Rules & Regulations of the State of Tennessee
Title 1320 - Revenue
Subtitle 1320-04 - Miscellaneous Tax Division
Chapter 1320-04-06 - Local Option Liquor Rules
Section 1320-04-06-.01 - IDENTIFICATION STAMPS

Universal Citation: TN Comp Rules and Regs 1320-04-06-.01

Current through September 24, 2024

(1) Types of Identification Stamps.

(a) Identification stamps, referred to hereinafter, shall for the purpose or these rules be deemed to be those identification stamps defined in subparagraph (b) and required to be affixed to retail containers of distilled spirits only. Under provisions of T.C.A. § 57-3-303(h), it is hereby provided that identification stamps shall not be required to be affixed to retail containers of wine.

(b) For the purposes of these rules, identification stamps shall mean one of the following:
1. Video Jet/Laser Jet shall mean a permanent printing or etching of the word TENNESSEE, TENN. or TN. in indelible ink upon each retail container of distilled spirits. Said word TENNESSEE, TENN. or TN. shall appear in capital letters on the surface of the container opposite the manufacturer's label.

2. Overprint shall mean a printing of the word TENNESSEE, TENN. or TN. in indelible ink upon the Federal Strip Stamp so that the word TENNESSEE, TENN. or TN. appears on both sides and the top of the Federal Strip Stamp. In the event the Federal Strip Stamp is discontinued the word TENNESSEE, TENN. or TN. will appear on both sides of the neck of the container and on the top of the cap printed in indelible ink on a strip designed (and approved by the Department of Revenue) for this purpose. Provided, however, the printing of the word TENNESSEE, TENN. or TN. may not be required on the cap if the strip is approved by the Department of Revenue.

3. Decal shall mean those identification stamps issued by the Department of Revenue upon the written request of a licensed Tennessee wholesaler of alcoholic beverages. One decal shall be affixed to the side of each container which exposes the label containing the brand names, but in no event shall any information carried on the label or the Federal Strip Stamp be covered up by this identification stamp.

(2) Approval and Requisition of Identification Stamps.

(a) Every Tennessee licensed wholesaler of alcoholic beverages who elects to use either the video jet/laser jet or overprint method of affixing identification stamps to containers of distilled spirits, which he has been authorized to distribute by sale or gift within this state, shall request permission from the Department of Revenue for the use of such identification stamps. Such request shall be in writing and contain a statement from the manufacturer to the wholesaler indicating the type of identification stamp to be used and a sample of the identification stamp. The Commissioner may, in his discretion, approve or disapprove such request.

(b) A Tennessee licensed manufacturer or distiller may likewise elect to use either the video jet/laser jet or overprint method of affixing identification stamps to containers of its own products as may be needed for its own use by requesting approval from the Department of Revenue for the use of such identification stamp. Such request will indicate the type of identification stamp to be used, a sample of the identification stamp and a statement indicating on which of its products said identification stamp will be affixed.

(c) Every Tennessee licensed wholesaler of alcoholic beverages shall be privileged to requisition from the Department of Revenue decals required to be affixed to containers of distilled spirits which he has been authorized to distribute by sale or gift within the state. The request must be in writing and accompanied by purchase orders documenting the amount of decals requested. The Commissioner may, in his discretion, permit the issuance of additional decal upon receipt of such written request.

(d) A Tennessee licensed manufacturer or distiller of distilled spirits shall likewise be privileged to requisition necessary decals to be affixed to containers of its own products as may be needed for its own use in an amount not to exceed one hundred (100) cases per month. Except as hereinafter provided, not more than two thousand (2,000) decals may be requisitioned during any one month to be affixed to a distiller's one hundred (100) case allowance. Should any manufacturer or distiller have need for additional decals during any month, such additional decals may, in the discretion of the Commissioner, be issued upon written request setting out the reason for such increase requirements. Reports shall be filed monthly by such manufacturer or distiller on forms prescribed by the Commissioner of Revenue in which shall be set out the number and disposition of all decals used. Tax due on such products as well as any other alcoholic beverage not of his own manufacturer which he disposes of for his own use shall be indicated in each report and payment thereof shall accompany each such report.

