27 C.F.R. Subpart Cb—Products Coming Into the United States From Puerto Rico
Title 27 - Alcohol, Tobacco Products and Firearms
(a) Liquors coming into the United States from Puerto Rico, except as provided in §26.36, are subject to a tax equal to the internal revenue tax imposed on the production in the United States of like liquors. Articles coming into the United States from Puerto Rico, except as provided in §26.36, 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 or articles containing distilled spirits shall be deposited into the Treasury of Puerto Rico only if at least 92 percent of the alcoholic content of such products is rum. The amount deposited into the Treasury of Puerto Rico 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 articles, other than eligible articles, containing distilled spirits coming into the United States or consumed on the island. Such excise tax deposits will be reduced by the estimated amount necessary for payment of refunds and drawbacks. (c) Except for products described in 26 U.S.C. 7652(c), no excise taxes shall be deposited into the Treasury of Puerto Rico if an excise tax subsidy is provided by Puerto Rico that is of a kind different from, or in an amount per value or volume of production greater than, any subsidy offered by Puerto Rico 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–203, 50 FR 15888, Apr. 23, 1985; T.D. ATF–263, 52 FR 46593, Dec. 9, 1987. Redesignated and amended by T.D. ATF–459, 66 FR 38550, July 25, 2001] (a) General. Industrial spirits, denatured spirits, and products made with denatured spirits in Puerto Rico may be brought into the United States without incurring tax liability imposed by 26 U.S.C. 5001 or 7652. (b) Industrial spirits. A distiller of industrial spirits who registers, files a bond, and pays special (occupational) tax as a distilled spirits plant in accordance with part 19 of this chapter may ship industrial spirits to a tax-free alcohol user in the United States who holds a permit and has paid special (occupational) tax under part 22 of this chapter. These shipments shall be made in accordance with the requirements of parts 19 and 22 of this chapter. (c) Denatured spirits. A distiller who registers, files a bond, and pays special (occupational) tax as a distilled spirits plant in accordance with part 19 of this chapter and who denatures spirits in accordance with parts 19 and 21 of this chapter may ship (1) completely denatured alcohol to anyone in the United States, and/or (2) specially denatured spirits to a dealer or user of specially denatured spirits in the United States or Puerto Rico who holds a permit and has paid special (occupational) tax under part 20 of this chapter. These shipments shall be made in accordance with the requirements of parts 19 and 20 of this chapter, and subpart Ia of this part. (d) Products made with denatured spirits. (1) A person in Puerto Rico who manufactures products with completely denatured alcohol in accordance with the requirements of part 20 of this chapter may ship those products to the United States in accordance with the requirements of part 20 of this chapter, and subpart Ia of this part. (2) A person in Puerto Rico who manufactures products with specially denatured spirits may ship those products to the United States if that person (i) obtains a permit to use specially denatured spirits, and pays special (occupational) tax, under part 20 of this chapter, and (ii) complies with the requirements of part 20 of this chapter and subpart Ia of this part relating to the manufacture and shipment of those products. [T.D. ATF–199, 50 FR 9198, Mar. 6, 1985; T.D. ATF–199, 50 FR 20099, May, 14, 1985, as amended by T.D. ATF–271, 53 FR 17559, May 17, 1988]
Title 27: Alcohol, Tobacco and Firearms
PART 26—LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN ISLANDS
Subpart Cb—Products Coming Into the United States From Puerto Rico
§ 26.35 Taxable status.
§ 26.36 Products exempt from tax.
§§ 26.36a-26.36b [Reserved]
§ 26.36c Shipments of bulk distilled spirits to the United States without payment of tax.
Bulk distilled spirits may be brought into the United States from Puerto Rico 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 Ib.
[T.D. ATF–62, 44 FR 71709, Dec. 11, 1979]
§ 26.37 Alcohol and Tobacco Tax and Trade Bureau Officers.
Appropriate TTB officers are authorized to collect internal revenue taxes on liquors and articles subject to tax, which are to be shipped to the United States.
[T.D. TTB–44, 71 FR 16944, Apr. 4, 2006]
§ 26.38 Containers of distilled spirits.
