Exporting Taxpaid Distilled Spirits from the U.S.
Wholesalers Removing Taxpaid Distilled Spirits for Exportation
The following addresses the most pertinent regulatory requirements pertaining to wholesalers withdrawing taxpaid or tax determined distilled spirits from a distilled spirits plant (DSP) for:
- Use as supplies on vessels and aircraft;
- Transfer to a foreign-trade zone;
- Transfer to a customs bonded warehouse; and
- Shipment to the U.S. armed forces for use overseas.
The regulations pertaining to the exportation of distilled spirits are contained in part 28 of Title 27 of the Code of Federal Regulations (CFR). For the complete and regularly updated set of regulations, please visit the e-CFR online.
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 taxpaid 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 this 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 exportations of taxpaid or tax determined distilled spirits.
The provisions of 27 CFR 28.171 provide that distilled spirits manufactured, produced, bottled in bottles, packed in containers, or packed in casks or other bulk containers on which the tax has been paid or determined may be:
- Exported to a foreign country;
- Used as supplies on the vessels and aircraft described in 27 CFR 28.21;
- Transferred to and deposit in a foreign-trade zone for exportation or storage pending exportation; or
- Transferred 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 taxpaid distilled spirits to the U.S. armed forces for use overseas.
In addition to the labeling requirements prescribed in 27 CFR part 19, 27 CFR 28.193 provides that the wholesaler is responsible for placing the word "Export" on the Government side of each case or Government head of each container before removal for export, for use on vessels or aircraft, for transfer to a foreign-trade zone, or transfer to a customs bonded warehouse.
Drawback notice for exported taxpaid distilled spirits.
In compliance with 27 CFR 28.190, a wholesaler selling taxpaid distilled spirits for export, or as otherwise listed above, should prepare and file a notice on
TTB F 5110.30 "Drawback on Distilled Spirits Exported."
Gauge of distilled spirits packages.
In accordance with 27 CFR 28.192, distilled spirits in packages which are to be removed for export with benefit of drawback, shall be gauged by the DSP proprietor prior to preparation of TTB F 5110.30.
Proof of exportation.
Section 28.171 of the TTB regulations requires proof that the distilled spirits have in fact been exported, used as supplies on vessels or aircraft, deposited in a foreign-trade zone, deposited in a customs bonded warehouse, or shipped to the armed forces for use overseas. Proof of exportation must be submitted to the appropriate TTB officer. Section 28.190 requires such notice to be submitted on TTB F 5110.30. The provision of 27 CFR 28.250 requires each claim to be supported by an invoice, bill of lading or other document which identifies the date of tax determination, unless the bill of lading required by that section identifies this date.
For information on other export certificates that may be required for exports to certain countries (e.g. Certificate of Free Sale, VI1 forms, etc.), please visit our
Export Documents page.
TTB G: 2010-12
Oct. 06, 2010