Modernization of Permit and Registration Application Requirements for Distilled Spirits Plants, 68573-68593 [2021-25721]
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Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Proposed Rules
extending from the 6.3-mile radius to 10.6
miles northeast of the airport, and within 4
miles each side of the 001° bearing from
Bridgeport Municipal Airport extending from
the 6.3-mile radius to 10.7 miles north of the
airport, and within a 6.3-mile radius of
Decatur Municipal Airport, and within 1.5
miles each side of the 263° bearing from
Decatur Municipal Airport extending from
the 6.3-mile radius to 9.2 miles west of the
airport.
Issued in Fort Worth, Texas, on November
30, 2021.
Martin A. Skinner,
Acting Manager, Operations Support Group,
ATO Central Service Center.
[FR Doc. 2021–26260 Filed 12–2–21; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Parts 1, 17, 19, 20, 22, 26, 27,
28, and 31
[Docket No. TTB–2021–0010; Notice No.
207]
RIN 1513–AC46
Modernization of Permit and
Registration Application Requirements
for Distilled Spirits Plants
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:
In this notice of proposed
rulemaking, the Alcohol and Tobacco
Tax and Trade Bureau (TTB) proposes
deregulatory amendments to the
regulations to modernize and streamline
the permit application for distilled
spirits plants and for users and dealers
of specially denatured alcohol and taxfree alcohol. The proposed amendments
also relax some reporting requirements
associated with changes to the business
of those holding such permits and
registrations. Some of these proposed
liberalizing amendments would also
apply to all Federal Alcohol
Administration Act basic permit holders
(including wineries, and importers and
wholesalers of distilled spirits, wine,
and malt beverages) and to alcohol
beverage dealers. The proposed
amendments are a result of TTB’s
evaluation of its permit and registration
application requirements and
consideration of relevant public
comments submitted to the Treasury
Department in response to its request for
recommendations concerning
regulations that can be eliminated,
modified, or streamlined in order to
reduce burdens. TTB believes the
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SUMMARY:
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amendments proposed in this document
will significantly reduce the time
needed to complete an application for a
permit or registration.
DATES: Comments must be received on
or before February 1, 2022.
ADDRESSES: You may electronically
submit comments to TTB on this
proposal, and view copies of this
document, its supporting materials, and
any comments TTB receives on it within
Docket No. TTB–2021–0010 as posted at
https://www.regulations.gov. A direct
link to that docket is available on the
TTB website at https://www.ttb.gov/
distilled-spirits/notices-of-proposedrulemaking under Notice No. 207.
Alternatively, you may submit
comments via postal mail to the
Director, Regulations and Ruling
Division, Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street NW. Box
12, Washington, DC 20005. Please see
the Public Participation section of this
document for further information on the
comments requested regarding this
proposal and on the submission,
confidentiality, and public disclosure of
comments.
FOR FURTHER INFORMATION CONTACT:
Jesse Longbrake, Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street
NW, Box 12, Washington, DC 20005;
telephone (202) 453–1039, extension
066.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. TTB Evaluation of Permit and
Registration Application Requirements
B. TTB Authority
C. Relationship to Other Notices of
Proposed Rulemaking
II. Proposed Changes to the Regulations
A. Operational Information Required for
Distilled Spirits Plant Permit
Application
B. Premises Description and Security
C. Statements of Interest
D. 30-Day Filing Requirements for Certain
Changes in the Business
E. Changes in Trade Names
F. Retention of Records Off-Premises
III. Public Participation
A. Comments Invited
B. Submitting Comments
C. Confidentiality and Public Disclosure
IV. Regulatory Analyses and Notices
A. Executive Order 12866
B. Regulatory Flexibility Act
C. Paperwork Reduction Act
I. Background
A. TTB Evaluation of Permit and
Registration Application Requirements
In fiscal year 2017, the Alcohol and
Tobacco Tax and Trade Bureau (TTB)
began an evaluation of the information
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68573
collected during the course of TTB’s
permit and registration applications.
The purpose was to identify ways to
streamline the application and
registration process, reduce burden on
the regulated industry, and ensure that
the process collects, where possible,
only information that is necessary to
meet the agency’s statutory obligations.
TTB’s general approach was to identify
information being collected that could
be eliminated without hindering TTB’s
ability to evaluate an applicant’s
qualifications and to more narrowly
focus the application questions to
capture only the information that is
needed. In addition, TTB also
considered whether there were any
requests made in the application
process that were so commonly
approved that the regulations
themselves could be amended to
accommodate them without the need to
submit the request.
Similarly, on June 14, 2017, the
Treasury Department (Treasury)
published in the Federal Register (82
FR 27217) a Request for Information
inviting members of the public to
submit views and recommendations for
Treasury regulations that can be
eliminated, modified, or streamlined in
order to reduce burdens. TTB reviewed
comments received in response to this
request and identified proposals that
related to the permit application process
or, more generally, to beginning
business in a TTB-regulated industry.
Through TTB’s internal evaluation
and consideration of the public input,
TTB has identified deregulatory actions
that TTB can take by amending
regulations and also, where rulemaking
is not required, by amending guidance
and forms. While this document
addresses distilled spirits plants, users
and dealers of specially denatured
alcohol and tax-free alcohol, and
Federal Alcohol Administration Act
basic permit holders, TTB intends to
engage in further rulemaking to address
other regulated industries within the
context of their respective statutory
eligibility requirements. Specifically,
TTB will address in separate
rulemakings the Internal Revenue Code
(IRC) registration and notice
requirements for wine and beer
producers, respectively, as well as IRC
requirements for TTB-regulated tobacco
businesses.
With respect to distilled spirits plants
(DSPs), this document proposes to
amend the regulations to eliminate or
narrow the range of information that
must be submitted with applications for
permits or registrations to more directly
respond to TTB’s statutory obligations
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and permit or registration eligibility
criteria. Proposed amendments include:
• Eliminating various requirements to
submit operational information.
Specifically, TTB proposes eliminating
eight (8) regulatory provisions requiring
submission of information including,
but not limited to, descriptions of
production procedures and storage
systems.
• Tailoring requirements to describe
the DSP premises more narrowly to
specifically correspond with statutory
requirements, and consolidating
requirements to provide descriptions of
alternation operations with the general
DSP premises description.
• Replacing requirements to submit
narrative descriptions of DSP security
with certifications that the applicant’s
security measures will comply with
enumerated regulatory requirements.
• Eliminating requirements to
provide serial numbers of DSP
equipment in the application, thereby
allowing equipment to be reported in
the aggregate where applicable and
allowing a DSP application to be
submitted prior to physical receipt of
the equipment.
TTB is also proposing to amend the
regulations to increase industry
flexibility without imposing regulatory
burden. These amendments benefit
DSPs, users and dealers of specially
denatured alcohol and tax-free alcohol,
and, where appropriate under statute,
Federal Alcohol Administration Act
basic permit holders. Proposed
amendments include:
• Extending deadlines for reporting
certain changes in the business from 30
days to 60 days.
• Allowing regulated businesses to
add or remove trade names by
submitting a notification to TTB rather
than applying for TTB approval.
• Allowing regulated businesses to
maintain required records at a location
other than the permitted premises
without first obtaining TTB approval.
Section II of this document includes
more in-depth discussion of the
proposed amendments.
As noted above, TTB’s deregulatory
strategy also includes streamlining
longstanding policies and practices
implementing existing regulations. TTB
has already begun deploying such
streamlining efforts in response to both
TTB’s internal evaluation of application
processes and to comments received
from the public.
For instance, TTB has implemented
significant reductions in the information
collected on form TTB F 5000.9,
Personnel Questionnaire—Alcohol and
Tobacco (the Personnel Questionnaire)
and its electronic equivalent in response
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to comments submitted to Treasury
through the Request for Information.
TTB collects the Personnel
Questionnaire as part of the application
process for most types of permits or
registrations. The Personnel
Questionnaire collects information
about individuals involved in an
applicant’s business (such as a
business’s officers, directors, or
principal investors), including
information about such individuals’
identity, employment and residence
history, investment in the business,
prior involvement in TTB-regulated
businesses, and criminal record, if any.
The collection of this information has
been approved by the Office of
Management and Budget under
Information Collection number 1513–
0002.
TTB uses this information to
determine whether the applicant,
including the individuals involved in
the applicant business, meet the
statutory eligibility criteria for obtaining
a permit or registration. These criteria
are set forth in detail in section 1(B) of
this document. Upon careful review,
TTB recognized that it could reduce the
information collected through the
Personnel Questionnaire. TTB has
revised form TTB F 5000.9 and its
electronic equivalent in Permits Online
to substantially reduce the number of
required fields and to eliminate some of
the most time-consuming fields (such as
general employment history and
residence history). TTB also has stopped
collecting supporting documentation for
certain types of investment in an
applicant business (e.g., bank
statements, loan documentation,
promissory notes, etc.).
B. TTB Authority
The Federal Alcohol Administration
Act (FAA Act, 27 U.S.C. 201, et seq.)
and chapter 51 of the IRC, 26 U.S.C.
chapter 51, require persons intending to
engage in certain distilled spirits-related
businesses to obtain a permit, or
approval of a registration, from the
Secretary of the Treasury (Secretary)
before beginning operations. Many
distillers engage in operations that
require both a permit under the FAA
Act and a registration under the IRC.
The amendments proposed in this
document generally relate to the
application requirements for such
permits and registrations, including
requirements to report certain changes
in the regulated businesses.
Additionally, amendments proposed in
this document address application
requirements for permits under the FAA
Act for operations as importers or
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wholesalers of distilled spirits, wine,
and/or malt beverages.
The FAA Act requires that persons
seeking to engage in business as
producers of distilled spirits, or as
importers or wholesalers of distilled
spirits, wine, and malt beverages, obtain
a permit before beginning operations.
See 27 U.S.C. 203. The term ‘‘distilled
spirits,’’ when used in the context of the
FAA Act, applies only to distilled
spirits for nonindustrial use. The TTB
regulations at 27 CFR 1.60 set out uses
of spirits that are regarded as
‘‘industrial.’’ The FAA Act at 27 U.S.C.
204(c) provides that the Secretary will
prescribe the manner and form of all
applications for basic permits. Note that
the FAA Act also requires permits for
producing, rectifying, or blending wine
and that these activities also require
qualification under the IRC; TTB plans
to modernize wine-specific permit
requirements in a separate rulemaking
document.
Chapter 51 of the IRC contains excise
tax and related provisions concerning
distilled spirits, wines, and beer. This
includes requirements that persons
intending to engage in certain activities
related to producing, using, or dealing
in distilled spirits obtain a registration
and/or permit from the Secretary before
beginning operations. As noted above,
TTB will address in a separate
rulemaking the application
requirements under the IRC for bonded
wine cellars, bonded wineries, taxpaid
wine bottling houses, and brewer’s
notices.
The IRC requires each person seeking
to establish a distilled spirits plant,
before commencing operations, to apply
for and receive notice of registration of
the plant. See 26 U.S.C. 5171(c). Those
persons whose distilled spirits plant
operations are not required to obtain a
basic permit under the FAA Act are
required to obtain an IRC operating
permit. See 26 U.S.C. 5171(d). The
applications for registrations and
permits are to be in such manner and
form as the Secretary prescribes by
regulation. See 26 U.S.C. 5172
(registrations); 5171(d)(1) and 5271(b)(1)
(operating permits).
The IRC provides for the issuance of
permits to establish plants for the
purpose of producing, processing,
storing, using, and/or distributing
distilled spirits that are exclusively for
fuel use (‘‘alcohol fuel plants’’). While
alcohol fuel plants, as a type of distilled
spirits plant, are generally subject to the
registration and permitting requirements
of sections 5171(c) and (d), and any
associated qualification requirements,
the IRC at 26 U.S.C. 5181 provides
authority to prescribe by regulation a
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streamlined application process for such
plants, see 26 U.S.C. 5181, which TTB
has done.
The IRC also governs permits relating
to the procurement and use of
denatured distilled spirits, and the use
of non-beverage spirits for certain taxfree purposes. See 26 U.S.C. 5271.
Section 5271 provides that no person
may procure or use distilled spirits free
of tax under the provisions of 26 U.S.C.
5214(a)(2) or (3); or procure, deal in, or
use specifically denatured distilled
spirits; or recover specifically or
completely denatured distilled spirits,
until he or she has applied for and
received a permit to do so from the
Secretary. The application for such
permit is to be as prescribed by
regulation. See 26 U.S.C. 5271(b)(1).
The IRC requires persons seeking to
engage in the business of manufacturing
vinegar by the vaporizing process to first
apply for and receive approval of a
registration from the Secretary, the
application for which is to be as
prescribed by regulation. See 26 U.S.C.
5502.
Finally, the IRC requires all wholesale
dealers and retail dealers of distilled
spirits, wine, and beer to register with
the Secretary. See 26 U.S.C. 5124.
The FAA Act and IRC set forth
eligibility criteria (including criteria
rendering an applicant ineligible) for
many of the above permits and
registrations. The FAA Act provides that
an applicant is not entitled to a basic
permit—including those applying as
producers of distilled spirits and those
applying as importers or wholesalers of
distilled spirits, wine, and beer—if the
applicant has been convicted of a felony
within the previous 5 years or a
misdemeanor under any Federal law
relating to liquor within the previous 3
years. See 27 U.S.C. 204(a)(2). Under
this statutory provision, the ‘‘applicant’’
includes, in the case of a corporation,
any of its officers, directors, or principal
stockholders. Section 204(a)(2) also
provides that an applicant is not
entitled to a basic permit if the
applicant is, by reason of his or her
business experience, financial standing,
or trade connections, not likely to
maintain operations in conformity with
Federal law.
The IRC similarly provides that an
application for a distilled spirits
operating permit may be denied if—
among other reasons—the applicant
(including the principal stockholders of
a corporation) is, by reason of his or her
financial standing or trade connections,
not likely to maintain operations in
compliance with chapter 51 of the IRC.
See 26 U.S.C. 5271(c), 5171(d).
Specifically, these eligibility criteria
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apply to permits required for distilled
spirits plants that are not otherwise
required to obtain an FAA Act basic
permit, such as distilled spirits plants
that distill for industrial use. These
eligibility criteria also apply to permits
for alcohol fuel plants under 26 U.S.C.
5181. See 27 CFR 19.678. A permit to
use tax-free alcohol, to use or deal in
specially denatured distilled spirits, or
to recover specially or completely
denatured distilled spirits may also be
denied for the same reasons. See 26
U.S.C. 5271(c).
TTB administers chapter 51 (distilled
spirits, wine, and beer) of the IRC, as
well as the FAA Act, pursuant to
Treasury Order 120–01, dated December
10, 2013, through which the Secretary
has delegated to TTB certain IRC and
FAA Act administrative and
enforcement authorities, including those
related to the issuance of the permits
and registrations covered under this
rulemaking.
Section 2(d) of the FAA Act, Public
Law 74–401 (1935) authorizes the
Secretary ‘‘to prescribe such rules and
regulations as may be necessary to carry
out [its] powers and duties’’ under the
FAA Act. Section 7805(a) of the IRC (26
U.S.C. 7805(a)) provides the general
authority to the Secretary to issue
regulations to carry out the provisions of
the IRC.
Pursuant to its delegated authorities
described above, TTB has promulgated
regulations setting forth the application
requirements for permits or registrations
related to distilled spirits operations in
title 27 of the Code of Federal
Regulations (CFR), at the following
parts:
• 27 CFR part 1, FAA Act basic
permits (i.e., distillers, rectifiers, and
blenders of distilled spirits; distilled
spirits warehousemen; and alcohol
importers and wholesalers);
• 27 CFR part 19, IRC registrations
and operating permits for distilled
spirits plants, vinegar plant permits, and
alcohol fuel plant permits (categorized
as small, medium, and large alcohol fuel
plants);
• 27 CFR part 20, IRC permits for
denatured spirits dealers and users;
• 27 CFR part 22, IRC permits for taxfree alcohol users; and
• 27 CFR part 31, IRC registrations for
alcohol beverage dealers.
The following TTB forms and their
electronic equivalents collect much of
the information required to be
submitted when applying for the above
permits and/or registrations:
• TTB F 5100.24, Application for
Basic Permit Under the Federal Alcohol
Administration Act, approved by the
Office of Management and Budget
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(OMB) under Information Collection
number 1513–0018;
• TTB F 5100.18, Application for
Amended Basic Permit Under the
Federal Alcohol Administration Act,
approved by OMB under Information
collection number 1513–0019;
• TTB F 5110.25, Application for
Operating Permit Under 26 U.S.C.
5171(d), approved by OMB under
Information Collection number 1513–
0040;
• TTB F 5110.41, Registration of
Distilled Spirits Plant, approved by
OMB under Information Collection
number 1513–0048;
• TTB F 5110.74, Application for an
Alcohol Fuel Producer Under 26 U.S.C.
5181, approved by OMB under
Information Collection number 1513–
0051;
• TTB F 5150.22, Application for an
Industrial Alcohol User Permit,
approved by OMB under Information
Collection number 1513–0028; and
• TTB F 5000.9, Personnel
Questionnaire—Alcohol and Tobacco
Products, approved by OMB under
Information Collection number 1513–
0002.
Pursuant to TTB’s IRC and FAA Act
authorities described above, TTB has
also promulgated regulations imposing
procedural and substantive
requirements on these regulated
businesses. These include requirements
to report certain changes in the business
affecting the permit or registration (e.g.,
changes in address or location, changes
in stockholders or officers, directors,
managers, etc.). These also include
recordkeeping requirements that are
generally set forth pursuant to other
authority in the IRC. See, e.g., 26 U.S.C.
5207 (records of distilled spirits plant
proprietors), 26 U.S.C. 5275 (records of
dealers and users of denatured spirits
and/or industrial alcohol), and 26 U.S.C.
5121–5122 (records of wholesale and
retail dealers of distilled spirits).
This notice of proposed rulemaking
includes proposed amendments to these
reporting and recordkeeping
requirements. The regulations
implementing such requirements are set
forth in title 27 of the CFR, at the
following parts:
• 27 CFR part 1, reporting of business
changes for FAA Act basic permits;
• 27 CFR part 17, recordkeeping
requirements for manufacturers of
nonbeverage products claiming
drawback on taxpaid distilled spirits
used in the manufacturing process;
• 27 CFR part 19, recordkeeping and
inventory requirements, and reporting
of business changes, for distilled spirits
plants, vinegar plants, and alcohol fuel
plants;
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• 27 CFR part 20, recordkeeping
requirements, and reporting of business
changes, for denatured spirits dealers
and users;
• 27 CFR part 22, recordkeeping
requirements, and reporting of business
changes, for tax-free alcohol users;
• 27 CFR part 26, recordkeeping
requirements concerning liquors and
articles brought in from Puerto Rico and
the Virgin Islands;
• 27 CFR part 27, recordkeeping
requirements for importers of distilled
spirits, wine, and beer;
• 27 CFR part 28, recordkeeping
requirements concerning exportation of
distilled spirits, wine, and beer; and
• 27 CFR part 31, recordkeeping
requirements and reporting of business
changes for alcohol beverage dealers
(including wholesalers).
The electronic equivalent of each
application form set forth above is
available through the TTB Permits
Online system. The Permits Online
system eliminates redundancy by
allowing the filer to input information
only once, instead of repeating
information on multiple paper
application forms. Similarly, with
respect to the reporting requirements
described above, in instances where
TTB’s regulations refer to submitting a
‘‘letterhead notice’’ (as defined in 27
CFR 19.1), industry members may
provide such notices electronically in
Permits Online. Unlike applications,
these types of notices do not require
TTB approval.
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C. Relationship to Other Notices of
Proposed Rulemaking
TTB plans to publish notices of
proposed rulemaking to propose
generally similar amendments to
regulations governing wine, beer,
tobacco products, and processed
tobacco-related applications and
operations, set forth in 27 CFR parts 24,
25, 40, 41, and 44. Liberalizing
amendments related to FAA Act basic
permits as importers and wholesalers
(including as importers or wholesalers
of wine and/or malt beverages) and as
wine producers are included in this
document and will not be included in
the notices of proposed rulemaking
relating to wine or beer.
II. Proposed Changes to the Regulations
The amendments proposed in this
document are intended to modernize
and streamline the applications and
application processes for distilled
spirits-related permits and registrations
under the IRC and FAA Act, and for
FAA Act basic permits required for
importers and wholesalers of alcohol
beverages. As noted above, TTB’s
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general approach was to identify
information currently being collected
that TTB no longer needs in order to
evaluate an applicant’s qualifications
and to provide more clarity and
specificity in the application questions
and instructions. The proposed
amendments also relax reporting
requirements on certain changes to the
business.
A. Operational Information Required for
Distilled Spirits Plant Application
TTB is proposing to eliminate
requirements to provide certain
operational information when applying
for a DSP registration. The TTB
regulations at 27 CFR 19.73 prescribe, in
general, information that must be
included in an application for
registration under the IRC as a DSP.
Paragraphs (a)(13) through (15) of
§ 19.73 prescribe the operational
information that must be submitted if
the DSP applicant intends to operate as
a distiller, warehouseman, or processor,
respectively. (A ‘‘warehouseman’’ is a
proprietor of a DSP who stores bulk
distilled spirits.) TTB has determined
that much of the information currently
required by § 19.73(a)(13) through (15)
is no longer needed for TTB to evaluate
whether an applicant qualifies for a
registration. As a result, TTB proposes
to eliminate the following regulatory
sections:
a. 27 CFR 19.73(a)(13)(ii), 19.77(a),
and 19.121, requiring that an applicant
intending to operate as a distiller submit
a statement of production procedures,
setting forth the contents of the
statement, and requiring that a DSP
proprietor report changes to its
production procedures.
b. 27 CFR 19.73(a)(13)(iii) and
19.77(b), requiring that an applicant
intending to operate as a distiller submit
a statement as to whether spirits will be
redistilled and referencing formula
requirements associated with such
redistillation.1
c. 27 CFR 19.73(a)(14)(i), requiring
that an applicant intending to operate as
a warehouseman submit a narrative
description of its storage system.
d. 27 CFR 19.73(a)(14)(ii), requiring
that an applicant intending to operate as
a warehouseman submit a statement of
the total amount of bulk wine gallons
that can be stored.
e. 27 CFR 19.73(a)(15)(ii), requiring
that an applicant intending to operate as
a processor submit a narrative
description of the storage system for
1 Generally, applicable formula requirements
prescribed under 27 CFR part 5 require DSPs to
obtain formulas in connection with certain
redistillation operations.
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spirits bottled and cased or otherwise
packaged and placed in approved
containers for removal from the bonded
premises.
TTB is also proposing to amend 27
CFR 19.75 to eliminate the requirement
to provide in the application for
registration the serial number of each
tank, still, and condenser to be used by
the DSP. While such equipment must
continue to be physically marked with
a serial number on the DSP premises
pursuant to 27 CFR 19.189, removing
the requirement to provide serial
numbers in the application will provide
applicants greater flexibility to report
their equipment in the aggregate. For
instance, ten (10) of the same type of
tank will not need to be listed separately
to account for the different serial
numbers. Additionally, allowing
equipment to be reported on the
application without serial numbers
allows applicants to submit an
application before equipment that has
been ordered is physically received.
TTB proposes similar amendments at 27
CFR 20.42 and 22.42 to remove
requirements to provide serial numbers
of equipment to be used by applicants
for permits as users of denatured
alcohol and of tax-free alcohol.
B. Premises Description and Security
TTB is proposing to relax or eliminate
requirements to submit certain
information describing the DSP
premises and its security with an
application for registration. As stated
above, the TTB regulations at 27 CFR
19.73 prescribe, in general, information
that must be included in an application
for registration as a DSP. Among the
information required to be submitted
with such application are descriptions
of the DSP premises and the security
measures to be employed at the DSP.
Much of this information is currently
collected in an open-ended narrative
format. TTB believes that, in general,
more direct questions and certifications
would enable applicants to better
understand what information must be
submitted, reduce the need for
additional submissions and follow-up
communication between TTB and
applicants, and speed up the
application review process. Further,
TTB has determined that some of the
information currently required in these
areas is unnecessary or overly specific
for the purpose of evaluating a
registration application. As a result,
TTB also proposes to relax or eliminate
certain requirements to submit such
information.
Therefore, TTB proposes to amend the
following regulatory sections:
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a. 27 CFR 19.74. Section 19.73(a)(8)
requires that an application for
registration as a DSP include a
description of the plant in accordance
with § 19.74. Section 19.74 sets forth the
specific information to be included in
the description, which includes: (1) A
description of each tract of land covered
by the plant; (2) identification of the
bonded and any general premises; (3)
descriptions of each building and
outside tank that will be used for
production, storage, and processing of
spirits and for denaturing spirits,
articles, or wines; and (4) identification
of the room(s) or floor(s) of a building
that will be used for plant operations, if
the plant consists of less than the entire
building in which it is situated. TTB
proposes to amend § 19.74 to remove
the requirement to provide a description
of the tract of land and to further clarify
the specific information to be submitted
as follows: (1) Overall dimensions of the
building(s) housing the DSP; (2) the
dimensions of the bonded premises and
any general premises; (3) any internal
walls establishing the boundaries of the
bonded premises and general premises;
(4) the external doors of the DSP
premises; (5) any portions of the plant
premises that are outdoors, including
the location of any outdoor tanks; and
(6) any adjacent retail premises that are
to be operated by the applicant. TTB
believes that these descriptive elements
are the minimum necessary to allow
TTB to evaluate whether the premises is
adequate to protect the revenue and
otherwise complies with the statutory
restrictions on DSP locations set forth at
26 U.S.C. 5178. The proposed
amendments provide flexibility to
submit this information in narrative
form or diagram form, whichever is
better suited to the applicant’s
circumstances. The proposed
amendments also provide that
photographs of any of the required
elements must be submitted upon
request of the appropriate TTB officer.
b. 27 CFR 19.119 and 19.122. Under
current § 19.119, a DSP proprietor is
required to amend his or her registration
prior to extending or curtailing any part
of the plant premises, except for certain
operations described in §§ 19.142
(alternation for customs purposes) and
19.143 (alternation for other purposes).
Section 19.122 currently requires that a
DSP proprietor file a letterhead notice
prior to making any material changes to
the construction or use of the buildings
or equipment at the DSP, other than
changes covered by §§ 19.119, 19.142,
and 19.143. TTB proposes to
consolidate these requirements into a
single § 19.119, and to further amend
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that section consistent with the
proposed amendments to § 19.74.
Specifically, in the revised § 19.119, the
current text of § 19.119 regarding
extension or curtailment of the premises
would be maintained, but TTB proposes
to incorporate as a new paragraph the
provisions of the current § 19.122
relating to changes in construction or
use of buildings. TTB further proposes
to amend this new paragraph to no
longer require the proprietor to describe
in detail ‘‘any material change in the
construction or use of buildings or
equipment’’ but instead require the
reporting of changes to the premises
(other than those covered by current
§ 19.119, § 19.142, or § 19.143) that
would render inaccurate the description
submitted with the registration or
submitted separately or previously by
the proprietor with another amendment.
TTB is also proposing to remove the
requirement that the change described
in the letterhead notice also be
subsequently incorporated into the next
submission of an application for
amended registration on TTB F 5110.41
where such amendment would not
otherwise require submission of a
premises description. However, to the
extent that subsequent applications for
an amended registration make any
further reportable changes to the
premises, an up-to-date description
must be submitted.
c. 27 CFR 19.673(b)(2), 19.675(b)(2),
and 19.676(b)(2). TTB proposes
amendments similar to those described
above in point (a) to the requirements
associated with applications for alcohol
fuel plant permits, at §§ 19.673(b)(2),
19.675(b)(2), and 19.676(b)(2). Note that
the illustration of adjacent retail
premises is not applicable to alcohol
fuel plants.
d. 27 CFR 19.643(b). TTB proposes
amendments similar to those discussed
in point (a) above to the requirement
that applicants for a vinegar plant
registration provide a ‘‘description of
the plant premises,’’ at § 19.643(b). Note
that the illustration of adjacent retail
premises is not applicable to vinegar
plants.
e. 27 CFR 19.141(a), 19.142(b), and
19.143(b). Sections 19.141 through
19.143 each provide procedures for
alternation of the DSP premises.
Specifically, § 19.141 prescribes
procedures related to alternation of
proprietors, § 19.142 prescribes
procedures related to alternation for
customs purposes, and § 19.143
prescribes procedures related to
alternation for other purposes (such as
use of the premises as a bonded wine
cellar or brewery). One of the prescribed
procedures to engage in each type of
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alternation is that the proprietor must
submit with his or her application for
registration as a DSP a diagram of the
part of the plant that will be alternated,
as well as a description of the areas,
rooms or buildings, or combination of
rooms or buildings that will be
alternated. In the case of §§ 19.141(a)
and 19.142(b), the applicant must also
provide a description of the method that
the applicant will use to separate the
alternated premises from any premises
not subject to alternation. TTB believes
that the information collected under
these sections can be consolidated into
the premises description(s) required
under § 19.73(a)(8). Accordingly, TTB
proposes to amend these sections to
require that such information be
included in the description(s) submitted
under § 19.73(a)(8). TTB also proposes
conforming amendments to §§ 19.141(b)
and 19.142(c).
f. 27 CFR 19.692(b)(2). TTB proposes
amendments similar to those described
in the previous paragraph to the
qualification requirements for an
alternating proprietorship as an alcohol
fuel plant, at § 19.692(b)(2).
g. 27 CFR 19.73(a)(12), 19.76, and
19.192. Section 19.73(a)(12) requires
that an application for registration as a
DSP include a statement of plant
security measures in accordance with
§ 19.76. Under § 19.76, the plant
security statement must include a
‘‘general description of plant security,’’
a ‘‘statement regarding the use of guard
personnel,’’ and other similar
statements regarding the use of alarm
systems and locks. Plant security as a
continuing requirement for a permit is
also addressed at § 19.192, which
generally requires that a DSP proprietor
provide adequate security to protect the
revenue, and specifies requirements
relating to building construction and the
locking mechanisms to be used on
storage tanks and points of entry to the
DSP premises. Section 19.192(f) also
sets forth specifications for locks to be
used in DSPs. TTB believes that the
narrative statements concerning plant
security required under §§ 19.73(a)(12)
and 19.76 are overly broad and should
be more consistent with the ongoing
requirements of the permit set forth in
§ 19.192. Accordingly, TTB proposes to
eliminate § 19.76 and to amend
§ 19.73(a)(12) to instead require that an
application for registration as a DSP
include a certification that the plant’s
security will be compliant with the
requirements of § 19.192. TTB also
believes that the specifications for locks
set forth in § 19.192(f) are unnecessarily
specific, and proposes to replace those
specifications with a requirement that
the locks used to secure the plant be of
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a class and construction that is usual
and customary in the industry to secure
commercial property.
h. 27 CFR 19.673(b)(6), 19.675(b)(6),
and 19.676(b)(6). TTB proposes to
amend the application requirements for
alcohol fuel plant permits consistent
with those described in the previous
paragraph. The proposed amendments
require, instead of narrative descriptions
of the plant’s security measures, a
certification that plant security will be
in accordance with the requirements of
27 CFR 19.703 and 19.704.
C. Statements of Interest
TTB proposes amendments to
standardize and clarify the scope of the
collection of information related to
persons holding certain levels of
ownership interest in an applicant
business. These ‘‘statements of interest’’
are collected in accordance with
statutory provisions setting forth
eligibility criteria for obtaining such
permits and/or registrations.
