the name of the manufacturer, the brand name and kind of liquor, the wine and proof gallon contents, and the serial number of the approved formula under which made.

180.101 Destruction of marks and brands. The marks, brands, and serial numbers required by the regulations in 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; but when barrels, casks, or similar containers (except for fermented malt liquors) are emptied, all such marks, brands, and serial numbers shall be effaced and obliterated by the person removing the contents. (53 Stat. 330; 26 U.S.C. 2866)

§ 180.102 Destruction of stamps. All stamps must remain on packages and cases until the contents are emptied. When a package or case of distilled spirits is emptied, all internal revenue stamps thereon must be completely effaced and obliterated. Any person who empties any receptacle of wine shall destroy the wine stamps thereon by scraping or obliterating immediately the receptacle is emptied. Fermented malt liquor stamps must be destroyed by driving through the stamp the faucet through which the liquor is to be withdrawn, or an airfaucet of equal size, at the time the hogshead, barrel, or keg is tapped. The stamp thus destroyed must remain on the hogshead, barrel, or keg until it is emptied. (53 Stat. 330; 26 U.S.C. 2866)

§ 180.103 Samples. The Commissioner 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.

FORMULAE AND PROCESSES

§ 180.104 Form 27-B Supplemental. Every person who ships liquors or articles to the United States from the Virgin Islands except (a) alcohol denatured according to approved formula at denaturing plants established under the provisions of Regulations 3 (26 CFR, Part 182); and (b) articles made with such denatured alcohol, in accordance with an approved formula, shall submit to the Commissioner, in advance of shipment, a

formula and process on Form 27-B Supplemental covering the manufacture of such liquor or article. A separate Form 27-B Supplemental will be filed for each formula. Each formula submitted on Form 27-B Supplemental shall be dated and given a serial number beginning with the number 1 for the first and continuing in series thereafter, provided that the series in current use by persons who have filed formulae heretofore shall be continued. All of the information required by the regulations in this part and called for by the form shall be furnished. Formulae for products manufactured with specially or completely denatured alcohol shall be submitted as provided in Part 182 of this chapter.

§ 180.105 Description of formula—(a) Liquors. Formulae for liquors (except fermented malt liquor) must show on Form 27-B Supplemental the kind and brand name of the product, the proof thereof, and all ingredients composing the product. If wine only or wine and distilled spirits are used in any product, the quantity or percentage by volume of each and the per centum of alcohol by volume of the wine must be shown. Where coloring, flavoring, sweetening, or blending materials of any kind are used, the percentage thereof by volume shall be shown. If any of the liquors named in the formula are made outside the Virgin Islands, the country of origin must be stated.

(b) Articles. Formulae for articles made with distilled spirits must show the quantity and proof of the distilled spirits used, or the percentage of absolute alcohol by volume contained in the finished product. Formulae for articles made with fermented liquors must show the kind and quantity thereof (liquid measure) and the per centum of absolute alcohol by volume of such fermented liquor.

§ 180.106 Description of process. The statement of process must set out in sequence each step used in the manufacture of the finished product. The statement of process must also show whether liquors distilled from different materials, or by different distillers, or from different combinations of the same materials at less than 190 degrees proof, or of different ages, or which differ in kind according to the standards of identity es

tablished under the Federal Alcohol Administration 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.

$ 180.107 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 formulae will be serially numbered and disposed of in the same manner as new formulae.

§ 180.108 Filing. Each formula and process shall be filed with the Commissioner on Form 27-B Supplemental, in quadruplicate, properly modified: Provided, That if the product is to be entered at more than one port, two additional copies of each formula and process shall be submitted for each such port. The port or ports of entry must be shown on the form.

§ 180.109 Disposition. When the formula and process have been examined, the rate of tax applicable thereto will be indicated on each copy of Form 27-B Supplemental, one copy will be forwarded to the collector of customs at each designated port of entry, one copy to the district supervisor of the district in which such port is located, one copy will be returned to the manufacturer, and one copy retained in the files of the Commissioner.

