Revision of Distilled Spirits Plant Regulations, 9080-9172 [2011-1956]

Agencies

• Alcohol and Tobacco Tax and Trade Bureau
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 76, Number 32 (Wednesday, February 16, 2011)]
[Rules and Regulations]
[Pages 9080-9172]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1956]



[[Page 9079]]

Vol. 76

Wednesday,

No. 32

February 16, 2011

Part II





Department of the Treasury





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Alcohol and Tobacco Tax and Trade Bureau



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27 CFR Parts 1, 17, 19, et al.



Revision of Distilled Spirits Plant Regulations; Final Rule

Federal Register / Vol. 76 , No. 32 / Wednesday, February 16, 2011 / 
Rules and Regulations

[[Page 9080]]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 1, 17, 19, 24, 26, 28, 30, and 31

[Docket No. TTB-2008-0004; T.D. TTB-92; Re: ATF Notice No. 870 and TTB 
Notice Nos. 83, 86, and 92]
RIN 1513-AA23


Revision of Distilled Spirits Plant Regulations

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

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SUMMARY: In this document, the Alcohol and Tobacco Tax and Trade Bureau 
adopts as a final rule, with some changes, a proposed revision of its 
distilled spirits plant regulations. The revision modernizes the 
requirements for operating distilled spirits plants and includes a 
number of organizational changes to improve the layout of the 
regulatory texts. These changes make the regulations easier to apply, 
thereby facilitating compliance by distilled spirits plant proprietors 
and allowing those proprietors to operate in a more efficient manner. 
The revision also incorporates plain language principles in order to 
improve the clarity and readability of the regulatory texts.

DATES: Effective Date: This final rule is effective on April 18, 2011.

FOR FURTHER INFORMATION CONTACT: Christopher M. Thiemann, Regulations 
and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street, NW., Suite 200E, Washington, DC 20220; telephone 202-453-2265.

SUPPLEMENTARY INFORMATION: 

Distilled Spirits Plants in General

    Distilled spirits taxation is a specialized area of Federal law. 
The following background material provides basic information about how 
distilled spirits plants operate and are regulated, and how taxes on 
distilled spirits are collected, under Federal law.

Basic Definitions

    Distilled spirits. The term ``distilled spirits'' refers to those 
products that contain ethyl alcohol and are generally the result of 
distillation of fermented materials. This term does not apply to wine 
and beer, which generally are products of fermentation alone. Examples 
of distilled spirits products are vodka, whiskey, gin, brandy, 
cordials, liqueurs, and flavored brandies.
    Distilled spirits plants. The term ``distilled spirits plant'' 
(DSP) refers to a plant at which distilled spirits are manufactured or 
produced, aged or stored, or packaged or bottled, for either beverage 
or industrial use.

Federal Laws and Regulatory Authority

    Federal law prohibits the manufacture or production of distilled 
spirits in the United States at other than a registered DSP for which a 
permit has been issued by the Alcohol and Tobacco Tax and Trade Bureau 
(TTB). While Federal law allows for the limited home production of wine 
and beer, no such provision exists for distilled spirits.
    DSPs are regulated under the provisions of two laws, the Internal 
Revenue Code of 1986 (the IRC, codified as title 26 of the United 
States Code (26 U.S.C.)) and the Federal Alcohol Administration Act 
(the FAA Act, codified in title 27 of the United States Code (27 
U.S.C.)). The IRC imposes an excise tax on distilled spirits, requires 
the registration of DSPs, mandates DSP proprietors to obtain permits 
not otherwise required by the FAA Act, and imposes strict controls over 
the operation of DSPs. The FAA Act imposes a requirement to obtain a 
basic permit and contains various consumer-protection provisions, 
including provisions related to the formulation, labeling, and 
advertising of alcohol beverages. The FAA Act also prohibits various 
types of trade practices within the alcohol industry, including DSPs.
    Both the IRC and the FAA Act authorize the Secretary of the 
Treasury to prescribe regulations to carry out and enforce their 
provisions regarding the establishment and operation of DSPs. Those 
regulations are administered by TTB. The TTB regulations that concern 
DSPs, which are the subject of this document, are contained in part 19 
of title 27 of the Code of Federal Regulations (27 CFR part 19).

Major Regulatory Provisions

    A DSP consists of one or more of the following: Production, 
storage, processing, denaturation, and bottling facilities for beverage 
and industrial use distilled spirits. A DSP may be a large and complex 
plant having all of those facilities or may be a simple storage 
facility consisting of only one building or a small bottling facility 
with storage facilities. Production facilities are usually accompanied 
by storage facilities. Bottling facilities are often accompanied by 
storage facilities, and in fact must by law be accompanied by either a 
production facility or a storage facility. However, large storage 
facilities are often not accompanied by bottling or production 
facilities.
    Registration. Before commencing any of the operations discussed in 
the previous paragraph, the IRC requires that the DSP proprietor must 
first obtain approval of a notice of registration. This application for 
registration includes documents to set up distilling apparatus, 
environmental impact forms, personnel questionnaires, authorized 
signatories, and a statement of security.
    Permits. Under the FAA Act, all persons must file for, and obtain, 
a basic permit before engaging in the business of:
     Distilling spirits;
     Rectifying, blending, or bottling (processing) distilled 
spirits; or
     Warehousing and bottling distilled spirits.
    To maintain control over the industrial use of distilled spirits, 
the IRC requires that an operating permit be obtained before commencing 
the production, warehousing, or bottling of alcohol for industrial use. 
Specifically, a permit is required for:
     Distilling of spirits for industrial use;
     Bonded warehousing of spirits for industrial use;
     Denaturation of spirits;
     Bonded warehousing of spirits (without bottling) for 
nonindustrial use;
     Bottling or packaging of spirits for industrial use; or
     Any other distilling, warehousing, or bottling operations 
not required to be covered by a basic permit under the FAA Act.
    DSP bonded premises. The physical premises of a DSP are divided 
into two technical categories--``bonded premises'' and unbonded 
``general premises.'' All activities relating to the distilling, 
storing, and processing (blending and mixing) of distilled spirits must 
be conducted on bonded premises. Most activities relating to taxpaid 
alcohol beverages conducted at the distilled spirits plant must be 
conducted on general premises.
    Operations as a distiller, warehouseman, or processor may be 
conducted only on the bonded premises of a DSP by a person who is 
qualified to carry on such operations under 27 CFR part 19 and who has 
obtained the FAA Act basic permits required by 27 CFR part 1, or, as 
appropriate, the operating permit required by part 19. However, certain 
other activities, such as those of apothecaries, customs bonded 
warehousemen, manufacturers of nonbeverage products, and users of 
specially denatured alcohol (SDA), may be carried on outside DSPs.

