[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: 27CFR26.1]

[Page 685-688]
 
            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 A_Scope of Regulations
 
Sec. 26.1  Alcoholic products coming into the United States from Puerto 
Rico and the Virgin Islands.




                     Subpart A_Scope of Regulations

Sec.
26.1 Alcoholic products coming into the United States from Puerto Rico 
          and the Virgin Islands.
26.2 Forms prescribed.
26.3 Delegations of the Director.

                          Subpart B_Definitions

26.11 Meaning of terms.

Subpart C [Reserved]

  Subpart Ca_Rum Imported Into the United States From Areas Other Than 
                   Puerto Rico and the Virgin Islands

26.30 Excise taxes.
26.31 Formula.

   Subpart Cb_Products Coming into the United States From Puerto Rico

26.35 Taxable status.
26.36 Products exempt from tax.
26.36a-26.36b [Reserved]
26.36c Shipments of bulk distilled spirits to the United States without 
          payment of tax.
26.37 United States Bureau of Alcohol, Tobacco and Firearms officers.
26.38 Containers of distilled spirits.
26.39 Labels.
26.40 Marking containers of distilled spirits.
26.41 Destruction of marks and brands.
26.43 Samples.

                      Special (Occupational) Taxes

26.44 Liquor dealer's special taxes.
26.45 Warehouse receipts covering distilled spirits.
26.46 Distilled spirits plant proprietor's special (occupational) tax.
26.47 Specially denatured spirits user's and dealer's special 
          (occupational) taxes.

            Subpart D_Formulas for Products From Puerto Rico

26.50 Formulas for liquors.
26.50a Verfication of eligible flavors.
26.51 Formulas for articles, eligible articles, and products 
          manufactured with denatured spirits.
26.52 Still wines containing carbon dioxide.
26.53 Changes of formulas.
26.54 Filing and disposition of formulas.
26.55 Previously approved formulas.

[[Page 686]]

       Subpart E_Taxpayment of Liquors and Articles in Puerto Rico

                                  Bonds

26.61 General.
26.62 Corporate surety.
26.62a Filing of powers of attorney.
26.62b Execution of powers of attorney.
26.63 Deposit of securities in lieu of corporate surety.
26.64 Consents of surety.
26.65 Authority to approve bonds and consents of surety.
26.66 Bond, ATF Form 5110.50--Distilled spirits.
26.67 Bond, Form 2897--Wine.
26.68 Bond, Form 2898--Beer.
26.68a Bond account.
26.69 Strengthening bonds.
26.70 New or superseding bonds.
26.70a Notice of approval of bonds.

                          Termination of Bonds

26.71 Termination of bonds.
26.72 Application of surety for relief from bond.
26.73 Relief of surety from bond.
26.74 Release of pledged securities.
26.75 Form 1490, Notice of Termination of Bond.

                            Permits Required

26.76 Insular permits.

                            Distilled Spirits

26.77 Subject to tax.
26.78 Application and permit, ATF Form 5110.51.
26.79 Inspection or gauge and computation of tax.
26.79a Computation of effective tax rate.
26.80 Deferred payment of tax--release of spirits.
26.81 Prepayment of tax and release of spirits.
26.82 Permit to ship.

                      Packages of Distilled Spirits

26.86 Authority for shipment.
26.87 Evidence of taxpayment.

                                  Wine

26.92 Subject to tax.
26.93 Application and permit, Form 2900.
26.94 Computation of tax.
26.95 Deferred payment of tax--release of wine.
26.96 Prepayment of tax--release of wine.
26.96a [Reserved]
26.96b Permit to ship.
26.97 Marking containers of wine.

                                  Beer

26.101 Subject to tax.
26.102 Application and permit, Form 2900.
26.103 Computation of tax.
26.104 Deferred payment of tax--release of beer.
26.105 Prepayment of tax--release of beer.
26.105a Permit to ship.
26.106 Marking containers of beer.

                                Articles

26.107 Taxable status.
26.108 Application for permit, ATF Form 5110.51 and/or Form 2900.
26.109 Taxpayment.
26.110 Release of articles or liquors.

