27 C.F.R. Subpart I—Claims for Drawback on Eligible Articles From Puerto Rico
Title 27 - Alcohol, Tobacco Products and Firearms
Source: T.D. ATF–263, 52 FR 46594, Dec. 9, 1987, unless otherwise noted.
Any person who brings eligible articles into the United States from Puerto Rico may claim drawback of the distilled spirits excise taxes paid on such articles as provided in this subpart. (a) General. Except as otherwise provided in paragraph (b) of this section, any person filing claim for drawback of tax on eligible articles brought into the United States from Puerto Rico shall pay special tax as required by 26 U.S.C. 5131. For purposes of special tax, subparts C and D of part 17 of this chapter shall apply as if the use and tax determination occurred in the United States at the time the article was brought into the United States and, each business location from which entry of eligible articles is caused or effected shall be treated as a place of manufacture. If special tax is paid for any such business location under part 197 of this chapter, as a place where nonbeverage products are manufactured for purposes of drawback, then no additional special tax need be paid for that location under this section. (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. However, any person described in paragraph (a) of this section must register by filing the special tax return on Form 5630.5, in accordance with part 17 of this chapter, during the suspension period even though the amount of tax due is zero. [T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF-271, 53 FR 17559, May 17, 1988; T.D. ATF–379, 61 FR 31427, June 20, 1996; T.D. TTB–36, 70 FR 62246, Oct. 31, 2005] (a) General. Persons bringing eligible articles into the United States from Puerto Rico and intending to file monthly claims for drawback under the provisions of this subpart shall obtain a bond on Form 5154.3. When the limit of liability under a bond given in less than the maximum amount has been reached, further drawback on monthly claims may be suspended until a strengthening or superseding bond in a sufficient amount has been furnished. For provisions relating to bonding requirements, subpart E of part 17 of this chapter is incorporated in this part. (b) Approval required. No person bringing eligible articles into the United States from Puerto Rico may file monthly claims for drawback under the provisions of this subpart until a bond on TTB Form 5154.3 has been approved. [T.D. ATF–379, 61 FR 31427, June 20, 1996, as amended by T.D. ATF–451, 66 FR 21669, May 1, 2001] (a) General. Persons bringing eligible articles into the United States from Puerto Rico must file claim for drawback on TTB Form 2635 (5620.8). Upon finding that the claimant has satisfied the requirements of this subpart, the appropriate TTB officer must allow the drawback of taxes at a rate of $1 less than the lesser of $10.50 a proof gallon or the rate specified in 26 U.S.C. 5001(a). (b) Information on claims. The claim must set forth the following: (1) That the special tax has been paid; (2) That the eligible articles brought into the United States on which drawback is claimed are fully tax paid or tax-determined; (3) That the eligible articles on which drawback is claimed are nonbeverage products; and (4) That the eligible articles were manufactured in Puerto Rico in compliance with an approved formula in accordance with §26.51. (c) Supporting data. Each claim shall be accompanied by supporting data as specified in this paragraph. TTB Form 5154.2, Supporting Data for Nonbeverage Drawback Claims, may be used, or the claimant may use any suitable format that provides the following information: (1) The control number of the Special Tax Stamp and the tax year for which issued; (2) A description of each eligible article as follows: (i) Name and type of each product; (ii) Name and address of the manufacturer of each product; (iii) Formula number; (iv) Alcohol content of each product; (v) Quantity of each product; (vi) Proof gallons of distilled spirits contained in each product; (vii) Date of entry of the eligible product into the United States, and (viii) The serial number of each TTB Form 487–B (5170.7) covering such articles shipped to the United States. (d) Date of filing claim. Quarterly claims for drawback shall be filed within the 6 months next succeeding the quarter in which the eligible products covered by the claim were brought into the United States. Monthly claims for drawback may be filed at any time after the end of the month in which the eligible products covered by the claim were brought into the United States, but must be filed not later than the close of the sixth month succeeding the quarter in which the eligible products were brought into the United States. [T.D. ATF-263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF–271, 53 FR 17559, May 17, 1988; T.D. ATF–379, 61 FR 31427, June 20, 1996; T.D. ATF–451, 66 FR 21669, May 1, 2001. Redesignated and amended by T.D. ATF–459, 66 FR 38550, 38552, July 25, 2001] (a) General. Every person intending to file claim for drawback on eligible articles brought into the United States from Puerto Rico shall keep permanent records of the data elements required by this section. Such records shall be maintained at the business premises for which the claim is filed and shall be available for inspection by any appropriate TTB officer during business hours. (b) Details of records. Each person intending to claim drawback on eligible articles brought into the United States shall maintain permanent records showing the following data: (1) The name, description, quantity, and formula number of each such article. (2) The alcohol content of each such article. (3) Name and address of the manufacturer and shipper, and date of entry into the United States. (4) Evidence of taxpayment of distilled spirits in accordance with paragraph (c) of this section. (c) Evidence of taxpayment of distilled spirits. All shipments of eligible articles from Puerto Rico to the United States shall be supported by the vendor's commercial invoice which must bear a certification as to taxpayment by the person who determined or paid the tax, and include the following information: (1) The name and address of vendor; (2) The number of the applicable invoice; (3) The serial or package identification number of the container; (4) Name, type, and formula number of the product; (5) The kind of spirits, proof, and proof gallons in the container; and (6) The serial number of each Form 487–B (5170.7) covering such articles shipped to the United States. (d) Form of record. No particular form of record is prescribed, but the data required to be shown shall be readily ascertainable from the records kept by the drawback claimant. (e) Retention of records. Each drawback claimant shall retain for a period of not less than three years all records required by this subpart, all commercial invoices or shipping documents, and all bills of lading received evidencing receipt and tax determination of the spirits. In addition, a copy of each approved formula returned to the manufacturer of eligible articles shall be retained for not less than three years from the date he files his last claim for drawback under the formula. The records, forms, and formulas shall be readily available during regular business hours for examination by appropriate TTB officers. [T.D. ATF–263, 52 FR 46594, Dec. 9, 1987, as amended by T.D. ATF–451, 66 FR 21669, May 1, 2001]
Title 27: Alcohol, Tobacco and Firearms
PART 26—LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS
Subpart I—Claims for Drawback on Eligible Articles From Puerto Rico
§ 26.170 Drawback of tax.
§ 26.171 Special tax.
§ 26.172 Bonds.
§ 26.173 Claims for drawback.
§ 26.174 Records.
