for new SDA Formulas Nos. 40-B and 40-C are added in numerical order. As amended, the table in § 212.115 reads as follows: § 212.115 WEIGHTS AND SPECIFIC GRAVITIES OF SPECIALLY DENATURED ALCOHOL. This Treasury decision shall become effective on the first day of the first month which begins not less than 90 days after the date of its publication in the Federal Register. (This Treasury decision is issued under the authority contained in section 7805 of the Internal Revenue Code (68A Stat. 917; 26 U.S.C. 7805).) Approved October 21, 1968. STANLEY S. SURREY, SHELDON S. COHEN, Commissioner of Internal Revenue. Assistant Secretary of the Treasury. (Filed by the Office of the Federal Register on October 23, 1968, 8:49 a.m., and published in the issue of the Federal Register for October 24, 1968, 33 F.R. 15708) 26 CFR 212.65: General. Use of zinc chloride and hydrochloric acid as substitute denaturants. See Rev. Rul. 68-501, page 620. SUBCHAPTER D.-INDUSTRIAL USE OF DISTILLED SPIRITS SECTION 5273.-SALE, USE, AND RECOVERY OF 26 CFR 211.101: General. Procedures for users of specially denatured alcohol Formulas Nos. 40, 40-A, 40-B, and 40-C to follow to continue the use of approved Forms 1479-A and 1485 and for the submission of new Forms 1479-A and 1485, for approval. See Rev. Proc. 68-43, page 952. 334-533-69-42 26 CFR 211.142: Marks and brands on con tainers of specially denatured spirits. Procedures for the marking of packages of SDA Formulas Nos. 40 by dealers in specially denatured spirits. See Rev. Proc. 68–43, page 952. 26 CFR 211.271: Reports of users. Procedures for users of specially denatured alcohol Formulas Nos. 40, 40-A, 40-B, and 40-C to follow in preparing Forms 1482. See Rev. Proc. 68-43, page 952. SUBCHAPTER F.-BONDED AND TAXPAID WINE PREMISES PART II.--OPERATIONS SECTION 5362.-REMOVALS OF WINE FROM BONDED WINE CELLARS 26 CFR 240.670: General. Listing of foreign countries for which wines may be withdrawn free of tax or with benefit of drawback for use as supplies on aircraft. See Rev. Proc. 68-25, page 909. TITLE 26-INTERNAL REVENUE CHAPTER I, SUBCHAPTER E, PART 245 BEER Miscellaneous amendments DEPARTMENT OF THE TREASURY, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D.C.20224. To Officers and Employees of the Internal Revenue Service and Others Concerned: On June 7, 1968, notice of proposed rule making to amend 26 CFR Part 245, with respect to miscellaneous amendments relating to beer, was published in the Federal Register (33 F.R. 8453). In accordance with the notice, interested persons were afforded an opportunity to 1 The publication of this Treasury Decision in 33 F.R. 10510, dated July 24, 1968, contains (1) instructions for modifying the notice of proposed rulemaking published in 33 F.R. 8453, dated June 7, 1968, and (2) the full context of the regulations with such modifications. As here published, the Treasury Decision reflects the full context of such regulations with modifications. The individual instructions have been omitted. submit written comments or suggestions pertaining thereto. After consideration of all relevant matter presented regarding the proposed amendments, the following regulations are hereby adopted. In order to (1) provide for the establishment of experimental breweries, (2) provide for storage of untaxpaid bottled beer in any suitable location in the brewery, (3) provide emergency procedures for use when meters become defective, (4) make various changes respecting qualifying documents, including bonds, Forms 27-C, and plats, (5) specify the number of copies of various applications and statements required to be filed, (6) delete requirements for filing an additional Form 11 for a trade name change, (7) make various changes in requirements relating to beer removed from the market, beer tranferred, beer lost or destroyed, unsalable beer, claims, and records, (8) clarify provisions for segregation of empty containers and other supplies, (9) provide for the showing of the place of production on barrels, kegs, and bottles by a code system in certain instances, (10) insert the barrel equivalents of several additional case sizes, (11) provide an extension of time for taking the required monthly inventories, (12) delete provisions specifically providing for recasing and relabeling taxpaid beer, and (13) delete certain internal management instructions, the regulations in 26 CFR Part 245 are amended as follows: PARAGRAPH 1. Section 245.12 is amended to prescribe the number of copies of the application a brewer must submit when he desires to use his brewery for purposes other than those provided for in regulations. As amended, § 