Exporting Distilled Spirits from the U.S. Without Payment of Tax
Wholesalers Withdrawing Distilled Spirits from Bonded Distilled Spirits Plant Premises Without Payment of Tax
The following addresses the most pertinent regulatory requirements pertaining to wholesalers withdrawing distilled spirits from a distilled spirits plant (DSP) without payment of tax for:
- Use as supplies on vessels and aircraft;
- Transfer to a foreign-trade zone;
- Transfer to a manufacturing bonded warehouse;
- Transfer to a customs bonded warehouse; and
- Shipment to the U.S. armed forces for use overseas.
The regulations pertaining to the exportation of alcohol are contained in part 28 of Title 27 of the Code of Federal Regulations (CFR). For the complete and regularly updated set of export regulations, please visit the e-CFR.
Wholesaler’s basic permit requirement.
Anyone other than a qualified proprietor of a distilled spirits plant who plans to engage in the business of exporting distilled spirits out of the United States must first obtain a basic permit under the Federal Alcohol Administration Act (the Act). The Act requires that anyone purchasing alcohol beverages for resale at wholesale, either domestically or in foreign commerce first obtain a Wholesaler's Basic Permit before commencing business. The application for the permit can be filed using our Permits Online system. To obtain this permit, you must qualify under the provisions of 27 CFR Part 1.
Authorized withdrawals of distilled spirits without payment of tax.
The provisions of 27 CFR 19.418 and 27 CFR 28.91 provide for the withdrawal of distilled spirits without payment of tax from distilled spirits plant premises. As prescribed by regulation, wholesalers may withdraw distilled spirits without payment of tax for:
- Exportation to a foreign country;
- Use as supplies on the vessels and aircraft described in 27 CFR 28.21;
- Transfer to and deposit in a foreign-trade zone for exportation or storage pending exportation;
- Transportation to and deposit in a manufacturing bonded warehouse; or
- Transfer to and deposit in a customs bonded warehouse as provided in
27 CFR 28.26.
The provisions of 27 CFR 28.243 provide for the shipment of untaxpaid distilled spirits to the U.S. armed forces for use overseas.
The regulations in 27 CFR 28.92 provide that a wholesaler wanting to withdraw distilled spirits without payment of tax from a DSP as authorized by § 28.91 , must file TTB F 5100.11, "Withdrawal of Spirits, Specially Denatured Spirits, or Wines for Exportation", in accordance with the instructions provided on that form.
TTB F 5100.11 must be approved by an appropriate TTB officer prior to removal of distilled spirits. After TTB approves or denies the application, the wholesaler will be notified by TTB that the distilled spirits may or may not be withdrawn. This process must be completed for each shipment of goods that is exported from the U.S. without payment of tax.
In addition to the labeling requirements prescribed in 27 CFR part 19, 27 CFR 28.103 requires that the distilled spirits plant proprietor mark the word "Export" on the Government side of each case or Government head of each container, before removal from the bonded premises. Exceptions can be found at § 28.103.
In accordance with 27 CFR 28.61, wholesalers withdrawing a specific lot of distilled spirits as authorized in § 28.91 without payment of tax from a distilled spirits plant must file for bond on TTB F 5100.25 in accordance with the instructions on that form. In accordance with 27 CFR 28.62, wholesalers withdrawing distilled spirits as authorized in § 28.91 without payment of tax on a continuing basis must file for bond on TTB F 5100.30 in accordance with the instructions on that form. These bond forms may be obtained through our National Revenue Center at 1-877-882-3277.
Proof of exportation.
To be relieved of liability for tax, the wholesaler exporting the distilled spirits 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 27 CFR 28.40, 28.41, 28.42.
For information on other export certificates that may be required for exports to certain countries (e.g. Certificate of Free Sale), please visit our Export Documents page.
TTB G: 2010-11
Oct. 06, 2010