RED STRIP STAMPS

GENERAL

§ 180.110 Containers of distilled spirits to bear red strip stamps. The immediate containers of distilled spirits coming into the United States from the Virgin Islands are required to bear red strip stamps indicating the payment of

all

internal

revenue taxes thereon. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.111 Persons authorized to affix red strip stamps. Red strip stamps shall be affixed to containers of distilled spirits as follows: (a) by the bottler in the Virgin Islands; or (b) by the importer while the spirits are in customs custody. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.112 Denominations of red strip stamps. Red strip stamps will be provided in the following denominations only: 1 gallon, 12 gallon, 1 quart, 4/5 quart, 34 quart, 1 pint, 4/5 pint, 34 pint, 1⁄2 pint, and less than 2 pint. When containers for which standards of fill are not prescribed are of sizes for which no stamps are provided, the person required to affix the stamps shall use those of the denomination next under the actual quantity of spirits in the containers, as, for instance, a stamp of the 2 pint denomination for a container of more than 2 pint and less than 34 pint, and shall block or strike out the original denomination and write or print on the stamps immediately above the blocked or stricken out denomination the exact quantity of spirits in the containers. Stamps of the denomination of "less than 2 pint" need not be changed to show the exact quantity in the containers. Stamps of the "less than 1⁄2 pint" denomination will be issued 50 in a sheet. Stamps of all other denominations will be issued 42 in a sheet. The price is 1 cent for each stamp, except that in the case of stamps for containers of less than one-half pint, the price is one-quarter of 1 cent for each stamp. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.113 Manner of affixing red strip stamps. The red strip stamps must be securely affixed to the containers with the use of a good adhesive. The adhesive used must be in proper liquid condition. Care must be taken to cover the entire back of the stamp with the adhesive, and to press it firmly against the surface of the container sufficiently long to cause the stamp to adhere securely to the container. The stamp must pass over the mouth of the container, extending an approximately equal distance on two sides of the container, and be so affixed that a portion of the stamp will remain attached to the container

when it is opened. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.114 Concealing or obscuring red strip stamps. No part of the red strip stamp shall be concealed or obscured by any label or other covering, except that a cup may be placed over the opening of the container or the container may be placed in a carton, as hereinafter provided. Seals made of cellulose or other material which are shrunk or otherwise fitted over the necks of the containers and cover the stamps must be sufficiently transparent to permit the stamps to be plainly seen and the data thereon easily read. No cup or cap may be placed over the opening of a container and cover the stamp, unless such cup or cap is transparent or is so placed on the container that it may be readily removed at any time without injury to the stamp and the arrangement is such that the ends of the stamp will be plainly visible when the cup or cap is in place. Cartons or other coverings of containers of distilled spirits are permitted, if so made that they may be opened and closed without being torn or broken. Sealed cartons or other coverings may not be used unless transparent or unless openings therein permit the data on the stamp and the indicia and penalty clause required by Part 175 of this chapter on the container to be plainly seen and read. (53 Stat. 303, 331; 26 U.S.C. 2803, 2871)

§ 180.115 Affixing red strip stamps over cup or cap. The red strip stamp may be affixed over a cup or cap placed over the opening of the container, provided the arrangement is such that the stamp will be torn apart or destroyed when the cup or cap is unscrewed or removed or destroyed. Where it is desired to affix the stamp over a removable cup or cap, the cup or cap must be securely screwed or fastened over the opening of the container, and must be of such size and construction that the stamp will pass over the top and extend beyond the cup or cap for such length that each end of the stamp may be securely affixed to the surface of the container. The stamp must be securely affixed, with a strong adhesive, to both the cup or cap and the container. Where it is desired to affix the stamp over a cap or seal made of cellulose or other similar adhesive material which is so shrunk or otherwise

