which the internal revenue tax has been paid may be bottled especially for export at a tax-paid bottling house, and upon the exportation of the spirits or wines there may be allowed a drawback equal in amount to the tax found to have been paid thereon. (I.R.C. 3179 (b), 53 Stat. 377; 26 U.S.C. 3179 (b))

§ 189.129 Procedure. The bottling of distilled spirits and wines especially for export at a tax-paid bottling house, the storage of the bottled spirits and wines pending exportation, the exportation of the spirits or wines, including the lading thereof on vessels for use as ship's supplies and on aircraft for use as aircraft's supplies, and the allowance of drawback thereon, shall be in accordance with the provisions of Part 176 of this chapter. (I.R.C. 3179 (b), 53 Stat. 377; 26 U.S.C. 3179 (b))

SAFEGUARDING OF STRIP STAMPS AND GOVERNMENT PROPERTY

§ 189.130 Storage in Government cabinet. The proprietor's supply of red strip stamps, the seals, and the records and other Government property when not in use, shall be kept in the Government cabinet, which shall be locked with a Government seal lock, the key to which shall remain at all times in the possession of the storekeeper-gauger. The storekeeper-gauger must not leave the cabinet open, except in his immediate presence, nor give the key thereof to anyone, except another Government officer authorized to receive it. Where it is necessary to open the cabinet at various times during the day, the lock will not be seal-closed until the close business.

PROPRIETOR'S RECORDS AND REPORTS

of

§ 189.131 Record, Form 52D. Every proprietor of a tax-paid bottling house shall keep a record and render a monthly report on Form 52D, "Monthly Record and Report of Tax-Paid Bottling House Operations," of all distilled spirits received, dumped for bottling, bottled, and disposed of at his bottling house.

§ 189.132 Contiguous wholesale liquor dealer room. Where the proprietor of the tax-paid bottling house maintains a contiguous wholesale liquor dealer room and uses it exclusively for products

bottled at the tax-paid bottling house, he shall report on Form 52D all bottled products removed from the tax-paid bottling house and the contiguous wholesale liquor dealer room. If spirits in bulk containers are removed from the tax-paid bottling house, the removal thereof shall also be reported on Form 52D. Where the wholesale liquor dealer room is not used exclusively for products bottled at the tax-paid bottling house, the proprietor shall report all bottled products removed from his tax-paid bottling house on Form 52D kept at such bottling house and shall keep at such contiguous wholesale liquor dealer room Record 52, "Wholesale Liquor Dealer's Record," which shall show all bottled products received and disposed of thereat, including those products transferred from his contiguous tax-paid bottling house. (I.R.C. 2857, 53 Stat. 327; 26 U.S.C. 2857)

§ 189.133 Time of making entries. Daily entries shall be made on Form 52D and Record 52 as indicated by the headings of the various columns and in accordance with the instructions printed thereon, not later than the close of business of the day on which the transactions occur: Provided, That where the proprietor of a tax-paid bottling house keeps a separate record, such as invoices, of the removals of distilled spirits, showing the removal data required to be entered on Form 52D and Record 52, daily entries of removals of goods from his premises may be made on such record not later than the close of business of the following business day, provided such separate record is approved by the district supervisor.

§ 189.134 Separate record of serial numbers of cases. Serial numbers of cases of distilled spirits disposed of by the proprietor of a tax-paid bottling house need not be entered on Form 52D and Record 52, provided the proprietor keeps in his place of business a separate record, approved by the district supervisor, showing such serial numbers with necessary identifying data, including the date of removal and the name and address of the consignee. Such separate record may be kept in book form (including loose-leaf books) or may consist of commercial papers, such as invoices or bills. Such books, in

voices, and bills shall be preserved for a period of 4 years and in such a manner that the required information may be ascertained readily therefrom, and during such period shall be available during business hours for inspection and the taking of abstracts therefrom by revenue officers. Entries shall be made on such separate approved record not later than the close of business of the day on which the transactions occur. The proprietor whose separate record has been approved by the district supervisor shall make a notation in the column on Form 52D and Record 52 for reporting serial numbers as follows: "Serial numbers shown on commercial records per authority dated

§ 189.135 Monthly reports. A full and complete transcript of Form 52D, and, where Record 52 is required to be kept, a full and complete transcript thereof on Forms 52A and 52B (one copy of each), shall be prepared and forwarded to the district supervisor on or before the tenth day of the succeeding month. Where Record 52 is kept, a monthly summary report shall be prepared on Form 338, in duplicate, one copy of which will be retained on file and the original forwarded to the district supervisor, accompanied by Forms 52A and 52B, on or before the tenth day of the succeeding month. Records kept on Form 52D and Record 52 shall be preserved for a period of 4 years and during such period shall be available during business hours for inspection and the taking of abstracts therefrom by the Commissioner or any internal revenue officer. (I.R.C. 2857, 53 Stat. 327; 26 U.S.C. 2857)

