27 C.F.R. Subpart J—Products Coming Into the United States From the Virgin Islands
Title 27 - Alcohol, Tobacco Products and Firearms
(a) Liquors coming into the United States from the Virgin Islands, except as provided in §26.201, are subject to a tax equal to the internal revenue tax imposed upon the production in the United States of like liquors. Articles coming into the United States from the Virgin Islands, except as provided in §26.201, are subject to tax on the liquors contained therein at the rates imposed in the United States on like liquors of domestic production. (b) The excise taxes collected on distilled spirits and articles containing distilled spirits shall be deposited into the Treasury of the Virgin Islands only if at least 92 percent of the alcoholic content of such product is rum. The amount deposited into the Treasury of the Virgin Islands shall not exceed the lesser of $10.50, or the rate imposed by 26 U.S.C. 5001(a)(1) (including adjustments to the effective tax rate under 26 U.S.C. 5010), on each proof gallon of such distilled spirits or article containing distilled spirits coming into the United States. Such excise tax payments to the Treasury of the Virgin Islands will be reduced by one percent and the estimated amount of refunds or credits, and may be further reduced by certain amounts deposited to the U.S. Treasury as miscellaneous receipts. The moneys so transferred and paid over shall constitute a separate fund in the Treasury of the Virgin Islands, and may be expended as the Virgin Islands legislature may determine. (c) Except for products described in 26 U.S.C. 7652(c), no excise taxes shall be deposited into the Treasury of the Virgin Islands if an excise tax subsidy is provided by the Virgin Islands that is of a kind different from, or in an amount per value or volume of production greater than, any subsidy offered by the Virgin Islands to industries manufacturing products not subject to Federal excise tax. (Sec. 2682, Pub. L. 98–369, 98 Stat. 494 (26 U.S.C. 7652)) [T.D. ATF–175, 49 FR 20804, May 16, 1984, as amended by T.D. ATF–206, 50 FR 15888, Apr. 23, 1985. Redesignated and amended by T.D. ATF–459, 66 FR 38550, 38552, July 25, 2001] (a) General. Industrial spirits, denatured spirits, and products made with denatured spirits in the Virgin Islands may be brought into the United States without incurring tax liability imposed by 26 U.S.C. 5001 or 7652. (b) Industrial spirits. A distiller of industrial spirits who qualifies under regulations issued by the Governor of the Virgin Islands may ship industrial spirits to a tax-free alcohol user in the United States who holds a permit under part 22 of this chapter. Shipments shall be made in accordance with the requirements of subpart O of this part. (c) Denatured spirits. A distiller who qualifies under the regulations issued by the Governor of the Virgin Islands and who denatures spirits in accordance with part 21 of this chapter may ship (1) completely denatured alcohol to anyone in the United States, and/or (2) specially denatured spirits to a dealer or user of specially denatured spirits in the United States or Puerto Rico who holds a permit under part 20 of this chapter. Shipments shall be made in accordance with the requirements of subpart O of this part. (d) Products made with denatured spirits. A person in the Virgin Islands who manufactures products with completely denatured alcohol or specially denatured spirits in accordance with the requirements of part 20 of this chapter and regulations issued by the Governor of the Virgin Islands may ship those products to the United States in accordance with the requirements of subpart O of this part. [T.D. ATF–199, 50 FR 9199, Mar. 6, 1985] (a) Authority of the Governor to issue regulations. The Governor of the Virgin Islands, or his duly authorized agents, are authorized to issue or adopt such regulations (and to approve such bonds, and to issue, suspend, or revoke such permits, as may be required by such regulations) as are necessary to insure that: (1) Industrial spirits produced or manufactured in the Virgin Islands and shipped to the United States free of tax for the purposes authorized in 26 U.S.C. 5214(a) (2) and (3); (2) Denatured spirits manufactured in the Virgin Islands for shipment to the United States free of tax, and (3) Products manufactured in the Virgin Islands with denatured spirits, for shipment to the United States free of tax, conform in all respects to the requirements of law and this chapter imposed on like products of domestic