503 Part 20—Distribution and Use of Denatured Alcohol

Alcohol and Tobacco Tax and Trade Bureau, Treasury Pt. 20

Section Current OMB Section Current OMB where control where control contained No. contained No.

19.611 ...... 1513–0045 19.719 ...... 1513–0052 1513–0088 19.720 ...... 1513–0052 19.612 ...... 1513–0045 19.724 ...... 1513–0052 1513–0088 19.727 ...... 1513–0052 19.613 ...... 1513–0045 19.729 ...... 1513–0052 19.614 ...... 1513–0045 19.733 ...... 1513–0052 19.615 ...... 1513–0045 19.616 ...... 1513–0056 19.734 ...... 1513–0052 19.617 ...... 1513–0056 19.735 ...... 1513–0038 19.618 ...... 1513–0056 1513–0052 19.619 ...... 1513–0056 19.736 ...... 1513–0052 19.620 ...... 1513–0038 19.739 ...... 1513–0052 1513–0056 19.746 ...... 1513–0052 19.621 ...... 1513–0056 19.747 ...... 1513–0052 19.623 ...... 1513–0056 19.749 ...... 1513–0052 19.624 ...... 1513–0041 1513–0052 19.626 ...... 1513–0056 19.752 ...... 1513–0052 19.627 ...... 1513–0044 19.632 ...... 1513–0039 1513–0041 1513–0047 PART 20—DISTRIBUTION AND USE 1513–0049 OF DENATURED ALCOHOL AND 1513–0049 1513–0088 RUM 19.641 ...... 1513–0081 19.643 ...... 1513–0081 Subpart A—Scope 19.644 ...... 1513–0081 19.645 ...... 1513–0081 Sec. 19.650 ...... 1513–0081 20.1 General. 1513–0088 19.665 ...... 1513–0052 20.2 Territorial extent. 19.666 ...... 1513–0052 20.3 Related regulations. 19.667 ...... 1513–0052 19.669 ...... 1513–0088 Subpart B—Definitions 19.670 ...... 1513–0088 1513–0113 20.11 Meaning of terms. 19.673 ...... 1513–0051 19.675 ...... 1513–0051 19.676 ...... 1513–0014 Subpart C—Administrative Provisions 1513–0051 19.677 ...... 1513–0051 AUTHORITIES 19.680 ...... 1513–0051 19.683 ...... 1513–0051 20.20 Delegations of the Administrator. 1513–0052 20.21 Forms prescribed. 19.684 ...... 1513–0051 20.22 Alternate methods or procedures; and 19.685 ...... 1513–0051 emergency variations from require- 1513–0052 ments. 1513–0088 20.23 Approval of formulas and statements 19.686 ...... 1513–0051 1513–0088 of process. 19.687 ...... 1513–0052 20.24 Allowance of claims. 1513–0088 20.25 Permits. 19.688 ...... 1513–0051 20.27 Right of entry and examination. 1513–0088 20.28 Detention of containers. 19.689 ...... 1513–0051 1513–0088 19.690 ...... 1513–0051 LIABILITY FOR TAX 1513–0088 20.31 Applicable laws and regulations; per- 19.692 ...... 1513–0051 sons liable for tax. 1513–0052 1513–0088 19.695 ...... 1513–0052 MARKS AND BRANDS 19.709 ...... 1513–0052 20.33 Time of destruction of marks and 19.710 ...... 1513–0052 brands. 19.714 ...... 1513–0052 19.715 ...... 1513–0052 1513–0088 DOCUMENT REQUIREMENTS 19.716 ...... 1513–0052 20.36 Execution under penalties of perjury. 1513–0088 19.717 ...... 1513–0052 20.37 Filing of qualifying documents. 19.718 ...... 1513–0052 1513–0088 Subpart Ca [Reserved]

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Subpart D—Qualification of Dealers and 20.112 Special industrial solvents general- Users use formula. 20.113 Proprietary solvents general-use for- APPLICATION FOR PERMIT, FORM 5150.22 mula. 20.114 Tobacco flavor general-use formula. 20.41 Application for industrial alcohol user 20.115 Ink general-use formula. permit. 20.116 Low alcohol general-use formula. 20.42 Data for application, Form 5150.22. 20.117 Reagent alcohol general-use formula. 20.43 Exceptions to application require- 20.118 Rubbing alcohol general-use formula. ments. 20.119 Toilet preparations containing not 20.44 Disapproval of application. less than 10% essential oils general-use 20.45 Organizational documents. formula. INDUSTRIAL ALCOHOL USER PERMIT, FORM 5150.9 Subpart G—Requirements Relating to Articles 20.48 Conditions of permits. 20.49 Duration of permits. 20.131 Scope of subpart. 20.50 Correction of permits. 20.132 General requirements. 20.51 Suspension or revocation of permits. 20.133 Registration of persons trafficking in 20.52 Rules of practice in permit pro- articles. ceedings. 20.134 Labeling. 20.53 Powers of attorney. 20.135 State code numbers. 20.54 Photocopying of permits. 20.136 Labeling regulations of other agen- 20.55 Posting of permits. cies. 20.137 Penalties. CHANGES AFTER ORIGINAL QUALIFICATION 20.56 Changes affecting applications and Subpart H—Sale and Use of Completely permits. Denatured Alcohol 20.57 Automatic termination of permits. 20.58 Adoption of documents by a fiduciary. 20.141 General. 20.59 Continuing partnerships. 20.142 Records of bulk conveyances. 20.60 Change in name of permittee. 20.143 Receipt. 20.61 Change in trade name. 20.144 Packages of completely denatured al- 20.62 Change in location. cohol. 20.63 Adoption of formulas and statement of 20.145 Encased containers. process. 20.146 Labels on bulk containers. 20.64 Return of permits. 20.147 Labels on consumer-size containers. 20.148 Manufacture of articles with com- REGISTRY OF STILLS pletely denatured alcohol. 20.149 Records. 20.66 Registry of stills.

PERMANENT DISCONTINUANCE OF BUSINESS Subpart I—Operations by Dealers and Users of Specially Denatured Spirits 20.68 Notice of permanent discontinuance. OBTAINING SPECIALLY DENATURED SPIRITS Subpart E [Reserved] 20.161 Withdrawals under permit. Subpart F—Formulas and Statements of 20.162 Regulation of withdrawals. Process 20.163 Receipt and storage of specially denatured spirits. 20.91 Formula. PREMISES AND EQUIPMENT 20.92 Samples. 20.93 Changes to formulas. 20.164 Premises. 20.94 Statement of process. 20.165 Storage facilities. 20.95 Developmental samples of articles. 20.166 Stills and other equipment. 20.167 Recovered and restored denatured APPROVAL POLICIES spirits tanks. 20.100 General. INVENTORY AND RECORDS 20.101 Drafting formulas. 20.102 Bay rum, alcoholado, or alcoholado- 20.170 Physical inventory. type toilet waters. 20.171 Record of shipment. 20.103 Articles made with S.D.A. Formula 20.172 Records. No. 39–C. 20.104 Residual alcohol in spirit vinegar. OPERATIONS BY DEALERS 20.175 Shipment for account of another GENERAL-USE FORMULAS dealer. 20.111 General. 20.176 Packaging by a dealer.

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20.177 Encased containers. Subpart O—Samples of Specially 20.178 Marks and brands on containers of Denatured Spirits specially denatured spirits. 20.179 Package identification number or se- 20.251 General. rial number. 20.252 Samples larger than five gallons. 20.180 Record of packages filled. 20.253 Labels for samples. 20.181 Limitations on shipments. 20.182 Bulk shipments. Subpart P—Records and Reports

OPERATIONS BY USERS 20.261 Records of completely denatured al- 20.189 Use of specially denatured spirits. cohol. 20.190 Diversion of articles for internal 20.262 Dealer’s records of specially dena- human use or beverage use. tured spirits. 20.191 Bulk articles. 20.263 User’s records of specially denatured 20.192 Manufacturing record. spirits. 20.264 User’s records and report of products Subpart J—Losses and processes. 20.265 Retention of invoices. 20.201 Liability and responsibility of car- 20.266 Time for making entries in records. rier. 20.267 Filing and retaining records. 20.202 Losses in transit. 20.268 Photographic copies of records. 20.203 Losses on premises. 20.204 Incomplete shipments. AUTHORITY: 26 U.S.C. 5001, 5206, 5214, 5271– 20.205 Claims. 5275, 5311, 5552, 5555, 5607, 6065, 7805. SOURCE: T.D. ATF–199, 50 FR 9162, Mar. 6, Subpart K—Recovery of Denatured Alco- 1985, unless otherwise noted. hol, Specially Denatured Rum, or Arti- cles EDITORIAL NOTE: Nomenclature changes to part 20 appear by T.D. ATF–235, 66 FR 5473– 20.211 General. 5475, Jan. 19, 2001 and T.D. ATF–463 and T.D. 20.212 Deposit in receiving tanks. ATF–462, 66 FR 42733, 42736, Aug. 15, 2001. 20.213 Reuse of recovered spirits. 20.214 Shipment for restoration or rede- Subpart A—Scope naturation. 20.215 Shipment of articles and spirits resi- § 20.1 General. dues for redistillation. 20.216 Record of shipment. The regulations in this part relate to denatured distilled spirits and cover Subpart L—Destruction the procurement, use, disposition, and recovery of denatured alcohol, spe- 20.221 General. 20.222 Destruction. cially denatured rum, and articles containing denatured spirits. Subpart M—Return, Reconsignment and Disposition of Specially Denatured Spirits § 20.2 Territorial extent. (a) This part applies to the several 20.231 Return. States of the United States, the Dis- 20.232 Reconsignment in transit. 20.233 Disposition after revocation of per- trict of Columbia and to denatured mit. spirits and articles coming into the 20.234 Disposition on permanent discontinu- United States from Puerto Rico or the ance of use. Virgin Islands. 20.235 Disposition to another user. (b) For the purposes of this part, operations in a foreign-trade zone located Subpart N—Use of Specially Denatured in any State of the United States or Spirits by the United States or Govern- the District of Columbia are regulated ment Agency in the same manner as operations in 20.241 General. any other part of such State or the Dis- 20.242 Application and permit, Form 5150.33. trict of Columbia. 20.243 Procurement of specially denatured (48 Stat. 999, as amended (19 U.S.C. 81c)) spirits. 20.244 Receipt of shipment. [T.D. ATF–274, 53 FR 25156, July 5, 1988, as 20.245 Discontinuance of use. amended by T.D. TTB–91, 76 FR 5477, Feb. 1, 20.246 Disposition of specially denatured 2011] spirits on discontinuance of use. 505

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§ 20.3 Related regulations. Article. Any substance or preparation in the manufacture of which denatured Regulations related to this part are spirits are used, including the product listed below: obtained by further manufacture or by 16 CFR Chapter I—Federal Trade Commis- combination with other materials, if sion. the article subjected to further manu- 16 CFR Chapter II—Consumer Product Safe- facture or combination contained dena- ty Commission. tured spirits. 21 CFR Chapter I—Food and Drug Adminis- Bulk conveyance. Any tank car, tank tration, Department of Health and Human truck, tank ship, or tank barge, or a Services. 27 CFR Part 19—Distilled Spirits Plants. compartment of any such conveyance, 27 CFR Part 21—Formulas for Denatured Al- or any other container approved by the cohol and Rum. appropriate TTB officer for the convey- 27 CFR Part 26—Liquors and Articles from ance of comparable quantities of dena- Puerto Rico and the Virgin Islands. tured spirits or articles. 27 CFR Part 27—Importation of Distilled CFR. The Code of Federal Regula- Spirits, Wines and Beer. tions. 27 CFR Part 29—Stills and Miscellaneous Completely denatured alcohol. Those Regulations. spirits known as alcohol, as defined in 27 CFR Part 71—Rules of Practice in Permit this section, denatured under the com- Proceedings. pletely denatured alcohol formulas pre- [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as scribed in subpart C of part 21 of this amended by T.D. ATF–207, 50 FR 23682, June chapter. 5, 1985; T.D. ATF–459, 66 FR 38549, July 25, Dealer. A person required to hold a 2001; T.D. ATF–479, 67 FR 30798, May 8, 2002; T.D. ATF–923, 67 FR 17938, Apr. 12, 2002] permit to deal in specially denatured spirits for resale to persons authorized to purchase or receive specially dena- Subpart B—Definitions tured spirits in accordance with this part. The term does not include a per- § 20.11 Meaning of terms. son who only buys and sells specially When used in this part and in forms denatured spirits which that person prescribed under this part, the fol- never physically receives or intends to lowing terms have the meanings given receive. in this section. Words in the plural Denaturant. Any one of the materials form include the singular, and vice authorized under part 21 of this chapter versa, and words importing the mas- for addition to spirits in the production culine gender include the feminine. of denatured spirits. The terms ‘‘includes’’ and ‘‘including’’ Denatured spirits. Alcohol or rum to do not exclude things not enumerated which denaturants have been added as which are in the same general class. provided in part 21 of this chapter. Administrator. The Administrator, Al- Denaturer. The proprietor of a dis- cohol and Tobacco Tax and Trade Bu- tilled spirits plant who denatures alco- reau, Department of the Treasury, hol or rum under part 19 of this chap- Washington, DC. ter. Alcohol. Those spirits known as ethyl Distributor. Any person who sells alcohol, ethanol, or spirits of wine, completely denatured alcohol, other from whatever source or by whatever than a proprietor of a distilled spirits process produced; the term does not in- plant who sells such alcohol at the clude such spirits as whisky, brandy, plant premises, and any person who rum, gin, or vodka. sells articles containing completely or Appropriate TTB officer. An officer or specially denatured alcohol or spe- employee of the Alcohol and Tobacco cially denatured rum, other than the Tax and Trade Bureau (TTB) author- manufacturer, except where otherwise ized to perform any functions relating specifically restricted in this part. to the administration or enforcement Executed under penalties of perjury. of this part by TTB Order 1135.20, Dele- Signed with the prescribed declaration gation of the Administrator’s Authori- under the penalties of perjury as pro- ties in 27 CFR Part 20, Distribution and vided on or with respect to the claim, Use of Denatured Alcohol and Rum. form, or other document or, where no

