (other than 
organoleptic tests) or sale, in quantities as may be reasonably 
necessary for such purposes. The Director may waive any provision of 26 
U.S.C. Chapter 51 (other than 26 U.S.C. 5312), or this part (other than 
this section) to the extent necessary to effect the purposes of 26 
U.S.C. 5312(a), except he may not waive the payment of any tax on 
distilled spirits removed from any university, college, or institution. 
A person conducting experimental or research operations authorized under 
this section is subject to special (occupational) tax under subpart Ca 
of this part and shall hold a special tax stamp to cover the 
experimental or research operations.
    (b) Qualification. Any university, college, or institution desiring 
to conduct any of the experimental or research operations listed in the 
preceding paragraphs shall make written application, to the Director, 
through the regional director (compliance), and obtain the Director's 
approval of the proposed operations. The applicant shall file with the 
application a bond in a form and penal sum as required by the Director. 
The application shall state the nature, extent, and purpose of the 
operations to be conducted and describe the operations and equipment, 
the location at which operations will be conducted (including 
identification of the building or buildings, or the portions thereof to 
be used), and the security measures to be provided. The Director may 
require any additional information. Operations shall not be commenced 
until authorized by the Director.
    (c) Records. Reports concerning the operations need not be submitted 
unless required by the Director, but records of the quantities of 
spirits produced, received, and used each day shall be made and retained 
for inspection by ATF officers.
    (d) Discontinuance of operations. When operations authorized by the 
Director are discontinued, all remaining spirits shall be disposed of by 
destruction. When these spirits have been destroyed, notice of the 
discontinuance of operations shall be given to the regional director 
(compliance).

(Sec. 201, Pub. L. 85-859, 72 Stat. 1375, as amended (26 U.S.C. 5312))

[T.D. ATF-198, 50 FR 8464, Mar. 1, 1985, as amended by T.D. ATF-271, 53 
FR 17543, May 17, 1988]

            Authorities of the Regional Director (Compliance)