Rev. Ruling 71-208

Under the requirements of 26 CFR Part 252, persons exporting liquor or specially denatured distilled spirits must obtain, on internal revenue forms covering the exportation, certification of lading for export and clearance of the exporting conveyance in order to gain drawback of tax paid on the liquors or relief from liability for the tax. However, such certification in the case of shipments to American possessions is not always obtainable because amendment of 15 CFR Part 30, Commerce and Foreign Trade Regulation, has eliminated requirements with certain exceptions for the Shipper's Export Declaration (and manifests). Also, for other reasons, implementation of certification in the case of shipments to foreign nations is subject to delay.

In view thereof, exporters have asked the Internal Revenue Service whether other evidence of exportation of liquors to so-called possessions of the United States and also to foreign nations may be submitted in lieu of certification of lading and clearance.

Section 5005 of the Internal Revenue Code of 1954 provides that persons liable for the tax on distilled spirits withdrawn free of tax or without payment of tax shall be relieved of such liability at the time the spirits are withdrawn from bond or exported, respectively. In addition, the export bonds given under section 5175(a) of the Code shall be cancelled or credited and the bonds liable under section 5175(b) credited on submission of required evidence, records, and certification.

Section 5055 of the Code authorizes drawback of tax paid on beer brewed or produced in the United States and section 5062(b) authorizes drawback of tax paid on distilled spirits or wines manufactured or produced in the United States upon presentation of required evidence of payment or determination of tax and exportation.

Held, in lieu of certificate of lading and clearance required by 26 CFR Part 252 and instructions on pertinent internal revenue forms covering exportation to American possessions, Assistant Regional Commissioners, Alcohol, Tobacco and Firearms, may accept a certified copy of an ocean bill of lading or proof of actual exportation such as a statement signed by an official of such possession attesting to actual landing. Additionally, a statement (signed under penalties of perjury) from the "shipper-exporter" that the liquors or specially denatured alcohol were exported will be required.

Regarding shipments to foreign nations (except shipments by way of customs warehouses, foreign-trade zones, and Armed Forces of the United States), exporters may apply to the Assistant Regional Commissioner of the region from which shipment for ex port will be made for authority to submit other evidence of exportation in lieu of customs certification of lading and clearance. Any such application would be expected to show good cause for the requested alternate procedure and to indicate the nature of the evidence of exportation which would be submitted such as certified copies of ocean bills of lading or proof of actual exportation. Statements, as above, from "shipper-exporters" would also be required. The Assistant Regional Commissioner will advise the exporter whether an application may be approved, what evidence of exportation would be acceptable and as to any change in normal distribution requirements for internal revenue forms covering the exportation.

26 U.S.C. 7805; 26 CFR 301.7805-1

Note: This Rev. Ruling 71-208 modified by 72-300.