ministration Act, or differ more than 10 degrees in proof, are to be blended together in the manufacture of the finished product. Likewise, the statement of process must show whether spirits stored in charred new oak containers are to be mingled with spirits stored in plain, reused, or metal cooperage, or whether spirits which have been quick-aged or treated with wood chips are to be mingled with spirits not so processed, or whether spirits that have been subjected to any treatment which changes their character are to be mixed with spirits not so treated.

§ 180.16 Changes of formulae and processes. Any change in the ingredients composing a product covered by an approved formula or any change in the process of manufacture will necessitate the submission of a new Form 27-B Supplemental. Such formula will be serially numbered and disposed of in the same manner as new formulae.

§ 180.17 Filing and disposition of Form 27-B Supplemental-(a) Products to be tax-paid in Puerto Rico. When the internal revenue tax is to be paid in Puerto Rico, Form 27-B Supplemental, in quadruplicate, will be submitted to the Commissioner. The Commissioner will indicate the rate of tax applicable to the product on each copy of the form, retain one copy, forward one copy to the deputy collector and one copy to the treasurer, and return one copy to the applicant.

(b) Products to be tax-paid at port of arrival. When the internal revenue tax is to be paid at the port of arrival in the United States, Form 27-B Supplemental, in quintuplicate, shall be submitted to the Commissioner: Provided, That if the product is to arrive at more than one port, two additional copies shall be submitted for each such port. The port or ports of arrival must be shown on the form. The Commissioner will indicate the rate of tax applicable thereto on each copy of the form, retain one copy, send one copy to the collector of customs at each designated port of arrival, one copy to the district supervisor of the district in which the port is located, one copy to the deputy collector, one copy to the treasurer, and return one copy to the applicant.

TAX-PAYMENT IN PUERTO RICO

§ 180.18 Insular permit required. When liquors are to be tax-paid in Puerto Rico for shipment to the United States, an insular permit, Form 487-A, to taxpay and withdraw the liquors from their place of storage in bond must be obtained from the treasurer.

DISTILLED SPIRITS

§ 180.19 Application and permit to taxpay, Form 487-A. Application for permit to tax-pay and withdraw distilled spirits shall be made by the proprietor of the bonded warehouse or bonded processing room on Form 487-A, in triplicate. All of the information called for by the form shall be furnished. The applicant will forward all copies of the form to the treasurer. If the application is properly prepared and is otherwise in order, the treasurer will execute his permit and send all copies of the form to the insular internal revenue agent at the bonded warehouse or bonded processing room where the spirits are stored.

§ 180.20 Gauge. The insular internal revenue agent will gauge the spirits covered by the permit and report the details of gauge on Form 1520, in quadruplicate. All copies of Form 487-A and three copies of Form 1520 will be delivered to the proprietor by the agent.

§ 180.21 Tax-payment. The proprietor shall retain one copy of each form (487-A and 1520) and send two copies of each to the deputy collector with remittance for the tax. If the spirits (either rectified or unrectified) are to be bottled before shipment, remittance for the distilled spirits tax only shall be made. The rectification tax on rectified spirits which are to be bottled shall be paid in the manner prescribed in § 180.29. If shipment of rectified spirits is to be made in packages (barrels, casks, or similar containers) the remittance must cover both the distilled spirits and rectification taxes.

§ 180.22 Issuance of tax stamps. The deputy collector will issue the stamps. If the permit authorizes the shipment of rectified spirits in packages, and the remittance covers the rectification tax, in addition to the distilled spirits tax, the deputy collector will issue the necessary

rectified spirits class B stamps. Each stamp (tax-paid and rectified spirits) shall bear the signature of the deputy collector, the date issued, by whom paid, the number of gallons and tenths of gallons of proof spirits, and the serial number of the cask or package. The deputy collector's signature may be affixed in facsimile by the use of a hand stamp, care being taken to use only such ink as will neither fade nor blur. When the stamps have been issued, the deputy collector will enter the serial numbers thereof in the appropriate space on all copies of Form 1520. The serial numbers of the rectified spirits stamps will be preceded by the letter "R."

§ 180.23 Disposition of stamps-(a) Spirits to be bottled before shipment. If the spirits are to be bottled before shipment, the deputy collector will retain one copy each of Forms 487-A and 1520 and send the stamps and one copy of each form to the treasurer. The treasurer will cancel and file the stamps in the manner prescribed in § 180.25, and authorize the bottling of the spirits as provided in § 180.26.