[[Page 9081]]

    The physical continuity of a DSP must be unbroken except for 
separations that may include public waterways, thoroughfares, or 
carrier rights-of-way. In most instances, DSPs are also prohibited from 
being located in a dwelling house, in a shed, yard, or enclosure 
connected with a dwelling house, on board a vessel or boat, on premises 
where beer or wine is produced, in a retail liquor establishment, or 
where any other business is conducted.
    Bonds. Normally, the distilled spirits tax is not collected while 
spirits are held on the ``bonded'' premises of a distilled spirits 
plant. The potential tax liability of the spirits held on bonded 
premises is guaranteed by an operations bond, and taxable removals from 
the bonded premises of a DSP are covered by a withdrawal bond.
    The bond is a legally binding, written agreement involving three 
parties--the taxpayer, the surety (insurance or bonding company), and 
the U.S. Government. The purpose of the bond is to protect the 
financial interest of the Government. If for any reason the taxpayer 
fails to pay the tax, the surety is then obliged to pay the tax, up to 
the face amount (limit) of the bond.
    Other requirements. In addition to registering, obtaining a permit, 
and providing a bond, DSP proprietors are required to comply with a 
number of regulatory provisions relating to: Plant security; 
production, storage, and processing of spirits; recordkeeping; 
inspection and audit; and filing of reports. These requirements are 
reflected in the part 19 regulations.
    Recordkeeping accounts. All operations at a DSP are accounted for 
within four recordkeeping accounts--production, storage, denaturation, 
and processing. Since the facilities (tanks and rooms) of a DSP may be 
used for multiple purposes, the accountability for spirits must be 
maintained of necessity by appropriate records within the four accounts 
instead of by physical separation.
    Payment of taxes. The Federal excise tax on distilled spirits 
attaches to the spirits as soon as they are produced, and the distilled 
spirits plant is held liable for the tax on all distilled spirits held 
in the bonded premises. The amount of Federal excise tax that a 
distilled spirits plant proprietor must pay is based on the taxable 
removal of the spirits from the bonded premises. There are two basic 
methods of paying the tax on distilled spirits withdrawn from bonded 
premises--deferred payment and prepayment. Under the deferred payment 
system, the proprietor may withdraw spirits from bond after tax 
determination but before payment of tax. The excise tax is paid 
pursuant to a semimonthly tax return based on the amount of spirits 
removed from bond during each return period. Under the prepayment 
system, the proprietor must pay the distilled spirits tax after tax 
determination but before withdrawal of the spirits from bonded 
premises. Most DSP proprietors use the deferred payment system.
    Currently, the Federal excise tax rate on distilled spirits is 
$13.50 per proof gallon. The term ``proof gallon'' is unique to this 
particular commodity and means: A liquid gallon at 60 degrees 
Fahrenheit that contains 50 percent ethyl alcohol by volume.
    Although the tax rate for distilled spirits is $13.50 per proof 
gallon, many distilled spirits products are actually taxed at a lower 
rate. Many products contain added wine and/or flavors, and the IRC at 
26 U.S.C. 5010 provides a tax credit for the wine and flavors content 
of the product. These credits effectively reduce the rate of excise tax 
paid on distilled spirits products that contain wine or flavors.
    Nontaxable transactions. Under the IRC, certain types of shipments 
to and from a distilled spirits plant are permitted without payment of 
tax. Examples include:
     Shipments of bulk (unbottled) spirits from one registered 
distilled spirits plant to another. (Bottled spirits are not eligible 
for untaxed transfer in bond between plants.)
     Shipments of bulk imported spirits from U.S. Customs and 
Border Protection custody to a distilled spirits plant. (Only bulk 
imported spirits are eligible for this type of transfer.)
     Direct exports of products from the United States.
     Shipments to users of industrial alcohol (certain permit 
holders who use alcohol for medical, research, or industrial purposes).

Rulemaking History

ATF Notice No. 870

    On November 30, 1998, TTB's predecessor agency, the Bureau of 
Alcohol, Tobacco and Firearms (ATF), published in the Federal Register 
(63 FR 65720) a notice of proposed rulemaking, Notice No. 870, that 
solicited comments on proposed changes to several sections of the 
regulations in 27 CFR part 19. The proposed changes included: (1) 
Delegations of authority, (2) removing a special tax provision, (3) 
liberalizing the requirement for approval of certain changes in plant 
personnel or procedures, (4) reducing the paperwork when plant premises 
are alternated with other premises, (5) providing for alternation of 
distilled spirits plant and brewery premises, (6) allowing denaturation 
and manufacture of articles to be done in a single, unified process, 
(7) specifying marks for packages of industrial spirits withdrawn 
taxpaid, (8) clarifying regulations that refer to a transfer record, 
and (9) incorporating into the regulations a provision of an ATF 
Industry Circular regarding alcohol fuel.
    In addition to these proposed changes, ATF invited comments 
regarding the general recordkeeping system for distilled spirits plants 
prescribed in part 19.
    In response to Notice No. 870, ATF received extensive comments from 
the Distilled Spirits Council of the United States (DISCUS), a trade 
association representing distilled spirits industry members with 
interests in the U.S. market. While DISCUS provided comments on the 
specific issues raised in Notice No. 870, it also asked that ATF 
consider a broad range of regulatory changes to part 19, essentially 
requesting the initiation of a complete revision of that part. In 
support of its request, DISCUS provided ATF with sample regulations 
that consisted of a ``markup'' version of the part 19 texts, along with 
numerous copies of variances (alternate methods or procedures) that ATF 
approved for members of the distilled spirits industry over the years. 
The amendments requested by DISCUS covered a broad range of issues and 
included reduced recordkeeping requirements for distilled spirits 
plants, greater use of commercial records, reduced reporting 
requirements, reduced requirements for reporting changes affecting the 
DSP's registration, liberalized use of DSP premises, storage of 
distilled spirits on bonded premises through ``constructive 
segregation'' based on commercial records, and inclusion of alternative 
method or procedure approvals in the regulations for universal 
applicability.
    ATF also received comments from Equistar Chemicals, LP in response 
to Notice No. 870. Equistar is a producer of industrial ethyl alcohol, 
and its comments addressed issues in Notice No. 870 related to 
industrial alcohol. Equistar also commented on other issues affecting 
distilled spirits plants, such as the amendment of plant registrations, 
recordkeeping, denaturation, and gauging.
    After reviewing the comments received in response to Notice No. 
870, ATF concluded that the amendments proposed in that notice were not 
extensive enough to address the changes

[[Page 9082]]

that had taken place in the industry since the last major revision of 
the distilled spirits plant regulations, which took place when ATF 
implemented the Distilled Spirits Tax Revision Act of 1979, commonly 
referred to as ``All in Bond.'' No further action was taken by ATF in 
regard to this matter.