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form of declaration is prescribed, with Recover. To salvage, after use, spe- the declaration— cially denatured spirits, completely denatured alcohol without all of its origi- I declare under the penalties of perjury nal denaturants, or any article con- that this llll (insert type of document, such as statement, report, certificate, appli- taining denatured spirits, if (1) the cation, claim, or other document), including original article was made with spe- the documents submitted in support thereof, cially denatured spirits and the has been examined by me and, to the best of salvaged article does not contain all of my knowledge and belief, is true, correct, the original ingredients of the article, and complete. or (2) the original article was made Fiduciary. A guardian, trustee, execu- with completely denatured alcohol and tor, administrator, receiver, conser- the salvaged article does not contain vator, or any person acting in any fidu- all of the original denaturants of the ciary capacity for any person. completely denatured alcohol. Gallon. The liquid measure equiva- Recovered article. An article con- lent to the volume of 231 cubic inches. taining specially denatured spirits Liter or litre. A metric unit of capac- salvaged without all of its original in- ity equal to 1,000 cubic centimeters of gredients, or an article containing alcohol, and equivalent to 33.814 fluid completely denatured alcohol salvaged ounces. A liter is divided into 1,000 mil- without all of the original denaturants liliters. The symbol for milliliter or of the completely denatured alcohol. milliliters is ‘‘ml’’. Recovered denatured alcohol. Dena- Manufacturer or user. A person who tured alcohol (except completely dena- holds a permit to use specially denatured alcohol containing all of its tured alcohol or specially denatured original denaturants) which has been rum or to recover completely or spe- recovered. cially denatured alcohol, specially de- Recovered denatured rum. Denatured natured rum, or articles. rum which has been recovered. Permit. The document issued under 26 Restoration. Restoring to the original U.S.C. 5271(a), authorizing a person to state (except that the restored mate- withdraw and deal in or use specially rial may or may not contain dena- denatured alcohol or specially denaturants to the same extent as the origi- tured rum or to recover denatured al- nal material) of recovered denatured cohol, specially denatured rum, or arti- alcohol, recovered specially denatured cles under specified conditions. rum, or recovered articles containing Permittee. Any person holding a per- denatured alcohol or specially dena- mit, Form 5150.9, issued under this part tured rum. Restoration includes bring- to withdraw and deal in or use (including the alcohol content of the recov- ing recover) denatured spirits. ered product to 190° of proof or more or Person. An individual, trust, estate, to not less than the original proof if partnership, association, company, or less than 190°. Restoration also incorporation. cludes the removal of foreign materials Proof. The ethyl alcohol content of a by any suitable means. liquid at 60 °Fahrenheit, stated as Rum. Any spirits produced from sugar twice the percent of ethyl alcohol by cane products and distilled at less than volume. 190° proof in such manner that the spir- Proof gallon. A gallon at 60 its possess the taste, aroma, and char- °Fahrenheit which contains 50 percent acteristics generally attributed to rum. by volume of ethyl alcohol having a Secretary. The Secretary of the Treas- specific gravity of 0.7939 at 60 ury or his delegate. °Fahrenheit referred to water at 60 Special industrial solvents. Solvents °Fahrenheit as unity, or the alcoholic which are manufactured with specially equivalent thereof. denatured alcohol under special indus- Proprietary solvents. Solvents which trial solvent general-use formula in are manufactured with specially dena- this part. tured alcohol under the proprietary Specially denatured alcohol or S.D.A. solvent general-use formula in this Those spirits known as alcohol, as de- part. fined in this section, denatured under

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the specially denatured alcohol for- cated by the headings on the form and mulas prescribed in part 21 of this the instructions on or pertaining to the chapter. form. In addition, information called Specially denatured rum or S.D.R. for in each form shall be furnished as Those spirits known as rum, as defined required by this part. The form will be in this section, denatured under the filed in accordance with the instruc- specially denatured rum formula pre- tions for the form. scribed in part 21 of this chapter. (b) Forms prescribed by this part are Specially denatured spirits. Specially available for printing through the TTB denatured alcohol or specially dena- Web site (http://www.ttb.gov) or by mail- tured rum. ing a request to the Alcohol and To- Spirits or distilled spirits. Alcohol or bacco Tax and Trade Bureau, National rum as defined in this part. Revenue Center, 550 Main Street, Room Tank truck. A tank-equipped semi- 1516, Cincinnati, OH 45202. trailer, trailer, or truck, conforming to [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as the requirements of this part. amended by T.D. ATF–249, 52 FR 5961, Feb. This chapter. Chapter I, Title 27, Code 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996; of Federal Regulations. T.D. ATF–435, 66 FR 5474, Jan. 19, 2001; T.D. U.S.C. The United States Code. ATF–476, 67 FR 17938, Apr. 12, 2002; T.D. TTB– 44, 71 FR 16934, Apr. 4, 2006] (Approved by the Office of Management and Budget under control number 1512–0336) § 20.22 Alternate methods or proce- [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR dures; and emergency variations 20099, May 14, 1985, as amended by ATF–332, from requirements. 57 FR 40849, Sept. 8, 1992; T.D. ATF–435, 66 FR (a) Alternate methods or procedures—(1) 5473, Jan. 19, 2001; T.D. TTB–44, 71 FR 16934, Application. A permittee, after receiv- Apr. 4, 2006] ing approval from the appropriate TTB officer, may use an alternate method Subpart C—Administrative or procedure (including alternate con- Provisions struction or equipment) in lieu of a method or procedure prescribed by this AUTHORITIES part. A permittee wishing to use an al- § 20.20 Delegations of the Adminis- ternate method or procedure may trator. apply to the appropriate TTB officer. The permittee shall describe the pro- The regulatory authorities of the Ad- posed alternate method or procedure ministrator contained in this part are and shall set forth the reasons for its delegated to appropriate TTB officers. use. These TTB officers are specified in (2) Approval by appropriate TTB offi- TTB Order 1135.20, Delegation of the cer. The appropriate TTB officer may Administrator’s Authorities in 27 CFR approve the use of an alternate method Part 20, Distribution and use of Dena- or procedure if: tured Alcohol and Rum. You may ob- (i) The applicant shows good cause tain a copy of this order by accessing for its use; the TTB Web site (http://www.ttb.gov) or (ii) It is consistent with the purpose by mailing a request to the Alcohol and effect of the procedure prescribed and Tobacco Tax and Trade Bureau, by this part, and provides equal secu- National Revenue Center, 550 Main rity to the revenue; Street, Room 1516, Cincinnati, OH (iii) It is not contrary to law; and 45202. (iv) It will not cause an increase in [T.D. TTB–44, 71 FR 16934, Apr. 4, 2006] cost to the Government and will not hinder the effective administration of § 20.21 Forms prescribed. this part. (a) The appropriate TTB officer is au- (3) Conditions of approval. A permittee thorized to prescribe all forms required may not employ an alternate method by this part, including applications, or procedure until the appropriate TTB notices, claims, reports, and records. officer has approved its use. The per- All of the information called for in mittee shall, during the terms of the each form shall be furnished as indi- authorization of an alternate method

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or procedure, comply with terms of the tion of this part is hindered by the ap- approved application. proval. (b) Emergency variations from require- (Approved by the Office of Management and ments—(1) Application. When an emer- Budget under control number 1512–0336) gency exists, a permittee may apply to (Act of August 16, 1954, Ch. 736, 68A Stat. 917 the appropriate TTB officer for a vari- (26 U.S.C. 7805); sec. 201, Pub. L. 85–859, 72 ation from the requirements of this Stat. 1395, as amended (26 U.S.C. 5552)) part relating to construction, equip- [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as ment, and methods of operation. The amended by T.D. ATF–235, 66 FR 5474, Jan. permittee shall describe the proposed 19, 2001; T.D. ATF–476, 67 FR 17938, Apr. 12, variation and set forth the reasons for 2002] using it. (2) Approval by appropriate TTB offi- § 20.23 Approval of formulas and statements of process. cer. The appropriate TTB officer may approve an emergency variation from The appropriate TTB officer is au- requirements if: thorized to approve all formulas for articles and statements of process relat- (i) An emergency exists; ing to recovery operations or other ac- (ii) The variation from the require- tivities required to be submitted on ments is necessary; Form 5150.19. (iii) It will afford the same security and protection to the revenue as in- § 20.24 Allowance of claims. tended by the specific regulations; The appropriate TTB officer is au- (iv) It will not hinder the effective thorized to allow claims for losses of administration of this part; and specially denatured alcohol or spe- (v) It is not contrary to law. cially denatured rum. (3) Conditions of approval. A permittee may not employ an emergency vari- § 20.25 Permits. ation from the requirements until the The appropriate TTB officer must appropriate TTB officer has approved issue permits for the United States or its use. Approval of variations from re- a Governmental agency as provided in quirements are conditioned upon com- § 20.241 and industrial alcohol user per- pliance with the conditions and limita- mits, Form 5150.9, required under this tions set forth in the approval. part. (4) Automatic termination of approval. [T.D. ATF–435, 66 FR 5474, Jan. 19, 2001] If the permittee fails to comply in good faith with the procedures, conditions § 20.27 Right of entry and examina- or limitations set forth in the ap- tion. proval, authority for the variation An appropriate TTB officer may from requirements is automatically enter, during business hours or at any terminated and the permittee is re- time operations are being conducted, quired to comply with prescribed re- any premises on which operations gov- quirements of regulations from which erned by this part are conducted to in- those variations were authorized. spect the records and reports required by this part to be kept on those prem- (c) Withdrawal of approval. The appro- ises. An appropriate TTB officer may priate TTB officer may withdraw ap- also inspect and take samples of dis- proval for an alternate method or pro- tilled spirits, denatured alcohol, spe- cedure, may withdraw approval for an cially denatured rum or articles (in- emergency variation from require- cluding any substance for use in the ments, approved under paragraph (a) or manufacture of denatured alcohol, spe- (b) of this section, if the appropriate cially denatured rum or articles) to TTB officer finds that the revenue is which those records or reports relate. jeopardized or the effective administra- § 20.28 Detention of containers. (a) Summary detention. An appropriate TTB officer may detain any container containing, or supposed to contain,

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spirits (including denatured spirits and from denatured alcohol or specially de- articles), when the appropriate TTB of- natured rum shall immediately destroy ficer believes those spirits, denatured or obliterate the marks, brands, and la- spirits, or articles were produced, with- bels required by this chapter to be drawn, sold, transported, or used in placed on packages containing those violation of law or this part. The ap- materials. propriate TTB officer shall hold the (b) A person may not destroy or ob- container at a safe place until it is de- literate the marks, brands or labels termined if the detained property is until the package or drum has been liable by law to forfeiture. emptied. (b) Limitations. Summary detention may not exceed 72 hours without proc- (Sec. 201, Pub. L. 85–859, 72 Stat. 1358, as ess of law or intervention of the appro- amended (26 U.S.C. 5206)) priate TTB officer. The person pos- DOCUMENT REQUIREMENTS sessing the container immediately before its detention may prepare a waiver § 20.36 Execution under penalties of of the 72 hours limitation to have the perjury. container kept on his or her premises during detention. (a) When any form or document prescribed by this part is required to be (Sec. 201, Pub. L. 85–859, Stat. 1375, as amend- executed under penalties of perjury, ed (26 U.S.C. 5311)) the dealer or user or other authorized person shall: LIABILITY FOR TAX (1) Insert the declaration ‘‘I declare § 20.31 Applicable laws and regula- under the penalties of perjury that I tions; persons liable for tax. have examined this llll (insert the (a) All laws and regulations regard- type of document such as claim, appli- ing alcohol or rum that is not dena- cation, statement, report, certificate), tured, including those requiring pay- including all supporting documents, ment of the distilled spirits tax, apply and to the best of my knowledge and to completely denatured alcohol, spe- belief, it is true, correct, and com- cially denatured alcohol, specially de- plete’’; and natured rum, or articles produced, (2) Sign the document. withdrawn, sold, transported, or used (b) When the required document al- in violation of laws or regulations per- ready bears a perjury declaration, the taining to those substances. dealer or user or other authorized per- (b) Any person who produces, with- son shall sign the document. draws, sells, transports, or uses com- (26 U.S.C. 6065) pletely denatured alcohol, specially denatured alcohol, specially denatured [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as rum, or articles in violation of laws or amended by T.D. ATF–332, 57 FR 40849, Sept. regulations shall be required to pay the 8, 1992] distilled spirits tax on those sub- § 20.37 Filing of qualifying documents. stances. All documents returned to a per- (Sec. 201, Pub. L. 85–859, 72 Stat. 1314, as mittee or other person as evidence of amended (26 U.S.C. 5001)) compliance with requirements of this MARKS AND BRANDS part, or as authorization, shall except as otherwise provided, be kept readily § 20.33 Time of destruction of marks available for inspection by an appro- and brands. priate TTB officer during business (a) Any person who empties a pack- hours. age containing denatured alcohol, specially denatured rum, or articles made Subpart Ca [Reserved]

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Subpart D—Qualification of regulation shall not be required to re- Dealers and Users qualify under this part. [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR APPLICATION FOR PERMIT, FORM 5150.22 20099, May 14, 1985]

§ 20.41 Application for industrial alco- § 20.42 Data for application, Form hol user permit. 5150.22. (a) Dealers. A person who desires to (a) Unless waived under § 20.43, each withdraw and deal in specially dena- application on Form 5150.22 shall in- tured spirits shall, before commencing clude as applicable, the following infor- business, file an application on Form mation: 5150.22 for, and obtain a permit, Form (1) Serial number and purpose for which filed. 5150.9. (2) Name and principal business ad- (b) Users. A person who desires to dress. withdraw and use or recover specially (3) Based on the bona fide require- denatured spirits shall, before com- ments of the applicant, the estimated mencing business, file an application quantity of all formulations of spe- on Form 5150.22 for, and obtain a per- cially denatured spirits, in gallons, mit, Form 5150.9. The provisions of this which will be procured during a 12- paragraph also apply to persons desir- month period. ing to recover denatured spirits from (4) Location, or locations where spe- articles. cially denatured spirits will be sold or (c) Filing. All applications and nec- used if different from the business ad- essary supporting documents, as re- dress. quired by this subpart, shall be filed (5) Statement that specially dena- with the appropriate TTB officer. All tured spirits will be stored in accord- data, written statements, certifi- ance with the requirements of this cations, affidavits, and other docu- part. ments submitted in support of the ap- (6) For user applications, statement plication are considered a part of the as to the intended use (e.g., cosmetics, external medicines, solvents, fuels, application. mouthwashes, laboratory uses, inks, (1) Applications filed as provided in etc.) to be made of the specially dena- this section, shall be accompanied by tured spirits, and whether recovery, evidence establishing the authority of restoration, and redenaturation proc- the officer or other person to execute esses will be used. the application. (7) Statement as to the type of busi- (2) A State, political subdivision ness organization and of the persons in- thereof, or the District of Columbia, terested in the business, supported by may specify in the application that it the items of information listed in desires a single permit authorizing the § 20.45. withdrawal and use of specially dena- (8) Listing of the principal equipment tured spirits in a number of institu- to be used in recovery processes, in- tions under it control. In this instance, cluding processing tanks, storage the application, Form 5150.22, or an at- tanks, and equipment for recovery, res- tachment, shall clearly show the meth- toration, and redenaturation of dena- od of distributing and accounting for tured spirits (including the serial num- the specially denatured spirits to be ber, kind, capacity, names and address- withdrawn. es of manufacturer and owner of distilling apparatus along with intended (d) Exceptions. (1) The proprietor of a use). distilled spirits plant qualified under (9) List of trade names under which part 19 of this chapter, who sells spe- the applicant will conduct operations, cially denatured spirits stored at the and the offices where these names are plant premises is not required to qual- registered. ify as a dealer under this part. (10) Listing of the titles of offices, (2) A permittee who was previously the incumbents of which are respon- qualified on the effective date of this sible for the specially denatured spirits