(b) Spirits to be shipped in bulk containers. If the shipment is to be made in packages, the deputy collector will deliver the stamps to the proprietor, who will affix the stamps to the packages, in the manner prescribed in § 180.24. One copy each of Forms 487-A and 1520 will be retained by the deputy collector and one copy of each form will be forwarded to the treasurer. The deputy collector will note on the copy of Form 487-A forwarded to the treasurer that the stamps were delivered to the proprietor.

§ 180.24 Afixing stamps to barrels, casks, etc. The stamps shall be affixed by the proprietor under supervision of an insular internal revenue agent to the heads of the packages with an adhesive of good quality. If the spirits are rectified, both stamps (tax-paid and rectified spirits) will be affixed to the head of the package. The insular internal revenue agent will then cancel the stamps. stencil plate of brass or copper shall be used for this purpose in which will be cut not less than five fine parallel waved lines, long enough to extend not less than three-quarters of an inch above and below the stamp, on the surface of the

A

cask. The stencil plate will be so set as to imprint with durable, black coloring material the five parallel waved lines across the stamp at such points as will least obscure the reading matter. The coloring material will be so applied with the brush as to make these lines distinct without blotting or spreading over the stamp. The proprietor shall further secure the stamp to the cask by driving a tack or staple in each corner of the stamp and one in the center and as many more as appear necessary where the stamp bears coupons rendering it irregular in shape. When the stamps have been affixed and canceled, they must be immediately covered by a coat of transparent varnish or shellac.

§ 180.25 Disposition of stamps by treasurer. Upon receipt of tax-paid distilled spirits stamps covering spirits which are to be bottled prior to shipment, the treasurer will cancel same by perforating therein or stamping thereon the word "Canceled." The canceled stamps will be securely attached to Forms 487-A and 1520, covering the regauge and withdrawal of the packages represented by the stamps, and filed in the office of the treasurer. The stamps and forms will be available for inspection by United States internal revenue officers.

§ 180.26 Notice of tax-payment by treasurer. When the tax-paid stamps have been canceled as provided in § 180.25, the treasurer will notify the proper insular internal revenue agent of the tax-payment of the spirits and authorize their withdrawal from the bonded warehouse or bonded processing room, as the case may be, for bottling. The notice to the insular internal revenue agent must describe fully the liquors to be released.

§ 180.27 Bottling tax-paid spirits. Upon receipt of notice from the treasurer that the distilled spirits tax on a particular lot of spirits has been paid, the insular internal revenue agent will release the spirits for bottling. Spirits which are to be bottled without rectification may not be removed through the bonded processing room to the bottling house, but must be removed directly from the bonded warehouse to the bottling house. The bottling operations will be

conducted under supervision of the insular internal revenue agent.

§ 180.28 Stamping bottles. Each bottle of tax-paid distilled spirits must have affixed thereto a red strip stamp of proper denomination bearing the name of the distiller, rectifier, or bottler. Red strip stamps will be purchased and overprinted as provided in §§ 180.66 to 180.84, inclusive. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.29 Payment of rectification tax on bottled rectified spirits. When rectified spirits, upon which the distilled spirits tax has been paid as provided in § 180.21, have been bottled and caseḍ, the rectification tax thereon shall be paid by rectified spirits stamps affixed to the case. Special Puerto Rican rectified spirits stamps in denominations of 2 cent, 1 cent, 2 cents, 3 cents, 4 cents, 5 cents, 6 cents, 10 cents, 30 cents, 36 cents, 40 cents, 50 cents, 60 cents, 72 cents, 80 cents, and $1 have been provided for this purpose. These stamps may be purchased by rectifiers, whenever desired, from the deputy collector pursuant to requisition approved by the insular internal revenue agent on Form 427-B, in triplicate. The heading of the form shall be modified by eliminating the word "wine" and substituting therefor the words "rectified spirits." When the stamps have been issued, the deputy collector will stamp the date of sale on all copies of Form 427-B, retain one copy and send two copies to the treasurer. The treasurer will send one copy to the insular internal revenue agent at the plant.

§ 180.30 Affixing rectified spirits stamps to cases. The rectifier shall cancel the rectified spirits stamps immediately before affixing them to the cases by indelibly writing or stamping thereon or perforating therein his name or initials and the date of cancellation. The stamps must be securely affixed to one side of the case with an adhesive of good quality under the immediate supervision of an insular internal revenue agent. If the spirits are packaged in wooden cases, the stamps will be further secured by the use of tacks in addition to the adhesive. After affixing the stamps to the cases, a coating of transparent varnish or shellac shall be applied over the stamps to prevent their easy removal. Before ship

ment to the United States may be made, a permit therefor must be obtained from the treasurer as provided in § 180.46.