(e) Successful bidders on contraband alcoholic beverages sold by the Department of General Services shall, before taking possession of such beverages, pay the applicable alcoholic beverage tax to the Department of Revenue and in addition shall requisition decals to be affixed to containers of distilled spirits so purchased.

(3) Affixation of Identification Stamps.

(a) It shall be the duty of each wholesaler to affix, or have affixed, one of the above defined identification stamps to each container of distilled spirits before the same shall be sold or offered for distribution, gift or sale; provided, that the decals shall be affixed in every instance within seventy-two (72) hours after receipt of such products by the wholesaler, including merchandise designated for storage in a bonded warehouse; provided further, however, the wholesaler is authorized to appoint a manufacturer or importer as his agent to affix video jet/laser jet or overprint identification stamps to containers of alcoholic beverages requiring such identification stamps before delivery or shipment into this state.

(b) The wholesaler is further authorized to appoint a manufacturer or importer as his agent to affix decals provided by the department and furnished by the wholesaler to containers of alcoholic beverages requiring such decals before delivery or shipment into this state.

(4) Restrictions on Use of Decals.

(a) Each wholesaler who requisitions decals is required to use all such decals upon distilled spirits purchased and sold by his firm and no wholesaler may exchange, lend or give away any such decals.

(b) Each wholesaler shall be accountable for the decals he requisitions, or receives affixed to merchandise purchased from other wholesalers, and shall maintain accurate records to properly account for each decal from the time of receipt until the decal is affixed to containers of distilled spirits or otherwise disposed of through legitimate channels of trade. The procedure for handling and accounting for decals mutilated, destroyed, lost or, otherwise affixed to merchandise for distribution within the state by licensees shall be as follows:
1. Mutilated but identifiable and unused decals in the hands of the wholesaler shall be returned to the Department of Revenue by the wholesaler before a reduction in decal inventory is allowed.

2. Reduction in decal inventory for decals destroyed or cancelled at a distillery shall be accompanied by affidavit from each of two persons, who must be approved in advance by the Commissioner of Revenue, in which is set out the following:
(i) the decals were identifiable and were destroyed or cancelled;

(ii) the date such decals were destroyed or cancelled;

(iii) the conditions necessitating the destruction or cancellation of decals;

(iv) the quantity and disposition of such decals destroyed.

3. Reduction in decal inventory for decals affixed to containers of distilled spirits damaged or broken while in transit shall be supported by:
(i) affidavit from the carrier or person transporting such beverages in which is set out the type of product, the quantity and size of containers, the disposition made of the damaged merchandise, and manner in which identifiable Tennessee decals affixed to damaged or broken merchandise were destroyed or cancelled;

(ii) evidence of payment, if any, to the wholesaler by common carrier insurance company, or otherwise, for such breakage or loss;

(iii) affidavit by consignor making such shipment that Tennessee decals had been affixed to the containers prior to shipment and in which quantity.

4. Reduction in decal inventory for decals affixed to containers of distilled spirits which are returned to the distillery, importer or bottler, or are exported by a Tennessee wholesaler shall be allowed only when conditions in rule 1320-4-6.02 (4) (b) are met.

5. Reduction in decal inventory for decals affixed to containers of distilled spirits which have been broken, damaged or deteriorated in the wholesaler's warehouse shall be allowed only when the conditions in rule 0100-3-.15(3) or rule 1320-4-6-.02(4) (c) are met.

6. Further reduction in decal inventory shall be allowed when decals have been affixed to merchandise which is located in the place of business of the wholesaler as a part of his stock regularly kept for sale at such place of business and the products, or part thereof, or the decals affixed thereto, have been accidentally damaged or destroyed by fire or other acts of nature beyond his control, which renders such products unsalable, provided it can be reasonably determined by the Department of Revenue that a specific loss has occurred.

7. Decal inventory may further be reduced in the discretion of the Commissioner, whether or not affixed to products, when decals have been lost in the course of transmittal to or from a supplier, or when stolen from licensed premises, upon affidavit from the wholesaler in which all known facts are set out.

(c) The Commissioner may, at his discretion, provide a format for use by the wholesaler to insure procedure for accounting for the decals.

Authority: T.C.A. §§ 57-3-303, 57-3-307, 57-132, 57-136, 67-101 and 67-1-102.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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