245.12 reads as follows: $245.12 USE OF BREWERY. The brewery shall be used exclusively, except as provided herein, for the purposes of producing and packaging or bottling beer, cereal beverages, soft drinks and other nonalcoholic beverages, vitamins, ice, malt, malt sirup, and other byproducts; of drying spent grain from the brewery; of recovering carbon dioxide and yeast; and of storing bottles, packages, and supplies necessary or incidental to all such operations. All bottling shall be conducted in the brewery bottling house. If the brewer desires to use the brewery for other purposes, not involving the production of alcoholic beverages, which (a) require the use of by-products or wastage from the production of beer, or utilize buildings, rooms, areas, or equipment not fully employed in the production or bottling of beer, (b) are reasonably necessary to realize the maximum benefit from the premises and equipment and to reduce the overhead of the plant, (c) are in the public interest because of emergency conditions, or (d) involve experiments or research projects related to equipment, materials, processes, products, by-products, or wastage of the brewery, he may submit an application, in triplicate, so to do to the Director, Alcohol and Tobacco Tax Division, through the assistant regional commissioner. The Director, Alcohol and Tobacco Tax Division, will approve such application where he finds that such use will not jeopardize the revenue, will not impede the effective administration of this part, and is not contrary to the specific provisions of law. (72 Stat. 1389; 26 U.S.C. 5411) PAR. 2. Section 245.13 is amended to make it clear that untaxpaid bottled beer may be stored in any suitable location in the brewery. As amended, §245.13 reads as follows: 245.13 STORAGE OF BEER. (a) TAXPAID BEER. Beer on which the tax has been paid or determined shall not be stored in the brewery except as provided in Subpart S. (b) UNTAXPAID BEER. Bottled beer on which tax has not been paid or determined may be stored in the bottling house or in any other suitable location in the brewery. (72 Stat. 1334, 1335, 1389; 26 U.S.C. 5054, 5056, 5411) PAR. 3. Section 245.17 is amended to clarify requirements regarding the segregation of empty containers and other supplies. As amended, § 245.17 reads as follows: § 245.17 EMPTY CONTAINER STORAGE. Empty barrels, kegs, bottles, other containers, or other supplies stored in the brewery must be segregated from filled containers. PAR. 4. Section 245.34 is amended to provide procedures for use when beer meters become defective and to remove internal management instructions. As amended, § 245.34 reads as follows: § 245.34 SERVICING OF METERS. (a) TESTS, REPAIRS, AND ADJUSTMENTS.-When necessary in the opinion of the assistant regional commissioner, he will assign an inspector to test a meter or to supervise its removal and reinstallation in connection with cleaning or repair. When a repaired or replacement meter is installed, the inspector will test it for accuracy and proper functioning. Whenever a meter is tested, a copy of the meter test report will be given to the brewer. Except as provided in paragraph (b) of this section, the use of any meter must be discontinued whenever it is not functioning properly or recording accurately. (b) EMERGENCY PROCEDURES.-When a meter becomes inoperative or inaccurate the brewer shall make every reasonable effort to contact the assistant regional commissioner or to otherwise obtain the services of an inspector. On receipt of advice from a brewer that a meter has become inoperative or inaccurate, the assistant regional commissioner may, if he finds it is impractical to have an inspector to promptly supervise the repair or replacement of the meter, and if in his opinion the revenue will not be jeopardized, permit the brewer to temporarily continue operations even though the quantity of beer transferred is not accurately metered. If the brewer is unable to contact the assistant regional commissioner, or to otherwise obtain the services of an inspector, he may temporarily continue operations even though the quantity of beer transferred is not accurately metered When a brewer continues bottling or racking operations as provided in this paragraph, he shall determine and record the quantity of beer transferred other than through a properly operating meter; shall terminate the emergency operations as soon as is practical; and, where operations are continued without prior approval, shall notify the assistant regional commissioner of the action and the circumstances thereof as soon thereafter as possible in which case the