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activities of the business and are au- fying the waiver no longer exist. In thorized by the articles of incorpora- this case, the permittee will furnish tion, the bylaws, or the board of direc- the information in respect to the pre- tors to act and sign on behalf of the ap- viously waived items, as provided in plicant. § 20.56(a)(2). (11) Other information and state- [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as ments as the appropriate TTB officer amended at T.D. ATF–476, 67 FR 17938, Apr. may require to establish that the appli- 12, 2002] cant is entitled to the permit. In the case of a corporation or other legal en- § 20.44 Disapproval of application. tity, the appropriate TTB officer may The appropriate TTB officer may, in require information which establishes accordance with part 71 of this chapter, that the officers, directors and prin- disapprove an application for a permit cipal stockholders whose names are re- to withdraw and deal or use denatured quired to be furnished under § 20.45 spirits, if on examination of the appli- (a)(2) and (c) have not violated or con- cation (or inquiry), the appropriate spired to violate any law of the United TTB officer has reason to believe that: States relating to intoxicating liquor or have been convicted of any offense (a) The applicant is not authorized by under Title 26, U.S.C., punishable as a law and regulations to withdraw and felony or of any conspiracy to commit deal in or use specially denatured spir- such offense. its; (b) If any of the information required (b) The applicant (including, in the by paragraphs (a)(4) through (a)(10) and case of a corporation, any officer, di- any information which may be required rector, or principal stockholder, or, in under paragraph (a)(11) of this section the case of a partnership, a partner) is, is on file with any appropriate TTB of- by reason of their business experience, ficer, the applicant may incorporate financial standing, or trade connec- this information by reference by stat- tions, not likely to maintain oper- ing that the information is made a part ations in compliance with 26 U.S.C. of the application. Chapter 51, or regulations issued under this part; § 20.43 Exceptions to application re- (c) The applicant has failed to dis- quirements. close any material information re- (a) The appropriate TTB officer may quired, or has made any false state- waive detailed application and sup- ment as to any material fact, in con- porting data requirements, other than nection with the application; or the requirements of paragraphs (a)(1) (d) The premises at which the appli- through (a)(6) and (a)(9) of § 20.42, and cant proposes to conduct the business paragraph (a)(8) of that section as it re- are not adequate to protect the rev- lates to recovery, restoration and re- enue. distillation, in the case of— (1) All applications, Form 5150.22, § 20.45 Organizational documents. filed by States or political subdivisions The supporting information required thereof or the District of Columbia, by § 20.42(a)(7) includes, as applicable: and (a) Corporate documents. (1) Certified (2) Applications, Form 5150.22, filed true copy of the certificate of incorpo- by applicants, where the appropriate ration, or certified true copy of certifi- TTB officer has determined that the cate authorizing the corporation to op- waiver of such requirements does not erate in the State where the premises pose any jeopardy to the revenue or a are located (if other than that in which hindrance of the effective administra- incorporated); tion of this part. (2) Certified list of names and ad- (b) The waiver provided for in this dresses of officers and directors, along section will terminate for a permittee, with a statement designating which other than States or political subdivi- corporate offices, if applicable, are di- sions thereof or the District of Colum- rectly responsible for the specially de- bia, when the appropriate TTB officer natured spirits portion of the business; determines that the conditions justi- and

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(3) Statement showing the number of (b) An applicant need not have for- shares of each class of stock or other mulas and statements of processes, ap- evidence of ownership, authorized and proved by the appropriate TTB officer, outstanding, the par value, and the prior to the issuance of a permit by the voting rights of the respective owners appropriate TTB officer. or holders. (c) A permittee shall not use spe- (b) Articles of partnership. True copy cially denatured spirits in the manu- of the articles of partnership or asso- facture or production of any article un- ciation, if any, or certificate of part- less the appropriate TTB officer has ap- nership or association where required proved the formula on Form 5150.19 or to be filed by any State, county, or mu- the article is covered by an approved nicipality. general-use formula. (c) Statement of interest. (1) Names and § 20.49 Duration of permits. addresses of persons owning 10% or more of each of the classes of stock in Permits to withdraw and deal in or the corporation, or legal entity, and use specially denatured spirits are con- the nature and amount of the stock- tinuing unless automatically terminated by the terms thereof, suspended holding or other interest of each, or revoked as provided in § 20.51, or vol- whether such interest appears in the untarily surrendered. The provisions of name of the interested party or in the § 20.57 are considered part of the terms name of another for him or her. If a and conditions of all permits. corporation is wholly owned or con- trolled by another corporation, persons § 20.50 Correction of permits. owning 10% or more of each of the If an error on a permit is discovered, classes of stock of the parent corpora- the permittee shall immediately return tion are considered to be the persons the permit to the appropriate TTB offi- interested in the business of the sub- cer for correction. sidiary, and the names and addresses of such persons must be submitted to the [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR appropriate TTB officer if specifically 20099, May 14, 1985] requested. § 20.51 Suspension or revocation of (2) In the case of an individual owner permits. or partnership, name and address of every person interested in the business, The appropriate TTB officer may in- whether such interest appears in the stitute proceedings under part 71 of name of the interested party or in the this chapter to suspend or revoke a name of another for the interested per- permit whenever the appropriate TTB son. officer has reason to believe that the permittee: [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as (a) Has not in good faith complied amended by T.D. ATF–435, 66 FR 5474, Jan. with the provisions of 26 U.S.C. Chap- 19, 2001] ter 51, or regulations issued under that chapter; INDUSTRIAL ALCOHOL USER PERMIT, (b) Has violated the conditions of FORM 5150.9 that permit; (c) Has made any false statements as § 20.48 Conditions of permits. to any material fact in the application (a) Permits to withdraw and deal in for the permit; or use specially denatured spirits will (d) Has failed to disclose any mate- designate the acts which are permitted, rial information required to be fur- and include any limitations imposed on nished; the performance of these acts. All of (e) Has violated or conspired to vio- the provisions of this part relating to late any law of the United States relat- the use, recovery, restoration or redis- ing to intoxicating liquor or has been tillation of denatured spirits or articles convicted of an offense under Title 26, are considered to be included in the U.S.C., punishable as a felony or of any provisions and conditions of the per- conspiracy to commit such offense; mit, the same as if set out in the per- (f) Is, by reason of its operations, no mit. longer warranted in procuring and

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dealing in or using specially denatured proval is the permittee’s first state- spirits authorized by the permit; or ment of process covering recovery op- (g) Has not engaged in any of the operations. erations authorized by the permit for a (2) Changes affecting waivers. When period of more than 2 years. any waiver under § 20.43 is terminated by a change to the application, the per- § 20.52 Rules of practice in permit proceedings. mittee shall include the current information as to the item previously The regulations of part 71 of this waived with the written notice re- chapter apply to the procedure and quired in paragraph (a)(1) of this sec- practice in connection with the dis- tion. approval of any application for a per- (3) Changes affecting permit. When the mit and in connection with suspension terms of a permit are affected by a or revocation of a permit. change, the written notice required by § 20.53 Powers of attorney. paragraph (a)(1) of this section (except as otherwise provided in this subpart) An applicant or permittee shall exe- will serve as an application to amend cute and file a Form 1534, in accord- the permit. ance with the instructions on the form, for each person authorized to sign or to (4) Form of notice. A written notice to act on behalf of the applicant or per- amend an application on Form 5150.22 mittee. Form 1534 is not required for a shall— person whose authority is furnished in (i) Identify the permittee; accordance with § 20.42(a)(10). (ii) Contain the permit identification number; § 20.54 Photocopying of permits. (iii) Explain the nature of the change A permittee may make photocopies and contain any required supporting of its permit exclusively for the pur- documents; pose of furnishing proof of authoriza- (iv) Identify the serial number of the tion to withdraw specially denatured applicable application, Form 5150.22; spirits from a distilled spirits plant and and other persons authorized under this (v) Be consecutively numbered and part to deal in specially denatured spir- signed by the permittee or any person its. authorized to sign on behalf of the permittee. § 20.55 Posting of permits. (b) Amended application. The appro- Permits issued under this part shall priate TTB officer may require a per- be kept posted and available for inspec- mittee to file an amended application tion on the permit premises. on Form 5150.22 when the number of changes to the previous application are CHANGES AFTER ORIGINAL determined to be excessive, or when a QUALIFICATION permittee has not timely filed the writ- § 20.56 Changes affecting applications ten notice prescribed in paragraph and permits. (a)(1) of this section. If items on the (a) General—(1) Changes affecting ap- amended application remain un- plication. When there is a change relat- changed, they will be marked ‘‘No ing to any of the information con- change since Form 5150.22, Serial No. tained in, or considered a part of the lllll.’’ application on Form 5150.22 for a per- (c) Changes in officers, directors and mit, the permittee shall, within 30 days stockholders—(1) Officers. In the case of (except as otherwise provided in this a change in the officers listed under subpart) file a written notice with the the provisions of § 20.45(a)(2), the notice appropriate TTB officer to amend the required by paragraph (a)(1) of this sec- application. However, a change in the tion shall only apply (unless otherwise information required by § 20.42(a)(6) required, in writing, by the appropriate caused by approval of a new formula or TTB officer) to those offices, the in- statement of process shall not require cumbents of which are responsible for filing a new application unless the ap- the operations covered by this part.

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(2) Directors. In the case of a change (c) Proprietorships. In the event of a in the directors listed under the provi- change in proprietorship of a business sions of § 20.45(a)(2), the notice required of a permittee (as for instance, by rea- by paragraph (a)(1) of this section shall sons of incorporation, the withdrawal reflect the changes. or taking in of additional partners, or (3) Stockholders. In lieu of reporting succession by any person who is not a all changes, within 30 days, to the list fiduciary), the successor shall file writ- of stockholders furnished under the ten notice and make application on provisions of § 20.45(c)(1), a permittee Form 5150.22 for a new permit, under may, upon filing written notice to the the same conditions provided for in appropriate TTB officer and estab- paragraph (b) of this section. The suc- lishing a reporting date, file an annual cessor may adopt the formulas and notice of changes. The notice of statements of process of the prede- changes in stockholders does not apply cessor. if the sale or transfer of capital stock results in a change in ownership or (Approved by the Office of Management and control which is required to be re- Budget under control number 1512–0336) ported under § 20.57. [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR 20099, May 14, 1985] (Approved by the Office of Management and Budget under control number 1512–0336) § 20.58 Adoption of documents by a fiduciary. § 20.57 Automatic termination of permits. If the business covered by a permit (a) Permit not transferable. Permits issued under this part, is to be operated issued under this part are not transfer- by a fiduciary, the fiduciary may, in able. In the event of the lease, sale, or lieu of qualifying as a new proprietor, other transfer of such a permit. or of file a written notice, and any necessary the operations authorized by the per- supporting documents, to amend the mit, the permit shall, except as pro- predecessor’s permit. The fiduciary vided for in this section, automatically may adopt the formulas and state- terminate. ments of process of the predecessor. (b) Corporations. (1) If actual or legal The effective date of the qualifying control of any corporation holding a documents filed by a fiduciary shall co- permit issued under this part changes, incide with the effective date of the directly or indirectly, whether by rea- court order or the date specified there- son of a change in stock ownership or in for the fiduciary to assume control. control (in the permittee corporation If the fiduciary was not appointed by or any other corporation), by operation the court, the date the fiduciary as- of law, or in any other manner, the per- sumed control shall coincide with the mittee shall, within 10 days of the effective date of the filing of the quali- change, give written notice to the ap- fying documents. propriate TTB officer. Within 30 days [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as of the change, the permittee shall file amended at T.D. ATF–476, 67 FR 17939, Apr. an application for a new permit, Form 12, 2002] 5150.22 with supporting documents. If an application for a new permit is not § 20.59 Continuing partnerships. filed on Form 5150.22 within 30 days of (a) General. If, under the laws of a the change, the outstanding permit particular State, a partnership is not will automatically terminate. teminated on death or insolvency of a (2) If an application for a new permit partner, but continues until final set- is filed on Form 5150.22 within the 30- tlement of the partnership affairs is day period prescribed in paragraph completed, and the surviving partner (b)(1) of this section, the outstanding has the exclusive right to the control permit may remain in effect until final and possession of the partnership as- action is taken on the application. sets for the purpose of liquidation and When final action is taken, the out- settlement, the surviving partner may standing permit will automatically continue to withdraw and use specially terminate and shall be forwarded to denatured spirits under the prior quali- the appropriate TTB officer. fications of the partnership.

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(b) Requalification. If a surviving been filed and an amended permit partner acquires the business on com- issued by the appropriate TTB officer. pletion of the settlement of the part- (Approved by the Office of Management and nership, that partner shall qualify as a Budget under control number 1512–0336) new proprietor, from the date of acqui- sition, under the same conditions and T.D. ATF–199, 50 FR 9162, Mar. 8, 1985, as amended by T.D. ATF– 435, 66 FR 5474, Jan. limitations prescribed in § 20.57(c). 19, 2001; T.D. ATF–476, 67 FR 17939, Apr. 12, (c) More than one partner. The rule set 2002] forth in this section also applies if there is more than one surviving part- § 20.63 Adoption of formulas and state- ner. ments of process. [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR (a) The adoption by a successor (pro- 20099, May 14, 1985; T.D. ATF–476, 67 FR 17939, prietorship or fiduciary) of a prede- Apr. 12, 2002] cessor’s formulas and statements of process as provided in § 20.57(c), and § 20.60 Change in name of permittee. § 20.58, will be in the form of a certifi- When the only change is a change in cate submitted to the appropriate TTB the individual, firm, or corporation officer. name, a permittee may not conduct op- (b) The certificate will contain, as erations under the new name until a applicable, (1) a list of all approved for- written notice, accompanied by nec- mulas or statements of process in which specially denatured spirits are essary supporting documents, to amend used or recovered, (2) the formulas of the application and permit has been specially denatured spirits used, (3) the filed and an amended permit issued by TTB laboratory number of the sample the appropriate TTB officer. (if any), (4) the date of approval of (Approved by the Office of Management and Form 1479–A or serial number of Form Budget under control number 1512–0336) 5150.19, and (5) the applicable code number for the article or process. In [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR addition, the certificate will contain 20099, May 14, 1985] the name of the successor followed by § 20.61 Change in trade name. the phrase ‘‘Formula of llllllll (Name of predecessor) is hereby adopt- If there is to be a change in, or addi- ed.’’ tion of, a trade name, the permittee may not conduct operations under the (Approved by the Office of Management and new trade name until a written notice Budget under control number 1512–0336) has been filed and an amended permit [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR has been issued by the appropriate TTB 20099, May 14, 1985, as amended by ATF–332, officer. 57 FR 40849, Sept. 8, 1992] (Approved by the Office of Management and § 20.64 Return of permits. Budget under control number 1512–0336) Following the issuance of a new or [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as amended permit, the permittee shall amended at T.D. ATF–476, 67 FR 17939, Apr. (a) obtain and destroy all photocopies 12, 2002] of the previous permit from its sup- pliers, and (b) return the original of the § 20.62 Change in location. previous permit to the appropriate When there is to be a change in loca- TTB officer. tion, a permittee may not conduct operations at the new location until a REGISTRY OF STILLS written notice, accompanied by nec- § 20.66 Registry of stills. essary supporting information to amend the application and permit has The provisions of subpart C of part 29 of this chapter are applicable to stills or distilling apparatus located on the premises of a permittee used for distilling. As provided under § 29.55, the