§ 189.136 Forms to be provided by users. Record 52 and Forms 52A, 52B, 52D, and 338 will be provided by proprietors at their own expense but must be in the form prescribed by the Commissioner: Provided, That with the approval of the Commissioner the form may be modified to adapt its use to tabulating or other mechanical equipment: And provided further, That where the form is printed in book form, including loose-leaf books, the instructions may be printed on the cover or the flyleaf of the book instead of on the individual form.

STOREKEEPER-GAUGER'S RECORD AND REPORT

OF RED STRIP STAMPS

§ 189.137 Record, Part I, Form 182. Storekeeper-gaugers having custody of strip stamps at tax-paid bottling houses will keep a record of strip stamps received and used on Part I of Form 182. Entries will be made on Form 182 daily, as indicated by the headings of the various columns and lines, and in accordance with the instructions on the form. The record will be kept in bound form, available for inspection by other Government officers.

§ 189.138 Monthly report, Part II, Form 182. At the close of the month or within 5 days thereafter, the storekeeper-gauger will prepare a monthly report on Part II of Form 182, in quadruplicate, of strip stamps received and used during the month. The officer will retain one copy of Part II, available for inspection by other Government officers, furnish one copy to the proprietor, and forward two copies to the district supervisor. The district supervisor will, after audit, forward one copy of Part II of Form 182 to the Commissioner not later than the last day of the month succeeding that for which the report is rendered, and will retain the remaining copy. DISTRICT SUPERVISOR'S MONTHLY

REPORT

§ 189.139 Form 1625. Each district supervisor will render a monthly report of transactions at tax-paid bottling houses on Form 1625 for each State within his district. The entries will be made as indicated by the headings of the columns and lines of the form. The report will be prepared in duplicate and one copy will be forwarded to the Commissioner not later than the last day of the month succeeding that for which rendered. The remaining copy will be retained by the district supervisor.

SALES OF DISTILLED SPIRITS BY PROPRIETORS OF TAX-PAID BOTTLING HOUSES

§ 189.140 Bulk containers. Under the regulations issued pursuant to the Federal Alcohol Administration Act (27 CFR Part 3) distillers and proprietors of internal revenue bonded warehouses, industrial alcohol plants, and industrial alcohol bonded warehouses, including those operating tax-paid bottling houses, may sell or dispose of distilled spirits in

bulk, i. e., in containers having a capacity in excess of 1 wine gallon, (a) to distillers and proprietors of internal revenue bonded warehouses, industrial alcohol plants, and industrial alcohol bonded warehouses, including those operating tax-paid bottling houses; (b) to rectifiers; (c) to proprietors of class 8 customs bonded warehouses (imported spirits only); (d) to winemakers (brandy or alcohol) for the fortification of wine; (e) to any agency of the United States or of any State or political subdivision thereof; (f) for export; (g) on warehouse receipts, conforming to the regulations issued under the Federal Alcohol Administration Act, for distilled spirits in internal revenue bonded warehouses; and (h) for industrial use as follows: For experimental purposes and for use in the manufacture (1) of medicinal, pharmaceutical, or antiseptic products, including prescriptions compounded by retail druggists; (2) of toilet products; (3) of flavoring extracts, sirups, or food products; or (4) of scientific, chemical, mechanical, or industrial products; provided such products are unfit for beverage use. Distilled spirits produced at registered distilleries at a proof in excess of 159 degrees and reduced in the distillery receiving cisterns to not more than 159 degrees and not less than 100 degrees of proof may, however, upon tax-payment be transported for beverage purposes only; and under the regulations issued pursuant to the Federal Alcohol Administration Act distillers, proprietors of internal revenue bonded warehouses and other permittees engaged in the sale or other disposition of distilled spirits for nonindustrial use may not sell or otherwise dispose of distilled spirits (other than alcohol or spirits-fruit) in bulk for industrial use, unless such spirits are shipped or delivered directly to the industrial user thereof. (Sec. 6, 49 Stat. 985; 27 U.S.C. 206)

§ 189.141 Retail containers. Except as provided in the preceding section, proprietors of tax-paid bottling houses may sell or dispose of distilled spirits only in containers having a capacity of 1 gallon or less. All such containers having a capacity of one-half pint or more must conform to the requirements of Part 175 of this chapter. (Sec. 6, 49 Stat. 985; 27 U.S.C. 206)

The propri

§ 189.142 Broken cases. etor may break serially numbered cases in the case storage room or the contiguous wholesale liquor dealer room when necessary for the purpose of filling orders for less than a case of particular brands or kinds of liquors, provided notation of the serial numbers of such cases is made on Form 52D, or on a separate record with identifying data in accordance with § 189.134. Broken cases will be kept separate from full cases, and no case shall be broken unless necessary to fill orders. Composite or partial cases will not be serially numbered.

