(12) If the property is abandoned alcoholic beverages, the reports shall also contain the following data: (i) Name of person from whom seized, (ii) qualities and kinds (whether ethyl alcohol or hydrated oxide of ethyl; rye or bourbon or other whiskey and its brand, if any; sparkling or still wine and its color or brand; cordial, brandy, gin, etc.), (iii) proof rating and other qualities shown by test, (iv) number and size of containers, (v) condition (whether fit for medicinal, scientific or mechanical purposes), and basis therefor, (vi) condition for shipping. (13) Other property shall be sufficiently described to enable a decision to be made regarding its desirability and utility.** 35.3 Requests for assignment of property. All requests for assignment of forfeited and abandoned property, for official use, shall be filed promptly with the Director by the head of the Federal Agency desiring the same (and not by the head of any field activity). When property desired by the seizing Federal Agency is in the custody of another Federal Agency which has adopted the seizure for forfeiture, the seizing Federal Agency shall apply to the adopting Federal Agency for delivery of the property in the event of forfeiture, and (a) if forfeited otherwise than by court decree and not ordered by competent authority to be returned to any claimant, the adopting agency shall deliver same to the seizing agency without reference to the Director, but (b) if proceedings are commenced for forfeiture by court decree, the adopting agency shall request the Director to petition the court, before entry of a decree, for delivery of the property to the seizing agency in the event of forfeiture. Each such request (except requests submitted by seizing agencies) must be accompanied by a statement describing the need for the property in question and justifying the request.* 35.4 Disposition of forfeited and abandoned property. All property reported to the Director pursuant to the provisions of § 35.2 shall be disposed of as follows: (a) If such property has been abandoned or forfeited otherwise than by court decree and not ordered by competent authority to be returned to any claimant, the Director will cause the same to be delivered to any Federal Agency which has filed request therefor pursuant to the provisions of § 35.3, and which, in his judgment should receive the property; or, in the absence of such request, clear the same for disposition by the holding agency as otherwise provided by law. (b) If proceedings are being or have been commenced for the forfeiture of the property by court decree, the Director will promptly and before entry of the decree, apply to the court to order delivery of such property: (1) To the seizing Federal Agency if it has theretofore filed a request for such property for its official use; or (2) To any other Federal Agency which has filed a request therefor pursuant to the provisions of § 35.3, and which in the judgment of the Director, should be given such property if the seizing agency has not filed a request therefor; or *For statutory citation, see note to § 35.0. Page 71 (3) To the seizing agency to be retained in its custody, if the Federal Agency which seized such property has not requested it, and no other Federal Agency has requested, and in the judgment of the Director should be given such property, and, if in the judgment of the Director, the property may later become necessary for any Federal Agency for official use. Thereafter, the Director will, within a reasonable time, order such agency to deliver the property to any other Federal Agency which requests and in his judgment should be given such property, or to dispose of it as otherwise provided by law.** 35.5 Availability of appropriations for acquisition and maintenance of forfeited and abandoned property. (a) Section 305 of title III of the Liquor Law Repeal and Enforcement Act (49 Stat. 880; 40 U.S.C., Sup., 304j) reads as follows: The appropriation available to any agency for the purchase, hire, operation, maintenance, and repair of property of any kind shall be available for the payment of expenses of operation, maintenance, and repair of property of the same kind received by it under any provision of this title for official use; for the payment of any lien recognized and allowed pursuant to law, and for the payment of all moneys found to be due any person upon the duly authorized remission or mitigation of any forfeiture; and for reimbursement of other agencies as hereafter provided. The costs of hauling, transporting, towing, and storage of such property shall be paid by the agency which has seized such property or to which it has been abandoned; and, if such property is later delivered to another agency for official use under sections 302, 303, 304 of this title, the latter shall make reimbursement for all such costs incurred prior to the date of delivery to it of such property. (b) When a seizure of property is adopted for forfeiture purposes by another than the seizing agency, the adopting agency shall be entitled to the same reimbursement for costs incurred by it as is allowed the seizing agency under the provisions of law quoted above.