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listing of a still in the permit applica- ered to comply with the requirements tion (Form 5150.22), and approval of the of this subpart. application, constitutes registration of (c) Any person who has approved for- the still. mulas or statements of process, Form 1479–A or Form 5150.19, which have been (Sec. 201, Pub. L. 85–859, 72 Stat. 1355, as amended (26 U.S.C. 5179)) discontinued or have become obsolete, may submit these formulas or state- [T.D. ATF–207, 50 FR 23682, June 5, 1985] ments of process to the appropriate TTB officer for cancellation. PERMANENT DISCONTINUANCE OF BUSINESS § 20.92 Samples. § 20.68 Notice of permanent dis- (a) For each formula submitted in ac- continuance. cordance with § 20.91 covering a toilet (a) Notice. When a permittee perma- preparation made with S.D.A. Formula nently discontinues business, a written No. 39–C and containing an essential notice shall be filed with the appro- oil, the manufacturer shall submit a priate TTB officer to cover the dis- 0.5-ounce sample of the essential oil continuance. The notice will be accom- used in the article. The appropriate panied by the permit, and contain— TTB officer may also require the man- (1) A request to cancel the permit, ufacturer to submit a sample of any in- (2) A statement of the disposition gredient which is not adequately de- made of all specially denatured spirits, scribed in the formula. as required in § 20.234, and (b) For each formula submitted in ac- (3) The date of discontinuance. cordance with § 20.91, the appropriate (b) Final Reports. The written notice TTB officer may require the manufac- required by this paragraph will also be turer to submit a 4-ounce sample of the accompanied by a report on Form finished article. 5150.18 covering the discontinuance and (c) The appropriate TTB officer may, marked ‘‘Final Report.’’ at any time, require submission of samples of: (Approved by the Office of Management and (1) Any ingredient used in the manu- Budget under control number 1512–0336) facture of an article, or; [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as (2) Any article. amended at T.D. ATF–476, 67 FR 17939, Apr. 12, 2002] [T.D. ATF– 199, 50 FR 1962, Mar. 6, 1985, as amended by T.D. ATF–435, 66 FR 5474, Jan. 19, 2001] Subpart E [Reserved] § 20.93 Changes to formulas. Subpart F—Formulas and (a) General. Except as provided in Statements of Process paragraph (b) of this section, any change of ingredients or quantities of § 20.91 Formula. ingredients listed in an appoved for- (a) Each article made with specially mula shall constitute a different arti- denatured spirits shall be made in ac- cle for which a different approved for- cordance with (1) an approved formula, mula is required by § 20.91. Form 5150.19, or (2) an approved gen- (b) Exceptions. A different approved eral-use formula prescribed in this sub- formula is not required for the fol- part, approved by the appropriate TTB lowing— officer as an alternate method, or pub- (1) A change from an ingredient iden- lished as a TTB ruling in the TTB Bul- tified in the formula by a brand name letin. The manufacturer shall file to the same quantity of a chemically Form 5150.19, along with the sample(s) identical ingredient acquired under a required by § 20.92, and obtain an ap- different brand name, or proved formula before manufacturing (2) A change of an ingredient which is the article. a coloring material. (b) An article made in accordance with a formula on Form 1479–A ap- § 20.94 Statement of process. proved under previous regulations in (a) Manufacturers shall submit a part 211 of this chapter will be consid- statement of process on Form 5150.19,

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in accordance with paragraph (b) of § 20.95 Developmental samples of arti- this section, covering the following ac- cles. tivities: (a) A user may use limited quantities (1) If specially denatured spirits are of specially denatured spirits in the used for laboratory or mechanical pur- manufacture of samples of articles for poses, other than use of S.D.A. For- submission in accordance with § 20.92. mula No. 3–A, 3–C, or 30 for laboratory (b) A user may prepare develop- or mechanical purposes not in the de- mental samples of articles, of limited velopment of a product; sizes and quantities, for one-time ship- (2) If specially denatured spirits are ment to prospective customers. The used in a manufacturing process in user shall maintain records showing— which none of the specially denatured (1) The types of product samples pre- spirits remains in the finished product; pared, (3) If specially denatured spirits, (2) The size and number of samples completely denatured alcohol, or arti- sent, on a one-time basis, to each pro- cles are used in a manufacturing proc- spective customer, and ess and are to be recovered; or (3) The names and addresses of the (4) If recovered denatured spirits are prospective customers. to be redenatured. (b) The manufacturer shall submit a (Approved by the Office of Management and separate Form 5150.19 for each activity Budget under control number 1512–0337) described in paragraph (a) of this sec- [T.D. ATF– 199, 50 FR 1962, Mar. 6, 1985, as tion describing the process completely. amended by T.D. ATF–435, 66 FR 5474, Jan. (1) If specially denatured spirits are 19, 2001] used for laboratory or mechanical purposes, other than use of S.D.A. For- APPROVAL POLICIES mula No. 3–A, 3–C, or 30 for laboratory or mechanical purposes not in the de- § 20.100 General. velopment of a product, the Form (a) In addiition to the limitations in 5150.19 shall identify the formula num- this part, and if necessary to protect ber of specially denatured spirits, a de- the revenue or public safety, the appro- scription of the laboratory or mechan- priate TTB officer, when approving ical use, and the approximate annual Form 5150.19 may: quantity to be used. (1) Specify on the Form 5150.19 the (2) If the Form 5150.19 is submitted size of containers in which any article covering activities described in para- may be sold; graphs (a)(2), (a)(3), or (a)(4) of this sec- (2) Specify the maximum quantity tion, the Form 5150.19 shall also con- that may be sold to any person at one tain the following information: time; or (i) Flow diagrams shall be submitted (3) Restrict the sale of an article to a with the Form 5150.19 clearly depicting specific class of vendee and for a spe- the equipment in its relative operating cific use. sequence, with essential connecting (b) Approval by the appropriate TTB pipelines and valves. All major equip- officer of formulas, samples, or statement shall be identified as to its use. ments of process means only that they The direction of flow through the pipe- meet the standards of the Alcohol and lines shall be indicated in the flow dia- Tobacco Tax and Trade Bureau. The gram. The flow diagram, shall be ac- approval does not require the issuance companied by a written description of of a permit under subpart D of this the flow of materials through the sys- part to withdraw and use specially de- tem. natured spirits in those formulas, arti- (ii) The statement of process shall cles, or statements of process. describe the chemical composition of the recovered spirits. The statement of [T.D. ATF– 199, 50 FR 1962, Mar. 6, 1985, as process shall be accompanied by a amended by T.D. ATF–435, 66 FR 5474, Jan. statement of the intended use of the re- 19, 2001] covered spirits.

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§ 20.101 Drafting formulas. sidual alcohol, not to exceed 0.5 per- (a) In preparing Form 5150.19, the cent of alcohol by volume, in the fin- manufacturer shall, for each ingredient ished product. containing ethyl alcohol, identify— GENERAL-USE FORMULAS (1) The percent alcohol by volume of the ingredient, if known, and § 20.111 General. (2) The supplier’s name and serial (a) An approved formula on Form number or approval date of the sup- 5150.19 is not required for an article plier’s approved formula covering the made in accordance with any approved manufacture of the ingredient. general-use formula prescribed by (b) In preparing Form 5150.19, manu- §§ 20.112 through 20.119, approved by the facturers may— appropriate TTB officer as an alternate (1) Identify ingredients by generic method, or published as a TTB ruling names rather than brand names, and (2) Identify quantities of ingredients in the TTB Bulletin. (b) Any interested party may peti- used in ranges rather than in finite tion TTB for approval of a new general- quantities. (c) If ranges of ingredients are used, use formula by submitting a letter de- as authorized by paragraph (b)(2) of scribing the proposed general-use for- this section— mula to the appropriate TTB officer. (1) The lower range shall not be zero (Approved by the Office of Management and for any ingredient, and Budget under control number 1512–0336) (2) The range for usage of specially denatured spirits shall not exceed ±5%. § 20.112 Special industrial solvents general-use formula. § 20.102 Bay rum, alcoholado, or (a) A special industrial solvent is any alcoholado-type toilet waters. article made with any other ingredi- All bay rum, alcoholado, or ents combined with the ingredients in alcoholado-type toilet waters made the minimum ratios prescribed in this with specially denatured alcohol shall section. A special industrial solvent contain: shall be made with S.D.A. Formula No. (a) 1.10 grains of benzyldiethyl (2:6- 1, 3A, or 3C containing, for every 100 xylylcarbamoyl methyl) ammonium parts (by volume) of alcohol: benzoate (Bitrex (THS–839)) in each (1) No less than 1 part (by volume) of gallon of finished product in addition one or any combination of the fol- to any of this material used as a dena- lowing: methyl isobutyl ketone, meth- turant in the specially denatured alco- yl n-butyl ketone, nitropropane (mixed hol, or isomers), or ethylene glycol monoethyl (b) 32 grains of tartar emetic in each ether, and gallon of finished product, or (2) No less than 5 parts (by volume) of (c) 0.5 avoirdupois ounce of sucrose one or any combination of the fol- octaacetate in each gallon of finished lowing: ethyl acetate (equivalent to product. 85% ester content, as defined in § 21.106 of this chapter), isopropyl alcohol, or § 20.103 Articles made with S.D.A. For- methyl alcohol. mula No. 39–C. (b) Special industrial solvents are in- Each article made with S.D.A. For- tended for use as ingredients or sol- mula No. 39–C shall contain in each vents in manufacturing processes and gallon of finished product not less than shall not be distributed through retail 2 fluid ounces of perfume material (es- channels for sale as consumer commod- sential oils, isolates, aromatic chemi- ities for personal or household use. cals, etc.) satisfactory to the appro- When a special industrial solvent is priate TTB officer. used in the manufacture of an article for sale, sufficient ingredients shall be § 20.104 Residual alcohol in spirit vin- added to definitely change the com- egar. position and character of the special Commercial strength (40 grain) vin- industrial solvent. A special industrial egar made from specially denatured al- solvent shall not be reprocessed into cohol may contain trace amounts of re- another solvent intended for sale if the

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other solvent would contain more than mula No. 1, 3–A, 3–C, 13–A, 23–A, 30, 32, 50% alcohol by volume. or 33 which— (c) If this article contains more than (a) Contains sufficient pigments, 4% by weight of methyl alcohol, the dyes, or dyestuffs, label shall have a skull and crossed (b) May contain other ingredients, bones symbol and the following words: and ‘‘danger,’’ ‘‘poison,’’ ‘‘vapor harmful,’’ (c) Is packaged, labeled and sold or ‘‘May be fatal or cause blindness if used as an ink. swallowed,’’ and ‘‘Cannot be made non- poisonous.’’ § 20.116 Low alcohol general-use formula. § 20.113 Proprietary solvents general- Low alcohol general-use formula is a use formula. finished article containing not more (a) A proprietary solvent is any arti- than 5% alcohol by volume. cle made with any other ingredients combined with the ingredients in the § 20.117 Reagent alcohol general-use minimum ratios prescribed in this sec- formula. tion. A proprietary solvent shall be (a) Reagent alcohol is an article (1) made with S.D.A. Formula No. 1 or 3– made in accordance with paragraph (b) A containing, for every 100 parts (by of this section, (2) packaged and la- volume) of alcohol: beled in accordance with paragraph (c) (1) No less than 1 part (by volume) of of this section, and (3) distributed in one or any combination of the fol- accordance with paragraph (d) of this lowing: gasoline, unleaded gasoline, section. heptane, or rubber hydrocarbon sol- (b) Reagent alcohol shall be made vent, and with 95 parts (by volume) of S.D.A. (2) No less than 3 parts (by volume) of Formula No. 3–A, and 5 part (by vol- one or any combination of the fol- ume) of isopropyl alcohol. Water may lowing: ethyl acetate (equivalent to be added at the time of manufacture. 85% ester content, as defined in § 21.106 Reagent alcohol shall not contain any of this chapter), methyl isobutyl ke- ingredient other than those named in tone, methyl n-butyl ketone, tert-butyl this paragraph. alcohol, sec-butyl alcohol, nitropropane (c)(1) Except as provided in paragraph (mixed isomers), ethylene glycol (d) of this section, reagent alcohol monoethyl ether, or toluene. shall be packaged by the manufacturer (b) If this article contains more than in containers not exceeding four liters. 4% by weight of methyl alcohol, the Each container shall have affixed to it label shall have a skull and crossed a label with the following words, as bones symbol and the following words: conspicuously as any other words on ‘‘danger,’’ ‘‘poison,’’ ‘‘vapor harmful,’’ the labels: ‘‘Reagent Alcohol, Specially ‘‘May be fatal or cause blindness if Denatured Alcohol Formula 3–A–95 swallowed,’’ and ‘‘Cannot be made non- parts by vol., and Isopropyl Alcohol—5 poisonous.’’ parts by vol.’’ (2) Because this article contains more § 20.114 Tobacco flavor general-use than 4% by weight of methyl alcohol, formula. the label shall have a skull and cross- Tobacco flavor general-use formula is bones symbol and the following words: any finished article made with S.D.A. ‘‘danger,’’ ‘‘poison,’’ ‘‘vapor harmful,’’ Formula No. 4 or S.D.R. Formula No. 4 ‘‘May be fatal or cause blindness if which— swallowed,’’ and ‘‘Cannot be made non- (a) Contains sufficient flavors, poisonous (b) May contain other ingredients, (3) If water is added at the time of and manufacture, the label shall reflect the (c) Is packaged, labeled, and sold or composition of the diluted product. If used as a tobacco flavor only. the addition of water reduces the methyl alcohol concentration to less than § 20.115 Ink general-use formula. 4% by weight, the requirements of Ink general-use formula is any fin- paragraph (c)(2) of this section shall ished article made with S.D.A. For- not apply.