SPECIAL (OCCUPATIONAL) TAXES

§ 189.143 Wholesale and retail liquor dealer. Proprietors of tax-paid bottling houses who sell distilled spirits or wines must file separate return on Form 11, "Special Tax Return," and pay special (occupational) taxes as wholesale liquor dealer or retail liquor dealer, or both, for the premises at which sales are made, in accordance with the law governing the payment of such special taxes and Part 194 of this chapter. (I.R.C. 3250 (a), (b), 3254 (b), (c), 3270-3272, 53 Stat. 388, 391, 394; 26 U.S.C. 3250 (b), 3254 (b), (c), 3270-3272)

(a),

OPERATING UNDER A NEW INDIVIDUAL OR CORPORATE NAME, OR UNDER DIFFERENT TRADE NAMES OR STYLES

§ 189.144 Qualification of proprietor. Whenever the proprietor of a tax-paid bottling house desires to change the individual or corporate name, or the trade name or style in which the tax-paid bottling house is operated, he must secure approval of such change in the manner prescribed in § 189.46, prior to the commencement of operations: Provided, That where the proprietor's Federal Alcohol Administration Act permit authorizes him to bottle spirits under more than one trade name or style and he has secured certificates of label approval or certificates of exemption from label approval for the labeling of spirits under such trade name or style, and such trade name or style has been specified on an approved Form 27-E, the proprietor may state on his application to dump and bottle, Form 230, his desire to bottle and label the spirits covered by the form under such trade name or style, and upon

approval of the form in the usual manner, he may so bottle and label the particular spirits without filing an amended notice on Form 27-E or changing the name under which the tax-paid bottling house is then qualified and operated.

§ 189.145 Spirits covered by outstanding Forms 230. Whenever a change in the individual or corporate name, or in the trade name or style, takes place at a tax-paid bottling house, the proprietor shall enter in his certificate on both copies of each outstanding Form 230 the total quantity of spirits bottled from each lot prior to the effective date of the change, giving all of the information required by the form. Each of such entries will be followed by a statement, dated and signed by the proprietor, showing that the remainder of the spirits described on the form are to be bottled under the new name. Upon completion of the bottling, the proprietor will complete the execution of his certificate on the forms under the new name, submit them to the storekeeper-gauger for verification, and dispose of the same in the manner prescribed in § 189.90.

§ 189.146 Records. Separate records on Form 52D will not be required for operations under a new individual or corporate name, or under each trade name or style, but the proprietor must note on Form 52D the individual or corporate names, or the trade names or styles, under which operations were conducted during the month and the dates of operation under each. The storekeepergauger will make a similar notation on Form 182.

CHANGE OF PROPRIETORSHIP

§ 189.147 Completion of operations required. When a succession, or actual change, in the proprietorship of a taxpaid bottling house takes place other than a change brought about by operation of law, as by the appointment of an administrator, executor, assignee, receiver, trustee, or other fiduciary, the business of bottling spirits must be completely finished by the person or persons who have been carrying on the business, and all spirits on hand removed from the premises before the business shall be undertaken or begun by the succeeding proprietor, unless by agreement between the outgoing proprietor and the successor

it shall be arranged to transfer from the former to the latter, at the time the transfer of proprietorship becomes effective, all spirits then on hand: Provided, That in each case the notice and other qualifying documents of the successor prescribed by the regulations in this part have been approved as provided herein, to take effect on the day next succeeding that at the close of which the transfer is made. Where a change of proprietorship has been brought about by operation of law, the administrator, executor, assignee, receiver, trustee, or other fiduciary, may not commence operations until the required qualifying documents have been filed and approved.