538431-44-CUM. SUPP. I—Bk. 5—PART 2

fitted over the neck of the container as to be unremovable without being destroyed, and is of such size and construction that the stamp will not extend beyond such cap or seal to permit each end to be affixed to the surface of the container, it will not be necessary for the ends of the stamp to be affixed to the surface of the container, provided that the cap or seal is affixed to the container in such a manner that when the container is opened the stamp will be torn apart and a portion of the cap or seal and the stamp will remain attached to the container. In any case where there is doubt as to the propriety of the use of any cup or cap, the container and cup or cap should be submitted to the district supervisor for a ruling thereon. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.116 Exchange and redemption of stamps. Unused red strip stamps, in quantities of the value of $5 or more, issued under section 203 of the Liquor Taxing Act of 1934, or subsection (b) of section 2803, Internal Revenue Code, may be exchanged for other stamps of the same kind and in any prescribed denomination, or the value thereof may be refunded, provided that a claim for such exchange or refund, establishing the lawful issuance and ownership of the stamps, is filed with the collector of internal revenue who issued the stamps (a) within two years after the date on which such stamps were lawfully issued or (b) if the stamps were lawfully issued prior to June 24, 1940, within two years from the latter date: Provided, however, That the value of unused stamps which have been destroyed may be refunded upon the filing of a claim as provided herein with proof to the satisfaction of the Commissioner of the destruction of the stamps. Claims for exchange of stamps will be filed on Form 1579 and claims for refund of the value of stamps on Form 843, in accordance with procedure prescribed by the Commissioner. (53 Stat. 303, 54 Stat. 512; 26 U.S.C. 2803)

§ 180.117 Breach of regulations, or failure to use red strip stamps. Any serious breach of the regulations in this part, or failure to use the red strip stamps for the purpose for which they were procured within a period of six months or within such additional extension of time

as may be granted by the collector of customs not satisfactorily explained to the collector of customs, will be grounds for denial of approval of further requisitions for purchase of stamps. (53 Stat. 303; 26 U.S.C. 2803)

RED STRIP STAMPS TO BE AFFIXED IN THE VIRGIN ISLANDS

§ 180.118 Conditions. Red strip stamps may be purchased by importers and consignees to be affixed to containers of distilled spirits by the bottler in the Virgin Islands as hereinafter provided. (53 Stat. 303; 26 U.S.C. 2803)

$ 180.119 Requisition, Form 428. Requisition for the purchase of red strip stamps shall be made by the importer, or his duly authorized agent, on Form 428, in triplicate. Where an importer has given a bottler or another agent power of attorney to sign Form 428, the importer's name must be given, followed by the signature of the person authorized and the words "Attorney in Fact." A copy of the power of attorney must be filed with the collector of customs. The local address of the importer, or his agent, must be given on Form 428 before approval by the collector of customs. All copies of Form 428 shall be submitted to the collector of customs of the district in which the place of business of the importer, or his duly authorized agent, is located. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.120 Statement, Form 1627. The importer, or his duly authorized agent, shall submit with Form 428 for stamps to be sent to the Virgin Islands a sworn statement on Form 1627 that the stamps requisitioned on Form 428 are required to supply existing orders and/or anticipated requirements within 90 days from the date of the requisition and will be used for the quantity of distilled spirits to be imported through the designated port or other port or ports to be designated subsequently on Form 1627-A, as provided by § 180.126. All of the information indicated by the heading of the columns and lines and the instructions printed on the form shall be entered thereon. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.121 Approval of requisition. The collector of customs will approve Form 428 if he is satisfied that the red strip stamps are required for distilled