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(4) A back label shall be attached Sucrose octa-acetate ...... 0.5 av.oz. showing the word ‘‘ANTIDOTE’’, fol- Water ...... q.s. 1 gal- lowed by suitable directions for an lon. antidote. (If desired, ordorous, medicinal and/or (d)(1) Reagent alcohol may be distrib- colorative ingredients may be added.) uted in containers not exceeding 4 li- Formula B ters exclusively to laboratories or per- S.D.A. formula no. 23–H ...... 103.3 fl. oz. sons who require reagent alcohol for Benzyldiethyl (2: 6- 0.88 grains. scientific use. xylylcarbamoyl methyl) ammonium benzoate (Bitrex (2) Reagent alcohol may be distrib- (THS–839)). uted in bulk containers to proprietors Water ...... q.s. 1 gal- of bona fide laboratory supply houses lon. for packaging and resale, and to any (If desired, odorous, medicinal and/or other person who was qualified to re- colorative ingredients may be added.) ceive bulk shipments of reagent alcohol on the effective date of this part. § 20.119 Toilet preparations containing Reagent alcohol may also be distrib- not less than 10% essential oils gen- uted in bulk containers to any person eral-use formula. who has received approval of a letter- This general-use formula shall con- head application containing the fol- sist of an article containing not less lowing: than 10% essential oils by volume made (i) The applicant’s name, address, and with a formula of S.D.A. authorized for permit number, if any; that article on the following list: (ii) A description of the security measures which will be taken to seg- Prod- uct Formula author- regate reagent alcohol from denatured Article code ized spirits or other alcohol which may be No. on the same premises; Bath preparations ...... 142 1, 3–A, 3–B, 3–C, (iii) A statement that labels required 23–A, 30, 36, by paragraph (c) of this section will be 38–B, 39–B, affixed to containers of reagent alcohol 39–C, 40, 40– A, 40–B, 40–C. filled by the applicant; Colognes ...... 122 38–B, 39, 39–A, (iv) A statement that the applicant 39–B, 39–C, will allow appropriate TTB officers to 40, 40–A, 40– inspect the applicant’s premises; and B, 40–C. Deodorants (body) ...... 114 23–A, 38–B, 39– (v) A statement that the applicant B, 39–C, 40, will comply with the requirements of 40–A, 40–B, § 20.133. 40–C. Hair and scalp preparations ...... 111 3–B, 23–A, 23–F, (Approved by the Office of Management and 23–H, 37, 38– Budget under control number 1512–0336) B, 39, 39–A, 39–B, 39–C, [T.D. ATF– 199, 50 FR 1962, Mar. 6, 1985, as 39–D, 40, 40– amended by T.D. ATF–435, 66 FR 5474, Jan. A, 40–B, 40–C. 19, 2001] Lotions and creams (body, face, 113 23–A, 23–H, 31– and hand). A, 37, 38–B, § 20.118 Rubbing alcohol general-use 39, 39–B, 39– C, 40, 40–A, formula. 40–B, 40–C. (a) Rubbing alcohol is an article Perfume materials (processing) .. 121 38–B, 39, 39–B, made with S.D.A. Formula No. 23–H (1) 39–C, 40, 40– A, 40–B, 40–C. containing 70% ethyl alcohol by vol- Perfumes and perfume tinctures 121 38–B, 39, 39–B, ume (2) made in accordance with one of 39–C, 40, 40– the two formulas prescribed in para- A, 40–B, 40–C. Shampoos ...... 141 1, 3–A, 3–B, 3–C, graph (b) of this section, and (3) labeled 23–A, 27–B, in accordance with § 20.134(e) of this 31–A, 36, 38– part. B, 39–A, 39–B, (b) Either of the following two for- 40, 40–A, 40– B, 40–C. mulas is approved for manufacturing Soaps, toilet ...... 142 1, 3–A, 3–C, 23– rubbing alcohol: A, 30, 36, 38– Formula A B, 39–B, 39–C, 40, 40–A, 40– S.D.A. formula no. 23–H ...... 103.3 fl. oz. B, 40–C. 521

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Prod- (c) Trafficking in articles. The appro- uct Formula author- priate TTB officer may impose the re- Article code ized No. quirements of § 20.133 on any person who reprocesses, rebottles, or repack- Toilet waters ...... 122 38–B, 39, 39–A, 39–B, 39–C, ages articles, deals in articles, or re- 40, 40–A, 40– ceives articles in containers exceeding B, 40–C. one gallon.

§ 20.133 Registration of persons traf- [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR ficking in articles. 20099, May 14, 1985] (a) Upon written notice from the ap- Subpart G—Requirements Relating propriate TTB officer, any person who reprocesses, rebottles, or repackages to Articles articles, deals in articles, or receives articles in containers exceeding one § 20.131 Scope of subpart. gallon may be required to submit any This subpart prescribes requirements of the following: relating to articles which may affect (1) Nature of activities to be con- persons who are not required to obtain ducted; a permit under this part. These re- (2) Name and address of supplier; quirements, described in general terms (3) Size and type of containers in § 20.132, are imposed by law. Criminal which articles will be received and, if penalties imposed for violating these applicable, rebottled or repackaged; requirements are described in § 20.137. (4) Maximum quantity of each article In this subpart, the term ‘‘article’’ to be obtained during any calendar means any substance or preparation in month; the manufacture of which denatured (5) Description of the reprocessing spirits are used, including the product operation; obtained by further manufacture or by (6) Samples of the reprocessed arti- combination with other materials, if cle; the article subjected to further manu- (7) Labels and advertising materials; facture or combination contained dena- and, tured spirits. (8) Names and addresses of recipients of articles and quantities received; § 20.132 General requirements. (b) The appropriate TTB officer shall (a) Internal medicinal preparations and prohibit any of the activities described flavoring extracts—(1) Manufacture. No in paragraph (a) of this section if the person shall use denatured spirits in activities pose a jeopardy to the rev- the manufacture of medicinal prepara- enue, or a burden in administering this tions or flavoring extracts for internal part. human use where any of the spirits re- (Approved by the Office of Management and main in the finished product. Budget under control number 1512–0336) (2) Sale. No person shall sell or offer for sale for internal human use any me- § 20.134 Labeling. dicinal preparations or flavoring ex- (a) General. Except as provided in tracts manufactured from denatured paragraph (b) or (c) of this section, distilled spirits where any of the spirits each article shall, before removal from remain in the finished product. the manufacturer’s premises, have a (3) Labeling and advertising. Labeling label affixed to its immediate con- and advertising of articles shall not tainer identifying (1) the name, trade imply that the article is intended for name or brand name of the article, and or suitable for internal human use. (2) the name and address (city and (b) Beverage use. No person shall sell State) of the manufacturer or dis- or offer for sale any article containing tributor of the article. denatured spirits for beverage pur- (b) Articles for external human use. Ex- poses. Labeling and advertising of arti- cept as provided in paragraph (c) of cles shall not imply that the article is this section, an article intended for ex- intended for or suitable for use as a ternal human use shall, before removal beverage. from the manufacturer’s premises,

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have a label affixed to its immediate label shall also have a name, trade container identifying the name, trade name or brand name which appears as name or brand name of the article. If conspicuously as the words ‘‘denatured the volume of the article in the con- alcohol.’’ tainer exceeds 8-fluid ounces, the label (e) Use of the words ‘‘rubbing alcohol.’’ shall also show the information re- If the words ‘‘rubbing alcohol’’ appear quired by paragraph (b) (1) or (2) of this on the label of an article, (1) the article section. shall be made in accordance with (1) If the article was packaged or bot- § 20.118 of this part, and (2) the label (i) tled by the person who manufactured shall have the words ‘‘rubbing alcohol’’ it, the label shall identify— in letters of the same color and size, (i) The manufacturer’s name and the (ii) shall identify the name and address address (city and State) of the actual (city and State) of the manufacturer or place or places where article was man- bottler, (iii) shall state the alcohol ufactured, or content as 70% by volume with no ref- (ii) The name and principal office ad- erence to the proof strength, and (iv) dress (city and State) of the manufac- shall have the warning ‘‘For external turer, and the permit number or num- use only. If taken internally, will cause bers of the place or places of manufac- serious gastric disturbances.’’ An alco- ture. However, in lieu of such permit hol rub made from any other material, number or numbers, the place or places such as isopropyl alcohol, shall not be where the manufacturing operation oc- labeled ‘‘Rubbing Alcohol’’ unless the curred may be indicated by a coding label informs the consumer that the system. Prior to using a coding system, preparation was not made with spe- the manufacturer shall send a notice cially denatured alcohol. explaining the coding system to the ap- (f) Distributor labeling. Distributors of propriate TTB officer, or an article may place minimal identi- (iii) The manufacturer’s permit num- fying information (name, address and a ber and the name and address (city and phrase such as ‘‘distributed by’’) on the State), of the person for whom the arti- label of that article (or on an addi- cle was packaged and bottled. tional label) without qualifying in any (2) If the article was packaged or bot- manner under this part; provided: tled by a person other than the manu- (1) The article is produced, packaged facturer of the article, the label shall and labeled as provided in this part; identify— and (i) The name and address (city and (2) The distributor does not produce, State) of the person by whom or for repackage or reprocess the article. whom the article was packaged or bot- (Approved by the Office of Management and tled, and Budget under control number 1512–0336) (ii) The permit number of the manufacturer or distributor. [T.D ATF–199, 50 FR 9162, Mar. 6, 1985, as (3) If a permit number is required to amended by ATF–332, 57 FR 40849, Sept. 8, 1992] be shown on the label, it may be shown utilizing a State code number, in ac- § 20.135 State code numbers. cordance with § 20.135. In showing the permit number on la- (c) Shipment of unlabeled articles. A manufacturer may, subject to the ap- bels as provided in § 20.134(b)(2)(ii), the proval of the appropriate TTB officer permittee who distributes the article and compliance with § 20.133, remove an may substitute the appropriate number unlabeled article from the manufactur- shown below for the State abbrevia- er’s premises, if the outer containers of tion. For example, permit number the article are labeled with the name, SDA-CONN-1234 may be shown on the trade name or brand name of the arti- labels as SDA–07–1234. The code num- cle and the names and addresses (city bers for the respective State are as fol- and State) of the manufacturer and the lows: consignee. 01—Alabama 05—California (d) Use of the words ‘‘denatured alco- 02—Alaska 06—Colorado hol.’’ If the words ‘‘denatured alcohol’’ 03—Arizona 07—Connecticut appear on the label of an article, the 04—Arkansas 08—Delaware

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09—DC 31—New Jersey (d) of this section). Manufacturers, re- 10—Florida 32—New Mexico processors, rebottlers, and repackagers 11—Georgia 33—New York who convey articles which are ‘‘con- 12—Hawaii 34—North Carolina sumer commodities’’ should refer to 16 13—Idaho 35—North Dakota 14—Illinois CFR Chapter I for packaging and label- 36—Ohio ing requirements. 15—Indiana 37—Oklahoma (d) Food and Drug Administration, De- 16—Iowa 38—Oregon 17—Kansas 39—Pennsylvania partment of Health and Human Services. 18—Kentucky 40—Rhode Island The Food and Drug Administration has 19—Louisiana 41—South Carolina promulgated regulations in 21 CFR 20—Maine 42—South Dakota Chapter I to administer the Fair Pack- 21—Maryland aging and Labeling Act (as it applies to 22—Massachusetts 43—Tennessee 23—Michigan 44—Texas drugs, medical devices, or cosmetics) 24—Minnesota 45—Utah and the Federal Food, Drug and Cos- 25—Mississippi 46—Vermont metic Act. Manufacturers, reproc- 26—Missouri 47—Virginia essors, rebottlers, and repackagers who 27—Montana 48—Washington convey articles which are drugs, med- 28—Nebraska 49—West Virginia ical devices, or cosmetics should refer 29—Nevada 50—Wisconsin to 21 CFR Chapter I for packaging and 30—New Hampshire 51—Wyoming labeling requirements.

§ 20.136 Labeling regulations of other § 20.137 Penalties. agencies. Violation of the requirements pre- (a) General. Other Federal agencies scribed in § 20.132 is punishable by a have promulgated regulations which fine of not more than $10,000 and/or im- may affect labeling of articles, as de- prisonment for not more than 5 years scribed in this section. for each offense. In addition, persons (b) Consumer Product Safety Commis- who manufacture (including reprocess), sion. The Consumer Product Safety sell, or transport articles in violation Commission has promulgated regula- of this part are liable for payment of a tions to administer the Federal Haz- tax on the articles at the rate imposed ardous Substances Act. The regula- by law on distilled spirits. tions in 16 CFR Chapter II require warning labels for products containing (Sec. 201, Pub. L. 85–859, 72 Stat. 1314, as certain specified substances. For exam- amended, 1402 (26 U.S.C. 5001, 5607)) ple, S.D.A. Formula Nos. 3–A and 30 require warning labels because they con- Subpart H—Sale and Use of tain methyl alcohol, a hazardous sub- Completely Denatured Alcohol stance at levels of 4% or more by weight. Manufacturers, reprocessors, § 20.141 General. rebottlers, and repackagers who convey (a) Each formula of completely dena- articles containing strong chemicals tured alcohol may be sold and used for should refer to 16 CFR Chapter II for any purpose, subject to the limitations warning label requirements. in the formula prescribed in part 21 of (c) Federal Trade Commission. The this chapter. For example, C.D.A. For- Federal Trade Commission (F.T.C.) has mula No. 18 or 19 may be used: promulgated regulations to administer (1) In the manufacture of definite the Fair Packaging and Labeling Act. chemical substances where the alcohol The regulations in 16 CFR Chapter I af- is changed into some other chemical fect packaging and labeling of ‘‘con- substance and does not appear in the sumer commodities.’’ The term ‘‘con- finished product; sumer commodities’’ generally means (2) In the arts and industries, includ- products intended for retail sale to an ing but not limited to the manufacture individual for personal or household of cleaning fluids, detergents, propri- use. The F.T.C. regulations do not etary antifreeze solutions, thinners, apply to drugs, medical devices, or cos- lacquers, and brake fluids; and metics for which the Food and Drug (3) For fuel, light, and power. Administration enforces the Fair Pack- (b) Completely denatured alcohol aging and Labeling Act (see paragraph may not be used in the manufacture of

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preparations or products for internal propriate seals furnished by the person human use or consumption where any filling the packages. of the alcohol or the denaturants used in that alcohol remain in the finished § 20.145 Encased containers. product. Completely denatured alcohol may (c) Persons distributing and using be packaged by distributors in (but not recovering for reuse) com- unlabeled containers which are completely denatured alcohol are not re- pletely encased in wood, fiberboard, or quired to obtain a permit or file a bond similar material so that the surface under this part. (including the opening) of the actual (d) Any person recovering completely container is not exposed. When com- denatured alcohol for reuse shall ob- pletely denatured spirits are packaged tain a permit under subpart D of this part if the recovered alcohol does not in unlabeled containers, the distributor contain all of the original denaturants shall apply the required marks or label of the completely denatured alcohol. to an exposed surface of the case. The (e) Containers of products manufac- case shall be so constructed that the tured with completely denatured alco- portion containing the marks will be hol (such as proprietary antifreeze so- securely attached to the encased con- lutions, solvents, thinners, and lac- tainer until all of the contents have quers) may not be branded as com- been removed. A statement reading pletely denatured alcohol. These prod- ‘‘Do Not Remove Inner Container Until ucts may not be advertised, shipped, Emptied,’’ or words of similar meaning, sold, or offered for sale as completely shall be placed on the portion of the denatured alcohol. case bearing the marks.