Information about persons with
ownership interests in applicant
businesses also assists TTB in the
protection and collection of the revenue.
The FAA Act at 27 U.S.C. 204(a)(2)
provides that an applicant will not be
entitled to a basic permit if—among
other reasons—the applicant (including
the principal stockholders of a corporate
applicant) is, by reason of his or her
business experience, financial standing,
or trade connections, not likely to
maintain operations in conformance
with Federal law. Currently, TTB
practice has been to interpret a
‘‘principal stockholder’’ to be any
person holding ten (10) percent or more
of any class of stock in a corporation or
of any class of ownership in any other
limited liability entity.2
The IRC at 26 U.S.C. 5271(c)(2)
similarly provides that an application
for a permit to use tax-free alcohol, or
to use or deal in specially denatured
distilled spirits, may be denied if—
among other reasons—the applicant
(including any ‘‘principal
stockholders’’) is, by reason of his or her
business experience, financial standing,
or trade connections, not likely to
maintain operations in compliance with
chapter 51 of the IRC. Pursuant to 26
U.S.C. 5171(d), the eligibility criteria of
section 5271(c) also apply to operating
permit applications for DSPs that are
not required to obtain an FAA Act basic
permit, such as DSPs that produce
distilled spirits for industrial use and
alcohol fuel plants.
2 See TTB G 2018–6, ‘‘Permits Online Tutorial’’
at Owner/Officer Information, available at https://
www.ttb.gov/ponl/ponl-tutorial-part-2-page-11.
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Further, the IRC at 26 U.S.C. 5172
requires that an application for a DSP
registration identify the applicant and
persons interested in the business. This
provision applies to DSPs whether or
not they are required to obtain an FAA
Act basic permit. Note that, while
alcohol fuel plants have separate
application processes pursuant to 26
U.S.C. 5181, those application processes
fulfill the qualification requirements of
26 U.S.C. 5171. Accordingly, TTB has
implemented through regulation the
requirement that alcohol fuel plant
applicants report the principal persons
involved in the business and/or the
persons having an ownership interest in
the business at 27 CFR 19.675 (for
medium plant permit applications) and
at 19.676 and 19.677 (for large plant
permit applications).3
TTB has promulgated regulations
under the above IRC authorities
requiring statements of interest at: (1) 27
CFR 19.73, 19.92, and 19.93, for DSP
registrations and operating permits; (2)
27 CFR 19.677, for large alcohol fuel
plant permits; (3) 27 CFR 20.42 and
20.45, for specially denatured spirits
dealer and user permits; and (4) 27 CFR
22.42 and 22.45, for tax-free alcohol
user permits. Additionally, the
application for an FAA Act basic permit
requires a listing of the owners and
principal stockholders of an applicant
business, as well as details concerning
their investment in the business. See 27
CFR 1.25, TTB F 5100.24 (approved by
the Office of Management and Budget
under Information Collection number
1513–0018).
TTB proposes amendments to
§§ 19.93, 19.677, 20.45, and 22.45 to
standardize the collection of the basic
identifying information of persons with
an interest in the applicant’s business.
The amendments provide that (1) the
requirement to disclose basic
identifying information (i.e., names and
addresses) of persons with an
ownership interest applies to persons
with an ownership interest of 10 percent
or greater; and (2) where a ‘‘person’’
holding such an interest is a legal entity
other than an individual, the applicant
must provide the name, title, and place
of residence (city and state) of a
representative individual for that entity.
The representative individual generally
will be the individual designated by the
entity to represent the entity’s interest
3 In addition to the proposed amendments
concerning statements of interest, TTB proposes to
eliminate requirements at §§ 19.675(b)(8) and
19.676(b)(8) to provide the Social Security Number
and date and place of birth of each principal person
involved in the alcohol fuel plant business. Names
and addresses of such persons, as well as their titles
with the applicant business, must still be reported.
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in the applicant business or, in the
absence of a designated individual, an
owner, chief officer or manager, or
person with similar authority within the
entity. TTB believes that this is the
minimum amount of information
required to allow TTB to identify the
individuals with an interest in the
applicant business and to evaluate the
applicant as to its trade connections and
financial standing, including in
circumstances where business entities
have substantial ownership interests in
the applicant.
TTB proposes minor conforming
amendments to 27 CFR 1.27, 1.42, 1.44,
19.114, 19.127, 19.130, 19.684, and
19.687 to incorporate the description of
ownership interests set forth above into
requirements for reporting changes in
ownership interests. TTB also proposes
conforming amendments to 27 CFR
1.24, 19.96, 19.678, and 31.114 to
incorporate this description of
ownership interests into regulations
describing criteria for qualification or
denial of permits.
D. 30-Day Filing Requirements for
Certain Changes in the Business
TTB proposes to extend the deadline
for reporting certain changes in a
permitted business to 60 days. The TTB
regulations generally require that when
there is a change in the information
filed with TTB as part of an application
for a permit or registration under the
FAA Act or IRC, the proprietor of the
business must notify TTB of the change.
The timing and form of this notification
differs depending on the type of permit
or registration, and the type of business
change that has occurred or will occur.
Some business changes must be
reported to TTB within a certain amount
of time following the change, generally
within 30 days. For example, the TTB
regulations at 27 CFR 19.687 require
that the proprietor of a medium or large
alcohol fuel plant submit a letterhead
notice to TTB within 30 days of any
change to the list of officers, directors,
members, managers, or other principal
persons provided with the application
for the permit.
In the case of a change in control of
the business, a permit or registration
may automatically terminate and/or
become invalid following the change in
control unless a new application is filed
within 30 days of the change in control.
The TTB regulations generally provide
for the outstanding permit to remain in
effect pending a final decision on the
new application, as long as that
application is timely filed.
Comments received in response to
Treasury’s request for information,
described above in section I(A), suggest
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that 30 days is too short a time for
regulated entities to assemble the
information that is required to be filed
in connection with various changes in
the business. These comments suggested
that such filing deadlines should be
extended to 60 days.
TTB reviewed these proposals and
concluded that extending existing
deadlines for reporting certain changes
in the business (including in some cases
by applying for a new or amended
permit or registration) from 30 to 60
days would not, in general, pose risk to
the revenue or raise other concerns with
regard to permits and/or registrations
issued under the authority of the IRC.
Accordingly, TTB proposes to extend
such deadlines as described
immediately below. Requirements and
timeframes related to FAA Act permits
are discussed separately at the end of
this section. FAA Act permits have a
different statutory basis, which sets
forth certain reporting timeframes that
TTB is unable to modify by regulation.
In some circumstances, industry
members holding both an FAA Act
permit and an IRC registration (such as
DSPs producing nonindustrial spirits)
will be limited by the shorter statutory
reporting period of the FAA Act.
In 27 CFR part 19, TTB proposes to
amend the following sections to extend
reporting deadlines for changes in the
permitted business to 60 days:
§§ 19.112, 19.114, and 19.123 relating to
DSP registrations; §§ 19.126, 19.127, and
19.130 relating to DSP operating
permits; § 19.644 relating to vinegar
plants; and §§ 19.683, 19.684, 19.686,
19.687, and 19.691 relating to alcohol
fuel plants.
Concerning DSP registrations, 27 CFR
19.112 provides the general rules for
amending a registration, and requires
that, ‘‘if there is a change in any of the
information in the proprietor’s current,
approved notice of registration, the
proprietor must amend the registration’’
within 30 days of the change unless
another time period is specified by
another, more specific regulation.
Section 19.114 requires that a DSP
proprietor ‘‘notify TTB of any changes
in the list of stockholders or persons
with interest that was filed with TTB’’
as part of the registration application
and provides that, ‘‘if the change results
in a change of control, the proprietor
must file form TTB F 5110.41,
Registration of Distilled Spirits Plant,
within 30 days of the change.’’ TTB
proposes to extend each of these
deadlines from 30 days to 60 days.
Section 19.123 requires that a DSP
proprietor notify TTB if any change is
made to the statement of plant security
filed under 27 CFR 19.76. TTB proposes
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in this document (as discussed above) to
remove § 19.76 entirely, and accordingly
proposes to remove § 19.123.
TTB also proposes conforming
amendments in 27 CFR 19.80 to clarify
that, when an IRC operating permit or
an FAA Act permit remains in effect
pending final TTB action on a new
application for such a permit
necessitated by a business change, the
approved notice of registration
associated with that permit also remains
valid during that time.
Concerning DSP operating permits,
which apply to industrial alcohol
operations, § 19.126 provides the
general rules for amending a permit and
requires that, ‘‘if there is a change in any
of the information that the proprietor
provided as part of the current approved
application for an operating permit, the
proprietor must amend the operating
permit’’ within 30 days of the change
unless another time period is specified
by another, more specific regulation.
Section 19.127 provides for the
automatic termination of a DSP
operating permit under certain
circumstances. In the case of a
corporation, § 19.127 provides that the
operating permit will terminate 30 days
following a change in actual or legal
control of the corporation, but if an
application for a new permit is
submitted within that 30 days, the
outstanding permit may remain in effect
until TTB takes final action on the new
application. Section 19.130 requires that
the proprietor notify TTB of any
changes in the list of stockholders or
persons with interest that was filed in
connection with the operating permit
application. If such a change results in
a change in actual or legal control of the
business, the proprietor must file an
application for a new permit within 30
days. TTB proposes to extend each of
these deadlines from 30 to 60 days.
With respect to the automatic
termination provisions of § 19.127, the
proposed amendments also necessarily
extend the timeframe for termination to
60 days.
Concerning vinegar plants, § 19.644
provides that the proprietor of a vinegar
plant must ‘‘immediately’’ notify TTB in
writing of ‘‘any change in the
information that was provided in an
approved application.’’ TTB proposes to
amend this section to require the
notification be made within 60 days of
the change.
Concerning alcohol fuel plants,
§ 19.683 provides the general rules for
amending a permit and requires that, ‘‘if
there is a change relating to any of the
information contained in, or considered
a part of, the application’’ for an alcohol
fuel plant permit, ‘‘the proprietor must
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amend the information previously
submitted within 30 days of the change’’
unless another time period is specified
by another, more specific regulation.
Section 19.684 provides for the
automatic termination of an alcohol fuel
plant permit under certain
circumstances. In the case of a
corporation, the permit will terminate
30 days following a change in actual or
legal control of the corporation, but if an
application for a new permit is
submitted within those 30 days, the
outstanding permit may remain in effect
until TTB takes final action on the new
application. Section 19.686 provides
that, ‘‘When there is a change in the
name of the individual, firm,
corporation, or other entity holding the
permit, the proprietor must file an
application to amend the permit . . .
within 30 days of the change.’’ Section
19.687 requires that the proprietor
provide TTB with letterhead notice
within 30 days of any change to the list
of officers, directors, members,
managers, or other principal persons
provided with the application for a
permit as a medium or large alcohol fuel
plant. Section 19.691 states that, ‘‘if
there is a change in the address of an
alcohol fuel plant that does not involve
a change in the location or area of the
plant itself, the proprietor must submit
a letterhead notice to the appropriate
TTB officer within 30 days of the
change.’’ TTB proposes to extend each
of these deadlines from 30 to 60 days.
With respect to the automatic
termination provisions of § 19.684, the
proposed amendments also necessarily
extend the timeframe for termination to
60 days.
Concerning permits for dealers or
users of denatured alcohol and rum,
TTB proposes to amend provisions in 27
CFR part 20 to extend a similar 30-day
requirement to 60 days, and to remove
one notification requirement. Section
20.56 requires that a permittee submit a
written notification to TTB within 30
days of certain changes ‘‘relating to any
of the information contained in, or
considered a part of[,] the application’’
for a permit. Section 20.57 requires that
the permit holder provide written notice
to TTB within 10 days of a change in
proprietorship or a change in actual or
legal control of the business. Section
20.57 further provides that the permit
will terminate 30 days following a
change in proprietorship or control,
unless the permit holder submits an
application for a new permit within 30
days of the change, in which case the
outstanding permit may remain in effect
until TTB takes final action on the new
application. TTB proposes to extend the
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filing deadline of § 20.56 from 30 to 60
days, and to remove the 10-day
notification requirement of § 20.57.
With respect to the automatic
termination provisions of § 20.57, the
proposed amendments extend the
timeframe for termination to 60 days.
Concerning permits for users of taxfree (industrial) alcohol, TTB proposes
to amend §§ 22.57 and 22.58. Section
22.57 requires that such a permittee
submit a written notification to TTB
within 30 days of certain changes
‘‘relating to any of the information
contained in, or considered a part of[,]
the application’’ for a permit. Section
22.58 requires that the permit holder
provide written notice to TTB within 10
days of a change in proprietorship or a
change in actual or legal control of the
business. Section 22.58 further provides
that the permit will terminate 30 days
following a change in proprietorship or
control, unless the permit holder
submits an application for a new permit
within 30 days of the change, in which
case the outstanding permit may remain
in effect until TTB takes final action on
the new application. TTB proposes to
remove the 10-day notification
requirement of § 22.58. TTB proposes to
extend the filing deadline of § 22.57
from 30 to 60 days. With respect to the
automatic termination provisions of
§ 22.58, the proposed amendments also
extend the timeframe for termination to
60 days.
In 27 CFR part 31, concerning alcohol
beverage dealers, TTB proposes to
amend § 31.138 to provide 60 days for
an alcohol beverage dealer to notify TTB
of the discontinuance of their business,
rather than the current 30 days.
As noted above, FAA Act basic
permits are subject to certain reporting
timeframes, similar to some of those IRC
timeframes discussed above, that TTB is
unable to extend by regulation because
they are statutory. Specifically, the FAA
Act at 27 U.S.C. 204(g) provides that
FAA Act permits cannot be sold or
transferred, and will automatically
terminate 30 days after a transfer by
operation of law or a change in actual
or legal control of the permitted
business. However, section 204(g)(2)
also provides that if an application for
a new permit is submitted within 30
days of such a change, the outstanding
permit remains in effect until TTB takes
final action on the new application.
These provisions are implemented in
TTB regulations at 27 CFR 1.44. TTB
cannot extend the § 1.44 deadline for
filing a new permit application from 30
to 60 days, because the 30-day provision
is in the statute (cited above). However,
TTB is proposing to amend 27 CFR 1.42
to clarify that any changes in the
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ownership, management, or control of
the business, including changes that fall
under § 1.44, must be reported to TTB
within 30 days rather than
‘‘immediately,’’ as currently required. If
the change requires the filing of a new
application under § 1.44, a timely
application will also satisfy the
notification requirement of § 1.42.
Industry members who hold both a
basic permit under the authority of the
FAA Act and a registration under the
authority of the IRC (such as DSPs
producing nonindustrial spirits) should
be aware that an extension of the
timeframes applicable to the registration
issued under the IRC does not apply in
any way to the basic permit under the
FAA Act. As a result, such DSPs must
still report changes in the ownership or
management of their business within 30
days (and submit any required
applications within 30 days) to comply
with the requirements of their FAA Act
basic permit.
E. Changes in Trade Names
TTB proposes amendments to the
regulations at 27 CFR 1.40, 19.129,
20.61, 22.62, and 31.132 to allow
changes to, or additions of, trade names
through a notification to TTB rather
than through an amended permit or
registration. These regulations apply to
holders of FAA Act basic permits, DSP
operating permits, specially denatured
spirits user and dealer permits, tax-free
alcohol user permits, and alcohol
beverage dealer registrations,
respectively. The regulations currently
require that holders of such permits or
registrations apply for and obtain an
amended permit or submit an amended
registration before engaging in
operations under a new trade name (see,
e.g., 27 CFR 19.129) or requesting FAA
Act label approval reflecting a new trade
name (see 27 CFR 5.36(f)). Currently,
TTB automatically approves trade name
amendments. Consistent with this
policy, TTB is also proposing to amend
27 CFR 19.94 to remove the requirement
that an applicant for an original DSP
operating permit submit supporting
documentation for the trade names
identified in the application. TTB’s
proposed amendments generally would
update regulations to reflect that
industry members may begin operations
under the new name immediately after
notifying TTB.
TTB notes that, while this amendment
would allow industry members to
immediately begin operations under a
new trade name upon notifying TTB, it
remains the responsibility of the permit
holder or registered alcohol dealer to
ensure that any trade name is properly
registered with the applicable state or
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local government. Industry members
should further note that the FAA Act
prohibits false or misleading statements
on alcohol beverage labels, and TTB
will not approve an application for label
approval proposing to use a trade name
on a label that gives a misleading
impression as to the age, origin, or
identity of the product. The FAA Act
also prohibits the use of misleading
trade names when advertising distilled
spirits for beverage purposes.
F. Retention of Records Off-Premises
As part of its evaluation of permit and
registration applications, TTB sought to
identify types of requests to vary from
the regulations that were commonly
submitted along with a permit or
registration application. One common
request relevant to distilled spirits is to
retain required records at a location
other than the premises covered under
the permit or registration. TTB is
proposing amendments to
recordkeeping requirements in parts 17,
20, 22, 26, 27, 28, and 31 to allow
records to be stored at a location other
than the permitted premises, and allow
applicants to notify TTB of their
intention to store records at an offpremises location as part of the
application process. The amendments
provide that required records must still
be made available at the permitted
premises upon request, but that copies
(including electronic copies) will
generally satisfy this requirement.
The TTB regulations at 27 CFR 19.573
provide that a DSP’s records may be
maintained at the DSP or at a central
recordkeeping location maintained by
the DSP proprietor. In the latter case,
the proprietor must submit a letterhead
notice to TTB informing TTB of the
location where the records are kept.
Section 19.574, concerning availability
of records, further provides that if
records are kept at a location other than
the DSP premises, they must
nonetheless be made available at the
DSP premises upon request, generally
within two days of the request.
The current recordkeeping
requirements applicable to TTBregulated manufacturers of nonbeverage
products, specially denatured spirits
dealers and users, tax-free alcohol users,
importers, wholesalers, and alcohol
beverage dealers do not similarly allow
records to be maintained at a location
other than the premises covered by the
permit or registration. As a result, such
proprietors generally must submit a
request for specific authorization to
retain records at a central recordkeeping
location rather than at the premises
covered by the permit or registration.
TTB proposes to amend the record
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retention requirements applicable to
such entities (i.e., record retention
requirements in 27 CFR parts 17, 20, 22,
26, 27, 28, and 31) to reflect those set
forth in §§ 19.573 and 19.574, described
above. TTB also proposes amendments
to § 19.574, as well as other record
retention provisions in part 19, intended
to clarify that an industry member
generally may satisfy a request for
documents by providing copies of such
documents, including electronic copies.
IV. Regulatory Analysis and Notices
A. Executive Order 12866
III. Public Participation
It has been determined that this
proposed rule is not a significant
regulatory action as defined by
Executive Order 12866. Therefore, a
regulatory impact assessment is not
required.
A. Comments Invited
B. Regulatory Flexibility Act
TTB invites comments from interested
members of the public on this proposed
rulemaking. TTB also invites comments
on any additional means to streamline
application processes within the
parameters of TTB’s statutory
obligations.
In accordance with the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.),
TTB has analyzed the potential
economic effects of this action on small
entities. In lieu of the initial regulatory
flexibility analysis required to
accompany proposed rules under 5
U.S.C. 603, section 605 allows the head
of an agency to certify that a rule will
not, if promulgated, have a significant
economic impact on a substantial
number of small entities. The following
analysis provides the factual basis for
TTB’s certification under section 605.
B. Submitting Comments
You may submit comments on this
proposal as an individual or on behalf
of a business or other organization via
the Regulations.gov website or via
postal mail, as described in the
ADDRESSES section of this document.
Your comment must reference Notice
No. 207 and must be submitted or
postmarked by the closing date shown
in the DATES section of this document.
You may upload or include attachments
with your comment. You also may
submit a comment requesting a public
hearing on this proposal. The TTB
Administrator reserves the right to
determine whether to hold a public
hearing. If TTB schedules a public
hearing, it will publish notification of
the date, time, and place for the hearing
in the Federal Register.
C. Confidentiality and Disclosure of
Comments
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regarding comments on this proposal or
to request copies of this document, its
supporting materials, or the comments
received in response.
All submitted comments and
attachments are part of the rulemaking
record and are subject to public
disclosure. Do not enclose any material
in your comments that you consider
confidential or that is inappropriate for
disclosure.
TTB will post, and you may view,
copies of this document, its supporting
materials, and any comments TTB
receives about this proposal within the
related Regulations.gov docket. In
general, TTB will post comments as
submitted, and it will not redact any
identifying or contact information from
the body of a comment or attachment.
Please contact TTB’s Regulations and
Rulings division by email using the web
form available at https://www.ttb.gov/
contact-rrd, or by telephone at 202–453–
2265, if you have any questions
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Impact on Small Entities
While TTB believes the majority of
businesses subject to this proposed rule
are small businesses, the changes
proposed in this document will not
have a significant impact on those small
entities. The proposed amendments are
generally aimed at reducing burden on
regulated entities of all sizes by: (1)
Eliminating the collection of certain
information from applications for
permits or registrations; (2) replacing
required narrative descriptions of an
applicant’s premises with more specific
description requirements; (3) extending
deadlines for reporting certain changes
in a permitted or registered business; (4)
relaxing the requirements associated
with amending the trade names
available for use by a permitted or
registered business; (5) allowing the
maintenance of required records at
locations other than the permitted or
registered premises; and (6) clarifying
and limiting which individuals are
required to submit certain background
information in connection with an
application for permit or registration.
Many of the proposed changes are
consistent with recommendations
submitted by industry in response to
Treasury’s request for recommendations
for Treasury regulations that can be
eliminated, modified, or streamlined in
order to reduce burdens.
Examples of eliminating the
collection of information from
applications for permits or registrations
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are the proposed amendments to
§§ 19.73(a)(12), 19.76, and 19.123,
which eliminate a requirement that an
applicant for a DSP registration submit
a statement of plant security measures
and replace it with a requirement that
the applicant certify its premises is in
compliance with the security
specifications already established at
§ 19.192. Additionally, proposed
amendments to § 19.75 eliminate the
requirement to provide in the
application for registration the serial
numbers of the tanks, stills, and
condensers to be used on the DSP
premises, allowing an application to be
filed when equipment is on order but
not yet received.
The proposed amendments to
§§ 19.73, 19.74, 19.141, 19.142, 19.143,
19.643, 19.673, 19.675, 19.676, and
19.692 replace requirements for
narrative descriptions of an applicant’s
DSP premises with requirements to
submit more specific information
regarding the premises. For example, in
connection with an application for
registration as a DSP, § 19.74 currently
requires a detailed narrative description
of the DSP premises, including each
tract of land covered by the DSP,
featuring ‘‘directions and distances in
enough detail to enable the appropriate
TTB officer to readily determine the
boundaries of the plant.’’ The proposed
amendments to § 19.74 remove the
narrative description requirements and
instead require the submission of more
limited information illustrating certain
specified attributes.
An example of extending deadlines
for reporting changes in a permitted or
registered business is the proposed
amendment to § 19.112, which provides
the general rules for notifying TTB of
any changes in the information included
in a DSP’s notice of registration. Section
19.112 generally requires that when
such changes occur, the proprietor must
file specified documentation with TTB
to amend the registration within 30
days. The proposed amendments to
§ 19.112 extend this deadline to 60 days.
TTB proposes similar amendments at
§§ 19.114, 19.126, 19.127, 19.130,
19.644, 19.683, 19.684, 19.686, 19.687,
19.691, 20.56, 20.57, 22.57, 22.58, and
31.138.
An example of relaxing the reporting
requirements associated with changes in
the trade names available for use by a
permitted or registered business is the
proposed amendment to § 19.129.
Section 19.129 currently requires that a
proprietor of a DSP apply for, and
receive approval of, an amended
operating permit prior to operating
under a new trade name. The proposed
amendment to § 19.129 allows the
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addition of a new trade name through a
letterhead notice that does not require
TTB approval. TTB proposes similar
amendments at §§ 1.40, 20.61, 22.62,
and 31.132.
Concerning records maintenance,
current recordkeeping requirements
applicable to manufacturers of
nonbeverage products, specially
denatured spirits dealers and users, taxfree alcohol users, importers,
wholesalers, and alcohol beverage
dealers do not allow records to be
maintained at a location other than the
premises covered by the permit or
registration. The proposed amendments
to §§ 17.161, 17.171, 20.267, 22.164,
26.174, 26.275, 26.310, 27.136, 28.45,
31.152, 31.172, and 31.181 generally
allow for the maintenance of required
records at locations other than the
permitted or registered premises upon
letterhead notice to TTB.
With respect to the collection of
applicant background information, TTB
proposes amendments to 27 CFR 19.93,
19.677, 20.45, and 22.45 to clarify the
individuals who are required to submit
statements of financial interest in a
business applying for a distilled spiritsrelated permit or registration. The
proposed amendments clarify that: (1)
Such statements of interest are required
only from persons with an ownership
interest in the applicant of 10 percent or
greater; and (2) where a ‘‘person’’
holding such an interest is a legal entity
other than an individual, an applicant
must submit basic identifying
information about a representative
individual for that entity.
In conclusion, while the entities
affected by the proposed rule include a
substantial number of small entities, the
effects of the changes in this proposed
rule are expected to be positive for the
affected entities.
In accordance with the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.),
TTB certifies that this proposed rule, if
promulgated, will not have a significant
economic impact on a substantial
number of small entities. The proposed
rule will not impose, or otherwise
cause, a significant increase in
reporting, recordkeeping, or other
compliance burdens on a substantial
number of small entities. The proposed
rule is not expected to have significant
secondary or incidental effects on a
substantial number of small entities.
Accordingly, a regulatory flexibility
analysis is not required. Pursuant to 26
U.S.C. 7805(f), TTB will submit the
proposed regulations to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on the impact of the proposed
regulations on small businesses.
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C. Paperwork Reduction Act
Regulations addressed in this
document contain current collections of
information that have been previously
reviewed and approved by the Office of
Management and Budget (OMB) in
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
3504(h)) and assigned control numbers
1513–0002, 1513–0018, 1513–0019,
1513–0028, 1513–0040, 1513–0041,
1513–0044, 1513–0048, 1513–0051,
1513–0052, 1513–0059, 1513–0060,
1513–0061, 1513–0062, 1513–0065,
1513–0066, 1513–0073, 1513–0075,
1513–0088, 1513–0089, and 1513–0112.
The specific regulatory sections in this
proposed rule that contain collections of
information, either current or proposed,
are §§ 1.27, 1.40, 1.42, 1.44, 17.161,
19.73, 19.74, 19.75, 19.93, 19.94, 19.112,
19.114, 19.119, 19.126, 19.127, 19.129,
19.130, 19.141, 19.142, 19.143, 19.192,
19.574, 19.643, 19.644, 19.673, 19.675,
19.676, 19.677, 19.683, 19.684, 19.686,
19.687, 19.691, 19.692, 20.42, 20.45,
20.56, 20.57, 20.61, 20.267, 22.42, 22.45,
22.57, 22.58, 22.62, 22.164, 26.174,
26.275, 26.310, 27.136, 28.45, 31.114,
31.132, 31.138, 31.152, 31.172, and
31.181. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by OMB.
The amendments that TTB proposes
in this document, along with certain
corresponding policy changes, are
designed to reduce the overall burden
associated with the information
collections noted above. In general, the
proposed amendments involve: (1)
Eliminating the collection of certain
information from applications for
permits or registrations; (2) replacing
required narrative descriptions of an
applicant’s premises with more specific
information; (3) extending deadlines for
reporting certain changes in a permitted
or registered business; (4) relaxing the
requirements associated with amending
the trade names available for use by a
permitted or registered business; (5)
allowing the maintenance of required
records at locations other than the
permitted or registered premises; and (6
clarifying which individuals are
required to submit certain background
information in connection with an
application for permit or registration.
To reduce the amount of information
collected in applications for distilled
spirits-related permits or registrations,
TTB proposes to amend 27 CFR 19.73,
19.75, and 19.192, and to eliminate 27
CFR 19.76, 19.77, and 19.123. Proposed
amendments to § 19.73(a)(13) and the
elimination of § 19.77 eliminate
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requirements that an applicant for a DSP
registration intending to operate as a
distiller submit a statement of its
production procedures and a statement
as to whether spirits will be redistilled.
Proposed amendments to current
§ 19.73(a)(14) eliminate requirements
that an applicant for a DSP registration
intending to operate as a warehouseman
submit a narrative description of its
storage system and a statement of the
total amount of bulk wine gallons that
can be stored. Additionally, proposed
amendments to current § 19.73(a)(15)
eliminate requirements that an
applicant for a DSP registration
intending to operate as a processor
submit a narrative description of the
storage system for spirits bottled and
cased or otherwise packaged and placed
in approved containers for removal from
the bonded premises. Proposed
amendments to §§ 19.73(a)(12) and
19.192, and the elimination of §§ 19.76
and 19.123, eliminate a requirement that
an applicant for a DSP registration
submit a statement of plant security
measures and replace it with a
requirement that the applicant certify its
premises is in compliance with the
security specifications already
established at § 19.192. The
amendments to § 19.192 also generalize
the required specifications for locks to
be used on the DSP premises. The
proposed amendments to § 19.75
eliminate the requirement to provide in
the application for registration the serial
numbers of the tanks, stills, and
condensers to be used on the DSP
premises. Sections 19.73, 19.75, 19.76,
19.77, 19.123, and 19.192 are currently
included in the collection of
information assigned OMB control
number 1513–0048. TTB has submitted
to OMB a revision of that information
collection to account for the reduced
burden of the proposed amendments.
