[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR19.71]

[Page 373-374]
 
            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 appropriate TTB officer 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 appropriate TTB 
officer 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,

[[Page 374]]

to the appropriate TTB officer and obtain approval of the proposed 
operations. The applicant shall file with the application a bond in a 
form and penal sum as required by the appropriate TTB officer. 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 appropriate TTB 
officer may require any additional information. Operations shall not be 
commenced until authorized by the appropriate TTB officer.
    (c) Records. Reports concerning the operations need not be submitted 
unless required by the appropriate TTB officer, but records of the 
quantities of spirits produced, received, and used each day shall be 
made and retained for inspection by appropriate TTB officers.
    (d) Discontinuance of operations. When operations authorized by the 
appropriate TTB officer 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 
appropriate TTB officer.

(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]