§ 20.142 Records of bulk conveyances. § 20.146 Labels on bulk containers. If completely denatured alcohol is to (a) Completely denatured alcohol in be shipped in a bulk conveyance, the bulk containers with a capacity ex- shipment shall be accompanied by a ceeding 1 gallon shall be labeled on the record which identifies each car, truck, head or side of the container or on the or compartment, the name and loca- side of the casing, with the following: tion (city or town and State) of both (1) The name and address of the per- the consignor and consignee, the quan- son filling the containers; tity in gallons, and the formula num- (2) The contents in gallons: ber of the completely denatured alcohol. (3) The words ‘‘Completely Denatured Alcohol’’; and (Approved by the Office of Management and (4) The formula number. Budget under control number 1512–0337) (b) Packages of 5 gallons or less shall § 20.143 Receipt. bear labels required by § 20.147, in lieu of the labels required by this section. Unless completely denatured alcohol (c) The letters and figures used for received in bulk conveyances or by marking packages shall be large pipeline is to be used immediately, it enough to be easily read and, when shall be deposited in storage tanks, stored in the tank cars or tank trucks printed, labeled, or stenciled, shall be in which received, or drawn into pack- in permanent ink and shall contrast ages which shall be marked or labeled distinctly with the background to as required by this subpart. which applied. (d) Packages may also be marked § 20.144 Packages of completely dena- with the brand name and a statement tured alcohol. to the type of merchandise contained Packages containing more than 5 gal- in the package if these markings do lons of completely denatured alcohol not obscure or detract from the re- shall be of metal or other equally suit- quired markings. The person filling the able material approved by the appro- packages shall maintain the record re- priate TTB officer. The openings of quired by § 20.261. these packages shall be sealed with ap-

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§ 20.147 Labels on consumer-size con- Subpart I—Operations by Dealers tainers. and Users of Specially Dena- (a) Each consumer-size container tured Spirits with a capacity of 5 gallons or less of completely denatured alcohol sold or OBTAINING SPECIALLY DENATURED offered for sale by a distributor shall SPIRITS bear a label showing, in plain, legible § 20.161 Withdrawals under permit. letters, the following: (a) General. The permit, Form 5150.9, (1) The words ‘‘Completely Denatured issued under subpart D of this part, au- Alcohol’’; thorizes a person to withdraw specially (2) The statement ‘‘Caution—con- denatured spirits from the bonded tains poisonous ingredients’’; and premises of a distilled spirits plant or a (3) The name and address of the dis- dealer. tributor filling the packages, unless (b) Photocopying of permit, Form 5150.9. shown elsewhere on the package. (1) As provided in § 20.54, a permittee (b) No other information (except that may make photocopies of its permit, or required by State or Federal law) may amended permit, for the exclusive pur- be shown on the label without the ap- pose of furnishing proof of authoriza- propriate TTB officer’s approval. The tion to withdraw specially denatured word ‘‘pure’’, qualifying denatured al- spirits. cohol may not appear on the label or (2) A permittee need only furnish the the container. photocopy of its permit, or amended permit, to a distilled spirits plant or (c) The requirements of paragraphs dealer for the ‘‘initial order’’ from that (a) and (b) of this section apply to any distilled spirits plant or dealer. person who sells completely denatured (3) When a permittee makes photo- alcohol at wholesale or retail. copies of its permit, Form 5150.9, each copy must be signed, dated, and con- § 20.148 Manufacture of articles with tain the word ‘‘COPY’’ across the face. completely denatured alcohol. (4) A permittee is responsible for ob- Articles may be made with com- taining and, as applicable, destroying pletely denatured alcohol for sale all photocopies of its permit from dis- under brand names. If ingredients are tilled spirits plants and dealers when: added in sufficient quantities to mate- (i) An amended or corrected permit is rially change the composition and issued which supersedes the copy on character of the completely denatured file, (ii) the permit is canceled by rea- alcohol, the article is not classified as son of requalification as a new per- completely denatured alcohol and may mittee, (iii) the permit is revoked or not be marked, branded, or sold as suspended, or (iv) upon permanent dis- completely denatured alcohol. continuance of dealing in or using specially denatured spirits. § 20.149 Records. (c) Withdrawals. (1) When a permittee places an initial order for specially de- Records of transactions in com- natured spirits the permittee will for- pletely denatured alcohol and articles ward a signed copy of its permit, for re- made with completely denatured alco- tention by the distilled spirits plant or hol shall be maintained as prescribed dealer, along with the purchase re- in § 20.261. quest. (Approved by the Office of Management and (2) When the permittee places a sub- Budget under control number 1512–0337) sequent order for specially denatured spirits, the purchase request, in addition to any other information, will contain the permit identification number along with a statement that the permittee possesses a valid permit to withdraw specially denatured spirits, a copy of which is on file with the supplier.

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(3) Shipments will not be made by a line and who transfers the spirits to proprietor of a distilled spirits plant or drums shall plainly label them to show dealer until it is in possession of a (i) the words ‘‘Specially Denatured Al- signed copy of a valid permit, Form cohol’’ or ‘‘Specially Denatured Rum’’, 5150.9, unless the appropriate TTB offi- and (ii) the formula number. cer authorizes the shipment. (2) A dealer who fills packages of spe- (19 U.S.C. 81c; Sec. 201, Pub. L. 85–859, 72 cially denatured spirits shall label Stat. 1370, as amended, 1395, as amended (26 them in accordance with § 20.178. U.S.C. 5271, 5555)) (c) Receipt of portable containers. A [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR permittee who receives specially dena- 20099, May 14, 1985, as amended by T.D. ATF– tured spirits in portable containers 274, 53 FR 25156, July 5, 1988; T.D. TTB–91, 76 such as drums or barrels shall transfer FR 5478, Feb. 1, 2011] the specially denatured spirits to storage tanks or deposit the specially dena- § 20.162 Regulation of withdrawals. tured spirits in a storeroom as provided (a) Each permittee shall regulate its in § 20.165, or use the spirits in accord- withdrawals of specially denatured ance with an approved formula or spirits to ensure that (1) the quantity statement of process. A user may not on hand and unaccounted for does not transfer the spirits to other portable exceed the capacity of the storage fa- containers for storage except in the fol- cilities, and (2) the cumulative quan- lowing circumstances: tity withdrawn or received in any cal- (1) Contents of damaged packages endar year does not exceed the quan- may be transferred to new packages to tity authorized by the permit, Form prevent loss or waste; or 5150.9. Recovered alcohol will be taken (2) Contents of portable containers into account in determining the total may be transferred to ‘‘safety’’ con- quantity of alcohol on hand. tainers to comply with city or State (b) For the purpose of this section, fire code regulations, or on filing no- specially denatured spirits and recov- tice with the appropriate TTB officer ered alcohol will be considered as unac- to comply with the safety practices of counted for if lost under circumstances the user. The user shall label the new where a claim for allowance is required containers with the information by this part and the claim has not been marked on the original containers and allowed, or if used or disposed of in any shall also identify the new containers manner not provided for in this part. as ‘‘repackaged.’’ (d) Record of receipt. Records of re- § 20.163 Receipt and storage of specially denatured spirits. ceipt will consist of the consignor’s invoice of bill or lading which identifies (a) Receipt of bulk conveyances or by the quantities, formula number(s), and pipeline. A permittee who receives spe- serial numbers of containers of specially denatured spirits in bulk convey- cially denatured spirits, and which has ances or by pipeline shall: (1) Deposit been annotated by the consignee with the specially denatured spirits into the date of receipt of the shipment. storage tanks as provided by § 20.165; (2) (e) Losses. On receipt of specially de- draw the specially denatured spirits natured spirits, the user shall deter- into packages marked and labeled as mine and account for any losses in required by paragraph (b) of this sec- transit in accordance with subpart J of tion; (3) store the specially denatured this part. spirits in the tank truck or tank car in which received if the conveyance is ef- (Approved by the Office of Management and fectively immobilized within an enclo- Budget under control number 1512–0337) sure secured to prevent unauthorized access; or (4) use the specially dena- PREMISES AND EQUIPMENT tured spirits immediately in accordance with an approved formula or § 20.164 Premises. statement of process. (a) A permittee shall have premises (b) Marks on portable containers. (1) A suitable for the business being con- user who receives specially denatured ducted and adequate for protecting the spirits in bulk conveyances or by pipe- revenue.

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(b) Storage facilities shall be pro- tured spirits. Each storage tank for re- vided on the premises for specially de- covered and restored denatured spirits natured spirits received or recovered. shall be— Except as provided in paragraph (c) of (a) Durably marked to show its ca- this section, storage facilities shall pacity and use, consist of storerooms, compartments, (b) Equipped for locking to control or stationary storage tanks (not nec- access to the contents, and essarily in a room or building). (c) Provided with an accurate means (c) A permittee receiving and storing of measuring its contents. specially denatured spirits in tank cars or tank trucks, as provided in § 20.163, INVENTORY AND RECORDS need not provide stationary storage tanks. § 20.170 Physical inventory. (d) If specially denatured spirits are Once in each calendar year and when received at or removed from a permit- requested by an appropriate TTB offi- tee’s premises in bulk conveyances, cer, each permittee shall perform and suitable facilities for those operations record a physical inventory of each for- shall be provided. mula of new and recovered specially (e) The appropriate TTB officer may denatured spirits. require the storage facilities or distilling equipment to be secured with (Approved by the Office of Management and Government locks or seals, or both. Budget under control number 1512–0337)

§ 20.165 Storage facilities. § 20.171 Record of shipment. (a) Storerooms shall be constructed (a) Dealer. When a dealer transfers and secured to prevent unauthorized new or recovered specially denatured access and the entrance doors shall be spirits to a distilled spirits plant or equipped for locking. permittee in the normal course of busi- (b) Each stationary tank used for the ness or in accordance with § 20.216 or storage of specially denatured spirits § 20.231 of this part, the dealer shall shall be equipped for locking to control prepare a record of shipment in accord- access to the denatured spirits. An ac- ance with paragraph (c) of this section. curate means of measuring its contents Dealers shall consistently use the same shall be provided for each tank. record series for the record of ship- (c) Storerooms and storage tanks ment. A dealer’s record of shipment shall be kept locked when unattended. shall show a serial number or other A storage cabinet or locker kept inside unique number. a room which is locked when unat- (b) User. When a user transfers new or tended is considered to be adequately recovered specially denatured spirits to secured. a distilled spirits plant or permittee in accordance with § 20.216, 20.231, or 20.235 § 20.166 Stills and other equipment. of this part, the user shall prepare a If recovered denatured spirits or arti- record of shipment in accordance with cles are to be restored on the permit- paragraph (c) of this section. tee’s premises, all equipment to be (c) Record. The record of shipment used in the restoration process shall be shall consist of an invoice, bill of lad- located on the permit premises. Dis- ing or similar document which shows tilling apparatus or other equipment, the following information: including pipelines, for restoration or (1) Date of shipment; for recovery, shall be constructed and (2) Consignor’s name and address; secured in such a manner as to prevent (3) Consignee’s name, address, and unauthorized access to the denatured permit number or distilled spirits plant spirits and so arranged as to be readily registry number; inspected by appropriate TTB officers. (4) For each formula of specially denatured spirits— § 20.167 Recovered and restored dena- (i) The formula number, tured spirits tanks. (ii) The number and sizes of con- Suitable storage tanks shall be pro- tainers, and vided for recovered and restored dena- (iii) The total quantity; and,

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(5) If the specially denatured spirits in wood, fiberboard, or similar mate- are recovered, the word ‘‘recovered’’ rial. The total surface (including the shall appear on the record. opening) of the actual container of the spirits must be enclosed. (Approved by the Office of Management and Budget under control number 1512–0337) (b) When specially denatured spirits are packaged in unlabeled containers, § 20.172 Records. the dealer shall apply the required In addition to the records required by marks to an exposed surface of the this subpart, permittees shall maintain case. The case shall be constructed so records required in subpart P of this that the portion bearing the marks will part. remain securely attached to the encased container until all the spirits (Approved by the Office of Management and have been removed. A statement read- Budget under control number 1512–0337) ing ‘‘Do not remove inner container until emptied,’’ or of similar meaning, OPERATIONS BY DEALERS shall be placed on the portion of the § 20.175 Shipment for account of an- case bearing the marks. other dealer. (Sec. 201, Pub. L. 85–859, 72 Stat. 1360, as (a) A dealer may order specially de- amended (26 U.S.C. 5206)) natured spirits shipped directly from a [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as denaturer or another dealer to a cus- amended at T.D. ATF–476, 67 FR 17939, Apr. tomer (dealer or user). 12, 2002] (b) The dealer who ordered the shipment of specially denatured spirits § 20.178 Marks and brands on con- shall forward a copy of his or her per- tainers of specially denatured spir- mit, Form 5150.9, and the consignee’s its. permit, Form 5150.9, to the person ac- (a) Required marks. Each dealer who tually shipping the specially denatured fills packages of specially denatured spirits. spirits shall mark or label each pack- (c) The dealer who ordered the ship- age with the following information: ment shall be liable for the tax while (1) Quantity, in gallons, or in liters the specially denatured spirits are in and gallons; transit and the person actually ship- (2) Package identification number or ping the specially denatured spirits serial number (see § 20.179); shall not be liable. (3) Name and permit number of the (Sec. 201, Pub. L. 85–859, 72 Stat. 1370, as dealer; amended (26 U.S.C. 5271)) (4) The words ‘‘Specially Denatured [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as Alcohol’’ or ‘‘Specially Denatured amended at T.D. ATF–476, 67 FR 17939, Apr. Rum,’’ or an appropriate abbreviation; 12, 2002; 67 FR 20868, Apr. 26, 2002] (5) Formula number; (6) Proof, if the spirits were dena- § 20.176 Packaging by a dealer. tured at other than 190° proof; A dealer may package specially dena- (7) Denaturants used, if alcohol was tured spirits in containers of any size denatured under an approved formula necessary for the conduct of business. authorizing a choice of denaturants; After filling packages, the dealer shall and accurately determine the contents of (8) Quantity of denaturants used, if each package. After filling drums, the the approved formula authorizes a dealer shall seal all the drum openings choice of quantities of denaturants. with the dealer’s own seals. Packages (b) Location of marks. The dealer shall of specially denatured spirits shall be place the required marks on the head marked or labeled in accordance with of the package or on the side of the § 20.178. case. (c) Other marks. Other marks author- § 20.177 Encased containers. ized by this paragraph may not inter- (a) A dealer may package specially fere with or detract from the marks redenatured spirits in unlabeled con- quired by this subpart. The dealer may tainers which are completely encased place marks other than the required

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marks on the Government head or Gov- containing specially denatured rum. ernment side of the package if the When any numbering series reaches other marks— ‘‘1,000,000’’, the dealer may recom- (1) Are authorized by the appropriate mence the series by providing an alpha- TTB officer, or betical prefix or suffix for each number (2) Consist of a brand name, or con- in the new series. sist of caution notices, or consist of (d) Continuation of numbering series. If other material required by Federal or a change in proprietorship, name, or State law or regulations. trade name occurs, the numbering sys- (Sec. 201, Pub. L. 85–859, 72 Stat. 1360, as tem in use at the time of the change amended (26 U.S.C. 5206)) may be continued. If serial numbers are used at the time of a change, the § 20.179 Package identification num- numbering series in use at the time of ber or serial number. the change may be continued. (a) Requirement. A dealer who fills (Sec. 201, Pub. L. 85–859, 72 Stat. 1360, as packages with specially denatured spir- amended (26 U.S.C. 5206)) its shall mark each package with a package identification number, in ac- § 20.180 Record of packages filled. cordance with paragraph (b) of this sec- (a) Requirement to keep record. A deal- tion, or a serial number, in accordance er shall keep a record when filling with paragraph (c) of this section. packages with specially denatured spir- (b) Package identification number. A its. The dealer shall keep a separate package identification number shall record of packages for each formula of apply to all of the packages filled at specially denatured alcohol and spe- the same time on which all of the cially denatured rum. marks required by § 20.178 (a)(1) and (b) Information to be shown. The deal- (a)(3) through (a)(8) are identical. All of er shall show the following information the packages in one lot shall be the on the record of packages filled— same type, have the same rated capac- (1) Date packages filled; ity, and be uniformly filled with the (2) Package identification number same quantity. A package identifica- and number of packages in each iden- tion number shall be derived from the tical lot filled, or the serial numbers; date on which the package is filled, and (3) Kinds of packages; shall consist of the following elements, (4) Wine gallons or liters; in the order shown— (5) Kind of specially denatured spirits (1) The last two digits of the calendar and formula number; and year; (6) Proof, if the spirits were dena- (2) An alphabetical designation from tured at other than 190° proof. ‘‘A’’ through ‘‘L,’’ representing Janu- (c) Filing. The dealer shall retain the ary through December, in that order; record at the premises and shall file it (3) The digits corresponding to the according to the serial numbers or day of the month; and package identification numbers of the (4) A letter suffix when more than packages. one identical lot is filled into packages during the same day. For successive (Approved by the Office of Management and lots after the first lot, a letter suffix Budget under control number 1512–0337) shall be added in alphabetical order, with ‘‘A’’ representing the second lot of § 20.181 Limitations on shipments. the day, ‘‘B’’ representing the third lot (a) Shipments made under permit. A of the day, etc. (e.g., the first three lots dealer may ship specially denatured filled into packages on November 19, spirits to users and other dealers under 1983, would be identified as ‘‘83K19,’’ the consignee’s permit, Form 5150.9. ‘‘83K19A,’’ and ‘‘83K19B’’). The dealer may not ship specially de- (c) Serial number. A consecutive serial natured spirits before receiving the number shall be marked on each pack- consignee’s permit, Form 5150.9, unless age, beginning with the number ‘‘1’’ the shipment has been authorized by and continuing in regular sequence. the appropriate TTB officer. The dealer shall use a separate but (b) Shipments of samples. A dealer may similar number series for packages ship samples of specially denatured