§ 180.122 Purchase of red strip stamps. Red strip stamps, shall be purchased by the importer, or his duly authorized agent, from the collector of internal revenue of the district in which the place of business of such applicant or his agent is located. The applicant shall forward to the collector of internal revenue the original and copy of the approved Form 428, together with remittance for the stamps. The collector of internal revenue may sell the exact number of stamps requisitioned thereon even though it is necessary to sell portions of sheets. (The remaining portion of the sheet should be returned to the Accounts and Collections Unit of the Bureau scheduled on Form 97, in triplicate, for credit and disposition.) The collector of internal revenue will enter the serial numbers of the stamps issued and stamp the date of sale on both copies of Form 428. He will retain the original copy and send the remaining copy to the proper district supervisor. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.123 Overprinting of red strip stamps. The importer, or his duly authorized agent, shall have indelibly overprinted in plain and legible letters on each of the red strip stamps, at his expense, the name and address of the importer, which shall, for example, be as follows: "John Doe & Co., Baltimore, Md." He shall submit the stamps to the collector of customs, who will verify the overprinting and make an endorsement showing the verification on the retained original Form 1627 submitted with Form 428. The collector of customs will then (a) deliver the stamps to the importer, or his duly authorized agent, for transmission to the bottler in the Virgin Islands; or (b) deliver them to the importer, or his duly authorized agent, for affixing to the containers in customs custody. All strip stamps overprinted with the brand and kind of distilled

spirits (in addition to the name and address of the importer), on hand on the effective date of the regulations in this part, may be used (1) without change for affixing to the containers of distilled spirits for which they were originally purchased, or (2) with the words representing the brand and kind of distilled spirits blocked out, in which event they may be affixed to any brand or kind of distilled spirits. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.124 Marking of cases. Where red strip stamps are affixed in the Virgin Islands, the bottler will plainly and legibly mark the following legend on each case of distilled spirits so stamped:

The red strip stamps required by section 2803, I.R.C., are affixed to the containers of distilled spirits in this case, consisting of bearing the stamps of (Number of containers)

denomination. (Name of bottler)

Stencils or other devices now in use may be utilized until replaced, when they must conform to the above wording. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.125 Endorsement of consumption entries. Upon arrival of the distilled spirits in this country, consumption entries shall have endorsed thereon by the importer, or his duly authorized agent, the following legend:

Red strip stamps required by section 2803, IR.C., were affixed abroad. These stamps were purchased by

(Name of purchaser) upon a requisition Form 428, Purchaser's No. approved by the collector of customs

-----

at

on

(Port where Form 428 was approved)

(Date of approval of Form 428).

Stencils or other devices now in use may be utilized until replaced, when they must conform to the above wording. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.126 Credit of red strip stamps against requisition—(a) Entry of distilled spirits at specified port. Where consumption entries are filed at the port where the requisition was approved, the collector of customs who approved the requisition will credit the Form 428 described in the endorsement on the entry referred to with the number and denomination of red strip stamps shown by the

usual customs examination to have been attached to the containers.

(b) Diversion of spirits to other than specified port. In the event of diversion of all or part of the spirits to a port or ports other than the port specified in Form 1627 filed with the Form 428, the importer shall submit a supplemental statement, in duplicate, on Form 1627-A for each such port or ports. He shall submit them to the collector of customs who approved the Form 428, who will credit the Form 428, retain the original Form 1627-A, and transmit the copy to the collector of customs at the designated port. Where a consumption entry is filed at a specified port other than the port where the requisition was approved, the collector of customs of the port at which consumption entry is filed will promptly notify, on Form 1627-A, the collector of customs who approved the Form 428, of the number and denomination of stamps shown by the usual customs examination to have been attached to the containers. The collector of customs who approved the requisition will credit the Form 428 accordingly. Such distilled spirits may not be released from customs custody until Form 1627-A has been received at the port of diversion or the collector of customs who approved Form 428 has authorized such release. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.127 Irregularities or discrepancies in shipments. In case any irregularities or discrepancies are found, the collector of customs at the port of entry will make demand for redelivery of unexamined packages, and will not release examination or redelivered packages until satisfactory explanation and/or proper corrections have been made. (53 Stat. 303; 26 U.S.C. 2803)

§ 180.128 Unused red strip stamps. Unused red strip stamps returned to the importer by the bottler shall be submitted to the collector of customs who approved the original requisition, Form 428, for noting such fact on the requisition. After proper notation has been made, the collector of customs will return the stamps to the importer and notify the proper district supervisor. If subsequently the importer desires to send such stamps to a bottler or exporter abroad, he must submit them with Form 1627 properly