Similar to the amendments to § 19.75
described in the previous paragraph,
TTB proposes amendments 27 CFR
20.42 and 22.42 to remove requirements
to provide serial numbers of equipment
to be used by applicants for permits as
users of denatured alcohol and of taxfree alcohol. Sections 20.42 and 22.42
are currently included in the collection
of information assigned OMB control
number 1513–0028. TTB has submitted
to OMB a revision of that information
collection to account for the reduced
burden of the proposed amendments.
To replace required narrative
descriptions of applicant premises with
more specific information and
certifications, TTB proposes
amendments to 27 CFR 19.73, 19.74,
19.141, 19.142, 19.143, 19.643, 19.673,
19.675, 19.676, and 19.692. The
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proposed amendments to § 19.74
eliminate requirements to submit
detailed narrative descriptions of the
plant and certain of its attributes, and
replace these requirements with a more
specific set of information and
certifications. TTB proposes similar
amendments with respect to
applications for alcohol fuel plant
permits at §§ 19.673, 19.675, and
19.676; and with respect to applications
for vinegar plants at § 19.643. Sections
19.141, 19.142, and 19.143 each relate to
qualifying to alternate the DSP
premises. TTB proposes amendments to
these sections to eliminate requirements
to submit narrative statements
describing the areas to be alternated and
the means by which the alternated areas
will be separated from other parts of the
premises. TTB’s proposed amendments
require more specific information. TTB
proposes similar amendments to with
respect to alternation of an alcohol fuel
plant at § 19.692.
Sections 19.74 and 19.143 are
currently included in the collection of
information assigned OMB control
number 1513–0048; §§ 19.141 and
19.142 are being added to the collection
of information assigned OMB control
number 1513–0048 in revisions
submitted to OMB (these sections were
inadvertently not referenced in the
supporting statement, but their burden
has been accounted for); §§ 19.673,
19.675, and 19.676 are currently
included in the collection of
information assigned OMB control
number 1513–0051; and the amended
provisions of § 19.692 are currently
included in the collection of
information assigned OMB control
number 1513–0051. TTB has submitted
to OMB revisions of those information
collections to account for the reduced
burden of the proposed amendments.
The information collected under
§ 19.643 is not subject to the Paperwork
Reduction Act due to the limited
number of respondents.
The TTB regulations generally require
that, when there is a change in the
information filed with TTB as part of an
application for a permit or registration,
the proprietor of the regulated business
must notify TTB of the change. To
extend deadlines for reporting certain
changes in a permitted or registered
business, TTB proposes amendments to
27 CFR 19.112, 19.114, 19.126, 19.127,
19.130, 19.644, 19.683, 19.684, 19.686,
19.687, 19.691, 20.56, 20.57, 22.57,
22.58, and 31.138. In each case, the
deadline for reporting the specified
change in the business is extended to 60
days, typically from 30 days (in some
cases, current regulatory text required
industry to inform TTB ‘‘immediately’’
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of certain changes; see, e.g., § 19.644).
Sections 19.112 and 19.114 are
currently included in the collection of
information assigned OMB control
number 1513–0048; §§ 19.126 and
19.130 are currently included in the
collection of information assigned OMB
control number 1513–0040; §§ 19.683,
19.684, and 19.686 are currently
included in the collection of
information assigned OMB control
number 1513–0051; §§ 19.683, 19.687,
and 19.691 are currently included in the
collection of information assigned OMB
control number 1513–0052
(additionally, the letterhead application
provisions of § 19.686 are being added
to this collection of information in
revisions submitted to OMB); §§ 20.56
and 20.57 are currently included in the
collection of information assigned OMB
control number 1513–0061; §§ 22.57
and 22.58 are currently included in the
collection of information assigned OMB
control number 1513–0060; and
§ 31.138 is currently included in the
collection of information assigned OMB
control number 1513–0112. TTB has
submitted to OMB revisions of those
information collections to account for
the reduced burden of the proposed
amendments. The revision to number
1513–0040 also adds a reference to
§ 19.127. The information collected
under § 19.644 is not subject to the
Paperwork Reduction Act due to the
limited number of respondents.
The TTB regulations generally require
that changes to, or additions of, the
trade names under which a permitted or
registered business may operate be
made by filing for an amended permit
or registration. Such applications would
need to be approved prior to the
applicant beginning operations under
the new trade name. To relax the
requirements associated with altering
the trade names available for use by a
permitted or registered business, TTB
proposes amendments to 27 CFR 1.40,
19.129, 20.61, 22.62, and 31.132. The
amendments would allow changes to, or
additions of, trade names to be
accomplished by a letterhead notice.
TTB also proposes an amendment to 27
CFR 19.94 to remove the requirement
that an applicant for an original DSP
operating permit submit supporting
documentation for the trade names
identified in the application. Section
1.40 is currently included in the
collection of information assigned OMB
control number 1513–0019; §§ 19.94
and 19.129 are currently included in the
collection of information assigned OMB
control number 1513–0040; § 20.61 is
currently included in the collection of
information assigned OMB control
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number 1513–0061; § 22.62 is currently
included in the collection of
information assigned OMB control
number 1513–0060; and § 31.132
currently included in the collection of
information assigned OMB control
number 1513–0112. TTB has submitted
to OMB revisions of those information
collections to account for the reduced
burden of the proposed amendments.
The current recordkeeping
requirements applicable to specially
denatured spirits dealers and users, taxfree alcohol users, manufacturers of
nonbeverage products, importers,
wholesalers, and alcohol beverage
dealers do not allow records to be
maintained at a location other than the
premises covered by the permit or
registration. As a result, such
proprietors generally must submit a
request for specific authorization to
retain records at a central recordkeeping
location rather than the premises
covered by the permit or registration. To
allow the maintenance of required
records at locations other than the
permitted or registered premises, TTB
proposes amendments to 27 CFR 17.161,
17.171, 20.267, 22.164, 26.174, 26.275,
26.310, 27.136, 28.45, 31.152, 31.172,
and 31.181. These amendments, as well
as amendments to 27 CFR 19.574, also
clarify that an industry member
generally may satisfy a request for
documents by providing copies of such
documents, including electronic copies.
Sections 17.161 and 17.171 are
currently included in the collection of
information assigned OMB control
number 1513–0073; § 19.574 is
currently included in the collection of
information assigned OMB control
number 1513–0041; the general record
retention provisions of § 22.164 are
currently included in the collection of
information assigned OMB control
number 1513–0059, while the proposed
notice associated with off-premises
records retention has been added to the
collection of information assigned OMB
control number 1513–0060 in revisions
submitted to OMB. In addition, § 20.267
is currently included in OMB control
number 1513–0062; §§ 26.174 and
26.310 are currently included in the
collection of information assigned OMB
control number 1513–0089; § 28.45 is
currently included in the collection of
information assigned OMB control
number 1513–0075; §§ 31.152 and
31.172 are currently included in the
collection of information assigned OMB
control number 1513–0065; § 31.181 is
currently included in the collection of
information assigned OMB control
number 1513–0066; and §§ 19.574,
26.174, 26.310, and 27.136 are currently
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included in the collection of
information assigned OMB control
number 1513–0088. TTB has submitted
to OMB revisions of those information
collections as needed to account for the
reduced burden of the proposed
amendments. Additionally, the revision
to OMB control number 1513–0088 adds
references to §§ 26.275 and 28.45. TTB
also submitted to OMB a revision of the
information collection assigned OMB
control number 1513–0061, to add a
reference to § 20.267.
With respect to the collection of
applicant background information, TTB
proposes amendments to 27 CFR 19.93,
19.677, 20.45, 22.45, and 31.114 to
clarify the individuals who are required
to submit statements of financial
interest in the applicant business. The
above regulations generally require
statements disclosing the identities of
persons holding certain levels of
ownership in a business applying for a
distilled spirits-related registration or
permit be submitted with such
applications. The proposed
amendments clarify that (1) Such
statements of interest are required only
from persons with an ownership interest
in the applicant of 10 percent or greater;
and (2) where a ‘‘person’’ holding such
an interest is a legal entity other than an
individual, an applicant must submit
basic identifying information about a
representative individual for that entity.
Section 19.93 is currently included in
the collection of information assigned
OMB control number 1513–0040, and
TTB has proposed revisions to also
include it in the collection of
information assigned OMB control
number 1513–0048; § 19.677 is
currently included in the collection of
information assigned OMB control
number 1513–0051; §§ 20.45 and 22.45
are currently included in the collection
of information assigned OMB control
number 1513–0028; and § 31.114 is
currently included in the collection of
information assigned OMB control
number 1513–0112. TTB proposes
conforming amendments to 27 CFR
1.27, 1.42, 1.44, 19.114, 19.127, 19.130,
19.684, and 19.687, each relating to
reporting changes in the ownership of
the applicant or permitted business, to
update the description of ownership
interests consistent with the
amendments described above. Section
1.27 is currently included in the
collection of information assigned OMB
control number 1513–0018; § 1.42 is
currently included in the collection of
information assigned OMB control
number 1513–0019; § 19.114 is
currently included in the collection of
information assigned OMB control
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number 1513–0048; § 19.130 is
currently included in the collection of
information assigned OMB control
number 1513–0040; § 19.684 currently
included in the collection of
information assigned OMB control
number 1513–0051; and § 19.687 is
currently included in the collection of
information assigned OMB control
number 1513–0052. TTB has submitted
to OMB revisions of the collections of
information assigned OMB control
numbers 1513–0019 and 1513–0040 to
add references to §§ 1.44 and 19.127,
respectively. The burden for these
sections was already accounted for, but
citations to these sections were left out
in error.
As noted above, TTB has submitted
the revised information collection
requirements to OMB for review.
Comments on these revised
recordkeeping and reporting
requirements should be sent to OMB at
Office of Management and Budget,
Attention: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503 or by email to
OIRA_submissions@omb.eop.gov. A
copy should also be sent to TTB by any
of the methods previously described.
Comments on the information
collections should be submitted no later
than February 1, 2022. Comments are
specifically requested concerning:
• Whether the collections of
information submitted to OMB are
necessary for the proper performance of
the functions of the Alcohol and
Tobacco Tax and Trade Bureau,
including whether the information will
have practical utility;
• The accuracy of the estimated
burdens associated with the collections
of information submitted to OMB;
• How to enhance the quality, utility,
and clarity of the information to be
collected;
• How to minimize the burden of
complying with the proposed revisions
of the collections of information,
including the application of automated
collection techniques or other forms of
information technology; and
• Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
List of Subjects
27 CFR Part 1
Alcohol and alcoholic beverages,
Application procedures, Distilled spirits
plants, Importers, Permit requirements,
Reporting and recordkeeping
requirements, Trade names,
Wholesalers.
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27 CFR Part 17
Claims, Excise taxes, Liquors,
Reporting and recordkeeping
requirements.
27 CFR Part 19
Alcohol and alcoholic beverages,
Alcohol fuel plants, Alternation,
Application procedures, Distilled spirits
plants, Permit requirements,
Registration requirements, Reporting
and recordkeeping requirements,
Security requirements, Trade names,
Vinegar plants.
27 CFR Part 20
Alcohol, Application procedures,
Denatured spirits, Distilled spirits
plants, Permit requirements, Reporting
and recordkeeping requirements,
Specially denatured spirits, Trade
names.
27 CFR Part 22
Alcohol, Application procedures,
Permit requirements, Reporting and
recordkeeping requirements, Tax-free
alcohol.
27 CFR Part 26
Alcohol and alcohol beverages, Puerto
Rico, Reporting and recordkeeping
requirements, Virgin Islands.
27 CFR Part 27
Alcohol and alcohol beverages,
Importation, Importers, Reporting and
recordkeeping requirements.
27 CFR Part 28
Alcohol and alcohol beverages,
Exportation, Exporters, Reporting and
recordkeeping requirements.
27 CFR Part 31
Alcohol and alcohol beverages,
Reporting and recordkeeping
requirements, Retail dealers, Trade
names, Wholesale dealers.
Amendments to the Regulations
For the reasons discussed above in the
preamble, TTB proposes to amend 27
CFR parts 1, 17, 19, 20, 22, 26, 27, 28,
and 31 as follows:
PART 1—BASIC PERMIT
REQUIREMENTS UNDER THE
FEDERAL ALCOHOL
ADMINISTRATION ACT,
NONINDUSTRIAL USE OF DISTILLED
SPIRITS AND WINE, BULK SALES AND
BOTTLING OF DISTILLED SPIRITS
1. The authority citation for part 1
continues to read as follows:
■
Authority: 27 U.S.C. 203, 204, 206, 211
unless otherwise noted.
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2. Section 1.24 is amended by revising
paragraph (a) to read as follows:
■
§ 1.24
Qualifications of applicants.
*
*
*
*
*
(a) Such person (or in case of a
limited liability entity, any of its
officers, directors, or persons holding a
10 percent or more ownership interest
in any of the classes or types of
ownership of the applicant) has not,
within 5 years prior to the date of
application, been convicted of a felony
under Federal or State law, and has not,
within 3 years prior to the date of
application, been convicted of a
misdemeanor under any Federal law
relating to liquor, including the taxation
thereof; and
*
*
*
*
*
■ 3. Section 1.27 is revised to read as
follows:
§ 1.27 Change in ownership, management,
or control of the applicant.
In the event of any change in the
ownership, management, or control of
the applicant (in case of a limited
liability entity, any change in the
officers, directors, or persons holding a
10 percent or more ownership interest
in any of the classes or types of
ownership of the applicant), after the
date of filing of any application for a
basic permit and prior to final action on
such application, the applicant must
notify the appropriate TTB officer
immediately of such change.
■ 4. Section 1.40 is revised to read as
follows:
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§ 1.40
Change in name.
(a) Legal name. In the event of any
change in the name of the individual,
firm, corporation, or other entity
holding a basic permit, the permittee
must file application form TTB F
5100.18 for an amended basic permit.
The application must be approved and
an amended permit issued before
operations may be commenced under
the new name.
(b) Trade name. In the event of any
change in a trade name of a permittee,
or, in the event a permittee desires to
engage in operations under an
additional trade name, the permittee
must first file a letterhead notice with
the appropriate TTB officer listing the
new names and the offices where they
are registered.
(Approved by the Office of Management and
Budget under control number 1513–0019)
5. Section 1.42 is revised to read as
follows:
■
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§ 1.42 Change in ownership, management,
or control of business.
In the event of any change in the
ownership, management, or control of
any business operated pursuant to a
basic permit (in case of a limited
liability entity, any change in the
officers, directors, or persons holding a
10 percent or more ownership interest
in any of the classes or types of
ownership of the permittee) the
permittee must within 30 days notify
the appropriate TTB officer of such
change, giving the names and addresses
of all new persons participating in the
ownership, management, or control of
such business. Notice to the appropriate
TTB officer of any such change must be
accompanied or supplemented by such
data in reference to the personal or
business history of such persons as the
appropriate TTB officer may require.
§ 1.44
[Amended]
6. Section 1.44 is amended by
removing the word ‘‘stock’’ in the
second sentence.
■
PART 17—DRAWBACK ON TAXPAID
DISTILLED SPIRITS USED IN
MANUFACTURING NONBEVERAGE
PRODUCTS
7. The authority citation for part 17
continues to read as follows:
■
Authority: 26 U.S.C. 5010, 5111–5114,
5123, 5206, 5273, 6065, 6091, 6109, 7213,
7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
8. Section 17.161 is revised to read as
follows:
■
§ 17.161
General.
Each person claiming drawback on
taxpaid distilled spirits used in the
manufacture of nonbeverage products
must maintain records showing the
information required in this subpart. No
particular form is prescribed for these
records, but the data required to be
shown must be clearly recorded and
organized to enable appropriate TTB
officers to trace each operation or
transaction, monitor compliance with
law and regulations, and verify the
accuracy of each claim. Ordinary
business records, including invoices
and cost accounting records, are
acceptable if they show the required
information or are annotated to show
any such information that is lacking.
The records must be kept complete and
current at all times and must be retained
by the manufacturer for the period
prescribed in § 17.170 and at the place
prescribed in § 17.171.
■ 9. Section 17.171 is amended by:
■ a. Designating the paragraph as
paragraph (a);
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b. Removing the word ‘‘shall’’ each
place it appears and adding in its place
the word ‘‘must’’ in newly designated
paragraph (a);
■ c. Adding paragraph (b); and
■ d. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
§ 17.171
Inspection of records.
*
*
*
*
*
(b) A manufacturer may keep the
records required by this part at a
location other than the premises where
the distilled spirits are used in the
manufacture or production of
nonbeverage products, if he or she has
first provided a letterhead notice to the
appropriate TTB officer, identifying the
location where the records are to be
kept. A manufacturer keeping records at
a location other than the premises
where distilled spirits are used in the
manufacture or production of
nonbeverage products must make the
records available at such premises upon
request of the appropriate TTB officer;
however, the TTB officer may, at his or
her discretion, allow the permittee to
supply copies (including electronic
copies) of such records instead of the
originals.
PART 19—DISTILLED SPIRITS
PLANTS
10. The authority citation for part 19
continues to read as follows:
■
Authority: 19 U.S.C. 81c, 1311; 26 U.S.C.
5001, 5002, 5004–5006, 5008, 5010, 5041,
5061, 5062, 5066, 5081, 5101, 5111–5114,
5121–5124, 5142, 5143, 5146, 5148, 5171–
5173, 5175, 5176, 5178–5181, 5201–5204,
5206, 5207, 5211–5215, 5221–5223, 5231,
5232, 5235, 5236, 5241–5243, 5271, 5273,
5301, 5311–5313, 5362, 5370, 5373, 5501–
5505, 5551–5555, 5559, 5561, 5562, 5601,
5612, 5682, 6001, 6065, 6109, 6302, 6311,
6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301,
9303, 9304, 9306.
11. Section 19.73 is amended by:
a. Revising paragraphs (a)(12) and
(13);
■ b. Removing paragraph (a)(14);
■ c. Redesignating paragraph (a)(15) as
paragraph (a)(14) and revising newly
redesignated paragraph (a)(14);
■ d. Redesignating paragraph (a)(16) as
paragraph (a)(15); and
■ e. Removing the parenthetical
authority citation at the end of the
section.
The revisions read as follows:
■
■
§ 19.73 Information required in an
application for registration.
(a) * * *
(12) A certification that the plant’s
security will be in compliance with
§ 19.192;
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(13) If the applicant intends to operate
as a distiller, a statement of the total
proof gallons of spirits that can be
produced daily;
(14) If the applicant intends to operate
as a processor, a statement whether
spirits will or will not be bottled,
denatured, redistilled, and whether
articles will be manufactured; and
*
*
*
*
*
■ 12. Section 19.74 is revised to read as
follows:
§ 19.74
Description of the plant.
(a) As required by § 19.73(a)(8), the
application for registration must include
a description of the distilled spirits
plant. The description may be in
narrative form or diagram form, and
must illustrate:
(1) The overall dimensions of the
building(s) housing the distilled spirits
plant;
(2) The dimensions of the bonded
premises and any general premises;
(3) Any internal walls establishing the
boundaries of the bonded premises and
general premises;
(4) The external doors of the distilled
spirits plant premises;
(5) Any portions of the plant premises
that are outdoors, including the location
of any outdoor tanks; and
(6) Any adjacent retail premises that
are to be operated by the applicant.
(b) Photographs further illustrating
any of the elements required in
paragraph (a) of this section must be
submitted upon request of the
appropriate TTB officer.
■ 13. Section 19.75 is amended by:
■ a. Revising the first sentences of
paragraphs (a) and (b);
■ b. Revising paragraph (c); and
■ c. Removing the parenthetical
authority citation at the end of the
section.
The revisions read as follows:
§ 19.75
Major equipment.
*
*
*
*
*
(a) The capacity of each tank in the
plant. * * *
(b) The kind, capacity, and intended
use of each still in the plant. * * *
(c) The number of condensers used in
the plant.
§ 19.76
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■
[Removed]
14. Section 19.76 is removed.
§ 19.77
[Removed]
15. Section 19.77 is removed.
16. Section 19.80 is amended by:
a. Adding a sentence before the last
sentence; and
■ b. Removing the parenthetical
authority citation at the end of the
section.
■
■
■
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The addition reads as follows:
§ 19.80
Approved notice of registration.
* * * In a circumstance in which a
proprietor of a distilled spirits plant is
authorized to continue to operate under
either an FAA Act permit or an
operating permit under the IRC while a
new permit application is pending, such
as under 27 CFR 1.44 or 19.127, the
proprietor’s notice of registration will
also remain valid until TTB takes final
action upon the new application. * * *
■ 17. Section 19.93 is amended by:
■ a. Removing the citation to
‘‘19.92(a)(4)’’ and adding in its place
‘‘19.92(b)(4)’’ in the first sentence of
paragraph (a) introductory text;
■ b. Adding the word ‘‘ownership’’
before the word ‘‘interest’’ the first time
it appears in paragraph (b)(1);
■ c. Revising paragraphs (b)(2)(i) and
(ii);
■ d. Adding paragraph (b)(3); and
■ e. Removing the parenthetical
authority citation at the end of the
section.
The revisions and addition read as
follows:
§ 19.93
Applicant organization documents.
*
*
*
*
*
(b) * * *
(2) * * *
(i) The names and addresses of
persons having a 10 percent or more
ownership interest in each of the classes
or types of ownership interest in the
applicant, and the nature and amount of
ownership interest of each person.
(ii) The name of the person in whose
name the interest appears. If the limited
liability entity is under actual or legal
control of another limited liability
entity, the appropriate TTB officer may
request the same information regarding
ownership for the parent limited
liability entity.
(3) Representative. If any interested
person named under paragraphs (b)(1)
and (2) of this section is a legal entity
other than an individual, the applicant
must also provide the name, title, and
city and state of residence of a
representative individual for the entity.
The representative individual must be
the individual designated by the entity
to represent the entity’s interest in the
applicant business or, in the absence of
a designated individual, an owner, chief
officer or manager, or person with
similar authority within the entity.
§ 19.94
[Amended]
18. Section 19.94 is amended by
removing the final sentence in
paragraph (a) and the parenthetical
authority citation at the end of the
section.
■
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19. Section 19.96 is amended by:
a. Revising paragraph (a); and
b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
■
■
§ 19.96
Denial of permit.
*
*
*
*
*
(a) The applicant (including, in the
case of a limited liability entity, any of
its officers, directors, or persons holding
a 10 percent or more ownership interest
in any of the classes or types of
ownership of the applicant) is, by
reason of business experience, financial
standing, or trade connections, not
likely to maintain operations in
compliance with 26 U.S.C. chapter 51,
or the regulations in this chapter;
*
*
*
*
*
§ 19.112
[Amended]
20. Section 19.112 is amended by:
a. Removing the phrase ‘‘30 days’’ and
adding in its place ‘‘60 days’’ in the first
sentence of the introductory text; and
■ b. Removing the parenthetical
authority citation at the end of the
section.
■
■
§ 19.114
[Amended]
21. Section 19.114 is amended by:
a. Adding the words ‘‘an ownership’’
before the word ‘‘interest’’ in the first
sentence of the introductory text;
■ b. Removing the phrase ‘‘30 days’’
each place it appears and adding in its
place ‘‘60 days’’; and
■ c. Removing the parenthetical
authority citation at the end of the
section.
■ 22. Section 19.119 is amended by:
■ a. Designating the paragraph as
paragraph (a);
■ b. Adding paragraph (b); and
■ c. Removing the parenthetical
authority citation at the end of the
section.
The addition reads as follows:
■
■
§ 19.119
Change in premises.
*
*
*
*
*
(b)(1) If the proprietor intends to make
any change to the premises, other than
those covered by paragraph (a) of this
section or by §§ 19.142 and 19.143, that
would render inaccurate the description
submitted with the registration or
submitted separately or previously by
the proprietor with another reported
change, the proprietor must first submit
to TTB updated information meeting the
requirements of § 19.74.
(2) The proprietor may make
emergency changes to the premises
described in paragraph (b)(1) of this
section without first submitting updated
information. However, the proprietor
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must promptly report any emergency
change to the appropriate TTB officer
and submit updated information
meeting the requirements of § 19.74
within 60 days of the emergency
changes.
desires to engage in operations under an
additional trade name, the proprietor
must first file a letterhead notice with
the appropriate TTB officer listing the
new names and the offices where they
are registered.
§ 19.121
§ 19.130
■
§ 19.122
■
[Removed]
[Removed]
25. Section 19.123 is removed.
§ 19.126
[Amended]
26. Section 19.126 is amended by:
a. Removing the phrase ‘‘30 days’’ and
adding in its place ‘‘60 days’’ in
paragraph (a); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
■ 27. Section 19.127 is amended by:
■ a. Revising paragraph (a)(3); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
■
jspears on DSK121TN23PROD with PROPOSALS1
§ 19.127
Automatic termination of permits.
(a) * * *
(3) In the case of a limited liability
entity (i.e., a corporation, limited
liability partnership, limited liability
company, or other legal entity in which
some or all of the owners have limited
personal liability for the activities of the
entity) holding a permit issued under
subpart D of this part, if actual or legal
control of such limited liability entity
changes, directly or indirectly, whether
by reason of a change in ownership or
control (in the permittee limited
liability entity or any other limited
liability entity), by operation of law, or
in any other manner, the permittee must
file an application for a new permit
within 60 days of the change. If an
application for a new permit is not filed
within 60 days of the change, the
outstanding permit will automatically
terminate. If an application for a new
permit is filed within the 60-day period
prescribed in the preceding sentences,
the outstanding permit will remain in
effect until TTB takes final action on the
application. When TTB takes final
action on the application, the
outstanding permit will automatically
terminate.
*
*
*
*
*
■ 28. Section 19.129 is revised to read
as follows:
§ 19.129
Change in trade name.
In the event of any change in a trade
name of a proprietor of a distilled spirits
plant, or, in the event a proprietor
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[Amended]
29. Section 19.130 is amended by:
a. Adding the words ‘‘an ownership’’
before the word ‘‘interest’’ in the first
sentence of the introductory text;
■ b. Removing the phrase ‘‘30 days’’
each place it appears and adding in its
place ‘‘60 days’’; and
■ c. Removing the parenthetical
authority citation at the end of the
section.
■ 30. Section 19.141 is amended by:
■ a. Revising paragraph (a);
■ b. Removing the word ‘‘diagrams’’ and
adding in its place ‘‘description’’ in
paragraph (b)(4); and
■ c. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
■
24. Section 19.122 is removed.
§ 19.123
■
[Removed]
23. Section 19.121 is removed.
§ 19.141 Procedures for alternation of
proprietors.
(a) General. A proprietor may
alternate use of a distilled spirits plant
or part of the plant with one or more
other proprietors. In order to do so, each
proprietor must separately file and
receive approval of the necessary
registration, applications and bonds that
are required by subpart D of this part
and this subpart. Each proprietor must
also conduct operations and keep
records in accordance with the
regulations in this part. Where
operations by alternating proprietors
will be limited to parts of the plant, the
descriptions required to be submitted
with each proprietor’s application for
registration under § 19.73(a)(8) must
additionally illustrate the following:
(1) The areas, rooms, or buildings, or
combination of rooms and/or buildings,
that will alternate between proprietors;
and
(2) The means by which the alternated
premises will be separated from any
premises that will not be alternated.
*
*
*
*
*
■ 31. Section 19.142 is amended by:
■ a. Revising paragraph (b);
■ b. Removing the word ‘‘diagrams’’ and
adding in its place ‘‘description’’ in
paragraph (c)(3); and
■ c. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
§ 19.142 Alternate use of premises and
equipment for customs purposes.
*
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(b) Qualification. Before alternating
the plant premises for customs
purposes, the proprietor must file and
receive approval of the necessary
registration, application and bonds as
required by this part. The description
required to be submitted with the
proprietor’s application for registration
under § 19.73(a)(8) must additionally
illustrate the following:
(1) The areas, rooms, or buildings, or
combination of rooms and/or buildings,
that will alternate between proprietors;
and
(2) The means by which the alternated
premises will be separated from any
premises that will not be alternated.
*
*
*
*
*
■ 32. Section 19.143 is amended by:
■ a. Revising paragraph (b)(2); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
§ 19.143
Alternation for other purposes.
*
*
*
*
*
(b) * * *
(2) Description. For all alternate uses,
the proprietor must provide additional
versions of the description required
under § 19.73(a)(8) describing or
showing the premises as they will exist,
both during extension and curtailment,
and clearly depicting all buildings,
floors, rooms, areas, equipment that are
to be subject to alternation, in their
relative operating sequence.
*
*
*
*
*
■ 33. Section 19.192 is amended by:
■ a. Revising paragraph (e);
■ b. Removing paragraph (f);
■ c. Redesignating paragraph (g) as
paragraph (f); and
■ d. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
§ 19.192
Security.
*
*
*
*
*
(e) Locks. Locks of a class and
construction that is usual and
customary in the industry to prevent
unauthorized access to, and theft of,
commercial property must be used to
secure:
(1) Outdoor tanks used to store spirits,
or an enclosure around such tanks;
(2) Indoor tanks used to store spirits,
or the door from which access may be
gained from the outside to the rooms or
buildings in which such tanks are
housed; and
(3) Any doors from which access may
be gained from the outside to rooms or
buildings containing spirits stored in
portable bulk containers.
*
*
*
*
*
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The revision reads as follows:
34. Section 19.574 is revised to read
as follows:
■
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§ 19.574
§ 19.644 Changes after original
qualification.
Availability of records.
The records required by this part must
be available for inspection by the
appropriate TTB officer during normal
business hours. Any proprietor keeping
records at a location other than the
distilled spirits plant where operations
or transactions occur must make them
available at the distilled spirits plant
premises upon request of the
appropriate TTB officer; however, the
TTB officer may, in his or her
discretion, allow the proprietor to
supply copies (including electronic
copies) of such records instead of the
originals.
■ 35. Section 19.643 is revised to read
as follows:
If there is any change in the
information that was provided in an
approved application, the proprietor of
the vinegar plant must notify the
appropriate TTB officer in writing
within 60 days of the change. * * *
■ 37. Section 19.673 is amended by:
■ a. Revising paragraphs (b)(2) and (6);
■ b. Redesignating paragraphs (c)
through (e) as paragraph (d) through (f);
■ c. Adding a new paragraph (c); and
■ d. Removing the parenthetical
authority citation at the end of the
section.
