Exporting Wine from the U.S.
Bonded Wine Premises Proprietors Withdrawing Wine from Bonded Premises Without Payment of Tax
The following information addresses the most pertinent regulatory requirements pertaining to a bonded wine Premises proprietor withdrawing wine from their bonded wine premises without payment of tax for:
- Use as supplies on vessels and aircraft;
- Transfer to a foreign-trade zone;
- Transfer to a customs bonded warehouse;
- Transfer to a manufacturing bonded warehouse; and
- Shipment to the U.S. armed forces for use overseas.
The regulations pertaining to the production of wine are contained in part 24 of Title 27 of the Code of Federal Regulations (CFR), while those pertaining to the exportation of wine are contained in 27 CFR parts 24 and 28. For the complete and regularly updated set of export regulations, please visit the e-CFR.
Authorized withdrawals of wine without payment of tax.
- Exportation to a foreign country;
- Use as supplies on the vessels and aircraft as defined in described in
27 CFR 28.21;
- Transfer to and deposit in a foreign-trade zone for exportation or storage pending exportation;
- Transfer to and deposit in a customs bonded warehouse as provided in
27 CFR 28.27; and
- Transportation to and deposit in a manufacturing bonded warehouse.
The provisions of 27 CFR 28.243 provide for the shipment of untaxpaid wine to the U.S. armed forces for use overseas.
The regulations in 27 CFR 28.122 provide that bonded wine premises proprietors intending to withdraw wine for export, or for removal as listed above without payment of tax 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.
Industry Circular 2004-3 provides instructions for bonded wine premises proprietors to obtain approval of an alternative procedure that allows them to maintain export documentation at their bonded premises, rather than submit the documentation to the TTB National Revenue Center. Upon approval, this procedure permits the proprietor 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 email@example.com.
In addition to the labeling requirements prescribed in 27 CFR part 24, 27 CFR 28.123 requires that the bonded wine premises proprietor mark the word "Export" on each container or case of wine, before the removal from the bonded wine premises. Exceptions can be found at § 28.123.
Proof of exportation.
To be relieved of liability for tax, the bonded wine premises proprietor exporting the wine 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 and Industry Circular 2000-2. If the proprietor applies for and receives approval for the alternate method or procedure outlined in Industry Circular 2004-3, the proprietor may provide proof of exportation as outlined in that Industry Circular.
Report of wine premises operations.
All withdrawals of wine without payment of tax for export should be shown as ‘Exported’ on TTB F 5120.17, "Report of Wine Premises Operations" - not as ‘Transferred in Bond’. Untaxpaid bottled wine exports are shown in Section B, Line 12, while entries for untaxpaid bulk wine exports are to be shown on one of the blank lines 24-28 of Section A of the report.
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: 2010-14
Oct. 06, 2010