manufacture. (b) Law and regulations applicable. Regulations having been issued by the Governor of the Virgin Islands and concurred in by the Secretary of the Treasury of the United States to govern the production, warehousing, and denaturation of spirits and the use of denatured spirits in the manufacture of products for shipment to the United States free of tax, such regulations are applicable in the Virgin Islands and the Virgin Islands are hereby exempted from (1) All provisions of 26 U.S.C. chapter 51, with the exception of 26 U.S.C. 5314(b) and 5687; and (2) The provisions of this chapter in respect of the production, bonded warehousing, denaturation, and withdrawal of distilled spirits and the use of denatured spirits in the United States: Provided, That such exemption shall be effective only to the extent that any amendments or revisions of the regulations issued by the Governor of the Virgin Islands, or his duly authorized agents, are concurred in by the Secretary of the Treasury of the United States or his delegate. Otherwise, all provisions of law as provided in 26 U.S.C. 5314(b), and the provisions of this chapter in respect of the production, bonded warehousing, denaturation, and withdrawal from bond of distilled spirits and denatured spirits and the use of denatured spirits in the manufacture of products shall extend to and apply in the Virgin Islands (i) in respect of the production, bonded warehousing, and withdrawal of spirits for shipment to the United States free of tax for the purposes authorized in 26 U.S.C. 5214(a) (2) and (3), and (ii) in respect of the production, bonded warehousing, and denaturation of spirits, and to the withdrawal and use of denatured spirits, where the denatured spirits or products containing denatured spirits are to be shipped to the United States free of tax. [T.D. 6402, 24 FR 6090, July 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–48, 44 FR 55853, Sept. 28, 1979; T.D. ATF–198, 50 FR 8552, Mar. 1, 1985]
Title 27: Alcohol, Tobacco and Firearms
PART 26—LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS
Subpart J—Products Coming Into the United States From the Virgin Islands
§ 26.200 Taxable status.
§ 26.201 Products exempt from tax.
§ 26.201a Production in the Virgin Islands for tax-free shipment to the United States.
§ 26.201b [Reserved]
§ 26.201c Shipments of bulk distilled spirits to the United States without payment of tax.
Bulk distilled spirits may be brought into the United States from the Virgin Islands without payment of tax for transfer from customs custody to the bonded premises of a distilled spirits plant qualified under part 19 of this chapter. Such shipments are subject to the provisions of subpart Oa.
[T.D. ATF–62, 44 FR 71715, Dec. 11, 1979]
§ 26.202 Requirements of the Federal Alcohol Administration Act.
Every person, except an agency of a State or a political subdivision thereof or any officer or employee of any such agency, bringing liquors into the United States from the Virgin Islands for nonindustrial use must obtain an importer's basic permit therefor and file with the district director of customs at the port of entry a certified or photostatic copy thereof, and every person and any agency of a State or political subdivision thereof or any officer or employee of such agency, bringing liquors into the United States from the Virgin Islands for nonindustrial use must file with the district director of customs at the port of entry a certificate of label approval, in accordance with the requirements of the Federal Alcohol Administration Act and regulations issued pursuant thereto. Tourists bringing liquors into the United States for personal or other noncommercial use are not subject to the provisions of the Federal Alcohol Administration Act or regulations issued pursuant thereto. (Parts 1, 4, 5, and 7 of this chapter)
(Secs. 3, 5, 49 Stat. 978, as amended, 981, as amended; 27 U.S.C. 203, 205)
[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Editorial Note: For Federal Register citations affecting §26.202, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and on GPO Access.
§ 26.203 Containers of 1 gallon (3.785 liters) or less.
Containers of distilled spirits brought into the United States from the Virgin Islands, having a capacity of not more than 1 gallon (3.785 liters), shall conform to the requirements of subpart P of this part.
(Sec. 201, Pub. L. 85–859, 72 Stat. 1374 (26 U.S.C. 5301))
[T.D. ATF–34, 41 FR 46864, Oct. 26, 1976]
§ 26.203a Containers in excess of 1 gallon (3.785 liters).