The revisions and addition read as
follows:
§ 19.643
*
Qualification requirements.
(a) General. Before beginning the
business of manufacturing vinegar by
the vaporizing process, a person must
make written application to the
appropriate TTB officer and receive
approval of the application from TTB.
The application must include:
(1) The applicant’s name and
principal business address (including
the plant address if different from the
applicant’s principal business address);
(2) A description of the plant
premises;
(3) A description of the operations to
be conducted; and
(4) A description of each still,
including the name and address of the
owner, the kind of still and its capacity,
and the purpose for which the still was
set up.
(b) Specifications of plant description.
(1) The description required by
paragraph (a)(2) of this section may be
in narrative form or diagram form, and
must describe or illustrate the following:
(i) The overall dimensions of the
building(s) housing the vinegar plant;
(ii) The dimensions of the bonded
premises and any general premises;
(iii) Any internal walls establishing
the boundaries of the bonded premises
and general premises;
(iv) The external doors of the plant
premises; and
(v) Any portions of the plant premises
that are outdoors, including the location
of any outdoor tanks.
(2) Photographs further illustrating
the elements required under paragraph
(b)(1) of this section must be submitted
upon request of the appropriate TTB
officer.
■ 36. Section 19.644 is amended by:
■ a. Revising the first sentence; and
■ b. Removing the parenthetical
authority citation at the end of the
section.
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§ 19.673
Small plant permit applications.
*
*
*
*
(b) * * *
(2) A description of the plant
premises;
*
*
*
*
*
(6) A certification that the plant’s
construction and security will be in
compliance with §§ 19.703 and 19.704.
(c) Specifications of plant description.
(1) The description required by
paragraph (b)(2) of this section may be
in narrative form or diagram form, and
must describe or illustrate the following:
(i) The overall dimensions of the
building(s) housing the alcohol fuel
plant;
(ii) The dimensions of the bonded
premises and any general premises;
(iii) Any internal walls establishing
the boundaries of the bonded and
general premises;
(iv) The external doors of the plant
premises; and
(v) Any portions of the plant premises
that are outdoors, including the location
of any outdoor tanks.
(2) Photographs further illustrating
the elements required under paragraph
(c)(1) of this section must be submitted
upon request of the appropriate TTB
officer.
*
*
*
*
*
■ 38. Section 19.675 is amended by:
■ a. Revising paragraphs (b)(2), (6), and
(8);
■ b. Redesignating paragraphs (c)
through (f) as paragraphs (d) through (g);
■ c. Adding a new paragraph (c); and
■ d. Removing the parenthetical
authority citation at the end of the
section.
The revisions and addition read as
follows:
§ 19.675
*
Medium plant permit applications.
*
*
(b) * * *
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*
Fmt 4702
*
Sfmt 4702
(2) A description of the plant
premises;
*
*
*
*
*
(6) A certification that the plant’s
construction and security will be in
compliance with §§ 19.703 and 19.704;
*
*
*
*
*
(8) Information identifying the
principal persons involved in the
management of the business. This
identifying information must include
each person’s name, address, and title;
*
*
*
*
*
(c) Specifications of plant description.
(1) The description required by
paragraph (b)(2) of this section may be
in narrative form or diagram form, and
must describe or illustrate the following:
(i) The overall dimensions of the
building(s) housing the alcohol fuel
plant;
(ii) The dimensions of the bonded
premises and any general premises;
(iii) Any internal walls establishing
the boundaries of the bonded premises
and general premises;
(iv) The external doors of the plant
premises; and
(v) Any portions of the plant premises
that are outdoors, including the location
of any outdoor tanks.
(2) Photographs further illustrating
the elements required under paragraph
(c)(1) of this section must be submitted
upon request of the appropriate TTB
officer.
*
*
*
*
*
■ 39. Section 19.676 is amended by:
■ a. Revising paragraphs (b)(2), (6), and
(8);
■ b. Redesignating paragraphs (c)
through (g) as paragraph (d) through (h);
■ c. Adding a new paragraph (c); and
■ d. Removing the parenthetical
authority citation at the end of the
section.
The revisions and addition read as
follows:
§ 19.676
Large plant permit applications.
*
*
*
*
*
(b) * * *
(2) A description of the plant
premises;
*
*
*
*
*
(6) A certification that the plant’s
construction and security will be in
compliance with §§ 19.703 and 19.704;
*
*
*
*
*
(8) Information identifying the
principal persons involved in the
management of the business. This
identifying information must include
each person’s name, address, and title;
*
*
*
*
*
(c) Specifications of plant description.
(1) The description required by
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paragraph (b)(2) of this section may be
in narrative form or diagram form, and
must describe or illustrate the following:
(i) The overall dimensions of the
building(s) housing the alcohol fuel
plant;
(ii) The dimensions of the bonded
premises and any general premises;
(iii) Any internal walls establishing
the boundaries of the bonded premises
and general premises;
(iv) The external doors of the plant
premises; and
(v) Any portions of the plant premises
that are outdoors, including the location
of any outdoor tanks.
(2) Photographs further illustrating
the elements required under paragraph
(c)(1) of this section must be submitted
upon request of the appropriate TTB
officer.
*
*
*
*
*
■ 40. Section 19.677 is amended by:
■ a. Revising paragraphs (a)(2) and (d);
and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revisions read as follows:
§ 19.677 Large plant applications—
organizational documents.
jspears on DSK121TN23PROD with PROPOSALS1
*
*
*
*
*
(a) * * *
(2) A list of officers and directors with
their names and addresses;
*
*
*
*
*
(d) Statement of interest—(1) Sole
proprietorships and general
partnerships. In the case of an
individual owner or a general
partnership, the applicant must provide
the name and address of each person
having an ownership interest in the
business and a statement indicating
whether the interest appears in the
name of the interested person or in the
name of another person.
(2) Limited liability entities. In the
case of a corporation, limited liability
partnership, limited liability company,
or other legal entity in which some or
all of the owners have limited personal
liability for the activities of the entity,
the applicant must provide the
following information about persons
having an ownership interest in the
business:
(i) The names and addresses of
persons having a 10 percent or more
ownership interest in each of the classes
or types of ownership interests in the
applicant, and the nature and amount of
ownership interest of each person.
(ii) The name of the person in whose
name the interest appears. If the limited
liability entity is under actual or legal
control of another limited liability
entity, the appropriate TTB officer may
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request the same information regarding
ownership for the parent limited
liability entity.
(3) Representative. If any interested
person named under paragraphs (d)(1)
and (2) of this section is a legal entity
other than an individual, the applicant
must also provide the name, title, and
city and state of residence of a
representative individual for the entity.
The representative individual must be
the individual designated by the entity
to represent the entity’s interest in the
applicant business or, in the absence of
a designated individual, an owner, chief
officer or manager, or person with
similar authority within the entity.
*
*
*
*
*
■ 41. Section 19.678 is amended by:
■ a. Revising paragraph (a); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
§ 19.678
Criteria for issuance of permit.
*
*
*
*
*
(a) The applicant (including, in the
case of a limited liability entity, any of
its officers, directors, or persons holding
a 10 percent or more ownership interest
in any of the classes or types of
ownership of the applicant) is, by
reason of business experience, financial
standing, or trade connections, not
likely to maintain operations in
compliance with 26 U.S.C. chapter 51,
or the regulations in this chapter;
*
*
*
*
*
§ 19.683
[Amended]
42. Section 19.683 is amended by:
a. Removing the phrase ‘‘30 days’’
each place it appears and adding in its
place ‘‘60 days’’; and
■ b. Removing the parenthetical
authority citation at the end of the
section.
■ 43. Section 19.684 is amended by:
■ a. Revising paragraph (b); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
■
§ 19.684
Automatic termination of permits.
*
*
*
*
*
(b) Limited liability entities. In the
case of a limited liability entity (i.e., a
corporation, limited liability
partnership, limited liability company,
or other legal entity in which some or
all of the owners have limited personal
liability for the activities of the entity)
holding a permit issued under this
subpart, if actual or legal control of such
limited liability entity changes, directly
or indirectly, whether by reason of a
change in ownership or control (in the
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Fmt 4702
Sfmt 4702
68589
permittee limited liability entity or any
other limited liability entity), by
operation of law, or in any other
manner, the permittee must file an
application for a new permit within 60
days of the change. If an application for
a new permit is not filed within 60 days
of the change, the outstanding permit
will automatically terminate. If an
application for a new permit is filed
within the 60-day period prescribed in
the preceding sentences, the
outstanding permit will remain in effect
until TTB takes final action on the
application. When TTB takes final
action on the application, the
outstanding permit will automatically
terminate.
§ 19.686
[Amended]
44. Section 19.686 is amended by:
a. Removing the phrase ‘‘30 days’’ and
adding in its place ‘‘60 days’’ in the first
sentence; and
■ b. Removing the parenthetical
authority citation at the end of the
section.
■ 45. Section 19.687 is revised to read
as follows:
■
■
§ 19.687 Changes in officers, directors,
members, managers, or principal persons.
If there is a change in the list of
officers, directors, members, managers,
or other principal persons furnished
under the provisions of § 19.675,
§ 19.676, or § 19.677, the proprietor
must submit a letterhead notice to the
appropriate TTB officer within 60 days
of the change. The letterhead notice
must identify each change and must
include the identifying information for
each new officer, director, member,
manager, or other principal person
required by § 19.675, § 19.676, or
§ 19.677.
§ 19.691
[Amended]
46. Section 19.691 is amended by:
a. Removing the phrase ‘‘30 days’’ and
adding in its place ‘‘60 days’’; and
■ b. Removing the parenthetical
authority citation at the end of the
section.
■ 47. Section 19.692 is amended by:
■ a. Revising paragraph (b)(2); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
■
§ 19.692 Qualifying for alternating
proprietorship.
*
*
*
*
*
(b) * * *
(2) Additional versions of the
description required under
§ 19.673(b)(2), § 19.675(b)(2), or
§ 19.676(b)(2) describing or illustrating
the arrangement for the alternation of
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the premises. Where operations by
alternating proprietors are limited to
parts of an alcohol fuel plant, the
description or illustration must include
the areas, rooms, or buildings, or
combination of rooms and/or buildings,
that will alternate between proprietors.
The description or illustration must also
include the means by which the
alternated premises will be separated
from any premises that will not be
alternated. A description or illustration
must be submitted for each arrangement
under which the premises will be
operated;
*
*
*
*
*
§ 19.761
[Amended]
48. Section 19.761 is amended by
removing the entries for §§ 19.76, 19.77,
19.121, 19.122, and 19.123 from the
table in paragraph (b).
■
PART 20—DISTRIBUTION AND USE OF
DENATURED ALCOHOL AND RUM
49. The authority citation for part 20
continues to read as follows:
■
Authority: 26 U.S.C. 5001, 5206, 5214,
5271–5275, 5311, 5552, 5555, 5607, 6065,
7805.
§ 20.42
[Amended]
50. Section 20.42 is amended by
removing the phrase ‘‘serial number,’’ in
paragraph (a)(8).
■ 51. Section 20.45 is amended by
revising paragraph (c) to read as follows:
Organizational documents.
jspears on DSK121TN23PROD with PROPOSALS1
*
*
*
*
*
(c) Statement of interest—(1) Sole
proprietorships and general
partnerships. In the case of an
individual owner or a general
partnership, the applicant must provide
the name and address of each person
having an ownership interest in the
business and a statement indicating
whether the interest appears in the
name of the interested person or in the
name of another person.
(2) Limited liability entities. In the
case of a corporation, limited liability
partnership, limited liability company,
or other legal entity in which some or
all of the owners have limited personal
liability for the activities of the entity,
the applicant must provide the
following information about persons
having an interest in the business:
(i) The names and addresses of
persons having a 10 percent or more
ownership interest in each of the classes
or types of ownership interest of the
applicant, and the nature and amount of
ownership interest of each person.
(ii) The name of the person in whose
name the interest appears. If the limited
liability entity is under actual or legal
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days of the change. If an application for
a new permit is not filed within 60 days
of the change, the outstanding permit
will automatically terminate. If an
application for a new permit is filed
within the 60-day period prescribed
above, the outstanding permit will
remain in effect until TTB takes final
action on the application. When TTB
takes final action on the application, the
outstanding permit will automatically
terminate.
*
*
*
*
*
■ 54. Section 20.61 is revised to read as
follows:
§ 20.56 Changes affecting applications
and permits.
(Approved by the Office of Management and
Budget under control number 1513–0061)
*
■
§ 20.45
control of another limited liability
entity, the appropriate TTB officer may
request the same information regarding
ownership for the parent limited
liability entity.
(3) Representative. If any interested
person named under paragraphs (c)(1)
and (2) of this section is a legal entity
other than an individual, the applicant
must also provide the name, title, and
city and state of residence of a
representative individual for the entity.
The representative individual must be
the individual designated by the entity
to represent the entity’s interest in the
applicant business or, in the absence of
a designated individual, an owner, chief
officer or manager, or person with
similar authority within the entity.
■ 52. Section 20.56 is amended by:
■ a. Removing the phrase ‘‘30 days’’ and
adding in its place ‘‘60 days’’ in
paragraph (a)(1); and
■ b. Revising paragraphs (c) heading
and (c)(3).
The revisions read as follows:
*
*
*
*
(c) Changes in officers, directors, and
ownership interests. * * *
(3) Ownership interests. In lieu of
reporting all changes, within 60 days, to
the list of persons with an ownership
interest furnished under the provisions
of § 20.45(c), a permittee may, upon
filing written notice to the appropriate
TTB officer and establishing a reporting
date, file an annual notice of changes.
The notice of changes in ownership
interest holders does not apply if the
sale or transfer of ownership interest(s)
results in a change in ownership or
control which is required to be reported
under § 20.57.
*
*
*
*
*
■ 53. Section 20.57 is amended by
revising paragraph (b) to read as follows:
§ 20.57
Automatic termination of permits.
*
*
*
*
*
(b) Limited liability entities. In the
case of a limited liability entity (i.e., a
corporation, limited liability
partnership, limited liability company,
or other legal entity in which some or
all of the owners have limited personal
liability for the activities of the entity)
holding a permit issued under this part,
if actual or legal control of such limited
liability entity changes, directly or
indirectly, whether by reason of a
change in ownership or control (in the
permittee limited liability entity or any
other limited liability entity), by
operation of law, or in any other
manner, the permittee must file an
application for a new permit within 60
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Fmt 4702
Sfmt 4702
§ 20.61
Change in trade name.
In the event of any change in a trade
name of a permittee, or, in the event a
permittee desires to engage in
operations under an additional trade
name, the permittee must first file a
letterhead notice with the appropriate
TTB officer listing the names and the
offices where they are registered.
55. Section 20.267 is amended by
revising the section heading and
paragraphs (b) and (c) to read as follows:
■
§ 20.267
Filing and retention of records.
*
*
*
*
*
(b) File all records and copies of
reports at the premises where the
operations are conducted. A permittee
may keep the required records at a
location other than the permitted
premises, if he or she has first provided
a letterhead notice to the appropriate
TTB officer identifying the location
where the records are to be kept.
(c) Make the files of records and
copies of reports available for inspection
by the appropriate TTB officer during
regular business hours. Any permittee
keeping records at a location other than
the premises where operations are
conducted must make them available at
such premises upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow the permittee to supply copies
(including electronic copies) of such
records instead of the originals.
PART 22—DISTRIBUTION AND USE OF
TAX-FREE ALCOHOL
56. The authority citation for part 22
continues to read as follows:
■
Authority: 26 U.S.C. 5001, 5121, 5123,
5206, 5214, 5271–5275, 5311, 5552, 5555,
6056, 6061, 6065, 6109, 6151, 6806, 7805; 31
U.S.C. 9304, 9306.
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§ 22.42
[Amended]
57. Section 22.42 is amended by
removing the phrase ‘‘serial number,’’ in
paragraph (a)(8).
■ 58. Section 22.45 is amended by
revising paragraph (c) to read as follows:
■
§ 22.45
Organizational documents.
jspears on DSK121TN23PROD with PROPOSALS1
*
*
*
*
*
(c) Statement of interest—(1) Sole
proprietorships and general
partnerships. In the case of an
individual owner or a general
partnership, the applicant must provide
the name and address of each person
having an ownership interest in the
business and a statement indicating
whether the interest appears in the
name of the interested person or in the
name of another person.
(2) Limited liability entities. In the
case of a corporation, limited liability
partnership, limited liability company,
or other legal entity in which some or
all of the owners have limited personal
liability for the activities of the entity,
the applicant must provide the
following information about persons
having an interest in the business:
(i) The names and addresses of
persons having a 10 percent or more
ownership interest in each of the classes
or types of ownership interest of the
applicant, and the nature and amount of
ownership interest of each person.
(ii) The name of the person in whose
name the interest appears. If the limited
liability entity is under actual or legal
control of another limited liability
entity, the appropriate TTB officer may
request the same information regarding
ownership for the parent limited
liability entity.
(3) Representative. If any interested
person named under paragraphs (c)(1)
and (2) of this section is a legal entity
other than an individual, the applicant
must also provide the name, title, and
city and state of residence of a
representative individual for the entity.
The representative individual must be
the individual designated by the entity
to represent the entity’s interest in the
applicant business or, in the absence of
a designated individual, an owner, chief
officer or manager, or person with
similar authority within the entity.
■ 59. Section 22.57 is amended by:
■ a. Removing the phrase ‘‘30 days’’ and
adding in its place ‘‘60 days’’ each place
it appears in paragraph (a)(1).
■ b. Revising paragraphs (c) heading
and (c)(3).
The revisions read as follows:
§ 22.57 Changes affecting applications
and permits.
*
*
*
*
*
(c) Changes in officers, directors, and
ownership interests. * * *
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(3) Ownership interests. In lieu of
reporting all changes, within 60 days, to
the list of persons with an ownership
interest furnished under the provisions
of § 22.45(c), a permittee may, upon
filing written notice to the appropriate
TTB officer and establishing a reporting
date, file an annual notice of changes.
The notice of changes in ownership
interest holders does not apply if the
sale or transfer of ownership interest(s)
results in a change in ownership or
control which is required to be reported
under § 22.58.
*
*
*
*
*
■ 60. Section 22.58 is amended by
revising paragraph (b) and the
parenthetical Office of Management and
Budget control number statement to
read as follows:
§ 22.58
Automatic termination of permits.
*
*
*
*
*
(b) Limited liability entities. In the
case of a limited liability entity (i.e., a
corporation, limited liability
partnership, limited liability company,
or other legal entity in which some or
all of the owners have limited personal
liability for the activities of the entity)
holding a permit issued under this part,
if actual or legal control of such limited
liability entity changes, directly or
indirectly, whether by reason of a
change in ownership or control (in the
permittee limited liability entity or any
other limited liability entity), by
operation of law, or in any other
manner, the permittee must file an
application for a new permit within 60
days of the change. If an application for
a new permit is not filed within 60 days
of the change, the outstanding permit
will automatically terminate. If an
application for a new permit is filed
within the 60-day period prescribed
above, the outstanding permit will
remain in effect until TTB takes final
action on the application. When TTB
takes final action on the application, the
outstanding permit will automatically
terminate.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 1513–0060)
61. Section 22.62 is revised to read as
follows:
■
§ 22.62
Change in trade name.
In the event of any change in a trade
name of a permittee, or, in the event a
permittee desires to engage in
operations under an additional trade
name, the permittee must first file a
letterhead notice with the appropriate
TTB officer listing the new names and
the offices where they are registered.
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Sfmt 4702
68591
(Approved by the Office of Management and
Budget under control number 1513–0060)
62. Section 22.164 is amended by
revising paragraph (b) and adding
paragraph (c) to read as follows:
■
§ 22.164
Filing and retention of records.
*
*
*
*
*
(b) Maintain all records at the
permitted premises. A permittee may
keep the required records at a location
other than the permitted premises, if he
or she has first provided a letterhead
notice to the appropriate TTB officer
identifying the location where the
records are to be kept.
(c) Make the files of records and
copies of claims available for inspection
by the appropriate TTB officer during
regular business hours. Any permittee
keeping records at a location other than
the permitted premises must make them
available at the permitted premises
upon request of the appropriate TTB
officer; however, the TTB officer may, at
his or her discretion, allow the
permittee to supply copies (including
electronic copies) of such records
instead of the originals.
PART 26—LIQUORS AND ARTICLES
FROM PUERTO RICO AND THE VIRGIN
ISLANDS
63. The authority citation for part 26
continues to read as follows:
■
Authority: 19 U.S.C. 81c; 26 U.S.C. 5001,
5007, 5008, 5010, 5041, 5051, 5061, 5111–
5114, 5121, 5122–5124, 5131–5132, 5207,
5232, 5271, 5275, 5301, 5314, 5555, 6001,
6109, 6301, 6302, 6804, 7101, 7102, 7651,
7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C.
9301, 9303, 9304, 9306.
64. Section 26.174 is amended by
revising paragraphs (a) and (e) and the
parenthetical Office of Management and
Budget control number statement to
read as follows:
■
§ 26.174
Records.
(a) General. Every person intending to
file a claim for drawback on eligible
articles brought into the United States
from Puerto Rico must keep permanent
records of the data elements required by
this section.
*
*
*
*
*
(e) Retention and availability of
records. (1) Each drawback claimant
must retain for a period of not less than
three years all records required by this
subpart, all commercial invoices or
shipping documents, and all bills of
lading received evidencing receipt and
tax determination of the spirits. In
addition, a copy of each approved
formula returned to the manufacturer of
eligible articles must be retained for not
less than three years from the date the
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claimant files their last claim for
drawback under the formula.
(2) The records required under this
subpart must be maintained at the
business premises for which the claim
is filed, or at any other location
provided that the claimant first provides
a letterhead notice to the appropriate
TTB officer of the location where the
records are to be kept. Records must be
available for inspection by any
appropriate TTB officer during business
hours. If the records are stored at a
location other than the business
premises for which the claim is filed,
they must be made available at such
premises upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow copies (including electronic
copies) of such records to be provided
instead of the originals.
(Approved by the Office of Management and
Budget under control number 1513–0089)
65. Section 26.275 is amended by:
a. Revising paragraph (a); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
■
jspears on DSK121TN23PROD with PROPOSALS1
§ 26.275
Filing.
(a) All records and reports required by
this part will be maintained separately,
by transaction or reporting date, at the
importer’s place of business. An
importer may keep the required records
and reports at an alternative location
other than his or her place of business,
if he or she has first provided a
letterhead notice to the appropriate TTB
officer identifying the location where
the records are to be kept. Any importer
keeping records at a location other than
the importer’s place of business must
make them available at the importer’s
place of business upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow the importer to supply copies
(including electronic copies) of such
records instead of the originals. The
appropriate TTB officer may require an
importer to maintain the required
records and reports at his or her place
of business if the alternative location is
found to cause undue inconvenience to
appropriate TTB or Customs officers
desiring to examine the files or cause
delay in the timely submission of
documents.
*
*
*
*
*
■ 66. Section 26.310 is amended by
revising paragraphs (a) and (e) and the
parenthetical Office of Management and
Budget control number statement to
read as follows:
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§ 26.310
Records.
(a) General. Every person intending to
file claim for drawback on eligible
articles brought into the United States
from the Virgin Islands must keep
permanent records of the data elements
required by this section.
*
*
*
*
*
(e) Retention and availability of
records. (1) Each drawback claimant
must retain for a period of not less than
three years all records required by this
subpart, all commercial invoices or
shipping documents, and all bills of
lading received evidencing receipt and
tax determination of the spirits. In
addition, a copy of each approved
formula returned to the manufacturer of
eligible articles must be retained for not
less than three years from the date the
claimant files their last claim for
drawback under the formula.
(2) The records required under this
subpart must be maintained at the
business premises for which the claim
is filed, or at any other location
provided that the claimant first provides
a letterhead notice to the appropriate
TTB officer of the location where the
records are to be kept. Records must be
available for inspection by any
appropriate TTB officer during business
hours. If the records are stored at a
location other than the business
premises for which the claim is filed,
they must be made available at such
premises upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow copies (including electronic
copies) of such records to be provided
instead of the originals.
(Approved by the Office of Management and
Budget under control number 1513–0089)
PART 27—IMPORTATION OF
DISTILLED SPIRITS, WINES, AND
BEER
67. The authority citation for part 27
continues to read as follows:
■
Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c,
1202; 26 U.S.C. 5001, 5007, 5008, 5010, 5041,
5051, 5054, 5061, 5121, 5122–5124, 5201,
5205, 5207, 5232, 5273, 5301, 5313, 5382,
5555, 6109, 6302, 7805.
68. Section 27.136 is amended by:
a. Revising paragraph (a) and the
parenthetical Office of Management and
Budget control number statement; and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revisions read as follows:
■
■
§ 27.136
Filing.
(a) All records and reports required by
this part will be maintained separately,
by transaction or reporting date, at the
PO 00000
Frm 00022
Fmt 4702
Sfmt 4702
importer’s place of business. An
importer may keep the required records
and reports at an alternative location
other than his or her place of business,
if he or she has first provided a
letterhead notice to the appropriate TTB
officer identifying the location where
the records are to be kept. Any importer
keeping records at a location other than
the importer’s place of business must
make them available at the importer’s
place of business upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow the importer to supply copies
(including electronic copies) of such
records instead of the originals. The
appropriate TTB officer may require an
importer to maintain the required
records and reports at his or her place
of business if the alternative location is
found to cause undue inconvenience to
appropriate TTB or Customs officers
desiring to examine the files or cause
delay in the timely submission of
documents.
*
*
*
*
*
(Approved by the Office of Management and
Budget under control number 1513–0088)
PART 28—EXPORTATION OF
ALCOHOL
69. The authority citation for part 28
continues to read as follows:
■
Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c,
1202; 26 U.S.C. 5001, 5007, 5008, 5041, 5051,
5054, 5061, 5121, 5122, 5201, 5205, 5207,
5232, 5273, 5301, 5313, 5555, 6109, 6302,
7805; 27 U.S.C. 203, 205; 44 U.S.C. 3504(h).
70. Section 28.45 is revised to read as
follows:
■
§ 28.45
Retention of records.
File copies of forms required by this
part to be retained by any proprietor or
claimant, and all records, documents, or
copies of records and documents
supporting such forms, must be
preserved by such proprietor or
claimant for a period of not less than
two years, and during such period must
be available for inspection by any
appropriate TTB officer at the proprietor
or claimant’s place of business. A
proprietor or claimant may keep the
required records at a location other than
his or her place of business if he or she
has first provided a letterhead notice to
the appropriate TTB officer identifying
the location where the records are to be
kept. The proprietor or claimant must
nonetheless make the records available
at the permitted premises upon request
of the appropriate TTB officer; however,
the TTB officer may, at his or her
discretion, allow the proprietor or
claimant to supply copies (including
E:\FR\FM\03DEP1.SGM
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Federal Register / Vol. 86, No. 230 / Friday, December 3, 2021 / Proposed Rules
§ 31.138
electronic copies) of such records
instead of the originals.
(Approved by the Office of Management and
Budget under control number 1513–0075)
PART 31—ALCOHOL BEVERAGE
DEALERS
§ 31.152
beer.
71. The authority citation for part 31
continues to read as follows:
■
Authority: 26 U.S.C. 5001, 5002, 5121,
5122–5124, 5131, 5132, 5206, 5207, 5273,
5301, 5352, 5555, 5603, 5613, 5681, 5687,
6061, 6065, 6071, 6091, 6103, 6109, 6723,
6724, 7805.
72. Section 31.114 is amended by:
a. Removing the word ‘‘true’’ and
adding in its place ‘‘legal’’ in paragraph
(b)(1);
■ b. Revising paragraph (b)(8); and
■ c. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
■
■
§ 31.114
Completion of registration form.
*
*
*
*
*
(b) * * *
(8) Ownership and control
information. This consists of the name,
position, and residence address of every
owner of the business and of every
person having power to control its
management and policies with respect
to the activity subject to registration.
‘‘Owner of the business’’ includes every
partner if the dealer is a partnership
and, in the case of a limited liability
entity, any of its officers, directors, or
persons holding a 10 percent or more
ownership interest in any of the classes
or types of ownership of the applicant.
However, the ownership and control
information required by this paragraph
(b)(8) need not be stated if the same
information has been previously
provided to TTB and that previously
provided information is still current.
*
*
*
*
*
■ 73. Section 31.132 is revised to read
as follows:
jspears on DSK121TN23PROD with PROPOSALS1
§ 31.132
Change in name.
(a) Legal name. In the event of any
change in the name of the individual,
firm, corporation, or other entity
registered as a dealer at a given location,
the dealer must complete an amended
registration and submit it on or before
the next July 1.
(b) Trade name. In the event of any
change in a trade name of a dealer
registered at a given location, or in the
event a dealer desires to engage in
operations under an additional trade
name at a given location, the dealer
must first file a letterhead notice with
the appropriate TTB officer listing the
new names and the offices where they
are registered.
VerDate Sep<11>2014
17:53 Dec 02, 2021
Jkt 256001
[Amended]
74. Section 31.138 is amended by
removing the phrase ‘‘30 days’’ and
adding ‘‘60 days’’ in its place.
■ 75. Section 31.152 is revised to read
as follows:
■
Requirements as to wines and
(a) General. Every wholesale dealer in
liquors who receives wines, or wines
and beer, and every wholesale dealer in
beer must keep a complete record
showing the quantities of wine and beer
received, from whom the wine and beer
were received, and the dates of receipt.
This record, which must be kept for a
period of not less than three years as
prescribed in § 31.191, must consist of
all purchase invoices or bills covering
wines and beer received or, at the
option of the dealer, a book record
containing all of the required
information. Wholesale dealers are not
required to prepare or submit reports to
the appropriate TTB officer of
transactions relating to wines and beer.
(b) Availability of records. The
records required under this subpart
must be kept at the dealer’s place of
business. A dealer may keep the
required records at a location other than
his or her place of business premises, if
he or she has first provided a letterhead
notice to the appropriate TTB officer
identifying the location where the
records are to be kept. The dealer must
make the files of records and copies of
reports available for inspection by the
appropriate TTB officer during regular
business hours. Any dealer keeping
records at a location other than his or
her place of business must make them
available at the his or her place of
business upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow the dealer to supply copies
(including electronic copies) of such
records instead of the originals.