** 35.6 Custody of property. The Procurement Division will not in any case undertake custody of the property pending delivery to another Federal Agency. The holding agency shall have custody of, and be responsible for, such property until shipped or delivered to the receiving Federal Agency or otherwise disposed of after clearance by the Director. This provision shall apply to property turned over to the holding Federal Agency by court order to be retained until disposed of upon order of the Director. All questions involving shipping or delivery instructions, reimbursements for costs and like matters, shall be handled between the holding and receiving agencies.*+ 35.7 Status of property assigned under the regulations in this part. Any property, when authorized for official use under the provisions of law and the regulations in this part, loses its identity as abandoned or forfeited property and becomes the property of the United States. When no longer needed for official use, such property shall be disposed of as surplus property in the manner provided in section G of the Regulations Governing the Operation of the Procurement Division, Branch of the Supply.16 *+ *For statutory citation, see note to § 35.0. PART 36-FORFEITED DISTILLED SPIRITS (INCLUDING ALCOHOL), WINE AND MALT BEVERAGES Sec. 36.1 Definitions. 36.2 Disposition by Director of Procurement. 36.3 Lists of distilled spirits; requisitions for transfer. 36.4 Action on requisitions; preference to Government agencies; costs of packing and transportation. 36.5 Samples for testing. 36.6 Failure to meet requirements; report. 36.7 Sale prohibited and prior regulations as to sale superseded. 36.8 Destruction prohibited, except after forfeiture, and prior regulations as to destruction superseded. Sec. Report on Internal Revenue Form 1563, except of spirits unfit for consumption, and of alcohol of less than 160° proof. 36.10 Destruction after forfeiture; exceptions. 36.11 Seizures of less than 5 gallons. 36.12 Analysis of spirits not destroyed. 36.13 Awards to eleemosynary institutions and Government agencies; purposes; denaturation of potable alcohol. 36.14 Destruction of spirits not otherwise disposed of. 36.15 Field records and expediting. 36.16 Reports by district supervisors and collectors of customs. Section 36.1 Definitions. As used in the regulations in this part the terms (a) "Alcohol" means that substance known as ethyl alcohol, hydrated oxide of ethyl or spirit of wine from whatever source or whatever processes produced. (b) "Institutions" and "eleemosynary institution" shall mean any non-profit institution organized and operated for charitable purposes, whose net income does not inure in whole or in part to the benefit of shareholders or individuals, which shall have filed with the Director of Procurement a satisfactory affidavit establishing such status. (c) "Agency" or "Government agency" shall mean any executive department, independent establishment, board, commission, bureau, service, or division, of the United States, and any corporation in which the United States owns all or a majority of the stock.*† *§§ 36.1 to 36.16, inclusive, issued under the authority contained in sec. 9, 49 Stat. 987; 27 U.S.C., Sup., 209. In 88 36.1 to 36.16, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in T.D. 4624, Treasury Department, Jan. 15, 1936 (Bull. 14, Proc. Div., Jan. 31, 1936). 36.2 Disposition by Director of Procurement. The Director of Procurement shall dispose of all distilled spirits (including alcohol), wine, and malt beverages which have been reported to him under the regulations in this part by the seizing agencies in the manner outlined in paragraph (b) of section 9 of the Federal Alcohol Administration Act (49 Stat. 987; 27 U.S.C., Sup., 209 (b)).*† 36.3 Lists of distilled spirits; requisitions for transfer. The Director of Procurement shall maintain lists of all distilled spirits (including alcohol), wine, and malt beverages reported to him, and Government agencies and eleemosynary institutions desiring the transfer thereof shall forward their requisitions in triplicate to the **For statutory and source citations, see note to § 36.1. Page 73 Director of Procurement to cover not more than one year's requirements, specifically stating the kind desired, quantity, place of delivery, and other specifications, if any, required to fill the particular need, and the purpose for which to be used. The heads of the departments or independent establishments of the United States shall submit all requisitions of their agencies.*+ 36.4 Action on requisitions; preference to Government agencies; costs of packing and transportation. The Director of Procurement shall act upon such requests as he may determine proper, giving preference, however, to the requests of Government agencies. The receiving agency or institution shall pay all costs in connection with packing and transportation.** 36.5 Samples for testing. In order to avoid delays and costs incident to possible shipment of distilled spirits (including alcohol), wine, and malt beverages which will not meet the requirements of the requisitioning agency or institution, it shall, except in the case of alcohol for mechanical use, arrange directly with the seizing agency as soon as transfer is authorized to have samples forwarded for testing before shipment of the entire quantity is undertaken.