Containers of distilled spirits brought into the United States from the Virgin Islands, having a capacity in excess of 1 gallon (3.785 liters), are required to be marked in accordance with customs regulations (19 CFR chapter I).
[T.D. 6695, 28 FR 12936, Dec. 5, 1963. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF–34, 41 FR 46864, Oct. 26, 1976; T.D. ATF–206, 50 FR 23955, June 7, 1985]
§ 26.204 Regauge.
Distilled spirits withdrawn from insular bonded warehouses for shipment to the United States may be gauged at the time of withdrawal by an insular gauger. When such gauges are made, a record of gauge shall be prepared by the insular gauger showing the name of the distiller; and the serial number, the proof of the spirits, and the wine and proof gallon contents of each package gauged. The report of gauge shall be attached to the certificate prescribed in §26.205.
(Approved by the Office of Management and Budget under control number 1512–0250)[T.D. ATF–198, 50 FR 8552, Mar. 1 1985. Redesignated and amended by T.D. ATF–459, 66 FR 38550, 38552, July 25, 2001]
§ 26.204a Verification of eligible wines and eligible flavors.
(a) Any person who, after December 1, 1990, brings into the United States from the Virgin Islands any distilled spirits on which the tax is to be paid or determined at an effective tax rate based in part on the alcohol content derived from eligible flavors or eligible wines shall, before the first tax determination at that rate, request and receive a statement of eligibility for each wine or flavor to be used in the computation of the effective tax rate.
(b) To receive a statement of eligibility, the person bringing in the distilled spirits shall submit to the TTB Alcohol and Tobacco Laboratory, 6000 Ammendale Road, Ammendale, MD 20705, the following:
(1) An 8-ounce sample of each distilled spirits, wine and flavor used in the product;
(2) A statement of composition of each flavor, listing—
(i) The name and percentage of alcohol by volume of the flavor; and
(ii) The name and quantity of each ingredient used in the manufacture of the flavor; and
(3) A statement of the kind and alcoholic content of each wine.
(Approved by Office of Management and Budget under control number 1512–0352)(Act of August 16, 1954, Pub. L. 591, 68A Stat. 907, as amended (26 U.S.C. 7652); Sec. 201, Pub. L. 85–859, 72 Stat. 1314, as amended (26 U.S.C. 5001); Sec. 6, Pub. L. 96–598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
[T.D. ATF–297, 55 FR 18067, Apr. 30, 1990,as amended by T.D. TTB–44, 71 FR 16944, Apr. 4, 2006]
§ 26.205 Certificate.
(a) Every person bringing liquors or articles under this part into the United States from the Virgin Islands, except tourists, shall obtain a certificate in the English language from the manufacturer for each shipment showing the following information:
(1) The name and address of the consignee.
(2) The kind and brand name.
(3) The quantity thereof as follows—
(i) If distilled spirits, the proof gallons or liters and degree of proof;
(ii) If wine, the taxable grade and wine gallons;
(iii) If beer, the gallons (liquid measure) and the percentage of alcohol by volume; and
(iv) If articles, the kind, quantity, and proof of the liquors used therein.
(4) For liquors manufactured under a formula—
(i) The number and date of the approved formula;
(ii) A declaration that the liquors have been manufactured in accordance with the approved formula; and
(iii) The name and address of the person filing the formula.
(5) The name and address of the producer.
(6) For liquors and articles containing liquors produced outside of the Virgin Islands, the country of origin for each such liquor.
(7) For distilled spirits, a certification by the insular gauger as to whether they were regauged when withdrawn from the insular bonded warehouse and, if regauged, whether they were at the time of withdrawal at the proof indicated on the attached record of gauge.
(8) For distilled spirits which contain eligible wine or eligible flavors, the effective tax rate applied to the product and the elements necessary to compute the effective tax rate in accordance with §26.262a as follows—
(i) Proof gallons of distilled spirits (exclusive of distilled spirits derived from eligible flavors);
(ii) Wine gallons of each eligible wine and the percentage of alcohol by volume of each;
(iii) Proof gallons of distilled spirits derived from eligible flavors; and
(iv) On or after December 1, 1990, the name of the manufacturer, formula number from TTB F 5530.5 (1678) or 5150.19 and date of approval or the date of the statement of eligibility for each eligible flavor (See §26.204a); and
(v) After December 1, 1990, the date of the statement of eligibility for each eligible wine.
