Subpart D-Exportation and Removals to Foreign-Trade Zones

§ 196.60 Exportation.

An exportation is a severance of goods from the mass of things belonging to the United States with the intention of uniting them to the mass of things belonging to some foreign country and shall include shipments to any possession of the United States. The export character of any shipment will be determined by the intention with which it is made. The shipment assumes an export character only when destined for use in a foreign country or in a possession of the United States. For the purpose of this part, shipments to the Commonwealth of Puerto Rico, to the territories of the Virgin Islands, American Samoa, and Guam, and to the Panama Canal Zone shall also be treated as exportations. (66A Stat. 908, 79 Stat. 164; 26 U.S.C. 7653, 5002)

[T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.60a Export status.

Stills and condensers of domestic manufacture deposited in a foreigntrade zone under this part shall be considered to be exported for the purpose of the internal revenue laws generally and the regulations in this part. Export status is not acquired until application on Zone Form D for admission of such stills or condensers into the zone has been approved by the district director of customs and he has certified on the Internal Revenue Service form as to the deposit of the apparatus in the zone.

(48 Stat. 999, 72 Stat. 1340; 19 U.S.C. 81c, 26 U.S.C. 5106)

[T.D. 6393, 24 FR 5298, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.61 Marking of stills or condensers.

Stills or condensers to be exported or deposited in a foreign-trade zone shall be identified as required by § 196.33. If the apparatus is to be shipped in a container, the required marks shall also be shown on such

container in a manner which will enable ready identification by customs officers.

[T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975] EXPORTATION WITHOUT PAYMENT OF TAX

§ 196.62 Exportation without payment of tax.

Stills and condensers for distilling, marked and branded as required by § 196.61, may be removed from the place of manufacture without payment of tax for exportation, or for deposit in a foreign-trade zone. The manufacturer shall keep records and submit reports concerning such stills as required by §§ 196.80 and 196.82. (72 Stat. 1340, 1348; 26 U.S.C. 5106, 5146) [T.D. 6393, 24 FR 5298, June 30, 1959. Redesignated at 40 FR 16835, Apr. 15, 1975]

EXPORTATION WITH BENEFIT OF
DRAWBACK

§ 196.63 Drawback of tax.

Drawback of the tax paid on stills and condensers which have not been used is allowable upon their exportation or deposit in a foreign-trade zone for exportation, destruction, or storage therein pending exportation. Where such stills and condensers are to be exported or deposited in a foreign-trade zone and drawback is desired, the exporter shall make application for allowance of drawback, and deliver such articles into customs custody as provided in this part. Where distilling apparatus deposited in a foreign-trade zone is to be destroyed, the exporter shall file application for such destruction on Zone Form E with the district director of customs in accordance with the provisions of Customs Regulations (19 CFR Chapter 1). After the apparatus has been inspected and destroyed, the customs officer shall modify and sign his certificate on Form 1610 indicating receipt and destruction of the apparatus under his supervision and indicate on the certificate the date of deposit, the date of destruction, and, in lieu of the port of clearance, the number and location of the zone.

(72 Stat. 1340; 26 U.S.C. 5106)

[T.D. 6393, 24 FR 5298, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb.15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975)

§ 196.64 Request for inspection; entry for exportation; drawback claim.

Before any still or condenser on which drawback is to be claimed is removed from the exporter's premises, he shall forward to the district director of internal revenue of his district Form 1610, in triplicate, with Parts 1 and 2 properly executed. Where the still or condenser is to be removed to a foreign-trade zone or where the exporter is not the manufacturer of the apparatus to be exported, the exporter shall appropriately modify Parts 1 and 2 of such form. Request for release of the apparatus and application for allowance of drawback, equal to the internal revenue tax paid on the apparatus shall be made in Part 1 of the form. Entry for exportation of the apparatus or deposit in a foreign-trade zone and claim for drawback of the internal revenue tax paid thereon shall be made by the exporter in Part 2 of the form. The stamps denoting payment of the tax shall be attached to the original of the claim.

[T.D. 6393, 24 FR 5299, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.65 Payment of tax; inspection by ATF officer; certificate.

Upon the receipt of claim and entry on Form 1610 and on the payment of the tax due, the district director of internal revenue shall direct an ATF officer to proceed to the exporter's premises and, if the stills or condensers are found to agree with those described in the form, and are properly marked or branded as required by this part, such officer shall execute the certificate in Part 4 of the form. The ATF officer shall determine that the stamp or stamps attached to the claims have been canceled in the manner prescribed in § 196.38. He shall then release the apparatus for delivery to the carrier or into customs custody, and mail or deliver two copies of

the Form 1610 (one the original with the special tax stamps attached) to the district director of customs at the port of export or to the customs officer in charge at the foreign-trade zone, as the case may be, and forward the remaining copy to the district director of internal revenue.

(72 Stat. 1340; 26 U.S.C. 5106)

[T.D. 6393, 24 FR 5299, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

DELIVERY OF SHIPMENT FOR EXPORT; BILL OF LADING

§ 196.66 Shipment from premises located at the port of exportation.

The exporter shall deliver the shipment directly for customs inspection and supervision of lading or to the customs officer in charge of the foreigntrade zone. If the apparatus is intended for immediate exportation, the drawback entry, Form 1610, shall be filed with the district director of customs at least six hours prior to the lading of the distilling apparatus in order to allow opportunity for customs inspection. The exporter shall file a copy of the bill of lading covering export or consignment to the foreigntrade zone, as the case may be, with the district director of internal revenue of the district from which the shipment is made, for attachment to the copy of Form 1610 retained by him. The bill of lading shall show the exporter as the shipper, the manufacturer's serial number of the articles and the number of articles contained in the shipment.