LIQUEURS, CORDIALS, ETC., CONTAINING

WINE

§ 180.31 Rates of tax. Where wine and distilled spirits are used in the manufacture of liqueurs, cordials, and similar compounds, the internal revenue tax imposed under section 3030 (a) (1), Internal Revenue Code, as amended, will be collected on the wine, and tax at the distilled spirits rate will be collected on the distilled spirits used therein. In addition thereto, liqueurs, cordials, and similar compounds containing unfortifiled wine are subject to the tax imposed under section 2800 (a) (5), Internal Revenue Code, whereas liqueurs, cordials, and similar compounds containing fortified wine are subject to the tax imposed under section 3030 (a) (2), Internal Revenue Code, as amended. A quantitative formula is required to be filed for each such product in accordance with § 180.14.

§ 180.32 Tax-payment. When permit, Form 487-A, has been issued by the treasurer, as provided in § 180.19, authorizing the tax-payment and withdrawal of distilled spirits and wines for use in the manufacture of liqueurs, cordials, and similar compounds, the insular internal revenue agent will gauge the distilled spirits to be used therein and report the details of gauge on Form 1520, in quadruplicate. He will also determine the number of gallons (liquid measure) and the per centum of alcohol by volume of the wine to be used and report the quantity so determined and alcoholic strength of the wine on Form 1520, immediately below the details of gauge of the distilled spirits. The wine will be reported thereon as follows: "Wine, 16 per cent alcohol by volume, 200 gallons." The insular internal revenue agent will retain one copy of Form 1520 and deliver three copies each of Forms 487-A and 1520 to the rectifier. The rectifier will forward two copies each of Form 487-A and Form 1520 to the deputy collector with remittance for the tax on the distilled spirits and wine, as provided in §§ 180.21 and 180.39.

§ 180.33 Issuance and disposition of stamps. The deputy collector will issue

the tax-paid stamps in the manner prescribed in § 180.22 for the distilled spirits tax and wine stamps for the tax on the wine. The wine stamps and tax-paid stamps will be forwarded to the treasurer, together with one copy each of Forms 487-A, 427-B and 1520. The treasurer will cancel and file the stamps in the manner prescribed in § 180.25 and authorize the release of the liquors.

§ 180.34 Tax-payment of finished product. If the finished product is subject to the rectification tax under section 2800 (a) (5), Internal Revenue Code, rectified spirits stamps will be procured and affixed to the cases as provided in §§ 180.29 and 180.30. If the finished product is subject to the tax under section 3030 (a) (2), Internal Revenue Code, as amended, wine stamps will be procured and affixed to the cases as provided in §§ 180.39 and 180.40. Containers of liqueurs, cordials and similar compounds shall bear red strip stamps as provided in §§ 180.66 to 180.84, inclusive. (53 Stat. 298, 347; 26 U.S.C. 2800 (a) (5), 3030 (a) (2))

FERMENTED MALT LIQUOR

§ 180.35 Application and permit to tax-pay, Form 487-A. The brewer shall make application for permit to tax-pay fermented malt liquor on Form 487-A, in triplicate. If shipment is to be made in hogsheads, barrels, or kegs, the brewer will enter in the statement "Description of packages" the total number of each size, according to capacity, of containers which it is desired to tax-pay. If shipment is to be made in bottles, the brewer will enter therein the number of cases, size of bottles, number of bottles per case, the total contents thereof in gallons (liquid measure), and the equivalent thereof in barrels and fractions of barrels of 31 gallons each. All copies of Form 487-A will be forwarded to the treasurer. If the application is properly executed and the tax-payment and withdrawal are in order, the treasurer will execute his permit and return all copies to the brewer.

§ 180.36 Tax-payment. The brewer shall send two copies of Form 487–A with Form 7, "Order for Stamps-Fermented Malt Liquor," in triplicate, to the deputy

collector with remittance for the tax. If shipment is to be made in hogsheads, barrels, or kegs, the stamps and one copy of Form 7 will be returned to the brewer. One copy each of Forms 7 and 487-A will be sent to the treasurer, and one copy of each of the forms will be retained by the deputy collector. The deputy collector will note on the copy of Form 487-A sent to the treasurer that the stamps were delivered to the brewer. If the application, Form 487-A, covers bottled fermented malt liquor, the deputy collector will send the fermented malt liquor stamps to the treasurer. The treasurer will cancel and file the stamps as provided in § 180.25 and notify the insular internal revenue agent that the tax thereon has been paid. Before shipment may be made, a permit therefor must be obtained as provided in § 180.46.

