Brewers Removing Beer and Beer Concentrate from Bonded Premises Without Payment of Tax
The following information addresses the most pertinent regulatory requirements pertaining to a brewer removing beer or beer concentrate without payment of tax. for:
- Exportation;
- Use as supplies on vessels and aircraft;
- Transfer to a foreign-trade zone; and
- Shipment to the U.S. armed forces for use overseas.
The regulations contained in part 25 of the Code of Federal Regulations (CFR) pertain to the production of beer and 27 CFR part 28 pertains to the exportation of beer. For the complete and regularly updated set of export regulations, please visit the e-CFR online.
Authorized removals of beer and beer concentrate without payment of tax.
The provisions of 27 CFR 25.203, and 27 CFR 28.141 provide for the removal of beer from bonded brewery premises without payment of tax.
Authorized removals of beer without payment of tax include:
- Exportation to a foreign country;
- Use as supplies on the vessels and aircraft described in 27 CFR 28.21; or
- Transfer to and deposit in a foreign-trade zone for exportation or storage pending exportation.
The provisions of 27 CFR 28.243 provide for the shipment of untaxpaid beer to the U.S. armed forces for use overseas.
The provisions of § 28.141 provide that authorized removals of beer concentrate include:
- Exportation to a foreign country, and
- Transfer to and deposit in a foreign-trade zone for exportation of storage pending exportation.
Notice.
The provisions in 27 CFR 28.142 requires that a brewer intending to export, or otherwise remove beer or beer concentrate as listed above, without payment of tax must file TTB F 5130.12, "Beer for Exportation," in accordance with the instructions provided on that form.
Industry Circular 2004-3 provides instructions for brewers to obtain approval of an alternative procedure that allows them to maintain export documentation at the brewery, rather than submit documentation to the National Revenue Center. Upon approval, this procedure permits the brewer to submit monthly summary reports via electronic mail in lieu of mailing specific transaction documents to TTB. Approval of this alternate method is neither automatic nor guaranteed. Questions about applying for this alternate procedure are addressed in our FAQs or you may contact us at exports@ttb.gov.
Export marks.
In addition to the labeling requirements prescribed in 27 CFR part 25, brewers are also required by 27 CFR 28.144 to mark the word "Export" on each container or case of beer or the words "Beer concentrate for export" on each container of beer concentrate, before the removal from the brewery. Exceptions can be found in § 28.144.
Bond coverage.
The provisions in 27 CFR 28.60, require a brewer’s bond on TTB F 5130.22 to cover the removal of beer or beer concentrate from brewery premises for exportation without payment of tax.
Proof of exportation.
To be relieved of liability for tax, the brewer exporting beer or beer concentrate must maintain and submit appropriate and acceptable proof of exportation, which may vary depending on the purpose and final destination of the product. For details on acceptable proof of exportation, please see paragraphs (a)(1) and (b) of 27 CFR 28.43.
If the brewer applies for and receives approval for the alternate method or procedure outlined in Industry Circular 2004-3, he may provide proof of exportation as outlined in the same industry circular.
Brewers report of operations.
All authorized removals of beer and beer concentrate for export, or removal as listed above, without payment of tax should be recorded on line 16 of TTB F 5130.9, "Brewer’s Report of Operations." Removals of beer for transfer to a Foreign-Trade Zone should also be recorded on line 16. Removals of beer for use as supplies on vessels or aircraft should be recorded on line 17 of TTB F 5130.9, "Brewer’s Report of Operations."
Export certificates.
For information on other export certificates that may be required for entry into certain countries (e.g. Certificate of Free Sale), please visit our Export Documents page.
TTB G: 2010-8
OPR: ITD
Oct. 06, 2010