(Approved by the Office of Management and
Budget under control number 1513–0065.)
76. Section 31.172 is revised to read
as follows:
■
§ 31.172
Place of filing.
Records of receipt and disposition
and monthly summary reports required
by §§ 31.155, 31.156, and 31.160 must
be maintained at the dealer’s place of
business. A dealer may keep the
required records at a location other than
his or her place of business premises, if
he or she has first provided a letterhead
notice to the appropriate TTB officer
identifying the location where the
records are to be kept. Any dealer
keeping records at a location other than
PO 00000
Frm 00023
Fmt 4702
Sfmt 9990
68593
his or her place of business must make
them available at his or her place of
business upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow the dealer to supply copies
(including electronic copies) of such
records instead of the originals.
■ 77. Section 31.181 is amended by:
■ a. Revising paragraph (a); and
■ b. Removing the parenthetical
authority citation at the end of the
section.
The revision reads as follows:
§ 31.181
Requirements for retail dealers.
(a) Records of receipt. All retail
dealers must keep at their place of
business complete records showing the
quantities of all distilled spirits, wines,
and beer received, from whom the
distilled spirits, wines, and beer were
received, and the dates of receipt.
Records of receipts must consist of all
purchase invoices or bills covering
distilled spirits, wines, and beer
received, or, at the option of the retail
dealer, a book record containing all of
the required information. A retail dealer
may keep the required records at a
location other than his or her place of
business premises, if he or she has first
provided a letterhead notice to the
appropriate TTB officer identifying the
location where the records are to be
kept. Any retailer dealer keeping
records at a location other than his or
her place of business must make them
available at the his or her place of
business upon request of the
appropriate TTB officer; however, the
TTB officer may, at his or her discretion,
allow the dealer to supply copies
(including electronic copies) of such
records instead of the originals.
*
*
*
*
*
Signed: November 19, 2021.
Mary G. Ryan,
Administrator.
Approved: November 19, 2021.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade and
Tariff Policy.
[FR Doc. 2021–25721 Filed 12–2–21; 8:45 am]
BILLING CODE 4810–31–P
E:\FR\FM\03DEP1.SGM
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Agencies
[Federal Register Volume 86, Number 230 (Friday, December 3, 2021)]
[Proposed Rules]
[Pages 68573-68593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25721]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Parts 1, 17, 19, 20, 22, 26, 27, 28, and 31
[Docket No. TTB-2021-0010; Notice No. 207]
RIN 1513-AC46
Modernization of Permit and Registration Application Requirements
for Distilled Spirits Plants
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: In this notice of proposed rulemaking, the Alcohol and Tobacco
Tax and Trade Bureau (TTB) proposes deregulatory amendments to the
regulations to modernize and streamline the permit application for
distilled spirits plants and for users and dealers of specially
denatured alcohol and tax-free alcohol. The proposed amendments also
relax some reporting requirements associated with changes to the
business of those holding such permits and registrations. Some of these
proposed liberalizing amendments would also apply to all Federal
Alcohol Administration Act basic permit holders (including wineries,
and importers and wholesalers of distilled spirits, wine, and malt
beverages) and to alcohol beverage dealers. The proposed amendments are
a result of TTB's evaluation of its permit and registration application
requirements and consideration of relevant public comments submitted to
the Treasury Department in response to its request for recommendations
concerning regulations that can be eliminated, modified, or streamlined
in order to reduce burdens. TTB believes the amendments proposed in
this document will significantly reduce the time needed to complete an
application for a permit or registration.
DATES: Comments must be received on or before February 1, 2022.
ADDRESSES: You may electronically submit comments to TTB on this
proposal, and view copies of this document, its supporting materials,
and any comments TTB receives on it within Docket No. TTB-2021-0010 as
posted at https://www.regulations.gov. A direct link to that docket is
available on the TTB website at https://www.ttb.gov/distilled-spirits/notices-of-proposed-rulemaking under Notice No. 207. Alternatively, you
may submit comments via postal mail to the Director, Regulations and
Ruling Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street NW. Box 12, Washington, DC 20005. Please see the Public
Participation section of this document for further information on the
comments requested regarding this proposal and on the submission,
confidentiality, and public disclosure of comments.
FOR FURTHER INFORMATION CONTACT: Jesse Longbrake, Regulations and
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street NW, Box 12, Washington, DC 20005; telephone (202) 453-1039,
extension 066.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
A. TTB Evaluation of Permit and Registration Application
Requirements
B. TTB Authority
C. Relationship to Other Notices of Proposed Rulemaking
II. Proposed Changes to the Regulations
A. Operational Information Required for Distilled Spirits Plant
Permit Application
B. Premises Description and Security
C. Statements of Interest
D. 30-Day Filing Requirements for Certain Changes in the
Business
E. Changes in Trade Names
F. Retention of Records Off-Premises
III. Public Participation
A. Comments Invited
B. Submitting Comments
C. Confidentiality and Public Disclosure
IV. Regulatory Analyses and Notices
A. Executive Order 12866
B. Regulatory Flexibility Act
C. Paperwork Reduction Act
I. Background
A. TTB Evaluation of Permit and Registration Application Requirements
In fiscal year 2017, the Alcohol and Tobacco Tax and Trade Bureau
(TTB) began an evaluation of the information collected during the
course of TTB's permit and registration applications. The purpose was
to identify ways to streamline the application and registration
process, reduce burden on the regulated industry, and ensure that the
process collects, where possible, only information that is necessary to
meet the agency's statutory obligations. TTB's general approach was to
identify information being collected that could be eliminated without
hindering TTB's ability to evaluate an applicant's qualifications and
to more narrowly focus the application questions to capture only the
information that is needed. In addition, TTB also considered whether
there were any requests made in the application process that were so
commonly approved that the regulations themselves could be amended to
accommodate them without the need to submit the request.
Similarly, on June 14, 2017, the Treasury Department (Treasury)
published in the Federal Register (82 FR 27217) a Request for
Information inviting members of the public to submit views and
recommendations for Treasury regulations that can be eliminated,
modified, or streamlined in order to reduce burdens. TTB reviewed
comments received in response to this request and identified proposals
that related to the permit application process or, more generally, to
beginning business in a TTB-regulated industry.
Through TTB's internal evaluation and consideration of the public
input, TTB has identified deregulatory actions that TTB can take by
amending regulations and also, where rulemaking is not required, by
amending guidance and forms. While this document addresses distilled
spirits plants, users and dealers of specially denatured alcohol and
tax-free alcohol, and Federal Alcohol Administration Act basic permit
holders, TTB intends to engage in further rulemaking to address other
regulated industries within the context of their respective statutory
eligibility requirements. Specifically, TTB will address in separate
rulemakings the Internal Revenue Code (IRC) registration and notice
requirements for wine and beer producers, respectively, as well as IRC
requirements for TTB-regulated tobacco businesses.
With respect to distilled spirits plants (DSPs), this document
proposes to amend the regulations to eliminate or narrow the range of
information that must be submitted with applications for permits or
registrations to more directly respond to TTB's statutory obligations
[[Page 68574]]
and permit or registration eligibility criteria. Proposed amendments
include:
Eliminating various requirements to submit operational
information. Specifically, TTB proposes eliminating eight (8)
regulatory provisions requiring submission of information including,
but not limited to, descriptions of production procedures and storage
systems.
Tailoring requirements to describe the DSP premises more
narrowly to specifically correspond with statutory requirements, and
consolidating requirements to provide descriptions of alternation
operations with the general DSP premises description.
Replacing requirements to submit narrative descriptions of
DSP security with certifications that the applicant's security measures
will comply with enumerated regulatory requirements.
Eliminating requirements to provide serial numbers of DSP
equipment in the application, thereby allowing equipment to be reported
in the aggregate where applicable and allowing a DSP application to be
submitted prior to physical receipt of the equipment.
TTB is also proposing to amend the regulations to increase industry
flexibility without imposing regulatory burden. These amendments
benefit DSPs, users and dealers of specially denatured alcohol and tax-
free alcohol, and, where appropriate under statute, Federal Alcohol
Administration Act basic permit holders. Proposed amendments include:
Extending deadlines for reporting certain changes in the
business from 30 days to 60 days.
Allowing regulated businesses to add or remove trade names
by submitting a notification to TTB rather than applying for TTB
approval.
Allowing regulated businesses to maintain required records
at a location other than the permitted premises without first obtaining
TTB approval.
Section II of this document includes more in-depth discussion of
the proposed amendments.
As noted above, TTB's deregulatory strategy also includes
streamlining longstanding policies and practices implementing existing
regulations. TTB has already begun deploying such streamlining efforts
in response to both TTB's internal evaluation of application processes
and to comments received from the public.
For instance, TTB has implemented significant reductions in the
information collected on form TTB F 5000.9, Personnel Questionnaire--
Alcohol and Tobacco (the Personnel Questionnaire) and its electronic
equivalent in response to comments submitted to Treasury through the
Request for Information. TTB collects the Personnel Questionnaire as
part of the application process for most types of permits or
registrations. The Personnel Questionnaire collects information about
individuals involved in an applicant's business (such as a business's
officers, directors, or principal investors), including information
about such individuals' identity, employment and residence history,
investment in the business, prior involvement in TTB-regulated
businesses, and criminal record, if any. The collection of this
information has been approved by the Office of Management and Budget
under Information Collection number 1513-0002.
TTB uses this information to determine whether the applicant,
including the individuals involved in the applicant business, meet the
statutory eligibility criteria for obtaining a permit or registration.
These criteria are set forth in detail in section 1(B) of this
document. Upon careful review, TTB recognized that it could reduce the
information collected through the Personnel Questionnaire. TTB has
revised form TTB F 5000.9 and its electronic equivalent in Permits
Online to substantially reduce the number of required fields and to
eliminate some of the most time-consuming fields (such as general
employment history and residence history). TTB also has stopped
collecting supporting documentation for certain types of investment in
an applicant business (e.g., bank statements, loan documentation,
promissory notes, etc.).
B. TTB Authority
The Federal Alcohol Administration Act (FAA Act, 27 U.S.C. 201, et
seq.) and chapter 51 of the IRC, 26 U.S.C. chapter 51, require persons
intending to engage in certain distilled spirits-related businesses to
obtain a permit, or approval of a registration, from the Secretary of
the Treasury (Secretary) before beginning operations. Many distillers
engage in operations that require both a permit under the FAA Act and a
registration under the IRC. The amendments proposed in this document
generally relate to the application requirements for such permits and
registrations, including requirements to report certain changes in the
regulated businesses. Additionally, amendments proposed in this
document address application requirements for permits under the FAA Act
for operations as importers or wholesalers of distilled spirits, wine,
and/or malt beverages.
The FAA Act requires that persons seeking to engage in business as
producers of distilled spirits, or as importers or wholesalers of
distilled spirits, wine, and malt beverages, obtain a permit before
beginning operations. See 27 U.S.C. 203. The term ``distilled
spirits,'' when used in the context of the FAA Act, applies only to
distilled spirits for nonindustrial use. The TTB regulations at 27 CFR
1.60 set out uses of spirits that are regarded as ``industrial.'' The
FAA Act at 27 U.S.C. 204(c) provides that the Secretary will prescribe
the manner and form of all applications for basic permits. Note that
the FAA Act also requires permits for producing, rectifying, or
blending wine and that these activities also require qualification
under the IRC; TTB plans to modernize wine-specific permit requirements
in a separate rulemaking document.
Chapter 51 of the IRC contains excise tax and related provisions
concerning distilled spirits, wines, and beer. This includes
requirements that persons intending to engage in certain activities
related to producing, using, or dealing in distilled spirits obtain a
registration and/or permit from the Secretary before beginning
operations. As noted above, TTB will address in a separate rulemaking
the application requirements under the IRC for bonded wine cellars,
bonded wineries, taxpaid wine bottling houses, and brewer's notices.
The IRC requires each person seeking to establish a distilled
spirits plant, before commencing operations, to apply for and receive
notice of registration of the plant. See 26 U.S.C. 5171(c). Those
persons whose distilled spirits plant operations are not required to
obtain a basic permit under the FAA Act are required to obtain an IRC
operating permit. See 26 U.S.C. 5171(d). The applications for
registrations and permits are to be in such manner and form as the
Secretary prescribes by regulation. See 26 U.S.C. 5172 (registrations);
5171(d)(1) and 5271(b)(1) (operating permits).
The IRC provides for the issuance of permits to establish plants
for the purpose of producing, processing, storing, using, and/or
distributing distilled spirits that are exclusively for fuel use
(``alcohol fuel plants''). While alcohol fuel plants, as a type of
distilled spirits plant, are generally subject to the registration and
permitting requirements of sections 5171(c) and (d), and any associated
qualification requirements, the IRC at 26 U.S.C. 5181 provides
authority to prescribe by regulation a
[[Page 68575]]
streamlined application process for such plants, see 26 U.S.C. 5181,
which TTB has done.
The IRC also governs permits relating to the procurement and use of
denatured distilled spirits, and the use of non-beverage spirits for
certain tax-free purposes. See 26 U.S.C. 5271. Section 5271 provides
that no person may procure or use distilled spirits free of tax under
the provisions of 26 U.S.C. 5214(a)(2) or (3); or procure, deal in, or
use specifically denatured distilled spirits; or recover specifically
or completely denatured distilled spirits, until he or she has applied
for and received a permit to do so from the Secretary. The application
for such permit is to be as prescribed by regulation. See 26 U.S.C.
5271(b)(1).
The IRC requires persons seeking to engage in the business of
manufacturing vinegar by the vaporizing process to first apply for and
receive approval of a registration from the Secretary, the application
for which is to be as prescribed by regulation. See 26 U.S.C. 5502.
Finally, the IRC requires all wholesale dealers and retail dealers
of distilled spirits, wine, and beer to register with the Secretary.
See 26 U.S.C. 5124.
The FAA Act and IRC set forth eligibility criteria (including
criteria rendering an applicant ineligible) for many of the above
permits and registrations. The FAA Act provides that an applicant is
not entitled to a basic permit--including those applying as producers
of distilled spirits and those applying as importers or wholesalers of
distilled spirits, wine, and beer--if the applicant has been convicted
of a felony within the previous 5 years or a misdemeanor under any
Federal law relating to liquor within the previous 3 years. See 27
U.S.C. 204(a)(2). Under this statutory provision, the ``applicant''
includes, in the case of a corporation, any of its officers, directors,
or principal stockholders. Section 204(a)(2) also provides that an
applicant is not entitled to a basic permit if the applicant is, by
reason of his or her business experience, financial standing, or trade
connections, not likely to maintain operations in conformity with
Federal law.
The IRC similarly provides that an application for a distilled
spirits operating permit may be denied if--among other reasons--the
applicant (including the principal stockholders of a corporation) is,
by reason of his or her financial standing or trade connections, not
likely to maintain operations in compliance with chapter 51 of the IRC.
See 26 U.S.C. 5271(c), 5171(d). Specifically, these eligibility
criteria apply to permits required for distilled spirits plants that
are not otherwise required to obtain an FAA Act basic permit, such as
distilled spirits plants that distill for industrial use. These
eligibility criteria also apply to permits for alcohol fuel plants
under 26 U.S.C. 5181. See 27 CFR 19.678. A permit to use tax-free
alcohol, to use or deal in specially denatured distilled spirits, or to
recover specially or completely denatured distilled spirits may also be
denied for the same reasons. See 26 U.S.C. 5271(c).
TTB administers chapter 51 (distilled spirits, wine, and beer) of
the IRC, as well as the FAA Act, pursuant to Treasury Order 120-01,
dated December 10, 2013, through which the Secretary has delegated to
TTB certain IRC and FAA Act administrative and enforcement authorities,
including those related to the issuance of the permits and
registrations covered under this rulemaking.
Section 2(d) of the FAA Act, Public Law 74-401 (1935) authorizes
the Secretary ``to prescribe such rules and regulations as may be
necessary to carry out [its] powers and duties'' under the FAA Act.
Section 7805(a) of the IRC (26 U.S.C. 7805(a)) provides the general
authority to the Secretary to issue regulations to carry out the
provisions of the IRC.
Pursuant to its delegated authorities described above, TTB has
promulgated regulations setting forth the application requirements for
permits or registrations related to distilled spirits operations in
title 27 of the Code of Federal Regulations (CFR), at the following
parts:
27 CFR part 1, FAA Act basic permits (i.e., distillers,
rectifiers, and blenders of distilled spirits; distilled spirits
warehousemen; and alcohol importers and wholesalers);
27 CFR part 19, IRC registrations and operating permits
for distilled spirits plants, vinegar plant permits, and alcohol fuel
plant permits (categorized as small, medium, and large alcohol fuel
plants);
27 CFR part 20, IRC permits for denatured spirits dealers
and users;
27 CFR part 22, IRC permits for tax-free alcohol users;
and
27 CFR part 31, IRC registrations for alcohol beverage
dealers.
The following TTB forms and their electronic equivalents collect
much of the information required to be submitted when applying for the
above permits and/or registrations:
TTB F 5100.24, Application for Basic Permit Under the
Federal Alcohol Administration Act, approved by the Office of
Management and Budget (OMB) under Information Collection number 1513-
0018;
TTB F 5100.18, Application for Amended Basic Permit Under
the Federal Alcohol Administration Act, approved by OMB under
Information collection number 1513-0019;
TTB F 5110.25, Application for Operating Permit Under 26
U.S.C. 5171(d), approved by OMB under Information Collection number
1513-0040;
TTB F 5110.41, Registration of Distilled Spirits Plant,
approved by OMB under Information Collection number 1513-0048;
TTB F 5110.74, Application for an Alcohol Fuel Producer
Under 26 U.S.C. 5181, approved by OMB under Information Collection
number 1513-0051;
TTB F 5150.22, Application for an Industrial Alcohol User
Permit, approved by OMB under Information Collection number 1513-0028;
and
TTB F 5000.9, Personnel Questionnaire--Alcohol and Tobacco
Products, approved by OMB under Information Collection number 1513-
0002.
Pursuant to TTB's IRC and FAA Act authorities described above, TTB
has also promulgated regulations imposing procedural and substantive
requirements on these regulated businesses. These include requirements
to report certain changes in the business affecting the permit or
registration (e.g., changes in address or location, changes in
stockholders or officers, directors, managers, etc.). These also
include recordkeeping requirements that are generally set forth
pursuant to other authority in the IRC. See, e.g., 26 U.S.C. 5207
(records of distilled spirits plant proprietors), 26 U.S.C. 5275
(records of dealers and users of denatured spirits and/or industrial
alcohol), and 26 U.S.C. 5121-5122 (records of wholesale and retail
dealers of distilled spirits).
This notice of proposed rulemaking includes proposed amendments to
these reporting and recordkeeping requirements. The regulations
implementing such requirements are set forth in title 27 of the CFR, at
the following parts:
27 CFR part 1, reporting of business changes for FAA Act
basic permits;
27 CFR part 17, recordkeeping requirements for
manufacturers of nonbeverage products claiming drawback on taxpaid
distilled spirits used in the manufacturing process;
27 CFR part 19, recordkeeping and inventory requirements,
and reporting of business changes, for distilled spirits plants,
vinegar plants, and alcohol fuel plants;
[[Page 68576]]
27 CFR part 20, recordkeeping requirements, and reporting
of business changes, for denatured spirits dealers and users;
27 CFR part 22, recordkeeping requirements, and reporting
of business changes, for tax-free alcohol users;
27 CFR part 26, recordkeeping requirements concerning
liquors and articles brought in from Puerto Rico and the Virgin
Islands;
27 CFR part 27, recordkeeping requirements for importers
of distilled spirits, wine, and beer;
27 CFR part 28, recordkeeping requirements concerning
exportation of distilled spirits, wine, and beer; and
27 CFR part 31, recordkeeping requirements and reporting
of business changes for alcohol beverage dealers (including
wholesalers).
The electronic equivalent of each application form set forth above
is available through the TTB Permits Online system. The Permits Online
system eliminates redundancy by allowing the filer to input information
only once, instead of repeating information on multiple paper
application forms. Similarly, with respect to the reporting
requirements described above, in instances where TTB's regulations
refer to submitting a ``letterhead notice'' (as defined in 27 CFR
19.1), industry members may provide such notices electronically in
Permits Online. Unlike applications, these types of notices do not
require TTB approval.
C. Relationship to Other Notices of Proposed Rulemaking
TTB plans to publish notices of proposed rulemaking to propose
generally similar amendments to regulations governing wine, beer,
tobacco products, and processed tobacco-related applications and
operations, set forth in 27 CFR parts 24, 25, 40, 41, and 44.
Liberalizing amendments related to FAA Act basic permits as importers
and wholesalers (including as importers or wholesalers of wine and/or
malt beverages) and as wine producers are included in this document and
will not be included in the notices of proposed rulemaking relating to
wine or beer.
II. Proposed Changes to the Regulations
The amendments proposed in this document are intended to modernize
and streamline the applications and application processes for distilled
spirits-related permits and registrations under the IRC and FAA Act,
and for FAA Act basic permits required for importers and wholesalers of
alcohol beverages. As noted above, TTB's general approach was to
identify information currently being collected that TTB no longer needs
in order to evaluate an applicant's qualifications and to provide more
clarity and specificity in the application questions and instructions.
The proposed amendments also relax reporting requirements on certain
changes to the business.
A. Operational Information Required for Distilled Spirits Plant
Application
TTB is proposing to eliminate requirements to provide certain
operational information when applying for a DSP registration. The TTB
regulations at 27 CFR 19.73 prescribe, in general, information that
must be included in an application for registration under the IRC as a
DSP. Paragraphs (a)(13) through (15) of Sec. 19.73 prescribe the
operational information that must be submitted if the DSP applicant
intends to operate as a distiller, warehouseman, or processor,
respectively. (A ``warehouseman'' is a proprietor of a DSP who stores
bulk distilled spirits.) TTB has determined that much of the
information currently required by Sec. 19.73(a)(13) through (15) is no
longer needed for TTB to evaluate whether an applicant qualifies for a
registration. As a result, TTB proposes to eliminate the following
regulatory sections:
a. 27 CFR 19.73(a)(13)(ii), 19.77(a), and 19.121, requiring that an
applicant intending to operate as a distiller submit a statement of
production procedures, setting forth the contents of the statement, and
requiring that a DSP proprietor report changes to its production
procedures.
b. 27 CFR 19.73(a)(13)(iii) and 19.77(b), requiring that an
applicant intending to operate as a distiller submit a statement as to
whether spirits will be redistilled and referencing formula
requirements associated with such redistillation.\1\
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\1\ Generally, applicable formula requirements prescribed under
27 CFR part 5 require DSPs to obtain formulas in connection with
certain redistillation operations.
---------------------------------------------------------------------------
c. 27 CFR 19.73(a)(14)(i), requiring that an applicant intending to
operate as a warehouseman submit a narrative description of its storage
system.
d. 27 CFR 19.73(a)(14)(ii), requiring that an applicant intending
to operate as a warehouseman submit a statement of the total amount of
bulk wine gallons that can be stored.
e. 27 CFR 19.73(a)(15)(ii), requiring that an applicant intending
to operate as a processor submit a narrative description of the storage
system for spirits bottled and cased or otherwise packaged and placed
in approved containers for removal from the bonded premises.
TTB is also proposing to amend 27 CFR 19.75 to eliminate the
requirement to provide in the application for registration the serial
number of each tank, still, and condenser to be used by the DSP. While
such equipment must continue to be physically marked with a serial
number on the DSP premises pursuant to 27 CFR 19.189, removing the
requirement to provide serial numbers in the application will provide
applicants greater flexibility to report their equipment in the
aggregate. For instance, ten (10) of the same type of tank will not
need to be listed separately to account for the different serial
numbers. Additionally, allowing equipment to be reported on the
application without serial numbers allows applicants to submit an
application before equipment that has been ordered is physically
received. TTB proposes similar amendments at 27 CFR 20.42 and 22.42 to
remove requirements to provide serial numbers of equipment to be used
by applicants for permits as users of denatured alcohol and of tax-free
alcohol.
B. Premises Description and Security
TTB is proposing to relax or eliminate requirements to submit
certain information describing the DSP premises and its security with
an application for registration. As stated above, the TTB regulations
at 27 CFR 19.73 prescribe, in general, information that must be
included in an application for registration as a DSP. Among the
information required to be submitted with such application are
descriptions of the DSP premises and the security measures to be
employed at the DSP. Much of this information is currently collected in
an open-ended narrative format. TTB believes that, in general, more
direct questions and certifications would enable applicants to better
understand what information must be submitted, reduce the need for
additional submissions and follow-up communication between TTB and
applicants, and speed up the application review process. Further, TTB
has determined that some of the information currently required in these
areas is unnecessary or overly specific for the purpose of evaluating a
registration application. As a result, TTB also proposes to relax or
eliminate certain requirements to submit such information.
Therefore, TTB proposes to amend the following regulatory sections:
[[Page 68577]]
a. 27 CFR 19.74. Section 19.73(a)(8) requires that an application
for registration as a DSP include a description of the plant in
accordance with Sec. 19.74. Section 19.74 sets forth the specific
information to be included in the description, which includes: (1) A
description of each tract of land covered by the plant; (2)
identification of the bonded and any general premises; (3) descriptions
of each building and outside tank that will be used for production,
storage, and processing of spirits and for denaturing spirits,
articles, or wines; and (4) identification of the room(s) or floor(s)
of a building that will be used for plant operations, if the plant
consists of less than the entire building in which it is situated. TTB
proposes to amend Sec. 19.74 to remove the requirement to provide a
description of the tract of land and to further clarify the specific
information to be submitted as follows: (1) Overall dimensions of the
building(s) housing the DSP; (2) the dimensions of the bonded premises
and any general premises; (3) any internal walls establishing the
boundaries of the bonded premises and general premises; (4) the
external doors of the DSP premises; (5) any portions of the plant
premises that are outdoors, including the location of any outdoor
tanks; and (6) any adjacent retail premises that are to be operated by
the applicant. TTB believes that these descriptive elements are the
minimum necessary to allow TTB to evaluate whether the premises is
adequate to protect the revenue and otherwise complies with the
statutory restrictions on DSP locations set forth at 26 U.S.C. 5178.
The proposed amendments provide flexibility to submit this information
in narrative form or diagram form, whichever is better suited to the
applicant's circumstances. The proposed amendments also provide that
photographs of any of the required elements must be submitted upon
request of the appropriate TTB officer.
b. 27 CFR 19.119 and 19.122. Under current Sec. 19.119, a DSP
proprietor is required to amend his or her registration prior to
extending or curtailing any part of the plant premises, except for
certain operations described in Sec. Sec. 19.142 (alternation for
customs purposes) and 19.143 (alternation for other purposes). Section
19.122 currently requires that a DSP proprietor file a letterhead
notice prior to making any material changes to the construction or use
of the buildings or equipment at the DSP, other than changes covered by
Sec. Sec. 19.119, 19.142, and 19.143. TTB proposes to consolidate
these requirements into a single Sec. 19.119, and to further amend
that section consistent with the proposed amendments to Sec. 19.74.
Specifically, in the revised Sec. 19.119, the current text of Sec.
19.119 regarding extension or curtailment of the premises would be
maintained, but TTB proposes to incorporate as a new paragraph the
provisions of the current Sec. 19.122 relating to changes in
construction or use of buildings. TTB further proposes to amend this
new paragraph to no longer require the proprietor to describe in detail
``any material change in the construction or use of buildings or
equipment'' but instead require the reporting of changes to the
premises (other than those covered by current Sec. 19.119, Sec.
19.142, or Sec. 19.143) that would render inaccurate the description
submitted with the registration or submitted separately or previously
by the proprietor with another amendment. TTB is also proposing to
remove the requirement that the change described in the letterhead
notice also be subsequently incorporated into the next submission of an
application for amended registration on TTB F 5110.41 where such
amendment would not otherwise require submission of a premises
description. However, to the extent that subsequent applications for an
amended registration make any further reportable changes to the
premises, an up-to-date description must be submitted.
c. 27 CFR 19.673(b)(2), 19.675(b)(2), and 19.676(b)(2). TTB
proposes amendments similar to those described above in point (a) to
the requirements associated with applications for alcohol fuel plant
permits, at Sec. Sec. 19.673(b)(2), 19.675(b)(2), and 19.676(b)(2).
Note that the illustration of adjacent retail premises is not
applicable to alcohol fuel plants.
d. 27 CFR 19.643(b). TTB proposes amendments similar to those
discussed in point (a) above to the requirement that applicants for a
vinegar plant registration provide a ``description of the plant
premises,'' at Sec. 19.643(b). Note that the illustration of adjacent
retail premises is not applicable to vinegar plants.
e. 27 CFR 19.141(a), 19.142(b), and 19.143(b). Sections 19.141
through 19.143 each provide procedures for alternation of the DSP
premises. Specifically, Sec. 19.141 prescribes procedures related to
alternation of proprietors, Sec. 19.142 prescribes procedures related
to alternation for customs purposes, and Sec. 19.143 prescribes
procedures related to alternation for other purposes (such as use of
the premises as a bonded wine cellar or brewery). One of the prescribed
procedures to engage in each type of alternation is that the proprietor
must submit with his or her application for registration as a DSP a
diagram of the part of the plant that will be alternated, as well as a
description of the areas, rooms or buildings, or combination of rooms
or buildings that will be alternated. In the case of Sec. Sec.
19.141(a) and 19.142(b), the applicant must also provide a description
of the method that the applicant will use to separate the alternated
premises from any premises not subject to alternation. TTB believes
that the information collected under these sections can be consolidated
into the premises description(s) required under Sec. 19.73(a)(8).
Accordingly, TTB proposes to amend these sections to require that such
information be included in the description(s) submitted under Sec.
19.73(a)(8). TTB also proposes conforming amendments to Sec. Sec.
19.141(b) and 19.142(c).
f. 27 CFR 19.692(b)(2). TTB proposes amendments similar to those
described in the previous paragraph to the qualification requirements
for an alternating proprietorship as an alcohol fuel plant, at Sec.
19.692(b)(2).
g. 27 CFR 19.73(a)(12), 19.76, and 19.192. Section 19.73(a)(12)
requires that an application for registration as a DSP include a
statement of plant security measures in accordance with Sec. 19.76.