TTB Notice No. 83

    As the successor to ATF, TTB undertook a comprehensive review of 
the distilled spirits plant regulations in part 19, taking into account 
the comments received in response to Notice No. 870, intervening 
statutory changes, and other issues that had come to the attention of 
TTB that appeared to warrant changes to the part 19 regulations. As a 
result of this review, on May 8, 2008, TTB published in the Federal 
Register (73 FR 26200) Notice No. 83, a notice of proposed rulemaking 
that set forth a complete revision of part 19 and superseded Notice No. 
870.
    The preamble of Notice No. 83 contained a detailed discussion of 
the proposed changes reflected in the revised part 19 texts. The 
following points are noted regarding the proposed changes:
    1. Each section of the regulations was examined for clarity and 
rewritten as necessary, with application of plain language principles 
(use of active voice and shorter sentences and paragraphs, elimination 
of jargon and unnecessary technical terms, and use of gender-neutral 
language) where practicable. Many lengthy sections of the regulations 
were split into multiple sections to make them more understandable and 
readable. In addition, in some cases textual information was converted 
to a table format for easier reference.
    2. The individual sections within part 19 were rearranged into a 
more logical order. In some cases this involved the reordering of 
sections within a subpart, and in other cases this involved the 
creation of a new subpart to set forth regulations involving the same 
general subject matter that previously was dealt with in more than one 
subpart. For example, prior to this revision, information regarding 
distilled spirits taxes was found in two separate subparts, subpart C 
(containing basic information about distilled spirits taxes) and 
subpart P (containing information regarding determination of taxes and 
the filing of tax returns); the revision combines these provisions in 
one new Subpart I, Distilled Spirits Taxes. In addition, duplicative 
sections were eliminated.
    3. Amendments to the IRC made by the Taxpayer Relief Act of 1997 
were incorporated into the regulations, including provisions whereby: 
(a) Imported bottled spirits that were taxpaid through Customs may be 
returned to bond at a DSP and a claim for a credit, refund, or 
abatement may be filed for the return, (b) beer to be used in the 
production of spirits can be received at a DSP without payment of tax, 
and (c) taxpaid beer can be removed from a brewery and shipped to a DSP 
with refund or credit of tax.
    4. The revised regulations allow for expanded use of letterhead 
applications and letterhead notices for purposes of amending a 
registration or permit in lieu of filing an entire new registration or 
permit application.
    5. The regulations were revised to allow for the use of mass flow 
meters that meet certain volumetric tolerances for tax determination, 
as well as the use of other bulk gauges for general gauging, without 
prior approval from TTB.
    6. In view of the increased number of limited liability companies 
(LLCs) and limited liability partnerships (LLPs) that own and operate 
DSPs, references to these types of business entities were included in 
the provisions that govern the qualification of DSPs.
    7. The revised regulations include the addition of a provision that 
would permit the alternation of DSP premises with adjacent brewery 
premises.
    8. The revised regulations require alcohol fuel plants (AFPs) to 
file an application in order to receive spirits in bond. This corrected 
an oversight in the regulations because 26 U.S.C. 5005(c)(1) 
establishes tax liability during a transfer in bond based on an 
application filed by the consignee. Under this change, AFPs would be 
required to file the same applications as regular DSPs.
    9. The revised regulations eliminate the requirement that 
proprietors file form TTB F 5110.34, Change in Plant Status, when DSP 
premises are curtailed or extended. Under the revised regulations, the 
proprietor would document curtailment or extension with a record kept 
at the plant or by commercial records.
    10. The revised regulations retained the requirement that the 
closure on each container requires breaking to gain access to the 
contents of the container. However, the requirement that a portion of 
the closure remain on the container after its breakage was eliminated, 
because that particular feature is not a requirement of the underlying 
IRC provision at 26 U.S.C. 5301(d).
    11. The revised regulations clarify that required records may 
consist of documents created in the ordinary course of business rather 
than records created to expressly meet the requirements of part 19, if 
those documents contain the information that the regulations require. 
However, the revised regulations do not include a DISCUS recommendation 
that we eliminate most of the internal records of activities within a 
DSP, such as the production account, the storage account, and the 
processing/denaturation account, because the internal accounts are 
specifically called for in the IRC and they are discussed in the 
legislative history relating to ``all-in-bond.''
    Notice No. 83 invited the public to make comments on the proposed 
regulations by August 6, 2008. The comment period for Notice No. 83 was 
extended twice. On May 8, 2008, after a request from an industry 
member, TTB published in the Federal Register Notice No. 86 (73 FR 
44952), which extended the comment period by 90 days. On October 29, 
2008, after a request from DISCUS, TTB published in the Federal 
Register Notice No. 92 (73 FR 64287), which extended the comment period 
by an additional 90 days. The comment period for Notice No. 83 
therefore closed on February 3, 2009.

Comments Received in Response to Notice No. 83

    In response to Notice No. 83, TTB received 7 comments. Six of the 
comments expressed strong support for the revisions to part 19 and 
commented on specific areas of agreement and recommendations for 
further changes. One commenter asked a specific question regarding a 
particular regulatory requirement. Descriptions of the comments and TTB 
responses follow.
Comment 1
    A comment from a manufacturer of nonbeverage products was 
supportive of TTB's efforts to modernize the DSP requirements. The 
commenter specifically addressed the application of part 19 to cosmetic 
and topical over-the-counter drug products such as instant hand 
sanitizers and skin cleansers. The commenter noted that its products 
are subject to several Federal laws and to regulation by the FDA as 
well as TTB.
    The commenter stated that due to growth in the hand sanitizer 
product category, TTB should create category-specific regulations, 
similar to the regulations for vinegar plants and alcohol fuel plants.
    TTB Response: TTB notes that vinegar plants and alcohol fuel plants 
differ from cosmetics containing alcohol because vinegar as an end 
product does not contain alcohol, and alcohol fuel plants are created 
as a category by statute. The commenter is correct that

[[Page 9083]]