                        Payment of Tax by Return

26.111 General.
26.112 Returns for semimonthly periods.
26.112a Payment of tax by electronic fund transfer.
26.113 Returns for prepayment of taxes.

                   Permit To Ship Liquors and Articles

26.114 Permit to ship required.
26.115 Application, Form 487B.
26.116 Issuance of permit, Form 487B, and customs inspection.

                      Procedure at Port of Arrival

26.117 Action by carrier.
26.118 Inspection by district director of customs at port of arrival.
26.119 Disposition of forms by district director of customs.

   Subpart F_Liquors and Articles Purchased by Tourists in Puerto Rico

26.125 Taxable.
26.126 Taxpayment in Puerto Rico.
26.128 Taxpayment at port of arrival.

        Subpart G_Closures for Distilled Spirits From Puerto Rico

26.135 Containers of distilled spirits to bear closures.
26.136 Affixing closures.

        Subpart H_Records and Reports of Liquors From Puerto Rico

26.163 General requirements.
26.164 Proprietors of taxpaid premises.
26.164a Package gauge record.
26.165 Certificate of effective tax rate computation.

   Subpart I_Claims for Drawback on Eligible Articles From Puerto Rico

26.170 Drawback of tax.
26.171 Special tax.
26.172 Bonds.
26.173 Claims for drawback.

[[Page 687]]

26.174 Records.

    Subpart Ia_Shipment of Denatured Spirits and Products Made With 
         Denatured Spirits to the United States From Puerto Rico

26.191 Notice of shipment.
26.192 Samples and analysis.
26.193 Notification of tax liability.
26.194 Detention of articles.

Subpart Ib_Shipment of Bulk Distilled Spirits From Puerto Rico, Without 
 Payment of Tax, for Transfer From Customs Custody to Internal Revenue 
                                  Bond

26.196 General.
26.197 Furnishing formula to consignee.
26.198 [Reserved]
26.199 Application and permit to ship, ATF Form 5110.31.
26.199a Action by revenue agent.
26.199b Issuance and disposition of permit.
26.199c Action by carrier.
26.199d Customs inspection and release.
26.199e [Reserved]
26.199f Consignee premises.

Subpart J_Products Coming Into the United States From the Virgin Islands

26.200 Taxable status.
26.201 Products exempt from tax.
26.201a Production in the Virgin Islands for tax-free shipment to the 
          United States.
26.201b [Reserved]
26.201c Shipments of bulk distilled spirits to the United States without 
          payment of tax.
26.202 Requirements of the Federal Alcohol Administration Act.
26.203 Containers of 1 gallon (3.785 liters) or less.
26.203a Containers in excess of 1 gallon (3.785 liters).
26.204 Regauge.
26.204a Verification of eligible wines and eligible flavors.
26.205 Certificate.
26.206 Marking packages and cases.
26.207 Destruction of marks and brands.
26.209 Samples.

                      Special (Occupational) Taxes

26.210 Liquor dealer's special taxes.
26.211 Warehouse receipts covering distilled spirits.

         Subpart K_Formulas for Products From the Virgin Islands

26.220 Formulas for liquors.
26.221 Formulas for articles, eligible articles, and products 
          manufactured with denatured spirits.
26.222 Still wines containing carbon dioxide.
26.223 Changes of formulas.
26.224 Filing and disposition of formulas.
26.225 Previously approved formulas.

    Subpart L_Closures for Distilled Spirits From the Virgin Islands

                                 General

26.230 Containers of distilled spirits to bear closures.
26.231 Affixing closures.

      Subpart M_Procedure at Port of Entry From the Virgin Islands

26.260 Certificate.
26.261 Action by district director of customs.
26.262 Determination of tax on distilled spirits.
26.262a Computation of effective tax rate.
26.263 Determination of tax on beer.
26.264 Determination of tax on wine.
26.265 Determination of tax on articles.
26.266 Tax payment.
26.267 Payment of tax by electronic fund transfer.

    Subpart N_Records and Reports of Liquors From the Virgin Islands

       Record and Report of Liquors Brought Into the United States

26.272 General requirements.
26.273 Proprietors of taxpaid premises.
26.273a Transfer record.
26.273b Package gauge record.

