27 C.F.R. § 17.21 Payment of special tax.
Title 27 - Alcohol, Tobacco Products and Firearms
(a) General. Except as otherwise provided in paragraph (b) of this section, each person who uses taxpaid distilled spirits in the manufacture or production of nonbeverage products shall pay special tax as specified in §17.22 in order to be eligible to receive drawback on the spirits so used. Special tax shall be paid for each tax year during which spirits were used in the manufacture of a product covered by a drawback claim. If a claim is filed covering taxpaid distilled spirits used during the preceding tax year, and special tax has not been paid for the preceding tax year, then special tax for the preceding tax year shall be paid. Regardless of the portion of a tax year covered by a claim, the full annual special tax shall be paid. The manufacturer is not required to pay the special tax if drawback is not claimed. (b) Suspension of tax. During the period from July 1, 2005, through June 30, 2008, the rate of the tax described in paragraph (a) of this section is zero. Accordingly, payment of the tax is not a prerequisite for claiming drawback on spirits used during that period. However, the drawback claimant still must register by filing the special tax return on Form 5630.5 during the suspension period even though the amount of tax due is zero. [T.D. ATF–379, 61 FR 31412, June 20, 1996, as amended by T.D. TTB–36, 70 FR 62241, Oct. 31, 2005]
Title 27: Alcohol, Tobacco and Firearms
PART 17—DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN MANUFACTURING NONBEVERAGE PRODUCTS
Subpart C—Special Tax
§ 17.21 Payment of special tax.