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spirits to the persons authorized to re- each tank truck, tank ship, or tank ceive them, and in the quantities per- barge. mitted by subpart O of this part. OPERATIONS BY USERS § 20.182 Bulk shipments. § 20.189 Use of specially denatured (a) Use. Dealers may ship specially spirits. denatured spirits in bulk conveyances. The dealer shall seal the bulk convey- (a) Specially denatured spirits shall ances at the time of filling with rail- not be used for any purpose not author- road or other appropriate serially num- ized in this section. bered seals dissimilar in marking from (b) Specially denatured spirits shall be used (1) in the manufacture of arti- cap seals used by the Alcohol and To- cles in accordance with the formula re- bacco Tax and Trade Bureau. Specially quirements of subpart F of this part, denatured alcohol or specially dena- (2) for other purposes in accordance tured rum from only one consignor with approved statements of process may be placed in any one compartment (§ 20.94), or (3) in the case of S.D.A. For- of a bulk conveyance. Not less than the mula No. 3–A, 3–C, or 30, for mechan- entire contents of any one compart- ical or laboratory purposes not involv- ment may be delivered to any one con- ing the development of a product. signee at any one premises. (c) Each formula of specially dena- (b) Construction of bulk conveyances. tured spirits may be used only for the Bulk conveyances shall be constructed purposes authorized under part 21 of to conform to the following require- this chapter. ments: (d) By the use of essential oils and (1) All openings (including valves) chemicals used in the manufacture of shall be constructed so that they may each liquid article, the user shall en- be sealed to prevent unauthorized ac- sure that the finished article cannot be cess to the contents of the conveyance. reclaimed or diverted to beverage use Outlets, valves or other openings to or or internal human use. from tank cars may be constructed in (e) Each finished article shall con- such a manner that they may be closed form to the sample, if any, and formula and securely fastened on the inside. for that article approved in accordance (2) If the conveyance has two or more with subpart F of this part. compartments, the outlets of each shall be so equipped that delivery of [T.D. ATF– 199, 50 FR 1962, Mar. 6, 1985, as any compartment will not afford access amended by T.D. ATF–435, 66 FR 5475, Jan. 19, 2001] to the contents of any other compartment. § 20.190 Diversion of articles for inter- (3) Each compartment shall be ar- nal human use or beverage use. ranged so that it can be completely An appropriate TTB officer who has drained. reason to believe that the spirits in (4) Each tank car or tank truck shall any article are being reclaimed or di- be permanently and legibly marked verted to beverage or internal human with its number, capacity in gallons or use may direct the permittee to modify liters, and the name or symbol of its an approved formula to prevent the owner. If the tank car or truck consists reclamation or diversion. The appro- of two or more compartments, each priate TTB officer may require the per- compartment shall be identified and mittee to discontinue the use of the the capacity of each shall be marked formula until it has been modified and thereon. again approved. (5) Permanent facilities must be provided on tank trucks to permit ready [T.D. ATF– 435, 66 FR 5475, Jan. 19, 2001] examination of manholes or other openings. § 20.191 Bulk articles. (6) Calibrated charts, prepared or cer- Users who convey articles in con- tified by recognized authorities or en- tainers exceeding one gallon may pro- gineers, showing the capacity of each vide the recipient with a photocopy of compartment in gallons or liters for subpart G of this part to ensure com- each inch of depth, must accompany pliance with requirements relating to

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articles. Copies of subpart G are print- lost. The consignee shall note the ed as TTB Publication 5150.5 and are quantity lost on the receiving docu- available as provided in § 20.21(b). ment and attach all relevant informa- [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as tion to the record of receipt, prescribed amended by T.D. ATF–249, 52 FR 5961, Feb. in § 20.163. For the purpose of maintain- 27, 1987] ing the records prescribed in subpart P of this part, receipts of specially dena- § 20.192 Manufacturing record. tured spirits will only include the For each manufacturing process in quantity actually received. which specially denatured spirits are (c) Claims. A claim for allowances of used, the user shall record: losses of specially denatured spirits (a) Quantity and formula number of will, as prescribed in § 20.205, be filed: new or recovered specially denatured (1) If the quantity lost in transit ex- spirits used; ceeds one percent of the total quantity (b) Names and quantities of ingredi- shipped and is more than 10 gallons, ents used; and the consignee shall file a claim for al- (c) Name, trade name or brand name lowance of the entire quantity lost; or and alcoholic content of each article or (2) If the loss was due to theft or intermediate product manufactured, as other unlawful removal, the consignee applicable. shall file a claim for allowance of the (Approved by the Office of Management and entire quantity lost, regardless of the Budget under control number 1512–0337) quantity or percentage involved. (Reporting approved by the Office of Man- Subpart J—Losses agement and Budget under control number 1512–0336; recordkeeping approved by the Of- § 20.201 Liability and responsibility of fice of Management and Budget under con- carrier. trol number 1512–0337) (a) A person or carrier transporting specially denatured spirits to a con- § 20.203 Losses on premises. signee or returning it to the consignor (a) Recording of losses. A permittee is responsible for the safe delivery and shall determine and record, in the is accountable for any specially dena- records prescribed by subpart P of this tured spirits not delivered. part, the quantity of specially dena- (b) A person or carrier transporting tured spirits or recovered alcohol lost specially denatured spirits in violation on premises: of any law or regulation pertaining (1) When an inventory is taken, thereto, is subject to all provisions of (2) At the time a container is law relating to alcohol and the pay- emptied, or ment of tax thereon, and shall be required to pay the tax. (3) Immediately upon the discovery of any loss due to casualty, theft or (Sec. 201, Pub. L. 85–859, 72 Stat. 1314, as other unusual causes. amended (26 U.S.C. 5001)) (b) Claims. A claim for allowance of § 20.202 Losses in transit. specially denatured spirits will be filed as prescribed in § 20.205, in the fol- (a) Reporting losses. Upon discovering lowing circumstances: any loss of specially denatured spirits (1) If the quantity lost during the an- while in transit, the carrier shall im- nual accounting period (§ 20.263(c)) ex- mediately inform the consignee, in ceeds one percent of the quantity to be writing, of the facts and circumstances accounted for during that period, and relating to the loss. In the case of is more than 50 gallons; or, theft, the carrier shall also immediately notify the consignee’s appro- (2) If the loss was due to theft or un- priate TTB officer of the facts and cir- lawful use or removal, the permittee cumstances relating to the loss. shall file a claim for allowance of (b) Recording losses. At the time the losses regardless of the quantity in- shipment or report of loss is received, volved. the consignee shall determine the (Approved by the Office of Management and quantity of specially denatured spirits Budget under control number 1512–0337)

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§ 20.204 Incomplete shipments. (f) Any additional evidence which the (a) Subject to the provisions of this appropriate TTB officer may require to part (and Part 19 of this chapter for be submitted in support of the claim. shipments made by a distilled spirits plant), when containers of specially de- Subpart K—Recovery of Dena- natured spirits have sustained losses in tured Alcohol, Specially De- transit other than by theft, and the natured Rum, or Articles shipment will not be delivered to the consignee, the carrier may return the § 20.211 General. shipment to the shipper. (a) Upon filing the appropriate quali- (b) When specially denatured spirits fying documents under the applicable are returned to the shipper in accord- provisions of subparts D and F of this ance with this section, the carrier shall part and receiving approval, a manu- inform the shipper, in writing, of the facturer using denatured alcohol, spe- facts and circumstances relating to the cially denatured rum, or articles in an loss. In the case of theft, the carrier approved process may recover the de- shall also immediately notify the ship- natured alcohol, specially denatured per’s appropriate TTB officer of the rum, or articles. However, a person facts and circumstances relating to the who recovers (1) completely denatured loss. alcohol with all its original ingredi- (c) Subject to the limitations for loss ents, (2) an article made with specially prescribed in § 20.202, the dealer or pro- denatured spirits with all its original prietor shall file a claim for allowance ingredients (or practically so, to the of the entire quantity lost, in the same extent that the presence of the original manner provided in that section. The denaturants and other ingredients in claim shall include the applicable data the recovered article make it as non- required by § 20.205. potable as the original article), or (3) an article made with completely dena- § 20.205 Claims. tured alcohol with all the denaturants Claims for allowance of losses of spe- of the completely denatured alcohol, cially denatured spirits or recovered shall not be required to obtain a permit alcohol will be filed, on Form 2635 under this part. (5620.8), within 30 days from the date (b) For a determination as to wheth- the loss is ascertained, and will contain er obtaining a permit under this part is the following information: necessary, each person who intends to (a) Name, address, and permit num- conduct the recovery operations out- ber of claimant; lined in paragraph (a) of this section (b) Identification and location of the shall forward Form 5150.19 with a sam- container(s) from which the specially ple of the recovered article, to the ap- denatured spirits or recovered alcohol propriate TTB officer, in accordance was lost, and the quantity lost from with subpart F of this part. each container; (c) Restoration and redenaturation (c) Total quantity of specially dena- may be done by a permittee or by the tured spirits or recovered alcohol cov- proprietor of a distilled spirits plant. ered by the claim and the aggregate quantity involved; § 20.212 Deposit in receiving tanks. (d) Date of loss or discovery, the All recovered denatured alcohol, spe- cause or nature of loss, and all relevant cially denatured rum, or articles shall facts, including facts establishing be accumulated (after recovery or res- whether the loss occurred as a result of toration is completed) in a receiving negligence, connivance, collusion, or tank equipped for locking. If the recov- fraud on the part of any person, em- ered product is to be shipped under ployee or agent participating in or re- § 20.214, it may be accumulated in ap- sponsible for the loss; propriately marked packages. All dena- (e) Name of carrier where a loss in tured alcohol or specially denatured transit is involved. The carrier’s state- rum recovered shall be measured and a ment regarding the loss, prescribed by record of the measurement shall be § 20.202 or § 20.204, will accompany the made before being redenatured or re- claim; and, used. Recovered denatured alcohol or

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specially denatured rum and new dena- manufacturer and shall not inter- tured alcohol or specially denatured mingle them with materials received rum shall be kept in separate storage from other sources. containers properly marked for identification. § 20.215 Shipment of articles and spirits residues for redistillation. (Approved by the Office of Management and Budget under control number 1512–0337) (a) The proprietor of a distilled spirits plant authorized to produce dis- § 20.213 Reuse of recovered spirits. tilled spirits may receive for redistilla- (a) If the denatured alcohol or spe- tion (1) articles manufactured under cially denatured rum is recovered in its this part which contain denatured spir- original denatured state, or practically its, and (2) spirits residues of manufac- so, or contains substantial quantities turing processes related to the manu- of the original denaturants and other facture of these articles. ingredients which make it unfit for (b) Any person shipping these articles beverage or other internal human me- or spirits residues to a distilled spirits dicinal use, it may be reused in any ap- plant for redistillation shall— proved process without further rede- (1) Identify each package or articles naturation. In these cases, the appro- or spirits residues as to contents, and priate TTB officer will require samples (2) Mark and serially number each of the recovered product to be taken from time to time to determine if the package as provided in § 20.214. product requires redenaturation. § 20.216 Record of shipment. (b) If the denatured alcohol or specially denatured rum is not recovered A consignor shipping recovered dena- in its original denatured state, or prac- tured alcohol, recovered specially de- tically so, it shall be redenatured at natured rum, or recovered articles to a the premises of the manufacturer or a distilled spirits plant or a permittee denaturer before being used. The appro- shall prepare and forward a record of priate TTB officer may require super- shipment to the consignee, in accord- vision of the redenaturation of the re- ance with § 20.171. covered spirits by an appropriate TTB officer. (Approved by the Office of Management and Budget under control number 1512–0337) § 20.214 Shipment for restoration or redenaturation. Subpart L—Destruction Recovered denatured alcohol, recovered specially denatured rum, or recov- § 20.221 General. ered articles requiring restoration or A permittee may terminate liability redenaturation (or both, unless the res- for payment of tax, prescribed by law, toration or redenaturation is to be when specially denatured spirits or re- done on the manufacturer’s premises) covered alcohol are destroyed in ac- shall be shipped to a distilled spirits cordance with this subpart. plant or to a permittee. Packages shall be numbered with a package identifica- § 20.222 Destruction. tion number or serial number in accordance with § 20.179 (b) or (c). Pack- (a) A permittee who destroys spe- ages shall be labeled with the name, cially denatured spirits or recovered address, and permit number of the alcohol shall prepare a record which manufacturer, the quantity (in gallons) identifies— of spirits contained in the package, and (1) The reason for destruction, the applicable words ‘‘Recovered dena- (2) The date, time, location and man- tured alcohol formula No. ll’’ or ner of destruction, ‘‘Recovered specially denatured rum (3) The quantity involved and, if ap- formula No. ll.’’ If the restoration or plicable, identification of containers, redenaturation is performed by a user and or dealer permittee (not a distilled (4) The name of the individual who spirits plant), the permittee shall re- accomplished or supervised the de- turn the same materials to the same struction.

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(b) This record of destruction shall be covered alcohol not disposed of within maintained with the records required the specific 60-day period, is subject to by subpart P of this part. seizure and forfeiture.