assistant regional commissioner may either authorize the continuation of emergency operations or require that operations be ceased until the meter has been repaired or replaced. (72 Stat. 1395; 26 U.S.C. 5552) PAR. 5. Paragraph (k) of § 245.41 is amended to provide that encumbrances on brewery equipment held by the manufacturer of the equipment or his franchised distributor need not be reported in the brewer's notice. As amended, § 245.41 (k) reads as follows: (k) The name and address of the owner of the fee and of any mortgagee or other encumbrancer of the land, buildings, or equipment comprising the brewery (except when an encumbrance on equipment is held by, or the equipment is leased from, the manufacturer thereof or his representative or franchised distributor). PAR. 6. Section 245.42 is amended to remove the provisions as to the number of required copies of Form 1534 to be filed, and to reduce the number of copies of the document which authorizes a person to sign or act on behalf of a brewer. As amended, § 245.42 reads as follows: $245.42 POWERS OF ATTORNEY. The brewer shall execute and file with the assistant regional commissioner a Form 1534, in accordance with the instructions on the form, for every person who is authorized to sign or act on behalf of the brewer, except that a certified true copy, in duplicate, of a resolution of the board of directors authorizing a person to sign or act on behalf of the brewer will be accepted as evidence of the authority of such person to so sign or act. PAR. 7. Section 245.44 is amended to provide that certain documents, if they reflect current data, may be incorporated as a part of new Forms 27-C that are filed at 4-year intervals. As amended, § 245.44 reads as follows: $245.44 SUPPLEMENTAL AND SUPERSEDING NOTICES. The brewer shall file an amended or supplemental Form 27-C, as provided in Subpart L of this part, covering changes in items of information recorded on the active Forms 27-C on file. Such amended or supplemental notices may be in skeleton form. The brewer shall file a new and complete notice, superseding those previously filed, once every four years, which new notice will become effective on the date of renewal of the brewer's bond as provided in § 245.45: Provided, That where the information and documents required by § 245.41 (f), (g), (h), (i), (j), (1), and (m) are on file as an attachment to a previously filed and approved Form 27-C and reflect current data, such information and documents may be incorporated by reference in, and be made a part of, the new and complete notice. Where a brewer files a new bond before expiration of the usual 4-year period, as provided in § 245.49, the assistant regional commissioner may require the filing of a new and complete notice, which supersedes those previously filed and which may incorporate information and documents contained in a previously filed and approved Form 27-C and reflecting current data as provided in this section. The new notice will become effective on the effective date of the new bond, or the assistant regional commissioner may postpone the filing of such new notice until such time as the new bond is renewed or superseded. PAR. 8. Section 245.58 is amended to clarify the time when the surety is relieved from future liability under a bond which is superseded by a new bond. As amended, § 245.58 reads as follows: $245.58 TERMINATION OF SURETY'S LIABILITY UNDER BOND. The liability of a surety on any bond required by this part shall be terminated only as to liability arising on and after the effective date of a superseding bond; or the date of approval of the discontinuance of the business of the brewer giving the bond; or pursuant to the giving of notice by the surety as provided in § 245.59. PAR. 9. Section 245.68 is amended to remove the requirement that the assistant regional commissioner and the brewer's draftsman shall sign the certificate of accuracy on the plat. As amended, § 245.68 reads as follows: The plat shall bear a certificate of accuracy in the lower right-hand corner of each sheet, signed by the brewer, substantially as follows: PAR. 10. Section 245.71 is amended to provide a retention period for qualifying documents and to delete an internal management instruction. As amended, § 245.71 reads as follows: 245.71 APPROVED DOCUMENTS. On approval of the documents, the assistant regional commissioner shall forward one copy of the bond, notice, plat, and other documents to the brewer who shall file such approved documents on the premises, available for inspection by internal revenue officers. Such documents shall be retained so long as they are |