PART 25—BEER Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 5051-5054, 5056, 5061, 5121, 5122-5124, 5222, 5401-5403, 5411-5417, 5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 6091, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 6806, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308. Source: T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, unless otherwise noted. Editorial Note: Nomenclature changes to part 25 appear by T.D. ATF-437, 66 FR 5478, 5479, Jan. 19, 2001. Subpart A—Scope of Regulations § 25.1 Production and removal of beer. The regulations in this part relate to beer and cereal beverages and cover the location, construction, equipment, operations and qualifications of breweries and pilot brewing plants. § 25.2 Territorial extent. This part applies to the several States of the United States and the District of Columbia. § 25.3 Forms prescribed. (a) The appropriate TTB officer is authorized to prescribe all forms required by this part, including bonds, applications, notices, reports, returns, and records. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished 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-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986, as amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. ATF-437, 66 FR 5478, Jan. 19, 2001; T.D. TTB-44, 71 FR 16941, Apr. 4, 2006; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.4 Related regulations. Regulations relating to this part are listed below: 27 CFR Part 7—Labeling and Advertising of Malt Beverages. 27 CFR Part 28—Exportation of Alcohol. 27 CFR Part 29—Stills and Miscellaneous Regulations. 31 CFR Part 225—Acceptance of Bonds Secured by Government Obligations in Lieu of Bonds with Sureties. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-462, 66 FR 42737, Aug. 15, 2001; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004; T.D. TTB-146, 82 FR 1126, Jan. 4, 2017] § 25.5 OMB control numbers assigned under the Paperwork Reduction Act. (a) Purpose. (b) Display, OMB control number 1512-0045. (c) Display, OMB control number 1512-0052. (d) Display, OMB control number 1512-0079. (e) Display, OMB control number 1512-0141. (f) Display, OMB control number 1512-0333. (g) Display, OMB control number 1512-0457. (h) Display, OMB control number 1512-0467. (i) Display, OMB control number 1512-0472. (j) Display, OMB control number 1512-0478. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986; T.D. ATF-268, 53 FR 8628, Mar. 16, 1988] § 25.6 Delegations of the Administrator. The regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.25, Delegation of the Administrator's Authorities in 27 CFR Part 25, Beer. You may obtain a copy of this order by accessing the TTB Web site ( https://www.ttb.gov [T.D. TTB-44, 71 FR 16941, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] Subpart B—Definitions § 25.11 Meaning of terms. When used in this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms have the meanings given in this section. Administrator. Appropriate TTB officer. Balling. Bank. Banking day. Barrel. Beer. Bonded premises of a distilled spirits plant. Bonded wine premises. Bonded winery. Bottle. Bottling. Brewer. Brewery. Brewing. Business day. Calendar quarter. Cereal beverage. Commercial bank. Concentrate. Director of the service center. District Director. Electronic fund transfer or EFT. Executed under penalties of perjury. Fiscal year. Gallon. Losses. Package. Packaging. Person. Racking. Removed for consumption or sale. Secretary of the Treasury Secretary. Service center. Shortage. This chapter. Treasury account. U.S.C. Wort. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993; T.D. ATF-437, 66 FR 5478, Jan. 19, 2001; T.D. TTB-21, 70 FR 235, Jan. 3, 2005; T.D. TTB-44, 71 FR 16941, Apr. 4, 2006; 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 87943, Nov. 6, 2024] Standards for Beer § 25.15 Materials for the production of beer. (a) Beer must be brewed from malt or from substitutes for malt. Only rice, grain of any kind, bran, glucose, sugar, and molasses are substitutes for malt. In addition, you may also use the following materials as adjuncts in fermenting beer: honey, fruit, fruit juice, fruit concentrate, herbs, spices, and other food materials. (b) You may use flavors and other nonbeverage ingredients containing alcohol in producing beer. Flavors and other nonbeverage ingredients containing alcohol may contribute no more than 49% of the overall alcohol content of the finished beer. For example, a finished beer that contains 5.0% alcohol by volume must derive a minimum of 2.55% alcohol by volume from the fermentation of ingredients at the brewery and may derive not more than 2.45% alcohol by volume from the addition of flavors and other nonbeverage ingredients containing alcohol. In the case of beer with an alcohol content of more than 6% by volume, no more than 1.5% of the volume of the beer may consist of alcohol derived from added flavors and other nonbeverage ingredients containing alcohol. [T.D. TTB-21, 70 FR 235, Jan. 3, 2005] Subpart C—Location and Use of Brewery § 25.21 Restrictions on location. A brewery may not be established or operated in any dwelling house or on board any vessel or boat, or in any building or on any premises where the revenue will be jeopardized or the effective administration of this part will be hindered. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402)) § 25.22 Continuity of brewery. Brewery premises will be unbroken except that they may be separated by public passageways, streets, highways, waterways, carrier rights-of-way, or partitions. If the brewery premises are separated, the parts will abut on the dividing medium and be adjacent to each other. If the brewer has facilities for loading, or for case packing or storage which are located within reasonable proximity to the brewery, the appropriate TTB officer may approve these facilities as part of the brewery if the revenue will not be jeopardized. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402)) § 25.23 Restrictions on use. (a) Use of brewery in production of beer or cereal beverage. (1) For producing, packaging and storing beer, cereal beverages, vitamins, ice, malt, malt syrup, and other by-products of the brewing process, or soft drinks and other nonalcoholic beverages; (2) For processing spent grain, carbon dioxide, and yeast; and (3) For storing packages and supplies necessary or connected to brewery operations. (b) Other authorized uses. (1) Require the use of by-products or waste from the production of beer; (2) Utilize buildings, rooms, areas, or equipment not fully employed in the production or packaging of beer; (3) Are reasonably necessary to realize the maximum benefit from the premises and equipment and reduce the overhead of the brewery; (4) Are in the public interest because of emergency conditions; (5) Involve experiments or research projects related to equipment, materials, processes, products, by-products, or waste of the brewery; or (6) Involve operation of a tavern on brewery premises in accordance with § 25.25. (c) Application. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-268, 53 FR 8628, Mar. 16, 1988] § 25.24 Storage of beer. (a) Taxpaid beer. (1) Taxpaid beer will be segregated in such a manner as to preclude mixing with nontaxpaid beer; (2) If required by part 1 of this chapter, the brewer shall have a wholesalers or importers basic permit under the Federal Alcohol Administration Act, and keep records of the taxpaid beer as a wholesaler or importer under part 31 of this chapter. (3) Taxpaid beer may be stored in packages; (4) Taxpaid beer may not be relabeled; (5) Taxpaid beer may not be shown on required brewery records; and (6) The appropriate TTB officer may require physical segregation of taxpaid beer, or marking to show the status of taxpaid beer, if necessary to protect the revenue. (b) Untaxpaid beer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-268, 53 FR 8628, Mar. 16, 1988; T.D. TTB-25, 70 FR 19883, Apr. 15, 2005; T.D. TTB-79, 74 FR 37404, July 28, 2009] § 25.25 Operation of a tavern on brewery premises. (a) General. (b) Brewer's Notice. (1) The applicant shall identify the portion of the brewery which will be operated as a tavern by providing a diagram or narrative description of the boundaries of the tavern. The diagram or description shall identify areas of the brewery which are accessible to the public and areas which are not. The applicant shall describe security measures to be used to segregate public areas from non-public areas. (2) The applicant shall describe in detail the method to be used for measuring beer for the purposes of tax determination. (3) The applicant shall identify the tanks which will periodically contain tax-determined beer, and any other areas where tax-determined beer will be stored. (c) Procedures. (1) The brewery shall have a suitable method for measurement of the beer, such as a meter or gauge glass. Tax determination shall consist of the measurement of the beer and the preparation of the brewer's record of tax determination, required by § 25.292(a)(8). The taxes shall be determined prior to the time that the beer is dispensed into a container for consumption. (2) If the brewer uses one or more tanks for tax determination, the following procedures shall apply: (i) Each such tank shall be durably marked with the words “tax-determination tank”; (ii) The taxes shall be determined each time beer is added to a tax-determination tank; and (iii) The brewer may never simultaneously pump into and out of a tax-determination tank. (3) A brewer qualified under this section may store, on brewery premises, tax-determined beer which is intended for sale at a tavern operated on brewery premises, in accordance with this section. The prohibition of § 25.24 shall not apply to such tax-determined beer. (4) Beer consumed by employees and visitors in the brewery's tavern shall be beer on which the tax has been paid or determined. [T.D. ATF-268, 53 FR 8628, Mar. 16, 1988] Subpart D—Construction and Equipment Construction § 25.31 Brewery buildings. Brewery buildings shall be arranged and constructed to afford adequate protection to the revenue and to facilitate inspection by appropriate TTB officers. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5402)) Equipment § 25.35 Tanks. Each stationary tank, vat, cask or other container used, or intended for use, as a receptacle for wort, beer or concentrate produced from beer shall: (a) Be durably marked with a serial number and capacity; and (b) Be equipped with a suitable measuring device. The brewer may provide meters or other suitable portable devices for measuring contents of tanks or containers in lieu of providing each tank or container with a measuring device. (Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552)) § 25.36 Empty container storage. Empty barrels, kegs, bottles, other containers, or other supplies stored in the brewery will be segregated from filled containers. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411)) Subpart E—Measurement of Beer § 25.41 Measuring system required. The brewer shall accurately and reliably measure the quantity of beer transferred from the brewery cellars for bottling and for racking. The brewer may use a measuring device, such as a meter or gauge glass, or any other suitable method. (Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552)) § 25.42 Testing of measuring devices. (a) General requirements. (1) Date of test; (2) Identity of meter or measuring device; (3) Result of test; and (4) Corrective action taken, if necessary. (b) Requirements for beer meters. (c) Authority to require tests. (Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended (26 U.S.C. 5552)) Subpart F—Miscellaneous Provisions § 25.51 Right of Entry and Examination. An appropriate TTB officer may enter, during normal business hours, a brewery or other place where beer is stored and may, when the premises are open at other times, enter those premises in the performance of official duties. Appropriate TTB officers may make inspections as the appropriate TTB officer deems necessary to determine that operations are conducted in compliance with the law and this part. The owner of any building or place where beer is produced, made, or kept, or person having charge over such premises, who refuses to admit an appropriate TTB officer acting under 26 U.S.C. 7606, or who refuses to permit an appropriate TTB officer to examine beer must, for each refusal, forfeit $500. [T.D. ATF-437, 66 FR 5478, Jan. 19, 2001] § 25.52 Variations from requirements. (a) Exceptions to construction, equipment and methods of operations General. (i) Will afford the protection to the revenue intended by the specifications in this part; (ii) Will not hinder the effective administration of this part, and (iii) Is not contrary to any provision of law. (2) Application. (3) Approval by appropriate TTB officer. (i) The brewer shows good cause for its use; (ii) It is consistent with the purpose and effect of the procedure prescribed by this part and provides equal security to the revenue; (iii) It is not contrary to law; and (iv) It will not cause an increase in cost to the Government and will not hinder the effective administration of this part. (4) Exceptions. (5) Conditions of approval. (b) Emergency variations from requirements Application. (2) Approval. (i) An emergency exists; (ii) The variation from the requirements is necessary; (iii) It will afford the same security and protection to the revenue as intended by the specific regulations; (iv) It will not hinder the effective administration of this part; and (v) It is not contrary to law. (3) Conditions of approval. (c) Automatic termination of approval. (d) Withdrawal of approval. (Sec. 201, Pub. L. 85-859, 72 Stat. 1395, as amended, 1396, as amended (26 U.S.C. 5552, 5556)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001] Samples Source: Sections 25.53 and 25.55 through 25.58 appear at 70 FR 235, Jan. 3, 2005, unless otherwise noted. § 25.53 Submissions of samples of fermented products. The appropriate TTB officer may, at any time, require you to submit samples of: (a) Cereal beverage, saké, or any fermented product produced at the brewery, (b) Materials used in the production of cereal beverage, saké, or any fermented product; and (c) Cereal beverage, saké, or any fermented product, in conjunction with the filing of a formula. (26 U.S.C. 5415, 5555, 7805(a)) Formulas § 25.55 Formulas for fermented products. (a) For what fermented products must a formula be filed? (1) Any fermented product that will be treated by any processing, filtration, or other method of manufacture that is not generally recognized as a traditional process in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor.” For purposes of this paragraph: (i) Removal of any volume of water from beer, filtration of beer to substantially change the color, flavor, or character, separation of beer into different components, reverse osmosis, concentration of beer, and ion exchange treatments are examples of non-traditional processes for which you must file a formula. (ii) Pasteurization, filtration prior to bottling, filtration in lieu of pasteurization, centrifuging for clarity, lagering, carbonation, and blending are examples of traditional processes for which you do not need to file a formula. (iii) If you have questions about whether or not use of a particular process not listed in this section requires the filing of a formula, you may request a determination from TTB in accordance with paragraph (f) of this section. (2) Any fermented product to which flavors or other nonbeverage ingredients (other than hop extract) containing alcohol will be added. (3) Subject to paragraph (f) of this section, any fermented product to which coloring or natural or artificial flavors will be added. (4) Subject to paragraph (f) of this section, any fermented product to which fruit, fruit juice, fruit concentrate, herbs, spices, honey, maple syrup, or other food materials will be added. (5) Saké, including flavored saké and sparkling saké. (b) Are separate formulas required for different products? (2) You may file a formula for a beer base to be used in the production of one or more other fermented products. The beer base must conform to the standards set forth in § 25.15. (c) When must I file a formula? (2) You may, for research and development purposes (including consumer taste testing), produce a fermented product without an approved formula, but you may not sell or market this product until you receive approval of the formula for it. (d) How long is my formula approval valid? (e) Are my previously approved statements of process valid? (f) Determinations by TTB regarding specific processes and ingredients. (2) You may request a determination from TTB on whether or not the use of a process not listed in paragraph (a)(1) of this section will require the filing of a formula or whether the use of a particular coloring, flavoring, or food material may be exempted from the formula filing requirement of paragraph (a)(3) or paragraph (a)(4) of this section. You should mail your request to the Assistant Director, Alcohol Labeling and Formulation Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005. (i) When requesting a determination as to whether a process is subject to the formula filing and approval requirement, the request must include: (A) A detailed description of the proposed process; (B) Evidence establishing that the proposed process is generally recognized as a traditional process in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor”; and (C) An explanation of the effect of the proposed process on the production of a fermented product. (ii) When requesting an exemption from the formula filing requirement in paragraph (a)(3) or paragraph (a)(4) of this section regarding coloring, flavoring, or food material ingredients, the request must include the following information: (A) A description of the proposed ingredient; (B) Evidence establishing that the proposed ingredient is generally recognized as a traditional ingredient in the production of a fermented beverage designated as “beer,” “ale,” “porter,” “stout,” “lager,” or “malt liquor”; and (C) An explanation of the effect of the proposed ingredient in the production of a fermented product. [70 FR 235, Jan. 3, 2005, as amended by T.D. TTB-196, 89 FR 87943, Nov. 62, 2024] § 25.56 Filing of formulas. (a) What are the general requirements for filing a formula? (2) You must serially number each formula, commencing with “1” and continuing in numerical sequence. (3) You must date and sign each formula. (4) You must file two copies of each formula with TTB. (b) Where do I file a formula? [70 FR 235, Jan. 3, 2005, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.57 Formula information. (a) Ingredient information. (2) For fermented products containing flavorings you must list for each formula: The name of the flavor; the product number or TTB drawback number and approval date of the flavor; the name and location (city and State) of the flavor manufacturer; the alcohol content of the flavor; and the point of production at which the flavor was added (that is, before, during, or after fermentation). (3) For formulas that include the use of flavors and other nonbeverage ingredients containing alcohol, you must explicitly indicate: (i) The volume and alcohol content of the beer base; (ii) The maximum volumes of the flavors and other nonbeverage ingredients containing alcohol to be used; (iii) The alcoholic strength of the flavors and other nonbeverage ingredients containing alcohol; (iv) The overall alcohol contribution to the finished product provided by the addition of any flavors or other nonbeverage ingredients containing alcohol. You are not required to list the alcohol contribution of individual flavors and other nonbeverage ingredients containing alcohol. You may state the total alcohol contribution from these ingredients to the finished product; and (v) The final volume and alcohol content of the finished product. (b) Process information. (c) Alcohol content. (d) Beer base formulas. (e) Additional information. (26 U.S.C. 5415, 5555, 7805(a)) § 25.58 New and superseding formulas. (a) New formulas. (1) Create an entirely new fermented product that requires a formula; (2) Add new ingredients to an existing formulation; (3) Delete ingredients from an existing formulation; (4) Change the quantity of an ingredient used from the quantity or range of usage in an approved formula; (5) Change an approved processing, filtration, or other special method of manufacture that requires the filing of a formula; or (6) Change the contribution of alcohol from flavors or ingredients that contain alcohol. (b) Superseding formulas. (1) A superseding formula replaces an existing formula, and you should file one only if you do not intend to use the existing formula any more. A superseding formula must be filed with TTB for approval. When TTB approves a superseding formula, TTB will cancel your previous formula. (2) You may use the same formula number for a superseding formula that you used for the formula the superseding formula replaces, but you must annotate the formula number to indicate it is a superseding formula number. (For example, “Formula 2, superseding.”) (c) When you file a new or superseding formula with TTB, you must follow the procedures and other requirements of §§ 25.56 and 25.57. Subpart G—Qualification of a Brewery Original Qualification § 25.61 General requirements for notice. (a) Establishment. (b) Brewer's Notice, Form 5130.10. (c) Additional information. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001] § 25.62 Data for notice. (a) Required information. (1) Serial number. (2) Purpose for which filed. (3) Name and principal business address of the brewer and the location of the brewery if different from the business address. (4) Statement of the type of business organization and of the persons interested in the business, supported by the information listed in § 25.66. (5) Description of brewery, as specified in § 25.68. (6) A list of trade names which the brewer intends to use in doing business or in packaging beer. (7) [Reserved] (8) The name and address of the owner of the land or buildings comprising the brewery, and of any mortgagee or other encumbrancer of the land or buildings comprising the brewery. (9) The 24-hour cycle of operations at the brewery which is to be the brewer's business day. (10) The process by which the brewer intends to render beer unfit for beverage use when beer is to be removed for use in manufacturing under §§ 25.191-25.192. (11) Statement showing ownership or controlling interests in other breweries which will establish eligibility for the transfer of beer without payment of tax between breweries of the same ownership, as authorized in § 25.181. (12) The date of the notice and the name and signature of the brewer or person authorized to sign on behalf of the brewer. (13) A statement whether the brewer is required to furnish a bond under § 25.91. (b) Incorporation by reference. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-21, 70 FR 237, Jan. 3, 2005; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] § 25.63 Notice of registration. The Brewer's Notice, Form 5130.10, when approved by the appropriate TTB officer, will constitute the notice of registration of the brewery. The appropriate TTB officer will not approve the notice until the notice and all incorporated documents are complete, accurate, and in compliance with the requirements of this part. A person may not operate a brewery until the notice required by this subpart has been approved by the appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.64 Maintenance of notice file. The brewer shall maintain the approved Brewer's Notice, Form 5130.10, and all incorporated documents at the brewery premises, in complete and current condition, readily available for inspection by an appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.65 Power of attorney. The brewer shall execute and file a Form 1534 (5000.8) for each person authorized to sign or act on behalf of the brewer. The Form 1534 (5000.8) is not required for persons whose authority is furnished in the Brewer's Notice, Form 5130.10. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.66 Organizational documents. The supporting information required by paragraph (a)(4) of § 25.62 includes, as applicable, the following: (a) Corporate documents. (2) List of directors and officers, showing their names and addresses; (3) Extracts or digests of minutes of meetings of board of directors, authorizing certain individuals to sign for the corporation; and (4) Statement showing the number of shares of stock or other evidence of ownership, authorized and outstanding, and the voting rights of the respective owners or holders. (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 holding an interest in the brewery, 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. 1388, as amended (26 U.S.C. 5401)) § 25.67 [Reserved] § 25.68 Description of brewery. (a) The Brewer's Notice, Form 5130.10, will include a description of (1) each tract of land comprising the brewery, and (2) a listing of each brewery building by its designated letter or number, giving the approximate ground dimensions and the purpose for which ordinarily used. (b) The description of the land will be in sufficient detail to enable appropriate TTB officers to determine the boundaries of the brewery. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) Changes After Original Qualification § 25.71 Amended or superseding notices. (a) Requirement for amended notice. (2) The appropriate TTB officer may require immediate filing of an amended Form 5130.10 if the accuracy of existing documents has been affected by any change. (b) Requirement for superseding notice. (2) If the information required by § 25.62(a) (4), (5), (6), (7), (9), and (10) is on file as part of an approved Form 5130.10 and is current, the brewer may incorporate by reference those documents as part of any superseding notice. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.72 Change in proprietorship. (a) General. (b) Fiduciary. (2) The fiduciary shall furnish the appropriate TTB officer a certified copy of the court order or other document showing qualification as fiduciary. The effective date of the qualifying documents filed by a fiduciary will be the same as the date of the order, or the date therein specified for the fiduciary to assume control. If the fiduciary was not appointed by the court, the date of the appointment will be the effective date of the qualifying documents filed by the fiduciary. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] § 25.73 Change in partnership. (a) New notice required. (b) Continuing partnership. (1) Under the laws of the State where the partnership was formed, the partnership is not terminated on death or insolvency of a partner(s); and (2) Under the laws of the State where the partnership was formed, the surviving partner(s) has the exclusive right to control and possession of the partnership assets for the purpose of liquidation and settlement; and (3) If the brewer has filed a bond, a consent of surety is filed in which the surety and the surviving partner(s) agree to remain liable on the bond. (c) Settlement of partnership. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 10540, Mar. 27, 1986; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] § 25.74 Change in stockholders. Changes in the list of stockholders furnished under the provisions of § 25.66(c)(1) shall be submitted annually by the brewer on July 1 or on any other date approved by the appropriate TTB officer. When the sale or transfer of capital stock results in a change in the control or management of the business, notification of the change will be made within 30 days in accordance with § 25.71. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.75 Change in officers and directors. When there is any change in the list of officers or directors furnished under the provisions of § 25.66(a)(4), the brewer shall submit, within 30 days of the change, an amended notice on Form 5130.10. If the brewer has shown to the satisfaction of the appropriate TTB officer that certain corporate officers listed on the original notice have no responsibilities in connection with the operations covered by the notice, the appropriate TTB officer may waive the requirements for submitting applications for amended notice to cover changes of those corporate officers. In the case of multiplant brewers, new brewers notices need not be filed for those breweries in which the lists of officers and directors are incorporated by reference in their brewer's notices under § 25.62(b). (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.76 [Reserved] § 25.77 Change in location. When there is a change in location of the brewery, the brewer shall file an amended form TTB F 5130.10, and also shall file a new bond on form TTB F 5130.22 as required under § 25.91 or a consent of surety on form TTB F 5000.18 as required under § 25.92, extending the terms of an existing bond or continuation certificate to cover operations at the new location.
The brewer is not required to file a new bond or consent of surety if the brewer is exempt from bond requirements under § 25.91(e). [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1127, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.78 Change in premises. Except as authorized in § 25.81, when the brewery is to be extended or curtailed, the brewer shall file an amended Form 5130.10. The additional facilities covered by the extension may not be used for the proposed purposes, and the portion to be curtailed may not be used for other than the previously approved purposes, prior to approval of Form 5130.10. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.79 Change in bond status. A brewer must file an amended Brewer's Notice, Form 5130.10, if the brewer's bond status changes because either: (a) A brewer has not furnished any bond and has become required to furnish a bond as provided under § 25.95(b); or (b) A brewer has furnished a bond, has become exempt from bond requirements under § 25.91(e), and chooses to terminate all bond coverage as provided under § 25.106. [T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] Alternation of Operations § 25.81 Alternation of brewery and bonded or taxpaid wine premises. (a) General. (b) Qualifying documents. (1) Form 5120.25 and Form 5130.10 to cover the curtailment and extension of the premises to be alternated. (2) Special diagrams, in duplicate, delineating the brewery premises and the bonded or taxpaid wine premises as they will exist both during extension and curtailment. The diagrams will clearly depict all areas, buildings, floors, rooms, equipment and pipelines which are to be subject to alternation in their relative operating sequence. (3) Evidence of existing bond, consent of surety, continuation certificate, or a new bond to cover the proposed alternation of premises, except to the extent no bond is required under § 24.146 of this chapter or § 25.91(e). (c) Brewer's responsibility. (1) Remove all beer on brewery premises to be alternated to bonded or taxpaid wine premises, or (2) Remove all wine from bonded to taxpaid wine premises to be alternated to brewery premises. (d) Information for notice. (1) Plant name and address; (2) Serial number; (3) Effective date and hour of proposed change; (4) Whether premises are to be curtailed or extended; (5) Purpose of curtailment or extension; (6) Identification of the special diagram depicting the premises as they exist when curtailed or extended; and (7) Date of execution and signature of brewer. (e) Separation of premises. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended, 1389, as amended, 1390, as amended (26 U.S.C. 5401, 5411, 5415)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986, as amended by T.D. ATF-299, 55 FR 24989, June 19, 1990; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] Discontinuance of Business § 25.85 Notice of permanent discontinuance. When a brewer desires to discontinue business permanently, he or she must file a notice on Form 5130.10. The brewer must state the purpose of the notice as “Discontinuance of business” and give the date of the discontinuance. When all beer has been lawfully disposed of, appropriate TTB officer will approve the Form 5130.10 and return a copy to the brewer. The brewer shall file a report on Form 5130.9 showing no beer or cereal beverage on hand and marked “Final Report.” (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001] Subpart H—Bonds and Consents of Surety § 25.91 Requirement for bond. (a) General. (b) Conditions of the bond. (c) Additional information. (d) Bond required before beginning business. (e) Bond exemption. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401); sec. 4(a), Pub. L. 91-673, 84 Stat. 2057 (26 U.S.C. 5417)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] § 25.92 Consent of surety. A brewer may change the terms of any bond filed under this part by filing a consent of surety. Consents of surety will be executed on Form 5000.18 by the brewer and the surety on the bond, with the same formality and proof of authorization as required for the execution of a bond. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] § 25.93 Penal sum of bond. (a) General. (1) Brewers who pay taxes using semimonthly periods. (i) Removed for transfer to the brewery from other breweries owned by the same brewer; (ii) Removed without payment of tax for export or for use as supplies on vessels and aircraft; (iii) Removed without payment of tax for use in research, development, or testing; and (iv) Removed for consumption or sale. (2) Brewers who pay taxes using quarterly or annual return periods. (3) Brewers who are exempt from bond requirements. (b) Concentrate. (c) Maximum and minimum penal sums. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by 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-109, 77 FR 72941, Dec. 7, 2012; T.D. TTB-123, 79 FR 58679, Sept. 30, 2014; T.D. TTB-146, 82 FR 1127, Jan. 4, 2017] § 25.94 Strengthening bonds. (a) Requirement. (b) Restrictions. (c) Date of execution. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.95 Superseding bonds and new bonds for existing brewers. (a) Superseding bonds. (b) New bonds for existing brewers General. (2) Grace period for new bonds for existing brewers Bonds covering operations. (ii) Bonds covering tax-deferred removals. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. TTB-146, 82 FR 1128, Jan. 4, 2017] § 25.96 Superseding bond. When the principal submits a new bond to supersede a bond or bonds in effect, the appropriate TTB officer, after approving the superseding bond, will issue a notice of termination for the superseded bond under the provisions of this subpart. Superseding bonds will show the current date of execution and their effective date. § 25.97 Continuation certificate. If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force for a succeeding period of not less than 4 years from the expiration date of the bond or continuation certificate, the brewer may submit, in lieu of a new bond, a Brewer's Bond Continuation Certificate on Form 5130.23, executed under the penalties of perjury, by the brewer and the surety attesting to continuation of the bond. Each continuation certificate will constitute a bond and all provisions of law and regulations applicable to bonds on Form 5130.22 given under this part, including the disapproval of bonds, are applicable to continuation certificates. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.98 Surety or security. (a) Bond coverage. (b) Corporate surety. (c) Availability of Circular 570. Federal Register https://www.federalregister.gov https://fiscal.treasury.gov (d) More than one corporate surety. (e) Deposit of collateral securities in lieu of corporate surety. (f) Bond guaranteed by deposit of cash or cash equivalent. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1128, Jan. 4, 2017; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.99 Filing powers of attorney. Each bond, continuation certificate, and each consent of surety will be accompanied by a power of attorney authorizing the agent or officer to execute the document. The power of attorney will be prepared on a form provided by the surety company and executed under the corporate seal of the company. If the power of attorney submitted is other than a manually signed original, it will be accompanied by a certificate of its validity. (96 Stat. 1068, 1085 (31 U.S.C. 9304-9308)) Disapproval or Termination of Bonds or Consents of Surety § 25.101 Disapproval of bonds or consents of surety. (a) Reasons for disapproval. (1) Any fraudulent noncompliance with any provision of law of the United States if it related to internal revenue or customs taxation of distilled spirits, wines or beer, or if the offense shall have been compromised with the individual, firm, partnership, corporation, or association on payment of penalties or otherwise; or (2) Any felony under a law of any State or the District of Columbia, or the United States, prohibiting the manufacture, sale, importation, or transportation of distilled spirits, wines, beer, or other intoxicating liquor. (b) Appeal of disapproval. (Sec. 201, Pub. L. 85-859, 72 Stat. 1394, as amended (26 U.S.C. 5551)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001] § 25.102 Termination of surety's liability. The liability of a surety on a bond required by this part will be terminated only as to liability arising on or after: (a) The effective date of a superseding bond; (b) The date of approval of the discontinuance of business of the brewer; (c) Following the giving of notice by the surety; or (d) In the case of a brewer who applies to terminate a surety bond under § 25.106, the date that TTB approves the brewer's application under that section. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. TTB-146, 82 FR 1128, Jan. 4, 2017] § 25.103 Notice by surety for relief from liability under bond. A surety may, at any time, in writing, notify the principal and the appropriate TTB officer that the surety desires after a specified date (not less than 60 days after the date of service on the principal) to be relieved of any liability under the bond which is incurred by the principal after the date named in the notice. The surety shall include proof of service of the notice on the principal with the notice filed with the appropriate TTB officer. The notice will become effective on the date named, unless the surety withdraws the notice, in writing. The surety on the bond remains liable under the bond with respect to any liability incurred by the principal while the bond is in effect. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) § 25.104 Termination of bonds. (a) General. (1) Pursuant to application of the surety as provided in § 25.103; (2) On approval of a superseding bond as provided in § 25.95; (3) When a brewer discontinues business as provided in § 25.85; or (4) When an existing brewer who becomes exempt from bond requirements terminates the bond as provided in § 25.106. (b) Notification. (31 U.S.C. 9301, 9303) [T.D. TTB-146, 82 FR 1128, Jan. 4, 2017] § 25.105 Release of collateral security. Bonds, notes, and other obligations of the United States, pledged and deposited as security in connection with bonds required by this part will be released in accordance with 31 CFR part 225. When the appropriate TTB officer determines there is no outstanding liability against the bond and that it is no longer necessary to hold the security, he or she shall fix the date or dates on which a part or all of the security will be released. At any time prior to the release of the security, the appropriate TTB officer may, for proper cause, extend the date of release of the security for an additional length of time as may be appropriate. (31 U.S.C. 9301, 9303) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1128, Jan 4, 2017] § 25.106 Application to terminate bond by existing brewer who becomes exempt from bond requirements. If a brewer has held a bond and becomes exempt from bond requirements under § 24.91(e), the brewer may apply to TTB to terminate the bond. To apply, the brewer must file an amendment to the Brewer's Notice, Form 5130.10, as provided in § 25.79. The brewer must accurately state in the submission to TTB that the brewer: (a) Will withdraw beer for deferred payment of tax under § 25.164; (b) Reasonably expects to be liable for not more than $50,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 for the current calendar year (see definition of “Reasonably expects” in § 25.164(c)(4)(ii)); and (c) Was liable for not more than $50,000 in such taxes in the preceding calendar year. [T.D TTB-146, 82 FR 1128, Jan. 4, 2017] Subpart I—Dealer Registration and Recordkeeping Source: T.D. TTB-79, 74 FR 37404, July 28, 2009, unless otherwise noted. § 25.111 Definitions. For purposes of this subpart, the following terms have the meanings indicated: Dealer. Retail dealer in liquors. Wholesale dealer in liquors. (26 U.S.C. 5121, 5122) § 25.112 Dealer registration. Every brewer 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 Brewer's Notice, TTB Form 5130.10, filed under subpart G of this part, and approval of that notice by the appropriate TTB officer, will constitute the brewer's registration as a dealer at the brewery. Every brewer registered as a dealer under this subpart 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 wine, spirits, or other brewers' beer. As provided in § 31.52 of this chapter, the brewer is subject to no additional registration for making sales of wine or beer at the customer's place of business. Otherwise, a brewer who conducts business as a dealer at a location other than the brewery must register and keep records in accordance with part 31 of this chapter. (26 U.S.C. 5124) § 25.113 Amending the dealer registration. Every brewer registered as a dealer under this subpart must maintain a current and accurate Brewer's Notice, TTB Form 5130.10. Whenever there is a change to any of the information provided in the approved Brewer's Notice, the brewer must amend the notice within the time period specified in subpart G of this part. An amendment to the Brewer's Notice, Form 5130.10, will also serve as an amendment of the brewer's dealer registration under this subpart. The brewer's dealer registration will also terminate when brewery operations under the Brewer's Notice terminate. (26 U.S.C. 5124) § 25.114 Dealer records. Every dealer is required to maintain records of transactions. Beer transactions that appear in the records required by subpart U of this part will meet the brewer's recordkeeping requirements as a dealer. For other transactions not covered in the brewery records, such as retail sales of wine or distilled spirits in a restaurant at the brewery, or operations as a wholesale dealer in wine or distilled spirits, the brewer must keep the records specified for dealers in part 31 of this chapter. (26 U.S.C. 5121, 5122) Subpart J—Marks, Brands, and Labels § 25.141 Barrels and kegs. (a) General requirements. (b) Breweries of same ownership. (i) May be shown as the only location on the bung, or on the tap cover, or on a separate label attached to the keg; (ii) May be included in a listing of the locations of breweries qualified under this part if the place of production is not given less emphasis than any of the other locations; or (iii) Need not be shown if the brewer's principal place of business is shown in lieu of any other location. The brewer's principal place of business will be the location of a brewery operated by the brewer and qualified under this part. (2) If the location of two or more breweries is shown on the keg, bung, tap cover, or on a separate label attached to the keg (paragraph (b)(1)(ii)), or if the brewer's principal place of business is shown in lieu of the actual place of production (paragraph (b)(1)(iii)), the brewer shall indicate the actual place of production by printing, coding or other markings on the keg, bung, tap cover, or on a separate label attached to the keg. The coding system employed will permit an appropriate TTB officer to determine the place of production (including street address if two or more breweries are located in the same city) of the beer. The brewer must notify the appropriate TTB officer prior to employing a coding system. (c) Label approval required. (Approved by the Office of Management and Budget under control number 1512-0474) (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 FR 8492, Mar. 12, 1986; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001] § 25.142 Bottles. (a) Label requirements. (b) Breweries of same ownership. (i) May be shown as the only location on the label; (ii) May be included in a listing of the locations of breweries qualified under this part if the place of production is not given less emphasis than any of the other locations; or (iii) Need not be shown if the brewer's principal place of business is shown in lieu of any other location. The brewer's principal place of business will be the location of a brewery operated by the brewer and qualified under this part. (2) If the location of two or more breweries is shown on the label (paragraph (b)(1)(ii)), or if the brewer's principal place of business is shown on the label in lieu of the actual place of production (paragraph (b)(1)(iii)), the brewer shall indicate the actual place of production by printing, coding or other markings on the label, bottle, crown or lid. The coding system employed will permit an appropriate TTB officer to determine the place of production (including street address if two or more breweries are located in the same city) of the beer. The brewer must notify the appropriate TTB officer prior to employing a coding system. (c) Distinctive names. (d) Tolerances. (e) Label approval required. (f) Short-fill bottles. (Approved by the Office of Management and Budget under control number 1512-0474) (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 FR 8492, Mar. 12, 1986; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-196, 89 FR 87942, Nov. 6, 2024] § 25.143 Cases. (a) Brewer's name. (1) Cartons of beer, if the visible portion of the cartons shows the required name; or (2) Bottles or cans with plastic carriers, if the visible portion of the bottles or cans shows the required name. (b) Other information. (Approved by the Office of Management and Budget under control number 1512-0474) (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-225, 51 FR 8492, Mar. 12, 1986] § 25.144 Rebranding barrels and kegs. (a) A brewer may not use a barrel or keg which bears the name of more than one brewer, and except as provided in § 25.231, may not use a barrel or keg bearing the name of a brewer other than the producing brewer. (b) A brewer who purchases or otherwise obtains barrels or kegs from another brewer shall permanently remove or durably cover the original marks and brands after notifying the appropriate TTB officer of the proposed action. A brewer may use the barrels or kegs obtained without removing or covering the original marks and brands if the brewer: (1) Adopts a trade name substantially identical to the name appearing on the barrels or kegs; or (2) Succeeds to a brewer who has discontinued business, in which case the brewer may add marks or brands, in accordance with § 25.141, which indicate ownership. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5412)) § 25.145 Tanks, vehicles, and vessels. (a) Each brewer who transfers beer to another brewery of the same ownership (as defined in § 25.181), or who exports beer without payment of tax, as provided in § 25.203, shall plainly and durably mark each tank, tank car, tank truck, tank ship, barge, or deep tank of a vessel in accordance with paragraph (b) of this section. These marks may be placed on a label securely affixed to the route board of the container. (b) The brewer shall mark each container with— (1) The designation “Beer”; (2) The brewer's name; (3) The address of the brewery from which removed; (4) The address of the brewery to which transferred or the marks required for exportation in part 28 of this chapter, as applicable; (5) The date of shipment; and (6) The quantity, expressed in barrels. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1389, as amended (26 U.S.C. 5053, 5414)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3830, Jan. 27, 2004] Subpart K—Tax on Beer Liability for Tax § 25.151 Rate of tax. All beer, brewed or produced, and removed for consumption or sale, is subject to the tax prescribed by 26 U.S.C. 5051, for every barrel containing not more than 31 gallons, and at a like rate for any other quantity or for the fractional parts of a barrel as authorized in § 25.156. (Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051, 5052)) § 25.152 Reduced rate of tax for certain brewers. (a) General. (1) Shall brew or produce the beer at a qualified brewery in the United States; (2) May not produce more than 2,000,000 barrels of beer per calendar year; and (3) May not be a member of a “controlled group” of brewers whose members together produce more than 2,000,000 barrels of beer per calendar year. The appropriate TTB officer shall deny use of the reduced rate of tax provided by 26 U.S.C. 5051(a)(2) where it is determined that the allowance of such a reduced rate would benefit a person who would otherwise fail to qualify for use of such rate. (b) Definitions. (1) Controlled group. (i) Parent-subsidiary controlled groups as defined in 26 CFR 1.1563-1(a)(2); (ii) Brother-sister controlled groups as defined in 26 CFR 1.1563-1(a)(3); and (iii) Combined groups as defined in 26 CFR 1.1563-1(a)(4). Stock ownership in a corporation need not be direct and 51% constructive ownership, defined in 26 CFR 1.1563-3, may be acquired through: (A) An option to purchase stock; (B) Attribution from partnerships; (C) Attribution from estate or trusts; (D) Attribution from corporations; or (E) Ownership by spouses, children, grandchildren, parents, and grandparents. (2) Production of beer. (c) Brewers operating more than one brewery. (d) Controlled groups of brewers. (Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5052)) [T.D. ATD-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-307, 55 FR 52738, Dec. 21, 1990; T.D. ATF-345, 58 FR 40357, July 28, 1993] § 25.153 Persons liable for tax. The tax imposed by law on beer (including beer purchased or procured by one brewer from another) shall be paid by the brewer of the beer at the brewery where produced. The tax on beer transferred to a brewery from other breweries owned by the same brewer in accordance with subpart L of this part shall be paid by the brewer at the brewery from which the beer is removed for consumption or sale. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1389, as amended (26 U.S.C. 5054, 5413, 5414)) Determination of Tax § 25.155 Types of containers. Beer may be removed from a brewery for consumption or sale only in barrels, kegs, bottles, and similar containers, as provided in this part. A container which the appropriate TTB officer determines to be similar to a bottle or can will be treated as a bottle for purposes of this part. A container which the appropriate TTB officer determines to be similar to a barrel or keg and which conforms to one of the sizes prescribed for barrels or kegs in § 25.156 will be treated as such for purposes of this part. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended, 1390, as amended (26 U.S.C. 5412, 5416)) § 25.156 Determination of tax on keg beer. (a) In determining the tax on beer removed in kegs, a barrel is regarded as a quantity of not more than 31 gallons. The authorized fractional parts of a barrel are whole barrels, halves, thirds, quarters, sixths, and eighths, and beer may be removed in kegs rated at those capacities. The following keg sizes are also authorized at the stated barrel equivalents: Size of keg Barrel equivalent 5 gallons 0.16129 30 liter 0.25565 50 liter 0.42608 (b) If any barrel or authorized size keg contains a quantity of beer more than 2 percent in excess of its rated capacity, tax will be determined and paid on the actual quantity of beer (without benefit of any tolerance) contained in the keg. (c) The quantities of keg beer removed subject to tax will be computed to 5 decimal places. The sum of the quantities computed for any one day will be rounded to 2 decimal places and the tax will be calculated and paid on the rounded sum. (26 U.S.C. 5051) [T.D. ATF-345, 58 FR 40357, July 28, 1993] § 25.157 Determination of tax on bottled beer. The quantities of bottled beer removed subject to tax shall be computed to 5 decimal places in accordance with the table and instructions in § 25.158. The sum of the quantities computed for any one day will be rounded to 2 decimal places and the tax will be calculated and paid on the rounded sum. (Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051)) § 25.158 Tax computation for bottled beer. Barrel equivalents for various case sizes are as follows: (a) For U.S. measure bottles. Bottle size (net contents in fluid ounces) Number of bottles per case Barrel equivalent 6 12 0.01815 6 24 0.03629 7 12 0.02117 7 24 0.04234 7 32 0.05645 7 35 0.06174 7 36 0.06351 7 40 0.07056 7 48 0.08468 8 12 0.02419 8 24 0.04839 8 36 0.07258 8 48 0.09677 10 12 0.03024 10 24 0.06048 10 48 0.12097 11 12 0.03327 11 24 0.06653 11.5 24 0.06956 12 12 0.03629 12 15 0.04536 12 20 0.06048 12 24 0.07258 12 30 0.09073 12 48 0.14516 12 50 0.15121 14 12 0.04234 14 24 0.08468 16 (1 pint) 12 0.04839 16 (1 pint) 24 0.09677 22 12 0.06653 22 24 0.13306 24 12 0.07258 24 24 0.14516 30 12 0.09073 32 (1 quart) 12 0.09677 40 12 0.12097 64 1 0.01613 64 4 0.06452 64 6 0.09677 128 (1 gallon) 1 0.03226 288 1 0.07258 (b) For metric measure bottles. Bottle size (metric net contents) Number of bottles per case Barrel equivalent 500 milliliters 24 0.10226 750 milliliters 12 0.07670 1 liter 12 0.10226 2 liters 6 0.10226 5 liters 1 0.04261 (c) For other case sizes. (26 U.S.C. 5412) [T.D. ATF-345, 58 FR 40357, July 28, 1993] § 25.159 Time of tax determination and payment; offsets. (a) Time and payment. (b) Offsets. (c) Offsets not allowed. (1) The brewer was indemnified by insurance or otherwise in respect of the tax; or (2) The brewer does not issue credit to the customer for the tax on the returned beer within 30 days of the return of the beer. If the tax is not timely credited after the offset or deduction is taken, the brewer shall make an increasing adjustment on the next tax return. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended (26 U.S.C. 5054, 5056, 5061)) § 25.160 Tax adjustment for brewers who produce more than 2,000,000 barrels of beer. Each brewer who has paid tax on beer by return, Form 5000.24, at the reduced rate of tax during a calendar year, but whose production (or the production of a controlled group of brewers of which the brewer is a member) exceeds 2,000.000 barrels of beer in that calendar year, is no longer eligible to pay tax on beer at the reduced rate of tax for any beer removed that calendar year for consumption or sale. The brewer shall make a tax adjustment for the payment of additional tax no later than the return period in which production (or the production of a controlled group of brewers of which the brewer is a member) exceeds 2,000,000 barrels of beer. The adjustment will be determined by multiplying the difference between the higher and lower rates of tax applicable to beer by the number of barrels removed by the brewer that year at the reduced rate of tax. The brewer shall make tax adjustments for all breweries where tax was paid at the lower rate that year, and shall include interest payable from the date on which tax was paid at the lower rate. In the case of a controlled group of brewers whose production exceeds 2,000,000 barrels of beer, all member brewers who paid tax at the lower rate shall make tax adjustments as determined in this section. (Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051)) Preparation and Remittance of Tax Returns § 25.163 Method of tax payment. A brewer shall pay the tax on beer by return on TTB F 5000.24, as provided in §§ 25.164, 25.164a, 25.173, and 25.175. In paying the tax, a fractional part of a cent will be disregarded unless it amounts to one-half cent or more, in which case it will be increased to one cent. [T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-365, 60 FR 33669, June 28, 1995; T.D. TTB-89, 76 FR 3511, Jan. 20, 2011; T.D. TTB-94, 76 FR 52862, Aug. 24, 2011] § 25.164 Deferred payment return periods—annual, quarterly, and semimonthly. (a) Requirement for filing. (b) Payment of tax. (c) Return periods Semimonthly return period. (2) Annual return period. (3) Quarterly return period. (4) Additional rules for annual and quarterly return periods. (i) 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; (ii) “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; (iii) A taxpayer with multiple locations must combine the beer tax liability for all locations to determine eligibility for the return procedures; (iv) A taxpayer who has both domestic operations and import transactions must combine the beer tax liability on the domestic operations and the imports to determine eligibility for the return procedures; (v) 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 beer 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); (vi) A new taxpayer is eligible to use the return procedures in 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 beer taxes during that calendar year; and (vii) If a taxpayer becomes ineligible to use a return procedure prescribed in paragraph (c)(2) or (c)(3) of this section because the taxpayer's liability exceeds $1,000 or $50,000, respectively, 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 beer taxes. (d) Time for filing returns and paying tax. (e) Timely filing. (2) When the brewer sends the semimonthly, quarterly, or annual return with or without remittance 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 will be treated as the date of delivery of the return and of the remittance, if enclosed with the return. (Approved by the Office of Management and Budget under control number 1513-0083) (Aug. 16, 1954, ch. 736, 68A Stat. 775, as amended (26 U.S.C. 6302); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061)) [T.D. TTB-146, 82 FR 1129, Jan. 4, 2017] § 25.164a Special September rule for taxes due by semimonthly return. (a) Division of second semimonthly period. General. (2) Taxpayment not by electronic fund transfer. (b) Amount of payment—Safe harbor rule. General. (2) Taxpayment not by EFT. (c) Weekends and holidays. (d) Example: Payment of tax for the month of September. Facts. (2) Payment requirement. [T.D. TTB-89, 76 FR 3512, Jan. 20, 2011, as amended by T.D. TTB-94, 76 FR 52862, Aug. 24, 2011] § 25.165 Payment of tax by electronic fund transfer. (a) Eligible brewers. (2) For the purposes of this section, a taxpayer includes a controlled group of corporations, as defined in 26 U.S.C. 1563, and implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except that the words “at least 80 percent” shall be replaced by the words “more than 50 percent” in each place it appears in subsection (a) of 26 U.S.C. 1563, as well as in the implementing regulations. 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% 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. (3) A taxpayer who is required by this section to make remittances by EFT shall make a separate EFT remittance and file a separate return, Form 5000.24, for each brewery from which beer is removed upon determination of tax. (b) Requirements. (2) For each return filed in accordance with this part, the taxpayer shall direct the taxpayer's bank 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 shall be made to the bank early enough for the transfer to be made to the Treasury Account by no later than the close of business on the last day for filing the return, prescribed in §§ 25.164 or 25.175. The request shall take into account any time limit established by the bank. (3) If a taxpayer was liable for less than five million dollars in beer taxes during the preceding calendar year, combining tax liabilities incurred under this part and parts 26 and 27 of this chapter, the taxpayer may choose either to continue remitting the tax as provided in this section or to remit the tax with the return as prescribed by § 25.164. Upon filing the first return on which the taxpayer chooses to discontinue remitting the tax by EFT and to begin remitting the tax with the tax return, the taxpayer shall notify the appropriate TTB officer by attaching a written notification to Form 5000.24, stating that no taxes are due by EFT because the tax liability during the preceding calendar year was less than five million dollars, and that the remittance will be filed with the tax return. (c) Remittance. (2) Remittances shall 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 shall be considered as received by the Treasury Account when it is paid to a Federal Reserve Bank. (3) When the taxpayer directs the bank to effect an electronic fund transfer message as required by paragraph (b)(2) of this section, any transfer data record furnished to the taxpayer, through normal banking procedures, will serve as the record of payment, and will be retained as part of required records. (d) Failure to make a taxpayment by EFT. (e) Procedure. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-245, 52 FR 532, Jan. 7, 1987; T.D. ATF-251, 52 FR 19314, May 22, 1987; T.D. ATF-262, 52 FR 47560, Dec. 15, 1987; T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. ATF-479, 67 FR 30798, May 8, 2002; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.166 Payment of reduced rate of tax. (a) By return, Form 5000.24. (b) By claim for refund of tax. (Sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19313, May 22, 1987; T.D. TTB-41, 71 FR 5604, Feb. 2, 2006; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.167 Notice of brewer to pay reduced rate of tax. (a) Requirement to file notice. (b) Information to be furnished. (1) A statement that the brewer will not or is not likely to produce more than 2,000,000 barrels of beer in the calendar year for which the notice is filed. (2) A statement that the brewer is not a member of a controlled group of brewers, or if the brewer is a member of a controlled group of brewers, a statement that the controlled group will not or is not likely to produce more than 2,000,000 barrels of beer in the calendar year for which the notice is filed. (3) If the brewer operates more than one brewery, a statement of the locations of all the breweries and a statement of how the 60,000 barrel limitation for the reduced rate of tax will be apportioned among the breweries. If the brewer is a member of a controlled group of brewers, a statement of the names and locations of all other brewers in the group and a statement of how the 60,000 barrels limitation will be apportioned among the brewers in the group. (c) Perjury statement. (Act of Aug. 16, 1954, 68A Stat. 749, as amended (26 U.S.C. 6065); sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended (26 U.S.C. 5415, 5555)) § 25.168 Employer identification number. The employer identification number (defined at 26 CFR 301.7701-12) of the taxpayer who has been assigned the number will be shown on each return on Form 5000.24, filed under this part. Failure of the taxpayer to include the employer identification number on Form 5000.24 may result in imposition of the penalty specified in § 70.113 of this chapter. A brewer shall apply for an employer identification number on IRS Form SS-4 as provided in § 25.169. (Pub. L. 87-397, 75 Stat. 828, as amended (26 U.S.C. 6109, 6676)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-301, 55 FR 47605, Nov. 14, 1990; T.D. TTB-79, 74 FR 37405, July 28, 2009] § 25.169 Application for employer identification number. (a) Form SS-4. https://www.irs.gov (b) Time limit. (c) One EIN only. (26 U.S.C. 6109) [T.D. TTB-79, 74 FR 37405, July 28, 2009, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] Prepayment of Tax § 25.173 Brewer in default. (a) When a remittance in payment of taxes on beer is not paid upon presentment of check or money order tendered, or when the brewer is otherwise in default in payment of tax under § 25.164, beer may not be removed for consumption or sale or taken from the brewery for consumption or sale until the tax has been prepaid as provided in § 25.175. The brewer shall continue to prepay while in default and thereafter until the appropriate TTB officer finds the revenue will not be jeopardized by deferred payment of tax as provided in § 25.164. (b) Any remittance made while the brewer is required to prepay under this section will be in cash or in the form of a certified, cashier's or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States, or under the law of any State, Territory, or possession of the United States, or in the form of a money order as provided in § 70.61 of this chapter (payment by check or money order), or will be made in the form of an electronic fund transfer as provided by §§ 25.164 and 25.165. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19313, May 22, 1987; T.D. ATF-301, 55 FR 47605, Nov. 14, 1990] § 25.174 Bond not sufficient. When a brewer has filed a bond and the penal sum of the brewer's bond is in less than the maximum amount, the brewer shall prepay the tax on any withdrawal which would cause the outstanding liability for tax to exceed the limits of coverage of the bond. Prepayments will be made in accordance with § 25.175. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-146, 82 FR 1130, Jan. 4, 2017] § 25.175 Prepayment of tax. (a) General. (b) Method of prepayment. (2) If a brewer is required by § 25.165 to make payment of tax by electronic fund transfer, the brewer shall prepay the tax before any beer can be removed for consumption or sale by completing the return and by forwarding it, in accordance with the instructions on the form. At the same time, the brewer shall direct his or her bank to make remittance by EFT. (3) For the purpose of complying with this section, the term forwarding (Act of Aug. 16, 1954, 68A Stat. 777, as amended (26 U.S.C. 6311); sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5061)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19313, May 22, 1987; T.D. TTB-146, 82 FR 1130, Jan. 4, 2017] Failure To Pay Tax § 25.177 Evasion of or failure to pay tax; failure to file a tax return. Sections 5671, 5673, 5684, 6651, and 6656 of Title 26 United States Code provide penalties for evasion or failure to pay tax on beer or for failure to file a tax return. (Act of Aug. 16, 1954, 68A Stat. 821, as amended, 826, as amended (26 U.S.C. 6651, 6656); sec. 201, Pub. L. 85-859, 72 Stat. 1408, 1410, as amended (26 U.S.C. 5671, 5673, 5684)) Subpart L—Removals Without Payment of Tax Transfer to Another Brewery of Same Ownership § 25.181 Eligibility. A brewer may remove beer without payment of tax for transfer to any other brewery of the same ownership. These removals include a removal from a brewery owned by one corporation to a brewery owned by another corporation if (a) one corporation owns the controlling interest in the other corporation, or (b) the controlling interest in each corporation is owned by the same person. Beer removed under this section may, while in transit, be reconsigned to another brewery of the same ownership or be returned to the shipping brewery. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414)) § 25.182 Kinds of containers. A brewer may transfer beer without payment of tax from one brewery to another brewery belonging to the same brewer (a) in the brewer's packages or (b) in bulk containers, subject to limitations and conditions as may be imposed by the appropriate TTB officer. The brewer shall mark, brand or label containers as provided by subpart J of this part. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414)) § 25.183 Determination of quantity transferred. The shipping brewer shall determine the quantity of beer shipped at the time of removal from the consignor brewery, and the receiving brewer shall determine the quantity of beer received at the time of receipt at the consignee brewery. The brewer shall equip the consignor and consignee breweries with suitable measuring devices to allow accurate determination of the quantities of beer to be shipped and received in bulk conveyances. (Sec 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414)) § 25.184 Losses in transit. (a) Liability for losses. (b) Losses allowable without claim. (c) Losses requiring claim. (d) Losses requiring immediate report. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended 1389 (26 U.S.C. 5056, 5414)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-146, 82 FR 1130, Jan. 4, 2017] § 25.185 Mingling. Beer transferred without payment of tax from one brewery to another brewery belonging to the same brewer may be mingled with beer of the receiving brewery. The brewer may handle the beer transferred in accordance with the requirements of this part relating to beer produced in the receiving brewery. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414)) § 25.186 Record of beer transferred. (a) Preparation of invoice. (1) Name and address of shipping brewer; (2) Date of shipment; (3) Name and address of receiving brewer; (4) For cases, the number and size of cases and the total barrels; (5) For kegs, the number and size of kegs and the total barrels; (6) For shipments in bulk containers, the type of container, identity of the container and the total barrels. (b) Reconsignment of beer. (c) Disposition of invoice. (d) Preparation of records and report. (Sec. 201. Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5414)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993] Removal of Beer Unfit for Beverage Use § 25.191 General. A brewer may remove sour or damaged beer, or beer which the brewer has deliberately rendered unfit for beverage use, from the brewery without payment of tax for use in manufacturing. Unfit beer may be removed under this section for use as distilling material at alcohol fuel plants qualified under subpart X of part 19 of this chapter. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.192 Removal of sour or damaged beer. (a) Containers. (b) Beer meter. (c) Records and reports. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5033)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993] Removals for Analysis, Research, Development or Testing § 25.195 Removals for analysis. A brewer may remove beer, without payment of tax, to a laboratory for analysis to determine the character or quality of the product. Beer may be removed for analysis in packages or in bulk containers. The brewer shall record beer removed for analysis in daily records under § 25.292 and on the Brewer's Report of Operations, Form 5130.9. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993] § 25.196 Removals for research, development or testing. (a) A brewer may remove beer, without payment of tax, for use in research, development, or testing (other than consumer testing or other market analysis) of processes, systems, materials, or equipment relating to beer or brewery operations. Beer may be removed for research, development or testing in packages or in bulk containers. (b) The brewer shall mark each barrel, keg, case, or shipping container with the name and address of the brewer and of the consignee, the identity of the product, and the quantity of the product. If necessary to protect the revenue, the appropriate TTB officer may require a brewer to mark each container with the words “Not for Consumption or Sale.” If beer is removed in a bulk conveyance, the brewer shall place the marks on the route board of the conveyance. (c) The brewer shall record beer removed for research, development, or testing in daily records under § 25.292 and on the Brewer's Report of Operations, Form 5130.9. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993] Removal of Beer to a Contiguous Distilled Spirits Plant § 25.201 Removal by pipeline. A brewer may remove beer from the brewery, without payment of tax, by pipeline to the bonded premises of a distilled spirits plant which is authorized to produce distilled spirits and which is located contiguous to the brewery. (Sec. 201, Pub. L. 85-859, 72 Stat. 1365, as amended, 1389, as amended (26 U.S.C. 5222, 5412)) Exportation § 25.203 Exportation without payment of tax. A brewer may remove beer without payment of tax (a) for exportation, (b) for use as supplies on vessels and aircraft, or (c) for transfer to and deposit in foreign-trade zones for exportation or for storage pending exportation, in accordance with part 28 of this chapter. Beer may be removed from a brewery in bottles, kegs, or in bulk containers. (Sec. 309, Tariff Act of 1930, 46 Stat. 690, as amended (19 U.S.C. 1309); sec. 3, Act of June 18, 1934, 48 Stat. 999, as amended (19 U.S.C. 81c); sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, T.D. TTB-8, 69 FR 3830, Jan. 27, 2004] Beer For Personal or Family Use § 25.205 Production. (a) Any adult may produce beer, without payment of tax, for personal or family use and not for sale. An adult is any individual who is 18 years of age or older. If the locality in which the household is located requires a greater minimum age for the sale of beer to individuals, the adult shall be that age before commencing the production of beer. This exemption does not authorize the production of beer for use contrary to State or local law. (b) The production of beer per household, without payment of tax, for personal or family use may not exceed: (1) 200 gallons per calendar year if there are two or more adults residing in the household, or (2) 100 gallons per calendar year if there is only one adult residing in the household. (c) Partnerships except as provided in § 25.207, corporations or associations may not produce beer, without payment of tax, for personal or family use. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053)) § 25.206 Removal of beer. Beer made under § 25.205 may be removed from the premises where made for personal or family use including use at organized affairs, exhibitions or competitions such as homemaker's contests, tastings or judging. Beer removed under this section may not be sold or offered for sale. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053)) § 25.207 Removal from brewery for personal or family use. Any adult, as defined in § 25.205, who operates a brewery under this part as an individual owner or in partnership with others, may remove beer from the brewery without payment of tax for personal or family use. The amount of beer removed for each household, without payment of tax, per calendar year may not exceed 100 gallons if there is one adult residing in the household or 200 gallons if there are two or more adults residing in the household. Beer removed in excess of the above limitations will be reported as a taxable removal. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended (26 U.S.C. 5053)) Subpart M—Beer Returned to Brewery § 25.211 Beer returned to brewery. (a) General. (b) Disposition of returned beer. (c) Records. (1) Date; (2) Quantity of beer returned; (3) If the title to the beer has passed, the name and address of the person returning the beer; and (4) Name and address of the brewery from which the beer was removed, if different from the brewery to which returned. (d) Supporting records. (Sec. 201, Pub. L. 85-859, 72 Stat. 1334, as amended, 1335, as amended, 1390, as amended (26 U.S.C. 5054, 5056, 5415)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.212 Beer returned to brewery from which removed. If beer on which the tax has been determined or paid is returned to the brewery from which removed, the brewer shall take the quantity of beer as an offset or deduction against the quantity of beer removed for consumption or sale from the brewery on that business day, as provided in § 25.159 (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1390, as amended (26 U.S.C. 5056, 5415)) § 25.213 Beer returned to brewery other than that from which removed. (a) Refund or adjustment of tax. (b) Notice. (1) The number and sizes of kegs and the actual quantity of beer, in barrels; or the number of cases and the number and sizes of bottles within the cases and the actual quantity of beer, in barrels; (2) The name and address of the brewery from which the beer was removed; (3) A statement that the tax on the beer has been fully paid or determined and the rate at which the tax on the beer was paid or determined; and (4) If the title to the beer has passed, the name and address of the person returning the beer. (c) Return of beer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001] Subpart N—Voluntary Destruction § 25.221 Voluntary destruction of beer. (a) On brewery premises. (2) A brewer operating a tavern on brewery premises under § 25.25 may destroy taxpaid or tax-determined beer stored on brewery premises, in accordance with the requirements of § 25.225. (b) Destruction without return to brewery. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. ATF-268, 53 FR 8629, Mar. 16, 1988, as amended by T.D. 372, 61 FR 20724, May 8, 1996; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 25.222 Notice of brewer. (a) Beer to be destroyed. (b) Execution of notice. (c) Information to be furnished. (1) The number and sizes of kegs and the actual quantity of beer, in barrels; or the number of cases and the number and sizes of bottles within the cases, and the actual quantity of beer in barrels. When kegs containing less than the actual contents are to be destroyed, the brewer shall determine the actual content of beer by weight or by other accurate means. (2) The date on which the beer was received for destruction. (3) A statement that the tax on the beer has been fully paid or determined and the rate at which the tax on the beer was paid or determined. (4) If the title of the beer has passed, the name and address of the person returning the beer. (5) The location at which the brewer desires to destroy the beer and the reason for not returning the beer to the brewery. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001] § 25.223 Destruction of beer off brewery premises. (a) Destruction without supervision. (b) Destruction with supervision. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5479, Jan. 19, 2001; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 25.224 Refund or adjustment of tax. (a) Claim for refund or relief of tax. (b) Adjustments to the excise tax return. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) § 25.225 Destruction of taxpaid beer which was never removed from brewery premises. (a) General. (b) Recordkeeping. (2) When required by the appropriate TTB officer, the brewer shall notify the appropriate TTB officer prior to the intended destruction, in accordance with procedures established by the appropriate TTB officer. (c) Refund of tax. [T.D. ATF-268, 53 FR 8629, Mar. 16, 1988, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] Subpart O—Beer Purchased From Another Brewer § 25.231 Finished beer. (a) A brewer may obtain beer in barrels and kegs, finished and ready for sale from another brewer. The purchasing brewer may furnish the producing brewer barrels and kegs marked with the purchasing brewer's name and location. The producing brewer shall pay the tax as provided in subpart K of this part. (b) A brewer may not purchase taxpaid or tax determined beer from another brewer in bottles or cans which bear the name and address of the purchasing brewer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5413)) § 25.232 Basic permit. A brewer who engages in the business of purchasing beer for resale is required to possess a wholesaler's or importer's basic permit under the provisions of section 3(c) of the Federal Alcohol Administration Act and part 1 of this chapter. [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] Subpart P—Cereal Beverage § 25.241 Production. Brewers may produce cereal beverage and remove it without payment of tax from the brewery. The method of production shall insure that the alcohol content of the cereal beverage will not increase while in the original container after removal from the brewery. The brewer shall keep cereal beverage separate from beer, and shall measure the quantity of cereal beverage transferred for packaging in accordance with § 25.41. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411)) § 25.242 Markings. (a) Designation. (b) Barrels and kegs. (c) Bottles. (d) Cases. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] Subpart Q—Removal of Brewer's Yeast and Other Articles § 25.251 Authorized removals. (a) Brewer's yeast. (b) Containers. (c) Pipeline. (d) Other articles. (e) Methods of Analysis of the American Society of Brewing Chemists, Seventh Edition (1976). https://www.archives.gov/federal-register/cfr/ibr-locations.html. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389, as amended (26 U.S.C. 5411)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended at 69 FR 18803, Apr. 9, 2004; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.252 Records. (a) Production. (b) Removals. (c) Inspection. (Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415)) Subpart R—Beer Concentrate § 25.261 General. (a) Authorized processes. (1) Produce concentrate from beer, (2) Reconstitute beer from concentrate, (3) Transfer concentrate from one brewery to another brewery of the same ownership, and (4) Remove concentrate without payment of tax for exportation, or for transfer to and deposit in a foreign-trade zone for exportation or for storage pending exportation in accordance with part 28 of this chapter. (b) Brewery treatment of concentrate. (Sec. 201, Pub. L. 85-859, 72 Stat. 1388, as amended (26 U.S.C. 5401)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-8, 69 FR 3830, Jan. 27, 2004] § 25.262 Restrictions and conditions on processes of concentration and reconstitution. (a) Conditions on concentration. (b) Conditions on reconstitution (2) A brewer may not employ any process of concentration or reconstitution unless the beer upon reconstitution will, without the addition of any substance other than carbon dioxide and water, possess the taste, aroma, color, and other characteristics of beer which has not been concentrated. (3) The process of reconstitution shall provide for the addition of sufficient water to restore the concentrate to a volume not less than, and an alcohol content not greater than, that of the beer used to produce the concentrate. (Sec. 201, Pub. L. 85-859, 72 Stat. 1315, as amended, 1388, as amended (26 U.S.C. 5002, 5401)) § 25.263 Production of concentrate and reconstitution of beer. (a) Operations at brewery. (b) Marking of containers. (c) Mingling with beer. (d) Additional labeling. (e) Records and reports. § 25.264 Transfer between breweries. (a) Authorized transfers. (b) Record of concentrate transferred. (1) Name and address of shipping brewer; (2) Date of shipment; (3) Name and address of receiving brewer; (4) The number of containers transferred, the balling, percentage of alcohol by volume, and the total barrels of concentrate; and (5) A description of the beer from which the concentrate was produced including the number of barrels, balling, and percentage of alcohol by volume. (c) Disposition of invoice. Subpart S—Pilot Brewing Plants § 25.271 General. (a) Establishment. (b) Authorized removals. (c) Transfers between brewery and pilot brewing plant. (d) Other regulations applicable. (Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417)) § 25.272 Application. (a) Form of application. (1) Name and address of the applicant; (2) Description of the premises and equipment to be used in the operations; (3) Nature, purpose, and extent of the operations; and (4) A statement that the applicant agrees to comply with all provisions of this part applicable to the operations to be conducted. (b) Additional information. (c) Authorization of operations. (d) Withdrawal of authorization. (e) Commencement of operations. (Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417)) § 25.273 Action on application. If the appropriate TTB officer approves the application for a pilot brewing plant, he or she will note approval on the application and forward a copy to the applicant. The applicant must file the copy of the approved application at the premises, available for inspection by an appropriate TTB officer. [T.D. ATF-437, 66 FR 5480, Jan. 19, 2001] § 25.274 Bond. (a) Requirement. (b) Penal sum. (c) Conditions of bonds. (d) Bond exemption. (Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D TTB-146, 82 FR 1130, Jan. 4, 2017] § 25.275 [Reserved] § 25.276 Operations and records. (a) Commencement of operations. (b) Reports. (c) Records. (Sec. 4, Pub. L. 91-673, 84 Stat. 2057, as amended (26 U.S.C. 5417)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40357, July 28, 1993; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. TTB-146, 82 FR 1130, Jan. 4, 2017] § 25.277 Discontinuance of operations. When operations of a pilot brewing plant are to be discontinued, the operator shall notify the appropriate TTB officer stating the purpose of the notice and giving the date of discontinuance. When operations have been completed and all beer at the premises has been disposed of and accounted for, the appropriate TTB officer will note approval on the notice and return a copy to the operator. Subpart T—Refund or Adjustment of Tax or Relief From Liability § 25.281 General. (a) Reasons for refund or adjustment of tax or relief from liability. (1) Beer returned to any brewery of the brewer subject to the conditions outlined in subpart M of this part; (2) Beer voluntarily destroyed by the brewer subject to the conditions outlined in subpart N of this part; (3) Beer lost by fire, theft, casualty, or act of God subject to the conditions outlined in § 25.282. (b) Refund of beer tax excessively paid. (c) Rate of tax. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) § 25.282 Beer lost by fire, theft, casualty, or act of God. (a) General. (b) Unmerchantable beer. (c) Beer lost or destroyed. (d) Beer lost by theft. (e) Notification of appropriate TTB officer. (2) A brewer possessing unmerchantable beer and who desires to adjust the tax on the excise tax return or to file a claim for refund or for relief from liability must notify in writing the appropriate TTB officer, of the circumstances by which the beer became unmerchantable, and must state why the beer cannot be salvaged and returned to the market for consumption or sale. (f) Additional information. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5480, Jan. 19, 2001] § 25.283 Claims for refund of tax. (a) Beer returned to brewery or voluntarily destroyed at a location other than a brewery. (1) The name and address of the brewer filing the claim, the address of the brewery from which the beer was removed, and the address of the brewery to which the beer was returned, as applicable; (2) The quantity of beer covered by the claim and the rate(s) of tax at which the beer was tax paid or determined; (3) The amount of tax for which the claim is filed; (4) The reason for return or voluntary destruction of the beer and the related facts; (5) Whether the brewer is indemnified by insurance or otherwise in respect of the tax, and if so, the nature of the indemnification; (6) The claimant's reasons for believing the claim should be allowed; (7) The date the beer was returned to the brewery, if applicable; (8) The name of the person from whom the beer was received; (9) A statement that the tax has been fully paid or determined; and (10) A reference to the notice (if required) filed under §§ 25.213 or 25.222. (b) Beer lost, destroyed, or rendered unmerchantable. (1) Information required by paragraphs (a)(1), (2), (3), (5), and (6) of this section; (2) A statement of the circumstances surrounding the loss; (3) When applicable, the reason the beer rendered unmerchantable cannot be returned to the market for consumption or sale; (4) Date of the loss, and if lost in transit, the name of the carrier; (5) A reference incorporating the notice required by § 25.282; and (6) When possible, affidavits of persons having knowledge of the loss, unless the affidavits are contained in the notice given under § 25.282. (c) Voluntary destruction of taxpaid beer which was never removed from brewery premises. (1) Information required by paragraphs (a)(1), (a)(2), (a)(3), (a)(5), and (a)(9) of this section; and (2) The information contained in the record required by § 25.225(b). (d) Additional evidence. (e) Filing of claim. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19314, May 22, 1987; T.D. ATF-268, 53 FR 8629, Mar. 16, 1988; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001] § 25.284 Adjustment of tax. (a) Adjustment of tax in lieu of refund. (b) Beer returned to brewery other than from which removed. (c) Beer voluntarily destroyed. (d) Beer lost, destroyed or rendered unmerchantable. (e) Condition of adjustments. (2) Adjustment of the tax paid will be made without interest. (3) An adjustment may not be taken if the brewer was indemnified by insurance or otherwise in respect of the tax. (f) Records. (1) For beer returned to the brewery or voluntarily destroyed, the records required by §§ 25.283(a)(1), (2), (4), (5), (7), (8), and (10). (2) For beer lost, destroyed, or rendered unmerchantable, the records required by § 25.283 (a)(1), (2), (5), (b) (2), (3), (4), (5), and (6). (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended (26 U.S.C. 5056)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. ATF-437a, 66 FR 17809, Apr. 4, 2001] § 25.285 Refund of beer tax excessively paid. (a) Eligibility. (b) Calculation of refund. (c) Information to be furnished. (1) Name and address of the brewer. (2) Quantity of beer covered by the claim as determined in paragraph (b) of this section. (3) Amount of tax paid in excess. (4) A statement of the exact number of barrels of beer which the brewer produced during the calendar year. (5) A statement that the brewer is not a member of a controlled group of brewers (as defined in § 25.152(b)(1) or, if the brewer is a member of a controlled group of brewers, a list of the names and addresses of all the members of the controlled group of brewers and a statement of the combined number of barrels of beer produced by all members of the controlled group in the calendar year. (6) If the brewer is a member of a controlled group of brewers, a statement of how the 60,000 barrel limitation for the reduced rate of tax is to be apportioned among the members of the controlled group of brewers. (Act of August 16, 1954, 68A Stat. 791, as amended (26 U.S.C. 6402); sec. 201, Pub. L. 85-859, 72 Stat. 1333, as amended (26 U.S.C. 5051)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1987, as amended by T.D. ATF-251, 52 FR 19314, May 22, 1987; T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.286 Claims for remission of tax on beer lost in transit between breweries. (a) Filing of claim. (b) Information to be shown. (1) The date of the shipment; (2) The quantity of beer lost (number and size of packages and their equivalent in barrels), and the rate(s) of tax at which the beer would have been removed for consumption or sale; (3) The percent of loss; (4) The specific cause of the loss; (5) The nature of the loss (leakage, breakage, casualty, etc.); (6) Information as to whether the claimant has been indemnified by insurance or otherwise in respect to the tax, or has any claim for indemnification; and (7) For losses due to casualty or accident, statements from the carrier or other persons having personal knowledge of the loss, if available. (27 U.S.C. 5056, 5414) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. ATF-345, 58 FR 40357, July 28, 1993; T.D. TTB-196, 89 FR 87943, Nov. 6, 2024] Subpart U—Records and Reports § 25.291 Records. (a) General. (i) All individual transaction forms, records, and summaries specifically required by this part; (ii) All supplemental, auxiliary, and source data used in the compilation of required forms, records, and summaries, and for preparation of reports, returns, and claims; and (iii) Copies of notices, reports, returns, and approved applications and other documents relating to operations and transactions. (2) The records required by this part may consist of the brewer's commercial documents, rather than records prepared expressly to meet the requirements of this part, if those documents contain all the details required by this part, are consistent with the general requirements of clarity and accuracy, and do not result in difficulty in their examination. (b) Entries. (2) When the brewer prepares transaction or business records concurrently with the individual operation or transaction and these records contain all the required information with respect to the operation or transaction, entries in daily records may be made not later than the close of business the third business day succeeding the day on which the operation or transaction occurs. (c) Content. (2) Daily records will accurately and clearly reflect the details of each operation or transaction and, as applicable, contain all data necessary to enable— (i) Brewers to prepare summaries, reports, and returns required by this part, and (ii) Appropriate TTB officers to verify removals of beer and cereal beverages, to verify claims, and to ascertain if there has been compliance with law and regulations. (d) Format. (2) When a form is not prescribed, the records required by this subpart will be those commercial records used by the brewer in the accounting system and will bear all required details. (3) The brewer shall maintain daily records required by this part so they clearly and accurately reflect all mandatory information. When the format or arrangement of the daily records is such that the information is not clearly or accurately shown, the appropriate TTB officer may require a format or arrangement which will clearly and accurately show the information. (Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D TTB-196, 89 FR 87943, Nov. 6, 2024] § 25.292 Daily records of operations. (a) Daily records. (1) Each kind of material received and used in the production of beer and cereal beverage (including the balling and the quantity of each type of material used in the production of wort or concentrated wort). (2) Beer and cereal beverage produced (including water added after production is determined). (3) Beer and cereal beverage transferred for and returned from bottling. (4) Beer and cereal beverage transferred for and returned from racking. (5) Beer and cereal beverage bottled. (6) Beer and cereal beverage racked. (7) Cereal beverage removed from the brewery. (8) Beer removed for consumption or sale. For each removal, the record will show the date of removal, the person to whom the beer was shipped or delivered (not required for sales in quantities of one-half barrel or less for delivery at the brewery), and the quantities of beer removed in kegs and in bottles. (9) Beer removed without payment of tax. For each removal, the record will show the date of removal, the person to whom the beer was shipped or delivered, and the quantities of beer removed in kegs, bottles, tanks, tank cars, tank trucks, tank ships, barges or deep tanks of vessels. (10) Packaged beer used for laboratory samples at the brewery. (11) Beer consumed at the brewery. (12) Beer returned to the brewery from which removed. (13) Beer returned to the brewery after removal from another brewery owned by the brewer. (14) Beer reconditioned, used as material, or destroyed. (15) Beer received from other breweries or received from pilot brewing plants. (16) Beer and cereal beverage lost due to breakage, theft, casualty, or other unusual cause. (17) Brewing materials sold or transferred to pilot brewing plants (including the name and address of the person to whom shipped or delivered) and brewing materials used in the manufacture of wort, wort concentrate, malt syrup, and malt extract for sale or removal. (18) Record of tests of measuring devices. (19) Beer purchased from other brewers in the purchasing brewer's barrels and kegs and such beer sold to other brewers. (b) Daily summary records. (1) Beer and cereal beverage bottled; (2) Beer and cereal beverage racked; (3) Beer removed for consumption or sale; (4) Beer returned to the brewery from which removed; (5) Beer returned to the brewery after removal from another brewery owned by the brewer; and (6) Brewing materials, beer and cereal beverage in process, and finished beer and cereal beverage on hand. (Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended (26 U.S.C. 5415, 5555)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986; 51 FR 9190, Mar. 18, 1986; T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 25.293 Record of ballings and alcohol content. The brewer shall maintain a record of the ballings of the wort produced, and of the ballings and the alcohol content of beer and cereal beverage transferred for bottling and racking, between breweries in bulk conveyances, and to pilot brewing plants. Records showing ballings and alcohol content need not be consolidated and averaged daily unless the brewer so desires. (Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415)) § 25.294 Inventories. (a) The brewer shall take a physical inventory of beer and cereal beverage at least once each calendar month. The brewer may take this inventory within 7 days of the close of the calendar month for which made. (b) The brewer shall make a record of inventories of beer or cereal beverage which will show the following: (1) Date taken; (2) Quantity of beer and cereal beverage on hand; (3) Losses, gains, and shortages; and (4) Signature, under penalties of perjury of the brewer or person taking this inventory. (c) The brewer shall retain inventory records and make them available for inspection by an appropriate TTB officer. (Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415)) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. TTB-91, 76 FR 5478, Feb. 1, 2011] § 25.295 Record of unsalable beer. A brewer having unsalable beer in packages or tanks in the brewery may destroy, recondition, or use the beer as material. The brewer shall report the quantity of the beer destroyed, reconditioned, or used as materials, in daily records and on Form 5130.9. If the unsalable beer consists of rejects from the packaging operations, the beer may be destroyed without being included in the packaging production records, and, when so destroyed, will be so reported in the brewer's daily records and on Form 5130.9. When reject bottled beer is to be consumed at the brewery or sold to brewery employees, or is cased or otherwise accumulated pending other disposition, the quantity will be included in the packaging production and be so reported in the brewer's daily records and on Form 5130.9. (Sec. 201, Pub. L. 85-859, 72 Stat. 1389 as amended, 1390, as amended, 1395 as amended (26 U.S.C. 5411, 5415, 5555)) § 25.296 Record of beer concentrate. (a) Daily records. (1) Beer entered into the concentration process; (2) Concentrate produced; (3) Concentrate transferred to other breweries; (4) Concentrate exported; (5) Concentrate received; (6) Concentrate used in reconstituting beer; and (7) Beer reconstituted. (b) Summary report of operations. (1) Concentrate on hand beginning of the reporting period; (2) Concentrate on hand end of the reporting period; (3) Concentrate produced; (4) Concentrate received; and (5) Specific disposition of concentrate such as “used in reconstitution,” “removed for export,” “removed to foreign-trade zone,” or “transferred to other breweries.” (26 U.S.C. 5415) [T.D. ATF-224, 51 FR 7673, Mar. 5, 1986, as amended by T.D. ATF-345, 58 FR 40358, July 28, 1993] § 25.297 Report of Operations, Form 5130.9 or Form 5130.26. (a) Monthly report of operations. (b) Quarterly report of operations. (2) If a brewer determines that it will be liable for more than $50,000 in taxes with respect to beer imposed by 26 U.S.C. 5051 and 7652 during the current calendar year, the brewer shall file Form 5130.9 monthly beginning with the first month during which the tax liability exceeds $50,000, and shall concurrently file Form 5130.9 for any previous month of that quarter. When filing the first monthly report, a brewer shall state on the form that it will be liable for more than $50,000 in taxes for the current calendar year and will henceforth submit monthly filings. The brewer shall then continue to file Form 5130.9 for each subsequent month of that calendar year. (3) The appropriate TTB officer may at any time require a brewer who is filing Form 5130.9 or Form 5130.26 quarterly to file such report monthly on Form 5130.9 if there is a jeopardy to the revenue. (c) Retention. (26 U.S.C. 5415, 5555) [T.D. ATF-345, 58 FR 40358, July 28, 1993, as amended by T.D. ATF-437, 66 FR 5480, Jan. 19, 2001; T.D. TTB-123, 79 FR 58679, Sept. 30, 2014] § 25.298 Excise tax return, Form 5000.24. All entries on the excise tax return, Form 5000.24, will be fully supported by accurate and complete records. The brewer shall file a copy of Form 5000.24 as a part of the records at the brewery. (Sec. 201, Pub. L. 85-859, 72 Stat. 1335, as amended, 1390, as amended, 1395, as amended (26 U.S.C. 5061, 5415, 5555)) § 25.299 Execution under penalties of perjury. When a return, form, or other document is required by this part or in the instruction on or with the return, form, or other document to be executed under the penalties of perjury, as defined in § 25.11, it will be so executed and will be signed by the brewer or other duly authorized person. (Act of August 16, 1954, 68A Stat. 749, as amended (26 U.S.C. 6065)) § 25.300 Retention and preservation of records. (a) Place of maintenance. (b) Reproduction of original records. (c) Retention of records. (d) Data Processing. (2) Data which has been accumulated on cards, tapes, discs, or other accepted record 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. (Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended (26 U.S.C. 5415)) § 25.301 Photographic copies of records. (a) General. (b) Copies of records treated as original records. (Sec. 201, Pub. L. 85-859, 72 Stat. 1390, as amended, 1395, as amended (26 U.S.C. 5415, 5555))