               Filing and Retention of Records and Reports

26.275 Filing.
26.276 Retention.
26.277 [Reserved]

   Subpart O_Tax-Free Shipments to the United States From the Virgin 
                                 Islands

26.291 General.

     Shipment of Industrial Spirits and Specially Denatured Spirits

26.292 Copy of consignee's permit under part 20 or 22.
26.293 Marks on containers.
26.294 Record of shipment.

    Shipment of Completely Denatured Alcohol and Products Made With 
                            Denatured Spirits

26.295 Marks on containers.
26.296 Record of shipment.

[[Page 688]]

                      Arrival in the United States

26.297 General.

 Subpart Oa_Shipment of Bulk Distilled Spirits From the Virgin Islands, 
 Without Payment of Tax, for Transfer From Customs Custody to Internal 
                              Revenue Bond

26.300 General.
26.301 Preparation of transfer record.
26.302 Gauge and certification.
26.303 Customs inspection and release.
26.304 Bulk conveyances to be sealed.
26.305 Receipt by consignee.

  Subpart Ob_Claims for Drawback on Eligible Articles From the Virgin 
                                 Islands

26.306 Drawback of tax.
26.307 Special tax.
26.308 Bonds.
26.309 Claims for drawback.
26.310 Records.

                Subpart P_Requirements for Liquor Bottles

26.311 Scope of subpart.
26.312 Standards of fill.
26.314 Distinctive liquor bottles.
26.315 [Reserved]
26.316 Bottles not constituting approved containers.
26.317 Bottles to be used for display purposes.
26.318 Liquor bottles denied entry.
26.319 Used liquor bottles.

                   Subpart Q_Miscellaneous Provisions

26.331 Alternate methods or procedures.

    Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010, 5041, 
5051, 5061, 5081, 5111, 5112, 5114, 5121, 5122, 5124, 5131-5134, 5141, 
5146, 5207, 5232, 5271, 5276, 5301, 5314, 5555, 6001, 6301, 6302, 6804, 
7101, 7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303, 
9304, 9306.

    Source: 20 FR 6077, Aug. 20, 1955, unless otherwise noted. 
Redesignated at 40 FR 16835, Apr. 15, 1975, and further redesignated by 
T.D. ATF-459, 66 FR 38550, July 25, 2001.

    Editorial Note: Nomenclature changes to part 26 appear at 66 FR 
21668, 21669, May 1, 2001.



    This part, ``Liquors and Articles from Puerto Rico and the Virgin 
Islands,'' relates to:
    (a) The production, bonded warehousing, and withdrawal of distilled 
spirits and denatured spirits, and the manufacture of articles in Puerto 
Rico and the Virgin Islands to be brought into the United States free of 
tax;
    (b) The collection of internal revenue taxes on taxable alcoholic 
products coming into the United States from Puerto Rico and the Virgin 
Islands;
    (c) The transfer, without payment of tax, of Puerto Rican and Virgin 
Islands spirits in bulk containers or by pipeline from customs custody 
to the bonded premises of a distilled spirits plant qualified under part 
19 of this chapter;
    (d) The deposit of the distilled spirits excise taxes, limited to 
the lesser of $10.50 or the rate in section 5001(a)(1) per proof gallon, 
into the Treasuries of Puerto Rico and the Virgin Islands on all 
articles containing distilled spirits as defined in section 7652, 
produced by those two U.S. possessions, and transported into the United 
States (less certain amounts); and
    (e) The deposit of the distilled spirits excise taxes, limited to 
the lesser of $10.50 or the rate in section 5001(a)(1) per proof gallon, 
into the Treasuries of Puerto Rico and the Virgin Islands on all rum 
imported into the United States (including rum from possessions other 
than Puerto Rico and the Virgin Islands), less certain amounts.

(Approved by the Office of Management and Budget under control number 
1512-0277)

(Sec. 221, Pub. L. 98-67, 97 Stat. 369 (26 U.S.C. 7652)

[T.D. ATF-175, 49 FR 20803, May 16, 1984, as amended by T.D. ATF-203, 50 
FR 15887, Apr. 23, 1985]