Under Sec. 19.76, the plant security statement must include a
``general description of plant security,'' a ``statement regarding the
use of guard personnel,'' and other similar statements regarding the
use of alarm systems and locks. Plant security as a continuing
requirement for a permit is also addressed at Sec. 19.192, which
generally requires that a DSP proprietor provide adequate security to
protect the revenue, and specifies requirements relating to building
construction and the locking mechanisms to be used on storage tanks and
points of entry to the DSP premises. Section 19.192(f) also sets forth
specifications for locks to be used in DSPs. TTB believes that the
narrative statements concerning plant security required under
Sec. Sec. 19.73(a)(12) and 19.76 are overly broad and should be more
consistent with the ongoing requirements of the permit set forth in
Sec. 19.192. Accordingly, TTB proposes to eliminate Sec. 19.76 and to
amend Sec. 19.73(a)(12) to instead require that an application for
registration as a DSP include a certification that the plant's security
will be compliant with the requirements of Sec. 19.192. TTB also
believes that the specifications for locks set forth in Sec. 19.192(f)
are unnecessarily specific, and proposes to replace those
specifications with a requirement that the locks used to secure the
plant be of
[[Page 68578]]
a class and construction that is usual and customary in the industry to
secure commercial property.
h. 27 CFR 19.673(b)(6), 19.675(b)(6), and 19.676(b)(6). TTB
proposes to amend the application requirements for alcohol fuel plant
permits consistent with those described in the previous paragraph. The
proposed amendments require, instead of narrative descriptions of the
plant's security measures, a certification that plant security will be
in accordance with the requirements of 27 CFR 19.703 and 19.704.
C. Statements of Interest
TTB proposes amendments to standardize and clarify the scope of the
collection of information related to persons holding certain levels of
ownership interest in an applicant business. These ``statements of
interest'' are collected in accordance with statutory provisions
setting forth eligibility criteria for obtaining such permits and/or
registrations. Information about persons with ownership interests in
applicant businesses also assists TTB in the protection and collection
of the revenue.
The FAA Act at 27 U.S.C. 204(a)(2) provides that an applicant will
not be entitled to a basic permit if--among other reasons--the
applicant (including the principal stockholders of a corporate
applicant) is, by reason of his or her business experience, financial
standing, or trade connections, not likely to maintain operations in
conformance with Federal law. Currently, TTB practice has been to
interpret a ``principal stockholder'' to be any person holding ten (10)
percent or more of any class of stock in a corporation or of any class
of ownership in any other limited liability entity.\2\
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\2\ See TTB G 2018-6, ``Permits Online Tutorial'' at Owner/
Officer Information, available at https://www.ttb.gov/ponl/ponl-tutorial-part-2-page-11.
---------------------------------------------------------------------------
The IRC at 26 U.S.C. 5271(c)(2) similarly provides that an
application for a permit to use tax-free alcohol, or to use or deal in
specially denatured distilled spirits, may be denied if--among other
reasons--the applicant (including any ``principal stockholders'') is,
by reason of his or her business experience, financial standing, or
trade connections, not likely to maintain operations in compliance with
chapter 51 of the IRC. Pursuant to 26 U.S.C. 5171(d), the eligibility
criteria of section 5271(c) also apply to operating permit applications
for DSPs that are not required to obtain an FAA Act basic permit, such
as DSPs that produce distilled spirits for industrial use and alcohol
fuel plants.
Further, the IRC at 26 U.S.C. 5172 requires that an application for
a DSP registration identify the applicant and persons interested in the
business. This provision applies to DSPs whether or not they are
required to obtain an FAA Act basic permit. Note that, while alcohol
fuel plants have separate application processes pursuant to 26 U.S.C.
5181, those application processes fulfill the qualification
requirements of 26 U.S.C. 5171. Accordingly, TTB has implemented
through regulation the requirement that alcohol fuel plant applicants
report the principal persons involved in the business and/or the
persons having an ownership interest in the business at 27 CFR 19.675
(for medium plant permit applications) and at 19.676 and 19.677 (for
large plant permit applications).\3\
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\3\ In addition to the proposed amendments concerning statements
of interest, TTB proposes to eliminate requirements at Sec. Sec.
19.675(b)(8) and 19.676(b)(8) to provide the Social Security Number
and date and place of birth of each principal person involved in the
alcohol fuel plant business. Names and addresses of such persons, as
well as their titles with the applicant business, must still be
reported.
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TTB has promulgated regulations under the above IRC authorities
requiring statements of interest at: (1) 27 CFR 19.73, 19.92, and
19.93, for DSP registrations and operating permits; (2) 27 CFR 19.677,
for large alcohol fuel plant permits; (3) 27 CFR 20.42 and 20.45, for
specially denatured spirits dealer and user permits; and (4) 27 CFR
22.42 and 22.45, for tax-free alcohol user permits. Additionally, the
application for an FAA Act basic permit requires a listing of the
owners and principal stockholders of an applicant business, as well as
details concerning their investment in the business. See 27 CFR 1.25,
TTB F 5100.24 (approved by the Office of Management and Budget under
Information Collection number 1513-0018).
TTB proposes amendments to Sec. Sec. 19.93, 19.677, 20.45, and
22.45 to standardize the collection of the basic identifying
information of persons with an interest in the applicant's business.
The amendments provide that (1) the requirement to disclose basic
identifying information (i.e., names and addresses) of persons with an
ownership interest applies to persons with an ownership interest of 10
percent or greater; and (2) where a ``person'' holding such an interest
is a legal entity other than an individual, the applicant must provide
the name, title, and place of residence (city and state) of a
representative individual for that entity. The representative
individual generally will be the individual designated by the entity to
represent the entity's interest in the applicant business or, in the
absence of a designated individual, an owner, chief officer or manager,
or person with similar authority within the entity. TTB believes that
this is the minimum amount of information required to allow TTB to
identify the individuals with an interest in the applicant business and
to evaluate the applicant as to its trade connections and financial
standing, including in circumstances where business entities have
substantial ownership interests in the applicant.
TTB proposes minor conforming amendments to 27 CFR 1.27, 1.42,
1.44, 19.114, 19.127, 19.130, 19.684, and 19.687 to incorporate the
description of ownership interests set forth above into requirements
for reporting changes in ownership interests. TTB also proposes
conforming amendments to 27 CFR 1.24, 19.96, 19.678, and 31.114 to
incorporate this description of ownership interests into regulations
describing criteria for qualification or denial of permits.
D. 30-Day Filing Requirements for Certain Changes in the Business
TTB proposes to extend the deadline for reporting certain changes
in a permitted business to 60 days. The TTB regulations generally
require that when there is a change in the information filed with TTB
as part of an application for a permit or registration under the FAA
Act or IRC, the proprietor of the business must notify TTB of the
change. The timing and form of this notification differs depending on
the type of permit or registration, and the type of business change
that has occurred or will occur.
Some business changes must be reported to TTB within a certain
amount of time following the change, generally within 30 days. For
example, the TTB regulations at 27 CFR 19.687 require that the
proprietor of a medium or large alcohol fuel plant submit a letterhead
notice to TTB within 30 days of any change to the list of officers,
directors, members, managers, or other principal persons provided with
the application for the permit.
In the case of a change in control of the business, a permit or
registration may automatically terminate and/or become invalid
following the change in control unless a new application is filed
within 30 days of the change in control. The TTB regulations generally
provide for the outstanding permit to remain in effect pending a final
decision on the new application, as long as that application is timely
filed.
Comments received in response to Treasury's request for
information, described above in section I(A), suggest
[[Page 68579]]
that 30 days is too short a time for regulated entities to assemble the
information that is required to be filed in connection with various
changes in the business. These comments suggested that such filing
deadlines should be extended to 60 days.
TTB reviewed these proposals and concluded that extending existing
deadlines for reporting certain changes in the business (including in
some cases by applying for a new or amended permit or registration)
from 30 to 60 days would not, in general, pose risk to the revenue or
raise other concerns with regard to permits and/or registrations issued
under the authority of the IRC. Accordingly, TTB proposes to extend
such deadlines as described immediately below. Requirements and
timeframes related to FAA Act permits are discussed separately at the
end of this section. FAA Act permits have a different statutory basis,
which sets forth certain reporting timeframes that TTB is unable to
modify by regulation. In some circumstances, industry members holding
both an FAA Act permit and an IRC registration (such as DSPs producing
nonindustrial spirits) will be limited by the shorter statutory
reporting period of the FAA Act.
In 27 CFR part 19, TTB proposes to amend the following sections to
extend reporting deadlines for changes in the permitted business to 60
days: Sec. Sec. 19.112, 19.114, and 19.123 relating to DSP
registrations; Sec. Sec. 19.126, 19.127, and 19.130 relating to DSP
operating permits; Sec. 19.644 relating to vinegar plants; and
Sec. Sec. 19.683, 19.684, 19.686, 19.687, and 19.691 relating to
alcohol fuel plants.
Concerning DSP registrations, 27 CFR 19.112 provides the general
rules for amending a registration, and requires that, ``if there is a
change in any of the information in the proprietor's current, approved
notice of registration, the proprietor must amend the registration''
within 30 days of the change unless another time period is specified by
another, more specific regulation. Section 19.114 requires that a DSP
proprietor ``notify TTB of any changes in the list of stockholders or
persons with interest that was filed with TTB'' as part of the
registration application and provides that, ``if the change results in
a change of control, the proprietor must file form TTB F 5110.41,
Registration of Distilled Spirits Plant, within 30 days of the
change.'' TTB proposes to extend each of these deadlines from 30 days
to 60 days. Section 19.123 requires that a DSP proprietor notify TTB if
any change is made to the statement of plant security filed under 27
CFR 19.76. TTB proposes in this document (as discussed above) to remove
Sec. 19.76 entirely, and accordingly proposes to remove Sec. 19.123.
TTB also proposes conforming amendments in 27 CFR 19.80 to clarify
that, when an IRC operating permit or an FAA Act permit remains in
effect pending final TTB action on a new application for such a permit
necessitated by a business change, the approved notice of registration
associated with that permit also remains valid during that time.
Concerning DSP operating permits, which apply to industrial alcohol
operations, Sec. 19.126 provides the general rules for amending a
permit and requires that, ``if there is a change in any of the
information that the proprietor provided as part of the current
approved application for an operating permit, the proprietor must amend
the operating permit'' within 30 days of the change unless another time
period is specified by another, more specific regulation. Section
19.127 provides for the automatic termination of a DSP operating permit
under certain circumstances. In the case of a corporation, Sec. 19.127
provides that the operating permit will terminate 30 days following a
change in actual or legal control of the corporation, but if an
application for a new permit is submitted within that 30 days, the
outstanding permit may remain in effect until TTB takes final action on
the new application. Section 19.130 requires that the proprietor notify
TTB of any changes in the list of stockholders or persons with interest
that was filed in connection with the operating permit application. If
such a change results in a change in actual or legal control of the
business, the proprietor must file an application for a new permit
within 30 days. TTB proposes to extend each of these deadlines from 30
to 60 days. With respect to the automatic termination provisions of
Sec. 19.127, the proposed amendments also necessarily extend the
timeframe for termination to 60 days.
Concerning vinegar plants, Sec. 19.644 provides that the
proprietor of a vinegar plant must ``immediately'' notify TTB in
writing of ``any change in the information that was provided in an
approved application.'' TTB proposes to amend this section to require
the notification be made within 60 days of the change.
Concerning alcohol fuel plants, Sec. 19.683 provides the general
rules for amending a permit and requires that, ``if there is a change
relating to any of the information contained in, or considered a part
of, the application'' for an alcohol fuel plant permit, ``the
proprietor must amend the information previously submitted within 30
days of the change'' unless another time period is specified by
another, more specific regulation. Section 19.684 provides for the
automatic termination of an alcohol fuel plant permit under certain
circumstances. In the case of a corporation, the permit will terminate
30 days following a change in actual or legal control of the
corporation, but if an application for a new permit is submitted within
those 30 days, the outstanding permit may remain in effect until TTB
takes final action on the new application. Section 19.686 provides
that, ``When there is a change in the name of the individual, firm,
corporation, or other entity holding the permit, the proprietor must
file an application to amend the permit . . . within 30 days of the
change.'' Section 19.687 requires that the proprietor provide TTB with
letterhead notice within 30 days of any change to the list of officers,
directors, members, managers, or other principal persons provided with
the application for a permit as a medium or large alcohol fuel plant.
Section 19.691 states that, ``if there is a change in the address of an
alcohol fuel plant that does not involve a change in the location or
area of the plant itself, the proprietor must submit a letterhead
notice to the appropriate TTB officer within 30 days of the change.''
TTB proposes to extend each of these deadlines from 30 to 60 days. With
respect to the automatic termination provisions of Sec. 19.684, the
proposed amendments also necessarily extend the timeframe for
termination to 60 days.
Concerning permits for dealers or users of denatured alcohol and
rum, TTB proposes to amend provisions in 27 CFR part 20 to extend a
similar 30-day requirement to 60 days, and to remove one notification
requirement. Section 20.56 requires that a permittee submit a written
notification to TTB within 30 days of certain changes ``relating to any
of the information contained in, or considered a part of[,] the
application'' for a permit. Section 20.57 requires that the permit
holder provide written notice to TTB within 10 days of a change in
proprietorship or a change in actual or legal control of the business.
Section 20.57 further provides that the permit will terminate 30 days
following a change in proprietorship or control, unless the permit
holder submits an application for a new permit within 30 days of the
change, in which case the outstanding permit may remain in effect until
TTB takes final action on the new application. TTB proposes to extend
the
[[Page 68580]]
filing deadline of Sec. 20.56 from 30 to 60 days, and to remove the
10-day notification requirement of Sec. 20.57. With respect to the
automatic termination provisions of Sec. 20.57, the proposed
amendments extend the timeframe for termination to 60 days.
Concerning permits for users of tax-free (industrial) alcohol, TTB
proposes to amend Sec. Sec. 22.57 and 22.58. Section 22.57 requires
that such a permittee submit a written notification to TTB within 30
days of certain changes ``relating to any of the information contained
in, or considered a part of[,] the application'' for a permit. Section
22.58 requires that the permit holder provide written notice to TTB
within 10 days of a change in proprietorship or a change in actual or
legal control of the business. Section 22.58 further provides that the
permit will terminate 30 days following a change in proprietorship or
control, unless the permit holder submits an application for a new
permit within 30 days of the change, in which case the outstanding
permit may remain in effect until TTB takes final action on the new
application. TTB proposes to remove the 10-day notification requirement
of Sec. 22.58. TTB proposes to extend the filing deadline of Sec.
22.57 from 30 to 60 days. With respect to the automatic termination
provisions of Sec. 22.58, the proposed amendments also extend the
timeframe for termination to 60 days.
In 27 CFR part 31, concerning alcohol beverage dealers, TTB
proposes to amend Sec. 31.138 to provide 60 days for an alcohol
beverage dealer to notify TTB of the discontinuance of their business,
rather than the current 30 days.
As noted above, FAA Act basic permits are subject to certain
reporting timeframes, similar to some of those IRC timeframes discussed
above, that TTB is unable to extend by regulation because they are
statutory. Specifically, the FAA Act at 27 U.S.C. 204(g) provides that
FAA Act permits cannot be sold or transferred, and will automatically
terminate 30 days after a transfer by operation of law or a change in
actual or legal control of the permitted business. However, section
204(g)(2) also provides that if an application for a new permit is
submitted within 30 days of such a change, the outstanding permit
remains in effect until TTB takes final action on the new application.
These provisions are implemented in TTB regulations at 27 CFR 1.44. TTB
cannot extend the Sec. 1.44 deadline for filing a new permit
application from 30 to 60 days, because the 30-day provision is in the
statute (cited above). However, TTB is proposing to amend 27 CFR 1.42
to clarify that any changes in the ownership, management, or control of
the business, including changes that fall under Sec. 1.44, must be
reported to TTB within 30 days rather than ``immediately,'' as
currently required. If the change requires the filing of a new
application under Sec. 1.44, a timely application will also satisfy
the notification requirement of Sec. 1.42.
Industry members who hold both a basic permit under the authority
of the FAA Act and a registration under the authority of the IRC (such
as DSPs producing nonindustrial spirits) should be aware that an
extension of the timeframes applicable to the registration issued under
the IRC does not apply in any way to the basic permit under the FAA
Act. As a result, such DSPs must still report changes in the ownership
or management of their business within 30 days (and submit any required
applications within 30 days) to comply with the requirements of their
FAA Act basic permit.
E. Changes in Trade Names
TTB proposes amendments to the regulations at 27 CFR 1.40, 19.129,
20.61, 22.62, and 31.132 to allow changes to, or additions of, trade
names through a notification to TTB rather than through an amended
permit or registration. These regulations apply to holders of FAA Act
basic permits, DSP operating permits, specially denatured spirits user
and dealer permits, tax-free alcohol user permits, and alcohol beverage
dealer registrations, respectively. The regulations currently require
that holders of such permits or registrations apply for and obtain an
amended permit or submit an amended registration before engaging in
operations under a new trade name (see, e.g., 27 CFR 19.129) or
requesting FAA Act label approval reflecting a new trade name (see 27
CFR 5.36(f)). Currently, TTB automatically approves trade name
amendments. Consistent with this policy, TTB is also proposing to amend
27 CFR 19.94 to remove the requirement that an applicant for an
original DSP operating permit submit supporting documentation for the
trade names identified in the application. TTB's proposed amendments
generally would update regulations to reflect that industry members may
begin operations under the new name immediately after notifying TTB.
TTB notes that, while this amendment would allow industry members
to immediately begin operations under a new trade name upon notifying
TTB, it remains the responsibility of the permit holder or registered
alcohol dealer to ensure that any trade name is properly registered
with the applicable state or local government. Industry members should
further note that the FAA Act prohibits false or misleading statements
on alcohol beverage labels, and TTB will not approve an application for
label approval proposing to use a trade name on a label that gives a
misleading impression as to the age, origin, or identity of the
product. The FAA Act also prohibits the use of misleading trade names
when advertising distilled spirits for beverage purposes.
F. Retention of Records Off-Premises
As part of its evaluation of permit and registration applications,
TTB sought to identify types of requests to vary from the regulations
that were commonly submitted along with a permit or registration
application. One common request relevant to distilled spirits is to
retain required records at a location other than the premises covered
under the permit or registration. TTB is proposing amendments to
recordkeeping requirements in parts 17, 20, 22, 26, 27, 28, and 31 to
allow records to be stored at a location other than the permitted
premises, and allow applicants to notify TTB of their intention to
store records at an off-premises location as part of the application
process. The amendments provide that required records must still be
made available at the permitted premises upon request, but that copies
(including electronic copies) will generally satisfy this requirement.
The TTB regulations at 27 CFR 19.573 provide that a DSP's records
may be maintained at the DSP or at a central recordkeeping location
maintained by the DSP proprietor. In the latter case, the proprietor
must submit a letterhead notice to TTB informing TTB of the location
where the records are kept. Section 19.574, concerning availability of
records, further provides that if records are kept at a location other
than the DSP premises, they must nonetheless be made available at the
DSP premises upon request, generally within two days of the request.
The current recordkeeping requirements applicable to TTB-regulated
manufacturers of nonbeverage products, specially denatured spirits
dealers and users, tax-free alcohol users, importers, wholesalers, and
alcohol beverage dealers do not similarly allow records to be
maintained at a location other than the premises covered by the permit
or registration. As a result, such proprietors generally must submit a
request for specific authorization to retain records at a central
recordkeeping location rather than at the premises covered by the
permit or registration. TTB proposes to amend the record
[[Page 68581]]
retention requirements applicable to such entities (i.e., record
retention requirements in 27 CFR parts 17, 20, 22, 26, 27, 28, and 31)
to reflect those set forth in Sec. Sec. 19.573 and 19.574, described
above. TTB also proposes amendments to Sec. 19.574, as well as other
record retention provisions in part 19, intended to clarify that an
industry member generally may satisfy a request for documents by
providing copies of such documents, including electronic copies.
III. Public Participation
A. Comments Invited
TTB invites comments from interested members of the public on this
proposed rulemaking. TTB also invites comments on any additional means
to streamline application processes within the parameters of TTB's
statutory obligations.
B. Submitting Comments
You may submit comments on this proposal as an individual or on
behalf of a business or other organization via the Regulations.gov
website or via postal mail, as described in the ADDRESSES section of
this document. Your comment must reference Notice No. 207 and must be
submitted or postmarked by the closing date shown in the DATES section
of this document. You may upload or include attachments with your
comment. You also may submit a comment requesting a public hearing on
this proposal. The TTB Administrator reserves the right to determine
whether to hold a public hearing. If TTB schedules a public hearing, it
will publish notification of the date, time, and place for the hearing
in the Federal Register.
C. Confidentiality and Disclosure of Comments
All submitted comments and attachments are part of the rulemaking
record and are subject to public disclosure. Do not enclose any
material in your comments that you consider confidential or that is
inappropriate for disclosure.
TTB will post, and you may view, copies of this document, its
supporting materials, and any comments TTB receives about this proposal
within the related Regulations.gov docket. In general, TTB will post
comments as submitted, and it will not redact any identifying or
contact information from the body of a comment or attachment.
Please contact TTB's Regulations and Rulings division by email
using the web form available at https://www.ttb.gov/contact-rrd, or by
telephone at 202-453-2265, if you have any questions regarding comments
on this proposal or to request copies of this document, its supporting
materials, or the comments received in response.
IV. Regulatory Analysis and Notices
A. Executive Order 12866
It has been determined that this proposed rule is not a significant
regulatory action as defined by Executive Order 12866. Therefore, a
regulatory impact assessment is not required.
B. Regulatory Flexibility Act
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), TTB has analyzed the potential economic effects of this action
on small entities. In lieu of the initial regulatory flexibility
analysis required to accompany proposed rules under 5 U.S.C. 603,
section 605 allows the head of an agency to certify that a rule will
not, if promulgated, have a significant economic impact on a
substantial number of small entities. The following analysis provides
the factual basis for TTB's certification under section 605.
Impact on Small Entities
While TTB believes the majority of businesses subject to this
proposed rule are small businesses, the changes proposed in this
document will not have a significant impact on those small entities.
The proposed amendments are generally aimed at reducing burden on
regulated entities of all sizes by: (1) Eliminating the collection of
certain information from applications for permits or registrations; (2)
replacing required narrative descriptions of an applicant's premises
with more specific description requirements; (3) extending deadlines
for reporting certain changes in a permitted or registered business;
(4) relaxing the requirements associated with amending the trade names
available for use by a permitted or registered business; (5) allowing
the maintenance of required records at locations other than the
permitted or registered premises; and (6) clarifying and limiting which
individuals are required to submit certain background information in
connection with an application for permit or registration. Many of the
proposed changes are consistent with recommendations submitted by
industry in response to Treasury's request for recommendations for
Treasury regulations that can be eliminated, modified, or streamlined
in order to reduce burdens.
Examples of eliminating the collection of information from
applications for permits or registrations are the proposed amendments
to Sec. Sec. 19.73(a)(12), 19.76, and 19.123, which eliminate a
requirement that an applicant for a DSP registration submit a statement
of plant security measures and replace it with a requirement that the
applicant certify its premises is in compliance with the security
specifications already established at Sec. 19.192. Additionally,
proposed amendments to Sec. 19.75 eliminate the requirement to provide
in the application for registration the serial numbers of the tanks,
stills, and condensers to be used on the DSP premises, allowing an
application to be filed when equipment is on order but not yet
received.
The proposed amendments to Sec. Sec. 19.73, 19.74, 19.141, 19.142,
19.143, 19.643, 19.673, 19.675, 19.676, and 19.692 replace requirements
for narrative descriptions of an applicant's DSP premises with
requirements to submit more specific information regarding the
premises. For example, in connection with an application for
registration as a DSP, Sec. 19.74 currently requires a detailed
narrative description of the DSP premises, including each tract of land
covered by the DSP, featuring ``directions and distances in enough
detail to enable the appropriate TTB officer to readily determine the
boundaries of the plant.'' The proposed amendments to Sec. 19.74
remove the narrative description requirements and instead require the
submission of more limited information illustrating certain specified
attributes.
An example of extending deadlines for reporting changes in a
permitted or registered business is the proposed amendment to Sec.
19.112, which provides the general rules for notifying TTB of any
changes in the information included in a DSP's notice of registration.
Section 19.112 generally requires that when such changes occur, the
proprietor must file specified documentation with TTB to amend the
registration within 30 days. The proposed amendments to Sec. 19.112
extend this deadline to 60 days. TTB proposes similar amendments at
Sec. Sec. 19.114, 19.126, 19.127, 19.130, 19.644, 19.683, 19.684,
19.686, 19.687, 19.691, 20.56, 20.57, 22.57, 22.58, and 31.138.
An example of relaxing the reporting requirements associated with
changes in the trade names available for use by a permitted or
registered business is the proposed amendment to Sec. 19.129. Section
19.129 currently requires that a proprietor of a DSP apply for, and
receive approval of, an amended operating permit prior to operating
under a new trade name. The proposed amendment to Sec. 19.129 allows
the
[[Page 68582]]
addition of a new trade name through a letterhead notice that does not
require TTB approval. TTB proposes similar amendments at Sec. Sec.
1.40, 20.61, 22.62, and 31.132.
Concerning records maintenance, current recordkeeping requirements
applicable to manufacturers of nonbeverage products, specially
denatured spirits dealers and users, tax-free alcohol users, importers,
wholesalers, and alcohol beverage dealers do not allow records to be
maintained at a location other than the premises covered by the permit
or registration. The proposed amendments to Sec. Sec. 17.161, 17.171,
20.267, 22.164, 26.174, 26.275, 26.310, 27.136, 28.45, 31.152, 31.172,
and 31.181 generally allow for the maintenance of required records at
locations other than the permitted or registered premises upon
letterhead notice to TTB.
With respect to the collection of applicant background information,
TTB proposes amendments to 27 CFR 19.93, 19.677, 20.45, and 22.45 to
clarify the individuals who are required to submit statements of
financial interest in a business applying for a distilled spirits-
related permit or registration. The proposed amendments clarify that:
(1) Such statements of interest are required only from persons with an
ownership interest in the applicant of 10 percent or greater; and (2)
where a ``person'' holding such an interest is a legal entity other
than an individual, an applicant must submit basic identifying
information about a representative individual for that entity.
In conclusion, while the entities affected by the proposed rule
include a substantial number of small entities, the effects of the
changes in this proposed rule are expected to be positive for the
affected entities.
In accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.), TTB certifies that this proposed rule, if promulgated, will not
have a significant economic impact on a substantial number of small
entities. The proposed rule will not impose, or otherwise cause, a
significant increase in reporting, recordkeeping, or other compliance
burdens on a substantial number of small entities. The proposed rule is
not expected to have significant secondary or incidental effects on a
substantial number of small entities. Accordingly, a regulatory
flexibility analysis is not required. Pursuant to 26 U.S.C. 7805(f),
TTB will submit the proposed regulations to the Chief Counsel for
Advocacy of the Small Business Administration for comment on the impact
of the proposed regulations on small businesses.
C. Paperwork Reduction Act
Regulations addressed in this document contain current collections
of information that have been previously reviewed and approved by the
Office of Management and Budget (OMB) in accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3504(h)) and assigned control numbers
1513-0002, 1513-0018, 1513-0019, 1513-0028, 1513-0040, 1513-0041, 1513-
0044, 1513-0048, 1513-0051, 1513-0052, 1513-0059, 1513-0060, 1513-0061,
1513-0062, 1513-0065, 1513-0066, 1513-0073, 1513-0075, 1513-0088, 1513-
0089, and 1513-0112. The specific regulatory sections in this proposed
rule that contain collections of information, either current or
proposed, are Sec. Sec. 1.27, 1.40, 1.42, 1.44, 17.161, 19.73, 19.74,
19.75, 19.93, 19.94, 19.112, 19.114, 19.119, 19.126, 19.127, 19.129,
19.130, 19.141, 19.142, 19.143, 19.192, 19.574, 19.643, 19.644, 19.673,
19.675, 19.676, 19.677, 19.683, 19.684, 19.686, 19.687, 19.691, 19.692,
20.42, 20.45, 20.56, 20.57, 20.61, 20.267, 22.42, 22.45, 22.57, 22.58,
22.62, 22.164, 26.174, 26.275, 26.310, 27.136, 28.45, 31.114, 31.132,
31.138, 31.152, 31.172, and 31.181. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless it displays a valid control number assigned by OMB.
The amendments that TTB proposes in this document, along with
certain corresponding policy changes, are designed to reduce the
overall burden associated with the information collections noted above.
In general, the proposed amendments involve: (1) Eliminating the
collection of certain information from applications for permits or
registrations; (2) replacing required narrative descriptions of an
applicant's premises with more specific information; (3) extending
deadlines for reporting certain changes in a permitted or registered
business; (4) relaxing the requirements associated with amending the
trade names available for use by a permitted or registered business;
(5) allowing the maintenance of required records at locations other
than the permitted or registered premises; and (6 clarifying which
individuals are required to submit certain background information in
connection with an application for permit or registration.
To reduce the amount of information collected in applications for
distilled spirits-related permits or registrations, TTB proposes to
amend 27 CFR 19.73, 19.75, and 19.192, and to eliminate 27 CFR 19.76,
19.77, and 19.123. Proposed amendments to Sec. 19.73(a)(13) and the
elimination of Sec. 19.77 eliminate requirements that an applicant for
a DSP registration intending to operate as a distiller submit a
statement of its production procedures and a statement as to whether
spirits will be redistilled. Proposed amendments to current Sec.
19.73(a)(14) eliminate requirements that an applicant for a DSP
registration intending to operate as a warehouseman submit a narrative
description of its storage system and a statement of the total amount
of bulk wine gallons that can be stored. Additionally, proposed
amendments to current Sec. 19.73(a)(15) eliminate requirements that an
applicant for a DSP registration intending to operate as a processor
submit a narrative description of the storage system for spirits
bottled and cased or otherwise packaged and placed in approved
containers for removal from the bonded premises. Proposed amendments to
Sec. Sec. 19.73(a)(12) and 19.192, and the elimination of Sec. Sec.