TTB does not have specialty categories for denatured alcohol products 
in its regulations. Denatured alcohol products include cosmetics, 
flavors, fuel, over-the-counter products, medical products, laboratory 
products, industrial products such as solvents and cleaners, and food 
ingredients, just to name a few. Creating category-specific regulations 
would create an increased regulatory burden on those entities that 
manufacture multiple types of denatured products. Also, adding new 
nonbeverage product categories within part 19 is outside the scope of 
Notice No. 83, and it would be inconsistent with the Administrative 
Procedure Act to make such substantive changes not proposed in Notice 
No. 83 in this final rule document without notice and comment. However, 
we agree that hand sanitizer products have grown as a market segment 
since their introduction in 1988. We currently are undertaking a 
rulemaking project relating to 27 CFR Part 20, Distribution and Use of 
Denatured Alcohol and Rum, and we will retain these comments for 
consideration in that project.
    The commenter also noted that it has several production and 
recordkeeping processes in place that have been validated by the FDA, 
but that are not recognized as meeting TTB requirements without other 
TTB mandated records and reports.
    TTB Response: TTB has a unique responsibility to protect the 
revenue while FDA regulations are designed to ensure safe products, not 
to protect the revenue. Thus, TTB's reporting and recordkeeping 
requirements are different from those of FDA.
    The commenter listed several proposed changes that it suggests 
apply specifically to cosmetic and over-the-counter producers:
     ``Exempt companies from monthly reporting if they are only 
purchasing and using [specially denatured alcohol (SDA)] * * *. 
Document the yearly usage of SDA alcohol on the User's Report of 
Denatured Spirits (TTB Form 5150.18).''
    TTB Response: Companies that only purchase and use SDA may operate 
under the provisions of 27 CFR part 20. Under Sec.  20.264(b), SDA 
users are required to file an annual report as opposed to a monthly 
report. However, monthly reporting is a requirement for DSPs because it 
provides information to TTB to ensure that the revenue is protected. 
TTB would not know what operations were occurring at a DSP if reports 
were not filed on a more frequent basis.
     ``Allow denaturants other than the specified SDA 
formulations based on pre-approval of the TTB through submission of 
formulas on form 5150.19.''
    TTB Response: This process is already permitted under 27 CFR 21.91.
     ``Maintain Special Tax Stamp (form 5630.6A).''
    TTB Response: The requirement to maintain a special tax stamp was 
repealed by the American Jobs Creation Act of 2004. Therefore, we have 
no authority to require this.
    The commenter also stated that the quarterly physical inventory of 
denatured spirits required in proposed Sec.  19.394 is unnecessary due 
to the records and systems maintained to coordinate inventory of raw 
materials and cosmetic and over-the-counter (OTC) products. The 
commenter recommended that manufacturers of topical OTC drugs and 
cosmetics be required to allow TTB to access inventory records and 
perform a physical inventory annually without a date stipulation. We 
note that DISCUS made a similar recommendation in its comments to ATF 
Notice No. 870, but we did not adopt this recommendation in Notice No. 
83.
    TTB Response: The shorter time period between quarterly versus 
annual inventories makes it easier for both TTB and a proprietor to 
reconcile discrepancies and thereby protect the revenue. A proprietor 
may continue to apply for approval of an alternate procedure pursuant 
to Sec.  19.26, and TTB may grant such an alternate procedure if 
appropriate.
    The commenter stated that the serial number for records required in 
various subparts should not include the requirement that the serial 
number commence with ``1'' at the beginning of each calendar or fiscal 
year. The commenter proposed that as long as the serial or identifying 
number meets the requirements of Sec.  19.572, concerning the format of 
records, it should be considered satisfactory.
    TTB Response: We agree that a unique identifier is sufficient to 
identify a particular record, and we have amended Sec. Sec.  19.618 and 
19.620 in this final rule document to allow unique identifiers that do 
not necessarily begin with the number ``1'' each year.
    Finally, the commenter recommended amending the regulations to 
allow for letterhead or single form notification of changes to the 
permit regarding an address change that does not involve a physical 
move.
    TTB Response: We agree that a letterhead notice is sufficient to 
notify TTB of a change of address that does not involve a physical move 
or any change in physical area or layout of a DSP. We have added a new 
section, Sec.  19.691, to address changes of address not involving a 
change in location.
Comment 2
    A manufacturer of nonbeverage products stated that the changes 
proposed by TTB would indeed help streamline the many processes 
involved in the operations of a distilled spirits plant. The commenter 
listed eight specific areas of the part 19 revision that it 
particularly supported:
     The use of plain language while minimizing the use of 
jargon and technical terms;
     The restructuring of information to consolidate major 
topics and bring like information together;
     The expanded use of letterhead notices for reporting 
certain changes such as changes in officers and directors;
     The use of a single area operations bond to cover all of 
the proprietor's plants in the United States;
     The use of mass flow meters for all required bulk gauges 
at a DSP;
     The allowance for a unified process for denaturation and 
article manufacture;
     The allowance for a single gauge measurement when filling 
containers from tanks; and
     The ability to file computer-generated reports and forms.
    In addition, the commenter noted three areas of regulation where it 
suggested further changes.
    First, the commenter requested that TTB allow an average tare (that 
is, the weight of an empty package) to be used for gauging individual 
packages (drum, barrel, or similar container of spirits (see the 
definition of ``package'' in Sec.  19.1). The commenter noted that the 
variance for package tare is often less than 0.25 lb.
    TTB Response: We believe that the degree of variance can be 
significant. In the preamble to Notice No. 83, we addressed a similar 
recommendation made in comments to ATF Notice No. 870 and we explained 
that we did not adopt this recommendation in the proposed rule because 
TTB requires an accurate gauge of spirits that are withdrawn from 
bonded premises. Accordingly, we are not adopting the commenter's 
proposal in this final rule. The requirement that the proprietor 
establish the actual tare of each package to be withdrawn from bond 
appears at Sec.  19.288.
    Second, the commenter suggested that TTB allow minimum amounts of 
denaturants rather than specific amounts of denaturants.
    TTB Response: Part 21 of the TTB regulations sets forth specific 
formulas

