Exporting Taxpaid Distilled Spirits from the U.S.
Distilled Spirits Plant Proprietors Removing Taxpaid or Tax Determined Distilled Spirits from Distilled Spirits Plant Premises
The following addresses the most pertinent regulatory requirements pertaining to Distilled Spirits Plant (DSP) proprietors removing taxpaid distilled spirits from a DSP for:
- Use as supplies on vessels and aircraft;
- Transfer to a foreign-trade zone;
- Transfer to a customs bonded warehouse; or
- 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 export regulations, please visit the e-CFR.
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 as defined 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 28.27.
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 DSP proprietor 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 distilled spirits plant proprietor selling taxpaid distilled spirits for export, or otherwise removes distilled spirits as listed above, shall 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 as authorized in § 28.171, or shipped to the U.S. armed forces for use overseas, be submitted to the appropriate TTB officer. Section 28.190 requires such notice to be submitted on TTB F 5110.30. For details on acceptable proof of exportation, please see 27 CFR 28.40, 28.41, and 28.42.
Industry Circulars 2000-2 and 2004-3 pertain to the exportation of taxpaid alcohol, and TTB accepts the forms of proof of exportation outlined in those industry circulars as proof of exportation for distilled spirits. In order to provide the type of proof of exportation as outlined in Industry Circular 2004-3, the DSP proprietor must apply for and receive approval for the alternate method or procedure outlined in that Industry Circular.
Industry Circular 2004-3 notes that acceptable proof of exportation includes "all documents that substantiate the transaction as a removal for export." Proof of export may include the DSP proprietor’s system of commercial records, such as purchase orders, production schedules, inland bills of lading, ocean bills of lading, accounts receivable, letters of credit, proofs or payment, etc. Refer also to our export documentation FAQ.
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: 2010-10
Oct. 06, 2010