TTB Public Guidance 2018-9 | TTB: Alcohol and Tobacco Tax and Trade Bureau

Issued on August 30, 2018
TTB G 2018-9

Key Distinctions Between Alcohol Fuel Plants and Typical Distilled Spirits Plants

The following table is intended to provide a brief overview of the basic differences between Alcohol Fuel Plants (AFPs) and Distilled Spirits Plants (DSPs), as well as outline the different qualification requirements for AFPs and DSPs. The operations of an AFP are generally limited to the production of fuel alcohol, whereas the operations of a DSP can range from the production of beverage spirits to the production of specially and completely denatured alcohol. There are several other differences relating to bonds, reporting, and recordkeeping requirements. This table is not intended to reflect all of the regulatory requirements of such premises. For a complete review of the AFP and DSP regulations please view 27 CFR part 19. You may also visit the TTB AFP FAQs and the TTB DSP FAQs.

	Small Alcohol Fuel Plant	Medium Alcohol Fuel Plant	Large Alcohol Fuel Plant	Distilled Spirits Plant
Definition.	A special type of DSP qualified under 27 CFR part 19, subpart X solely for producing, processing and storing, and using or distributing distilled spirits to be used exclusively for fuel use. In accordance with 27 CFR 19.662 a small alcohol fuel plant (small AFP) is a plant which does not produce and/or receive more than 10,000 proof gallons of spirits in one calendar year.	A special type of DSP qualified under 27 CFR part 19, subpart X solely for producing, processing and storing, and using or distributing distilled spirits to be used exclusively for fuel use. In accordance with 27 CFR 19.662 a medium alcohol fuel plant (medium AFP) is a plant which produces and/or receives more than 10,000 and not more than 500,000 proof gallons of spirits per calendar year.	A special type of DSP qualified under 27 CFR part 19, subpart X solely for producing, processing and storing, and using or distributing distilled spirits to be used exclusively for fuel use. In accordance with 27 CFR 19.662 a large alcohol fuel plant (large AFP) produces and/or receives more than 500,000 proof gallons of spirits per calendar year.	An establishment qualified under 27 CFR part 19 for distilling spirits, warehousing spirits, processing spirits, or any combination thereof. Law and regulations do not categorize DSPs on the basis of "size."
Authorized Production Activities.	The proprietor of an AFP is authorized to produce distilled spirits to be used exclusively for fuel use.			Generally, the proprietor of a DSP can produce beverage distilled spirits, specially denatured alcohol, completely denatured alcohol, and tax-free alcohol; and manufacture articles.
Registration and Permit Application Requirement.	As provided in 27 CFR 19.673 , a person wishing to establish a small AFP can apply for an alcohol fuel producer’s permit on TTB F 5110.74 . The application may be completed using TTB’s Permits Online system.	As provided in 27 CFR 19.675 , a person wishing to establish a medium AFP can apply for an alcohol fuel producer’s permit on TTB F 5110.74 . The application may be completed using TTB’s Permits Online system.	As provided in 27 CFR 19.676 , a person wishing to establish a large AFP can apply for an alcohol fuel producer’s permit on TTB F 5110.74 . The application may be completed using TTB’s Permits Online system.	As provided in 27 CFR 19.72 and 19.91 , a person wishing to establish and operate a DSP of any size must apply for a permit using TTB F 5100.24 or TTB F 5110.25 and register using TTB F 5110.41 . The application may be completed using TTB’s Permits Online system.
Bond Requirement.	No bond is required for small AFPs with production operations. In accordance with 27 CFR 19.700 , the penal sum for a bond of a small plant that does not have production operations is $1,000.	In accordance with §19.675 , a bond of sufficient sum (between $2,000 and $50,000), as prescribed in 27 CFR 19.700 , is required for medium AFPs. The bond must be filed on TTB F 5110.56 and can be submitted with the application. The bond must be submitted and approved before a permit is issued.	In accordance with §19.676 , a bond of sufficient sum (between $52,000 and $200,000), as prescribed in § 19.700 , is required for large plants. The bond must be filed on TTB F 5110.56 and can be submitted with the application. The bond must be submitted and approved before a permit is issued.	Except as provided in 27 CFR 19.151(d) , every person intending to establish a distilled spirits plant shall file a bond as prescribed in 27 CFR part 19, subpart F .
Reporting Requirements.	Section 19.720 requires the proprietor of an AFP to submit an annual report on TTB F 5110.75 for each calendar year ending on December 31. This report must be sent, by January 30 of the year following the reporting period, to the following address: Director, National Revenue Center Alcohol and Tobacco Tax and Trade Bureau 550 Main St, Room 8970 Cincinnati, OH 45202-3222.			In accordance with 27 CFR 19.632 , a DSP proprietor must file monthly production ( TTB F 5110.40 ), storage ( TTB F 5110.11 ), and processing ( TTB F 5110.28 or TTB F 5110.43 ) reports as applicable at the end of each reporting period. These forms may be completed electronically using Pay.gov.
Recordkeeping Requirements.	In accordance with 27 CFR 19.718 and 19.719 , AFP proprietors must keep records of: spirits produced, on hand, received, and disposed of; materials added to spirits to render them unfit for beverage use; and fuel alcohol manufactured and disposed of. AFP proprietors should consult the regulations for more detail about recordkeeping requirements that may apply depending on the circumstances.			Some of the required records for a DSP pertain to: daily production records ( 27 CFR 19.584 , 19.585 , and 19.586 ), daily storage records ( 27 CFR 19.590 ), dump/batch records ( 27 CFR 19.598 ), record of samples ( 27 CFR 19.616 ), and record of destruction ( 27 CFR 19.617 ).

TTB G: 2018-9
OPR: RRD
Date: 8/30/2018