[[Page 9084]]

for denatured spirits, not part 19, and therefore such a change is not 
appropriate in this rulemaking action. We have noted this comment for 
possible future rulemaking involving part 21.
    Third, the commenter suggested that temporary permit delivery 
addresses be allowed through a letterhead notification process. The 
commenter noted that temporary situations, such as road construction or 
utilities maintenance, occasionally require deliveries to alternate 
addresses such as a side entrance, but that the current regulations 
require permittees to amend their permits for each address change.
    TTB Response: We agree that there should be provisions for 
temporary changes to a delivery address, without a change in the 
location or street address of the plant, and that a letterhead notice 
provides sufficient notice to TTB. Accordingly, for the final rule we 
have incorporated this change in the language of Sec.  19.118
Comments 3 and 4
    TTB received two comments from a large ethanol producer that holds 
a number of DSP and Alcohol Fuel Plant (AFP) permits. The commenter 
noted that it supports the streamlining of procedures and the overall 
organizational improvements proposed in the revisions to part 19.
    In its first comment, the commenter referred to two areas of the 
Notice No. 83 preamble with which it disagrees. Both areas relate to 
TTB's interpretation of 26 U.S.C. 5181, which relates to AFPs. First, 
the commenter stated that it believes ``the interpretation that an AFP 
permit may be granted to a facility that will solely receive and not 
produce spirits is inconsistent with the law that established the 
AFP.'' Similarly, the commenter suggested that TTB should not allow the 
establishment of an AFP for the purpose of receiving imported alcohol.
    TTB Response: As noted in Notice No. 83, while the Bureau had 
formerly interpreted 26 U.S.C. 5181(a)(1) to mean that all alcohol fuel 
plants must produce distilled spirits, it is now the position of the 
Bureau that a person may establish an AFP solely for the receipt and 
processing of distilled spirits for fuel use. We also noted that we had 
already set the precedent that receipt of distilled spirits counts as 
``production'' at an AFP (see former Sec.  19.956, which treated 
receipts as production.) Section 5181 of the IRC was established to 
generally encourage and promote (through regulation or otherwise) the 
production of alcohol for fuel purposes. As fuel needs have changed 
dramatically, the goal of the Bureau's AFP regulations is to ensure 
adequate supplies of fuel ethanol. We find that it is appropriate to 
read the applicable law, 26 U.S.C. 5181, as permitting facilities to 
qualify as AFPs even when their production operations consist solely of 
blending ethanol with authorized denaturants for the purpose of 
producing alcohol fuels. Consistent with the goal stated above, as well 
as 26 U.S.C. 5232 which provides for the receipt of imported spirits by 
DSPs, TTB does not distinguish, in this case, between domestically 
produced and imported ethanol.
    In its second comment, the commenter raised specific issues that it 
believed should be addressed in the revision of part 19, and provided 
markups of the various regulatory sections involved in its 
recommendations. Specifically, the commenter's suggestions and TTB's 
responses to those suggestions are as follows:
     In addition to the performance limits for use of mass flow 
meters provided in the proposed regulation, suggested providing 
specific performance limits for volumetric flow meters and other 
equipment such as seals and density meters.
    TTB Response: The new part 19 regulations, at Sec.  19.284, allow 
the use of mass flow meters for tax determination purposes, as well as 
volumetric determinations, and establish specifications for their 
performance. In regard to such equipment as seals and density meters, 
the Bureau does not receive a significant number of requests for the 
use of these types of equipment and evaluates them, when necessary, on 
a case-by-case basis.
     Suggested that gauging by accurate flow meter and by 
accurate density meter, as proposed in Notice No. 83, be reflected in 
part 30 of the TTB regulations. The commenter recommended a direct 
final rule for part 30 to harmonize with the updated part 19.
    TTB Response: The new part 19 regulations, at Sec.  19.188, allow 
either the use of the gauging methods specified in part 30 or the use 
of accurate meters, so further changes to this part are unnecessary in 
regard to distilled spirits. We do not believe it is appropriate to 
amend part 30 because part 30 applies to other products in addition to 
distilled spirits. Additionally, any such amendment would be beyond the 
scope of this rulemaking action.
     Made several suggestions about receipt of denatured 
spirits at a DSP and return to bonded premises. One such suggestion was 
that denatured spirits should be permitted on bonded premises for 
comingling, storage, or withdrawal even after they had been previously 
removed.
    TTB Response: The IRC in section 5215 permits distilled spirits on 
which tax has been determined to be returned to bonded premises only 
for destruction, denaturation, redistillation, reconditioning or 
rebottling. Further, IRC section 5612(a) states that, with some 
exceptions not applicable here, no distilled spirits on which tax has 
been paid or determined shall be stored or allowed to remain on the 
bonded premises of any distilled spirits plant, under the penalty of 
forfeiture of all spirits found. The TTB regulations in part 19 provide 
alternatives, such as transfers in bond and alternations of premises.
     Suggested that fuel alcohol produced at an AFP be 
considered completely denatured alcohol.
    TTB Response: Section 5181 of the IRC, which provides authority for 
TTB to permit AFPs, requires that distilled spirits withdrawn must be 
rendered ``unfit for beverage use.'' Section 5214(a)(1) of the IRC 
authorizes the withdrawal of distilled spirits from a DSP after 
denaturation for specific purposes, and section 5214(a)(12) separately 
authorizes the withdrawal free of tax for distilled spirits produced 
under section 5181. The IRC does not refer to alcohol produced at an 
AFP as ``denatured'' and clearly intends to distinguish the term 
``denatured '' as used for DSPs in general and ``unfit for beverage 
use'' as used for alcohol produced for fuel use under the authority of 
section 5181.
     Suggested the proposal of a direct final rule for part 21 
of the TTB regulations dealing with completely denatured alcohol to 
harmonize the regulations for fuel produced by an AFP and CDA 20 
produced by a DSP.
    TTB Response: This final rule, which covers proposed substantive 
changes to part 19, is not an appropriate venue for making changes to 
other parts of the TTB regulations. We may consider this proposal in 
future rulemaking.
     Suggested allowing AFPs to send samples of undenatured 
spirits to a lab off the bonded premises similar to the procedures for 
DSPs.
    TTB Response: TTB is considering making a number of substantive 
changes to the regulations governing AFPs in a separate rulemaking 
initiative. We will consider this proposal in that rulemaking action.
     Suggested removing the requirement for TTB approval for 
sending samples to a recognized commercial laboratory.