(72 Stat. 1340; 26 U.S.C. 5106)

[T.D. 6393, 24 FR 5299, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.67 Shipment from premises not located at the port of exportation.

The exporter shall deliver the shipment either directly for customs inspection and supervision of lading, to a common carrier for transportation to the port of export, or to the customs officer in charge of the foreign-trade zone. The exporter shall transmit a

copy of the bill of lading covering such transportation and a copy of the export bill of lading, or if consigned to a foreign-trade zone, a copy of the bill of lading covering shipment thereto, to the district director of internal revenue, for attachment to the copy of Form 1610 retained by him. In case of exportation through a border port to contiguous foreign territory, the bill of lading shall show the routing, particularly the name of the carrier that is to deliver the shipment for customs inspection at the border port, and shall cover transportation to the foreign destination: Provided, That where a through bill of lading is not obtainable, separate bills of lading covering the shipment to the border port and from the border port to the foreign destination shall be procured. The bill of lading shall also show that the shipment was sent in care of the district director of customs at the border port. One copy of the through bill of lading or of each of the separate bills of lading, as the case may be, shall be transmitted by the exporter or his agent immediately by letter to the district director of internal revenue, for attachment to the copy of Form 1610 retained by him.

(72 Stat. 1340; 26 U.S.C. 5106)

[T.D. 6393, 24 FR 5299, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.68 Inspection and lading.

The district director of customs to whom claim and entry on Form 1610 is transmitted by the ATF officer shall fill in on each copy of said form the order for inspection and lading or deposit in a foreign-trade zone. The customs officer shall examine the apparatus described in the entry and he shall, if he finds the articles to be otherwise than described, make a special report thereon. After having complied with the order of inspection and after the apparatus has been duly laden on board the conveyance of the export carrier or deposited in the foreigntrade zone, the officer shall complete and sign the certificate of inspection and lading or deposit in part 6 of Form 1610. If the apparatus is deposited in a

foreign-trade zone, the form shall be appropriately modified. If the customs officer discovers any evidence of fraud, he shall detain the apparatus and notify the district director of customs who shall inform the regional regulatory administrator of the region in which the port or foreign-trade zone is located.

(72 Stat. 1340; 26 U.S.C. 5106)

[T.D. 6393, 24 FR 5299, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.69 Certificate of exportation.

After inspection and lading and clearance for a foreign port of the vessel or car on which the articles described in the entry were laden or after deposit in the foreign-trade zone, the district director of customs shall execute the certificate of exportation, appropriately modified to show deposit in a foreign-trade zone, where applicable, on each copy of the claim and entry, Form 1610. He shall retain one copy of the form for his entry record and transmit the original to the district director of internal revenue for the district from which the apparatus was shipped.

(72 Stat. 1340; 26 U.S.C. 5106)

[T.D. 6393, 24 FR 5299, June 30, 1959, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

APPROVAL AND SUBMISSION OF CLAIMS

§ 196.70 Action by district director of internal revenue.

The district director of internal revenue will immediately examine the claim for drawback on Form 1610, received from the district director of customs (§ 196.69), and if satisfied that the claim is a valid one, he will endorse his approval thereon and forward it with the special tax stamps attached, to the regional regulatory administrator of the region in which the claimant is located.

(68A Stat. 618; 26 U.S.C. 5106)

[20 FR 6120, Aug. 23, 1955, as amended by T.D. 7005, 34 FR 2249, Feb. 15, 1969. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.80 Removal for domestic use.

Distilling apparatus which is to be used within the United States and the District of Columbia for purposes other than for distilling, as defined in § 196.5, is exempted from the procedure and requirements set forth in §§ 196.42 to 196.47. Manufacturers and vendors of distilling apparatus for purposes other than for distilling shall maintain at their premises a record showing all stills manufactured, received, and removed or otherwise disposed of. Such record shall show the name and address of the purchaser and the purpose for which each still is to be used. Such records will be kept available for a period of 2 years for inspection by ATF officers. At the close of each month, and not later than 10 days thereafter, the manufacturer or vendor shall submit a report to the regional regulatory administrator of the region in which his premises are located showing the number of stills on hand at the beginning of the month,

the number received, the number disposed of, the number on hand at the end of the month, and as to each such still removed, the name and address of the purchaser and the type, capacity, and kind. Each report shall be signed by the manufacturer or vendor or his authorized agent and immediately above the signature there shall appear the following statement, "I declare under the penalties of perjury that this report has been examined by me and to the best of my knowledge and belief is a true and correct report." Upon application, in duplicate, by the manufacturer or vendor, the regional regulatory administrator may waive the requirement for the submission of such report when he finds that such waiver will not jeopardize the revenue. Such waiver shall terminate upon notification by the regional regulatory administrator to the manufacturer or vendor.

(26 U.S.C. 7805 (68A Stat. 917), 27 US.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and Sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744))

[T.D. 7130, 36 FR 12853, July 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975, and amended by T.D. ATF-48, 43 FR 13532, Mar. 31, 1978]

§ 196.81 Removal for exportation.

Distilling apparatus intended for use for purposes other than for distilling, marked and branded as required by § 196.61, may be removed without payment of tax, for exportation or transfer to a foreign-trade zone by the manufacturer or dealer.

[20 FR 6120, Aug. 23, 1955, as amended by T.D. 6393, 24 FR 5299, June 30, 1959; T.D. 7130, 36 FR 12853, July 8, 1971. Redesignated at 40 FR 16835, Apr. 15, 1975]

§ 196.82 Bill of lading required.

When any distilling apparatus is removed for exportation or for deposit in a foreign-trade zone without payment of tax, the vendor must obtain a copy of the bill of lading covering exportation or consignment to a foreigntrade zone, as the case may be. Such bill of lading must be kept available for a period of not less than 2 years for inspection by ATF officers.