Containers of distilled spirits brought into the United States from Puerto Rico, having a capacity of not more than 1 gallon (3.785 liters), shall conform to the requirements of subpart P of this part.
[T.D. ATF–34, 41 FR 46863, Oct. 26, 1976]
§ 26.39 Labels.
All labels affixed to bottles of liquors coming into the United States shall conform to the requirements of the Federal Alcohol Administration Act and implementing regulations (parts 4, 5, and 7 of this chapter).
[T.D. ATF–48, 44 FR 55851, Sept. 28, 1979]
§ 26.40 Marking containers of distilled spirits.
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 distiller, rectifier, or bottler.
(b) The brand name and kind of liquor;
(c) The wine and proof gallon contents; or, for bottles filled according to the metric standards of fill prescribed by §5.47a, of this chapter, the contents in liters and the proof of the spirits; and
(d) In the case of barrels or casks, the serial number of the permit to ship, Form 487–B, prefixed by the number of such form (e.g., “487–B–61–1”)
(e) In the case of bulk containers shipped to the United States under subpart Ib, the serial number of the application and permit to ship, TTB Form 5110.31, instead of the serial number of Form 487–B.
[T.D. ATF–43, 42 FR 30836, June 17, 1977; as amended by T.D. ATF–62, 44 FR 71709, Dec. 11, 1979]
§ 26.41 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 or obscured or obliterated before the contents thereof have been removed.
(Sec. 201, Pub. L. 85–859, 1358, as amended, 26 U.S.C. 5205)
[T.D. ATF–198, 50 FR 8548, Mar. 1, 1985]
§ 26.43 Samples.
The appropriate TTB officer may require samples of liquors and articles to be submitted whenever desired for laboratory analysis in order to determine the rates 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
§ 26.44 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 Puerto Rico, who sells, or offers for sale, such liquors shall file Form 5630.5 with TTB in accordance with the instructions of the form, and pay special (occupational) tax as a wholesale dealer in liquor or as a retail dealer in liquor in accordance with the law 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 33980, May 21, 1980, as amended by T.D. ATF–251, 52 FR 19338, May 22, 1987; T.D. TTB–25, 70 FR 19883, Apr. 15, 2005; T.D. TTB–36, 70 FR 62246, Oct. 31, 2005]
§ 26.45 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 §26.44(b), every person bringing distilled spirits into the United States from Puerto Rico, 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 §26.44(a). During the suspension period, every such person must register as provided in §26.44(b).
(68A Stat. 618, 620, 621; 26 U.S.C. 5111, 5112, 5121, 5122)
[T.D. TTB–36, 70 FR 62246, Oct. 31, 2005]
§ 26.46 Distilled spirits plant proprietor's special (occupational) tax.
(a) General. Except as otherwise provided in paragraph (b) of this section, every proprietor of a distilled spirits plant producing industrial spirits, denatured spirits, or products made with denatured spirits, for shipment to the United States, shall file Form 5630.5 with TTB in accordance with instructions on the form and pay special (occupational) tax as a distilled spirits plant proprietor in accordance with part 19 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 19 of this chapter, during the suspension period even though the amount of tax due is zero.
(26. U.S.C. 5081, 5314)
[T.D. ATF–271, 53 FR 17559, May 17, 1988, as amended by T.D. TTB–36, 70 FR 62246, Oct. 31, 2005]
§ 26.47 Specially denatured spirits user's and dealer's special (occupational) taxes.
Every user of specially denatured spirits who manufactures products made with such spirits for shipment to the United States, and every dealer in specially denatured spirits who ships such spirits to the United States, who is required by §26.36 to obtain a permit under part 20 of this chapter, shall file Form 5630.5 with TTB in accordance with instructions on the form and pay special (occupational) tax as a user or dealer in specially denatured spirits under part 20 of this chapter.
(.S.C. 5271, 5276, 5314)
[T.D. ATF–271, 53 FR 17559, May 17, 1988. Redesignated and amended by T.D. ATF–459, 66 FR 38550, July 25, 2001]
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