27 CFR Part 24 — Wine

PART 24—WINE Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306. Source: T.D. ATF-299, 55 FR 24989, June 19, 1990, unless otherwise noted. Subpart A—Scope § 24.1 General. The regulations in this part relate to the establishment and operation (including incidental activities) of wine premises and to the treatment and classification of wine. § 24.2 Territorial extent. This part applies to the several States of the United States and the District of Columbia. (Sec. 201, Pub. L. 85-859, 72 Stat. 1337, as amended (26 U.S.C. 5065)) § 24.4 Related regulations. Regulations related to this part are listed below: 26 CFR Part 301—Procedure and Administration. 27 CFR Part 1—Basic Permit Requirements Under the Federal Alcohol Administration Act. 27 CFR Part 2—Nonindustrial Use of Distilled Spirits and Wine. 27 CFR Part 4—Labeling and Advertising of Wine. 27 CFR Part 9—American Viticultural Areas. 27 CFR Part 16—Alcoholic Beverage Health Warning Statement 27 CFR Part 18—Production of Volatile Fruit-Flavor Concentrates. 27 CFR Part 19—Distilled Spirits Plants. 27 CFR Part 26—Liquors and Articles from Puerto Rico and the Virgin Islands. 27 CFR Part 27—Importation of Distilled Spirits, Wines and Beer. 27 CFR Part 28—Exportation of Alcohol. 27 CFR Part 29—Stills and Miscellaneous Regulations. 27 CFR Part 30—Gauging Manual. 27 CFR Part 31—Alcohol Beverage Dealers. 27 CFR Part 71—Rules of Practice in Permit Proceedings. 31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties. [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-463, 66 FR 42734, Aug. 15, 2001; T.D. ATF-462, 66 FR 42736, Aug. 15, 2001; T.D. ATF-470, 66 FR 58944, Nov. 26, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004; T.D. TTB-25, 70 FR 19882, Apr. 15, 2005; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017] Subpart B—Definitions § 24.10 Meaning of terms. When used in this part and in the forms prescribed under this part, terms will have the meanings ascribed in this section. Words in the plural form also include the singular, and vice versa, Administrator. Affiliated persons or firms. Agricultural wine. Allied products. Amelioration. Appropriate TTB officer. Artificially carbonated hard cider. Artificially carbonated wine. Bonded wine cellar. Bonded wine premises. Bonded wine warehouse. Bonded winery. Bottle. Bottler. Brix. Bulk container. Business day. Calendar quarter and quarterly. Calendar year. Case. Chaptalization (Brix adjustment). Cider. Concentrate plant. Container. Director of the service center. Distilled spirits plant. Distilling material. District director. Effervescent wine. Electronic fund transfer (EFT). Executed under penalties of perjury. Export or exportation. Fiduciary. Financial institution. Fold. Foreign wine. Formula wine. From bond. Fruit wine. Gallon or wine gallon. Grams per liter. Grape wine. Hard cider. Heavy bodied blending wine. High-proof concentrate. In bond. Invert sugar syrup. Juice. Kind. Lees. Liquid sugar. Liter. Lot. Must. Natural wine. Nonbeverage wine. Own production. Packer. Person. Proof. Proof gallon. Proprietor. Pure dry sugar. Reconditioning. Same kind of fruit. Secretary of the Treasury Secretary. Sparkling hard cider. Sparkling wine or champagne. Special natural wine. Specially sweetened natural wine. Spirits. Standard wine. Still hard cider. Still wine. Sugar. Sweetening. Tax exempt cider. Tax year. Taxpaid wine. Taxpaid wine bottling house. Taxpaid wine premises. This chapter. To bond. Total solids. Treasury Account. U.S.C. United States wine. Vinegar. Volatile fruit-flavor concentrate. Wine. Wine premises. Wine spirits. [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-41, 71 FR 5602, Feb. 2, 2006; T.D. TTB-44, 71 FR 16938, Apr. 4, 2006; T.D. TTB-89, 76 FR 3509, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017; T.D. TTB-147, 82 FR 7662, Jan. 23, 2017; T.D. TTB-185, 87 FR 51896, Aug. 24, 2022; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024] Subpart C—Administrative and Miscellaneous Provisions Authorities § 24.19 Delegations of the Administrator. Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.24, Delegation of the Administrator's Authorities in 27 CFR Part 24, Wine. You may obtain a copy of this order by accessing the TTB Web site ( https://www.ttb.gov [T.D. TTB-44, 71 FR 16938, Apr. 4, 2006, as amended by T.D. TB-196, 89 FR 87941, Nov. 6, 2024] § 24.20 Forms prescribed. (a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form will be furnished as indicated by the headings on the form and the instructions on or pertaining to the form and as required by this part. The form will be filed in accordance with the instructions for the form. (b) Forms prescribed by this part are available for printing through the TTB Web site ( https://www.ttb.gov [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-44, 71 FR 16938, Apr. 4, 2006; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024] § 24.21 Modified forms. (a) General. (1) Good cause has been shown for the use of the modified form and (2) The use of the modified form will not result in a net increase in cost to the Government or hinder the effective administration of this part. Except to adapt tax returns for use with data processing equipment, no proposal for modification of a prescribed form relating to qualification, to the giving of any bond, or to the assessment, payment, or collection of tax will be approved under this section. (b) Application. (c) Conditions. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555)) (Approved by the Office of Management and Budget under control number 1512-0292) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.22 Alternate method or procedure. (a) General. (1) Good cause has been shown for the use of the alternate method or procedure; (2) The alternate method or procedure is within the purpose of, and consistent with the effect intended by, the specifically prescribed method or procedure, and affords equivalent security to the revenue; and (3) The alternate method or procedure will not be contrary to any provision of law, will not result in an increase in cost to the Government, and will not hinder the effective administration of this part. (b) Application. (c) Conditions. (Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5556)) (Approved by the Office of Management and Budget under control number 1512-0292) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999] § 24.25 Emergency variations from requirements. (a) General. (1) Will afford the security and protection to the revenue intended by the prescribed specifications; (2) Will not hinder the effective administration of this part; and (3) Will not be contrary to any provisions of law. (b) Application. (c) Temporary approval. (d) Conditions. [T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.26 Authority to approve. The appropriate TTB officer is authorized to approve, except as otherwise provided in this part, all applications, bonds, consents of surety, qualifying documents, claims, and any other documents required by or filed under this part, whether for original establishment, for changes subsequent to establishment, for discontinuance of business, for remission, abatement, credit, or refund of tax, or for any other purpose. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351)) (Approved by the Office of Management and Budget under control number 1512-0292) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.27 Segregation of operations. The appropriate TTB officer may require the proprietor to segregate operations within any wine premises established under this part, by partitions or otherwise, to the extent deemed necessary to prevent jeopardy to the revenue, to prevent confusion between operations, to prevent substitution with respect to the several methods of producing effervescent wine, and to prevent the commingling of standard wine with other than standard wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.28 Installation of meters, tanks, and other apparatus. The appropriate TTB officer may require the proprietor to install meters, tanks, pipes, or any other apparatus for the purpose of protecting the revenue. Any proprietor refusing or neglecting to install a required apparatus will not be permitted to conduct business. (Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.29 Claims. The appropriate TTB officer may require the proprietor or other person liable for the tax on wine or spirits to file a claim and to submit evidence of loss in any case where wine or spirits are lost or destroyed. (Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended (26 U.S.C. 5008, 5043, 5370)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.30 Supervision. The appropriate TTB officer may require that operations on wine premises be supervised by any number of appropriate TTB officers necessary for the protection of the revenue or for the enforcement of 26 U.S.C. chapter 51 and applicable regulations. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5366, 5553)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999] § 24.31 Submission of forms and reports. The appropriate TTB officer may require the proprietor to submit to an appropriate TTB officer copies of prescribed transaction forms, records, reports, or source records used to prepare records, reports or tax returns. (Sec. 201, Pub. L. 85-859, 72 Stat. 1396, as amended (26 U.S.C. 5555)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999] § 24.32 Records. The appropriate TTB officer may require the proprietor to maintain any record required by this part in a prescribed format or arrangement or otherwise change the method of recordkeeping in any case where the required information is not clearly or accurately reflected. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.35 Right of entry and examination. Under 26 U.S.C. 7601, 7602, and 7606, appropriate TTB officers have authority to inspect during normal business hours the records, stocks, and wine premises (including any portion designated as a bonded wine warehouse) of the proprietor to determine compliance with all provisions of the internal revenue laws and regulations. In addition, for the purposes prescribed in 27 CFR 70.22, appropriate TTB officers may examine financial records, books of account, and any other books, papers, records, and data relevant to an inquiry. Any denial or interference with any inspection by the proprietor, or by agents or employees of the proprietor, is a violation of 26 U.S.C. 7342 and may be subject to an appropriate penalty. (August 16, 1954, Ch. 736, 68A Stat. 872, as amended, 901, as amended, 903, as amended (26 U.S.C. 5560, 7342, 7601, 7602, 7606)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.36 Instruments and measuring devices. All instruments and measuring devices required by this part to be furnished by the proprietor for the purpose of testing and measuring wine, spirits, volatile fruit-flavor concentrate, and materials will be maintained by the proprietor in accurate and readily usable condition. The appropriate TTB officer may disapprove the use of any equipment or means of measurement found to be unsuitable for the intended purpose, inaccurate, or not in accordance with regulations. In this case, the proprietor shall promptly provide suitable and accurate equipment or measuring devices. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended (26 U.S.C. 5357, 5366, 5368, 5552)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.37 Samples for the United States. Appropriate TTB officers are authorized to take samples of wine, spirits, volatile fruit-flavor concentrate, or any other material which may be added to wine products, for analysis, testing, etc., free of tax to determine compliance with the provisions of law and regulation. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as amended, 1392, as amended, 1396, as amended (26 U.S.C. 5362, 5373, 5511, 7510)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] Facilities and Assistance § 24.40 Gauging and measuring. Appropriate TTB officers may require the proprietor to furnish the necessary facilities and assistance to gauge or measure wine or spirits in any container or to examine any apparatus, equipment, container, or material on wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended, 1395, as amended, 1396, as amended (26 U.S.C. 5357, 5366, 5368, 5555)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.41 Office facilities. The appropriate TTB officer may require the proprietor to furnish temporarily a suitable work area, desk and equipment necessary for the use of appropriate TTB officers in performing Government duties whether or not such office space is located at the specific premises where regulated operations occur or at corporate business offices where no regulated activity occurs. Such office facilities will be subject to approval by the appropriate TTB officer. [T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] Employer Identification Number § 24.45 Use on returns. The employer identification number (as defined at 26 CFR 301.7701-12) of the taxpayer who has been assigned such a number will be shown on each return filed pursuant to the provisions of this part, including amended returns. Failure of the taxpayer to include the employer identification number on any return filed pursuant to the provisions of this part may result in the assertion and collection of the penalty prescribed in 27 CFR 70.113 of this chapter. (Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109, 6676)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-301, 55 FR 47605, Nov. 14, 1990] § 24.46 Application. (a) An employer identification number will be assigned pursuant to application on Internal Revenue Service (IRS) Form SS-4 filed by the taxpayer. IRS Form SS-4 may be obtained from the director of the service center or from any district director. (b) An application on IRS Form SS-4 will be made by the taxpayer who, prior to filing the first return, has neither secured nor made application for an employer identification number. An application on IRS Form SS-4 will be filed on or before the seventh day after the date on which the first return is filed. (c) Each taxpayer shall make application for and be assigned only one employer identification number, regardless of the number of places of business for which the taxpayer is required to file a tax return under the provisions of this part. (Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109)) (Approved by the Office of Management and Budget under control number 1512-0492) § 24.47 Execution of IRS Form SS-4. (a) Preparation. (b) Signature. (1) The individual, if the taxpayer is an individual; or, (2) The president, vice president, other principal officer, or other person authorized to sign, if the taxpayer is a corporation; or, (3) A responsible and duly authorized member or officer having knowledge of its affairs, if the taxpayer is a partnership or other unincorporated organization; or, (4) The fiduciary, if the taxpayer is a trust or estate. (Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109)) (Approved by the Office of Management and Budget under control number 1512-0492) Dealer Registration and Recordkeeping § 24.50 [Reserved] § 24.51 Definitions. For purposes of §§ 24.52 through 24.54 of this part, the following terms have the meanings indicated: Dealer. Retail dealer in liquors. Wholesale dealer in liquors. (26 U.S.C. 5121, 5122) [T.D. TTB-79, 74 FR 37404, July 28, 2009] § 24.52 Dealer registration. Every proprietor who sells or offers for sale any alcohol product (distilled spirits, wines, or beer) fit for beverage use must register as a dealer in accordance with part 31 of this chapter. However, the proprietor's application to establish and operate a bonded wine premises or taxpaid wine bottling house filed under subpart D of this part, and approval of that application by the appropriate TTB officer, will constitute the proprietor's registration as a dealer at the approved bonded or taxpaid wine premises. Every proprietor registered as a dealer under this section will be classified as a wholesale dealer in liquors (see § 31.32 of this chapter) and as such may also operate as a retail dealer in liquors without additional registration. Registration covers all sales from the same location, including sales of spirits, beer, or other proprietors' wine. As provided in § 31.52 of this chapter, the proprietor is subject to no additional registration for making sales of wine or beer at the customer's place of business. Otherwise, a proprietor who conducts business as a dealer at a location other than the bonded wine premises or taxpaid wine bottling house must register and keep records in accordance with part 31 of this chapter. (26 U.S.C. 5124) [T.D. TTB-79, 74 FR 37404, July 28, 2009] § 24.53 Amending the dealer registration. Every proprietor registered as a dealer under § 24.52 must maintain a current and accurate application file under subpart D of this part. Whenever there is a change to any of the information provided in the proprietor's approved application, the proprietor must amend the application within the time period specified in subpart D of this part. An amendment of the proprietor's wine premises approved application will also amend the proprietor's dealer registration under § 24.52. The proprietor's dealer registration will also terminate when wine operations authorized under this part terminate. (26 U.S.C. 5124) [T.D. TTB-79, 74 FR 37404, July 28, 2009] § 24.54 Dealer records. Every dealer is required to maintain records of transactions. Wine transactions that appear in the records required by subpart O of this part will meet the proprietor's recordkeeping requirements as a dealer. For other transactions not covered in the wine premises records, such as retail sales of distilled spirits or beer in a restaurant at the wine premises, or operations as a wholesale dealer in distilled spirits or beer, the proprietor must keep the records specified for dealers in part 31 of this chapter. (26 U.S.C. 5121, 5122, 5123) [T.D. TTB-79, 74 FR 37404, July 28, 2009] Assessments § 24.60 General. Where the appropriate TTB officer determines by examination of records, inventories, or otherwise that the proprietor has incurred liability for the tax on wine, distilled spirits, or special (occupational) tax, and the proprietor does not pay the tax upon notification of the liability, the tax will be assessed. (August 16, 1954, Ch. 736, 68A Stat. 767, as amended (26 U.S.C. 6201)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.61 Assessment of tax. When wine or spirits in bond are lost or destroyed (except wine or spirits on which the tax is not collectible by reason of the provisions of 26 U.S.C. 5008 or 26 U.S.C. 5370, as applicable) and the proprietor or other person liable for the tax on the wine or spirits fails to file a claim when required pursuant to § 24.29 or when the claim is denied, the tax will be assessed. In any case where wine is produced, imported, or received otherwise than as authorized by law, or where wine or spirits are removed, possessed, or knowingly used in violation of applicable law, or volatile fruit-flavor concentrate is sold, transported, or used in violation of law, the tax will be assessed. (Sec. 201, Pub. L. 85-859, 72 Stat. 1314, as amended, 1323, as amended, 1332, as amended, 1335, as amended, 1381, as amended, 1387, as amended, 1392, as amended (26 U.S.C. 5001, 5008, 5043, 5061, 5370, 5391, 5512)) (Approved by the Office of Management and Budget under control number 1512-0492) § 24.62 Notice. If an investigation or an examination of records discloses that liability for the tax on wine or distilled spirits, or special (occupational) tax has been incurred by the proprietor, the appropriate TTB officer will notify the proprietor by letter of the basis and the amount of the proposed assessment in order to afford the proprietor an opportunity to submit a protest, with supporting evidence, within 45 days, or to request a conference with regard to the tax liability. However, if collection of the tax liability may be jeopardized by a delay, the appropriate TTB officer may take immediate jeopardy assessment action pursuant to 26 U.S.C. 6862. (Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended (26 U.S.C. 5008, 5370, 6862)) (Approved by the Office of Management and Budget under control number 1513-0088) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024] Claims § 24.65 Claims for wine or spirits lost or destroyed in bond. (a) Claim for remission of tax on spirits. (1) The name, registry number, and location of the distilled spirits plant which produced the spirits; (2) The serial numbers of the containers from which the spirits were lost, the quantity lost from each, and the total quantity of spirits covered by the claim; (3) The total amount of tax for which claim is filed; (4) The date of the loss or destruction (or, if not known, the date of discovery); (5) The nature and cause (if known) of the loss will be stated specifically and in sufficient detail to disclose all material facts and circumstances surrounding the loss; (6) If lost in transit, the name of the carrier and the points between which shipped; and (7) If lost by theft, evidence establishing that the loss did not occur as the result of negligence, connivance, collusion, or fraud on the part of the proprietor, owner, consignor, consignee, bailee or carrier, or the agents or employees of any of them. (b) Claim for allowance of loss on wine. (1) The original volume of wine which sustained the loss, the tax class, the quantity of wine lost, and the percentage of wine lost; (2) Where the claim covers losses sustained at bonded wine premises during the tax year, the claimant shall state: (i) The quantities of wine on hand at the beginning of the tax year, received in bond during the tax year, and produced during the tax year; (ii) Where the percentage of loss is calculated separately by tax class, the volume of wine by tax class; and (iii) If effervescent wine is produced, the volume of wine produced by fermentation in bottles, by artificial carbonation, and by bulk processing; and (3) Claims covering losses of wine during transit in bond will show the volume lost from each container, the serial number, if any, and the volume shipped. (c) Claim for abatement, credit or refund. (1) The date of the assessment for which abatement is claimed; and (2) The name, registry number, and address of the premises where the tax was assessed (or name, address, and title of any other person who was assessed the tax, if the tax was not assessed against the proprietor). (d) Indemnification or recompense. (e) Supporting documents. (Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5008, 5370, 5373)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1991, as amended by T.D. ATF-338, 58 FR 19063, Apr. 12, 1993; T.D. ATF-376, 61 FR 31030, June 19, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.66 Claims on wine returned to bond. (a) General. (b) Filing. (1) The kind, volume, and tax class of the wine; (2) As to each tax class, the amount of tax previously paid or determined; and (3) The date the wine was returned to bond. (c) Indemnification or recompense. (Sec. 201., Pub. L. 85-859, 72 Stat. 1332, as amended, 1380, as amended (26 U.S.C. 5044, 5361, 5371)) (Approved by the Office of Management and Budget under control number 1513-0030) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015] § 24.67 Other claims. The requirements with respect to a claim for: (a) Remission of tax on wine withdrawn without payment of tax under the provisions of § 24.292, and lost in transit to the port of export, vessel or aircraft, foreign-trade zone, customs bonded warehouse, or manufacturing bonded warehouse, as applicable, are contained in 27 CFR part 28. (b) Refund or credit of any tax imposed on wine or other liquors by 26 U.S.C. chapter 51, part I, subchapter A, on the grounds that an amount of tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that the amount was excessive, are contained in 27 CFR part 70 subpart F. (c) Payment of an amount equal to the internal revenue tax paid or determined and customs duties paid on wines or other liquors previously withdrawn, which are lost, rendered unmarketable, or condemned by a duly authorized official as a result of (1) A major disaster, (2) Fire, flood, casualty, or other disaster, or (3) Breakage, destruction, or damage (excluding theft) resulting from vandalism or malicious mischief, are found in 27 CFR part 70, subpart G. (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-376, 61 FR 31030, June 19, 1996; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004] § 24.68 Insurance coverage. The remission, abatement, refund, credit, or other relief, of taxes on wine or spirits provided for under this part will be allowed only to the extent that the claimant is not indemnified or recompensed for such tax by any valid claim of insurance or otherwise. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5064, 5371)) § 24.69 Filing of claims. (a) Claims. (1) Show the name, address, and title of the claimant; (2) Be signed by the claimant or the duly authorized agent of the claimant; and (3) Be executed under the penalties of perjury. (b) Supporting documents. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5064, 5370)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.70 Claims for credit of tax. Claims for credit of tax, as provided in this part, may be filed after determination of the tax whether or not the tax has been paid. Where a claim for credit of tax is filed, the claimant shall, upon receipt of notification of allowance of credit from the appropriate TTB officer, make an adjusting entry on the next tax return (or returns) to the extent necessary to exhaust the credit. The claimant shall also make an explanatory statement on each tax return specifically identifying the notification of allowance of credit. The claimant may not anticipate allowance of a credit or make an adjusting entry in a tax return until TTB has acted on the claim. (Sec. 201, Pub. L. 85-859, 72 Stat. 1332, as amended, 1335, as amended, 1381, as amended, 1395, as amended (26 U.S.C. 5043, 5044, 5061, 5370, 5555)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] Tax Exempt Wine § 24.75 Wine for personal or family use. (a) General. (b) Quantity. (1) 200 gallons per calendar year for a household in which two or more adults reside, or (2) 100 gallons per calendar year if there is only one adult residing in the household. (c) Definition of an adult. (d) Proprietors of bonded wine premises. (e) Limitation. (f) Removal. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042)) (Approved by the Office of Management and Budget under control number 1512-0216) [T.D. ATF-299, 55 FR 24989, June 19, 1991, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. ATF-344, 58 FR 40354, July 28, 1993] § 24.76 Tax exempt cider. Cider, when produced solely from the noneffervescent fermentation of apple juice without the use of any preservative method or material, and when produced at a place other than a bonded wine premises and sold or offered for sale as cider, and not as wine or as a substitute for wine, is not subject to the tax on wine, or to the provisions of this part. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042)) § 24.77 Experimental wine. (a) General. (b) Qualification. (c) Procurement of spirits. (d) Records. (e) Discontinuance. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5042)) (Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999] Formulas § 24.80 General. The proprietor shall, before production, obtain approval of the formula and process by which special natural wine, agricultural wine, and other than standard wine (except distilling material or vinegar stock) are to be made. The formula must be prepared and filed on TTB F 5120.29, Formula and Process for Wine, in accordance with the instructions on the form. A nonbeverage wine formula will show the intended use of the finished wine or wine product. Any formula approved under this section will remain in effect until revoked, superseded, or voluntarily surrendered. Except for research, development, and testing, no special natural wine, agricultural wine, or, if required to be covered by an approved formula, wine other than standard wine may be produced prior to approval by the appropriate TTB officer of a formula covering each ingredient and process (if the process requires approval) used in the production of the product. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1386, as amended, 1395, as amended (26 U.S.C. 5361, 5367, 5386, 5387, 5555)) (Approved by the Office of Management and Budget under control number 1512-0059) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.81 Filing of formulas. The proprietor shall on each formula filed designate all ingredients and, if required, describe each process used to produce the wine. The addition or elimination of ingredients, changes in quantities used, and changes in the process of production, or any other change in an approved formula, will require the filing of a new TTB F 5120.29. After a change in formula is approved, the original formula must be surrendered to the appropriate TTB officer. The proprietor shall serially number each formula, commencing with “1” and continuing thereafter in numerical sequence. Nonbeverage wine formulas will be prefixed with the symbol “NB.” The appropriate TTB officer may at any time require the proprietor to file a statement of process in addition to that required by the TTB F 5120.29 or any other data to determine whether the formula should be approved or the approval continued. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1395, as amended (26 U.S.C. 5367, 5555)) (Approved by the Office of Management and Budget under control number 1512-0059) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.82 Samples. Except for vinegar and salted wine as defined in § 24.215, the proprietor shall submit under separate cover at the time of filing any nonbeverage wine formula a 750 mL sample of the base wine used and a 750 mL sample of the finished wine or wine product. The latter sample will be considered representative of the finished product. Any material change in the flavor or other characteristics of the finished product from that of the approved sample will require the filing of a new formula even though the ingredients may be the same. In addition, the appropriate TTB officer may, at any time, require the proprietor to submit samples of any wine or wine product made in accordance with an approved formula or of any materials used in production. (Sec. 201, Pub. L 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362)) (Approved by the Office of Management and Budget under control number 1512-0059) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] Essences § 24.85 Essences. Essences or extracts (preparations of natural constituents extracted from fruit, herbs, berries, wood, etc.) may be used in the production of any formula wine except agricultural wine. The essences may be produced on wine premises or elsewhere. Where an essence contains spirits, use of the essence may not increase the volume of the wine more than 10 percent nor its alcohol content more than four percent by volume. [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-185, 87 FR 51896, Aug. 24, 2022] § 24.86 Essences produced on wine premises. Wine, taxpaid spirits, or spirits withdrawn tax-free may be used in the production of essences on wine premises. The description of the process for producing the essence may be included as part of a formula for the production of a formula wine or a separate formula may be filed on TTB F5120.29. If a separate formula is filed for the essence, the serial number of the formula by which it is produced will be shown in the TTB F 5120.29 covering the formula wine in which it is to be used. If an essence is to be made in quantities greater than required for individual lots of formula wine, and stored on the premises, a separate formula will be filed for the essence. Essences made on wine premises with wine spirits withdrawn free of tax pursuant to 26 U.S.C. 5214(a)(5) may only be used in the production of a formula wine, and may not be removed from the premises where made. Essences made on wine premises with the use of tax-free spirits withdrawn free of tax pursuant to 26 U.S.C. 5214(a)(13) may only be used in the production of a nonbeverage wine or wine product and may not be removed from the premises where made. The TTB F 5120.29 for the production of an essence is filed in the same manner as for the production of formula wine and a sample of the essence produced will be at least four fluid ounces. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386)) (Approved by the Office of Management and Budget under control number 1512-0059) § 24.87 Essences made elsewhere. Before an essence not made on wine premises may be used in the production of formula wine, the manufacturer of the essence shall obtain approval from the appropriate TTB officer. The request for approval will identify the essence by name or number and by the name of the manufacturer, and a sample of at least four fluid ounces of the essence will be submitted. However, a request for approval and submission of a sample is not required if the essence is made pursuant to approval of a formula on TTB F 5530.5, Formula and Process for Nonbeverage Product. Essences made under an approved formula on TTB F 5530.5 will be described on TTB F 5120.29 by showing the name of the manufacturer, the manufacturer's nonbeverage drawback formula number, and the date of approval by the appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386)) (Approved by the Office of Management and Budget under control number 1512-0059) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] Conveyance of Wine or Spirits on Wine Premises § 24.90 Taxpaid products. Taxpaid wine or other taxpaid products may be conveyed across bonded wine premises, but may neither be stored nor allowed to remain on bonded wine premises and will be kept separate from untaxpaid wine or spirits. However, upon payment or determination of the tax, bulk wine may remain on bonded wine premises until the close of the business day following the day the tax was paid or determined, respectively, or the bonded wine premises on which the tank is located may be alternated as taxpaid wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365)) § 24.91 Conveyance of untaxpaid wine or spirits. Untaxpaid wine or spirits may be conveyed between different portions of the same bonded wine premises. Untaxpaid wine or spirits may also be conveyed by uninterrupted transportation over any public thoroughfare, or over a private roadway if the owner or lessee of the roadway agrees, in writing, to allow appropriate TTB officers access to the roadway to perform their official duty. The conveyance of wine or spirits as authorized in this section is subject to the following conditions: (a) The untaxpaid wine or spirits are not stored or allowed to remain on any premises other than bonded wine premises; (b) The untaxpaid wine or spirits are kept completely separate from taxpaid wine or spirits; and (c) A description of the means and route of conveyance and of the portions of the bonded wine premises between which wine or spirits will be conveyed, as well as a copy of any agreement furnished by the owner or lessee of a private roadway, have been submitted to and approved by the appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended (26 U.S.C 5357, 5365)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13684, Mar. 22, 1999] § 24.92 Products in customs custody. Products in customs custody may be conveyed across bonded wine premises subject to the following conditions: (a) The products are not stored or allowed to remain on bonded wine premises beyond the close of the business day; and (b) The products in customs custody are kept separate from wine and spirits on bonded wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C 5357, 5361, 5365)) Samples § 24.95 General. Wine or wine spirits may be withdrawn free of tax from a bonded wine premises for use by or for the account of the proprietor or the agents of the proprietor, for analysis or testing, organoleptically or otherwise. Wine or wine spirits may be used for testing purposes, and wine may be used for tasting or sampling on bonded wine premises free of tax. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as amended (26 U.S.C. 5362, 5372, 5373)) § 24.96 Use off premises. The proprietor may remove samples of wine or wine spirits free of tax for analysis or testing purposes. (a) Size. (b) Disposition of samples. (c) Records. (d) Labeling of samples. (e) Limitation. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5362, 5367, 5368, 5373)) (Approved by the Office of Management and Budget under control numbers 1512-0298 and 1512-0503) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.97 Use on premises. (a) Analysis or testing. (b) Tasting. (c) Limitation. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5362, 5372)) (Approved by the Office of Management and Budget under control numbers 1512-0298 and 1512-0503) Subpart D—Establishment and Operations § 24.100 General. Each person desiring to conduct operations in wine production, as specified in § 24.101(b), (other than the production of wine free of tax as provided in §§ 24.75 through 24.77) shall, prior to commencing operations, establish wine premises, make application as provided in § 24.105, file any required bond, and receive permission to operate wine premises as provided in this part. After approval, the wine premises will be designated a bonded winery, bonded wine cellar or taxpaid wine bottling house. As provided in § 24.107, the designated bonded winery will be used if production operations are to be conducted. In addition, wine premises may be used, in accordance with the provisions of this part, for the conduct of certain other operations. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351, 5352)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017] Premises and Operations § 24.101 Bonded wine premises. (a) General. (b) Authorized operations. (1) The receipt, production, blending, cellar treatment, storage, and bottling or packing of untaxpaid wine; (2) The use of wine spirits in beverage wine production and the use of spirits in nonbeverage wine production; (3) The receipt, preparation, use, or removal of fruit, concentrated or unconcentrated fruit juice, or other materials to be used in the production or cellar treatment of wine; and (4) The preparation, storage, or removal of commercial fruit products and by-products (including volatile fruit-flavor concentrate) not taxable as wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1380, as amended (26 U.S.C. 5351, 5353, 5361)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-146, 82 FR 1123, Jan. 4, 2017] § 24.102 Premises established for taxpaid wine operations. A person desiring to bottle or pack taxpaid United States or foreign wine shall file an application as provided in § 24.105 to establish a taxpaid wine bottling house premises. A person desiring to conduct taxpaid United States or foreign wine operations, other than bottling or packing taxpaid wine, at bonded wine premises shall include in their application, as provided in § 24.109, the establishment of taxpaid wine premises. (a) Taxpaid wine premises. (b) Taxpaid wine bottling house premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1381, as amended (26 U.S.C. 5352, 5363)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.103 Other operations. Upon the specific approval of the appropriate TTB officer, other operations not provided for in this part may be conducted on wine premises. Authority to conduct other operations may be obtained by submitting an application to the appropriate TTB officer. The application must specifically describe the operation to be conducted and the wine premises and equipment to be used. An appropriate TTB officer may make any inquiry necessary to determine whether the conduct of other operations on wine premises would jeopardize the revenue, conflict with wine operations, or be contrary to law. Other operations authorized under this section will be conducted in accordance with the conditions, limitations, procedures, and terms stated in the approved application. Authority to conduct other operations may be withdrawn whenever the appropriate TTB officer determines the conduct of the other operations on wine premises jeopardizes the revenue, conflicts with wine operations, or is contrary to law. [T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] Application § 24.105 General. A person desiring to establish a bonded winery, bonded wine cellar or taxpaid wine bottling house shall file an application on TTB F 5120.25, Application to Establish and Operate Wine Premises. Approval of TTB F 5120.25 will constitute authorization for the proprietor to operate.

The premises may not be used for the conduct of operations under this part unless the proprietor has a valid approved application for the operations.

The application will be executed under the penalties of perjury and all written statements, affidavits, and any document incorporated by reference will be considered a part of the application.

In any instance where a bond is required to be given under § 24.146 or a permit obtained to engage in an operation, the currently approved application will not be valid with respect to that operation if the bond or permit is no longer in effect.

In this case, the proprietor shall again file an application and obtain approval before engaging in operations at the wine premises. A new application is not required when a strengthening bond is filed pursuant to § 24.153 or a new bond or superseding bond is filed pursuant to § 24.154. The appropriate TTB officer may require the filing of a new or an amended application in any instance where the currently approved application is inadequate or incorrect in any respect. (August 16, 1954, Ch. 736, 68A Stat. 749, as amended (26 U.S.C. 6065); sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1392, as amended (26 U.S.C. 5356, 5511)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] § 24.106 Basic permit requirements. Any person intending to engage in the business of producing or blending wine or purchasing wine for resale at wholesale is required under the Federal Alcohol Administration Act, as amended (49 Stat. 978; 27 U.S.C. 203) to obtain a basic permit. A State, a political subdivision of a State, or officers or employees of a State or political subdivision acting in their official capacity are exempted from this requirement. The issuance of a basic permit under the Act is governed by regulations in 27 CFR part 1. Where a basic permit is required to engage in an operation, an application for a basic permit will be filed at the time of filing an original or amended application on TTB F 5120.25. Operations requiring a basic permit may not be conducted until the basic permit application is approved. No Wine Producer's and Blender's Basic Permit or Wine Blender's Basic Permit is required for a bonded wine cellar established only for the purpose of storing untaxpaid wine even though an approved application, TTB F 5120.25, and bond are required. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] § 24.107 Designation as a bonded winery. Bonded wine premises which will be used for the production of wine or for production processes involving the use of wine will be designated a bonded winery unless the proprietor applies for a bonded wine cellar designation. If the proprietor of a bonded wine premises designated as a bonded winery does not engage in wine production operations, the appropriate TTB officer may notify the proprietor that the designation of the premises is changed from a bonded winery to a bonded wine cellar. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended (26 U.S.C. 5351)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.108 Bonded wine warehouse application. A warehouse company or other person desiring to establish a bonded wine warehouse on bonded wine premises for storing wine or allied products for credit purposes shall file an application, in letter form, with the appropriate TTB officer. The name and address of the applicant and of the bonded wine premises, and the approximate area and storage capacity (in gallons) of the bonded wine warehouse, will be stated in the application. The application will be accompanied by a signed statement from the proprietor of the bonded wine premises requesting the establishment of the warehouse, and the consent of the surety of the bond for the bonded wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5353)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.109 Data for application. The TTB F 5120.25 is prepared in accordance with the instructions on the form and will include the following, as applicable: (a) Serial number; (b) Name and principal business address of the applicant and the address of the wine premises if different from the business address; (c) Statement of the type of business organization and of each person having an interest in the business, supported by the items of information listed in § 24.110; (d) Indicate whether the application is for the purpose of establishing a bonded winery, bonded wine cellar, or taxpaid wine bottling house. Also, indicate whether a taxpaid wine premises is to be established if the application is for a bonded winery or bonded wine cellar; (e) List of the offices, the incumbents of which are authorized by the articles of incorporation or the board of directors to act on behalf of the proprietor or to sign the applicant's name; (f) Description of the premises (see § 24.111); (g) Trade names (see § 24.112); (h) Description of spirits operations; (i) With respect to wine premises to which the application relates, a list of the applicant's basic permits and bonds (including those filed with the application) showing the name of the surety for each bond; (j) Description of volatile fruit-flavor concentrate operations (see § 24.113); (k) If other operations not specifically authorized by this part are to be conducted on wine premises, a description of the operations, a list of the premises, and a statement as to the relationship, if any, of the operation to wine operations on wine premises. If any of the information required by paragraph (c) of this section is on file with the appropriate TTB officer in connection with any other premises operated by the applicant, that information, if accurate and complete, may be incorporated by reference and made a part of the application. In this case, the name, address, and if any, registry number of the premises where the information is filed will be stated in the application. (l) A statement whether the applicant is required to furnish a bond under § 24.146; and (m) The applicant shall, when required by the appropriate TTB officer, furnish as part of the application, additional information as may be necessary to determine whether the application should be approved. If any of the submitted information changes during the pending application, the applicant shall immediately notify the appropriate TTB officer of the revised information. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1392, as amended (26 U.S.C. 5356, 5361, 5511)) (Approved by the Office of Management and Budget under control number 1513-0009) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017; T.D. TTB-159, 85 FR 33542, June 2, 2020] § 24.110 Organizational documents. The supporting information required by paragraph (c) of § 24.109, includes, as applicable, copies of: (a) Corporate documents. (2) List of the directors and officers, showing their names and addresses. (3) Certified extracts or digests of minutes of meetings of the board of directors, authorizing certain individuals to sign for the corporation. (4) Statement showing the number of shares of each class of stock or other evidence of ownership, authorized and outstanding, and the voting rights of the respective owners or holders of stock. (b) Articles of partnership. (c) Statement of interest. (2) In the case of an individual owner or partnership, the name and address of each person interested in the wine premises, whether the interest appears in the name of the interested party or in the name of another for that person. (d) Availability of additional corporate documents. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999] § 24.111 Description of premises. The application will include a description of each tract of land comprising wine premises. The description will be by directions and distances, in feet and inches (or hundredths of feet), with sufficient particularity to enable ready determination of the bounds of the wine premises. When required by the appropriate TTB officer, a diagram of the wine premises, drawn to scale, will be furnished. The description will clearly indicate any area of the wine premises to be used as bonded wine premises, used as taxpaid wine premises, or alternated for use as bonded wine premises and taxpaid wine premises. The means employed to afford security and protect the revenue will be described. If required by the appropriate TTB officer to segregate operations within the premises, the manner by which the operations are segregated will be described. Each building on wine premises will be described as to size, construction, and use. Buildings on wine premises which will not be used for wine operations will be described only as to size and use. If the wine premises consist of a part of a building, the rooms or floors will be separately described. The activities conducted in the adjoining portions of the building and the means of ingress and egress from the wine premises will be described. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1381, as amended (26 U.S.C. 5356, 5357, 5365)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.112 Name of proprietor and trade names. The applicant shall list on the application, TTB F 5120.25, the proprietor's name or the operating trade name, if different than the proprietor's name, and any bottling or packing trade names. However, if a bottling or packing trade name is listed on a basic permit issued to the proprietor under the Federal Alcohol Administration Act (49 Stat 978; 27 U.S.C. 204), that trade name is not required to be listed again on the application. If State or local law requires the registration of a trade name, the applicant shall certify that each trade name listed on the application is so registered. A trade name may not be used prior to approval of the application or issuance of a basic permit covering the use of the name. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.113 Description of volatile fruit-flavor concentrate operations. Each applicant intending to produce volatile fruit-flavor concentrate shall include on the TTB F 5120.25 application a step-by-step description of the production procedure to be employed. The description will commence with the obtaining of juice from the fruit and continue through each step of the process to removal of volatile fruit-flavor concentrate from the system. If volatile fruit-flavor concentrate containing more than 24 percent alcohol (high-proof concentrates (essences)) is to be produced, the proprietor shall indicate any step in the production procedure at which any spirits may be fit for beverage purposes. The maximum quantity in gallons of fruit must used and volatile fruit-flavor concentrate produced in 24 hours, the maximum and minimum fold, and the maximum percent of alcohol in the volatile fruit-flavor concentrate will be stated for each kind of fruit used. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1392, as amended (26 U.S.C. 5356, 5361, 5511)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 24.114 Registry of stills. Any still intended for use in the production of volatile fruit-flavor concentrate will be set up on bonded wine premises. Each still is subject to the provisions of subpart C of part 29 of this chapter and will be registered. The listing of a still in the application, and the approval of the application, will, as provided in 27 CFR 29.55, constitute registration. (Sec. 201, Pub. L. 85-859, 72 Stat. 1355, as amended, 1379, as amended, 1392, as amended (26 U.S.C. 5179, 5356, 5511)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999; T.D. ATF-462, 66 FR 42737, Aug. 15, 2001] § 24.115 Registry number. Upon approval of the application, the appropriate TTB officer will assign a registry number to the bonded winery, bonded wine cellar, or taxpaid wine bottling house. The registry number will be used in all correspondence and on all documents filed subsequently in connection with the operation of the premises and will be shown where required on labels and markings of containers or cases filled at the wine premises. (Approved by the Office of Management and Budget under control numbers 1512-0058 and 1512-0503) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.116 Powers of attorney. The proprietor shall file with the appropriate TTB officer a power of attorney for each person authorized to sign or to act on behalf of the proprietor as an attorney-in-fact. A power of attorney is not required for any person whose authority has been furnished in the application. If not limited in duration, the power of attorney will continue in effect until written notice of revocation is received by the appropriate TTB officer or operations are terminated. (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999] § 24.117 Maintenance of application file. The proprietor shall maintain an application file with the information required by § 24.109 in complete and current condition, readily available at the wine premises for inspection by appropriate TTB officers. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356, 5367)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] Changes Subsequent to Original Establishment § 24.120 Amended application. Where there is a change in any of the information included in the current approved application, the proprietor shall, within 30 days of the change (except as otherwise provided in this part), submit an amended application to the appropriate TTB officer and set forth the information necessary to make the application file accurate and current. Where the change affects only pages or parts of pages of the current application, as many complete pages as will enable the replacement of the pages affected and maintenance of the file as provided in § 24.117 will be submitted. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.121 Changes affecting permits. The proprietor shall follow the provisions of 27 CFR part 1 to effect any change pertaining to a permit issued under the Federal Alcohol Administration Act. (49 Stat. 978; 27 U.S.C. 203). § 24.122 Change in name of proprietor or trade name. Where there is to be a change in the name of the proprietor or operating trade name, the proprietor shall file an amended application and, if a basic permit has been issued under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203), an application for amendment of the basic permit. Where there is a change in or addition of a trade name, the proprietor shall file an amended application or, if a basic permit has been issued under the Federal Alcohol Administration Act (49 Stat. 978; 27 U.S.C. 203), an application for amendment of the basic permit. Operations under a new name may not be conducted before approval of the amended application or issuance of an amended permit, as the case may be. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.123 Change in stockholders. If there is a change in the list of stockholders furnished under the provisions of § 24.110(c)(1), the proprietor may, in lieu of submission within 30 days of the change under the provisions of § 24.120, submit a new list of stockholders annually on May 1, or any other approved date, to the appropriate TTB officer which has on file the list of stockholders, provided the sale or transfer of capital stock does not result in a change in the control or management of the business. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.124 Change in corporate officers. Where there is any change in the list of corporate officers furnished under the provisions of § 24.110(a)(2), the proprietor shall submit, within 30 days of the change, an amended application supported by a new list of corporate officers and a statement of the changes reflected in the new list. Where the proprietor has shown that certain corporate officers listed on the original application have no responsibilities in connection with the operations covered by the application, the appropriate TTB officer may waive the requirement for submitting an amended application to cover a change in those corporate officers. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.125 Change in proprietorship. (a) General. (b) Fiduciary. (c) Exception. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.126 Change in proprietorship involving a bonded wine warehouse. Where a bonded wine warehouse has been established on wine premises and it is desired to continue the operation of the bonded wine warehouse subsequent to a change in the proprietorship of the bonded winery or bonded wine cellar, the proprietor of the bonded wine warehouse shall file a letter application, accompanied by an affirming statement from the new proprietor of the bonded winery or bonded wine cellar, requesting the continuation of the bonded wine warehouse and also file evidence of sufficient bond coverage, except where § 24.146(d) does not require bond coverage. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5353)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] § 24.127 Adoption of formulas. The adoption of approved formulas by a successor proprietor will be in the form of an application, filed with the appropriate TTB officer. The application will list the formulas for adoption by formula number, name of product, and date of approval. The application will clearly show that the outgoing proprietor has authorized the successor proprietor's use of the approved formulas. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.128 Continuing partnerships. If, under the laws of the particular State, the partnership is not terminated upon the death or insolvency of a partner but continues until the dissolution of the partnership is completed, and the surviving partner has the exclusive right to the control and possession of the partnership assets for the purpose of liquidation and settlement, the surviving partner may continue to operate the wine premises under the prior qualification of the partnership, provided a consent of surety is filed wherein the surety and the surviving partner agree to remain liable on any bond covering the bonded wine premises. A surviving partner who acquires the business on completion of the dissolution of the partnership shall qualify from the date of acquisition, as provided in § 24.125(a). The rule set forth in this section will also apply where there is more than one surviving partner. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.129 Change in location. Where there is a change in the location of wine premises, the proprietor shall file an amended application and an application for amendment of the basic permit, if any, and if a bond has been filed, either a new bond or a consent of surety. Operation of wine premises may not be commenced at the new location prior to approval of the amended application and issuance of any amended permit. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.130 Change in volatile fruit-flavor concentrate operations. If the proprietor desires to make any change in the process employed to produce volatile fruit-flavor concentrate and the change affects the accuracy of the description of process included in the application, the proprietor shall file an amended application to include the amended or new process. The new or changed process may not be used prior to approval of the amended application. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1392, as amended (26 U.S.C. 5356, 5511)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.131 Change in building construction and use of premises. Where a change is to be made to buildings located on wine premises, or in the use of any portion of the wine premises, which affects the accuracy of the application, the proprietor shall, before making such change in construction or use, submit a notice to the appropriate TTB officer. The notice will describe the proposed change in detail. The proprietor shall include the change covered by the notice in the next amended TTB F 5120.25 required to be filed, unless the appropriate TTB officer requires immediate amendment. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5356)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31077, July 9, 1991; T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] § 24.132 Change in bond status. A proprietor must file an amended application if the proprietor's bond status changes in either of the following ways: (a) A proprietor who has not furnished any bond becomes required to furnish a bond as provided under § 24.154(b); or (b) A proprietor who has furnished a bond becomes exempt from bond requirements under § 24.146(d) and chooses to terminate all bond coverage as provided under § 24.160. [T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] Alternation § 24.135 Wine premises alternation. (a) General. vice versa. (b) Qualifying documents. (1) A statement on the application TTB F 5120.25 that an alternation of wine premises will occur; (2) Evidence of existing bond, consent of surety, or a new bond covering the alternation, except in cases where § 24.146(d) does not require a bond or bonds; (3) A description of how taxpaid wine or spirits, or untaxpaid wine or spirits will be identified and segregated; and (4) Any other document or additional information the appropriate TTB officer may require. (c) Alternation. (d) Segregation. (e) Conditions. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C. 5356, 5357, 5361, 5363, 5365, 5367)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. ATF-455, 66 FR 29483, May 31, 2001; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] § 24.136 Procedure for alternating proprietors. (a) General. (b) Alternation. (c) Bonds. (d) Records. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1380, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5351, 5352, 5354, 5356, 5361, 5362, 5363, 5367, 5373)) (Approved by the Office of Management and Budget under control numbers 1512-0058, 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] § 24.137 Alternate use of the wine premises for customs purposes. (a) General. (b) Qualifying documents. (1) TTB F 5120.25 to cover the alternation; (2) A diagram clearly depicting any area, building, floor, room or major equipment in use during the alternation; and (3) Any other documents or additional information the appropriate TTB officer may require. (c) Alternation. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C. 5356, 5357, 5361, 5365, 5367)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024] Permanent Discontinuance of Operations § 24.140 Notice. (a) General. (b) Bonded wine premises. (1) All wine, spirits, or volatile fruit-flavor concentrate have been lawfully removed from bonded wine premises, destroyed, or transferred to a successor as of the effective date of discontinuance, (2) No wine, spirits, or volatile fruit-flavor concentrate are in transit to bonded wine premises, and (3) All approved applications covering the transfer of spirits to bonded wine premises have been returned to the appropriate TTB officer. The proprietor shall submit a report marked “Final” on the TTB F 5120.17, Report of Bonded Wine Premises Operations. Any wine, spirits, or volatile fruit-flavor concentrate transferred to a successor will be identified as “Transferred to successor” on the report and identified as “Received from predecessor” on the initial report filed by the successor. (c) Taxpaid wine bottling house premises or Taxpaid wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control numbers 1512-0058 and 1512-0216) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.141 Bonded wine warehouse. Where all operations at a bonded wine warehouse are to be permanently discontinued, the warehouse proprietor shall file with the appropriate TTB officer a notice in letter form to cover the discontinuance. The warehouse proprietor shall state in the notice the name, registry number, and address of the wine premises on which the warehouse facilities are located and the date on which operations of the bonded wine warehouse will be discontinued. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5353)) (Approved by the Office of Management and Budget under control number 1512-0292) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] Bonds and Consents of Surety § 24.145 General requirements. Each person required to file a bond or consent of surety under this part must prepare, execute and submit the bond or consent of surety on the prescribed form in accordance with this part and the instructions printed on the form. A person may not commence or continue any business or operation relating to wine until all bonds and consents of surety required under this part with respect to the business or operation have been approved by the appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] § 24.146 Bonds. (a) Wine bond. (b) Tax deferral bond. (c) Wine vinegar plant bond. (d) Bonds covering wine for nonindustrial use and industrial use Nonindustrial use. (2) Industrial use. (3) Nonindustrial use and industrial use defined. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 U.S.C. 5354, 5362)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. TTB-79, 74 FR 37404, July 28, 2009; T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] § 24.147 Operations bond or unit bond. Notwithstanding the provisions of § 24.146, each person intending to commence or to continue business as the proprietor of a bonded wine premises with an adjacent or contiguous distilled spirits plant qualified under 27 CFR part 19 for the production of distilled spirits shall, in lieu of a winery bond and the bonds required under the provisions of 26 U.S.C. 5173, as amended, give an operations bond or unit bond in accordance with the applicable provisions of 27 CFR part 19. See § 19.151(d) of this chapter for circumstances under which a bond is not required with respect to operations and withdrawals of distilled spirits. (Sec. 805(c), Pub. L. 96-39, 93 Stat. 276 (26 U.S.C. 5173)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] § 24.148 Penal sums of bonds. The penal sums of bonds prescribed in this part are as follows: Bond Basis Penal sum Minimum Maximum (a) Wine Bond, TTB F 5120.36 (1) Wine operations coverage. (i) Not less than the tax on all wine or spirits possessed, in transit, or unaccounted for at any one time, taking into account the appropriate small producer wine tax credit $1,000 $50,000 (ii) Where the liability exceeds $250,000 100,000 (2) Tax deferral coverage. Where the unpaid tax amounts to more than $500, not less than the amount of tax which, at any one time, has been determined but not paid. Exception: $1,000 of the wine operations coverage may be allocated to cover the amount of tax which, at any one time, has been determined but not paid, if the total operations coverage is $2,000 or more 500 250,000 (b) Wine Vinegar Plant Bond, TTB F 5510.2 Not less than the tax on all wine on hand, in transit, or unaccounted for at any one time 1,000 100,000 * The proprietor of bonded wine premises who operates an adjacent or contiguous wine vinegar plant with a wine bond that does not cover the operation may file a consent of surety to extend the terms of the wine bond in lieu of filing a wine vinegar plant bond. (26 U.S.C. 5354, 5362) (Approved by the Office of Management and Budget under control number 1513-0009) [T.D. TTB-64, 72 FR 65454, Nov. 21, 2007] § 24.149 Corporate surety. (a) Surety bonds required by this part may be obtained only from corporate sureties which hold certificates of authority from and are subject to the limitations prescribed by the Secretary as set forth in the current revision of Treasury Department Circular 570, Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies. (b) Treasury Department Circular 570 is published in the Federal Register https://www.federalregister.gov https://fiscal.treasury.gov [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1124, Jan. 4, 2017; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024] § 24.150 Powers of attorney. Each bond, and each consent to changes in the terms of a bond, will be accompanied by a power of attorney whereby the surety authorizes the agent or officer who executed the bond or consent to act on behalf of the surety. The appropriate TTB officer may require additional evidence of the authority of the agent or officer of the surety to execute the bond or consent. The power of attorney will be prepared on a form provided by the surety and executed under the corporate seal of the surety. If the power of attorney is other than a manually signed original, the appropriate TTB officer may require a certification of validity. (July 30, 1947, Ch. 390, Pub. L. 80-280, 61 Stat. 648, as amended (26 U.S.C. 6, 7)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.151 Deposit of collateral security. Bonds or notes of the United States, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States, may be pledged and deposited as collateral security in lieu of corporate sureties in accordance with the provisions of the Treasury Department regulations in 31 CFR part 225, Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties. Cash, postal money orders, certified checks, cashiers' checks, or treasurers' checks may also be furnished as collateral security in lieu of corporate sureties. (July 30, 1947, Ch. 390, 61 Stat. 650 (6 U.S.C. 15); August 16, 1954, Ch. 736, 68A Stat. 847, as amended (26 U.S.C. 7101)) [T.D. TTB-146, 82 FR 1124, Jan. 4, 2017] § 24.152 Consents of surety. Consents of surety to changes in the terms of bonds will be executed on TTB Form 5000.18 by the principal and by the surety with the same formality and evidence of authority as is required for the execution of bonds. (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1125, Jan. 4, 2017] § 24.153 Strengthening bonds. In any instance where the penal sum of the bond on file becomes insufficient, the principal shall either give a strengthening bond with the same surety to attain a sufficient penal sum or give a new bond covering the entire liability. Strengthening bonds will not be approved where any notation is made thereon which is intended, or which may be construed, as a release of any former bond, or as limiting the amount of either bond to less than its full penal sum. Strengthening bonds will show the current date of execution and the effective date. (Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.154 Superseding bonds and new bonds for existing proprietors. (a) Superseding bonds. (b) New bonds for existing proprietors General. (2) Grace period for wine bonds under § 24.146(a). (3) Tax deferral bonds under § 24.146(b). (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended, 1394, as amended (26 U.S.C. 5354, 5362, 5551)) (Approved by the Office of Management and Budget under control number 1513-0009) [T.D. TTB-146, 82 FR 1125, Jan. 4, 2017] § 24.155 Disapproval and appeal from disapproval. (a) Disapproval. (1) Any fraudulent noncompliance with any provision of any law of the United States, if such provision relates to internal revenue or customs taxation of distilled spirits, wine, or beer, or if such offense has been compromised with the person on payment of penalties or otherwise, or (2) Any felony under a law of any State, or of the District of Columbia, or of the United States, prohibiting the manufacture, sale, importation, or transportation of distilled spirits, wine, beer, or other intoxicating liquor. (b) Appeal from disapproval. (Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.156 Termination of bonds. A bond prescribed in § 24.146 may be terminated as to future liability pursuant to application by the surety as provided in § 24.157; pursuant to approval of a superseding bond; upon receipt of notification from the principal that the business has been discontinued and all wine and spirits have been removed from the bonded wine premises as provided in § 24.140(b); pursuant to an application by an existing proprietor who becomes exempt from bond requirements as provided in § 24.160; or in the case of a tax deferral bond, the termination will be issued upon receipt of written notification from the principal that removals of wine requiring a tax deferral bond have been discontinued. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended (26 U.S.C. 5354)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1125, Jan. 4, 2017] § 24.157 Application by surety for relief from bond. A surety on any bond required by this part may at any time, in writing, notify the principal and the appropriate TTB officer in whose office the bond is on file, that it desires after a specified date, to be relieved of liability under the bond. The date may not be less than 10 days after the date notice is received by the appropriate TTB officer in the case of a tax deferral bond, and not less than 90 days after the date the notice is received in the case of a bonded wine premises bond or wine vinegar plant bond. The surety will also file with the appropriate TTB officer an acknowledgment, or other evidence of service, of a notice on the principal. The 10 day or 90 day period does not commence until both the acknowledgment or other evidence of service and the notice are filed. If a notice is not thereafter withdrawn in writing, the rights of the principal as supported by the bond will be terminated on the date specified in the notice, and the surety will be relieved from liability to the extent set forth in § 24.158. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 U.S.C. 5354, 5362)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.158 Extent of relief. (a) General. (b) Wine bond. (c) Tax deferral bond. (d) Wine vinegar plant bond. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1380, as amended (26 U.S.C. 5354, 5362)) (Approved by the Office of Management and Budget under control number 1512-0058) § 24.159 Release of collateral security. Collateral security pledged and deposited will be released only in accordance with the provisions of 31 CFR part 225. The collateral security will not be released by the appropriate TTB officer until liability under the bond for which it was pledged has been terminated. If satisfied that the interests of the Government will not be jeopardized, the appropriate TTB officer will fix the date or dates on which a part or all of the collateral security may be released. At any time prior to the release of the collateral security, the appropriate TTB officer may, for proper cause, extend the date of release of the security for such additional length of time as deemed appropriate. (July 30, 1947, Ch. 390, Pub. L. 80-280, 61 Stat. 650 (31 U.S.C. 9301, 9303)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.160 Application to terminate bond by existing proprietor who becomes exempt from bond requirements. If a proprietor has held a bond or bonds covering operations or withdrawals of wine for nonindustrial use and becomes exempt from those bond requirements as provided under § 24.146(d), the proprietor may apply to TTB to terminate the bond or bonds covering such operations or withdrawals. To apply, the proprietor must file an amended application as provided in § 24.132. The proprietor must accurately state in the submission that the proprietor: (a) Will withdraw wine for deferred payment of tax under § 24.271; (b) Reasonably expects to be liable for not more than $50,000 in taxes with respect to wine imposed by 26 U.S.C. 5041 and 7652 for the current calendar year (see definition of “Reasonably expects” in § 24.271(b)(1)(iv)(B)); and (c) Was liable for not more than $50,000 in such taxes in the preceding calendar year. [T.D. TTB-146, 82 FR 1125, Jan. 4, 2017] Subpart E—Construction and Equipment § 24.165 Premises. Wine premises will be located, constructed, and equipped, subject to approval by the appropriate TTB officer, in a manner suitable for the operations to be conducted and to afford adequate protection to the revenue. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1380, as amended, 1381, as amended (26 U.S.C. 5351, 5352, 5357, 5361, 5363)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.166 Buildings or rooms. All buildings or rooms on wine premises in which wine operations or other operations as are authorized in this part are conducted will be located, constructed, and equipped in a manner suitable for the intended purpose and to afford adequate protection to the revenue. Each building or room will be constructed of substantial materials and separated from adjacent or contiguous buildings, rooms, or designated areas in a manner satisfactory to the appropriate TTB officer. Where spirits are to be received and stored in packages, a storage room equipped for locking will be provided. The proprietor shall make provisions to assure TTB officers have ready ingress to and egress from any building or room on wine premises, and shall furnish at the request of the appropriate TTB officer evidence that the means of ingress and egress by TTB officers are assured. Where the appropriate TTB officer finds that any building or room on wine premises is located, constructed, or equipped as to afford inadequate protection to the revenue, the proprietor will be required to make changes in location, construction, or equipment to the extent necessary to afford adequate protection to the revenue. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended (26 U.S.C. 5352, 5357)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.167 Tanks. (a) General. (b) Other requirements. (1) An accurate means of measuring the contents of each tank will be provided by the proprietor. When a means of measuring is not a permanent fixture of the tank, the tank will be equipped with a fixed device to allow the approximate contents to be determined readily; (2) Safe access to all parts of a tank will be provided by the proprietor; (3) Tanks may not be used until they are accurately calibrated and a statement of certification of accurate calibration is on file at the premises; (4) If a tank or its means of measuring is changed as to location or position subsequent to original calibration, the tank may not be used until recalibrated; and (5) All openings in tanks used for the storage, weighing, or measuring of spirits, or for the addition of spirits to wine, will be equipped for locking or have a similar means of revenue protection. Any vents, flame arrestors, foam devices, or other safety devices affixed to a spirits tank will be constructed to prevent extraction of the contents of the tank. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5552)) (Approved by the Office of Management and Budget under control number 1512-0058) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.168 Identification of tanks. (a) General. (b) Tank markings. (2) Each tank will be marked to show its current use, either by permanent markings or by removable signs of durable material; and (3) If used to store wine made in accordance with a formula, the formula number will be marked or otherwise indicated on the tank. (c) Puncheon and barrel markings. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended (26 U.S.C. 5352, 5357)) (Approved by the Office of Management and Budget under control number 1512-0503) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 24.169 Pipelines. Pipelines, including flexible hoses, used to convey wine, spirits, or volatile fruit-flavor concentrate will be constructed, connected, arranged, and secured so as to afford adequate protection to the revenue and to permit ready examination. The appropriate TTB officer may approve pipelines which cannot be readily examined if no jeopardy to the revenue is created. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5552)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.170 Measuring devices and testing instruments. (a) Measuring devices. (b) Testing instruments. (Sec. 201, Pub. L. 85-859, 72 Stat. 1379, as amended, 1395, as amended (26 U.S.C. 5357, 5552)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] Subpart F—Production of Wine § 24.175 General. The kinds of wine which may be produced on bonded wine premises are as follows: (a) Natural wine produced in accordance with subparts F and G of this part; (b) Special natural wine produced in accordance with subpart H of this part; (c) Agricultural wine produced in accordance with subpart I of this part; and (d) Other than standard wine produced in accordance with subpart J of this part. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1383, as amended, 1384, as amended, 1385, as amended, 1386, as amended (26 U.S.C. 5361, 5382, 5384, 5385, 5386, 5387)) § 24.176 Crushing and fermentation. (a) Natural wine production. (b) Determination of wine produced. [T.D. ATF-312, 56 FR 31078, July 9, 1990, as amended by ATF-338, 58 FR 19064, Apr. 12, 1993] § 24.177 Chaptalization (Brix adjustment). In producing natural grape wine from juice having a low sugar content, pure dry sugar or concentrated grape juice may be added before or during fermentation to develop alcohol. In producing natural fruit wine from juice having a low sugar content, sugar, or concentrated juice of the same kind of fruit may be added before or during fermentation to develop alcohol. The quantity of sugar or concentrated juice added may not raise the original density of the juice above 25 degrees Brix. If grape juice or grape wine is ameliorated after chaptalization, the quantity of pure dry sugar added to juice for chaptalization will be included as ameliorating material. If fruit juice or fruit wine is ameliorated after chaptalization, pure dry sugar added under this section is not considered as ameliorating material. However, if fruit juice or fruit wine is ameliorated after chaptalization and liquid sugar or invert sugar syrup is used to chaptalize the fruit juice, the volume of water contained in the liquid sugar or invert sugar syrup will be included as ameliorating material. (Sec. 201, Pub. L. 85-859, 72 Stat. 1385, as amended (26 U.S.C. 5382, 5384)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991; T.D. ATF-413, 64 FR 46844, Aug. 27, 1999] § 24.178 Amelioration. (a) General. (b) Limitations. (2) The ameliorating material added to juice or wine may not reduce the fixed acid level of the ameliorated juice or wine to less than 5.0 grams per liter. (3) For all wine, except for wine described in paragraph (b)(4) of this section, the volume of ameliorating material added to juice or wine may not exceed 35 percent of the total volume of ameliorated juice or wine (calculated exclusive of pulp). Where the starting fixed acid level is or exceeds 7.69 grams per liter, a maximum of 538.4 gallons of ameliorating material may be added to each 1,000 gallons of wine or juice. (4) For wine produced from any fruit (excluding grapes) or berry with a natural fixed acid of 20 parts per thousand or more (before any correction of such fruit or berry), the volume of ameliorating material added to juice or wine may not exceed 60 percent of the total volume of ameliorated juice or wine (calculated exclusive of pulp). If the starting fixed acid level is or exceeds 12.5 grams per liter, a maximum of 1,500 gallons of ameliorating material may be added to each 1,000 gallons of wine or juice. (26 U.S.C. 5383, 5384). [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-403, 64 FR 50253, Sept. 16, 1999; T.D. ATF-458, 66 FR 37578, July 19, 2001] § 24.179 Sweetening. (a) General. (b) Grape wine. (c) Fruit wine. (d) Specially sweetened natural wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended, 1384, as amended, 1385, as amended, 1386, as amended (26 U.S.C. 5382, 5383, 5384, 5385)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991] § 24.180 Use of concentrated and unconcentrated fruit juice. Concentrated fruit juice reduced with water to its original density, or to 22 degrees Brix, or to any degree of Brix between its original density and 22 degrees Brix, and unconcentrated fruit juice reduced with water to not less than 22 degrees Brix, is considered juice for the purpose of standard wine production. Concentrated fruit juice reduced with water to any degree of Brix greater than 22 degrees Brix may be further reduced with water to any degree of Brix between its original density and 22 degrees Brix. The proprietor, prior to using concentrated fruit juice in wine production, shall obtain a statement in which the producer certifies the kind of fruit from which it was produced and the total solids content of the juice before and after concentration. Concentrated or unconcentrated fruit juice may be used in juice or wine made from the same kind of fruit for the purposes of chaptalizing or sweetening, as provided in this part. Concentrated fruit juice, or juice which has been concentrated and reconstituted, may not be used in standard wine production if at any time it was concentrated to more than 80 degrees Brix. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-413, 64 FR 46845, Aug. 27, 1999] § 24.181 Use of sugar. Only sugar, as defined in § 24.10, may be used in the production of standard wine. The quantity of sugar used will be determined either by measuring the increase in volume or by considering that each 13.5 pounds of pure dry sugar results in a volumetric increase of one gallon. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended, 1384, as amended, 1385, as amended, 1387, as amended (26 U.S.C. 5382, 5383, 5384, 5392)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991] § 24.182 Use of acid to correct natural deficiencies. (a) General. (b) Grape wine. (c) Fruit wine. (d) Other use of acid. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31078, July 9, 1991; T.D. ATF-350, 58 FR 52230, Oct. 7, 1993] § 24.183 Use of distillates containing aldehydes. Distillates containing aldehydes may be received on wine premises for use in the fermentation of wine and then returned to the distilled spirits plant from which distillates were withdrawn as distilling material. Distillates produced from one kind of fruit may not be used in the fermentation of wine made from a different kind of fruit. Distillates containing aldehydes which are received at bonded wine premises and not immediately used will be placed in a locked room or tank on bonded wine premises. Distillates containing aldehydes may not be mingled with wine spirits. If the distillates contain less than 0.1 percent of aldehydes, the proprietor shall comply with any additional condition relating to the receipt, storage, and use which the appropriate TTB officer may require to assure that the distillates are properly used and accounted for. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended (26 U.S.C. 5367, 5373)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.184 Use of volatile fruit-flavor concentrate. (a) General. (b) Use of juice or must from which volatile fruit-flavor has been removed. (c) Certificate required. (Sec. 201. Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.185 Use of wood to treat natural wine. (a) Treatment by contact. (b) Use of wood essences and extracts. (c) Use of wooden storage tanks. [T.D. TTB-185, 87 FR 51897, Aug. 24, 2022] § 24.186 Accidental additions of water. (a) Accidental additions of water totaling 1 percent or less of the volume of standard wine. (b) Correction of accidental additions of water. [T.D. TTB-185, 87 FR 51897, Aug. 24, 2022] Subpart G—Production of Effervescent Wine § 24.190 General. (a) Effervescent wine may be made on bonded wine premises. Where the effervescence results from fermentation of the wine within a closed container, the wine is classified and taxed as sparkling wine or as hard cider, as applicable. In such wine, the use of carbon dioxide, nitrogen gas, or a combination of both, is permitted to maintain counterpressure during transfer and bottling. Wine carbonated by injection of carbon dioxide is classified and taxed as artificially carbonated wine or as hard cider, as applicable. (For wine to be classified and taxed at the hard cider tax rate, it must meet the requirements set forth in § 24.331, including the limitation of not more than 0.64 gram of carbon dioxide per 100 milliliters.) (b) Effervescent wine and any wine used as a base in the production of effervescent wine may not have an alcohol content in excess of 14 percent by volume. However, wine containing more than 14 percent alcohol by volume may be used in preparing a dosage for finishing effervescent wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) [T.D. TTB-147, 82 FR 7663, Jan. 23, 2017] § 24.191 Segregation of operations. Where more than one process of producing effervescent wine is used, the appropriate TTB officer may require the portion of the premises used for the production and storage of wine made by each process (bottle fermenting, bulk fermenting, or injecting carbon dioxide) to be segregated as provided by § 24.27. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5365)) [T.D. TTB-147, 82 FR 7663, Jan. 23, 2017] § 24.192 Process and materials. In preparing still wine or still hard cider for the production of effervescent wine, sugar and acid of the kinds and within the limitations prescribed in § 24.182 may be added with yeast or yeast culture to acclimate the yeast and to facilitate the process of secondary fermentation or to correct the wine. Fruit syrup, sugar, wine, wine spirits, and acid may be used in preparing a finishing dosage for effervescent wine provided the dosage does not exceed 10 percent by volume of the finished product. Where the proprietor desires to use more than 10 percent by volume finishing dosage, the proprietor shall file for a formula approval under § 24.80. The fruit syrup, wine spirits and wine used will come from the same kind of fruit as the wine from which the effervescent wine is made. In the production of effervescent wine, taxpaid wine spirits or wine spirits withdrawn tax-free may be used. Tax-free wine spirits may only be used in the production of effervescent wine that is a natural wine. In the refermentation and finishing of a sparkling wine or sparkling hard cider, the acids and materials specifically authorized in § 24.246 may be used. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) (Approved by the Office of Management and Budget under control number 1512-0059) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7663, Jan. 23, 2017] § 24.193 Conversion into still wine or still hard cider. Effervescent wine may be dumped for use as still wine or still hard cider. The dumping process will allow the loss of carbon dioxide remaining in the wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended (26 U.S.C. 5041, 5361)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7663, Jan. 23, 2017] Subpart H—Production of Special Natural Wine § 24.195 General. Special natural wine is a flavored wine made on bonded wine premises from a base of natural wine. The flavoring added may include natural herbs, spices, fruit juices, natural aromatics, natural essences or other natural flavoring, in quantities or proportions such that the resulting product derives character and flavor distinctive from the base wine and distinguishable from other natural wine. Fruit juices may not be used to give to one natural wine the flavor of another but may be used with herbs or spices to produce a wine having a distinctive flavor. Caramel and sugar may be used in a special natural wine. However, the minimum 60 degrees Brix limitations prescribed in the definition of “Liquid pure sugar” and “Invert sugar syrup” in § 24.10 do not apply to materials used in the manufacture of vermouth. Finished vermouth will contain a minimum of 80 percent by volume natural wine. Heavy bodied blending wine and juice or concentrated fruit juice to which wine spirits have been added may be used in the production of special natural wine pursuant to formula approval. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386)) (Approved by the Office of Management and Budget under control number 1512-0059) § 24.196 Formula required. Before producing any special natural wine, the proprietor shall receive approval of the formula by which it is to be made as provided by § 24.80. Any change in a formula will be approved in advance as provided by § 24.81. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386)) (Approved by the Office of Management and Budget under control number 1512-0059) § 24.197 Production by fermentation. In producing special natural wine by fermentation, flavoring materials may be added before or during fermentation. Special natural wine produced by fermentation may be ameliorated in the same manner and to the same extent as natural wine made from the same fruit. Spirits may not be added to special natural wine with the exception of spirits contained in the natural wine used as a base or in authorized essences made on bonded wine premises as provided in § 24.86 or in approved essences made elsewhere. Upon removal of the wine from fermenters, the volume of liquid will be determined accurately and recorded as wine produced. The quantity of liquid in fermenters at the close of each reporting period will be reported on the TTB F 5120.17, Report of Bonded Wine Premises Operations. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by ATF-338, 58 FR 19064, Apr. 12, 1993] § 24.198 Blending. Special natural wine may be blended with other special natural wine of the same class and kind, and with heavy bodied blending wine, or natural wine of the same kind of fruit, in the further production of special natural wine. The blending of special natural wines produced under different formulas requires the filing and approval of a formula authorizing a blending; however, where two or more formulas have been approved for the production of special natural wine of the same type, e.g., producing a sweet vermouth by blending sweet vermouths produced under two or more approved formulas, the submission and approval of an additional formula is not required. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5386)) (Approved by the Office of Management and Budget under control number 1512-0059) Subpart I—Production of Agricultural Wine § 24.200 General. Agricultural wine may be produced on bonded wine premises from suitable agricultural products other than the juice of fruit. Water or sugar, or both, may be used within the limitations of this subpart in the production of agricultural wine. Agricultural wine may not be flavored or colored; however, hops may be used in the production of honey wine. Spirits may not be used in the production of the wine and a wine made from one agricultural product may not be blended with a wine made from another agricultural product. Agricultural wine made with sugar in excess of the limitations of this subpart is other than standard wine and will be segregated and clearly identified. Since grain, cereal, malt, or molasses are not suitable materials for the production of agricultural wine, these materials may not be received on bonded wine premises. Beverage alcohol products made with these materials are not classed as wine and may not be produced or stored on bonded wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5387)) § 24.201 Formula required. Before producing any agricultural wine, the proprietor shall obtain an approval of the formula and process by which it is to be made pursuant to the provisions of § 24.80. Any change in a formula will be approved in advance as provided by § 24.81. (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended (26 U.S.C. 5387)) (Approved by the Office of Management and Budget under control number 1512-0059) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] § 24.202 Dried fruit. In the production of wine from dried fruit, a quantity of water sufficient to restore the moisture content to that of the fresh fruit may be added. If it is desired not to restore the moisture content of the dried fruit to that of the fresh fruit, or if the moisture content is not known, sufficient water may be added to reduce the density to 22 degrees Brix. If the dried fruit liquid after restoration is found to be deficient in sugar, sufficient pure dry sugar may be added to increase the total solids content to 25 degrees Brix. After addition of water to the dried fruit, the resulting liquid may be ameliorated with either water or sugar, or both, in such total volume as may be necessary to reduce the natural fixed acid level of the mixture to a minimum of 5.0 grams per liter; however, in no event may the volume of the ameliorating material exceed 35 percent of the total volume of the ameliorated juice or wine (calculated exclusive of pulp). Pure dry sugar may be used for sweetening. After complete fermentation or complete fermentation and sweetening, the finished product may not have a total solids content that exceeds 35 degrees Brix. (26 U.S.C. 5387) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-23, 70 FR 2801, Jan. 18, 2005] § 24.203 Honey wine. (a) Subject to paragraph (b) of this section, a winemaker, in the production of wine from honey, may add the following: (1) Water to facilitate fermentation, provided the density of the honey and water mixture is not reduced below 13 degrees Brix; (2) Hops in quantities not to exceed one pound for each 1,000 pounds of honey; and (3) Pure, dry sugar or honey for sweetening. Sugar may be added only after fermentation is completed. (b) After complete fermentation or complete fermentation and sweetening, the wine may not have an alcohol content of more than 14 percent by volume or a total solids content that exceeds 35 degrees Brix. (26 U.S.C. 5387) [T.D. TTB-23, 70 FR 2801, Jan. 18, 2005] § 24.204 Other agricultural products. In the production of wine from agricultural products, other than dried fruit and honey, water and sugar may be added to the extent necessary to facilitate fermentation; Provided, (Sec. 201, Pub. L. 85-859, 72 Stat. 1386, as amended, 1387, as amended (26 U.S.C. 5387)) Subpart J—Production of Other Than Standard Wine § 24.210 Classes of wine other than standard wine. The following classes of wine are not standard wine: (a) High fermentation wine, produced as provided in § 24.212; (b) Heavy bodied blending wine, produced as provided in § 24.213; (c) Spanish type blending sherry, produced as provided in § 24.214; (d) Wine products not for beverage use, produced as provided in § 24.215; (e) Distilling material, produced as provided in § 24.216; (f) Vinegar stock, produced as provided in § 24.217; and (g) Wines other than those in classes listed in paragraphs (a), (b), (c), (d), (e), and (f), of this section produced as provided in § 24.218. (Sec. 201, Pub. L. 85-859, 72 Stat. 1387, as amended (26 U.S.C. 5388)) § 24.211 Formula required. The proprietor who desires to produce wine other than standard wine shall first obtain approval of the formula by which it is to be made, except that no formula is required for distilling material or vinegar stock. The formula is filed as provided by § 24.80. Any change in the formula will be approved in advance as provided by § 24.81. (Sec. 201, Pub. L. 85-859, 72 Stat. 1387, as amended (26 U.S.C. 5388)) (Approved by the Office of Management and Budget under control number 1512-0059) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] § 24.212 High fermentation wine. High fermentation wine is wine made with the addition of sugar within the limitations prescribed for natural wine except that the alcohol content after complete fermentation or complete fermentation and sweetening is more than 14 percent and wine spirits have not been added. Although high fermentation wine is not a standard wine, it is produced, stored, and handled on bonded wine premises subject to the same marking or labeling requirements. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1387, as amended (26 U.S.C. 5365, 5388)) § 24.213 Heavy bodied blending wine. Heavy bodied blending wine is wine made for blending purposes from grapes or other fruit without added sugar, and with or without added wine spirits, and having a total solids content in excess of 21 percent. Heavy bodied blending wine may be used in blending with other wine made from the same kind of fruit or for removal upon payment of tax, not for sale or consumption as beverage wine. Upon removal, the shipping containers and shipping records will be marked “Heavy Bodied Blending Wine—Not for Sale or Consumption as Beverage Wine.” (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1387, as amended (26 U.S.C. 5361, 5388)) (Approved by the Office of Management and Budget under control numbers 1512-0298 and 1512-0503) § 24.214 Spanish type blending sherry. Blending wine made with partially caramelized grape concentrate may be produced, stored, and handled on, or transferred in bond between, bonded wine premises, or removed upon payment of tax, not for sale or consumption as beverage wine. Wine of a high solids content and dark in color, produced under this section, is designated “Spanish Type Blending Sherry.” Upon removal, the shipping containers will be marked with the applicable designation and the legend “Not for Sale or Consumption as Beverage Wine.” Spanish type blending sherry is not standard wine and may not be blended with standard wine except pursuant to an approved formula or in the further production of this type of wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1387, as amended (26 U.S.C. 5361, 5388)) (Approved by the Office of Management and Budget under control numbers 1512-0059 and 1512-0503) § 24.215 Wine or wine products not for beverage use. (a) General. (b) Salted wine. (c) Vinegar. (Sec. 201, Pub. L. 85-859 and Sec. 455, Pub. L. 98-369, 72 Stat. 1380, as amended (26 U.S.C. 5361, 5362)) (Approved by the Office of Management and Budget under control number 1512-0503) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991] § 24.216 Distilling material. Wine may be produced on bonded wine premises from grapes and other fruit, natural fruit products, or fruit residues, for use as distilling material, using any quantity of water desired to facilitate fermentation or distillation. No sugar may be added in the production of distilling material. Distillates containing aldehydes may be used in the fermentation of wine to be used as distilling material. Lees, filter wash, and other wine residues may also be accumulated on bonded wine premises for use as distilling material. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended, 1382, as amended (26 U.S.C. 5361, 5373)) § 24.217 Vinegar stock. Vinegar stock may be produced on bonded wine premises with the addition of any quantity of water desired to meet commercial standards for the production of vinegar. Vinegar stock may be made only by the addition of water to wine or by the direct fermentation of the juice of grapes or other fruit with added water. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended (26 U.S.C. 5361)) § 24.218 Other wine. (a) General. (1) Wine made with sugar, water, or sugar and water beyond the limitations prescribed for standard wine. (2) Wine made by blending wines produced from different kinds of fruit. (3) Wine made with sugar other than pure dry sugar, liquid pure sugar, and invert sugar syrup. (4) Wine made with materials not authorized for use in standard wine. (b) Production of other wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1387, as amended (26 U.S.C. 5365, 5388)) (Approved by the Office of Management and Budget under control number 1512-0503) Subpart K—Spirits § 24.225 Production and use of spirits. (a) Withdrawal of spirits. (b) Production and use of wine spirits In general. (i) Fresh or dried fruit or their residues; (ii) Natural wine or wine residues from fresh or dried fruit, including spirits byproducts of authorized wine treatments to reduce alcohol; or (iii) Special natural wine. If wine spirits produced from special natural wine contain any flavor characteristics of the special natural wine, those wine spirits may be used only in the production of a special natural wine. (2) Distillation proof requirements. (i) Commercial brandy aged in wood for a period of not less than 2 years, and barreled at not less than 100 degrees of proof, shall be deemed wine spirits for purposes of this section; and (ii) Spirits byproducts of alcohol reduction processing authorized under § 24.248 that are produced at a distilled spirits plant and distilled, if necessary, at not less than 90 degrees of proof shall be deemed wine spirits for purposes of this section. (3) Addition of sugar after fermentation. (4) Addition of wine spirits to natural wine. (ii) In the case of natural still wine, wine spirits may be added in any State only to wine produced by fermentation on bonded wine premises located within the same State. (iii) If wine has been ameliorated, wine spirits may be added (whether or not wine spirits were previously added) only if the wine contains not more than 14 percent of alcohol by volume derived from fermentation. (c) Spirits other than wine spirits. [T.D. TTB-185, 87 FR 51897, Aug. 24, 2022] § 24.226 Receipt or transfer of spirits. When spirits are received at the bonded wine premises, the proprietor shall determine that the spirits are the same as described on the transfer record and follow the procedures prescribed by § 19.407 of this chapter. A copy of the transfer record, annotated to show any difference between the description of spirits and quantity received, will be maintained by the proprietor as a record of receipt. If spirits are to be transferred to a distilled spirits plant or to bonded wine premises, the proprietor shall use the transfer record and procedures prescribed by § 19.405 of this chapter. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-92, 76 FR 9171, Feb. 16, 2011] § 24.227 Transfer of spirits by pipeline for immediate use. Spirits transferred by pipeline for immediate use are gauged either by weight or by volume on the bonded premises of the distilled spirits plant. Where the spirits are gauged on the bonded premises of the distilled spirits plant, the pipelines will be directly connected with the spirits addition tanks. The valves in the pipeline will be closed and locked with a lock at all times except when necessary to be opened for the transfer of spirits. Where the proprietor has placed wine in a spirits addition tank and has determined the quantity of spirits to be added, the spirits may be transferred. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991] § 24.228 Transfer of spirits by pipeline to a spirits storage tank. Where it is desired to transfer spirits by pipeline to bonded wine premises and store the spirits prior to use, there will be provided a suitable tank for storing the spirits. The spirits to be transferred, if not gauged on the bonded premises of the distilled spirits plant, will be gauged by weight or volume on bonded wine premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991] § 24.229 Tank car and tank truck requirements. Railroad tank cars and tank trucks used to transport spirits for use in wine production will be constructed, marked, filled, labeled, and inspected in the manner required by regulations in 27 CFR part 19. (Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended (26 U.S.C. 5206, 5214)) § 24.230 Examination of tank car or tank truck. Upon arrival of a tank car or tank truck at the bonded wine premises, the proprietor shall carefully examine the car or truck to see whether the seals are intact and whether there is any evidence of tampering or loss by leaking or otherwise. Any evidence of loss will be reported to the appropriate TTB officer. The contents of the tank car or tank truck will be gauged by weight or volume at the time of receipt by the proprietor. If the tank car or tank truck has been accurately calibrated and the calibration chart is available at the bonded wine premises, the spirits may be gauged by volume in the tank car or tank truck. In any case where a volume gauge is made, the actual measurements of the spirits in the gauging tank, tank car, or tank truck, and the temperature of the spirits will be recorded on the copy of the transfer record accompanying the shipment. (Sec. 201, Pub. L. 85-859, 72 Stat. 1360, as amended, 1362, as amended, 1381, as amended (26 U.S.C. 5206, 5214, 5366)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.231 Receipt of spirits in sealed bulk containers. The proprietor shall examine sealed bulk containers (packages) of spirits received at the bonded wine premises to verify that the containers are the same as those described on the transfer record accompanying the shipment. Any container which appears to have been tampered with or from which spirits appear to have been removed or lost will be gauged by the proprietor and the proprietor shall prepare and submit to the appropriate TTB officer a statement setting forth fully the circumstances and apparent cause of any loss. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended (26 U.S.C. 5366, 5367, 5368, 5373)) (Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.232 Gauge of spirits. (a) If the spirits to be used are in a spirits storage tank on bonded wine premises, or are received immediately prior to use from a distilled spirits plant not adjacent or contiguous to bonded wine premises, the proprietor shall determine the proof of the spirits and the quantity used by volume gauge or by weight. Upon completion of the transfer of spirit from the spirits storage tank to the spirits addition tank, the proprietor shall lock the spirits storage tank. (b) If the spirits are received from the adjacent or contiguous bonded premises of a distilled spirits plant and are transferred directly into a spirits addition tank, the gauge of the spirits made on the distilled spirits plant premises will be used. The proprietor at the distilled spirits plant premises shall deliver a transfer record to the proprietor of bonded wine premises who shall acknowledge receipt of the spirits on the transfer record. (c) If the spirits are received in packages and the quantity of spirits needed for the addition is not equal to the contents of full packages, a portion of one package may be used and the remnant package returned to the spirits storage room. The proprietor shall gauge the remnant package and attach to it a label showing the date of gauge, the weight of the remnant package, and the proof. The remnant package will be used at the first opportunity. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended (26 U.S.C. 5367, 5368, 5373)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.233 Addition of spirits to wine. (a) Prior to the addition of spirits. (b) After the addition of spirits. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended, 1383, as amended (26 U.S.C. 5367, 5373, 5382)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.234 Other use of spirits. The proprietor producing effervescent wine, formula wine, or essences for which spirits are required may use tax-free wine spirits or brandy. For nonbeverage wine, tax-free spirits other than wine spirits or brandy may also be used. The spirits received by the proprietor will be locked in a secure room or locker on bonded wine premises. The spirits will remain in the original container in the storeroom until withdrawn for use. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended, 1383, as amended (26 U.S.C. 5373, 5382)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7663, Jan. 23, 2017] § 24.235 Taxpayment or destruction of spirits. (a) Taxpayment of spirits. (b) Destruction of spirits. (Sec. 201, Pub. L. 85-859, 72 Stat. 1382, as amended (26 U.S.C. 5373)) (Approved by the Office of Management and Budget under control number 1512-0292) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-92, 76 FR 9171, Feb. 16, 2011] § 24.236 Losses of spirits. Losses by theft or any other cause of spirits while on bonded wine premises or in transit are to be determined and reported at the time the losses are discovered. A physical inventory of the spirits storage tanks will be taken at the close of any month during which spirits were used in wine production, or upon completion of spirits use for the month or at any other time required by the appropriate TTB officer. Any loss which has not previously been reported will be determined by the inventory. (Sec. 201, Pub. L. 85-859, 72 Stat. 1323, as amended (26 U.S.C. 5008, 5373)) (Approved by the Office of Management and Budget under control number 1512-0292) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.237 Spirits added to juice or concentrated fruit juice. Juice or concentrated fruit juice to which spirits have been added may not have an alcohol content exceeding 24 percent by volume. Although not considered to be wine, juice or concentrated fruit juice to which spirits have been added will be included in the appropriate tax class of any wine inventory and will be properly identified. Juice or concentrated juice to which wine spirits are added will be reported on the TTB F 5120.17, Report of Bonded Wine Premises Operations, as wine, but a separate record will be maintained. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993] Subpart L—Storage, Treatment and Finishing of Wine § 24.240 General. Wine will be stored on bonded wine premises in buildings or tanks constructed and secured in accordance with the provisions of §§ 24.166 and 24.167. Wine will be stored in tanks, casks, barrels, cased or uncased bottles, or in any other suitable container, which will not contaminate the wine. Specifically authorized materials and processes for the treatment and finishing of wine are listed in §§ 24.246 and 24.248 of this subpart. (Sec. 201, Pub. L. 85-859, 72 Stat. 1378, as amended, 1379, as amended, 1383, as amended, 1395, as amended (26 U.S.C. 5352, 5357, 5382, 5552)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31079, July 9, 1991] § 24.241 Decolorizing juice or wine. (a) Conditions and limitations. (1) The wine will retain a vinous character after being treated with activated carbon or other decolorizing material; (2) The quantity of activated carbon used to treat the wine, including the juice from which the wine was produced, may not exceed twenty-five pounds per 1,000 gallons (3.0 grams per liter) (see paragraph (b) of this section); and (3) The wine treated with decolorizing material will have a color of not less than 0.6 Lovibond in a one-half inch cell or not more than 95 percent transmittance per AOAC Method 11.003-11.004 (see paragraph (c) of this section). However, the proprietor may produce a wine having a color of less than 0.6 Lovibond or more than 95 percent transmittance per AOAC Method 11.003-11.004 by using normal methods and without the use of decolorizing material. (b) Transfer in bond. (1) The amount of wine which has been treated under the provisions of this section; and (2) The quantity of decolorizing material used in treating the wine, including the juice from which the wine was produced, before its transfer. The consignee proprietor may further treat the wine with decolorizing material as long as the consignee proprietor has a copy of the shipping record and complies with the requirements of this section. (c) Incorporation by reference. The “Official Methods of Analysis of the Association of Official Analytical Chemists” (AOAC Method 11.003-11.004; 13th Edition 1980) is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register, and is available for inspection or at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended at 69 FR 18803, Apr. 9, 2004; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024] § 24.242 Authority to use greater quantities of decolorizing material in juice or wine. (a) Proprietor's notice. (1) The reason for the treatment; (2) The volume, kind, and type of juice or wine to be treated; (3) The kind and quantity of decolorizing material to be used; and, (4) The length of time the decolorizing material is in contact with the juice or wine. (b) Action by the appropriate TTB officer on proprietor's notice. (c) Samples and chemical analysis Samples. (i) The juice or wine before treatment with decolorizing material, (ii) The juice or wine after treatment with decolorizing material, and (iii) The decolorizing material used. (2) Chemical analysis. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) (Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.243 Filtering aids. Inert fibers, pulps, earths, or similar materials, may be used as filtering aids in the cellar treatment and finishing of wine. Agar-agar, carrageenan, cellulose, and diatomaceous earth are commonly employed inert filtering and clarifying aids. In general, there is no limitation on the use of inert materials and no records need be maintained concerning their use. However, if the inert material is dissolved in water prior to addition to wine, then the records required by § 24.301 will be maintained. Filtering aids which contain active chemical ingredients or which may alter the character of wine, may be used only in accordance with the provisions of § 24.246. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.244 Use of acid to stabilize standard wine. Standard wine other than citrus wine, regardless of the fixed acid level, may be stabilized as a part of the finishing process by the addition of citric acid within the limitations of § 24.246. Standard wine (including citrus wine) may be stabilized by the addition of fumaric acid within the limitations of § 24.246. (Sec. 201, Pub. L. 85-859, 72 Stat. 1383, as amended (26 U.S.C. 5382)) § 24.245 Use of carbon dioxide in still wine and still hard cider. (a) Use of carbon dioxide. (b) Tolerance limit. (c) Penalties. (d) Records. (Sec. 201, Pub. L. 85-859, 72 Stat. 1331, as amended, 1381, as amended, 1407, as amended (26 U.S.C. 5041, 5367, 5662)) [T.D. TTB-147, 82 FR 7663, Jan. 23, 2017] § 24.246 Materials authorized for the treatment of wine and juice. (a) Wine and juice. (1) If the U.S. Food and Drug Administration (FDA) informs TTB that a specified use or limitation of any material listed in this section is inconsistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act, the appropriate TTB officer may cancel or amend the approval for use of the material in the treatment of wine and juice in the production, cellar treatment, or finishing of wine; and (2) Where water is added to facilitate the solution or dispersal of a material, the volume of water added, whether the material is used singly or in combination with other water-based treating materials, may not total more than 1 percent of the volume of the treated wine or juice, or of both the wine and the juice, from which the wine is produced. (b) Use in combination or in multiple lots. (c) Formula wine. Table 1 to Paragraph ( c Materials and use Specific TTB limitation FDA reference Acacia (gum arabic): To clarify and stabilize 1 The amount used must not exceed 16 pounds per 1,000 gallons (1.9 g/L) of wine 21 CFR 184.1330. Acetaldehyde: For color stabilization of juice prior to concentration The amount used must not exceed 300 ppm (300 mg/L), and the finished concentrate must have no detectable level of the material. 2 FDA advisory opinion dated September 8, 2016. Activated carbon: To assist precipitation during fermentation 27 CFR 24.176 FDA advisory opinion dated September 8, 2016, which states that the activated carbon must meet the specifications in the Food Chemicals Codex and be removed from the wine. To clarify and purify wine The amount used to clarify and purify wine must be included in the total amount of activated carbon used to remove excessive color from wine and/or juice. 27 CFR 24.241 and 24.242 FDA advisory opinion dated January 26, 1979, which states that the activated carbon must meet the specifications in the Food Chemicals Codex and be removed from the wine. To remove color from wine and/or juice from which wine is produced The amount used to treat the wine, including the juice from which the wine was produced, must not exceed 25 pounds per 1000 gallons (3 g/L). If the amount necessary exceeds this limit, a notice is required pursuant to 27 CFR 24.242 FDA advisory opinion dated January 26, 1979, which states that the activated carbon must meet the specifications in the Food Chemicals Codex and be removed from the wine. Albumen (egg white): Fining agent for wine May be prepared in a light brine 1 ounce (28.35 grams) potassium chloride, 2 pounds (907.2 grams) egg white, 1 gallon (3.785 L) of water. Usage of brine not to exceed 1.5 gallons per 1,000 gallons (1.5 milliliters per liter) of wine FDA advisory opinion dated September 8, 2016. Alumino-silicates (hydrated) e.g., Bentonite (Wyoming clay) and Kaolin: To clarify and stabilize 1 None 21 CFR 184.1155 Ascorbic acid iso May be added to grapes, other fruit (including berries), and other primary wine making materials, or to the juice of such materials, or to the wine, within limitations which do not alter the class or type of the wine 21 CFR 182.3013 and 182.3041. Bakers yeast mannoprotein: To stabilize 1 The amount used must not exceed 3.3 pounds per 1000 gallons (400 mg/L) of wine GRAS (generally recognized as safe) Notice No. GRN 000284. Calcium carbonate (CaCO 3 To reduce the excess natural acids in high acid wine, or in juice prior to or during fermentation The natural or fixed acids must not be reduced below 40 pounds per 1000 gallons (4.79 g/L) 21 CFR 184.1069, 184.1099, and 184.1191. As a fining agent for cold stabilization The amount used must not exceed 30 pounds per 1000 gallons (3.59 g/L) of wine. Calcium sulfate (gypsum): To lower pH in sherry wine The sulfate content of the finished wine must not exceed 1.67 pounds per 1000 gallons (0.2 g/L), expressed as potassium sulfate. 27 CFR 24.214 21 CFR 184.1230. Carbon dioxide (including food grade dry ice): To stabilize 1 See 27 CFR 24.245 21 CFR 184.1240. Casein, potassium salt of casein: To clarify wine See 27 CFR 24.243 FDA advisory opinion dated September 8, 2016. Chitosan from Aspergillus niger: Brettanomyces The amount used must not exceed 0.04 pounds per 1 gallon (500 g/100 L) of wine GRAS Notice No. GRN 000397. Citric acid: To correct natural acid deficiencies in certain juice or wine See 27 CFR 24.182 and 24.192 21 CFR 184.1033. To stabilize 1 The amount of citric acid must not exceed 5.8 pounds per 1000 gallons (0.7 g/L). 27 CFR 24.244 21 CFR 184.1033. Copper sulfate: To remove hydrogen sulfide and/or mercaptans from wine The quantity of copper sulfate (calculated as copper) added to wine must not exceed 6 ppm (6mg/L). 2 2 21 CFR 184.1261. Defoaming agents (polyoxyethylene 40 monostearate, silicon dioxide, dimethylpoly-siloxane, sorbitan monostearate, glyceryl mono-oleate and glyceryl dioleate): To control foaming, fermentation adjunct Defoaming agents which are 100 percent active may be used in amounts not exceeding 0.15 pounds per 1000 gallons (18 mg/L) of wine. Defoaming agents which are 30 percent active may be used in amounts not exceeding 0.5 pounds per 1000 gallons (60 mg/L) of wine. Silicon dioxide must be completely removed by filtration. The amount of silicon remaining in the wine must not exceed 10 ppm (10 mg/L). 2 21 CFR 173.340 and 184.1505. Dimethyl dicarbonate (DMDC): To sterilize and stabilize 1 DMDC may be added to wine in a cumulative amount not to exceed 200 ppm (200 mg/L). 2 21 CFR 172.133. Enzymatic activity: Various enzymes and uses, as shown in the following entries: The enzyme preparation used must be prepared from nontoxic and nonpathogenic microorganisms. Carbohydrase ( alpha The amylase enzyme activity must be derived from: Aspergillus niger, Aspergillus oryzae, Bacillus subtilis, Rhizopus oryzae; Bacillus licheniformis. FDA advisory opinion of August 18, 1983. Carbohydrase ( beta The amylase enzyme must be derived from barley malt FDA advisory opinion dated August 18, 1983. Carbohydrase (Glucoamylase, Amylogluco-sidase): To convert starches to fermentable carbohydrates The amylase enzyme activity must be derived from Aspergillus niger, Aspergillus oryzae, Rhizopus oryzae, Rhizopus niveus. FDA advisory opinion dated August 18, 1983. Carbohydrase (pectinase, cellulase, hemicellulase): To facilitate separation of juice from the fruit The enzyme activity must be derived from Aspergillus aculeatus. FDA advisory opinion dated December 19, 1996. Catalase: To clarify and stabilize 1 The enzyme activity must be derived from Aspergillus niger FDA advisory opinion dated August 18, 1983. Cellulase: To clarify and stabilize 1 The enzyme activity must be derived from Aspergillus niger FDA advisory opinion dated August 18, 1983. Cellulase (beta-glucanase): To clarify and filter wine and juice The enzyme activity must be derived from Trichoderma longibrachiatum Trichoderma harzianum. For beta-glucanase derived from Trichoderma longibrachiatum, For beta-glucanase derived from Trichoderma harzianum, Glucose oxidase: To clarify and stabilize 1 The enzyme activity must be derived from Aspergillus niger FDA advisory opinion of August 18, 1983. Lysozyme: To stabilize 1 The amount used must not exceed 500 ppm (500 mg/L). 2 FDA advisory opinion dated December 15, 1993. Pectinase: To clarify and stabilize 1 The enzyme activity used must be derived from Aspergillus niger FDA advisory opinion dated August 18, 1983. Protease (general): To reduce or to remove heat labile proteins The enzyme activity must be derived from: Aspergillus niger Bacillus subtilis; Bacillus licheniformis FDA advisory opinion dated August 18, 1983. Protease (Bromelin): To reduce or remove heat labile proteins. The enzyme activity must be derived from pineapple ( Ananas comosus Ananas bracteatus FDA advisory opinion dated August 18, 1983. Protease (Ficin): To reduce or remove heat labile proteins The enzyme activity must be derived from fig ( Ficus spp. 21 CFR 184.1316. Protease (Papain): To reduce or remove heat labile proteins The enzyme activity must be derived from papaya ( Carica papaya 21 CFR 184.1585. Protease (Pepsin): To reduce or remove heat labile proteins The enzyme activity must be derived from porcine or bovine stomachs 21 CFR 184.1595, FDA advisory opinion dated August 18, 1983. Protease (Trypsin): To reduce or remove heat labile proteins The enzyme activity must be derived from porcine or bovine pancreas FDA advisory opinion dated August 18, 1983. Urease: To reduce levels of naturally occurring urea in wine to help prevent the formation of ethyl carbamate The enzyme activity must be derived from Lactobacillus fermentum. 2 21 CFR 184.1924. Ethyl maltol: To stabilize 1 Use authorized at a maximum level of 100 ppm (100 mg/L) in all standard wines except natural wine produced from Vitis vinifera 2 FDA advisory opinion dated December 1, 1986. Fermentation aids: To facilitate fermentation of juice and wine. Ammonium phosphate/diammonium phosphate ( mono- di The amount used must not exceed 8 pounds per 1000 gallons (0.96 g/L) FDA advisory opinion dated August 29, 2016. Biotin (vitamin B7) The amount used must not exceed 25 ppb (25 ng/mL). 3 FDA advisory opinion dated August 29, 2016. Calcium pantothenate (vitamin B5) The amount used must not exceed 1.5 ppm (1.5 mg/L). 2 FDA advisory opinion dated August 29, 2016. Folic acid (folate) The amount used must not exceed 100 ppb (100 ng/mL). 3 FDA advisory opinion dated August 29, 2016. Inositol (myo-inositol) The amount used must not exceed 2 ppm (2 mg/L). 