[[Page 9085]]

    TTB Response: The Bureau is not adopting this suggestion as TTB 
needs to approve a DSP's transfer activities on a case-by-case basis. 
We look at a number of facts, including risk to the revenue and 
compliance history of the DSP.
     Suggested that TTB remove mark requirements found in 
proposed Sec.  19.495 for bulk conveyances.
    TTB Response: Section 1263 of title 18 of the U.S.C. (18 U.S.C. 
1263) provides criminal sanctions for shipping distilled spirits 
without certain information: The name of the consignee, the nature of 
its contents, and the quantity contained therein. The requirements of 
Sec.  19.495 are consistent with this statute. We note that both the 
statute and Sec.  19.495(b) allow shippers to supply the information on 
a document as opposed to marks on the conveyance.
     Suggested changing proposed Sec.  19.11 to allow time for 
verification of credentials in order to comply with potential site 
security and Homeland Security issues.
    TTB Response: We do not adopt the suggestion because 26 U.S.C. 
5203(b) prescribes the requirement for the right of immediate entry and 
examination, and TTB officers must be able to access facilities 
whenever necessary to protect the revenue or to determine if internal 
revenue laws have been violated. TTB is also concerned with site 
security issues and is willing to work with proprietors on site 
security and Homeland Security issues as they arise.
     Suggested changing the alternate method or procedure 
process to include approval for all permit holders.
    TTB Response: We do not adopt this suggestion because not all 
alternate method or procedures are appropriate for industry-wide 
approval. Alternate methods and procedures must be evaluated and 
approved on a case-by-case basis. If a member of the public wishes to 
suggest changes to the methods or procedures contained in the 
regulations for use by all permittees, that person may submit a 
petition for rulemaking to TTB.
     Suggested adding the phrase ``on the bonded premises'' 
after ``All pipelines'' in Sec.  19.187.
    TTB Response: We do not accept this proposal because Sec.  19.187 
is intended to apply to all pipelines at a DSP, whether or not they are 
on bonded premises. The purposes of this section are to protect the 
revenue and to permit ready access by the appropriate TTB officers to 
conduct examinations.
Comments 5 and 6
    TTB received a comment from DISCUS written on behalf of a coalition 
of DISCUS members and another industry member. TTB received an 
additional comment from the industry member which expressed support for 
DISCUS's comments and provided further details on how the proposed 
changes to part 19 would affect its operations.
    Much of DISCUS's comment related to its suggestion that TTB adopt 
its concept of ``constructive segregation'' for various types of 
products (wine, beer, spirits, or flavors) or tax status (taxpaid, 
nontaxpaid, or in customs custody).
    TTB Response: While we might agree that in certain circumstances, 
constructive segregation provides adequate protection to the revenue, 
we note that the majority of DSPs do not have the sophisticated 
equipment necessary to maintain segregation through records alone. 
Accordingly, an across-the-board regulatory constructive segregation 
provision would not be appropriate. However, proprietors may submit a 
request for approval of the use of constructive segregation as an 
alternate method or procedure under new Sec.  19.27 and we will 
evaluate such a request on a case-by-case basis, taking into account 
all relevant factors, including the adequacy of the protection of the 
revenue and the proprietor's compliance history.
    DISCUS also proposed that TTB eliminate the requirements to submit 
diagrams showing extended and curtailed premises, and that TTB not 
adopt the proposal to require submission of an application and/or 
letterhead notice for alternations and extensions of premises.
    TTB Response: We are not adopting these suggestions because, in 
order to ensure compliance with statutory requirements related to 
revenue protection, we must receive specific information about the 
layout of a DSP. However, proprietors may continue to submit a request 
for approval of an alternate method or procedure to vary from the 
regulatory requirements, and we will consider approving such requests 
on a case-by-case basis.
    DISCUS repeated the comment it made to Notice No. 870 that 
suggested a 200-mile rule for continuity of premises.
    TTB Response: In the preamble to Notice No. 83, we explained that 
we would not adopt a 200-mile rule and the current comment does not 
provide sufficient justification for any change of our position. We 
will continue to evaluate requests for alternate methods or procedures 
concerning plant continuity on a case-by-case basis, each analysis to 
be based upon multiple factors. Generally, we believe that the ``same 
general location'' must not be too large an area so that the revenue is 
placed at risk. Also, because a distance of 200 miles could extend over 
a multi-state area and would cross over into different field offices 
within TTB, such a distance would create administrative difficulties 
for TTB.
    DISCUS also commented on TTB's proposed changes to alcohol fill 
tolerances. It suggested that the Bureau eliminate the requirement that 
there be approximately the same number of overfills and underfills for 
each lot bottled.
    TTB Response: We are not adopting this suggestion because this 
regulatory requirement ensures that the proprietor accurately fills 
bottles, which supports proper collection of the revenue and protects 
consumers from deception. It is the responsibility of proprietors to 
ensure that their bottling equipment accurately fills bottles of 
spirits.
    In order to assist proprietors in determining the standards for 
fill tolerances, we proposed a specific standard of plus or minus 2 
percent for fill. DISCUS and the industry member state that this 
tolerance is too small for small bottle sizes.
    TTB Response: We agree and have adopted a stepped approach to 
tolerances similar to fill tolerances used for wine found in 27 CFR 
24.255(b). In evaluating DISCUS's and the industry member's slightly 
different proposals for using a stepped approach similar to that used 
in wine regulations, we found a 9 percent tolerance, as proposed for 
the smallest bottle sizes, to be too large. The revised tolerances are 
found in Sec.  19.356 and range from 1.5 percent for bottles 1.0 liter 
and above to 4.5 percent for bottles 100 mL and below.
Comment 7
    An individual commented on the provisions of Sec.  19.387, 
``Ensuring the quality of denaturants.'' The commenter suggested that 
TTB reapply an exception that appeared in the ATF regulations prior to 
1979 for certain denaturants that were deposited in storage under 
direct supervision of the assigned ATF officer. The commenter noted 
that the prior regulation stated, in part, ``Synthetic oils approved by 
the Director, essential oils as defined in Part 212 of this chapter, 
pure chemicals (liquid or solid), or U.S.P. or N.F. substances used as 
denaturing materials, deposited in storage under direct supervision of 
the assigned officer in the original sealed package of a reputable 
manufacturer of chemicals, bearing a label descriptive of the contents 
placed thereon by the manufacturer, need not

[[Page 9086]]

be tested except when required by the Director.''
    TTB Response: The responsibility for security and purity of 
denaturants lies with the proprietor of the plant. Because denaturants 
could be adulterated by various sources, or otherwise be of 
nonconforming quality, it is the responsibility of the proprietor to 
ensure that denaturants conform to the specifications prescribed in 
part 21 of the TTB regulations. The exception that applied prior to 
1979 was applicable to denaturants deposited in storage under direct 
supervision of an ATF officer. Because TTB does not have officers 
assigned to each DSP, it would be inappropriate to retain that 
exception. However, it is not the intention of TTB that the proprietor 
be required to test every lot of every denaturant. We have modified 
Sec.  19.387 to more clearly state when testing is required and that 
the testing standards of that section apply only if a proprietor tests 
any given lot.