(Approved by the Office of Management and § 20.234 Disposition on permanent dis- Budget under control number 1512–0337) continuance of use. Subpart M—Return, Reconsign- (a) Specially denatured spirits. Spe- cially denatured spirits on hand at the ment and Disposition of Spe- time of discontinuance of use, may be cially Denatured Spirits disposed of by § 20.231 Return. (1) Returning the specially denatured spirits to a distilled spirits plant or A permittee may, following the re- dealer, as provided in § 20.231, ceipt of specially denatured spirits and (2) Destruction, as provided in for any legitimate reason, return the § 20.222, or specially denatured spirits to any dis- (3) Shipped to another user, as pro- tilled spirits plant or dealer if the con- vided in § 20.235. signee consents to the shipment. The (b) Recovered denatured alcohol, recov- consignor shall prepare a record of ered specially denatured rum, or recovered shipment in accordance with § 20.171. articles. Upon permanent discontinu- (Approved by the Office of Management and ance of use, a permittee may dispose of Budget under control number 1512–0337) recovered denatured alcohol, recovered specially denatured rum, or recovered § 20.232 Reconsignment in transit. articles by (a) Reconsignment. Specially dena- (1) Shipment to a distilled spirits tured spirits may be reconsigned to an- plant, as provided in § 20.215 for articles other permittee or returned to the con- and spirits residues, signor if, prior to or on arrival at the (2) Destruction, as provided in premises of the consignee, the alcohol § 20.222, or is determined to be unsuitable for the (3) Upon the filing of an application intended purpose, was shipped in error, with the appropriate TTB officer, any or, for any bona fide reason, is not ac- other approved method. cepted by the consignee or carrier. (b) Records of reconsignment. In the (Approved by the Office of Management and case of reconsignment, the consignor Budget under control number 1512–0336) shall cancel the initial record of ship- § 20.235 Disposition to another user. ment and prepare a new record of shipment, if the shipment is to another (a) A user may dispose of specially permittee. The new record of shipment denatured spirits to another permittee will be annotated ‘‘Reconsignment.’’ or Government agency. (b) The user shall prepare a record of (Approved by the Office of Management and shipment in accordance with § 20.171. Budget under control number 1512–0337) The packages to be shipped shall bear [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as the name and permit number of the amended at T.D. ATF–476, 67 FR 17939, Apr. user and the marks and labels required 12, 2002] under § 20.178. The user’s copy of the record of shipment shall include an ex- § 20.233 Disposition after revocation of permit. planation of the reason for the disposition. When any permit issued on Form (c) The appropriate TTB officer may 5150.9 is revoked, all specially dena- require a user to apply for and obtain a tured spirits in transit and all specially dealer’s permit, if shipments under this denatured spirits on the former permit section are excessive. premises, may be lawfully possessed by the former permittee for the exclusive (Approved by the Office of Management and purpose of disposing of the specially Budget under control number 1512–0337) denatured spirits, for a period of 60 [T.D ATF–199, 50 FR 9162, Mar. 6, 1985, as days following the date of revocation. amended by ATF–332, 57 FR 40849, Sept. 8, Any specially denatured spirits or re- 1992]

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Subpart N—Use of Specially De- (e) Specially denatured spirits ob- natured Spirits by the United tained by Government agencies may not be used for non-Government pur- States or Government Agen- poses. cy (Sec. 201, Pub. L. 85–859, 72 Stat. 1370, as § 20.241 General. amended (26 U.S.C. 5271)) The United States or any of its Gov- § 20.243 Procurement of specially de- ernment agencies may withdraw spe- natured spirits. cially denatured spirits from a distilled Government agencies shall retain the spirits plant or dealer under this part, original permit, Form 5150.33, on file. as authorized by 26 U.S.C. 5214(a)(2) and When placing an initial order with a 5271. Before any specially denatured vendor, the agency shall forward a pho- spirits may be withdrawn, a permit to tocopy of its permit with the purchase procure the spirits shall be obtained as order for specially denatured spirits. In provided in § 20.25. the case of an agency holding a single (26 U.S.C. 5214, 5271, 5272, 5276) permit for use of other sub-agencies, the photocopy of the permit will con- [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985, as tain an attachment listing all other lo- amended by T.D. ATF–285, 54 FR 12610, Mar. cations authorized to procure specially 28, 1989; T.D. ATF–435, 66 FR 5475, Jan. 19, denatured spirits. Any subsequent pur- 2001; T.D. ATF–476, 67 FR 17939, Apr. 12, 2002; chases from the same vendor need only T.D. TTB–79, 74 FR 37403, July 28, 2009] contain the permit number on the pur- § 20.242 Application and permit, Form chase order. 5150.33. § 20.244 Receipt of shipment. (a) All permits previously issued to On receipt of a shipment of specially the United States or any of its Govern- denatured spirits, a representative of ment agencies on Form 1444 shall re- the Government agency shall inspect main valid and will be regulated by the the shipment for any loss or deficiency. same provisions of this subpart as it re- In the case of loss or deficiency, the fers to permits on Form 5150.33. agency shall annotate the receiving (b) A Government agency shall apply document and forward a copy to the for a permit to obtain specially dena- appropriate TTB officer from which the tured spirits on Form 5150.33. Upon ap- shipment was consigned. proval, Form 5150.33 will be returned to the Government agency, and will serve § 20.245 Discontinuance of use. as authority to procure specially dena- When a Government agency, holding tured spirits. a permit issued under this subpart, no (c) A Government agency may speci- longer intends to procure and use spe- fy on its application for a permit to cially denatured spirits, the permit procure specially denatured spirits, shall be returned to the appropriate Form 5150.33, that it desires a single TTB officer for cancellation. All photo- permit authorizing all sub-agencies copies of the permit furnished to ven- under its control to procure specially dors shall be returned to the agency for denatured spirits; or each Government destruction. location (agency, department, bureau, etc.) desiring to procure specially dena- § 20.246 Disposition of specially denatured spirits may individually submit tured spirits on discontinuance of an application for a permit on Form use. 5150.33. At the time of discontinuance of use (d) An application for a permit shall of specially denatured spirits, a Gov- be signed by the head of the agency or ernment agency may dispose of any ex- sub-agency or the incumbent of an of- cess specially denatured spirits (a) to fice which is authorized by the head of another Government agency holding a the agency or sub-agency, to sign. Evi- permit, (b) by returning the specially dence of authorization to sign for the denatured spirits to a vendor, or (c) in head of the agency or sub-agency shall any manner authorized by the appro- be furnished with the application. priate TTB officer. Specially denatured

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spirits may not be disposed of to the distilled spirits plant or a dealer with general public. the order for the sample of specially denatured spirits. Subpart O—Samples of Specially (Approved by the Office of Management and Denatured Spirits Budget under control number 1512–0336)

§ 20.251 General. § 20.253 Labels for samples. (a) Applicants and prospective appli- When a sample of specially denatured cants for permits to use specially dena- spirits is withdrawn from a dealer’s tured spirits may obtain samples of premises, that dealer shall attach a specially denatured spirits for experi- label to the sample which shows the mental purposes or for preparing sam- following information: ples of finished articles as required by (a) The word ‘‘Sample’’; § 20.92. Samples of specially denatured (b) The dealer’s name, address, and spirits may only be obtained from dis- permit number; tilled spirits plants or dealers. (b) Samples not larger than five gal- (c) The words ‘‘Specially Denatured lons per calendar year may be obtained Alcohol’’ or ‘‘Specially Denatured without a permit. Dealers shall main- Rum’’; tain records to ensure that samples of (d) The quantity; and specially denatured spirits dispensed to (e) The formula number. nonpermittee do not exceed five gallons per calendar year. Subpart P—Records and Reports (c) Samples larger than five gallons per calendar year may be obtained § 20.261 Records of completely dena- without a permit as described in tured alcohol. § 20.252. When requested by the appropriate (d) Samples of specially denatured TTB officer, any person who receives, spirits shall not be used to manufac- packages, stores, disposes of, or uses ture articles for commercial sale. completely denatured alcohol shall (Approved by the Office of Management and keep records of all transactions in Budget under control number 1512–0337) completely denatured alcohol which [T.D. ATF–199, 50 FR 9162, Mar. 6, 1985; 50 FR will enable appropriate TTB officers to 20099, May 14, 1985, as amended by T.D. ATF– verify and trace receipt, packaging, 435, 66 FR 5475, Jan. 19, 2001] storage, usage, and disposal of the spirits, and to determine whether there has § 20.252 Samples larger than five gal- been compliance with law and regula- lons. tions. However, on sales in quantities (a) General. The appropriate TTB offi- of less than 5 gallons, only the total cer may waive the requirement to ob- quantity disposed of daily need be retain a permit under subpart D of this corded. part if a nonpermittee can demonstrate (Approved by the Office of Management and that more than five gallons is nec- Budget under control number 1512–0337) essary to determine if an Industrial Use Permit is desired. § 20.262 Dealer’s records of specially (b) Application. A nonpermittee who denatured spirits. wishes to obtain more than five (a) Each dealer shall maintain sepa- galllons of specially denatured spirits rate records of each formula of new to determine if an Industrial Use Per- specially denatured spirits— mit is desired, shall file a letterhead application with the appropriate TTB (1) Received, as required by § 20.163, officer in which the nonpermittee’s (2) Packaged, as required by § 20.180, premises are located. The letter shall (3) Destroyed, as required by § 20.222, describe why the requested quantity is (4) Lost, as required by §§ 20.202– necessary. 20.204, and (c) Approval. If the letterhead appli- (5) Transferred to another permittee cation is approved, the nonpermittee or a distilled spirits plant, as required shall submit it to the proprietor of a by §§ 20.171, 20.216, and 20.231.

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(b) Each dealer shall maintain sepa- used for each product or process, re- rate records of each formula of recov- corded by the code number prescribed ered specially denatured spirits for by § 21.141 of this chapter. each of the transactions listed in para- (ii) The number of gallons of each graphs (a)(1) through (a)(5) of this sec- formula of recovered specially dena- tion. tured spirits used for each product or (c) Once in each calendar year, and process, recorded by the code number when requested by an appropriate TTB prescribed by § 21.141 of this chapter. officer, each dealer shall perform and (2) Each user who recovers specially record a balanced accounting of each denatured spirits shall maintain sepa- formula of new and recovered specially rate accountings of the number of gal- denatured spirits using the records re- lons of each formula of specially dena- quired by § 20.170 and this section. tured spirits recovered from each prod- (d) When requested, the dealer shall uct or process, recorded by the code submit the accounting required by number prescribed by § 21.141 of this paragraph (c) of this section to the ap- chapter. propriate TTB officer. (3) Product or process code numbers are shown on approved formula and (Approved by the Office of Management and Budget under control number 1512–0337) statement of process forms. For an article made in accordance with a gen- § 20.263 User’s records of specially de- eral-use formula, the user will refer to natured spirits. § 21.141 of this chapter and record the (a) Each user shall maintain separate applicable product or process code records of each formula of new spe- number. cially denatured spirits— (b) Report. Each user shall submit an (1) Received, as required by § 20.163, annual report, Form 5150.18, for the pe- (2) Recovered, as required by § 20.212, riod from July 1 through June 30, sum- (3) Used, as required by § 20.192, marized from the records required by (4) Destroyed, as required by § 20.222, this section. The report shall be filed (5) Lost, as required by §§ 20.202– no later than July 15 following the end 20.203, and of the accounting period. (6) Transferred to another permittee (Approved by the Office of Management and or a distilled spirits plant, as required Budget under control number 1512–0337) by §§ 20.216, 20.231, and 20.235. (b) Each user shall maintain separate § 20.265 Retention of invoices. records of each formula of recovered (a) Any person required to keep specially denatured spirits for each of records under this part shall retain the transactions listed in paragraphs copies of invoices which will enable ap- (a)(1) through (a)(6) of this section. propriate TTB officers to readily ob- (c) Once in each calendar year, and tain the details regarding: when requested by an appropriate TTB (1) Purchases of all essential oils, officer, each user shall perform and chemicals, and other materials used in record a balanced accounting of each manufacturing articles, including the formula of new and recovered specially name and address of the vendor, and denatured spirits using the records re- the quantity; quired by § 20.170 and this section. (2) Purchases of articles containing (d) When requested, the user shall specially denatured spirits for reproc- submit the accounting required by essing, or purchases of those articles paragraph (c) of this section to the ap- for bottling, repackaging, and/or re- propriate TTB officer. sale, including the name and address of (Approved by the Office of Management and the vendor and the quantity; and Budget under control number 1512–0337) (3) Dispositions of all articles manufactured or received, including in each § 20.264 User’s records and report of case the name and address of the per- products and processes. son to whom sold or otherwise disposed (a) Records. (1) Each user shall main- of. tain separate accountings of— (b) The appropriate TTB officer may, (i) The number of gallons of each for- on application filed by the permittee, mula of new specially denatured spirits waive the requirements for retaining

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invoices if the quantity sold to any § 20.268 Photographic copies of person during a calendar month does records. not exceed 25 gallons, and if a waiver (a) General. Permittees may record, will not hinder the effective adminis- copy, or reproduce required records. tration of this part and will not pose a Any process may be used which accu- jeopardy to the revenue. rately reproduces the original record, and which forms a durable medium for (Approved by the Office of Management and Budget under control number 1512–0336) reproducing and preserving the original record. § 20.266 Time for making entries in (b) Copies of records treated as original records. records. Whenever records are reproduced under this section, the repro- Any person who conducts an oper- duced records will be preserved in con- ation which is required to be recorded veniently accessible files, and provi- under this part, shall enter that oper- sions will be made for examining, view- ation in the records on the same day on ing, and using the reproduced records which the operation occurred. How- the same as if they were the original ever, the daily posting of records may record, and they will be treated and be deferred to conform to the permit- considered for all purposes as though tee’s normal accounting cycle if (a) they were the original record. All pro- supporting or supplemental records are visions of law and regulations applica- prepared at the time of the operation, ble to the original are applicable to the and these supporting or supplemental reproduced record. As used in this sec- records are to be used to post the daily tion, ‘‘original record’’ means the record, and (b) the deferral of posting record required by this part to be does not pose a jeopardy to the rev- maintained or preserved by the per- enue. mittee, even though it may be an executed duplicate or other copy of the § 20.267 Filing and retaining records. document. Any person who is required to main- (Sec. 201, Pub. L. 85–859, 72 Stat. 1395, as tain records of operations under this amended (26 U.S.C. 5555)) part shall file and retain records and copies of reports in the following man- PART 21—FORMULAS FOR ner: DENATURED ALCOHOL AND RUM (a) Keep on file for a period of not less than 3 years after the date of the Subpart A—General Provisions report covering the operation, in such Sec. a way as to allow inspection by TTB of- 21.1 Scope of regulations. ficers, all those records of operations, 21.2 Forms prescribed. all supporting or supplemental records, 21.3 Stocks of discontinued formulas. 21.4 Related regulations. and copies of all reports as required by 21.5 Denatured spirits for export. this part. However, the appropriate 21.6 Incorporations by reference. TTB officer may require that the 21.7 Delegations of the Administrator. records and copies of reports be kept for an additional period, not to exceed Subpart B—Definitions 3 years. 21.11 Meaning of terms. (b) File all records and copies of reports at the premises where the oper- Subpart C—Completely Denatured ations are conducted. Alcohol Formulas (c) Make the files of records and cop- 21.21 General. ies of reports available to TTB officers 21.22 Formula No. 18. during regular business hours for ex- 21.23 Formula No. 19. amination. 21.24 Formula No. 20. [T.D. ATF– 199, 50 FR 1962, Mar. 6, 1985, as Subpart D—Specially Denatured Spirits amended by T.D. ATF–435, 66 FR 5475, Jan. Formulas and Authorized Uses 19, 2001] 21.31 General.

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