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ends of justice will be served thereby.*+ (Sec. 2 (g), 49 Stat. 978; 27 U.S.C., Sup., 202 (g))? [Art. IV, sec. 1]

1.41 Briefs and argument. (a) At the conclusion of the hearing, upon request therefor, the hearing officer shall grant leave to file briefs within 5 days after a copy of the transcript of the record is made available. For good cause shown to the hearing officer, the time for filing of briefs may be extended for such additional time as the hearing officer deems necessary. Such briefs shall be typewritten, mimeographed, or printed and three copies thereof shall be filed.

(b) At the conclusion of the taking of the evidence at any hearing, opportunity shall be afforded by the hearing officer to all parties in interest to present oral arguments in support of their respective contentions based on the evidence. In his discretion, having regard to the nature and quantity of the evidence and to the importance of the issues, the hearing officer may limit the time to be consumed by such oral arguments and restrict the number of such arguments to one on behalf of each party to the hearing.

(c) As soon as practical after the conclusion of the hearing, the hearing officer shall prepare his report upon the evidence and shall make and report his findings. A copy of the report shall be served upon all parties, or their attorneys of record. Within 10 days after service of a copy of the findings, any party may file written exceptions to the hearing officer's report or findings, and at the same time file a brief in support of such exceptions. Such exceptions and brief shall be filed in triplicate. Such exceptions shall specify the particular part, or parts, of the record to which exceptions are made and shall specify and state the grounds of such exceptions.

(d) (1) Application for oral argument before the Administrator may be made by any party filing exceptions. Such application must be in writing and must accompany the exceptions. All oral argument before the Administrator shall be held in Washington, D. C., and the Administrator shall set the time and place thereof and the length of time to be allowed for argument, in such manner as he deems shall best serve the ends of justice.

(2) The Administrator for good cause shown may extend the time for filing exceptions, briefs, or making oral argument.** [Art. IV, sec. 2, as amended Dec. 28, 1935]

1.42 Additional evidence. Upon due application to the hearing officer prior to the action of the Administrator, the hearing may, in the discretion of the hearing officer, be reopened by him for the presentation of additional evidence.** [Art. ÎV, sec. 3]

1.43 Findings and orders of the Administrator. The Administrator in making his findings upon the record of the hearing, may for that purpose adopt, with or without modification, the findings of the hearing officer.*+ [Art. IV, sec. 4]

2 Sec. 2 (g), 49 Stat. 879; 27 U.S.C., Sup., 202 (g), makes the provision of secs. 9 and 10, 38 Stat. 722, 723 ; 15 U.S.C. 49, 50, applicable to the jurisdiction, powers, and duties of the Administrator, and to all persons subject to laws administered by him. Pursuant to this authority, the Administrator has prescribed Form FX-74 Subpoena and Form FA-75 Subpoena Duces Tecum. Page 8

**For statutory and source citations, see note to § 1.1.

1.44 Reconsideration of orders. Within 10 days after service of the order of the Administrator denying a permit application or revoking, suspending or annulling a basic permit, or within such further time as the Administrator, in his discretion, may allow, the applicant or the respondent, as the case may be, may file a petition under oath with the Administrator for reconsideration of such order, stating therein the grounds relied upon. Any petition for reconsideration based upon newly discovered evidence shall set forth the nature of such evidence in detail, and shall contain facts indicating that such evidence is in fact newly discovered. A petition for reconsideration of any order may be reviewed by the Administrator, who may designate a hearing officer to examine such application and to report thereon to the Administrator, and thereafter the Administrator may either affirm, modify, or vacate such order, or direct the hearing officer to reopen the hearing for the purpose of receiving newly discovered evidence. In connection with any petition for reconsideration under this section the Administrator may, in his discretion, grant the respondent or applicant permission to appear before him for oral argument. During the period allowed for filing a petition for reconsideration, and until final order is made after such reconsideration, if such petition is filed within the time provided therefor, the permit involved in any order of revocation, suspension or annulment shall continue in force and effect.*1 [Art. IV, sec. 5]

MISCELLANEOUS

1.50 Service of orders and notices. All orders and notices required to be served under this part shall be served in person by any officer or employee of the Administration designated by the Administrator or by any internal revenue or customs officer authorized by the Administrator for the purpose, or by mailing the order by registered mail, addressed to the applicant or respondent at his last known address in the records of the Administrator.*+ (Sec. 4 (f), 49 Stat. 979; 27 U.S.C., Sup., 204 (f)) [Art. V, sec. 1]