19.76 and 19.123, eliminate a requirement that an applicant for a DSP
registration submit a statement of plant security measures and replace
it with a requirement that the applicant certify its premises is in
compliance with the security specifications already established at
Sec. 19.192. The amendments to Sec. 19.192 also generalize the
required specifications for locks to be used on the DSP premises. The
proposed amendments to Sec. 19.75 eliminate the requirement to provide
in the application for registration the serial numbers of the tanks,
stills, and condensers to be used on the DSP premises. Sections 19.73,
19.75, 19.76, 19.77, 19.123, and 19.192 are currently included in the
collection of information assigned OMB control number 1513-0048. TTB
has submitted to OMB a revision of that information collection to
account for the reduced burden of the proposed amendments.
Similar to the amendments to Sec. 19.75 described in the previous
paragraph, TTB proposes amendments 27 CFR 20.42 and 22.42 to remove
requirements to provide serial numbers of equipment to be used by
applicants for permits as users of denatured alcohol and of tax-free
alcohol. Sections 20.42 and 22.42 are currently included in the
collection of information assigned OMB control number 1513-0028. TTB
has submitted to OMB a revision of that information collection to
account for the reduced burden of the proposed amendments.
To replace required narrative descriptions of applicant premises
with more specific information and certifications, TTB proposes
amendments to 27 CFR 19.73, 19.74, 19.141, 19.142, 19.143, 19.643,
19.673, 19.675, 19.676, and 19.692. The
[[Page 68583]]
proposed amendments to Sec. 19.74 eliminate requirements to submit
detailed narrative descriptions of the plant and certain of its
attributes, and replace these requirements with a more specific set of
information and certifications. TTB proposes similar amendments with
respect to applications for alcohol fuel plant permits at Sec. Sec.
19.673, 19.675, and 19.676; and with respect to applications for
vinegar plants at Sec. 19.643. Sections 19.141, 19.142, and 19.143
each relate to qualifying to alternate the DSP premises. TTB proposes
amendments to these sections to eliminate requirements to submit
narrative statements describing the areas to be alternated and the
means by which the alternated areas will be separated from other parts
of the premises. TTB's proposed amendments require more specific
information. TTB proposes similar amendments to with respect to
alternation of an alcohol fuel plant at Sec. 19.692.
Sections 19.74 and 19.143 are currently included in the collection
of information assigned OMB control number 1513-0048; Sec. Sec. 19.141
and 19.142 are being added to the collection of information assigned
OMB control number 1513-0048 in revisions submitted to OMB (these
sections were inadvertently not referenced in the supporting statement,
but their burden has been accounted for); Sec. Sec. 19.673, 19.675,
and 19.676 are currently included in the collection of information
assigned OMB control number 1513-0051; and the amended provisions of
Sec. 19.692 are currently included in the collection of information
assigned OMB control number 1513-0051. TTB has submitted to OMB
revisions of those information collections to account for the reduced
burden of the proposed amendments. The information collected under
Sec. 19.643 is not subject to the Paperwork Reduction Act due to the
limited number of respondents.
The TTB regulations generally require that, when there is a change
in the information filed with TTB as part of an application for a
permit or registration, the proprietor of the regulated business must
notify TTB of the change. To extend deadlines for reporting certain
changes in a permitted or registered business, TTB proposes amendments
to 27 CFR 19.112, 19.114, 19.126, 19.127, 19.130, 19.644, 19.683,
19.684, 19.686, 19.687, 19.691, 20.56, 20.57, 22.57, 22.58, and 31.138.
In each case, the deadline for reporting the specified change in the
business is extended to 60 days, typically from 30 days (in some cases,
current regulatory text required industry to inform TTB ``immediately''
of certain changes; see, e.g., Sec. 19.644). Sections 19.112 and
19.114 are currently included in the collection of information assigned
OMB control number 1513-0048; Sec. Sec. 19.126 and 19.130 are
currently included in the collection of information assigned OMB
control number 1513-0040; Sec. Sec. 19.683, 19.684, and 19.686 are
currently included in the collection of information assigned OMB
control number 1513-0051; Sec. Sec. 19.683, 19.687, and 19.691 are
currently included in the collection of information assigned OMB
control number 1513-0052 (additionally, the letterhead application
provisions of Sec. 19.686 are being added to this collection of
information in revisions submitted to OMB); Sec. Sec. 20.56 and 20.57
are currently included in the collection of information assigned OMB
control number 1513-0061; Sec. Sec. 22.57 and 22.58 are currently
included in the collection of information assigned OMB control number
1513-0060; and Sec. 31.138 is currently included in the collection of
information assigned OMB control number 1513-0112. TTB has submitted to
OMB revisions of those information collections to account for the
reduced burden of the proposed amendments. The revision to number 1513-
0040 also adds a reference to Sec. 19.127. The information collected
under Sec. 19.644 is not subject to the Paperwork Reduction Act due to
the limited number of respondents.
The TTB regulations generally require that changes to, or additions
of, the trade names under which a permitted or registered business may
operate be made by filing for an amended permit or registration. Such
applications would need to be approved prior to the applicant beginning
operations under the new trade name. To relax the requirements
associated with altering the trade names available for use by a
permitted or registered business, TTB proposes amendments to 27 CFR
1.40, 19.129, 20.61, 22.62, and 31.132. The amendments would allow
changes to, or additions of, trade names to be accomplished by a
letterhead notice. TTB also proposes an amendment to 27 CFR 19.94 to
remove the requirement that an applicant for an original DSP operating
permit submit supporting documentation for the trade names identified
in the application. Section 1.40 is currently included in the
collection of information assigned OMB control number 1513-0019;
Sec. Sec. 19.94 and 19.129 are currently included in the collection of
information assigned OMB control number 1513-0040; Sec. 20.61 is
currently included in the collection of information assigned OMB
control number 1513-0061; Sec. 22.62 is currently included in the
collection of information assigned OMB control number 1513-0060; and
Sec. 31.132 currently included in the collection of information
assigned OMB control number 1513-0112. TTB has submitted to OMB
revisions of those information collections to account for the reduced
burden of the proposed amendments.
The current recordkeeping requirements applicable to specially
denatured spirits dealers and users, tax-free alcohol users,
manufacturers of nonbeverage products, importers, wholesalers, and
alcohol beverage dealers do not allow records to be maintained at a
location other than the premises covered by the permit or registration.
As a result, such proprietors generally must submit a request for
specific authorization to retain records at a central recordkeeping
location rather than the premises covered by the permit or
registration. To allow the maintenance of required records at locations
other than the permitted or registered premises, TTB proposes
amendments to 27 CFR 17.161, 17.171, 20.267, 22.164, 26.174, 26.275,
26.310, 27.136, 28.45, 31.152, 31.172, and 31.181. These amendments, as
well as amendments to 27 CFR 19.574, also clarify that an industry
member generally may satisfy a request for documents by providing
copies of such documents, including electronic copies. Sections 17.161
and 17.171 are currently included in the collection of information
assigned OMB control number 1513-0073; Sec. 19.574 is currently
included in the collection of information assigned OMB control number
1513-0041; the general record retention provisions of Sec. 22.164 are
currently included in the collection of information assigned OMB
control number 1513-0059, while the proposed notice associated with
off-premises records retention has been added to the collection of
information assigned OMB control number 1513-0060 in revisions
submitted to OMB. In addition, Sec. 20.267 is currently included in
OMB control number 1513-0062; Sec. Sec. 26.174 and 26.310 are
currently included in the collection of information assigned OMB
control number 1513-0089; Sec. 28.45 is currently included in the
collection of information assigned OMB control number 1513-0075;
Sec. Sec. 31.152 and 31.172 are currently included in the collection
of information assigned OMB control number 1513-0065; Sec. 31.181 is
currently included in the collection of information assigned OMB
control number 1513-0066; and Sec. Sec. 19.574, 26.174, 26.310, and
27.136 are currently
[[Page 68584]]
included in the collection of information assigned OMB control number
1513-0088. TTB has submitted to OMB revisions of those information
collections as needed to account for the reduced burden of the proposed
amendments. Additionally, the revision to OMB control number 1513-0088
adds references to Sec. Sec. 26.275 and 28.45. TTB also submitted to
OMB a revision of the information collection assigned OMB control
number 1513-0061, to add a reference to Sec. 20.267.
With respect to the collection of applicant background information,
TTB proposes amendments to 27 CFR 19.93, 19.677, 20.45, 22.45, and
31.114 to clarify the individuals who are required to submit statements
of financial interest in the applicant business. The above regulations
generally require statements disclosing the identities of persons
holding certain levels of ownership in a business applying for a
distilled spirits-related registration or permit be submitted with such
applications. The proposed amendments clarify that (1) Such statements
of interest are required only from persons with an ownership interest
in the applicant of 10 percent or greater; and (2) where a ``person''
holding such an interest is a legal entity other than an individual, an
applicant must submit basic identifying information about a
representative individual for that entity. Section 19.93 is currently
included in the collection of information assigned OMB control number
1513-0040, and TTB has proposed revisions to also include it in the
collection of information assigned OMB control number 1513-0048; Sec.
19.677 is currently included in the collection of information assigned
OMB control number 1513-0051; Sec. Sec. 20.45 and 22.45 are currently
included in the collection of information assigned OMB control number
1513-0028; and Sec. 31.114 is currently included in the collection of
information assigned OMB control number 1513-0112. TTB proposes
conforming amendments to 27 CFR 1.27, 1.42, 1.44, 19.114, 19.127,
19.130, 19.684, and 19.687, each relating to reporting changes in the
ownership of the applicant or permitted business, to update the
description of ownership interests consistent with the amendments
described above. Section 1.27 is currently included in the collection
of information assigned OMB control number 1513-0018; Sec. 1.42 is
currently included in the collection of information assigned OMB
control number 1513-0019; Sec. 19.114 is currently included in the
collection of information assigned OMB control number 1513-0048; Sec.
19.130 is currently included in the collection of information assigned
OMB control number 1513-0040; Sec. 19.684 currently included in the
collection of information assigned OMB control number 1513-0051; and
Sec. 19.687 is currently included in the collection of information
assigned OMB control number 1513-0052. TTB has submitted to OMB
revisions of the collections of information assigned OMB control
numbers 1513-0019 and 1513-0040 to add references to Sec. Sec. 1.44
and 19.127, respectively. The burden for these sections was already
accounted for, but citations to these sections were left out in error.
As noted above, TTB has submitted the revised information
collection requirements to OMB for review. Comments on these revised
recordkeeping and reporting requirements should be sent to OMB at
Office of Management and Budget, Attention: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503 or by email to
[email protected]. A copy should also be sent to TTB by any
of the methods previously described. Comments on the information
collections should be submitted no later than February 1, 2022.
Comments are specifically requested concerning:
Whether the collections of information submitted to OMB
are necessary for the proper performance of the functions of the
Alcohol and Tobacco Tax and Trade Bureau, including whether the
information will have practical utility;
The accuracy of the estimated burdens associated with the
collections of information submitted to OMB;
How to enhance the quality, utility, and clarity of the
information to be collected;
How to minimize the burden of complying with the proposed
revisions of the collections of information, including the application
of automated collection techniques or other forms of information
technology; and
Estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services to provide
information.
List of Subjects
27 CFR Part 1
Alcohol and alcoholic beverages, Application procedures, Distilled
spirits plants, Importers, Permit requirements, Reporting and
recordkeeping requirements, Trade names, Wholesalers.
27 CFR Part 17
Claims, Excise taxes, Liquors, Reporting and recordkeeping
requirements.
27 CFR Part 19
Alcohol and alcoholic beverages, Alcohol fuel plants, Alternation,
Application procedures, Distilled spirits plants, Permit requirements,
Registration requirements, Reporting and recordkeeping requirements,
Security requirements, Trade names, Vinegar plants.
27 CFR Part 20
Alcohol, Application procedures, Denatured spirits, Distilled
spirits plants, Permit requirements, Reporting and recordkeeping
requirements, Specially denatured spirits, Trade names.
27 CFR Part 22
Alcohol, Application procedures, Permit requirements, Reporting and
recordkeeping requirements, Tax-free alcohol.
27 CFR Part 26
Alcohol and alcohol beverages, Puerto Rico, Reporting and
recordkeeping requirements, Virgin Islands.
27 CFR Part 27
Alcohol and alcohol beverages, Importation, Importers, Reporting
and recordkeeping requirements.
27 CFR Part 28
Alcohol and alcohol beverages, Exportation, Exporters, Reporting
and recordkeeping requirements.
27 CFR Part 31
Alcohol and alcohol beverages, Reporting and recordkeeping
requirements, Retail dealers, Trade names, Wholesale dealers.
Amendments to the Regulations
For the reasons discussed above in the preamble, TTB proposes to
amend 27 CFR parts 1, 17, 19, 20, 22, 26, 27, 28, and 31 as follows:
PART 1--BASIC PERMIT REQUIREMENTS UNDER THE FEDERAL ALCOHOL
ADMINISTRATION ACT, NONINDUSTRIAL USE OF DISTILLED SPIRITS AND
WINE, BULK SALES AND BOTTLING OF DISTILLED SPIRITS
0
1. The authority citation for part 1 continues to read as follows:
Authority: 27 U.S.C. 203, 204, 206, 211 unless otherwise noted.
[[Page 68585]]
0
2. Section 1.24 is amended by revising paragraph (a) to read as
follows:
Sec. 1.24 Qualifications of applicants.
* * * * *
(a) Such person (or in case of a limited liability entity, any of
its officers, directors, or persons holding a 10 percent or more
ownership interest in any of the classes or types of ownership of the
applicant) has not, within 5 years prior to the date of application,
been convicted of a felony under Federal or State law, and has not,
within 3 years prior to the date of application, been convicted of a
misdemeanor under any Federal law relating to liquor, including the
taxation thereof; and
* * * * *
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3. Section 1.27 is revised to read as follows:
Sec. 1.27 Change in ownership, management, or control of the
applicant.
In the event of any change in the ownership, management, or control
of the applicant (in case of a limited liability entity, any change in
the officers, directors, or persons holding a 10 percent or more
ownership interest in any of the classes or types of ownership of the
applicant), after the date of filing of any application for a basic
permit and prior to final action on such application, the applicant
must notify the appropriate TTB officer immediately of such change.
0
4. Section 1.40 is revised to read as follows:
Sec. 1.40 Change in name.
(a) Legal name. In the event of any change in the name of the
individual, firm, corporation, or other entity holding a basic permit,
the permittee must file application form TTB F 5100.18 for an amended
basic permit. The application must be approved and an amended permit
issued before operations may be commenced under the new name.
(b) Trade name. In the event of any change in a trade name of a
permittee, or, in the event a permittee desires to engage in operations
under an additional trade name, the permittee must first file a
letterhead notice with the appropriate TTB officer listing the new
names and the offices where they are registered.
(Approved by the Office of Management and Budget under control
number 1513-0019)
0
5. Section 1.42 is revised to read as follows:
Sec. 1.42 Change in ownership, management, or control of business.
In the event of any change in the ownership, management, or control
of any business operated pursuant to a basic permit (in case of a
limited liability entity, any change in the officers, directors, or
persons holding a 10 percent or more ownership interest in any of the
classes or types of ownership of the permittee) the permittee must
within 30 days notify the appropriate TTB officer of such change,
giving the names and addresses of all new persons participating in the
ownership, management, or control of such business. Notice to the
appropriate TTB officer of any such change must be accompanied or
supplemented by such data in reference to the personal or business
history of such persons as the appropriate TTB officer may require.
Sec. 1.44 [Amended]
0
6. Section 1.44 is amended by removing the word ``stock'' in the second
sentence.
PART 17--DRAWBACK ON TAXPAID DISTILLED SPIRITS USED IN
MANUFACTURING NONBEVERAGE PRODUCTS
0
7. The authority citation for part 17 continues to read as follows:
Authority: 26 U.S.C. 5010, 5111-5114, 5123, 5206, 5273, 6065,
6091, 6109, 7213, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.
0
8. Section 17.161 is revised to read as follows:
Sec. 17.161 General.
Each person claiming drawback on taxpaid distilled spirits used in
the manufacture of nonbeverage products must maintain records showing
the information required in this subpart. No particular form is
prescribed for these records, but the data required to be shown must be
clearly recorded and organized to enable appropriate TTB officers to
trace each operation or transaction, monitor compliance with law and
regulations, and verify the accuracy of each claim. Ordinary business
records, including invoices and cost accounting records, are acceptable
if they show the required information or are annotated to show any such
information that is lacking. The records must be kept complete and
current at all times and must be retained by the manufacturer for the
period prescribed in Sec. 17.170 and at the place prescribed in Sec.
17.171.
0
9. Section 17.171 is amended by:
0
a. Designating the paragraph as paragraph (a);
0
b. Removing the word ``shall'' each place it appears and adding in its
place the word ``must'' in newly designated paragraph (a);
0
c. Adding paragraph (b); and
0
d. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 17.171 Inspection of records.
* * * * *
(b) A manufacturer may keep the records required by this part at a
location other than the premises where the distilled spirits are used
in the manufacture or production of nonbeverage products, if he or she
has first provided a letterhead notice to the appropriate TTB officer,
identifying the location where the records are to be kept. A
manufacturer keeping records at a location other than the premises
where distilled spirits are used in the manufacture or production of
nonbeverage products must make the records available at such premises
upon request of the appropriate TTB officer; however, the TTB officer
may, at his or her discretion, allow the permittee to supply copies
(including electronic copies) of such records instead of the originals.
PART 19--DISTILLED SPIRITS PLANTS
0
10. The authority citation for part 19 continues to read as follows:
Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-
5006, 5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5114,
5121-5124, 5142, 5143, 5146, 5148, 5171-5173, 5175, 5176, 5178-5181,
5201-5204, 5206, 5207, 5211-5215, 5221-5223, 5231, 5232, 5235, 5236,
5241-5243, 5271, 5273, 5301, 5311-5313, 5362, 5370, 5373, 5501-5505,
5551-5555, 5559, 5561, 5562, 5601, 5612, 5682, 6001, 6065, 6109,
6302, 6311, 6676, 6806, 7011, 7510, 7805; 31 U.S.C. 9301, 9303,
9304, 9306.
0
11. Section 19.73 is amended by:
0
a. Revising paragraphs (a)(12) and (13);
0
b. Removing paragraph (a)(14);
0
c. Redesignating paragraph (a)(15) as paragraph (a)(14) and revising
newly redesignated paragraph (a)(14);
0
d. Redesignating paragraph (a)(16) as paragraph (a)(15); and
0
e. Removing the parenthetical authority citation at the end of the
section.
The revisions read as follows:
Sec. 19.73 Information required in an application for registration.
(a) * * *
(12) A certification that the plant's security will be in
compliance with Sec. 19.192;
[[Page 68586]]
(13) If the applicant intends to operate as a distiller, a
statement of the total proof gallons of spirits that can be produced
daily;
(14) If the applicant intends to operate as a processor, a
statement whether spirits will or will not be bottled, denatured,
redistilled, and whether articles will be manufactured; and
* * * * *
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12. Section 19.74 is revised to read as follows:
Sec. 19.74 Description of the plant.
(a) As required by Sec. 19.73(a)(8), the application for
registration must include a description of the distilled spirits plant.
The description may be in narrative form or diagram form, and must
illustrate:
(1) The overall dimensions of the building(s) housing the distilled
spirits plant;
(2) The dimensions of the bonded premises and any general premises;
(3) Any internal walls establishing the boundaries of the bonded
premises and general premises;
(4) The external doors of the distilled spirits plant premises;
(5) Any portions of the plant premises that are outdoors, including
the location of any outdoor tanks; and
(6) Any adjacent retail premises that are to be operated by the
applicant.
(b) Photographs further illustrating any of the elements required
in paragraph (a) of this section must be submitted upon request of the
appropriate TTB officer.
0
13. Section 19.75 is amended by:
0
a. Revising the first sentences of paragraphs (a) and (b);
0
b. Revising paragraph (c); and
0
c. Removing the parenthetical authority citation at the end of the
section.
The revisions read as follows:
Sec. 19.75 Major equipment.
* * * * *
(a) The capacity of each tank in the plant. * * *
(b) The kind, capacity, and intended use of each still in the
plant. * * *
(c) The number of condensers used in the plant.
Sec. 19.76 [Removed]
0
14. Section 19.76 is removed.
Sec. 19.77 [Removed]
0
15. Section 19.77 is removed.
0
16. Section 19.80 is amended by:
0
a. Adding a sentence before the last sentence; and
0
b. Removing the parenthetical authority citation at the end of the
section.
The addition reads as follows:
Sec. 19.80 Approved notice of registration.
* * * In a circumstance in which a proprietor of a distilled
spirits plant is authorized to continue to operate under either an FAA
Act permit or an operating permit under the IRC while a new permit
application is pending, such as under 27 CFR 1.44 or 19.127, the
proprietor's notice of registration will also remain valid until TTB
takes final action upon the new application. * * *
0
17. Section 19.93 is amended by:
0
a. Removing the citation to ``19.92(a)(4)'' and adding in its place
``19.92(b)(4)'' in the first sentence of paragraph (a) introductory
text;
0
b. Adding the word ``ownership'' before the word ``interest'' the first
time it appears in paragraph (b)(1);
0
c. Revising paragraphs (b)(2)(i) and (ii);
0
d. Adding paragraph (b)(3); and
0
e. Removing the parenthetical authority citation at the end of the
section.
The revisions and addition read as follows:
Sec. 19.93 Applicant organization documents.
* * * * *
(b) * * *
(2) * * *
(i) The names and addresses of persons having a 10 percent or more
ownership interest in each of the classes or types of ownership
interest in the applicant, and the nature and amount of ownership
interest of each person.
(ii) The name of the person in whose name the interest appears. If
the limited liability entity is under actual or legal control of
another limited liability entity, the appropriate TTB officer may
request the same information regarding ownership for the parent limited
liability entity.
(3) Representative. If any interested person named under paragraphs
(b)(1) and (2) of this section is a legal entity other than an
individual, the applicant must also provide the name, title, and city
and state of residence of a representative individual for the entity.
The representative individual must be the individual designated by the
entity to represent the entity's interest in the applicant business or,
in the absence of a designated individual, an owner, chief officer or
manager, or person with similar authority within the entity.
Sec. 19.94 [Amended]
0
18. Section 19.94 is amended by removing the final sentence in
paragraph (a) and the parenthetical authority citation at the end of
the section.
0
19. Section 19.96 is amended by:
0
a. Revising paragraph (a); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.96 Denial of permit.
* * * * *
(a) The applicant (including, in the case of a limited liability
entity, any of its officers, directors, or persons holding a 10 percent
or more ownership interest in any of the classes or types of ownership
of the applicant) is, by reason of business experience, financial
standing, or trade connections, not likely to maintain operations in
compliance with 26 U.S.C. chapter 51, or the regulations in this
chapter;
* * * * *
Sec. 19.112 [Amended]
0
20. Section 19.112 is amended by:
0
a. Removing the phrase ``30 days'' and adding in its place ``60 days''
in the first sentence of the introductory text; and
0
b. Removing the parenthetical authority citation at the end of the
section.
Sec. 19.114 [Amended]
0
21. Section 19.114 is amended by:
0
a. Adding the words ``an ownership'' before the word ``interest'' in
the first sentence of the introductory text;
0
b. Removing the phrase ``30 days'' each place it appears and adding in
its place ``60 days''; and
0
c. Removing the parenthetical authority citation at the end of the
section.
0
22. Section 19.119 is amended by:
0
a. Designating the paragraph as paragraph (a);
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b. Adding paragraph (b); and
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c. Removing the parenthetical authority citation at the end of the
section.
The addition reads as follows:
Sec. 19.119 Change in premises.
* * * * *
(b)(1) If the proprietor intends to make any change to the
premises, other than those covered by paragraph (a) of this section or
by Sec. Sec. 19.142 and 19.143, that would render inaccurate the
description submitted with the registration or submitted separately or
previously by the proprietor with another reported change, the
proprietor must first submit to TTB updated information meeting the
requirements of Sec. 19.74.
(2) The proprietor may make emergency changes to the premises
described in paragraph (b)(1) of this section without first submitting
updated information. However, the proprietor
[[Page 68587]]
must promptly report any emergency change to the appropriate TTB
officer and submit updated information meeting the requirements of
Sec. 19.74 within 60 days of the emergency changes.
Sec. 19.121 [Removed]
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23. Section 19.121 is removed.
Sec. 19.122 [Removed]
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24. Section 19.122 is removed.
Sec. 19.123 [Removed]
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25. Section 19.123 is removed.
Sec. 19.126 [Amended]
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26. Section 19.126 is amended by:
0
a. Removing the phrase ``30 days'' and adding in its place ``60 days''
in paragraph (a); and
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b. Removing the parenthetical authority citation at the end of the
section.
0
27. Section 19.127 is amended by:
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a. Revising paragraph (a)(3); and
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b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.127 Automatic termination of permits.
(a) * * *
(3) In the case of a limited liability entity (i.e., a corporation,
limited liability partnership, limited liability company, or other
legal entity in which some or all of the owners have limited personal
liability for the activities of the entity) holding a permit issued
under subpart D of this part, if actual or legal control of such
limited liability entity changes, directly or indirectly, whether by
reason of a change in ownership or control (in the permittee limited
liability entity or any other limited liability entity), by operation
of law, or in any other manner, the permittee must file an application
for a new permit within 60 days of the change. If an application for a
new permit is not filed within 60 days of the change, the outstanding
permit will automatically terminate. If an application for a new permit
is filed within the 60-day period prescribed in the preceding
sentences, the outstanding permit will remain in effect until TTB takes
final action on the application. When TTB takes final action on the
application, the outstanding permit will automatically terminate.
* * * * *
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28. Section 19.129 is revised to read as follows:
Sec. 19.129 Change in trade name.
In the event of any change in a trade name of a proprietor of a
distilled spirits plant, or, in the event a proprietor desires to
engage in operations under an additional trade name, the proprietor
must first file a letterhead notice with the appropriate TTB officer
listing the new names and the offices where they are registered.
Sec. 19.130 [Amended]
0
29. Section 19.130 is amended by:
0
a. Adding the words ``an ownership'' before the word ``interest'' in
the first sentence of the introductory text;
0
b. Removing the phrase ``30 days'' each place it appears and adding in
its place ``60 days''; and
0
c. Removing the parenthetical authority citation at the end of the
section.
0
30. Section 19.141 is amended by:
0
a. Revising paragraph (a);
0
b. Removing the word ``diagrams'' and adding in its place
``description'' in paragraph (b)(4); and
0
c. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.141 Procedures for alternation of proprietors.
(a) General. A proprietor may alternate use of a distilled spirits
plant or part of the plant with one or more other proprietors. In order
to do so, each proprietor must separately file and receive approval of
the necessary registration, applications and bonds that are required by
subpart D of this part and this subpart. Each proprietor must also
conduct operations and keep records in accordance with the regulations
in this part. Where operations by alternating proprietors will be
limited to parts of the plant, the descriptions required to be
submitted with each proprietor's application for registration under
Sec. 19.73(a)(8) must additionally illustrate the following:
(1) The areas, rooms, or buildings, or combination of rooms and/or
buildings, that will alternate between proprietors; and
(2) The means by which the alternated premises will be separated
from any premises that will not be alternated.
* * * * *
0
31. Section 19.142 is amended by:
0
a. Revising paragraph (b);
0
b. Removing the word ``diagrams'' and adding in its place
``description'' in paragraph (c)(3); and
0
c. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.142 Alternate use of premises and equipment for customs
purposes.
* * * * *
(b) Qualification. Before alternating the plant premises for
customs purposes, the proprietor must file and receive approval of the
necessary registration, application and bonds as required by this part.
The description required to be submitted with the proprietor's
application for registration under Sec. 19.73(a)(8) must additionally
illustrate the following:
(1) The areas, rooms, or buildings, or combination of rooms and/or
buildings, that will alternate between proprietors; and
(2) The means by which the alternated premises will be separated
from any premises that will not be alternated.
* * * * *
0
32. Section 19.143 is amended by:
0
a. Revising paragraph (b)(2); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.143 Alternation for other purposes.
* * * * *
(b) * * *
(2) Description. For all alternate uses, the proprietor must
provide additional versions of the description required under Sec.
19.73(a)(8) describing or showing the premises as they will exist, both
during extension and curtailment, and clearly depicting all buildings,
floors, rooms, areas, equipment that are to be subject to alternation,
in their relative operating sequence.
* * * * *
0
33. Section 19.192 is amended by:
0
a. Revising paragraph (e);
0
b. Removing paragraph (f);
0
c. Redesignating paragraph (g) as paragraph (f); and
0
d. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.192 Security.
* * * * *
(e) Locks. Locks of a class and construction that is usual and
customary in the industry to prevent unauthorized access to, and theft
of, commercial property must be used to secure:
(1) Outdoor tanks used to store spirits, or an enclosure around
such tanks;
(2) Indoor tanks used to store spirits, or the door from which
access may be gained from the outside to the rooms or buildings in
which such tanks are housed; and
(3) Any doors from which access may be gained from the outside to
rooms or buildings containing spirits stored in portable bulk
containers.
* * * * *
[[Page 68588]]
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34. Section 19.574 is revised to read as follows:
Sec. 19.574 Availability of records.
The records required by this part must be available for inspection
by the appropriate TTB officer during normal business hours. Any
proprietor keeping records at a location other than the distilled
spirits plant where operations or transactions occur must make them
available at the distilled spirits plant premises upon request of the
appropriate TTB officer; however, the TTB officer may, in his or her
discretion, allow the proprietor to supply copies (including electronic
copies) of such records instead of the originals.
0
35. Section 19.643 is revised to read as follows:
Sec. 19.643 Qualification requirements.
(a) General. Before beginning the business of manufacturing vinegar
by the vaporizing process, a person must make written application to
the appropriate TTB officer and receive approval of the application
from TTB. The application must include:
(1) The applicant's name and principal business address (including
the plant address if different from the applicant's principal business
address);
(2) A description of the plant premises;
(3) A description of the operations to be conducted; and
(4) A description of each still, including the name and address of
the owner, the kind of still and its capacity, and the purpose for
which the still was set up.
(b) Specifications of plant description. (1) The description
required by paragraph (a)(2) of this section may be in narrative form
or diagram form, and must describe or illustrate the following:
(i) The overall dimensions of the building(s) housing the vinegar
plant;
(ii) The dimensions of the bonded premises and any general
premises;
(iii) Any internal walls establishing the boundaries of the bonded
premises and general premises;
(iv) The external doors of the plant premises; and
(v) Any portions of the plant premises that are outdoors, including
the location of any outdoor tanks.