§ 189.148 Spirits covered by outstanding Forms 230. Where there is a change in proprietorship, and all spirits on hand at the time such change becomes effective are transferred to the successor, the outgoing proprietor shall enter on both copies of each outstanding Form 230 the total quantity of spirits bottled by him, giving all the information required by the form. Each of such entries will be followed by a statement, dated and signed by the outgoing proprietor, showing that the remainder of the spirits described on the form were transferred to his successor. Upon completion of the bottling, the successor shall complete the execution of the forms, submit them to the storekeeper-gauger for verification, and then dispose of the same in the manner prescribed in § 189.90. If an administrator, executor, assignee, receiver, trustee, or other fiduciary succeeds to the business and qualifies to conduct same, he shall make appropriate notation of his succession on both copies of each Form 230, and upon completion of the bottling he shall complete the execution of the forms and otherwise proceed as specified above.

§ 189.149 Disposition of strip stamps. The outgoing proprietor may not transfer any strip stamps to his successor. The stamps must be disposed of as provided in § 189.153. Where the change of proprietorship is to be of a temporary nature, any strip stamps on hand belonging to the outgoing proprietor will be retained in the custody of the storekeeper-gauger pending requalification and resumption of operations by such proprietor.

§ 189.150 Records and reports. Where there is a change in the proprietorship otherwise than by operation of law, the outgoing proprietor shall enter on his Form 52D all spirits transferred to his successor, who shall in turn enter such items on his Form 52D as received from his predecessor. Where an administrator, executor, assignee, receiver, trustee, or other fiduciary succeeds to the business and qualifies to operate the same, he shall make proper notation on Form 52D of his succession.

DISCONTINUANCE OF OPERATIONS

§ 189.151 Disposition of spirits. Upon permanent discontinuance of business, the proprietor will file notice thereof on Form 27-E as prescribed in § 189.154. All spirits on hand must be accounted for on Form 52D, and the disposition of any bulk spirits on hand must be in accordance with the provisions of § 189.140.

§ 189.152 Disposition of indicia bottles. If there are any indicia bottles on hand, the same will be inventoried by the storekeeper-gauger or other officer designated for the purpose by the district supervisor. The disposition of such bottles will be in accordance with the procedure prescribed in Part 175 of this chapter.

§ 189.153 Disposition of strip stamps. All unused red strip stamps, if any, belonging to the proprietor at the time of permanent discontinuance of business will be inventoried by denomination, serial number, and quantity, by the storekeeper-gauger or other officer designated by the district supervisor to perform such duty. The officer will deliver such stamps to the proprietor and take his receipt therefor, in triplicate. When delivering the stamps the officer will advise the proprietor that the value of the stamps, if in quantities of the value of $5 or more, may be refunded, provided that a claim for such refund on Form 843, establishing the lawful issuance and ownership of the stamps, is filed with the collector of internal revenue who issued the stamps (1) within 2 years after the date on which such stamps were lawfully issued or (2) if the stamps were lawfully issued prior to June 24, 1940, within 2 years from the latter date; or that such unused stamps may be destroyed in the presence

of the Government officer and the proprietor thereby relieved from further accountability for the stamps. If the stamps are not surrendered to the collector for refund of their value or are not destroyed, the proprietor must account for the stamps each month by rendering Form 96, in duplicate, to the district supervisor. The officer shall make a notation on the receipt as to the disposition made or to be made of the stamps. One copy of the receipt will be delivered to the proprietor and the original and one copy will be delivered to the district supervisor, who will forward the original to the Commissioner. (Sec. 3, 54 Stat. 513; 26 U.S.C. 3031) [T.D. 5002, Aug. 7, 1940; 5 F.R. 2822]

§ 189.154 Notice, Form 27-E. When all spirits, indicia bottles, and red strip stamps have been lawfully disposed of, the proprietor shall file Form 27-E, in triplicate, with the district supervisor, stating the purpose of the filing thereof to be "Permanent discontinuance of business." The district supervisor will forward the original of the Form 27-E to the Commissioner, with a copy of the report of the Government officer, reflecting compliance with the foregoing provisions of this section.

DUTIES OF STOREKEEPER-GAUGER

§ 189.155 Additional to other duties. Where the storekeeper-gauger assigned to a distillery, an internal revenue bonded warehouse, industrial alcohol plant, alcohol bonded warehouse, or a contiguous rectifying plant, is charged with the duty of supervising operations at a taxpaid bottling house, he will exercise such supervision in connection with his other duties.

§ 189.156 Degree of supervision. The storekeeper-gauger, who supervises the operations of a tax-paid bottling house in addition to his other duties, will maintain such supervision as will enable him to know that no unauthorized mingling of spirits occurs; that only lawfully taxpaid spirits are bottled; and that the requirements of the regulations in this part in other respects are being observed by the proprietor. He will, insofar as his other duties permit, (1) examine tank cars of spirits before they are unloaded to determine that the railroad car seals are intact and that each bears a collec