1.51 Transcript of proceedings. Transcripts of any hearing held by the Administration shall be supplied by the official reporter at such rates as may be fixed by contract between the Administrator and the reporter. If the proceedings are reported by an employee of the Administration, one copy of the transcript will be supplied to the permit applicant, or respondent, free of cost.*+ [Art. V, sec. 2]

1.52 Power of attorney. No attorney at law or other agent shall appear on behalf of any applicant or respondent unless he is enrolled to practice before the Treasury Department, and has filed with the Administration a power of attorney to represent such applicant or respondent: Provided, That an attorney at law or other agent, if enrolled to practice before the Treasury Department, may be heard if the hearing officer is satisfied that such attorney or agent is authorized to represent the party for whom he appears and such attorney or agent agrees to file a power of attorney at the earliest possible date after the hearing. ** (Art. V, sec. 3]

**For statutory and source citations, see note to $ 1.1.

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1.53 Oaths and affirmations. Any document required by regulations or instructions of the Administrator to be verified, shall be so verified upon oath or affirmation taken before a person authorized by the laws of the United States or by State or local law to administer oaths or affirmations in the State, Territory, or District wherein such document is to be executed.** (Sec. 2 (g), 49 Stat. 978; 27 U.S.C., Sup., 202 (g). See secs. 9, 10, 38 Stat. 722, 723; 15 U.S.C. 49, 50) [Art. V, sec. 4]

1.54 Filing of permits. Every person receiving a basic permit under this part must file the same at the place of business covered by the basic permit, in such manner that the same may be readily available for examination by Government officers at any reasonable hour. Where the permit authorizes operations at more than one location, the original shall be filed at the principal place of business and a photostat thereof at each of the other premises covered thereby.*+ [Art. V, sec. 5]

1.55 Publication of names and addresses. The Administrator will from time to time publish lists of the names and addresses of applicants for permits and of all persons to whom permits have been issued under the Act.*+ [Art. V, sec. 6]

PART 2-NON-INDUSTRIAL USE OF DISTILLED SPIRITS

AND WINE

Sec.

Sec. 2.1 Statutory definitions of "distilled 2.3 Distilled spirits in containers of a spirits” and “wine."

capacity of one gallon or less. 2.2 Application of the term "non-in

dustrial use."

Section 2.1 Statutory definitions of “distilled spirits” and “wine." Section 17 (a) of the Federal Alcohol Administration Act (49 Stat. 989; 27 U.S.C., Sup., 211), for the purposes of that Act, defines the terms "distilled spirits" and "wine" as follows:

(6) The term “distilled spirits” means ethyl alcohol, hydrated oxide of ethyl, spirits of wine, whiskey, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof, for non-industrial use.

(7) The term "wine” means (1) wine as defined in section 610 and section 617 of the Revenue Act of 1918 (U.S.C., title 26, secs. 441 and 441), as now in force or hereafter amended, and (2) other alcoholic beverages not so defined, but made in the manner of wine, including sparkling and carbonated wine, wine made from condensed grape must, wine made from other agricultural products than the juice of sound, ripe grapes, imitation wine, compounds sold as wine, vermouth, cider, perry and sake; in each instance only if containing not less than 7 per centum and not more than 24 per centum of alcohol by volume, and if for non-industrial use. **††

**88 2.1 to 2.3, inclusive, issued under the authority contained in sec. 2 (d), 49 Stat. 977 ; 27 U.S.C., Sup. I, 202 (d).

††In $ $ 2.1 to 2.3, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Regs. 2, Fed. Alc. Adm., Dec. 20, 1935.

Page 10

**For statutory and source citations, see note to 8 1.1.

use.

2.2 Application of the term “non-industrial use.” (a) The following uses of distilled spirits and wine are regarded as “industrial" and therefore will be excluded from any application of the term "non-industrial use" :

(1) Uses of tax-free alcohol by any governmental agency, State or Federal, or any scientific university or college of learning, or by any laboratory exclusively in scientific research, or by any hospital or sanitorium.

(2) Uses of alcohol or other distilled spirits or wine which has been lawfully denatured or otherwise rendered unfit for beverage

(3) Uses of distilled spirits or wine for experimental purposes, and in the manufacture (i) of medicinal, pharmaceutical, or antiseptic products, including prescriptions compounded by retail druggists; (ii) of toilet products; (iii) of flavoring extracts, sirups, or food products; or (iv) of scientific, chemical, mechanical, or industrial products; provided such products are unfit for beverage use.