Changes to the Proposed Regulations in This Final Rule

    After careful consideration of the comments received in response to 
Notice No. 83, as discussed above, TTB has made several changes to the 
proposed part 19 regulatory texts contained in that notice of proposed 
rulemaking. As discussed below, TTB is also making other changes to the 
proposed part 19 regulatory texts. These changes are technical in 
nature; they provide additional mailing options for industry members 
and reflect changes made to part 19 by final or temporary rulemakings 
issued after the publication of Notice No. 83. TTB also has updated 
cross-references to part 19 contained in other parts of its regulations 
in 27 CFR chapter I. In addition, TTB has made technical corrections or 
other nonsubstantive changes to the proposed part 19 regulatory texts 
to correct errors or inconsistencies in format, style, grammar, or 
spelling. None of these corrections or other nonsubstantive changes 
affects any regulatory or recordkeeping requirement contained in the 
proposed part 19 regulatory texts as published in Notice No. 83.

Private Delivery Services

    In light of the wide-spread use of private courier and delivery 
services by the public and government agencies, and in accordance with 
the IRC at 26 U.S.C. 7502(f), TTB is adding the option to send tax 
returns and remittances by private courier and delivery services to the 
requirements found in Sec.  19.238, Payment by mail or courier. While 
this change to part 19 was not included in Notice No. 83, we believe 
this change will afford industry members, the general public, and TTB 
greater flexibility in choosing delivery methods for documents and 
other items while continuing to provide documented sending and delivery 
dates.
    TTB will use the date of tender to the delivery service as the date 
of delivery if a proprietor sends a return or remittance to TTB by the 
use of traceable delivery services, provided those services are 
available to the general public and are at least as timely and reliable 
as the U.S. mail and provided the date on which items are given to the 
service for delivery are recorded by the service. These changes to 
Sec.  19.238 follow the language used in 26 U.S.C. 7502(f) regarding 
timely mailing and the use of private delivery services.

Subsequent Regulatory Changes

    Subsequent to the publication of Notice No. 83, TTB published two 
Treasury Decisions that amended regulatory provisions of part 19. 
Changes to the regulatory text in this final rule reflect these 
provisions:
     T.D. TTB-89, published in the Federal Register (76 FR 
3502) on January 20, 2011, updated and reissued temporary rules 
regarding semimonthly and quarterly payment of tax. Provisions 
reflecting these subjects are found in this document at Sec. Sec.  
19.234-19.237 and Sec.  19.465.
     T.D. TTB-84, published in the Federal Register (75 FR 
16666), on April 2, 2010, reflected the removal of the requirement for 
Special (Occupational) Tax and implemented dealer registration 
requirements. These provisions are found in subpart H of part 19 in 
this final rule.

Changes to Part 19 Cross-References Elsewhere in 27 CFR

    The revision of part 19 contained in this final rule also requires 
the revision of the cross-references to specific part 19 subparts and 
sections contained in other parts of the TTB regulations in 27 CFR 
chapter I. Except for the regulatory changes inherent in the revision 
of part 19 contained in this final rule, the corrections to the cross-
references described below do not change any recordkeeping or 
regulatory requirement outside of part 19; the changes to these cross-
references are merely technical in nature.
    The cross-references to part 19 requiring changes in 27 CFR chapter 
I are shown in the chart below:

         Changes in Part 19 Cross-References in 27 CFR Chapter I
------------------------------------------------------------------------
                                   Remove the        and replace with a
         In section:              reference to:         reference to:
------------------------------------------------------------------------
Sec.   1.82(a)..............  Sec.   19.157.......  Sec.   19.91
Sec.   17.162(d) and (f)....  Sec.   19.780.......  Sec.   19.626
Sec.   17.163(a)............  Sec.   19.780.......  Sec.   19.626
Sec.   24.226 (1st sentence)  Sec.   19.510.......  Sec.   19.407
Sec.   24.226 (3rd sentence)  Sec.   19.508.......  Sec.   19.405
Sec.   24.235(a)............  Sec.   19.522(c)....  Sec.   19.233
Sec.   26.199f(a)...........  Sec.   19.562.......  Sec.   19.462
Sec.   26.293(a)(3).........  subpart R...........  subpart S
Sec.   28.118...............  subpart U...........  subpart Q
Sec.   30.31(d).............  Sec.   19.383.......  Sec.   19.353
Sec.   30.52................  Sec.   19.722.......  Sec.   19.582
Sec.   31.45(b).............  Sec.   19.58........  Sec.   19.5
Sec.   31.65(a).............  Sec.   19.58........  Sec.   19.5
------------------------------------------------------------------------

Existing Alternate Methods or Procedures

    By changing the part 19 regulations to provide for many of the 
methods or procedures formerly approved as alternate methods or 
procedures, these regulations have made a number of former approvals 
obsolete. However, there are some preexisting alternate methods or 
procedures that we did not make universally applicable and that we did 
not intend to revoke with this

[[Page 9087]]

revision to part 19. Accordingly, any proprietor with a valid, 
unrevoked alternate method or procedure issued under the authority of 
the current Sec.  19.62 (recodified in the new Sec.  19.26) that is not 
contrary to the new regulations may continue to use the approval. Note, 
however, that any change in law or regulation that makes the alternate 
method or procedure contrary to law or regulation revokes the alternate 
method or procedure by the application of law.
    It is the proprietor's responsibility to ensure that these existing 
alternate methods or procedures are not contrary to the new 
regulations, that is, that they remain consistent with the purpose and 
effect of the methods and procedures prescribed in this revised part. A 
proprietor may write to the Director, Regulations and Rulings Division, 
or the Director, National Revenue Center, as appropriate, to request 
that approvals in existence prior to the adoption of this final rule be 
reevaluated under the new regulations.
    Any conditions in alternate methods or procedures continue to 
apply. TTB may revoke any alternate method or procedure if there is 
jeopardy to the revenue or if the method or procedure increases cost to 
the Government or hinders TTB's administration of part 19.

Derivation Table for Proposed Part 19

    The following table shows the derivation of the new sections of 
regulations. It is cross-referenced between the new section numbers in 
the revised 27 CFR part 19 regulations contained in this final rule 
document and the section numbers in the existing part 19 regulations in 
effect at the time of publication of this final rule.