(2) Photographs further illustrating the elements required under
paragraph (b)(1) of this section must be submitted upon request of the
appropriate TTB officer.
0
36. Section 19.644 is amended by:
0
a. Revising the first sentence; and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.644 Changes after original qualification.
If there is any change in the information that was provided in an
approved application, the proprietor of the vinegar plant must notify
the appropriate TTB officer in writing within 60 days of the change. *
* *
0
37. Section 19.673 is amended by:
0
a. Revising paragraphs (b)(2) and (6);
0
b. Redesignating paragraphs (c) through (e) as paragraph (d) through
(f);
0
c. Adding a new paragraph (c); and
0
d. Removing the parenthetical authority citation at the end of the
section.
The revisions and addition read as follows:
Sec. 19.673 Small plant permit applications.
* * * * *
(b) * * *
(2) A description of the plant premises;
* * * * *
(6) A certification that the plant's construction and security will
be in compliance with Sec. Sec. 19.703 and 19.704.
(c) Specifications of plant description. (1) The description
required by paragraph (b)(2) of this section may be in narrative form
or diagram form, and must describe or illustrate the following:
(i) The overall dimensions of the building(s) housing the alcohol
fuel plant;
(ii) The dimensions of the bonded premises and any general
premises;
(iii) Any internal walls establishing the boundaries of the bonded
and general premises;
(iv) The external doors of the plant premises; and
(v) Any portions of the plant premises that are outdoors, including
the location of any outdoor tanks.
(2) Photographs further illustrating the elements required under
paragraph (c)(1) of this section must be submitted upon request of the
appropriate TTB officer.
* * * * *
0
38. Section 19.675 is amended by:
0
a. Revising paragraphs (b)(2), (6), and (8);
0
b. Redesignating paragraphs (c) through (f) as paragraphs (d) through
(g);
0
c. Adding a new paragraph (c); and
0
d. Removing the parenthetical authority citation at the end of the
section.
The revisions and addition read as follows:
Sec. 19.675 Medium plant permit applications.
* * * * *
(b) * * *
(2) A description of the plant premises;
* * * * *
(6) A certification that the plant's construction and security will
be in compliance with Sec. Sec. 19.703 and 19.704;
* * * * *
(8) Information identifying the principal persons involved in the
management of the business. This identifying information must include
each person's name, address, and title;
* * * * *
(c) Specifications of plant description. (1) The description
required by paragraph (b)(2) of this section may be in narrative form
or diagram form, and must describe or illustrate the following:
(i) The overall dimensions of the building(s) housing the alcohol
fuel plant;
(ii) The dimensions of the bonded premises and any general
premises;
(iii) Any internal walls establishing the boundaries of the bonded
premises and general premises;
(iv) The external doors of the plant premises; and
(v) Any portions of the plant premises that are outdoors, including
the location of any outdoor tanks.
(2) Photographs further illustrating the elements required under
paragraph (c)(1) of this section must be submitted upon request of the
appropriate TTB officer.
* * * * *
0
39. Section 19.676 is amended by:
0
a. Revising paragraphs (b)(2), (6), and (8);
0
b. Redesignating paragraphs (c) through (g) as paragraph (d) through
(h);
0
c. Adding a new paragraph (c); and
0
d. Removing the parenthetical authority citation at the end of the
section.
The revisions and addition read as follows:
Sec. 19.676 Large plant permit applications.
* * * * *
(b) * * *
(2) A description of the plant premises;
* * * * *
(6) A certification that the plant's construction and security will
be in compliance with Sec. Sec. 19.703 and 19.704;
* * * * *
(8) Information identifying the principal persons involved in the
management of the business. This identifying information must include
each person's name, address, and title;
* * * * *
(c) Specifications of plant description. (1) The description
required by
[[Page 68589]]
paragraph (b)(2) of this section may be in narrative form or diagram
form, and must describe or illustrate the following:
(i) The overall dimensions of the building(s) housing the alcohol
fuel plant;
(ii) The dimensions of the bonded premises and any general
premises;
(iii) Any internal walls establishing the boundaries of the bonded
premises and general premises;
(iv) The external doors of the plant premises; and
(v) Any portions of the plant premises that are outdoors, including
the location of any outdoor tanks.
(2) Photographs further illustrating the elements required under
paragraph (c)(1) of this section must be submitted upon request of the
appropriate TTB officer.
* * * * *
0
40. Section 19.677 is amended by:
0
a. Revising paragraphs (a)(2) and (d); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revisions read as follows:
Sec. 19.677 Large plant applications--organizational documents.
* * * * *
(a) * * *
(2) A list of officers and directors with their names and
addresses;
* * * * *
(d) Statement of interest--(1) Sole proprietorships and general
partnerships. In the case of an individual owner or a general
partnership, the applicant must provide the name and address of each
person having an ownership interest in the business and a statement
indicating whether the interest appears in the name of the interested
person or in the name of another person.
(2) Limited liability entities. In the case of a corporation,
limited liability partnership, limited liability company, or other
legal entity in which some or all of the owners have limited personal
liability for the activities of the entity, the applicant must provide
the following information about persons having an ownership interest in
the business:
(i) The names and addresses of persons having a 10 percent or more
ownership interest in each of the classes or types of ownership
interests in the applicant, and the nature and amount of ownership
interest of each person.
(ii) The name of the person in whose name the interest appears. If
the limited liability entity is under actual or legal control of
another limited liability entity, the appropriate TTB officer may
request the same information regarding ownership for the parent limited
liability entity.
(3) Representative. If any interested person named under paragraphs
(d)(1) and (2) of this section is a legal entity other than an
individual, the applicant must also provide the name, title, and city
and state of residence of a representative individual for the entity.
The representative individual must be the individual designated by the
entity to represent the entity's interest in the applicant business or,
in the absence of a designated individual, an owner, chief officer or
manager, or person with similar authority within the entity.
* * * * *
0
41. Section 19.678 is amended by:
0
a. Revising paragraph (a); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.678 Criteria for issuance of permit.
* * * * *
(a) The applicant (including, in the case of a limited liability
entity, any of its officers, directors, or persons holding a 10 percent
or more ownership interest in any of the classes or types of ownership
of the applicant) is, by reason of business experience, financial
standing, or trade connections, not likely to maintain operations in
compliance with 26 U.S.C. chapter 51, or the regulations in this
chapter;
* * * * *
Sec. 19.683 [Amended]
0
42. Section 19.683 is amended by:
0
a. Removing the phrase ``30 days'' each place it appears and adding in
its place ``60 days''; and
0
b. Removing the parenthetical authority citation at the end of the
section.
0
43. Section 19.684 is amended by:
0
a. Revising paragraph (b); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.684 Automatic termination of permits.
* * * * *
(b) Limited liability entities. In the case of a limited liability
entity (i.e., a corporation, limited liability partnership, limited
liability company, or other legal entity in which some or all of the
owners have limited personal liability for the activities of the
entity) holding a permit issued under this subpart, if actual or legal
control of such limited liability entity changes, directly or
indirectly, whether by reason of a change in ownership or control (in
the permittee limited liability entity or any other limited liability
entity), by operation of law, or in any other manner, the permittee
must file an application for a new permit within 60 days of the change.
If an application for a new permit is not filed within 60 days of the
change, the outstanding permit will automatically terminate. If an
application for a new permit is filed within the 60-day period
prescribed in the preceding sentences, the outstanding permit will
remain in effect until TTB takes final action on the application. When
TTB takes final action on the application, the outstanding permit will
automatically terminate.
Sec. 19.686 [Amended]
0
44. Section 19.686 is amended by:
0
a. Removing the phrase ``30 days'' and adding in its place ``60 days''
in the first sentence; and
0
b. Removing the parenthetical authority citation at the end of the
section.
0
45. Section 19.687 is revised to read as follows:
Sec. 19.687 Changes in officers, directors, members, managers, or
principal persons.
If there is a change in the list of officers, directors, members,
managers, or other principal persons furnished under the provisions of
Sec. 19.675, Sec. 19.676, or Sec. 19.677, the proprietor must submit
a letterhead notice to the appropriate TTB officer within 60 days of
the change. The letterhead notice must identify each change and must
include the identifying information for each new officer, director,
member, manager, or other principal person required by Sec. 19.675,
Sec. 19.676, or Sec. 19.677.
Sec. 19.691 [Amended]
0
46. Section 19.691 is amended by:
0
a. Removing the phrase ``30 days'' and adding in its place ``60 days'';
and
0
b. Removing the parenthetical authority citation at the end of the
section.
0
47. Section 19.692 is amended by:
0
a. Revising paragraph (b)(2); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 19.692 Qualifying for alternating proprietorship.
* * * * *
(b) * * *
(2) Additional versions of the description required under Sec.
19.673(b)(2), Sec. 19.675(b)(2), or Sec. 19.676(b)(2) describing or
illustrating the arrangement for the alternation of
[[Page 68590]]
the premises. Where operations by alternating proprietors are limited
to parts of an alcohol fuel plant, the description or illustration must
include the areas, rooms, or buildings, or combination of rooms and/or
buildings, that will alternate between proprietors. The description or
illustration must also include the means by which the alternated
premises will be separated from any premises that will not be
alternated. A description or illustration must be submitted for each
arrangement under which the premises will be operated;
* * * * *
Sec. 19.761 [Amended]
0
48. Section 19.761 is amended by removing the entries for Sec. Sec.
19.76, 19.77, 19.121, 19.122, and 19.123 from the table in paragraph
(b).
PART 20--DISTRIBUTION AND USE OF DENATURED ALCOHOL AND RUM
0
49. The authority citation for part 20 continues to read as follows:
Authority: 26 U.S.C. 5001, 5206, 5214, 5271-5275, 5311, 5552,
5555, 5607, 6065, 7805.
Sec. 20.42 [Amended]
0
50. Section 20.42 is amended by removing the phrase ``serial number,''
in paragraph (a)(8).
0
51. Section 20.45 is amended by revising paragraph (c) to read as
follows:
Sec. 20.45 Organizational documents.
* * * * *
(c) Statement of interest--(1) Sole proprietorships and general
partnerships. In the case of an individual owner or a general
partnership, the applicant must provide the name and address of each
person having an ownership interest in the business and a statement
indicating whether the interest appears in the name of the interested
person or in the name of another person.
(2) Limited liability entities. In the case of a corporation,
limited liability partnership, limited liability company, or other
legal entity in which some or all of the owners have limited personal
liability for the activities of the entity, the applicant must provide
the following information about persons having an interest in the
business:
(i) The names and addresses of persons having a 10 percent or more
ownership interest in each of the classes or types of ownership
interest of the applicant, and the nature and amount of ownership
interest of each person.
(ii) The name of the person in whose name the interest appears. If
the limited liability entity is under actual or legal control of
another limited liability entity, the appropriate TTB officer may
request the same information regarding ownership for the parent limited
liability entity.
(3) Representative. If any interested person named under paragraphs
(c)(1) and (2) of this section is a legal entity other than an
individual, the applicant must also provide the name, title, and city
and state of residence of a representative individual for the entity.
The representative individual must be the individual designated by the
entity to represent the entity's interest in the applicant business or,
in the absence of a designated individual, an owner, chief officer or
manager, or person with similar authority within the entity.
0
52. Section 20.56 is amended by:
0
a. Removing the phrase ``30 days'' and adding in its place ``60 days''
in paragraph (a)(1); and
0
b. Revising paragraphs (c) heading and (c)(3).
The revisions read as follows:
Sec. 20.56 Changes affecting applications and permits.
* * * * *
(c) Changes in officers, directors, and ownership interests. * * *
(3) Ownership interests. In lieu of reporting all changes, within
60 days, to the list of persons with an ownership interest furnished
under the provisions of Sec. 20.45(c), a permittee may, upon filing
written notice to the appropriate TTB officer and establishing a
reporting date, file an annual notice of changes. The notice of changes
in ownership interest holders does not apply if the sale or transfer of
ownership interest(s) results in a change in ownership or control which
is required to be reported under Sec. 20.57.
* * * * *
0
53. Section 20.57 is amended by revising paragraph (b) to read as
follows:
Sec. 20.57 Automatic termination of permits.
* * * * *
(b) Limited liability entities. In the case of a limited liability
entity (i.e., a corporation, limited liability partnership, limited
liability company, or other legal entity in which some or all of the
owners have limited personal liability for the activities of the
entity) holding a permit issued under this part, if actual or legal
control of such limited liability entity changes, directly or
indirectly, whether by reason of a change in ownership or control (in
the permittee limited liability entity or any other limited liability
entity), by operation of law, or in any other manner, the permittee
must file an application for a new permit within 60 days of the change.
If an application for a new permit is not filed within 60 days of the
change, the outstanding permit will automatically terminate. If an
application for a new permit is filed within the 60-day period
prescribed above, the outstanding permit will remain in effect until
TTB takes final action on the application. When TTB takes final action
on the application, the outstanding permit will automatically
terminate.
* * * * *
0
54. Section 20.61 is revised to read as follows:
Sec. 20.61 Change in trade name.
In the event of any change in a trade name of a permittee, or, in
the event a permittee desires to engage in operations under an
additional trade name, the permittee must first file a letterhead
notice with the appropriate TTB officer listing the names and the
offices where they are registered.
(Approved by the Office of Management and Budget under control
number 1513-0061)
0
55. Section 20.267 is amended by revising the section heading and
paragraphs (b) and (c) to read as follows:
Sec. 20.267 Filing and retention of records.
* * * * *
(b) File all records and copies of reports at the premises where
the operations are conducted. A permittee may keep the required records
at a location other than the permitted premises, if he or she has first
provided a letterhead notice to the appropriate TTB officer identifying
the location where the records are to be kept.
(c) Make the files of records and copies of reports available for
inspection by the appropriate TTB officer during regular business
hours. Any permittee keeping records at a location other than the
premises where operations are conducted must make them available at
such premises upon request of the appropriate TTB officer; however, the
TTB officer may, at his or her discretion, allow the permittee to
supply copies (including electronic copies) of such records instead of
the originals.
PART 22--DISTRIBUTION AND USE OF TAX-FREE ALCOHOL
0
56. The authority citation for part 22 continues to read as follows:
Authority: 26 U.S.C. 5001, 5121, 5123, 5206, 5214, 5271-5275,
5311, 5552, 5555, 6056, 6061, 6065, 6109, 6151, 6806, 7805; 31
U.S.C. 9304, 9306.
[[Page 68591]]
Sec. 22.42 [Amended]
0
57. Section 22.42 is amended by removing the phrase ``serial number,''
in paragraph (a)(8).
0
58. Section 22.45 is amended by revising paragraph (c) to read as
follows:
Sec. 22.45 Organizational documents.
* * * * *
(c) Statement of interest--(1) Sole proprietorships and general
partnerships. In the case of an individual owner or a general
partnership, the applicant must provide the name and address of each
person having an ownership interest in the business and a statement
indicating whether the interest appears in the name of the interested
person or in the name of another person.
(2) Limited liability entities. In the case of a corporation,
limited liability partnership, limited liability company, or other
legal entity in which some or all of the owners have limited personal
liability for the activities of the entity, the applicant must provide
the following information about persons having an interest in the
business:
(i) The names and addresses of persons having a 10 percent or more
ownership interest in each of the classes or types of ownership
interest of the applicant, and the nature and amount of ownership
interest of each person.
(ii) The name of the person in whose name the interest appears. If
the limited liability entity is under actual or legal control of
another limited liability entity, the appropriate TTB officer may
request the same information regarding ownership for the parent limited
liability entity.
(3) Representative. If any interested person named under paragraphs
(c)(1) and (2) of this section is a legal entity other than an
individual, the applicant must also provide the name, title, and city
and state of residence of a representative individual for the entity.
The representative individual must be the individual designated by the
entity to represent the entity's interest in the applicant business or,
in the absence of a designated individual, an owner, chief officer or
manager, or person with similar authority within the entity.
0
59. Section 22.57 is amended by:
0
a. Removing the phrase ``30 days'' and adding in its place ``60 days''
each place it appears in paragraph (a)(1).
0
b. Revising paragraphs (c) heading and (c)(3).
The revisions read as follows:
Sec. 22.57 Changes affecting applications and permits.
* * * * *
(c) Changes in officers, directors, and ownership interests. * * *
(3) Ownership interests. In lieu of reporting all changes, within
60 days, to the list of persons with an ownership interest furnished
under the provisions of Sec. 22.45(c), a permittee may, upon filing
written notice to the appropriate TTB officer and establishing a
reporting date, file an annual notice of changes. The notice of changes
in ownership interest holders does not apply if the sale or transfer of
ownership interest(s) results in a change in ownership or control which
is required to be reported under Sec. 22.58.
* * * * *
0
60. Section 22.58 is amended by revising paragraph (b) and the
parenthetical Office of Management and Budget control number statement
to read as follows:
Sec. 22.58 Automatic termination of permits.
* * * * *
(b) Limited liability entities. In the case of a limited liability
entity (i.e., a corporation, limited liability partnership, limited
liability company, or other legal entity in which some or all of the
owners have limited personal liability for the activities of the
entity) holding a permit issued under this part, if actual or legal
control of such limited liability entity changes, directly or
indirectly, whether by reason of a change in ownership or control (in
the permittee limited liability entity or any other limited liability
entity), by operation of law, or in any other manner, the permittee
must file an application for a new permit within 60 days of the change.
If an application for a new permit is not filed within 60 days of the
change, the outstanding permit will automatically terminate. If an
application for a new permit is filed within the 60-day period
prescribed above, the outstanding permit will remain in effect until
TTB takes final action on the application. When TTB takes final action
on the application, the outstanding permit will automatically
terminate.
* * * * *
(Approved by the Office of Management and Budget under control
number 1513-0060)
0
61. Section 22.62 is revised to read as follows:
Sec. 22.62 Change in trade name.
In the event of any change in a trade name of a permittee, or, in
the event a permittee desires to engage in operations under an
additional trade name, the permittee must first file a letterhead
notice with the appropriate TTB officer listing the new names and the
offices where they are registered.
(Approved by the Office of Management and Budget under control
number 1513-0060)
0
62. Section 22.164 is amended by revising paragraph (b) and adding
paragraph (c) to read as follows:
Sec. 22.164 Filing and retention of records.
* * * * *
(b) Maintain all records at the permitted premises. A permittee may
keep the required records at a location other than the permitted
premises, if he or she has first provided a letterhead notice to the
appropriate TTB officer identifying the location where the records are
to be kept.
(c) Make the files of records and copies of claims available for
inspection by the appropriate TTB officer during regular business
hours. Any permittee keeping records at a location other than the
permitted premises must make them available at the permitted premises
upon request of the appropriate TTB officer; however, the TTB officer
may, at his or her discretion, allow the permittee to supply copies
(including electronic copies) of such records instead of the originals.
PART 26--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN
ISLANDS
0
63. The authority citation for part 26 continues to read as follows:
Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 5007, 5008, 5010,
5041, 5051, 5061, 5111-5114, 5121, 5122-5124, 5131-5132, 5207, 5232,
5271, 5275, 5301, 5314, 5555, 6001, 6109, 6301, 6302, 6804, 7101,
7102, 7651, 7652, 7805; 27 U.S.C. 203, 205; 31 U.S.C. 9301, 9303,
9304, 9306.
0
64. Section 26.174 is amended by revising paragraphs (a) and (e) and
the parenthetical Office of Management and Budget control number
statement to read as follows:
Sec. 26.174 Records.
(a) General. Every person intending to file a claim for drawback on
eligible articles brought into the United States from Puerto Rico must
keep permanent records of the data elements required by this section.
* * * * *
(e) Retention and availability of records. (1) Each drawback
claimant must retain for a period of not less than three years all
records required by this subpart, all commercial invoices or shipping
documents, and all bills of lading received evidencing receipt and tax
determination of the spirits. In addition, a copy of each approved
formula returned to the manufacturer of eligible articles must be
retained for not less than three years from the date the
[[Page 68592]]
claimant files their last claim for drawback under the formula.
(2) The records required under this subpart must be maintained at
the business premises for which the claim is filed, or at any other
location provided that the claimant first provides a letterhead notice
to the appropriate TTB officer of the location where the records are to
be kept. Records must be available for inspection by any appropriate
TTB officer during business hours. If the records are stored at a
location other than the business premises for which the claim is filed,
they must be made available at such premises upon request of the
appropriate TTB officer; however, the TTB officer may, at his or her
discretion, allow copies (including electronic copies) of such records
to be provided instead of the originals.
(Approved by the Office of Management and Budget under control
number 1513-0089)
0
65. Section 26.275 is amended by:
0
a. Revising paragraph (a); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 26.275 Filing.
(a) All records and reports required by this part will be
maintained separately, by transaction or reporting date, at the
importer's place of business. An importer may keep the required records
and reports at an alternative location other than his or her place of
business, if he or she has first provided a letterhead notice to the
appropriate TTB officer identifying the location where the records are
to be kept. Any importer keeping records at a location other than the
importer's place of business must make them available at the importer's
place of business upon request of the appropriate TTB officer; however,
the TTB officer may, at his or her discretion, allow the importer to
supply copies (including electronic copies) of such records instead of
the originals. The appropriate TTB officer may require an importer to
maintain the required records and reports at his or her place of
business if the alternative location is found to cause undue
inconvenience to appropriate TTB or Customs officers desiring to
examine the files or cause delay in the timely submission of documents.
* * * * *
0
66. Section 26.310 is amended by revising paragraphs (a) and (e) and
the parenthetical Office of Management and Budget control number
statement to read as follows:
Sec. 26.310 Records.
(a) General. Every person intending to file claim for drawback on
eligible articles brought into the United States from the Virgin
Islands must keep permanent records of the data elements required by
this section.
* * * * *
(e) Retention and availability of records. (1) Each drawback
claimant must retain for a period of not less than three years all
records required by this subpart, all commercial invoices or shipping
documents, and all bills of lading received evidencing receipt and tax
determination of the spirits. In addition, a copy of each approved
formula returned to the manufacturer of eligible articles must be
retained for not less than three years from the date the claimant files
their last claim for drawback under the formula.
(2) The records required under this subpart must be maintained at
the business premises for which the claim is filed, or at any other
location provided that the claimant first provides a letterhead notice
to the appropriate TTB officer of the location where the records are to
be kept. Records must be available for inspection by any appropriate
TTB officer during business hours. If the records are stored at a
location other than the business premises for which the claim is filed,
they must be made available at such premises upon request of the
appropriate TTB officer; however, the TTB officer may, at his or her
discretion, allow copies (including electronic copies) of such records
to be provided instead of the originals.
(Approved by the Office of Management and Budget under control
number 1513-0089)
PART 27--IMPORTATION OF DISTILLED SPIRITS, WINES, AND BEER
0
67. The authority citation for part 27 continues to read as follows:
Authority: 5 U.S.C. 552(a), 19 U.S.C. 81c, 1202; 26 U.S.C. 5001,
5007, 5008, 5010, 5041, 5051, 5054, 5061, 5121, 5122-5124, 5201,
5205, 5207, 5232, 5273, 5301, 5313, 5382, 5555, 6109, 6302, 7805.
0
68. Section 27.136 is amended by:
0
a. Revising paragraph (a) and the parenthetical Office of Management
and Budget control number statement; and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revisions read as follows:
Sec. 27.136 Filing.
(a) All records and reports required by this part will be
maintained separately, by transaction or reporting date, at the
importer's place of business. An importer may keep the required records
and reports at an alternative location other than his or her place of
business, if he or she has first provided a letterhead notice to the
appropriate TTB officer identifying the location where the records are
to be kept. Any importer keeping records at a location other than the
importer's place of business must make them available at the importer's
place of business upon request of the appropriate TTB officer; however,
the TTB officer may, at his or her discretion, allow the importer to
supply copies (including electronic copies) of such records instead of
the originals. The appropriate TTB officer may require an importer to
maintain the required records and reports at his or her place of
business if the alternative location is found to cause undue
inconvenience to appropriate TTB or Customs officers desiring to
examine the files or cause delay in the timely submission of documents.
* * * * *
(Approved by the Office of Management and Budget under control
number 1513-0088)
PART 28--EXPORTATION OF ALCOHOL
0
69. The authority citation for part 28 continues to read as follows:
Authority: 5 U.S.C. 552(a); 19 U.S.C. 81c, 1202; 26 U.S.C. 5001,
5007, 5008, 5041, 5051, 5054, 5061, 5121, 5122, 5201, 5205, 5207,
5232, 5273, 5301, 5313, 5555, 6109, 6302, 7805; 27 U.S.C. 203, 205;
44 U.S.C. 3504(h).
0
70. Section 28.45 is revised to read as follows:
Sec. 28.45 Retention of records.
File copies of forms required by this part to be retained by any
proprietor or claimant, and all records, documents, or copies of
records and documents supporting such forms, must be preserved by such
proprietor or claimant for a period of not less than two years, and
during such period must be available for inspection by any appropriate
TTB officer at the proprietor or claimant's place of business. A
proprietor or claimant may keep the required records at a location
other than his or her place of business if he or she has first provided
a letterhead notice to the appropriate TTB officer identifying the
location where the records are to be kept. The proprietor or claimant
must nonetheless make the records available at the permitted premises
upon request of the appropriate TTB officer; however, the TTB officer
may, at his or her discretion, allow the proprietor or claimant to
supply copies (including
[[Page 68593]]
electronic copies) of such records instead of the originals.
(Approved by the Office of Management and Budget under control
number 1513-0075)
PART 31--ALCOHOL BEVERAGE DEALERS
0
71. The authority citation for part 31 continues to read as follows:
Authority: 26 U.S.C. 5001, 5002, 5121, 5122-5124, 5131, 5132,
5206, 5207, 5273, 5301, 5352, 5555, 5603, 5613, 5681, 5687, 6061,
6065, 6071, 6091, 6103, 6109, 6723, 6724, 7805.
0
72. Section 31.114 is amended by:
0
a. Removing the word ``true'' and adding in its place ``legal'' in
paragraph (b)(1);
0
b. Revising paragraph (b)(8); and
0
c. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 31.114 Completion of registration form.
* * * * *
(b) * * *
(8) Ownership and control information. This consists of the name,
position, and residence address of every owner of the business and of
every person having power to control its management and policies with
respect to the activity subject to registration. ``Owner of the
business'' includes every partner if the dealer is a partnership and,
in the case of a limited liability entity, any of its officers,
directors, or persons holding a 10 percent or more ownership interest
in any of the classes or types of ownership of the applicant. However,
the ownership and control information required by this paragraph (b)(8)
need not be stated if the same information has been previously provided
to TTB and that previously provided information is still current.
* * * * *
0
73. Section 31.132 is revised to read as follows:
Sec. 31.132 Change in name.
(a) Legal name. In the event of any change in the name of the
individual, firm, corporation, or other entity registered as a dealer
at a given location, the dealer must complete an amended registration
and submit it on or before the next July 1.
(b) Trade name. In the event of any change in a trade name of a
dealer registered at a given location, or in the event a dealer desires
to engage in operations under an additional trade name at a given
location, the dealer must first file a letterhead notice with the
appropriate TTB officer listing the new names and the offices where
they are registered.
Sec. 31.138 [Amended]
0
74. Section 31.138 is amended by removing the phrase ``30 days'' and
adding ``60 days'' in its place.
0
75. Section 31.152 is revised to read as follows:
Sec. 31.152 Requirements as to wines and beer.
(a) General. Every wholesale dealer in liquors who receives wines,
or wines and beer, and every wholesale dealer in beer must keep a
complete record showing the quantities of wine and beer received, from
whom the wine and beer were received, and the dates of receipt. This
record, which must be kept for a period of not less than three years as
prescribed in Sec. 31.191, must consist of all purchase invoices or
bills covering wines and beer received or, at the option of the dealer,
a book record containing all of the required information. Wholesale
dealers are not required to prepare or submit reports to the
appropriate TTB officer of transactions relating to wines and beer.
(b) Availability of records. The records required under this
subpart must be kept at the dealer's place of business. A dealer may
keep the required records at a location other than his or her place of
business premises, if he or she has first provided a letterhead notice
to the appropriate TTB officer identifying the location where the
records are to be kept. The dealer must make the files of records and
copies of reports available for inspection by the appropriate TTB
officer during regular business hours. Any dealer keeping records at a
location other than his or her place of business must make them
available at the his or her place of business upon request of the
appropriate TTB officer; however, the TTB officer may, at his or her
discretion, allow the dealer to supply copies (including electronic
copies) of such records instead of the originals.
(Approved by the Office of Management and Budget under control
number 1513-0065.)
0
76. Section 31.172 is revised to read as follows:
Sec. 31.172 Place of filing.
Records of receipt and disposition and monthly summary reports
required by Sec. Sec. 31.155, 31.156, and 31.160 must be maintained at
the dealer's place of business. A dealer may keep the required records
at a location other than his or her place of business premises, if he
or she has first provided a letterhead notice to the appropriate TTB
officer identifying the location where the records are to be kept. Any
dealer keeping records at a location other than his or her place of
business must make them available at his or her place of business upon
request of the appropriate TTB officer; however, the TTB officer may,
at his or her discretion, allow the dealer to supply copies (including
electronic copies) of such records instead of the originals.
0
77. Section 31.181 is amended by:
0
a. Revising paragraph (a); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:
Sec. 31.181 Requirements for retail dealers.
(a) Records of receipt. All retail dealers must keep at their place
of business complete records showing the quantities of all distilled
spirits, wines, and beer received, from whom the distilled spirits,
wines, and beer were received, and the dates of receipt. Records of
receipts must consist of all purchase invoices or bills covering
distilled spirits, wines, and beer received, or, at the option of the
retail dealer, a book record containing all of the required
information. A retail dealer may keep the required records at a
location other than his or her place of business premises, if he or she
has first provided a letterhead notice to the appropriate TTB officer
identifying the location where the records are to be kept. Any retailer
dealer keeping records at a location other than his or her place of
business must make them available at the his or her place of business
upon request of the appropriate TTB officer; however, the TTB officer
may, at his or her discretion, allow the dealer to supply copies
(including electronic copies) of such records instead of the originals.
* * * * *
Signed: November 19, 2021.
Mary G. Ryan,
Administrator.
Approved: November 19, 2021.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade and Tariff Policy.
[FR Doc. 2021-25721 Filed 12-2-21; 8:45 am]
BILLING CODE 4810-31-P