(b) All other uses are regarded as “nonindustrial.” Among the “nonindustrial" uses are the following: Uses for beverages purposes; or in the manufacture, rectifying or blending of alcoholic beverages; or in the preparation of food or drink by hotel, restaurant, tavern, or similar establishment; or for sacramental purposes; or as a medicine.**

CROSS REFERENCES: Regulations of Food and Drug Administration requiring statement of quantity of alcohol in a drug, see 21 CFR 1.55, 1.57. For United States pharmacopoeia and national formulary alcoholic preparations, see 26 CFR 171.6, 171.7.

2.3 Distilled spirits in containers of a capacity of one gallon or less. Distilled spirits in containers of a capacity of 1 wine gallon or less, except anhydrous alcohol and alcohol which

may

be withdrawn tax free under the Internal Revenue laws, will be deemed to be for nonindustrial use.*+

PART 3—BULK SALES AND BOTTLING OF DISTILLED

SPIRITS

Sec.

Sec. 3.1 Sales of distilled spirits in bulk. 3.3 Warehouse receipts. 3.2 Acquiring or receiving distilled 3.4 Sales by permittees of distilled spirits in bulk.

spirits for industrial use. Section 3.1 Sales of distilled spirits in bulk. (a) It is unlawful for any person to sell, offer to sell, contract to sell, or otherwise dispose of distilled spirits in bulk, for nonindustrial use, except for export or to the classes of persons enumerated in § 3.2.

(b) It is unlawful for any person to import distilled spirits in bulk, for nonindustrial use, except for sale to or for use by the classes of persons enumerated in $ 3.2.

**For statutory and source citations, see note to $ 2.1.

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(c) As used in this part the term "in bulk” means in containers having a capacity in excess of 1 wine gallon.**

*$$ 3.1 to 3.4, inclusive, issued under the authority contained in sec. 2 (d), 49 Stat. 977; 27 U.S.C., Sup. I, 202 (d): interpret sec. 6, 49 Stat. 985, 27 U.S.C.,

Sup., 206.

*In $$ 3.1 to 3.4, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Regs. 3, Fed. Alc. Adm., Dec. 20, 1935.

3.2 Acquiring or receiving distilled spirits in bulk. (a) Persons holding warehousing and bottling permits may, pursuant to such permits, acquire or receive in bulk, and warehouse and bottle, distilled spirits as follows:

(1) If the permittee is a distiller or other person operating an internal-revenue bonded warehouse, he may acquire or receive in bulk, and warehouse and bottle in his bonded premises domestic untax-paid distilled spirits, so far as permitted by the internal-revenue laws. He may also acquire or receive in bulk, and warehouse and bottle, in his tax-paid warehouse, tax-paid domestic and imported distilled spirits.

(2) If the permittee is a rectifier, he may acquire or receive in bulk, and warehouse and bottle, tax-paid domestic and imported distilled spirits.

(3) If the permittee operates a class 8 customs-bonded warehouse, he may acquire or receive in bulk, and warehouse and bottle, imported distilled spirits, so far as permitted by the customs laws.

(b) Persons holding permits as rectifiers of distilled spirits, or as producers and blenders of wine, may, pursuant to such permits, acquire, or receive distilled spirits in bulk for the following uses:

(1) A rectifier may acquire or receive in bulk tax-paid imported or domestic distilled spirits for use in rectifying and blending.

(2) A winemaker may acquire or receive in bulk alcohol or brandy for the fortification of wines.

(c) Any agency of the United States, or of any State or political subdivision thereof, may acquire or receive in bulk, and warehouse and bottle, imported and domestic distilled spirits in conformity with the internal-revenue laws.**

CROSS REFERENCE: For customs warehouses, see 19 CFR Part 17.

3.3 Warehouse receipts. (a) By the terms of the Federal Alcohol Administration Act, all warehouse receipts for distilled spirits in bulk issued on and after August 29, 1935, must require that the warehouseman shall

(1) Package such distilled spirits, before delivery, in bottles labeled and marked in accordance with law, or

(2) Deliver such distilled spirits in bulk only to persons to whom it is lawful to sell or otherwise dispose of distilled spirits in bulk.

(b) Warehouse receipts for distilled spirits, in bulk, issued prior to August 29, 1935, may not be transferred unless they contain one or both of the conditions enumerated in paragraph (a) of this section, but any warehouse receipt for distilled spirits in bulk issued prior to August 29, 1935, which does not contain either of the above conditions, may be exchanged for a receipt conforming to the Act.

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**For statutory and source citations, see note to $ 3.1.

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