2 FDA advisory opinion dated August 29, 2016. Magnesium sulfate The amount used must not exceed 15 ppm (15 mg/L). 2 FDA advisory opinion dated August 29, 2016. Niacin (vitamin B3) The amount used must not exceed 1 ppm (1 mg/L). 2 FDA advisory opinion dated August 29, 2016. Pyridoxine hydrochloride (vitamin B6) The amount used must not exceed 150 ppb (150 ng/mL). 3 FDA advisory opinion dated August 29, 2016. Soy flour (defatted) The amount used must not exceed 2 pounds per 1000 gallons (0.24 g/L) of wine FDA advisory opinion dated August 29, 2016. Thiamine hydrochloride The amount used must not exceed 0.005 pounds per 1000 gallons (0.6 mg/L) of wine or juice FDA advisory opinion dated August 29, 2016. Yeast, autolyzed None FDA advisory opinion dated August 29, 2016. Yeast, cell wall/membranes of autolyzed yeast The amount used must not exceed 3 pounds per 1000 gallons (0.36 g/L) of wine or juice FDA advisory opinion dated August 29, 2016. Ferrous sulfate: To clarify and stabilize 1 The amount used must not exceed 3 ounces per 1000 gallons (0.022 g/L) of wine 21 CFR 184.1315. Fractionated potato protein isolates: Fining agent for wine Use must not exceed 500 ppm 2 GRAS Notice No. GRN 000447. Fumaric acid: To correct natural acid deficiencies in grape wine The fumaric acid content of the finished wine must not exceed 25 pounds per 1000 gallons (3 g/L). 27 CFR 24.182 and 24.192 21 CFR 172.350. To stabilize 1 The fumaric acid content of the finished wine must not exceed 25 pounds per 1000 gallons (3 g/L). 27 CFR 24.244 21 CFR 172.350. Gelatin (food grade): To clarify juice or wine None FDA advisory opinion dated September 8, 2016. Granular cork: To smooth wine The amount used must not exceed 10 pounds per 1000 gallons of wine (1.2 g/L) FDA advisory opinion dated February 25, 1985. Isinglass: To clarify wine None FDA advisory opinion dated February 25, 1985. Lactic acid: To correct natural acid deficiencies in grape wine 27 CFR 24.182 and 24.192 21 CFR 184.1061. Malic acid: To correct natural acid deficiencies in juice or wine 27 CFR 24.182 and 24.192 21 CFR 184.1069. Malolactic bacteria: To stabilize 1 Malolactic bacteria of the type Leuconostoc oenos Oenococcus oeni) FDA advisory opinion dated February 25, 1985. Maltol: To stabilize 1 Use authorized at a maximum level of 2 pounds per 1000 gallons (240 mg/L) in all standard wine except natural wine produced from Vitis vinifera FDA advisory opinion dated December 1, 1986. Milk products (pasteurized whole, skim, or half-and-half): Fining agent for grape wine The amount used must not exceed 2 parts of milk products per 1,000 parts (0.2 percent V/V) of wine To remove off flavors in wine The amount used must not exceed 10 parts of milk products per 1,000 parts (1 percent V/V) of wine Nitrogen gas: To maintain pressure during filtering and bottling or canning of wine and to prevent oxidation of wine None 21 CFR 184.1540. Oxygen and compressed air: Various uses in juice and wine None Polyvinylpolypyrrolidone (PVPP): To clarify and stabilize 1 The amount used to treat the wine, including the juice from which the wine was produced, must not exceed 60 pounds per 1000 gallons (7.19 g/L) and must be removed during filtration. PVPP may be used in a continuous or batch process 21 CFR 173.50. Polyvinylpyrrolidone (PVP)/polyvinylimidazole (PVI) polymer (terpolymer of 1-vinylimidazole, 1-vinylpyrrolidone, and 1,2-divinylimidazolidinone; CAS 87865-40-5 (Chemical Abstracts Service Registration Number)): To remove heavy metal ions and sulfides from wine The amount used to treat the wine must not exceed 6.7 pounds per 1000 gallons (80 g/hL) of wine FDA FCN No. 000320. 4 Potassium bitartrate: To stabilize 1 The amount used must not exceed 35 pounds per 1000 gallons (4.19 g/L) of grape wine FDA advisory opinion dated September 8, 2016. Potassium carbonate and/or potassium bicarbonate: To reduce excess natural acidity in wine and in juice prior to or during fermentation The natural or fixed acids must not be reduced below 0.668 ounces per gallon (5 g/L) 21 CFR 184.1619 and 184.1613. Potassium citrate: pH control agent and sequestrant in the treatment of citrus wines The amount of potassium citrate must not exceed 25 pounds per 1000 gallons (3 g/L) of finished wine. 27 CFR 24.182 21 CFR 184.1625. Potassium meta-bisulfite: To sterilize and preserve wine The sulfur dioxide content of the finished wine must not exceed the limitations prescribed in 27 CFR 4.22 21 CFR 182.3637. Silica gel (colloidal silicon dioxide): To clarify wine or juice Use must not exceed the equivalent of 20 pounds colloidal silicon dioxide at a 30 percent concentration per 1000 gallons (2.4 g/L) of wine. Silicon dioxide must be completely removed by filtration FDA advisory opinion dated September 8, 2016. Sodium carboxymethyl cellulose: To stabilize 1 21 CFR 182.1745. Sorbic acid and potassium salt of sorbic acid (potassium sorbate): To sterilize and preserve wine; to inhibit mold growth and secondary fermentation The finished wine must not contain more than 300 ppm (300 mg/L) of sorbic acid. 2 21 CFR 182.3089 and 182.3640. Sulfur dioxide: To sterilize and to preserve wine or juice The sulfur dioxide content of the finished wine must not exceed the limitations prescribed in 27 CFR 4.22(b)(1) 21 CFR 182.3862. Tannin: To adjust tannin content in apple juice or in apple wine The residual amount of tannin must not exceed 24 pounds per 1000 gallons (3 g/L), calculated as gallic acid equivalents (GAE). Total tannin must not be increased by more than 150 ppm (150 mg/L; 0.150 g/L) by the addition of tannic acid (polygalloylglucose). 2 FDA advisory opinion dated September 8, 2016. To clarify, or adjust tannin content of, juice or wine (other than apple) The residual amount of tannin, calculated in GAE, must not exceed 6.4 GAE per 1000 gallons of wine (800 mg/L) in white wine and 24 pounds per 1000 gallons (3 g/L) in red wine. Only tannin which does not impart color may be used in the cellar treatment of juice or wine. Total tannin must not be increased by more than 150 ppm (150 mg/L; 0.150 g/L) by the addition of tannic acid (poly-galloylglucose). 2 FDA advisory opinion dated September 8, 2016. Tartaric acid (L-(+)-tartaric acid): To correct natural acid deficiencies in grape juice or wine and to reduce the pH of grape juice or wine where ameliorating material is used in the production of grape wine Use as prescribed in 27 CFR 24.182 and 24.192 21 CFR 184.1099 and GRAS Notice No. GRN 000187. 1 2 3 4 [T.D. TTB-185, 87 FR 51897, Aug. 24, 2022] § 24.247 Materials authorized for the treatment of distilling material. The materials listed in this section as well as the materials listed in § 24.246 are approved as being acceptable in good commercial practice for use by proprietors in the treatment of distilling material within the limitations specified in this section. If, however, the U.S. Food and Drug Administration (FDA) informs TTB that a specified use or limitation of any material listed in this section is inconsistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act, the appropriate TTB officer may cancel or amend the approval for use of the material in the treatment of distilling material. Materials Use Reference or limitation Ammonium phosphate/diammonium phosphate ( mono- di Yeast nutrient in distilling material The amount used shall not exceed 10 pounds per 1000 gallons (1.2 g/L). 21 CFR 184.1141a and 184.1141b. Benzoic acid, potassium and sodium salts of benzoic acid To prevent fermentation of the sugar in wine being accumulated as distilling material The amount used shall not exceed 0.1% (w/v) as benzoic acid. GRAS per FDA advisory opinions dated 9/22/82 and 9/8/83. 21 CFR 184.1021 and 184.1733 (GRAS). Enzyme activity The enzyme preparation used shall be prepared from nontoxic and nonpathogenic microorganisms in accordance with good manufacturing practice and be approved for use in food by either FDA regulation or by FDA advisory opinion. Carbohydrase (Glucoamylase, Amylogluco-sidase) To convent starches to fermentable carbohydrates The amylase enzyme activity shall be derived from Aspergillus niger Aspergillus oryzae Rhizopus oryzae 21 CFR 173.130 Rhizopus niveus 21 CFR 173.110. Carbohydrase ( beta- To convent starches to fermentable carbohydrates The amylase enzyme activity shall be derived from barley malt per FDA advisory opinion dated 8/18/83. Carbohydrase (Glucoamylase, Amylogluco-sidase) To convent starches to fermentable carbohydrates The amylase enzyme actvity shall be derived from Aspergillus niger Aspergillus oryzae Rhizopus oryzae Rhizopus niveus Copper sulfate To eliminate hydrogen sulfide and mercaptans The finished brandy or wine spirits produced from distilling material to which copper sulfate has been added shall not contain more than 2 parts per million (2 mg/L) residual copper. GRAS per FDA advisory opinion of 7/23/69. Hydrogen peroxide To reduce the bisulfite aldehyde complex in distilling material The amount used shall not exceed 200 parts per million. 21 CFR 184.1366 (GRAS). Potassium permanganate Oxidizing agent The finished brandy or wine spirits produced from distilling material to which potassium permanganate has been added must be free of chemical residue resulting from such treatment. (GRAS) Sodium hydroxide Acid neutralizing agent The finished brandy or wine spirits produced from distilling material to which sodium hydroxide has been added must be free of chemical residue resulting from such treatment. 21 CFR 184.1763 (GRAS). Sulfuric acid To effect favorable yeast development in distilling material; to prevent fermentation of the sugar in wine being accumulated as distilling material; to lower pH to 2.5 in order to prevent putrefaction and/or ethyl acetate development 27 CFR 24.216 (GRAS), 21 CFR 184.1095 (GRAS). [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-185, 87 FR 51902, Aug. 24, 2022; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024

] § 24.248 Processes authorized for the treatment of wine, juice, and distilling material. The processes listed in this section are approved as being consistent with good commercial practice for use by proprietors in the production, cellar treatment, or finishing of wine, juice, and distilling material, within the general limitations of this section. If, however, the U.S. Food and Drug Administration (FDA) informs TTB that a specified use or limitation of any material listed in this section is inconsistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act, the appropriate TTB officer may cancel or amend the approval for use of the process in the production, cellar treatment, or finishing of wine, juice, and distilling material. Processes Authorized for the Treatment of Wine, Juice, and Distilling Material Processes Use Reference or limitation Cross flow filtration Various processes and uses. 1 Nanofiltration 2 To reduce the level of volatile acidity in wine (used with ion exchange), to reduce the ethyl alcohol content of wine. Permeable membranes that are selective for molecules not greater than 500 molecular weight with transmembrane pressures of 200 pounds per square inch (psi) and greater. The addition of water other than that originally present prior to processing will render standard wine “other than standard.” Use must not alter the vinous character of the wine. May be used in combination with osmotic transport. Reverse osmosis 2 To reduce the ethyl alcohol content of wine and to remove off flavors in wine. This process must use permeable membranes which are selective for molecules not greater than 150 molecular weight with transmembrane pressures of 250 psi or less. Ultrafiltration 2 To remove proteinaceous material from wine; to reduce harsh tannic material from white wine produced from white skinned grapes; to remove pink color from blanc de noir wine; to separate red and white juice and wine into low color and high color fractions for blending purposes, to reduce the ethyl alcohol content of wine. Permeable membranes that are selective for molecules greater than 500 and less than 25,000 molecular weight with transmembrane pressures less than 200 psi. Shall not alter vinous character. Electrodialysis To aid in the removal of tartrates This process must not alter the vinous character of the wine. Elimination of sulfur dioxide by physical process To reduce the sulfur dioxide content of juice Use of a physical process to remove sulfur dioxide from juice must not alter the basic character of the juice so treated Ion exchange Various applications in the treatment of juice or wine: Anion, cation, and non-ionic resins, except those anionic resins in the mineral acid state, may be used in batch or continuous column processes as total or partial treatment of wine, provided that with regard to juice or finished wine; 1. Such treatment does not alter the fruit character of the juice or wine. 2. The treatment does not reduce the color of the juice or wine to less than that normally contained in such juice or wine. 3. Treatment does not increase inorganic anions in the juice or wine by more than 10 mg/L. 4. The treatment does not reduce the metallic cation concentration in the juice or wine to less than 300 mg/L. 5. The treatment does not reduce natural or fixed acid in grape wine below 4 g/L for red table wines, 3 g/L for white table wines, 2.5 g/L for all other grape wines, 4 g/L for wine other than grape wine. 6. Treatment does not reduce the pH of the juice or wine to less than pH 2.8 nor increase the pH to more than pH 4.5. 7. The resins used have not imparted to the juice or wine any material or characteristic (incidental to the resin treatment) which may be prohibited under any other section of the regulations in this part. The winemaker may employ conditioning and/or regenerating agents consisting of water, fruit acids common to the wine or juice being treated, and inorganic acids, salts and/or bases provided the conditioned or regenerated resin is rinsed with water until the resin and container are essentially free from unreacted (excess) conditioning or regenerating agents prior to the introduction of the juice or wine. 21 CFR 173.25. Metal reducing matrix sheet processing To reduce the level of metals such as copper and iron in wine (1) The active ingredient, polyvinylimidazol, must not constitute more than 40% by weight of the sheet. Osmotic transport 2 For alcohol reduction. (1) Use must not alter the vinous character of the wine. Spinning cone column 2 To reduce the ethyl alcohol content of wine and to remove off flavors in wine. Use shall not alter vinous character. For standard wine, the same amount of essence must be added back to any lot of wine as was originally removed. Sulfide reducing matrix sheet processing To reduce the level of sulfides in wine (1) The active ingredient, polyvinylimidazol, must not constitute more than 40% by weight of the sheet. Thermal gradient processing To separate wine into low alcohol and high alcohol wine fractions The fractions derived from such processing shall retain vinous character. Such treatment shall not increase the alcohol content of the high alcohol fraction to more than 24 percent by volume. The addition of water other than that originally present in the wine prior to processing will render standard wine “other than standard.” To separate juice into low Brix and high Brix juice fractions The low Brix fraction derived from such processing may be used in wine production. The high Brix fraction derived from such processing shall not be diluted with water for use in wine production. Thin film evaporation under reduced pressure 2 To separate wine into a low alcohol wine fraction and into a higher alcohol distillate. Use shall not alter vinous character. Water separated with alcohol during processing may be recovered by refluxing in a closed continuous system and returned to the wine. The addition of water other than that originally present in the wine prior to processing, will render standard wine “other than standard” wine. 1 2 [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31081, July 9, 1991; T.D. ATF-350, 58 FR 52232, Oct. 7, 1993; T.D. ATF-371, 61 FR 21079, May 9, 1996; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-17, 69 FR 67644, Nov. 19, 2004; T.D. TTB-185, 87 FR 51902, Aug. 24, 2022] § 24.249 Experimentation with new treating material or process. (a) General. (b) Application. (c) Segregation of operations. (d) Records. (e) Disposition of the wine. (Sec. 201, Pub. L. 85-859 (72 Stat. 1383, as amended (26 U.S.C. 5361, 5382)) (Approved by the Office of Management and Budget under control numbers 1512-0292 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999] § 24.250 Application for use of new treating material or process. (a) General. (b) Data required. (1) The name and description of the material or process; (2) The purpose, the manner, and the extent to which the material or process is to be used together with any technical bulletin or other pertinent information relative to the material or process; (3) A sample, if a proposed material; (4) Documentary evidence from the U.S. Food and Drug Administration that the material is consistent with the food additive requirements under the Federal Food, Drug, and Cosmetic Act for its intended purpose in the amounts proposed for the particular treatment contemplated; (5) The test results of any laboratory-scale pilot study conducted by the winemaker in testing the material and an evaluation of the product and of the treatment including the results of tests of the shelf life of the treated wine; (6) A tabulation of pertinent information derived from the testing program conducted by the chemical manufacturer demonstrating the function of the material or process; (7) A list of all chemicals used in compounding the treating material and the quantity of each component; (8) The recommended maximum and minimum amounts, if any, of the material proposed to be used in the treatment and a statement as to the volume of water required, if any, to facilitate the addition of the material or operation of the process; and (9) Two 750-milliliter samples representative of the wine before and after treatment. Information of a confidential or proprietary nature to the manufacturer or supplier of the treating material or process may be forwarded by the manufacturer or supplier to the appropriate TTB officer with a reference to the application filed by the winemaker. Information contained within the winemaker's application can be disclosed to the public, subject to the limitations of 26 U.S.C. 6103 and 7213. (c) Use of cellar treatment. (d) Processing of application. (Approved by the Office of Management and Budget under control numbers 1513-0057 and 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. TTB-185, 87 FR 51903, Aug. 24, 2022; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024] § 24.251 Tolerance for artificially carbonated hard cider and sparkling hard cider. (a) Tolerance. (b) Records. (Sec. 335, Pub. L. 114-113, 129 Stat. 3109, as amended (26 U.S.C. 5041) [T.D. TTB-147, 82 FR 7663, Jan. 23, 2017] § 24.252 Salvaging accidentally diluted wine. (a) Removal of accidentally added water without prior TTB approval. (1) The use of reverse osmosis and distillation without prior application to TTB provided that: (i) The accidentally added water represents no more than 10 percent of the original volume of the wine; (ii) The wine is returned to its original condition by removing an amount of water equal to the amount that was accidentally added to the wine; (iii) The vinous character of the wine is not altered; (iv) The proprietor transfers the wine in bond to a distilled spirits plant for treatment; and (v) Records are maintained in accordance with paragraph (c) of this section; or (2) By adding juice concentrate under the conditions outlined in § 24.180 without prior application to TTB provided that: (i) The accidentally added water represents no more than 10 percent of the original volume of the wine; (ii) The solids content of the finished wine do not exceed 21 percent by weight; (iii) The proprietor complies with any State or local rules regarding the addition of juice concentrate; and (iv) Records are maintained in accordance with paragraph (c) of this section. (b) Removal of accidentally added water with TTB approval. (c) Records. [T.D. TTB-185, 87 FR 51903, Aug. 24, 2022] Bottling, Packing, and Labeling of Wine § 24.255 Bottling or packing wine. (a) General. (b) Bottle or other container fill. (i) 1.0 percent for 15.0 liters and above; (ii) 1.5 percent for 14.9 liters to 1.0 liter; (iii) 2.0 percent for 750 mL to 550 mL; (iv) 2.5 percent for 500 mL to 473 mL; (v) 3.0 percent for 375 mL to 300 mL; (vi) 4 percent for 250 mL and 200 mL; (vii) 4.5 percent for 187 mL to 100 mL; and (viii) 9.0 percent for 50 mL. (2) In such case, there will be substantially as many bottles overfilled as there are bottles underfilled for each lot of wine bottled. Short-filled bottles or other containers of wine which are sold or otherwise disposed of by the proprietor to employees for personal consumption need not be labeled, but, if labeled, need not show an accurate statement of net contents. (c) Tax tolerance. (d) Fill tests. (e) Alcohol tests. (Approved by the Office of Management and Budget under control numbers 1513-0115 and 1513-0092) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7664, Jan. 23, 2017; T.D. TTB-200, 90 FR 1876, Jan. 10, 2025] § 24.256 Bottle aging wine. Wine bottled or packed and stored for the purpose of aging need not have labels affixed until the wine is removed for consumption or sale. However, the bins, pallets, stacks, cases or containers of unlabeled wine will be marked in some manner to show the kind (class and type) and alcohol content of the wine. If the unlabeled wine is stored at a location other than the bottling or packing winery, the registry number of the bottling or packing winery will also be shown. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1407, as amended (26 U.S.C. 5368, 5662)) (Approved by the Office of Management and Budget under control number 1512-0503) § 24.257 Labeling wine containers. (a) The proprietor must label each bottle or other container of beverage wine prior to removal for consumption or sale. The minimum type size for information required by this section is: 2 millimeters for containers of more than 187 milliliters and 1 millimeter for containers of 187 milliliters or less. The maximum type size for alcohol content statements is 3 millimeters unless the container is larger than 5 liters. The label must be securely affixed and show: (1) The name and address of the wine premises where bottled or packed; (2) The brand name, if different from above; (3) The alcohol content as percent by volume or the alcohol content stated in accordance with 27 CFR part 4. For wine with less than 7 percent alcohol by volume stated on the label there is allowed an alcohol content tolerance of plus or minus .75 percent by volume; and (4) An appropriate designation of the kind of wine, as follows: (i) Wines that require label approval General. (B) Labeling rules for wines eligible for the “hard cider” tax class 1 Transitional rule for “hard cider” removed on or after January 1, 2017 and prior to January 1, 2019. ( 2 Additional labeling rules effective for “hard cider” removed from wine premises on or after January 1, 2019. (ii) Wines that do not require label approval Adequate designation. ( 1 Additional labeling rules effective for wines eligible for the “hard cider” tax class. ( 2 Transitional rule for wines removed on or after January 1, 2017 and prior to January 1, 2019. ( 3 Additional labeling rules effective for “hard cider” removed from wine premises on or after January 1, 2019. (B) Cross reference. (5) The net content of the container unless the net content is permanently marked on the container as provided in 27 CFR part 4. (6) Cross reference. (b) The information shown on any label applied to bottled or packed wine is subject to the recordkeeping requirements of § 24.314. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1407, as amended (26 U.S.C. 5368, 5388, 5662)) (c) Use of semi-generic designations In general. (i) There appears in direct conjunction therewith an appropriate appellation of origin, as defined in part 4 of this chapter, disclosing the true place of origin of the wine, and (ii) The wine so designated conforms to the standard of identity, if any, for such wine contained in part 4 of this chapter or, if there is no such standard, to the trade understanding of such class or type. (2) Determination of whether a name is semi-generic In general. (ii) Certain names treated as semi-generic. (See: 26 U.S.C. 5368, 5388, 5662) (Approved by the Office of Management and Budget under control numbers 1513-0092 and 1513-0138) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-350, 58 FR 52232, Oct. 7, 1993; T.D. ATF-398, 63 FR 44783, Aug. 21, 1998; T.D. ATF-470, 66 FR 58944, Nov. 26, 2001; T.D. TTB-147, 82 FR 7664, Jan. 23, 2017; 82 FR 57353, Dec. 5, 2017] § 24.258 Certificates of approval or exemption. The proprietor shall obtain a certificate of label approval or a certificate of exemption from label approval as required by 27 CFR part 4. (August 29, 1935, ch. 814, Sec. 5, 49 Stat. 981, as amended (27 U.S.C. 205)) § 24.259 Marks. (a) Required marks. (1) The serial number or filling date as provided in § 24.260; (2) The name (or trade name) and the registry number of the bottlers wine premises; (3) The kind (class and type) and the alcohol content of the wine. The kind of wine and alcohol content will be stated in accordance with § 24.257. The formula number will be marked on bulk containers of special natural wine or other wine produced under § 24.218; (4) The net contents of each container larger than four liters or each case in wine gallons, or for containers larger than four liters or cases filled according to metric measure, the contents in liters. If wine is removed in cases, the cases may be marked to show the number and size of bottles or other containers in each case in lieu of the net contents of the case; and (5) Except for cases, the date of removal or shipment. (b) Application of marks. (c) Location of marks. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1387, as amended, 1407, as amended (26 U.S.C. 5368, 5388, 5662)) (Approved by the Office of Management and Budget under control number 1512-0503) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.260 Serial numbers or filling date. Each container larger than four liters or each case used for removing wine for consumption or sale will be marked with a serial number or filling date at the time of filling or when such containers or cases are prepared for removal. Serial numbers will commence with “1” and continue until the numeral “1,000,000” is reached, whereupon the series may recommence with the numeral “1.” However, the proprietor may initiate a new series after the numeral “1,000,000” has been reached provided no numeral will be used more than once during a 12-month period. If desired, a separate series of numbers with letter prefixes may be used for containers larger than four liters and for cases, or for cases filled on different bottling lines, or for removals from different loading docks. The proprietor may mark containers larger than four liters or the cases with the filling date in lieu of using a serial number or use both a serial number and the filling date. However, if the proprietor desires to change from the use of a serial number to use of a filling date, or vice versa, (72 Stat. 1381; 26 U.S.C. 5367, 5368) (Approved by the Office of Management and Budget under control number 1512-0503) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] Subpart M—Losses of Wine § 24.265 Losses by theft. The proprietor shall be liable for and pay the tax on wine unlawfully removed while on bonded wine premises, or while in transit thereto or therefrom in bond, unless the proprietor or other person responsible for the tax, establishes to the satisfaction of the appropriate TTB officer that the theft did not occur as the result of connivance, collusion, fraud or negligence on the part of the proprietor or other person responsible for the tax or the owner, consignor, consignee, bailee, or carrier, or their agents or employees. (Sec. 201, Pub. L. 85-859, 72 Stat, 1381, as amended (26 U.S.C. 5370)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. ATF-432, 65 FR 69253, Nov. 16, 2000] § 24.266 Inventory losses. (a) General. (b) Bulk wine losses. (1) Where there are circumstances indicating that all or a part of the wine reported lost was unlawfully removed, or (2)(i)(A) Where the loss of wine on bonded wine premises during the annual period exceeds three percent of the aggregate volume of wine on-hand at the beginning of the annual period and the volume of wine received in bond during the annual period; (B) The loss exceeds six percent of the still wine or still hard cider produced by fermentation; (C) The loss exceeds six percent of the sparkling wine or sparkling hard cider produced by fermentation in bottles; (D) The loss exceeds three percent of the special natural wine produced under § 24.195 or other wine produced under § 24.218; (E) The loss exceeds three percent of the artificially carbonated wine or artificially carbonated hard cider produced; or (F) The loss exceeds three percent of the bulk process sparkling wine or bulk process sparkling hard cider produced. (ii) The percentage applicable to each tax class of wine will be calculated separately, unless the calculation is impracticable because of the mixture of different tax classes by addition of wine spirits or blending during the annual period, in which case the percentage will be calculated on the aggregate volume. Wine removed immediately after production for use as distilling material and on which the usual racking, clarifying, and filtering losses are not sustained, will not be included in the calculations. (c) Bottle and other container wine losses. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5369, 5370)) (Approved by the Office of Management and Budget under control number 1513-0088) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. TTB-147, 82 FR 7664, Jan. 23, 2017] § 24.267 Losses in transit. Where the loss in transit of bulk wine shipped in bond or the total daily bulk wine in bond shipments received in bond from the same winery exceeds one percent (two percent on transcontinental shipments) of the volume shipped, the proprietor of the receiving bonded wine premises shall immediately notify the appropriate TTB officer and file a claim under the provisions of § 24.65. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] § 24.268 Losses by fire or other casualty. The proprietor must immediately report any loss by theft, fire or other casualty, or any other extraordinary or unusual loss to the appropriate TTB officer. If required by the appropriate TTB officer, the proprietor must file a claim under the provisions of § 24.65. The volume of wine loss must be reported on TTB F 5120.17 for the reporting period during which the loss occurred. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5370)) (Approved by the Office of Management and Budget under control number 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. ATF-409, 64 FR 13685, Mar. 22, 1999] Subpart N—Removal, Return and Receipt of Wine Taxpaid Removals § 24.270 Determination of tax. (a) General. (b) Tax determined and paid on the volume of wine. (1) In bottles or other containers filled according to United States measure recorded to the nearest 10th gallon; or, (2) In bottles or other containers filled according to metric measure, on the volume of wine in United States wine gallons to the nearest 10th gallon; or (3) In the case of pipeline removals, on the volume of bulk wine removed recorded to the nearest whole gallon, five-tenths gallon being converted to the next full gallon. (c) Tax rates imposed on wine. (1) Tax class 5041(b)(1). (2) Tax class 5041(b)(2). (3) Tax class 5041(b)(3). (4) Tax class 5041(b)(4). (5) Tax class 5041(b)(5). (6) Tax class 5041(b)(6). (d) Small domestic producer tax credit. [T.D. TTB-147, 82 FR 7664, Jan. 23, 2017, as amended by T.D. TTB-196, 89 FR 87942, Nov. 6, 2024] § 24.271 Deferred payment return periods—annual, quarterly, and semimonthly. (a) General. (b) Return periods and due dates Return periods. Semimonthly return period. (ii) Annual return period. (iii) Quarterly return period. (iv) Additional rules for annual and quarterly return periods. (A) A “taxpayer” is an individual, corporation, partnership, or other entity that is assigned a single Employer Identification Number as defined in 26 CFR 301.7701-12; (B) “Reasonably expects” means that there is no existing or anticipated circumstance known to the taxpayer (such as an increase in production capacity) that would cause the taxpayer's tax liability to exceed the prescribed limit; (C) A taxpayer with multiple locations must combine the wine tax liability for all locations to determine eligibility for the return procedures; (D) A taxpayer who has both domestic operations and import transactions must combine the wine tax liability on the domestic operations and the imports to determine eligibility for the return procedures; (E) The controlled group rules of 26 U.S.C. 5061(e), which concern treatment of controlled groups as one taxpayer, do not apply for purposes of determining eligibility for the return procedures. However, a taxpayer who is eligible for the return procedures, and who is a member of a controlled group that owes $5 million or more in wine excise taxes per year, is required to pay taxes by electronic fund transfer (EFT). Payments via EFT must be transmitted in accordance with section 5061(e); (F) A new taxpayer is eligible to use the return procedures the first year of business simply if the taxpayer reasonably expects to be liable for not more than $1,000 (in the case of the annual return procedure) or $50,000 (in the case of the quarterly return procedure) in wine taxes during that calendar year; and (G) If a taxpayer becomes ineligible to use a return procedure described in paragraph (b)(1)(ii) or (iii) of this section because the taxpayer's liability exceeds $1,000 or $50,000, respectively, in tax liability during a taxable year, that taxpayer may resume using that return procedure only after a full calendar year has passed during which the taxpayer's liability did not exceed $1,000 or $50,000 as the case may be. A taxpayer may not use an annual or quarterly return procedure during any calendar year in which the taxpayer reasonably expects to be liable for more than $1,000, in the case of the annual return procedure, or $50,000, in the case of the quarterly return procedure, in wine taxes. (2) Semimonthly, quarterly, and annual tax return due dates. General. (ii) Due dates for 2016 annual returns. (c) Special September rule for taxes due by semimonthly return. Division of second semimonthly period. General. (ii) Taxpayment not by electronic fund transfer. (2) Amount of payment—Safe harbor rule. General. (ii) Taxpayment not by EFT. (3) Weekends and holidays. (4) Example: Payment of tax for the month of September. Facts. (ii) Payment requirement. [T.D. TTB-89, 76 FR 3509, Jan. 20, 2011, as amended by T.D. TTB-94, Aug. 24, 2011; T.D. TTB-146, 82 FR 1125, Jan. 4, 2017] § 24.272 Payment of tax by electronic fund transfer. (a) General. (2) For the purposes of this section, the dollar amount of tax liability is defined as the gross tax liability on all taxable withdrawals and importations (including wines brought into the United States from Puerto Rico or the Virgin Islands) during the calendar year, without regard to any drawback, credit, or refund, for all premises from which the activities are conducted by the proprietor. (3) For the purposes of this section, a proprietor includes a controlled group of corporations, as defined in 26 U.S.C. 5061 (e)(3). Also, the rules for a “controlled group of corporations” apply in a similar fashion to groups which include partnerships and/or sole proprietorships. If one entity maintains more than 50 percent control over a group consisting of corporations and one, or more, partnerships and/or sole proprietorships, all of the members of the controlled group are one taxpayer for the purpose of determining who is required to make remittances by EFT. (4) A proprietor who is required by this section to make remittances by EFT shall, for each bonded wine premises from which wine is withdrawn upon determination of tax, make a separate EFT remittance and file a separate tax return. (b) Requirements. (2) For each return filed in accordance with this subpart, the proprietor shall direct the proprietor's financial institution to make an electronic fund transfer in the amount of the taxpayment to the Treasury Account as provided in paragraph (e) of this section. The request will be made to the financial institution early enough for the transfer of funds to be made to the Treasury Account by no later than the close of business on the last day for filing the return as prescribed in § 24.271. The request will take into account any time limit established by the financial institution. (3) If the proprietor was liable during the preceding calendar year for less than $5 million in wine excise taxes, combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, the proprietor may choose either to continue remitting the tax as provided in this section or to remit the tax with return as prescribed by § 24.271. Upon filing the first return on which the proprietor chooses to discontinue remittance of the tax by EFT and to begin remittance of the tax with the tax return, the proprietor shall notify the appropriate TTB officer by attaching a written notification to the tax form stating that no wine excise tax is due by EFT because the tax liability during the preceding calendar year was less than $5 million, and that the remittance will be filed with the tax return. (c) Remittance. (2) Remittances will be considered as made when the taxpayment by electronic fund transfer is received by the Treasury Account. For purposes of this section, a taxpayment by electronic fund transfer will be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank. (3) When the proprietor directs the financial institution to effect an electronic fund transfer message as required by paragraph (b) (2) of this section, the transfer data record furnished to the proprietor through normal banking procedures will serve as the record of payment, and will be retained as part of the required records. (d) Failure to make a taxpayment by EFT. (e) Procedure. (Approved by the Office of Management and Budget under control numbers 1513-0083 and 1513-0088) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, 13685, Mar. 22, 1999; T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024] § 24.273 [Reserved] § 24.274 Failure to timely pay tax or file a return. Penalties for failure to pay tax at the time required, for willful refusal to pay the tax and for fraudulent nonpayment of tax are provided for in 26 U.S.C. 5661 and 6656. In addition to these penalties, there is a penalty for the delinquent filing of a tax return, imposed as an addition to the tax shown on the return, amounting to five percent for each month or fraction thereof of the delinquency, not exceeding 25 percent in the aggregate, unless it is shown that the delinquency is due to reasonable cause and not to willful neglect. (Sec. 201, Pub. L. 85-859, 72 Stat. 1407, as amended, 1410, as amended (26 U.S.C. 5661, 5684, 6651, 6656)) § 24.275 Prepayment of tax. (a) General Circumstances where prepayment required. (i) The proprietor is required to prepay tax under § 24.276; or (ii) The proprietor is required to obtain a tax deferral bond, the bond is not in the maximum penal sum, and the tax determined and unpaid at any one time exceeds the coverage of the wine bond. (2) Forwarding the return with remittance. (b) Electronic fund transfer. (1) Completing the Excise Tax Return and by mailing it, as instructed on the form, to TTB and (2) Directing the proprietor's financial institution to effect an electronic fund transfer. (August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391, as amended (26 U.S.C. 6301, 6311, 6302)) (Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19064, Apr. 12, 1993; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017] § 24.276 Prepayment of tax; proprietor in default. When the proprietor fails to forward a payment for wine excise tax due by presentment of a check or money order, or when the proprietor is otherwise in default of payment of the tax, no wine may be removed for consumption or sale until the tax has been paid for the period of the default and until the appropriate TTB officer finds the revenue will not be jeopardized by the late payment of the tax. Any remittance made during the period of the default will be in cash, or will be in the form of a certified, cashier's, or treasurer's check drawn on any financial institution incorporated under the laws of the United States, or under the laws of any State, Territory, or possession of the United States, or in the form of a money order, as provided in 27 CFR 70.61 (payment by check or money order) or in the form of an electronic fund transfer. (August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391 as amended (26 U.S.C. 6301, 6311, 6302)) (Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-301, 55 FR 47605, Nov. 14, 1990; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] § 24.277 Date of mailing or delivering of returns. (a) When the proprietor sends the Excise Tax Return, TTB F 5000.24, with or without remittance, by United States mail, the official postmark of the United States Postal Service stamped on the cover of the envelope in which the return was mailed is considered the date of delivery of the tax return and, if accompanied, the date of delivery of the remittance. When the postmark on the cover is illegible, it is the proprietor's responsibility to prove when the postmark was made. (b) When the proprietor sends the tax return by registered mail or by certified mail, the date of registry or the date of the postmark on the sender's receipt of certified mail, as the case may be, is treated at the date of delivery of the tax return and, if accompanied, the date of delivery of the remittance. (August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391, as amended (26 U.S.C. 6301, 6311, 6302)) (Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492) § 24.278 Tax credit for certain small domestic producers. (a) General. (b) Special rules relating to eligibility for wine credit Controlled groups. (2) Credit for transferees in bond. (i) Wine produced by any person would be eligible for any credit under this section if removed by that person during the calendar year; (ii) Wine produced by that person is removed during that calendar year by the transferee to whom that wine was transferred in bond and who is liable for the tax imposed by 26 U.S.C. 5041 with respect to that wine; (iii) That producer holds title to that wine at the time of its removal and provides to the transferee such information as is necessary to properly determine the transferee's credit under this paragraph; and (iv) At the time of taxable removal, the producer provides to the transferee, in writing (each retaining a copy with the record of taxpaid removal from bond pursuant to § 24.310), the following information: (A) The names of the producer and transferee; (B) The quantity and tax class of the wines to be shipped; (C) The date of removal from bond for consumption or sale; (D) A confirmation that the producer is eligible for credit, with the credit rate to which the wines are entitled; and (E) A confirmation that the subject shipment is within the first 100,000 gallons of eligible wine removed by (or on behalf of) the producer for the calendar year. (c) Time for determining and allowing credit. (d) Computation of credit. (1) For persons who produce 150,000 gallons or less of wine during the calendar year, the credit is $0.90 per gallon for wine ($0.056 for hard cider); (2) For persons who produce more than 150,000 gallons but not more than 250,000 gallons during the calendar year, the credit is reduced by 1 percent for every 1,000 gallons produced in excess of 150,000 gallons. For example, the credit that would be taken by a person who produced 160,500 gallons of wine and hard cider during a calendar year would be reduced by 10 percent, for a net credit against the tax of $0.81 per gallon for wine or $0.0504 for hard cider, as long as the wine or hard cider was among the first 100,000 gallons removed for consumption or sale during the calendar year. (e) Definitions Production. (2) Removals. (f) Preparation of tax return. (g) Denial of deduction. (h) Exception to credit. (26 U.S.C. 5041(c).) (Approved by the Office of Management and Budget under control number 1513-0104) [T.D. TTB-64, 72 FR 65454, Nov. 21, 2007] § 24.279 Tax adjustments related to wine credit. (a) Increasing adjustments. (b) Decreasing adjustments. (26 U.S.C. 5041(c)) (Approved by the Office of Management and Budget under control number 1513-0088) [T.D. TTB-64, 72 FR 65455, Nov. 21, 2007] Transfer of Wine in Bond § 24.280 General. Wine may be removed for transfer in bond, from one bonded wine premises to another bonded wine premises or to a distilled spirits plant. For bulk wine transferred in bond between adjacent or contiguous bonded wine premises or to an adjacent or contiguous distilled spirits plant, an accurately calibrated tank for measuring the wine is required on at least one of the premises. The volume of wine transferred will be recorded to the nearest whole gallon, five-tenths gallon being converted to the next full gallon. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362)) § 24.281 Consignor premises. Prior to transferring wine in bond, the proprietor shall prepare a transfer record prescribed by § 24.309. Except for multiple transfers as provided in § 24.282, a transfer record will be prepared for each shipment. On completion of lading (or completion of transfer by pipeline), the proprietor shall retain one copy of the transfer record for the files and forward the original to the consignee (by the close of the next business day). (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991] § 24.282 Multiple transfers. (a) Truck. (b) Pipeline. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C 5362)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.283 Reconsignment. Prior to or on arrival at the premises of a consignee, wine transferred in bond may be reconsigned by the consignor. The proprietor to whom the wine is reconsigned will be liable for the tax on the wine while it is in transit after reconsignment. Notice of cancellation of the shipment will be made to the other proprietors involved by the proprietor who reconsigned the wine. Where reconsignment is to other than the shipping proprietor, a new transfer record prominently marked “Reconsignment” will be prepared and processed as provided by § 24.281. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C 5362)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-146, 82 FR 1126, Jan. 4, 2017] § 24.284 Consignee premises. When wine is received by transfer in bond, the consignee shall check the shipment against the transfer record and determine by volumetric measure or weight the quantity received. The date received and, if different from the quantity shipped, the quantity received will be recorded on the transfer record. See § 24.267 for provisions applicable to losses in transit. Sealed containers or cases received without apparent loss need not be measured or weighed. The consignee will retain the original of the transfer record and any accompanying documents. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362)) (Approved by the Office of Management and Budget under control number 1512-0298) Removals Without Payment of Tax § 24.290 Removal of wine as distilling material. (a) General. (b) Special natural wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1382, as amended, 1395, as amended (26 U.S.C. 5362, 5373, 5552)) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7665, Jan. 23, 2017] § 24.291 Removal of wine for vinegar production. (a) General. (b) Vinegar plant records. (1) The volume and alcohol content of all wine received, the date of receipt, and the name, registry number, and address of the bonded wine premises from which received; (2) The volume and alcohol content of all wine used in the manufacture of vinegar, and the date of use; (3) The volume and grain strength of the vinegar produced, and the date of production. (This volume will be reported on a 100-grain strength basis and will be determined by multiplying the wine gallons of vinegar produced by the grain strength thereof and dividing the result by 100); and (4) The names and addresses of all persons to whom vinegar is shipped, the volume and grain strength shipped to each, and the date of shipment. (Grain strength is a measure of the acetic acid content of vinegar, expressed as 10 times the grams of acetic acid per 100 mL). (c) Inspection of vinegar plants. (August 16, 1954, ch. 736, 68A Stat. 903, as amended (26 U.S.C. 7606); Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362)) (Approved by the Office of Management and Budget under control numbers 1513-0009 and 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13684, Mar. 22, 1999; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017] § 24.292 Exported wine. (a) General. (b) Return of wine to bonded storage. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended (26 U.S.C. 5362)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004] § 24.293 Wine for Government use. (a) General. (b) Bill of lading and report of shipment. (Sec. 201, Pub. L. 85-859, 72 Stat. 1380, as amended, 1381, as amended (26 U.S.C. 5362, 5367, 7510)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.294 Destruction of wine. (a) General. (b) Record of destruction. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5370)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13686, Mar. 22, 1999] Return of Wine to Bond § 24.295 Return of wine to bond. (a) General. (b) Receipt. (c) Records. (Sec. 201, Pub. L. 85-859, 72 Stat. 1332, as amended, 1382, as amended (26 U.S.C. 5044, 5371)) (Approved by the Office of Management and Budget under control numbers 1513-0053, 1513-0115, and 1513-0030) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-344, 58 FR 40354, July 28, 1993; T.D. ATF-376, 61 FR 31030, June 19, 1996; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015] Taxpaid Wine Operations § 24.296 Taxpaid wine operations. (a) General. (b) Treatment and blending. [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-409, 64 FR 13683, Mar. 22, 1999] Subpart O—Records and Reports § 24.300 General. (a) Records and reports. (1) Per case. Bottles per case Net content each bottle Equivalent gallonage 120 50 mL 1.58502 60 100 mL 1.58502 48 187 mL 2.37119 24 375 mL 2.37753 12 750 mL 2.37753 12 1 liter 3.17004 6 1.5 liter 2.37753 4 3 liter 3.17004 (2) Per liter. (b) Time of making entries. (c) Prescribed forms. (d) Period of retention. (e) Data processing. (2) Data which has been accumulated on cards, tapes, discs, or other accepted recording media will be retrievable within five business days. (3) The applicable data processing program will be made available for examination if requested by an appropriate TTB officer. (f) Photographic copies of records. (g) TTB F 5120.17, Report of Bonded Wine Premises Operations. (1) Monthly report. (2) Quarterly or annual report. General. (ii) Eligibility for quarterly report filing. (iii) Eligibility for annual report filing. (3) No reportable activity. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5555)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, 13684, 13686, Mar. 22, 1999; T.D. TTB-41, 71 FR 5603, Feb. 2, 2006; T.D. TTB-89, 76 FR 3511, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017] § 24.301 Bulk still wine and bulk still hard cider record. A proprietor who produces or receives still wine or bulk still hard cider in bond, (including wine intended for use as distilling material or vinegar stock to which water has not yet been added) shall maintain records of transactions for bulk still wine or bulk still hard cider. Records will be maintained for each tax class of still wine or for hard cider including the date the transaction occurred. The bulk still wine and bulk still hard cider or for hard cider record will contain the following: (a) The volume produced by fermentation in wine gallons determined by actual measurement; (b) The volume received, shipped taxpaid, removed (e.g., taxpaid, in bond, export, family use, samples) and used in sparkling wine or sparkling hard cider production; if a tax credit under 26 U.S.C. 5041(c) may be claimed, the record will be maintained in sufficient detail to insure that such a tax credit is properly claimed; (c) The specific type of production method used, e.g., natural fermentation, amelioration, sweetening, addition of spirits, blending; (d) The volume of wine used and produced by amelioration, addition of spirits or sweetening, as determined by measurements of the wine before and after production. (e) The volume of wine used for and produced by blending, if wines of different tax classes are blended together; (f) The volume of wine used to produce formula wine, vinegar stock and distilling material; (g) The volume of wine removed to fermenters for refermentation or removed directly to the production facilities of a distilled spirits plant or vinegar plant; (h) Where a process authorized under § 24.248 is employed, records will be maintained to allow for verification of any limitation specified for the process employed and to ensure that the use of the process is consistent with good commercial practice; (i) Where a treating material is dissolved or dispersed in water as authorized in this part, the volume of water added to the wine; (j) An explanation of any unusual transaction. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)); and (k) If the proprietor is an importer of wine to which the provisions of § 27.140 of this chapter apply, any certification or other records required at the time of release from customs custody under that section. (Approved by the Office of Management and Budget under control number 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. TTB-31, 70 FR 49483, Aug. 24, 2005; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017] § 24.302 Effervescent wine record. A proprietor who produces or receives effervescent wine in bond shall maintain records showing the transaction date and details of production, receipt, storage, removal, and any loss incurred. Records will be maintained for each specific process used (bulk or bottle fermented, injection of carbon dioxide) and by the specific kind of wine, e.g., (a) The volume of still wine or still hard cider filled into bottles or pressurized tanks prior to secondary fermentation or prior to the addition of carbon dioxide; (b) The quantity of any first dosage used; (c) Any in-process bottling losses, e.g., refilling, spillage, breakage; (d) The volume of bottle fermented sparkling wine or bottle fermented sparkling hard cider in process, transferred and received; (e) The volume returned to still wine or still hard cider; (f) The quantity of any finishing dosage used (See § 24.192); (g) The volume of finished effervescent wine bottled or packed (amount produced); (h) The quantity of each item used in the production of dosages, e.g., wine, sugar, spirits; (i) An explanation of any unusual transaction; (j) If the proprietor is an importer of wine to which the provisions of § 27.140 of this chapter apply, any certification or other records required at the time of release from customs custody under that section; and (k) The amount of carbon dioxide in artificially carbonated hard cider or sparkling hard cider. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1513-0115 and 1513-0139) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. TTB-31, 70 FR 49483, Aug. 24, 2005; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024] § 24.303 Formula wine record. A proprietor who produces beverage formula wine shall maintain records showing by transaction date the details of production. The formula wine record will contain the following: (a) A number for each lot produced; (b) The approved formula number for each lot; (c) The volume of wine used in the production; (d) The volume produced and the gain or loss resulting from the production of each lot as determined by comparing the volume finished with the volume used (report the total loss or gain on the TTB F 5120.17 for the period in question); (e) An explanation of any unusual loss or gain; (f) The production of essences showing the formula number, quantities of spirits and herbs used, and the amount produced; (g) The quantity of essences purchased, and the use, transfer or other disposition of essences produced or purchased; and (h) A record of the receipt and use or other disposition of all herbs, aromatics, essences, extracts, or other flavoring materials used in the production of formula wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control numbers 1512-0059, 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993] § 24.304 Chaptalization (Brix adjustment) and amelioration record. (a) General. (1) The volume of juice (exclusive of pulp) deposited in fermenters; (2) The maximum volume of ameliorating material to which the juice is entitled, as provided in § 24.178; (3) The volume of ameliorating or chaptalizing material used; and (4) The volume of material authorized but not yet used. (b) Supporting records. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended 1385, as amended (26 U.S.C. 5367, 5384)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31082, July 9, 1991; T.D. ATF-409, 64 FR 13684, Mar. 22, 1999] § 24.305 Sweetening record. A proprietor who sweetens natural wine with sugar or juice (unconcentrated or concentrated) under the provisions of this part shall maintain a record of sweetening by transaction date. The record will contain the following: (a) The gallons and degrees Brix of the wine before sweetening; (b) If concentrate is used, the degrees Brix of the concentrate; (c) If sugar or juice, or both, are used, the gallon equivalent that would be required to sweeten the volume of wine to its maximum authorized total solids content; (d) The quantity of sugar or juice used for sweetening; and (e) The gallons and degrees Brix of the wine produced by sweetening. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.306 Distilling material or vinegar stock record. A proprietor who produces or receives wine containing excess water which will be used expressly as distilling material or vinegar stock shall maintain a record by transaction date showing the amount and kind produced, received, from whom received, removed, and to whom sent. The proprietor shall keep a record of each type of material from which the distilling material or vinegar stock was fermented (e.g., grape, apple, strawberry). The volume of distilling material or vinegar stock produced, including wine lees refermented for use as distilling material, will be recorded upon removal from fermenting tanks. However, the provisions of this section do not apply to standard wine or unwatered wine lees recorded on the proprietor's record of bulk still wine and bulk still hard cider and removed for use as distilling material or vinegar stock. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017] § 24.307 Nonbeverage wine record. A proprietor who produces nonbeverage wine or wine products shall maintain a record by transaction date of such wine produced, received and withdrawn as follows: (a) The kind, volume, and percent alcohol by volume of wine or wine products made from wine, which was rendered unfit for beverage use; (b) The kind and quantity of materials received and used to render wine, or wine products made from wine, unfit for beverage use; (c) The name, volume, percent alcohol by volume, and formula number, if produced under a formula, of each nonbeverage wine or wine product produced; (d) The volume, percent alcohol by volume, and formula number, if applicable, of the nonbeverage wine or wine products received; (e) The volume, percent alcohol by volume, and formula number, if applicable, of the nonbeverage wine or wine products removed; (f) The name and address of the person to whom removed; however, on any individual sale of less than 80 liters the name and address of the purchaser need not be recorded; and (g) In the case of vinegar production, the acetic acid and ethyl alcohol content of the vinegar. When the proprietor sends nonbeverage wine or wine products free of tax to an adjacent or contiguous premises operated by the proprietor, records required by paragraphs (e) and (g) of this section will be maintained at each location. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.308 Bottled or packed wine record. A proprietor who bottles, packs, or receives bottled or packed beverage wine in bond shall maintain a record, by tax class, as follows: (a) The date, kind of wine, the number and size of bottle or other container filled (if not available in another record), and volume of wine bottled or packed, received in bond, returned to bond, and removed, e.g., taxpaid removals, in bond removals, dumped to bulk or destroyed, breakage, used for tasting. The volume recorded as bottled for bottle fermented sparkling wine or bottle fermented sparkling hard cider is determined after the disgorging and refilling process. (b) The label used on bottles or other containers will be shown in the record by using the “Applicant's Serial No.” which appears as item 2 on the label approval form, TTB F 5100.31 or a similar system which will allow for verification of labels used on bottles or containers. (c) The fill tests and alcohol tests required by § 24.255 for each lot of wine bottled or packed, or for each bottling or packing line operated each day, showing the date, type of test, item tested and the test results. (d) If a tax credit under 26 U.S.C. 5041(c) may be claimed, the record will be maintained in sufficient detail to insure that such a tax credit is properly claimed. (Approved by the Office of Management and Budget under control number 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-147, 82 FR 7665, Jan. 23, 2017] § 24.309 Transfer in bond record. A proprietor who transfers wine in bond shall prepare a transfer record. The transfer record will show: (a) The name, address and registry number of the proprietor; (b) The name, address and registry number of the consignee; (c) The shipping date; (d) The kind of wine (class and type); (e) The alcohol content or the tax class; (f) The number containers larger than four liters and cases; (g) The serial numbers of cases (if any) or containers larger than four liters; (h) Any bulk container identification marks; (i) The volume shipped in gallons or liters; (if a tax credit under 26 U.S.C. 5041(c) may be claimed, the record will be maintained in sufficient detail to insure that such a tax credit is properly claimed); (j) The serial number of any seal used; (k) For unlabeled bottled or packed wine, the registry number of the bottler or packer; (l) Information necessary for compliance with § 24.314, e.g., the varietal, vintage, appellation of origin designation of the wine or any other information that may be stated on the label; and (m) Information as to any added substance or cellar treatment for which a label declaration is required for the finished product, or any other cellar treatment for which limitations are prescribed in this part, e.g., amount of decolorizing material used and kind and quantity of acid used. (Sec 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 24.310 Taxpaid removals from bond record. A proprietor removing wine from bond for consumption or sale on determination of tax shall maintain a record of wine removed at the time of removal either to taxpaid wine premises, taxpaid wine bottling house premises, or for direct shipment. The record will show the date of removal, the name and address of the person to whom shipped, and the volume, kind (class and type), and alcohol content or tax class of the wine. However, on any individual sale of less than 80 liters, the name and address of the purchaser need not be recorded. The proprietor who removes taxpaid bulk wine to another wine premises shall prepare the shipping record and follow the procedures prescribed by § 24.281. The volume of wine removed taxpaid will be summarized daily by tax class in wine gallons to the nearest tenth gallon. (Approved by the Office of Management and Budget under control number 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024] § 24.311 Taxpaid wine record. A proprietor who has taxpaid United States or foreign wine on taxpaid wine premises or on taxpaid wine bottling house premises shall maintain records as follows: (a) Record of receipts. (2) The registry number (if any) of the wine premises from which received; (3) The date of receipt; (4) The kind of wine (class, type and, in the case of foreign wine, country of origin); (5) Alcohol content or tax class of the wine; and, (6) The volume of wine received in liters and gallons. (b) Record of removals. (2) The date of removal; (3) The kind of wine (class, type and, in the case of foreign wine or a blend of United States and foreign wine, country of origin); and (4) The volume of wine shipped in liters or gallons. (c) Record of cases or containers filled. (2) The kind (class, type, and in the case of foreign wine or a blend of United States and foreign wine, country of origin) of wine bottled or packed; (3) The number of the tank used to fill the bottles or other containers; (4) The size of bottles or other containers and the number of cases or containers filled; (5) The serial number or date of fill marked on the cases or containers filled; and (6) The total volume of wine bottled or packed in liters or wine gallons. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)). (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991] § 24.312 Wine returned to bond record. A proprietor shall maintain a record of any taxpaid wine returned to bond as follows: (a) The kind, volume, and tax class of the wine; (b) With regard to each tax class, the amount of tax previously paid or determined; (c) The location of the wine premises at which the wine was bottled or packed and, if known, the identity of the bonded wine premises from which removed on determination of tax; (d) The date the wine was returned to bond; (e) The serial numbers or other identifying marks on the cases or containers in which the wine was received; and (f) The final disposition of the wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. TTB-130, 80 FR 55248, Sept. 15, 2015] § 24.313 Inventory record. A proprietor who files monthly or quarterly reports shall prepare a record of the physical inventory of all wine and spirits in storage at the close of business for each tax year, or where a different cycle has been established, the inventory will be taken at the end of that annual period. Such proprietors may use an annual inventory period different from the period beginning July 1 and ending June 30 by submitting a notice to the appropriate TTB officer. However, proprietors who file quarterly reports must select an annual inventory period that begins on the first day of a calendar quarter. Proprietors who file reports on a calendar year basis under the provisions of § 24.300(g) of this part shall take the physical inventory at the close of the calendar year. The inventory record will be retained on file with the proprietor's TTB F 5120.17, Report of Bonded Wine Premises Operations, for the reporting period when the inventory was taken. If a proprietor who files monthly reports takes a complete inventory at other times during the year, losses disclosed will be reported on the TTB F 5120.17 and the inventory record will be maintained on file with the report for each month when an inventory was taken. The proprietor's inventory record will include: (a) Description of wine. (2) Wine intended to be marketed with a vintage date, varietal name, or geographical designation will be appropriately identified, e.g., 1977 Napa Valley Pinot Noir; and (3) If the wine is other than grape wine, state the type, e.g., orange, honey. (b) Bulk containers. (c) Cases, bottles and other similar containers. (d) Inventory summary. (e) Inventory record. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367, 5369)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993; T.D. ATF-409, 64 FR 13683, Mar. 22, 1999; T.D. TTB-41, 71 FR 5603, Feb. 2, 2006] § 24.314 Label information record. A proprietor who removes bottled or packed wine with information stated on the label (e.g., varietal, vintage, appellation of origin, analytical data, date of harvest) shall have complete records so that the information appearing on the label may be verified by a TTB audit. A wine is not entitled to have information stated on the label unless the information can be readily verified by a complete and accurate record trail from the beginning source material to removal of the wine for consumption or sale. All records necessary to verify wine label information are subject to the record retention requirements of § 24.300(d). (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 24.315 Materials received and used record. (a) General. (b) Concentrated fruit juice. (c) Volatile fruit-flavor concentrate. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.316 Spirits record. A proprietor who receives, stores, or uses spirits shall maintain a record of receipt and use. The record will show the date of receipt, from whom received, and the kind and proof gallons. The spirits record will also show by date and proof gallons the spirits used or removed from bonded wine premises and to whom. The proof gallons of spirits received, used, removed from bonded wine premises, and on hand will be summarized and the account balanced at the end of each reporting period and reported on the TTB F 5120.17. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended, 1382, as amended, 1383, as amended (26 U.S.C. 5367, 5373)) (Approved by the Office of Management and Budget under control numbers 1512-0216 and 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991; T.D. ATF-338, 58 FR 19065, Apr. 12, 1993] § 24.317 Sugar record. A proprietor who receives, stores, or uses sugar shall maintain a record of receipt and use. The record will show the date of receipt, from whom received, and the kind and quantity. Invoices covering purchases will be retained. When sugar is used for chaptalization (Brix adjustment), amelioration or sweetening, the record will show the date, kind, and quantity used. The sugar record will also show sugar used in the production of allied products and any sugar removed from the wine premises. At the close of each reporting period, the account will be balanced and the quantity of each kind of sugar remaining on hand will be shown. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-338, 58 FR 19065, Apr. 12, 1993] § 24.318 Acid record. A proprietor who adds acid to correct a natural deficiency in juice or wine or to stabilize wine shall maintain a record showing date of use, the kind and quantity of acid used, the kinds and volume of juice or wine in which used, and, when used to correct natural deficiency, the fixed acid level of juice or of wine before and after the addition of acid. The record will account for all acids received and be supported by purchase invoices. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.319 Carbon dioxide record. A proprietor who uses carbon dioxide in still wine or still hard cider shall maintain a record of the laboratory tests conducted to establish compliance with the limitations prescribed in § 24.245. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1513-0115) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-147, 82 FR 7665, Jan. 23, 2017] § 24.320 Chemical record. A proprietor who uses chemicals, preservatives, or other such materials shall maintain a record of the purchase, receipt and disposition of these materials. The record will show the kinds and quantities received, the date of receipt, and the names and addresses from whom purchased. A record of use in juice or wine of any of these materials, except for filtering aids, inert fining agents, sulfur dioxide, carbon dioxide (except as provided in § 24.319), nitrogen and oxygen, will be maintained, showing the kind, quantity, and date of use, and kind and volume of juice or wine in which used. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. ATF-312, 56 FR 31083, July 9, 1991] § 24.321 Decolorizing material record. A proprietor who treats juice or wine to remove excess color with activated carbon or any other decolorizing material shall maintain a record to show: (a) The date the decolorizing material is added to the juice or wine; (b) The type (e.g. grape variety or kind of wine) and volume of juice or wine treated with decolorizing material; and (c) The kind and quantity of decolorizing material used to treat the juice or wine. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.322 Allied products record. A proprietor who uses fruit, fruit juice or concentrated fruit juice in the production of allied products shall maintain a record of these materials in accordance with § 24.315. The record will also show the production and disposition of other allied products. If sugar, acids, or chemicals are used in allied products, the receipt and use will also be recorded. (Sec. 201, Pub. L. 85-859, 72 Stat. 1381, as amended (26 U.S.C. 5367)) (Approved by the Office of Management and Budget under control number 1512-0298) § 24.323 Excise Tax Return form. A proprietor who removes wine subject to tax shall prepare a TTB F 5000.24 , Excise Tax Return. Any increase or decrease in tax due to previous return errors or for authorized credits will be shown on the return. The TTB F 5000.24 will be prepared and filed by the proprietor in accordance with the instructions printed on the form. (August 16, 1954, ch. 736, 68A Stat. 775, as amended, 777, as amended, 391, as amended, 917, as amended (26 U.S.C. 5061, 7805)) (Approved by the Office of Management and Budget under control numbers 1512-0467 and 1512-0492) [T.D. ATF-299, 55 FR 24989, June 19, 1990, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017; T.D. TTB-196, 89 FR 87941, Nov. 6, 2024] Subpart P—Eligibility for the Hard Cider Tax Rate Source: T.D. TTB-147, 82 FR 7665, Jan. 23, 2017, unless otherwise noted. § 24.331 Wine eligible for the hard cider tax rate. A wine removed on or after January 1, 2017 is eligible for the hard cider tax rate listed in § 24.270 if: (a) It contains no more than 0.64 gram of carbon dioxide per 100 milliliters of wine; (b) It is derived primarily from apples or pears, or from apple juice concentrate or pear juice concentrate and water, as described in § 24.332(a); (c) It contains no fruit product or fruit flavoring other than apple or pear, as described in § 24.332(b) and (c); and (d) It contains at least one-half of 1 percent and less than 8.5 percent alcohol by volume. (Sec. 335, Pub. L. 114-113, 129 Stat. 3109, as amended (26 U.S.C. 5041)) § 24.332 Hard cider materials. This section pertains to wine that is eligible for the hard cider tax rate as set out in § 24.331. (a) Apples and pears. (b) Fruit products. (2) Notwithstanding the provisions of § 24.332(b)(1), an authorized wine treating material set forth in § 24.246 that is derived from a fruit other than apple or pear may be used in the production of wine otherwise eligible for the hard cider tax rate if it is used for a purpose other than flavoring and it is either used in accordance with the wine treating materials provisions of § 24.246 (if used in a natural wine), or used in amounts insufficient to impart a fruit flavor other than apple or pear (if used in a special natural wine or other than standard wine). In determining whether the use of wine treating materials derived from a fruit other than apple or pear is for a purpose other than flavoring, TTB will consider such factors as the labeling and advertising of the product. Any written or pictorial reference to a material derived from a fruit other than apple or pear (other than the inclusion of a wine treating material in an ingredient labeling statement) in the labeling or advertising of a wine will be treated as evidence that the wine treating material was added for the purpose of flavoring the wine. (c) Flavorings. (Sec. 335, Pub. L. 114-113, 129 Stat. 3109, as amended (26 U.S.C. 5041))

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