- Last Reviewed: 09/05/2018 | FAQ #AFP20
Can distilled spirits that have not been rendered unfit for beverage use be transferred from an AFP to a DSP or another AFP? If so, how?
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 In contrast to fuel alcohol that is withdrawn tax-free from the bonded premises of an AFP, the tax liability of spirits that are "transferred in bond" to a DSP or another AFP is at all times covered by the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.
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Page last reviewed: September 12, 2018
Page last updated: September 13, 2018
Maintained by: Regulations and Rulings Division