§ 180.37 Affixing fermented malt liquor stamps to hogsheads, barrels, and kegs. The brewer, immediately before affixing stamps to hogsheads, barrels, and kegs, shall cancel the stamps by indelibly stamping thereon or perforating therein his name or initials and the date of cancellation in letters and figures of not less than one-fourth inch in height. The stamps must be affixed centrally upon the spigot hole in the head of the package by the use of a suitable adhesive in such manner as will prevent their becoming detached by any change in moisture conditions attending the storage, cooling, dispensing, and other handling of the packages.

WINE

§ 180.38 Application and permit to tax-pay, Form 487-A. Application for permit to tax-pay wine shall be made on Form 487-A, in triplicate. All of the information required by the regulations in this part and called for by the form shall be furnished. If shipment is to be made in casks, barrels, kegs, or similar containers, the applicant shall enter in the statement "Description of liquors" the name of the winemaker producing the wine, the serial numbers of the packages, the total number of wine gallons contained therein, and the taxable grade of the wine, 1. e., "not more than 14%" if the wine contains not more than 14 per centum of absolute alcohol by volume;

"14-21%" if the wine contains more than 14 per centum and not exceeding 21 per centum of absolute alcohol by volume; "21-24%" if the wine contains more than 21 per centum and not exceeding 24 per centum of alcohol by volume. On wines containing more than 24 per centum of alcohol by volume, the true percentage of alcohol by volume shall be stated. If the application for tax-payment covers more than one taxable grade of wine, the quantity in each taxable grade must be reported separately. If bottled wine is to be tax-paid, the applicant shall show the number of cases, size of the bottles, the number of bottles per case, the total contents in wine gallons, and the taxable grade of the wine in the manner stated above. All copies of the application, Form 487-A, shall be forwarded to the treasurer. If the application is properly executed and the tax-payment is in order, the treasurer will execute the permit and return all copies to the applicant.

§ 180.39 Tax-payment. The applicant shall send two copies of Form 487-A with Form 427-B, "Order for Stamps-Wine," in triplicate, to the deputy collector with remittance for the tax. The deputy collector will issue the stamps, stamp the date of sale on all copies of Form 427-B, retain one copy each of Forms 487-A and 427-B, deliver the stamps and one copy of Form 427-B to the applicant, and send one copy of each of the forms to the treasurer.

§ 180.40 Affixing wine stamps to packages and cases. The applicant shall cancel the wine stamps immediately before affixing them to the packages or cases by indelibly writing or stamping thereon or perforating therein his name or initials and the date of cancellation. The stamps must be securely affixed to one side of the case or to the head of the package with an adhesive of good quality, under the immediate supervision of an insular internal revenue agent. On wooden packages and cases, the stamps will be further secured by the use of tacks in addition to the adhesive. After affixing, a coating of transparent varnish or shellac shall be applied over the stamps to prevent their easy removal. Before shipment may be made, a permit therefor must be obtained from the treasurer as provided in § 180.46.

ARTICLES

§ 180.41 Taxable status. Articles containing alcohol which has been denatured at a denaturing plant established under Part 182 of this chapter but which have not been made in accordance with an approved formula, Form 1479A; articles made with alcohol which has not been denatured at a denaturing plant established under Part 182 of this chapter; and articles unfit for beverage purposes, made with distilled spirits or fermented liquors, are subject to tax on the distilled spirits or fermented liquors contained therein at the rate imposed by law on like liquors of domestic production. A formula and process covering the manufacture of each such product shall be filed in accordance with §§ 180.13 to 180.17, inclusive. (53 Stat. 364; 26 U.S.C. 3123)

§ 180.42 Application and permit to tax-pay, Form 487-A. The manufacturer shall make application on Form 487-A, in triplicate, for permit to tax-pay the distilled spirits or fermented liquors which it is desired to use in the manufacture of the articles. All copies of the application shall be forwarded to the treasurer. If the application is properly executed and otherwise in order, the treasurer will execute his permit on the form and send all copies of the form to the insular internal revenue agent at the premises where the liquor is stored.

§ 180.43 Gauge. If distilled spirits are to be used in the manufacture of articles, the insular internal revenue agent will gauge the spirits and report the details of gauge on Form 1520, in quadruplicate. If wine is to be used, the insular internal revenue agent will determine the number of wine gallons and the percentage of alcohol by volume. The wine will be reported on Form 1520, in quadruplicate, in the manner prescribed in § 180.32. If articles are to be manufactured with fermented malt liquor, the insular internal revenue agent will determine the quantity to be used and prepare a report, in quadruplicate, showing such amount in terms of barrels of 31 gallons each, or fractional parts thereof. Three copies of the report will be delivered to the manufacturer by the agent.

§ 180.44 Tax-payment. The manufacturer will forward two copies of the