Rev. Ruling 57-124
Permit and Labeling Requirements
Advice has been requested with respect to the permit and labeling requirements for the rectification and bottling of spirits at a class 6 customs bonded warehouse.
Section 3(b) of the Federal Alcohol Administration Act provides, in part, that is shall be unlawful, except pursuant to a basic permit issued under the Act, (1) to engage in the business of rectifying or blending distilled spirits or wine, or bottling or warehousing and bottling distilled spirits, or (2) for any person so engaged to sell or deliver for sale, contract to sell or ship in interstate or foreign commerce, directly or indirectly, distilled spirits or wine so rectified, blended, or bottled or warehoused and bottled. There is nothing in the Act or in the Regulations relating to the Basic Permit Requirements, issued thereunder, exempting proprietors of class 6 customs bonded warehouses from these permit requirements. Accordingly, the proprietor of any such establishment who desires to rectify, blend, or bottle distilled spirits in bond for export must obtain a rectifier's basic permit and/or a warehousing and bottling basic permit, as the case may be. Permits of either class issued to any such proprietors should be serially numbered and identified in the same manner, and in the same sequence, as permits issued to rectifying plants and taxpaid bottling houses.
Section 5.80 of the Regulations relating to the Labeling and Advertising of Distilled Spirits provides that suc h regulations shall not apply to distilled spirits for export. Therefore, it is held that distilled spirits rectified and bottled in a class 6 customs bonded warehouse for export are not subject to the labeling provisions of these regulations and certificates of label approval need not be secured to cover the labels attached to such products. However, labels attached thereto must comply with customs requirements, and the kind or class and type of the spirits (or wines), if stated, must be in substantial conformity with the kind or class and type as known to the trade, as defined in the Regulations relating to the Labeling and Advertising of Wine and the Regulations relating to the Labeling and Advertising of Distilled Spirits, applicable to domestic and imported distilled spirits and wine.
The term "export" as used in these labeling and advertising regulations does not include shipments to Puerto Rico, Hawaii, or Alaska. Therefore, distilled spirits rectified and/or bottled for shipment thereto are subject to these labeling provisions, and the labels used thereon must be approved under these regulations. On the other hand, the regulations issued pursuant to chapter 51 of the Internal Revenue Code of 1954 differ in this respect from the regulations issued pursuant to the Federal Alcohol Administration Act in that they include as exportation shipments to Puerto Rico.
For the internal revenue requirements relative to the labeling of distilled spirits bottled in bond for exportation, see sections 225.992 through 225.994 of the Regulations relating to Warehousing of Distilled Spirits, and for the requirements of distilled spirits bottled especially for export with benefit of drawback, see section 252.59 of the Regulations relating to Drawback on Liquors Exported.
27 U.S.C. 203; 27 CFR 1.21