------------------------------------------------------------------------
                                            Are derived from current
     Requirements of new section:                   section:
------------------------------------------------------------------------
19.0..................................  19.1
------------------------------------------------------------------------
                                Subpart A
------------------------------------------------------------------------
19.1..................................  19.11
19.2..................................  19.2
19.3..................................  19.3
19.4..................................  19.57
19.5..................................  19.58
------------------------------------------------------------------------
                                Subpart B
------------------------------------------------------------------------
19.11.................................  19.81
19.12.................................  19.86
19.13.................................  19.75
19.14.................................  19.4
19.15.................................  19.61
19.16.................................  19.724
19.17.................................  19.82
19.18.................................  19.83
19.19.................................  19.79
19.20.................................  19.77
19.26.................................  19.62
19.27.................................  19.62
19.28.................................  19.73
19.29.................................  19.70, 19.74
19.31.................................  19.63
19.32.................................  19.65
19.33.................................  19.66
19.34.................................  19.71
19.35.................................  19.71
19.36.................................  19.67
19.37.................................  19.67
19.38.................................  19.78
19.45.................................  19.100
------------------------------------------------------------------------
                                Subpart C
------------------------------------------------------------------------
19.51.................................  New
19.52.................................  19.131
19.53.................................  19.132
19.54.................................  19.133
19.55.................................  19.68, 19.72
19.56.................................  19.134
19.58.................................  19.97
19.59.................................  19.98
19.60.................................  19.99
------------------------------------------------------------------------
                                Subpart D
------------------------------------------------------------------------
19.71.................................  19.151
19.72.................................  19.151
19.73.................................  19.152
19.74.................................  19.168
19.75.................................  19.166
19.76.................................  19.153
19.77.................................  19.170, 19.324
19.78.................................  19.156
19.79.................................  19.169
19.80.................................  19.154
19.81.................................  19.155
19.91.................................  19.157
19.92.................................  19.158
19.93.................................  19.167
19.94.................................  19.165
19.95.................................  19.159
19.96.................................  19.161
19.97.................................  19.162
19.98.................................  19.160
19.99.................................  19.163
------------------------------------------------------------------------
                                Subpart E
------------------------------------------------------------------------
19.111................................  New
19.112................................  19.180
19.113................................  19.182
19.114................................  19.184
19.115................................  19.185
19.116................................  19.186, 19.187
19.117................................  19.188
19.118................................  19.189
19.119................................  19.190
19.120................................  19.191
19.121................................  19.192
19.122................................  19.193
19.123................................  19.153(b)
19.126................................  19.180
19.127................................  19.181
19.128................................  19.182
19.129................................  19.183
19.130................................  19.184
19.131................................  19.185
19.132................................  19.186, 19.187
19.133................................  19.188
19.134................................  19.189
19.135................................  19.191
19.141................................  19.201
19.142................................  19.202
19.143................................  19.203 through 19.206
19.144................................  19.207
19.147................................  19.211
------------------------------------------------------------------------
                                Subpart F
------------------------------------------------------------------------
19.151................................  19.231, 19.232
19.152................................  19.231
19.153................................  19.233
19.154................................  19.234
19.155................................  19.235
19.156................................  19.236
19.157................................  19.237
19.161................................  19.231, 19.232
19.162................................  19.241
19.163................................  19.242
19.164................................  19.243
19.165................................  19.244
19.166................................  19.245
19.167................................  19.246
19.168................................  19.247, 19.248
19.169................................  19.248
19.170................................  19.249
19.171................................  19.250
19.172................................  19.251
19.173................................  19.252
------------------------------------------------------------------------
                                Subpart G
------------------------------------------------------------------------
19.181................................  New
19.182................................  19.273
19.183................................  19.273
19.184................................  19.273
19.185................................  19.273
19.186................................  19.276
19.187................................  19.274
19.188................................  19.277
19.189................................  19.278
19.190................................  19.279
19.191................................  19.280
19.192................................  19.281
19.193................................  19.282
------------------------------------------------------------------------
                                Subpart H
------------------------------------------------------------------------
19.201................................  19.49
19.202................................  19.50
19.203................................  19.51
19.204................................  19.52
------------------------------------------------------------------------
                                Subpart I
------------------------------------------------------------------------
19.221................................  New
19.222................................  19.21 through 19.23
19.223................................  19.24
19.225................................  19.25, 19.515, 19.526
19.226................................  19.517
19.227................................  19.515
19.229................................  New
19.230................................  19.515(b), 19.522(b)
19.231................................  19.516
19.233................................  19.522(c), 19.523(b)
19.234................................  19.522(a), 19.523(a)
19.235................................  19.522, 19.523
19.236................................  19.523
19.237................................  19.523
19.238................................  19.525
19.239................................  19.519
19.240................................  19.524
19.242................................  19.520
19.243................................  19.521
19.245................................  New

[[Page 9088]]

 
19.246................................  19.34
19.247................................  19.35
19.248................................  19.36
19.249................................  19.37
19.250................................  19.38
19.253................................  19.31
19.254................................  19.32
19.256................................  19.26
19.257................................  19.518
19.258................................  19.486
------------------------------------------------------------------------
                                Subpart J
------------------------------------------------------------------------
19.261................................  New
19.262................................  19.44
19.263................................  19.41
19.264................................  19.42
19.265................................  19.43
19.266................................  19.45
19.267................................  19.46
19.268................................  19.76
19.269................................  19.487
------------------------------------------------------------------------
                                Subpart K
------------------------------------------------------------------------
19.281................................  New
19.282................................  19.84
19.283................................  19.92
19.284................................  19.91, 19.92(a), 19.93
19.285................................  19.92(a)
19.286................................  19.91(a)
19.287................................  19.91(b)
19.288................................  19.503
19.289................................  19.319
------------------------------------------------------------------------
                                Subpart L
------------------------------------------------------------------------
19.291................................  New
19.292................................  19.311
19.293................................  19.312
19.294................................  19.314
19.295................................  19.315
19.296................................  19.312
19.297................................  19.313
19.301................................  19.316
19.302................................  19.317
19.303................................  19.318
19.304................................  19.319
19.305................................  19.320
19.306................................  19.321
19.307................................  19.322
19.308................................  19.326
19.309................................  19.327
19.310................................  19.328
19.312................................  19.329
19.314................................  19.331
19.315................................  19.332
19.316................................  19.333
------------------------------------------------------------------------
                                Subpart M
-----------------------------