** 36.6 Failure to meet requirements; report. If it is determined from samples furnished that any such distilled spirits (including alcohol), wine, and malt beverages, do not meet the requirements and are not desired, the requisitioning agency or institution will advise the Director of Procurement in order that other disposition thereof may be made.*† 36.7 Sale prohibited and prior regulations as to sale superseded. No forfeited distilled spirits (including alcohol), wine, or malt beverages shall be sold. All prior regulations relating to the sale of forfeited distilled spirits (including alcohol), wine, and malt beverages, and predicated upon other existing law are hereby superseded.*t 36.8 Destruction prohibited, except after forfeiture, and prior regulations as to destruction superseded. No distilled spirits (including alcohol), wine, or malt beverages, seized under any law of the United States, shall be destroyed or otherwise disposed of except after forfeiture and as provided in the regulations in this part. All regulations or instructions relating to destruction or other disposition of seized distilled spirits (including alcohol), wine or malt beverages, prior to forfeiture, are hereby superseded.*f 36.9 Report on Internal Revenue Form 1563, except of spirits unfit for consumption, and of alcohol of less than 160° proof. Upon consummation of summary or administrative forfeiture, or upon receipt of advice of the entry of a court order decreeing forfeiture and directing delivery to the Secretary of the Treasury, of distilled spirits (including alcohol), wine or malt beverages, the chief officer of the seizing agency will prepare Internal Revenue Form 1563 in quintuplet, submitting three copies to the Director of Procurement, sending one copy to the head of his agency, and retaining the remaining copy in his file: Provided, That distilled spirits (includ Page 74 *For statutory and source citations, see note to § 36.1. ing alcohol), wine, or malt beverages not fit for human consumption or for scientific or mechanical purposes, and alcohol of less proof than 160°, need not be reported to the Director of Procurement but shall be destroyed.*+ 36.10 Destruction after forfeiture; exceptions. Domestic wine, malt beverages, and distilled spirits (other than alcohol), which are not produced at a registered winery, brewery, or distillery, will be regarded as unfit for human consumption and shall be destroyed after forfeiture. Alcohol of less proof than one hundred and sixty degrees shall also be destroyed after forfeiture. Foreign wine, malt beverages and distilled spirits (other than alcohol), and domestic wine, malt beverages and distilled spirits (other than alcohol), produced at registered wineries, breweries or distilleries shall not be destroyed, except as provided in § 36.11 or unless analysis by Government chemists shows that they are unfit for human consumption.** 36.11 Seizures of less than 5 gallons. Where the amount of distilled spirits (including alcohol), wine, or malt beverages involved in any seizure is less than 5 wine gallons, Internal Revenue Form 1563 need not be prepared or submitted to the Director of Procurement, and such distilled spirits (including alcohol), wine, or malt beverages will be destroyed immediately after forfeiture: Provided, That distilled spirits (other than alcohol) of any one kind and brand in excess of 1 gallon, shall not be destroyed under this paragraph.*+ 36.12 Analysis of spirits not destroyed. Representative samples of all alcohol, and of other distilled spirits, wine, and malt beverages not destroyed under the authority contained in §§ 36.10, 36.11 shall be taken from the containers in which seized, and shall be analyzed by the nearest Government chemist. A copy of the chemist's report will be attached to the original of Internal Revenue Form 1563 transmitted to the Director of Procurement, and a copy of the report retained in the files of the seizing agency.*† 36.13 Awards to eleemosynary institutions and Government agencies; purposes; denaturation of potable alcohol. Forfeited alcohol may be awarded by the Director of Procurement to eleemosynary institutions for medicinal purposes only. It may be awarded by the Director of Procurement to Government agencies (a) for medicinal or scientific purposes and (b) for mechanical purposes for use by such agencies in instances where, in the judgment of the seizing agency and upon approval of the head thereof, any part or all of a seizure can economically be denatured and transferred. Potable alcohol awarded for transfer to any agency for mechanical purposes shall be denatured in the manner required by the seizing agency, under the supervision of an officer of the seizing agency, prior to release or transfer thereof. The agency designated to receive such alcohol shall purchase all denaturing materials and pay for labor costs incident to such denaturation.*f 36.14 Destruction of spirits not otherwise disposed of. When distilled spirits (including alcohol), wine, or malt beverages which have been reported on Internal Revenue Form 1563 are not assigned to a Government agency for official use, or disposed of by gift to an **For statutory and source citations, see note to § 36.1. Page 75 |