[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: 27CFR26.36]

[Page 732]
 
            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 
 
   Subpart Cb_Products Coming Into the United States From Puerto Rico
 
Sec.  26.36  Products exempt from tax.

    (a) General. Industrial spirits, denatured spirits, and products 
made with denatured spirits in Puerto Rico may be brought into the 
United States without incurring tax liability imposed by 26 U.S.C. 5001 
or 7652.
    (b) Industrial spirits. A distiller of industrial spirits who 
registers, files a bond, and pays special (occupational) tax as a 
distilled spirits plant in accordance with part 19 of this chapter may 
ship industrial spirits to a tax-free alcohol user in the United States 
who holds a permit and has paid special (occupational) tax under part 22 
of this chapter. These shipments shall be made in accordance with the 
requirements of parts 19 and 22 of this chapter.
    (c) Denatured spirits. A distiller who registers, files a bond, and 
pays special (occupational) tax as a distilled spirits plant in 
accordance with part 19 of this chapter and who denatures spirits in 
accordance with parts 19 and 21 of this chapter may ship (1) completely 
denatured alcohol to anyone in the United States, and/or (2) specially 
denatured spirits to a dealer or user of specially denatured spirits in 
the United States or Puerto Rico who holds a permit and has paid special 
(occupational) tax under part 20 of this chapter. These shipments shall 
be made in accordance with the requirements of parts 19 and 20 of this 
chapter, and subpart Ia of this part.
    (d) Products made with denatured spirits. (1) A person in Puerto 
Rico who manufactures products with completely denatured alcohol in 
accordance with the requirements of part 20 of this chapter may ship 
those products to the United States in accordance with the requirements 
of part 20 of this chapter, and subpart Ia of this part.
    (2) A person in Puerto Rico who manufactures products with specially 
denatured spirits may ship those products to the United States if that 
person (i) obtains a permit to use specially denatured spirits, and pays 
special (occupational) tax, under part 20 of this chapter, and (ii) 
complies with the requirements of part 20 of this chapter and subpart Ia 
of this part relating to the manufacture and shipment of those products.

[T.D. ATF-199, 50 FR 9198, Mar. 6, 1985; T.D. ATF-199, 50 FR 20099, May, 
14, 1985, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988]