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Ruling 81-8

ATF Ruling 81-8

The Bureau of Alcohol, Tobacco and Firearms has been requested to consider whether spent vanilla beans may be treated with substances or materials other than those enumerated in Revenue Ruling 55-512 , C.B. 1955-2, 699 (Internal Revenue), prior to the nonbeverage manufacturer's disposition of such spent beans.

Revenue Ruling 55-512 provided only the following ways of disposing of spent vanilla beans:

(1) The beans could be disposed of in any manner that the manufacturer desired if all alcohol was first removed from the beans by the drawback manufacturer; (2) the spent vanilla beans could be destroyed by burning; or (3) the beans could be removed from the premises of the manufacturer for the purpose of sale or destruction if the beans had been treated with sufficient kerosene to prevent any residual alcohol from being recovered from the beans.

Revenue Ruling 57-555 amplified Ruling 55-512 by permitting the disposal of spent vanilla beans under all the conditions enumerated in Ruling 55-512 and, in addition, allowing for the treatment of spent vanilla beans with mineral spirits, rubber hydrocarbon solvent or gasoline prior to the sale of the beans by the manufacturer of nonbeverage products.

It has now been decided that a more liberal approach to regulating the disposal of spent vanilla beans would be of benefit to all concerned. ATF will no longer restrict the treatment of spent vanilla beans to the materials specifically mentioned in the aforementioned rulings.

Held, a manufacturer of nonbeverage products may dispose of spent vanilla beans in the following ways:

(1) by removing all alcohol from the beans and disposing of the dried beans in any manner that the manufacturer chooses; (2) by burning the spent vanilla beans; (3) by processing the spent beans or treating the beans with materials, prior to their removal from the control of the manufacturer of a nonbeverage product, so as to make it impractical for anyone to recover potable alcohol from such beans.

The manufacturer may wish to obtain the advice of the appropriate regional regulatory administrator with respect to whether the materials or processes to be used are suitable.

Revenue Ruling 55-512, C.B. 1955-2, 699 (Internal Revenue) and Revenue Ruling 57-555. C.B. 1957-2, 948 (Internal Revenue) are hereby superseded.

27 CFR 197.105. Holding has been modified by 27 CFR 17.183.

Last updated: May 2, 2024