(b) The person bringing the liquors or articles into the United States shall file the certificate and record of gauge with the district director of customs at the port of entry, at the time of entry summary, as provided in §§26.260 and 26.302.
(Approved by the Office of Management and Budget under control number 1512–0352)(Sec. 201, Pub. L. 85–859, 72 Stat. 1366, as amended (26 U.S.C. 5232); Sec. 6, Pub. L. 96–598, 94 Stat. 3488, as amended (26 U.S.C. 5010))
[T.D. ATF–297, 55 FR 18067, Apr. 30, 1990. Redesignated and amended by T.D. ATF–459, 66 FR 38550, 38552, July 25, 2001]
§ 26.206 Marking packages and cases.
The distiller, rectifier, or bottler shall serially number each case, barrel, cask, or similar container of distilled spirits filled for shipment to the United States. In addition to the serial number of the container, the distiller, rectifier, or bottler shall plainly print, stamp, or stencil with durable coloring material, in letters and figures not less than one-half inch high, on the head of each barrel, cask or similar container or on one side of each case, as follows:
(a) The name of the manufacturer;
(b) The brand name and kind of liquor; and
(c) The wine and proof gallon contents; or, for bottles filed according to the metric standards of fill prescribed by §5.47a, of this chapter, the contents in liters and the proof of the spirits.
[T.D. ATF–43, 42 FR 30836, June 17, 1977]
§ 26.207 Destruction of marks and brands.
The marks, brands, and serial numbers required by this part to be placed on barrels, casks, or similar containers, or cases, shall not be removed, obscured or obliterated before the contents thereof have been removed.
[T.D. ATF–198, 50 FR 8552, Mar. 1, 1985]
§ 26.209 Samples.
The appropriate TTB officer may require samples of liquors and articles to be submitted whenever desired for laboratory analyses in order to determine the rate of tax applicable thereto.
[20 FR 6077, Aug. 20, 1955, as amended by T.D. 7006, 34 FR 2250, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]
Special (Occupational) Taxes
§ 26.210 Liquor dealer's special taxes.
(a) General. Except as otherwise provided in paragraph (b) of this section, every person bringing liquors into the United States from the Virgin Islands, who sells, or offers for sale, such liquors shall file Form 5630.5 with TTB in accordance with the instruction on the form, and pay special occupational tax as a wholesale dealer in liquor or as a retail dealer in liquor, in accordance with the laws and regulations governing the payment of such special taxes (part 31 of this chapter).
(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, every person described in paragraph (a) of this section must register by filing the special tax return on Form 5630.5, in accordance with part 31 of this chapter, during the suspension period even though the amount of tax due is zero.
(Sec. 201, Pub. L. 85–859, 72 Stat. 1340 as amended, 1343 as amended, 1344 as amended (26 U.S.C. 5111, 5112, 5121, 5122))
[T.D. ATF–70, 45 FR 33981, May, 21, 1980, as amended by T.D. ATF–251, 52 FR 19339, May 22, 1987; T.D. TTB–25, 70 FR 19883, Apr. 15, 2005; T.D. TTB–36, 70 FR 62246, Oct. 31, 2005]
§ 26.211 Warehouse receipts covering distilled spirits.
The sale of warehouse receipts for distilled spirits is equivalent to the sale of distilled spirits. Accordingly, except during the suspension period described in §26.210(b), every person bringing distilled spirits into the United States from the Virgin Islands, who sells, or offers for sale, warehouse receipts for distilled spirits stored in warehouses, or elsewhere, incurs liability to special tax as a dealer in liquors at the place where such warehouse receipts are sold, or offered for sale, and must file return and pay occupational tax as provided in §26.210(a). During the suspension period, every such person must register as provided in §26.210(b).
(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)
[T.D. TTB–36, 70 FR 62247, Oct. 31, 2005]
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