Frequently Asked Questions (FAQs): Alcohol Fuel Plant (AFP) and Fuel Alcohol

Yes, with certain restrictions provided for in 27 CFR 19.733, distilled spirits that have not been rendered unfit for beverage use may be transferred from an AFP to a DSP or another AFP. In contrast to fuel alcohol that is withdrawn tax-free from the bonded premises of an AFP, the tax liability of spirits that are "transferred in bond" to a DSP or another AFP is at all times covered by the bond of a TTB permittee. Such transfers are not considered to be withdrawals.

Distilled spirits that have not been rendered unfit for beverage use may be transferred in bond from an AFP to a DSP or another AFP. However, after the transfer, the spirits must be rendered unfit for beverage use prior to withdrawal and may only be used for fuel purposes after withdrawal. In addition, each DSP or AFP that wishes to receive spirits under a transfer in bond from an AFP must obtain a one-time approval using TTB F 5100.16 ("Application for Transfer of Spirits and/or Denatured Spirits in Bond") in order to receive spirits from that AFP. Other requirements relating to transfers in bond from AFPs are contained in 27 CFR 19.726, 19.734, 19.735, and 19.736.

People Also Asked …

1. Which materials are authorized for making distilled spirits unfit for beverage use?
2. Does an AFP proprietor have to amend his/her permit if he/she relocates the still listed on the permit?
3. Can distilled spirits that are not rendered unfit for beverage use be legally withdrawn from an AFP?